Asia stock markets mostly advance on Friday, investors remained on edge after President Donald Trump announced plans to begin sending letters outlining new trade tariffs or potential deadline extensions as early as Friday, fueling uncertainty in global markets. President Donald Trump said Thursday he plans to send letters to countries starting Friday, July 4, informing them of the tariffs they must pay to sell goods in the U.S., bypassing the process of negotiating individual trade deals. “My inclination is to send a letter out saying what tariff they’re going to be paying,” he said, calling it “much easier.” Gold edged up to around $3,330 per ounce on Friday, heading for a weekly advance. Japan ( NKY:IND ) rose 0.10% to around 39,810, while the broader Topix Index added 0.2% to 2,835 on Friday. The Japanese yen traded near 145 per dollar on Friday after falling nearly 1% in the previous session, weighed down by trade-related uncertainties despite Tokyo’s efforts to secure a deal with Washington ahead of next week’s deadline. Household spending in Japan jumped 4.7% y/y in May 2025, reversing a 0.1% fall in April and far exceeding market consensus of a 1.2% rise. China ( SHCOMP ) rose 0.88% to around 3,464, while the Shenzhen Component slipped 0.5% to 10,482 in mixed trade on Friday, with mainland stocks struggling for clear direction. Caution also built ahead of key Chinese economic data next week, including June CPI, PPI, as deflation risks persist. China to offer cash handouts for new babies, per Bloomberg. Families would get CNY 3,600 annually per child (born Jan 1, 2025, onwards) until age three, a bid to curb population decline and economic risks. Hong Kong ( HSI ) fell 0.16% to 23,840 in Friday morning trade, extending losses from the previous session as declines swept across all sectors. Investor sentiment remained fragile ahead of the July 9 expiration of the 90-day trade truce. The S&P Global Hong Kong SAR PMI dropped to 47.8 in June 2025 from 49.0 in May, marking the lowest reading since March 2022. India ( SENSEX ) rose 0.01% Australia ( AS51 ) rose 0.02% to 8,612 on Friday, following a muted performance in the previous session. The Australian dollar held around $0.657 on Friday, hovering near eight-month highs. Household spending in Australia climbed 0.9% mom in May 2025, rebounding from a marginally revised flat reading in April and marking the fastest pace of growth since October 2024. In the U.S., on Thursday, all three major indexes ended higher as a stronger-than-expected June jobs report eased concerns over an economic slowdown and reduced pressure on the Federal Reserve to cut interest rates. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: 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 Japan's manufacturing PMI revised downward to 50.1 in June; Nikkei index drops as Trump threatens new tariffs
