Asia stocks mixed, tracking drop in U.S. futures after mixed Wall Street session and trade policy uncertainty

Asia stock markets trade mixed on Thursday, tracking a drop in US futures, while traders continued to monitor developments in US-China trade talks. Traders reacted to Beijing’s decision to lift export curbs on rare earths and military-use technologies for 28 U.S. entities, effective Wednesday, allowing exporters to apply for licenses during a 90-day window. China also temporarily lifted trade and investment bans on 17 U.S. firms, calling the move a potential reset in bilateral ties. Geopolitical risks also eased, with India-Pakistan tensions stabilizing and rising optimism that Trump may lift sanctions on Syria during his Middle East visit. Gold declined to around $3,140 per ounce on Thursday, extending a 2% drop from the previous session and reaching a five-week low. Japan ( NKY:IND ) fell 0.94% to around 37,700 while the broader Topix Index dropped 0.7% to 2,745 on Thursday, with Japanese shares sliding for the second straight session. The Japanese yen appreciated toward 146 per dollar on Thursday, marking its third straight session of gains, as persistent global trade uncertainties pressured the dollar while lifting other currencies. Meanwhile, investors are closely monitoring developments in the US-Japan trade talks, with Tokyo aiming to finalize a deal by June. China ( SHCOMP ) fell 0.64% to below 3,390 while the Shenzhen Component dropped 0.8% to 10,270 on Thursday, paring gains from the previous session as persistent trade-related uncertainties weighed on sentiment. Trade negotiations between the two countries are expected to continue in the coming weeks in an effort to reach a broader deal. In a positive sign, China lifted its export ban on rare earths targeting US entities, signaling further de-escalation in trade tensions. Gains were capped by weak April credit data from China, where new yuan loans fell to a 20-year low of CNY 280 billion, reflecting early fallout from trade tensions. Hong Kong ( HSI ) fell 0.79% to 23,691 during Thursday’s morning session, marking a second straight day of gains. India ( SENSEX ) rose 0.13% to 80,962 in morning trade on Thursday, halting gains from the previous session, with most sectors trading in the red, led by tech, realty, and financials. Australia ( AS51 ) rose 0.20% to below 8,270 on Thursday, snapping a six-day winning streak, weighed down by losses in mining and energy stocks amid weaker commodity prices. The Australian dollar climbed to around $0.644 on Thursday, recouping some losses from the previous session, after stronger-than-expected jobs data bolstered a more hawkish outlook for monetary policy. Official figures showed the Australian economy added 89,000 net new jobs in April, lifting total employment to a record high of 14.64 million—well above the forecast of 20,000. The unemployment rate held steady at 4.1%, in line with expectations. Consumer inflation expectations in Australia stood at 4.1% in May 2025, barely changed from 4.2% in the previous month. In the U.S., on Wednesday, all three major indexes ended mixed as investors digested shifting trade policies and renewed momentum in the tech sector Looking ahead, investors are eyeing US retail sales and producer inflation data due Thursday for fresh insight into consumer demand and inflation trends. U.S. stock futures edged lower on Thursday, following a mixed session on Wall Street: Dow -0.44% ; S&P 500 -0.26% ; Nasdaq -0.16% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan’s producer prices rose 4% Y/Y in April, marks weakest pace since December Trump set to unveil trade deal with UK on Thursday – report China service growth hits 7-month low as trade disruptions weighs on new business orders Australia private sector expands at 51 in April, services sector expands for 15th straight month Australia inflation gauge eases slightly in April by 0.6%

Source: Seeking Alpha