Key points
- Tokyo’s Nikkei index falls 1pc
- Shanghai, Taipei, Manila and Jakarta also fell
- Hong Kong, Sydney, Singapore and Wellington edged up
ISLAMABAD: Asian markets swung on Wednesday amid trade war worries after US President Donald Trump said he would not push back next week’s tariff deadline, with Tokyo taking a hit from threats to ramp up Japanese levies.
AFP reported that sentiment was also mixed after Trump’s signature budget bill scraped through the Senate, with optimism over the extension of deep tax cuts offset by warnings that it could add around $3 trillion to the country’s already ballooning national debt.
With a week to go before Trump’s 90-day pause on so-called reciprocal tariffs ends, hardly any governments have struck deals to avert the taxes, though White House officials have claimed several are in the pipeline.
And while the White House had set July 9 as the cut-off date for leaders to finalise pacts, investors largely expect that to be pushed back or countries given extra time.
“I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled,” he said Tuesday.
“Big, Beautiful Bill”
They could pay a tariff of “30 per cent, 35 per cent, or whatever the number is that we determine, because we also have a very big trade deficit with Japan”, he said.
The remarks, which come after several visits by Japanese officials to Washington, jolted hopes that deals can be cut with the Trump administration.
Tokyo’s Nikkei index fell around one per cent Wednesday, having fallen more than that the day before.
Seoul was also sharply lower as South Korean negotiators battled to reach a deal with the White House.
Elsewhere in Asia, Shanghai, Taipei, Manila and Jakarta also fell while Hong Kong, Sydney, Singapore and Wellington edged up, AFP reported.
Eyes are also on Washington after senators passed Trump’s “Big, Beautiful Bill” that he says will boost the economy by extending tax cuts and slashing spending on programmes such as Medicare.
Earlier, CNBC reported that Asia-Pacific markets traded mixed Tuesday as investors assessed the record gains on Wall Street and the global impact of Trump’s tariff policies as his 90-day tariff reprieve is set to expire next week.
