Asian Stocks Mixed as Trump Tariff Deadline Looms: South Korea Leads, Japan Slips

Market Overview: Geopolitics Overshadow Record U.S. Rally

Most Asian stock markets edged higher on Tuesday, taking cues from Wall Street’s record run. However, gains were tempered by looming trade tensions, with a July 9 tariff deadline set by U.S. President Donald Trump keeping investor sentiment in check.

While South Korea’s KOSPI jumped 1.6%, led by Samsung Electronics (KS:005930), Japan’s Nikkei 225 fell 1% following Trump’s threat to impose fresh tariffs on Tokyo.

Regional Highlights: Caution Ahead of July 9

South Korea Outperforms on Tech Momentum

• Samsung Electronics, a heavyweight on the KOSPI, rose nearly 2%, reflecting strong tech momentum.

• As one of the most actively traded stocks across Asia, Samsung’s surge pulled the broader South Korean market upward.

Japan Retreats on Trade Worries

• The Nikkei 225 dropped 1% after Trump criticized Japan for failing to open up to U.S. rice exports.

• The TOPIX index also slipped 0.8%, reflecting broader concern over potential tariff retaliation.

Other Asia-Pacific Markets

• China’s Shanghai Composite rose 0.2%

• CSI 300 gained 0.1%, after data showed China’s Caixin Manufacturing PMI expanded unexpectedly in June

• Australia’s ASX 200 added 0.2%

• Singapore’s STI rose 0.8%

• India’s Nifty 50 futures remained flat

Economic Data Supports Risk Appetite—For Now

Despite tariff concerns, regional sentiment was lifted by last week’s U.S.-China trade agreement and Canada’s decision to withdraw its digital services tax, reopening stalled talks with Washington.

A key factor was China’s Caixin Manufacturing PMI, which showed growth amid easing trade tensions. 

Trump’s Trade Leverage Strategy in Focus

While markets initially reacted positively to de-escalation between the U.S. and China, Trump’s tone with Japan has reversed that optimism:

• On Truth Social, he called Japan “spoiled” over their rice import stance

• Threatened fresh tariffs if negotiations stall

• Reaffirmed the July 9 deadline as a hard stop for interim trade deals

Meanwhile, U.S. Treasury Secretary Scott Bessent warned that “a flurry of deals” might come last minute—but none are guaranteed.

Market Outlook: What to Watch Ahead of July 9

• Will Japan make a late-stage trade concession to avoid tariffs?

• Will Samsung and other high-beta tech stocks continue leading regional rallies?

• How will macro data from China, India, and ASEAN shape rate policy in the next quarter?

Investors should monitor:

• PMI and inflation data across emerging Asia

• Tariff-sensitive equity baskets in Japan and South Korea

• Volatility spikes in currency and commodity markets

Conclusion

Asian equities are showing early signs of resilience, but political risk remains elevated as Trump’s tariff deadline nears.