Asia-Pacific markets traded in a mixed fashion on Thursday as investors weighed weak Japanese trade data, renewed tariff threats from United States President Donald Trump, and his denial of plans to dismiss Federal Reserve Chairman Jerome Powell.
Trump denied the prospect of firing Powell on Wednesday, walking back comments made to Republican lawmakers just hours earlier in which he reportedly said he was likely to remove the Fed chair.
He also reiterated during the same meeting that a 25% tariff would be applied to Japanese imports, casting doubt over the prospects of a broader U.S.-Japan trade deal.
By 11:30 am AEST (1:30 am GMT), Australia’s S&P/ASX 200 was up 0.6%, challenging Tuesday’s record highs, while Japan’s Nikkei 225 slipped 0.2%. South Korea’s Kospi 200 dropped 0.5%.
Among individual companies, Seven & i fell more than 9% on Thursday after Canada’s Alimentation Couche-Tard withdrew its $47 billion takeover bid, citing a “persistent lack of good faith engagement”.
Sentiment in Japan was weighed by fresh trade figures showing exports fell for a second consecutive month in June.
Exports declined 0.5% year-on-year, following a 1.7% contraction in May and confounding economists' expectations of a 0.5% rise, while imports lifted 0.2% versus expectations of a 1.6% decline.
The drop reflects ongoing weakness in external demand, particularly amid unresolved trade tensions. Exports to China fell 4.7%, while shipments to the U.S. plunged 11.4%, deepening from the 11% decline seen in the previous month.
In Australia, labour force figures from the Australian Bureau of Statistics (ABS) showed employment rose by 2,000 people in June, following a fall of 1,000 in May and well below expectations of a 20,000 gain, with the unemployment rate rising to 4.3%.
In the U.S. overnight, equities advanced following Trump’s clarification on Powell. The Dow Jones Industrial Average rose 0.5%, while the S&P 500 and Nasdaq Composite added 0.3% each, with the tech-heavy Nasdaq marking a new record close.
Commodities were mixed. Brent crude edged 0.3% lower to US$68.52 per barrel, while spot gold gained 0.7% to US$3,347.60 an ounce.
Chinese markets finished mixed on mixed. The Shanghai Composite was flat at 3,489.1, while the CSI 300 dipped 0.3% to 4,007.2. Hong Kong’s Hang Seng Index slipped 0.3% to 24,517.8.
India’s BSE Sensex managed a slight gain, rising 0.1% to 82,634.5.
European markets closed softer. London’s FTSE 100 fell 0.1% to 8,926.6, Frankfurt’s DAX dropped 0.2% to 24,009.4, and Paris’ CAC 40 declined 0.6% to 7,722.1.
