Asia stock markets mostly advance on Tuesday, after US President Donald Trump announced new tariff rates on 14 countries, removing some uncertainty in the market. He also signed an executive order extending the reciprocal tariff deadline to August 1 from July 9, allowing more time for negotiations. On Monday, President Trump released letters announcing new 25% tariffs set for goods imported to the US from Japan, South Korea, Malaysia, Kazakhstan and Tunisia. The letters stated that the US may “perhaps” reconsider tariff levels, “depending on our relationship with your Country.” Countries affected include South Africa (30%), Indonesia (32%), Thailand (36%), Malaysia (25%), Myanmar (40%), Laos (40%), and Kazakhstan (25%). Bangladesh and Serbia will face a 35% tariff, effective next month. Gold dropped to around $3,330 per ounce on Tuesday amid hopes for potential trade deals that could reduce demand for the safe-haven metal. Japan ( NKY:IND ) rose 0.22% to surpass 39,700, while the broader Topix Index added 0.1% to 2,815 on Tuesday, recouping some losses from the previous session after US President Donald Trump announced a 25% tariff on Japanese goods, set to take effect on August 1. While lower than the previously threatened 35%, the tariff remains well above the baseline 10% levied on most countries, adding pressure on Tokyo to reach a trade deal with Washington. The Japanese yen weakened past 146 per dollar on Tuesday, hitting a two-week low. On the economic front, Japan’s current account surplus for May came in above expectations, offering a positive signal for external balances. Bank lending in Japan rose by 2.8% year-on-year in June 2025, up from a 2.4% increase in May and surpassing market expectations of 2.3%. China ( SHCOMP ) rose 0.58% to around 3,480 while the Shenzhen Component gained 0.8% to 10,520 on Tuesday, recouping losses from the previous session, and the offshore yuan stabilized to around 7.17 per dollar on Tuesday, supported by a retreat in the US dollar after President Trump announced an updated round of tariffs targeting fourteen countries that have yet to finalize trade deals with Washington. While China was not on the latest tariff list, Trump also warned of an additional 10% levy on countries aligning with the “Anti-American policies of BRICS,” as the bloc convened for a summit in Brazil. In a bid to further open financial markets, China is reportedly weighing a plan to increase the Southbound Bond Connect quota to CNY 1 trillion. Regulators are also discussing a new, dedicated CNY 500 billion annual allocation specifically for non-bank financial institutions, such as mutual funds and insurers, which are currently unable to participate. Markets now await June CPI, which is expected to remain soft, along with PPI and trade data. Hong Kong ( HSI ) rose 0.74% to 24,051 in Tuesday morning’s session, snapping a three-day losing streak. In local data, Hong Kong’s forex reserves rose for the second straight month in June, hitting the highest level in nearly 2-1/2 years. India ( SENSEX ) rose 0.06% Australia ( AS51 ) fell 0.19% to 8,567 on Tuesday, extending losses from the previous session. The Australian dollar rose to around $0.651 on Tuesday, rebounding from sharp losses in the previous session. Australian Prime Minister Anthony Albanese announced Tuesday that he will visit China starting this Saturday, with stops in Shanghai, Beijing, and Chengdu, as Beijing seeks to deepen cooperation on AI, green energy, and the digital economy. Australia’s NAB Business Confidence Index jumped to 5 in June 2025 from 2 in May, improving for the third straight month and marking the highest print since January. “The survey is encouraging that sluggish momentum in early 2025 will improve into the second half,” said NAB’s Gareth Spence. In Australia, investors now await the latest monetary policy decision due later today. In the U.S., on Monday, all three major indexes ended fell sharply as President Trump reignited trade tensions by unveiling a wave of new tariffs and extending the deadline for their implementation to August 1. Investors are now awaiting the release of the June FOMC meeting minutes, scheduled for Wednesday, for further insights into the Fed’s policy outlook. U.S. stock futures edged lower on Tuesday after President Donald Trump unveiled revised tariff rates on 14 countries: Dow -0.07% ; S&P 500 +0.04% ; Nasdaq +0.19% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Trump puts 25% tariff on Japan and South Korea, others (updated) U.S.-China trade agreement leads to lifted chip design software restrictions Australia's trade surplus narrows to five-year low in May, missing forecasts amid export dip Australia's manufacturing contraction deepens in May; retail sales miss estimates China's factory activity returns to expansion at 50.4, new orders surge amid better trade
