(Sharecast News) - Asia-Pacific equity markets ended Thursday on a mixed note as investors weighed US president Donald Trump's declaration that a trade deal with China was "done", alongside comments that Chinese imports would face tariffs of 55%.
Commerce secretary Howard Lutnick confirmed those tariffs would remain in place.
"US futures and the dollar declined after president Donald Trump announced plans to establish unilateral tariff rates within two weeks, reigniting trade tensions," said TickMill market strategy partner Patrick Munnelly.
"Safe-haven assets such as Treasuries and gold saw gains, reflecting investor caution.
"Contracts tied to the S&P 500 and Nasdaq 100 fell 0.3% as Trump revealed intentions to notify trading partners about new tariffs."
Munnelly noted that European stock futures dropped following commerce secretary Lutnick's remarks that the EU might be among the last to finalise trade agreements with the US.
"The tariff announcement came a day after constructive talks between Chinese and US officials aimed at easing trade disputes.
"As the US continues discussions with nations like India and Japan to lower tariffs, some investors view Trump's comments as a strategic move to heighten pressure during negotiations.
"However, uncertainty lingers over whether Trump will follow through, as his self-imposed two-week timelines often result in delays or inaction."
Markets mixed as investors look for US tariff clarity
In Japan, the Nikkei 225 declined 0.65% to close at 38,173.09, weighed down by losses in tech and services stocks.
Sumco Corporation dropped 3.93%, Recruit Holdings slid 3.56%, and M3 shed 3.13%.
The broader Topix index also slipped, falling 0.21% to 2,782.97.
Mainland Chinese markets were relatively flat.
The Shanghai Composite edged up just 0.01% to 3,402.66, while the Shenzhen Component dipped 0.11% to 10,234.34.
Gains in smaller-cap stocks stood out, with Shanghai Huili Building Materials, Guangdong Dcenti Auto-Parts, and Jiangsu Xinri E-Vehicle all surging over 10%.
Hong Kong's Hang Seng Index fell 1.36% to 24,035.38 amid steep losses in consumer and technology names.
Budweiser Brewing tumbled 8.39%, Kuaishou Technology declined 5.87%, and electric vehicle maker BYD dropped 4.55%.
In South Korea, the Kospi 100 gained 0.15% to end at 2,916.49, supported by strong performances in industrial and infrastructure stocks.
Hanjinkal soared 10.4%, Posco ICT rose 7.98%, and Doosan Heavy advanced 6.85%.
Australia's S&P/ASX 200 slipped 0.31% to 8,565.10, dragged lower by weakness in the mining sector.
Mineral Resources lost 7.82%, Champion Iron fell 6.24%, and Pilbara Minerals dropped 5.96%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 bucked the broader trend, climbing 0.34% to 12,649.10.
Gains were led by consumer and media stocks, with KMD Brands up 4.92%, Restaurant Brands New Zealand up 3.87%, and Sky Network Television rising 3.68%.
In currency markets, the dollar was last down 0.53% on the yen, trading at JPY 143.79, while it rose 0.23% against the Aussie to AUD 1.5417, and slipped 0.02% on the Kiwi, changing hands at NZD 1.6580.
Oil prices declined, with Brent crude futures last down 1.12% on ICE to $68.99 per barrel, and the NYMEX quote for West Texas Intermediate down 1.04% to $67.44.
Business sentiment deteriorates among Japanese manufacturers
In economic news, business sentiment among Japan's major manufacturers deteriorated in the second quarter, underlining persistent economic uncertainty and casting doubt over prospects for near-term interest rate hikes by the Bank of Japan.
A Ministry of Finance survey released on Thursday showed that confidence among large manufacturers dropped to -4.8 in the April-to-June period, down from -2.4 in the previous quarter and the weakest reading since early 2024.
Broader business sentiment across all major industries also declined, falling into negative territory at -1.9 for the first time in over a year.
The downbeat mood, driven in part by growing concerns over global trade tensions and weak domestic demand, complicated the central bank's path toward policy normalisation.
While core inflation rose to 3.5% in April - its highest level since January 2023 - analysts argue the increase is largely supply-driven, with higher rice prices playing a key role.
Moody's Analytics said in a note on Thursday that the Bank of Japan was unlikely to make any policy changes at its meeting next week, citing subdued economic momentum and unresolved trade negotiations with the United States.
Reporting by Josh White for Sharecast.com.
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