Trump's "Done Deal" or Dud? Asia Markets Sweat the Small Stuff

Asia-Pacific Markets Grapple with Mixed Signals Amid Trump's China Deal Claims

Asia-Pacific markets experienced a day of mixed trading as investors carefully evaluated former U.S. President Donald Trump's pronouncements regarding a "done" trade deal with China. The markets are now trying to understand the full implications of these claims, coupled with new inflation data and its potential impact on economic policies.

In Japan, the benchmark Nikkei 225 concluded the day with a 0.65% decrease, settling at 38,173.09. Simultaneously, the broader Topix index saw a 0.21% decline, closing at 2,782.97.

Conversely, South Korea's market presented a more optimistic picture. The Kospi index edged up by 0.45% to close at 2,920.03, while the small-cap Kosdaq also saw a positive movement, rising 0.4% to finish at 789.45.

Adding to the market's uncertainty were details emerging from Trump's statements. Key points included:

• Trump suggesting that Chinese imports would face 55% tariffs.
• Confirmation from Commerce Secretary Howard Lutnick that tariffs on China will remain at this level.

U.S. stock futures also reflected investor caution. S&P 500 futures traded down by 0.2%, mirroring the performance of Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average also saw a dip, falling by 72 points, or 0.2%.

This market reaction comes in the wake of U.S. consumer price data, which indicated that inflation rose less than anticipated in May. The consumer price index (CPI) increased by 0.1% for the month, falling short of the Dow Jones forecast of 0.2%. Core CPI, which excludes volatile food and energy prices, similarly posted a smaller-than-expected increase.

Overnight trading stateside saw all three major benchmarks close lower, signaling a pause in the market's recent upward trajectory.

Trump's remarks, initially shared on Truth Social, outlined a potential deal framework with China, subject to final approval. Key components included:

• China supplying magnets and "any necessary rare earths" upfront.
• The U.S. allowing Chinese students to attend U.S. colleges and universities.
• The U.S. receiving "a total of 55% tariffs," while China receives 10%.

Ed Yardeni, president of Yardeni Research, noted that these details failed to excite stock or bond investors. He added, "Perhaps, they were unsettled that Trump also said he is less confident that Iran will agree to stop uranium enrichment in a nuclear deal with Washington."

ANZ economists commented that equities pulled back as the market began to factor in the reality of substantially higher tariffs remaining in place.

In conclusion, the Asia-Pacific markets' mixed performance reflects the complex interplay of factors currently influencing investor sentiment. From trade deal uncertainties to inflation data and geopolitical concerns, market participants are navigating a landscape filled with both opportunities and risks. The coming days will be crucial in determining the long-term impact of these developments on the global economic stage.

Tags: Nikkei 225, Topix, Kospi, Kosdaq, China Tariffs, Trump Trade, US Futures, Stock Market, Inflation Data, Asia-Pacific Markets

Source: https://www.cnbc.com/2025/06/12/asia-pacific-markets-today-live-trump-china-deal-thailand-cpi.html