Asian stocks rise as Trump’s deadline for higher China tariffs nears
Asian markets opened the week on a positive note on Monday, just a day before the deadline set by U.S. President Donald Trump to raise tariffs on Chinese goods.
U.S. futures also showed slight gains, while oil prices continued their slide from last week. Traders are watching closely for any progress in the Ukraine conflict ahead of Trump’s planned meeting with Russian President Vladimir Putin on Friday in Alaska.
Regional Markets Show Mixed Strength
Hong Kong’s Hang Seng Index inched up 0.1% to 24,891.65, and Shanghai’s Composite index rose 0.4% to 3,647.80. The current 90-day pause on steep tariffs between the U.S. and China, agreed upon in May, is set to expire Tuesday. Talks last month in Stockholm ended without clarity on whether the truce would be extended.
Taiwan’s Taiex rose 0.5%, boosted by a 0.4% jump in TSMC shares. The chipmaker is often seen as a reflection of major U.S. tech giants like Nvidia and AMD. Reports suggest U.S. chip companies may agree to give 15% of sales revenue from AI-related chip sales to China to the U.S. government.
Australia’s S&P/ASX 200 gained 0.3% to 8,834.70, while South Korea’s Kospi barely moved, holding at 3,209.22. Markets in Japan and Thailand were closed for public holidays.
Wall Street Closes Strong Last Week
On Friday, the S&P 500 climbed 0.8% to 6,389.45, close to its record high. The Dow Jones rose 0.5% to 44,175.61, and the Nasdaq jumped 1% to 21,450.02. Tech stocks led the rally—Nvidia added 1.1%, while Apple surged 4.2%.
Gilead Sciences soared 8.3% after its earnings beat expectations and the company raised its yearly forecast. Expedia rose 4.1% on better-than-expected results. These gains are part of a mostly strong second-quarter earnings season, though several companies warned that tariffs could hurt profits.
Not all news was good—Paramount Skydance shares tumbled 10.5% just one day after its $8 billion merger closed. Warner Bros. Discovery also fell, losing 8%.
Eyes on Inflation and Fed Policy
This week, investors await fresh U.S. inflation data and retail sales figures. Trump’s trade war and its potential hit to the U.S. economy remain in focus after the country raised import taxes on dozens of nations last Thursday.
The Federal Reserve has kept interest rates unchanged for now, though some policymakers have pushed for cuts. Markets expect a quarter-point cut at the September meeting, as signs of slowing economic growth mount.
Lower rates could help boost spending and investments but may risk reigniting inflation—something the Fed has been trying to cool to its 2% target.
Commodities and Currency Moves
U.S. crude oil slipped 57 cents to $63.31 per barrel, while Brent crude fell 51 cents to $66.08. The dollar edged down to 147.56 yen, and the euro gained slightly to $1.1667.
