Asian Markets Mixed as Trump’s Tariff Deadline Looms; South Korea Rallies, Japan Slips

Asian stock markets traded mostly higher on Tuesday, buoyed by Wall Street’s record-breaking performance, with South Korea’s KOSPI surging 1.6% to lead regional gains. Investor sentiment was lifted by optimism around trade negotiations ahead of U.S. President Donald Trump’s July 9 tariff deadline, which could see current 10% tariffs rise further without new agreements.

Samsung Electronics (KS:005930) jumped nearly 2%, driving South Korea’s rally. The positive momentum followed the S&P 500 and Nasdaq hitting all-time closing highs on Monday, while U.S. futures edged higher during Asian trading hours.

China’s Shanghai Composite rose 0.2% and the CSI 300 index added 0.1% after Caixin Manufacturing PMI data showed an unexpected uptick in June, signaling improved trade conditions. Australia’s ASX 200 added 0.2%, and Singapore’s Straits Times Index climbed 0.8%. Indian Nifty 50 futures remained flat. Hong Kong markets were closed due to a public holiday.

Investors remained cautious as Trump’s tariff ultimatum nears. Although the U.S. finalized a trade deal with China last week and Canada withdrew its proposed digital services tax to restart talks, U.S. Treasury Secretary Scott Bessent warned of potential tariff hikes despite active negotiations, urging countries to secure deals swiftly.

Japan’s Nikkei 225 fell 1%, retreating from near a one-year high, while the TOPIX declined 0.8%. The pullback came after Trump criticized ongoing U.S.-Japan trade talks, accusing Tokyo of refusing to import American rice despite domestic shortages. Trump labeled Japan “spoiled” in a Truth Social post and hinted at upcoming tariff action, adding tension to already strained bilateral talks.

With Trump’s July 9 deadline fast approaching, markets are bracing for a flurry of last-minute trade developments that could significantly impact regional equities.