Asia stocks mixed amid tariff uncertainty; Australia falls on dismal trade data

Investing.com-- Asian stock markets struggled for direction on Thursday as investors awaited progress on U.S. trade deals ahead of the July 9 deadline, while they assessed China’s services data and Australia’s trade balance figures.

Markets across the globe turned cautious ahead of the U.S. jobs report, due later in the day, which could provide insights on the Federal Reserve’s interest rate outlook.

Major U.S. stock indexes rose on Wednesday, with the S&P 500 and Nasdaq bouncing back to respective record highs. Wall Street futures were largely unchanged in Asian trading hours on Thursday.

Asia stocks mixed in choppy trade as tariff deadline nears

President Donald Trump said on Wednesday that the U.S. has reached a trade agreement with Vietnam, notching a third deal ahead of the July 9 deadline.

Trump had said he won’t extend the deadline, signaling that if no deal is reached by then, affected nations will receive formal letters outlining the tariff rates they will face.

However, earlier this week, Trump cast doubt on a Japan deal and threatened 30–35% tariffs on imports.

With less than a week until the deadline, the U.S. has secured just three trade deals— with the UK, China, and Vietnam. 

Most regional markets were subdued, with investors wary of Trump’s shifting positions ahead of the looming deadline.

Japan’s Nikkei 225 edged 0.2% lower on Thursday, after steep losses in the previous two sessions. The broader TOPIX index fell 0.2%.

Hong Kong’s Hang Seng index led losses with a 1.2% drop.

In contrast, South Korea’s KOSPI rose 0.6%, while the Philippines’ PSEi Composite jumped 1%.

Elsewhere, Singapore’s Straits Times Index was largely muted, while futures tied to India’s Nifty 50 edged up 0.1%.

Australia trade surplus sinks, China services PMI hits 9-mth low

Data on Thursday showed that Australia’s trade surplus narrowed sharply above expectations in May, reaching its lowest since November 2019.

Weak global demand weighed on exports while imports rebounded from the previous month’s decline.

Australia’s S&P/ASX 200 index fell 0.6%.

In China, data showed that the country’s services sector grew less than expected in June, expanding at the slowest pace in nine months.

China’s Shanghai Composite index fell 0.1%, while the Shanghai Shenzhen CSI 300 gained 0.2%.