Asia stocks fall as Trump’s new tariffs take effect and weak china data; U.S. futures slip ahead of key jobs report

Asia shares in red on Friday following U.S. President Trump’s executive order on Thursday imposing new tariff rates ranging from 10% to 41%, effective August 1, along with a 40% tariff on transshipped goods, further fueling market caution. Disappointing economic data from China, also weighed on sentiment after factory activity in the mainland unexpectedly contracted in July. U.S. President Donald Trump has imposed a 19% tariff on exports from Malaysia to the U.S., lower than the 25% rate he initially threatened in July. Gold prices were muted around $3,290 per ounce on Friday and were on track for its worst weekly performance since late June, pressured by a stronger US dollar following President Trump’s introduction of higher tariffs on multiple countries. Japan ( NKY:IND ) fell 0.67% to below 40,900 on Friday, giving back gains from the previous session as renewed trade tensions weighed on sentiment. The Japanese yen hovered around 150.7 per dollar on Friday, lingering at a four-month low, as the dollar held firm following President Donald Trump’s latest tariff actions. Japan’s manufacturing sector contracted in July , with the S&P Global PMI falling to 48.9, a slight upward revision from the initial estimate but still below June’s 50.1. Japan’s unemployment rate held steady at 2.5% in June 2025 for the fourth consecutive month, aligning with market estimates. China ( SHCOMP ) fell 0.56% struggled for clear direction on Friday after a surprise contraction in manufacturing activity dampened sentiment, and the offshore yuan weakened past 7.21 per dollar on Friday, hitting its lowest level in nearly two months and heading for a sharp weekly decline. The Caixin China General Manufacturing PMI dropped unexpectedly to 49.5 in July 2025, falling from 50.4 in June and missing forecasts of 50.2, marking the second time in three months that factory activity has contracted. Meanwhile, the US and China concluded a third round of trade talks this week. Treasury Secretary Scott Bessent stated that the negotiations have “the makings of a trade deal,” with both nations facing an August 12 deadline to extend the current pause on tariffs. Hong Kong ( HSI ) fell 0.70% to 24,748 on the first trading day of August, falling for the fourth session while lingering at a two-week low. India ( SENSEX ) rose 0.01% to 81,080 in early trade on Friday, extending losses from the previous session. The HSBC India Manufacturing PMI was revised slightly lower to 59.1 in July 2025 from a preliminary estimate of 59.2, although it remained above June’s reading of 58.4. Australia ( AS51 ) fell 0.91% to around 8,660 on Friday, extending losses from the prior session, and heading for a second weekly decline, as US tariff uncertainty intensified after President Trump revised “reciprocal” duties on several countries, raising rates to 10–41%. The Australian dollar stabilized around $0.643 on Friday, halting a six-day losing streak as Australia avoided the latest US tariff hikes, with most imports remaining subject to the 10% rate. Australia’s final demand Producer Price Index increased by 0.7% quarter-on-quarter in Q2 2025, missing market estimates of 0.9% which was also the growth figure in the previous quarter. Australia’s manufacturing sector saw a modest expansion in July , with the S&P Global Manufacturing PMI easing slightly to 51.3 from 51.6 in June. Australia Trade Minister Don Farrell said on Friday the White House had confirmed that no country had reciprocal tariffs lower than Australia, suggesting that President Donald Trump had left the 10% baseline tariffs on Australian goods unchanged. In the U.S., on Thursday, all three major indexes ended in red as gains in Microsoft and Meta failed to lift the broader market amid renewed trade uncertainties and economic concerns. U.S. stock futures edged lower on Friday as investors awaited the closely watched July jobs report: Dow -0.15% ; S&P 500 -0.12% ; Nasdaq -0.17% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia’s Q2 producer price index rises 0.7%, following soft consumer inflation report China’s manufacturing sector contracts unexpectedly in July to 49.5 Japan’s manufacturing sector shrinks in July to 48.9, unemployment holds steady Australia’s factory growth eases to 51.3 in July, despite stronger production Gold rush in China: Households are piling into the safe-haven asset, Apollo says

Source: Seeking Alpha