MANILA, Philippines (AP) - On Friday, Asian shares exhibited a mixed performance as U.S. stocks continued to scale new heights, fueled by investor optimism and a stronger-than-expected U.S. job market. However, the atmosphere in Asia remained cautious, especially with looming tariff deadlines set by President Donald Trump. His upcoming tariff impositions are scheduled for July 9, which has heightened market anxiety across the region.
In Japan, the Nikkei 225 index experienced a decline of 0.6%, settling at 39,762.20 after initially showing gains earlier in the trading session. South Korea's KOSPI index also faced setbacks, dropping 1.2% to 3,078.31. Hong Kong's Hang Seng index lost 0.6%, closing at 23,914.44, though the Shanghai Composite managed to incrementally rise by 0.4%, finishing at 3,475.24. Conversely, Australia’s S&P/ASX 200 saw a minor increase of 0.1%, ending the day at 8,609.50, while India’s Sensex index recorded a slight uptick of 0.1% to 83,288.73.
Market analyst Stephen Innes, managing partner at SPI Asset Management, noted that Asian markets seemed to enter Friday's trading session with trepidation. He likened this cautious approach to "someone entering a dark alley with one eye over their shoulder." Innes highlighted the unease surrounding Trump's potential tariff announcements, which could significantly impact global market dynamics. Despite the positive momentum in U.S. equities, the prevailing sentiment in Asia was one of anxious anticipation due to the tariff uncertainty.
The previous day, the U.S. stock market reacted positively to a report reflecting a stronger-than-expected job market. The S&P 500 climbed 0.8%, achieving an all-time high for the fourth time in five days. The Dow Jones Industrial Average saw an increase of 344 points, also up by 0.8%, while the Nasdaq composite surged by 1%. These developments in the U.S. market solidified the contrast with the more restrained momentum in Asia.
Currently, many of Trump's proposed steep import taxes are in a state of suspension but are set to be enacted unless agreements are reached with other nations to facilitate lower tariffs. Market participants are closely monitoring these negotiations, as any shifts could have substantial implications for international trade and economic conditions.
In other market communications on Friday, U.S. benchmark crude oil prices showed a decline, with prices falling by 19 cents to $68.81 per barrel. Meanwhile, Brent crude, the international standard, decreased by 30 cents, settling at $68.50 per barrel. The U.S. dollar also faced a dip against the Japanese yen, falling to 144.48 yen from 144.92 yen. In contrast, the euro experienced a slight increase, trading at $1.1771, up from $1.1761.
The day’s trading results reflect a broader narrative in Asian markets, balancing the immediate uplift from U.S. financial markets against underlying global trade concerns precipitated by tariff talks. Investors remain vigilant, as tensions surrounding trade agreements could dramatically affect economic stability in the coming weeks.
