Asian Stocks Weaken, What to Expect from Trump?
Asian stock markets moved cautiously at the start of the week, as investors await certainty from US trade talks as the July 9 tariff deadline approaches. Indexes in Japan, South Korea and Australia posted small declines on concerns that President Donald Trump will impose new tariffs of up to 20% if no deal is reached. Meanwhile, oil prices fell 1.1% to $67.57 a barrel after OPEC+ announced a more aggressive production increase than expected.
Trade tensions continue to loom over the market, with negotiations still ongoing between the US and several major partners such as Japan and Europe. US Commerce Secretary Howard Lutnick said that country-by-country tariffs would take effect on August 1, although some countries may be given additional time to negotiate. Investors and analysts expect tariffs above 20% could surprise the broader market.
Oil prices are also in the spotlight after OPEC+ decided to open production earlier. This move could lead to a surplus of crude oil later in the year, especially if global demand declines due to trade tensions. Analysts at JPMorgan and Goldman Sachs predict oil prices could fall to near $60 a barrel by the fourth quarter of 2025.
Amid global tensions, China added to the tensions by announcing new funding for medical equipment from European companies. The retaliatory move comes as Beijing seeks to mend fences with the U.S., adding another layer of complexity to global trade relations. Market participants are now watching, watching to see how trade policy and geopolitics will shape future moves.
Source: (ayu-newsmaker)
