Asia-Pacific markets started the week with mixed momentum as investors reacted to the latest developments in United States trade policy and economic data, including a weaker-than-expected U.S. jobs report and new tariff rates from President Donald Trump.
The uncertain backdrop pushed U.S. markets sharply lower on Friday and has spurred expectations that the Federal Reserve may cut interest rates as soon as next month.
By 11:25 am AEST (1:25 am GMT), Australia’s S&P/ASX 200 had slipped 0.2%, while Japan’s Nikkei 225 recorded a sharp drop of 1.9%. In contrast, South Korea’s Kospi 200 advanced 1% in early trade.
Friday’s sell-off on Wall Street was largely driven by weaker-than-expected nonfarm payrolls, which showed just 73,000 jobs were created in July, well below forecasts of 110,000.
The Dow Jones Industrial Average fell 1.2%, while the S&P 500 dropped 1.6% and the Nasdaq Composite declined 2.2%.
ANZ analysts commented on the new tariff structure: "On Friday, President Trump unveiled modification of the reciprocal tariffs ranging from 10-41%, maintaining the baseline tariff rate of 10%. The new tariffs are set to take effect from 7 August. China and Mexico are the two largest partners for whom there is more time before a rate is finalised.
"A 40% transhipment rate has also been announced, although details on rules of origin are yet to be announced."
In commodity markets, Brent crude tumbled 2.8% to US$69.67 per barrel following OPEC+’s production update. Meanwhile, spot gold gained 2.2%, climbing to $3,362.90 per ounce as investors sought safety.
Chinese markets declined, with the Shanghai Composite down 0.4% to 3,560.0 and the CSI 300 falling 0.5% to 4,054.9.
Hong Kong’s Hang Seng Index shed 0.2% to end at 24,467.7. India’s BSE Sensex retreated 0.7% to 80,599.9.
European markets mirrored the global pullback. London’s FTSE 100 fell 0.7% to 9,068.6, Germany’s DAX dropped 2.7% to 23,426.0, and France’s CAC 40 shed 2.9% to close at 7,546.2.
