Asia-Pacific markets traded mixed on Wednesday as investors reacted to the uncertain outcome of United States-China trade discussions, with the fate of a potential extension to the tariff pause still pending final approval from President Donald Trump.
According to U.S. negotiators, an agreement to delay further tariffs will not move forward unless signed off by President Trump.
U.S. Commerce Secretary Howard Lutnick also confirmed that Friday’s deadline for imposing sweeping tariffs on multiple trading partners, excluding China, would not be extended further.
As of 11:10 am AEST (1:10 am GMT), Australia’s S&P/ASX 200 was up 0.1%, Japan’s Nikkei 225 dipped 0.1%, and South Korea’s Kospi 200 rose 0.5%.
Economic data released during the session added to the cautious tone. Singapore’s central bank held its monetary policy steady but flagged a slowdown in economic momentum for the second half of 2025.
Investors also looked toward Australia’s quarterly inflation report from the Australian Bureau of Statistics (ABS). The consumer price index (CPI) rose 0.7% in the June 2025 quarter and 2.1% annually, marking the lowest annual inflation rate since March 2021, according to the Australian Bureau of Statistics.
In the United States, major equity benchmarks retreated from record highs on Tuesday as earnings results disappointed.
The Dow Jones Industrial Average fell 0.5%, the S&P 500 declined 0.3%, and the Nasdaq Composite lost 0.4%.
ANZ analysts remarked: "Incoming U.S. data affirm the economy is holding up well, while trade uncertainty appears to be easing. A relatively resilient labour market and a recovery in consumer confidence support the near-term consumption outlook.
"Ahead of the FOMC’s policy meeting, this macroeconomic backdrop supports a wait-and-see approach. More trade discussions are scheduled ahead of the 1 August deadline.
"It seems likely that most major trade partners will face tariffs in the 15-20% range. However, sectoral tariffs remain a possibility. Commerce Secretary Lutnick said that President Trump will announce pharma policy in the next two weeks."
In commodities, Brent crude surged 3.4% to US$71.68 per barrel, its highest close since 23 June, while spot gold rose 0.4% to US$3,326.67 per ounce.
Chinese equities advanced. The Shanghai Composite climbed 0.3% to 3,609.7 - its strongest close since 8 October 2024 - while the CSI 300 rose 0.4% to finish at 4,152.0.
Hong Kong’s Hang Seng Index edged 0.2% lower to 25,524.5, while India’s BSE Sensex gained 0.6% to close at 81,338.0.
In Europe, markets were mostly positive. The UK’s FTSE 100 added 0.6% to 9,136.3, Germany’s DAX climbed 1% to 24,217.4, though France’s CAC 40 slipped 0.7% to 7,857.4.
