Asia markets trade mixed amid BoK rate hold and new U.S. tariffs on Brazil; U.S. futures ease post-tech rally

Asia stock markets trade mixed on Thursday, following positive lead from Wall Street overnight, where tech stocks rallied, lifted sentiment. In the region, the Bank of Korea kept its base rate unchanged at 2.50% during its July 2025 meeting, following a 25 bps cut in May, as widely expected. On the trade front, Trump imposed a 50% tariff on Brazilian imports, citing unfair trade practices, and issued tariff notices to other countries, imposing duties of 25% to 30%. US President Donald Trump announced on Wednesday a new 50% tariff on copper, set to take effect on August 1. Markets now await potential trade agreements with India and the European Union. Gold rose to around $3,320 per ounce on Thursday, extending gains from the previous session. Copper futures climbed to around $5.60 per pound on Thursday, hovering near all-time highs, after US President Donald Trump confirmed that a 50% tariff on copper imports will take effect on August 1. Bitcoin ( BTC-USD ) rallied to around $112,000 in mid-July, hitting a new all-time high amid a broad stock market rally. Japan ( NKY:IND ) fell 0.61% to below 39,700 while the broader Topix Index dropped 0.6% to 2,810 on Thursday, erasing gains from the previous session. The Japanese yen appreciated to around 146 per dollar on Thursday, extending gains from the previous session. Producer prices in Japan rose 2.9% y/y in June 2025 , slowing from a marginally revised 3.2% growth in the prior month and matching market forecasts, and the lowest producer inflation since August 2024. Meanwhile, US-Japan trade talks have stalled, particularly over Japan’s protection of its rice market. Trump recently imposed a 25% tariff on Japanese goods, also set to take effect on August 1, and ruled out any extension of the deadline. China ( SHCOMP ) rose 0.52% to above 3,500 while the Shenzhen Component edged up 0.1% to 10,590 on Thursday, recouping losses from the previous session, and the offshore yuan China’s vehicle sales grew by 13.8% year-on-year in June 2025, following an 11.2% increase in May, according to data from the China Association of Automobile Manufacturers. In 2024, total vehicle sales rose by 4.5% to 31.436 million units, a sharp slowdown from the 12% growth recorded in 2023. China’s Finance Ministry will issue CNY 6 billion in sovereign bonds in the Macau Special Administrative Region on July 16, marking the fourth consecutive year of such issuance, Xinhua News reported Wednesday. However, further gains were limited by caution ahead of China’s June trade data, set to be released over the weekend. Hong Kong ( HSI ) rose 0.19% to 23,937 in a volatile Thursday session, reversing a sharp decline in the prior session amid gains mainly from financials and property. India ( SENSEX ) fell 0.22% to 83,359 in morning trade on Thursday, extending its decline for a second consecutive session as traders weighed the prospects of a potential US-India trade deal. Investors also braced for the start of the June quarter earnings season, with TCS scheduled to announce its results later today. Australia ( AS51 ) rose 0.69% to above 8,595 on Thursday, nearing record high levels as mining and gold stocks rallied on stronger commodity prices. The Australian dollar strengthened to above $0.654 on Thursday, marking its third consecutive session of gains. In the U.S., on Wednesday, all three major indexes ended higher , after two straight days of losses, with the Nasdaq Composite ending at a record high after Nvidia became the first publicly traded company to hit $4T in market cap. U.S. President Donald Trump on Wednesday urged the Federal Reserve to slash interest rates by at least 3 percentage points, arguing it would ease the burden of national debt refinancing. U.S. stock futures retreated slightly on Thursday after the major averages finished the previous session higher, led by a rally in technology stocks: Dow -0.27% ; S&P 500 -0.27% ; Nasdaq -0.27% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan PPI growth hits 10-month low to 2.9% y/y in June China CPI sees slight rise up 0.1%, PPI drops most in two years amid weak demand and tariff risks Trump puts 25% tariff on Japan and South Korea, others (updated) U.S.-China trade agreement leads to lifted chip design software restrictions Australia’s manufacturing contraction deepens in May; retail sales miss estimates

Source: Seeking Alpha