Asia-Pacific markets were mixed on Monday, as investors reacted to China’s latest policy decision on benchmark interest rates and continued to monitor trade developments ahead of the United States' 1 August tariff deadline.
At 11:05 am AEST (1:05 am GMT), Australia’s S&P/ASX 200 was down 0.8%, South Korea’s Kospi 200 advanced 0.7%, while Japan’s Nikkei 225 remained closed for the “Marine Day” public holiday.
Trade policy remained in focus after the White House reiterated its firm stance on tariffs. U.S. Commerce Secretary Howard Lutnick on Sunday described 1 August as a “hard deadline” for countries to begin paying tariffs, while also acknowledging that “nothing stops countries from talking to us after August 1”.
Meanwhile, the People’s Bank of China kept its loan prime rates unchanged, holding the one-year LPR at 3.0% and the five-year at 3.5%. The move signals that Beijing is still weighing the impact of recent stimulus efforts, as the economy continues to struggle with sluggish consumer sentiment and slowing growth.
Earlier in the day, New Zealand released quarterly inflation data showing a rise in the consumer price index by 0.5% in the June quarter, lifting the annual inflation rate to 2.7% from 2.5%.
The increase, driven by higher housing, energy, and food costs, marks a 12-month high but remains within the Reserve Bank of New Zealand’s target band, keeping the door open for further rate cuts.
In the U.S. on Friday, major indices closed mixed. The Dow Jones Industrial Average slipped 0.3%, the S&P 500 ended flat, and the Nasdaq Composite edged up 0.1%, reflecting investor caution ahead of key earnings and economic data.
In commodities, Brent crude declined 0.4% to US$69.28 per barrel amid global demand concerns. Spot gold climbed 0.3% to US$3,350.95 per ounce as investors sought safe havens in light of tariff uncertainty
Chinese equities posted solid gains. The Shanghai Composite rose 0.5% to a fresh nine-month high of 3,534.5, while the CSI 300 added 0.6% to 4,058.5.
Hong Kong’s Hang Seng Index surged 1.3% to a record high of 24,825.7. India’s BSE Sensex moved in the opposite direction, falling 0.6% to a multi-week low of 81,757.7.
European markets also ended mixed. London’s FTSE 100 rose 0.2% to 8,992.1, Germany’s DAX fell 0.3% to 24,289.5, and France’s CAC 40 was flat at 7,822.7, as investors in the region also weighed ongoing trade tensions and interest rate outlooks.
