Asian stocks mostly held steady on Monday as investors reacted to new trade tariffs announced by U.S. President Donald Trump, while Chinese markets gained on strong June trade data. Market sentiment was also influenced by rising global trade frictions after US President Donald Trump imposed a 30% tariff on imports from the European Union and Mexico, effective August 1. In response, EU and Mexican officials expressed willingness to negotiate, and the EU began talks with other affected partners. Gold prices hovered around $3,350 per ounce on Monday, near a three-week-high. Japan ( NKY:IND ) rose 0.01% to below 39,500 while the broader Topix Index lost 0.2% to 2,817 on Monday, with the former hitting over two-week lows as renewed trade tensions weighed on sentiment. The Japanese yen appreciated toward 147 per dollar on Monday, recouping some losses from last week, as investors responded to renewed global trade concerns. Japan’s industrial production fell 0.1% month-over-month in May 2025 , defying flash estimates of a 0.5% increase and following a 1.1% decline in April, marking the second consecutive monthly drop. On the economic front, Japan’s core machinery orders declined 0.6% month-over-month to ¥913.5 billion in May. China ( SHCOMP ) rose 0.46% to above 3,525 while the Shenzhen Component fell 0.2% to 10,670 on Monday, with mainland stocks showing mixed performance as investors weighed robust trade figures against renewed geopolitical tensions, and the offshore yuan traded around 7.17 per dollar on Monday. China's trade surplus rose to $114.77 billion in June 2025 , with exports up 5.8% to $325.2 billion and imports increasing 1.1% to $210.4 billion. Separately, news that China and ASEAN plan to submit their upgraded free trade agreement for approval in October added support. Investors now turn to China’s Q2 GDP data due Tuesday, with growth expected to slow to 5.2% from 5.4% in Q1. Hong Kong ( HSI ) rose 0.77% to 24,190 in early Monday trade, marking gains for the third session after Goldman Sachs upgraded equities in the city to market weight, citing stronger earnings growth amid improving capital markets and a pickup in property activity. India ( SENSEX ) fell 0.33% to 82,229 in morning trade on Monday, lingering at its lowest level in two weeks and marking its fourth consecutive session of decline. Australia ( AS51 ) rose 0.01% edged lower by 0.1% to 8,572 on Monday, as investors turned cautious after fresh tariff threats from US President Donald Trump reignited fears of a potential global trade war. The Australian dollar weakened to around $0.656 on Monday, reversing gains from the previous week. In the U.S., on Thursday, all three major indexes ended lower after President Trump announced a 35% tariff on Canadian imports and warned of broader global tariff hikes U.S. stock futures dropped sharply on Monday after President Trump threatened to impose a 30% tariff on imports from the EU and Mexico starting August 1. : Dow -0.40% ; S&P 500 -0.44% ; Nasdaq -0.40% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's trade jumps: Exports beat, imports miss on domestic weakness Japan's May industrial output revised down to 0.1% fall Japan PPI growth hits 10-month low to 2.9% y/y in June China CPI sees slight rise up 0.1%, PPI drops most in two years amid weak demand and tariff risks Trump puts 25% tariff on Japan and South Korea, others (updated)
