Asian stock markets opened the week on a mixed note as investors turned cautious ahead of several major events. Japan’s Nikkei 225 fell 1%, retreating from recent highs, as traders await the Bank of Japan’s policy decision later this week. In contrast, Hong Kong’s Hang Seng Index rose 0.5%, buoyed by optimism over a potential U.S.-EU trade deal that could lower tariffs on European goods.
Across the region, trading remained subdued. Market participants are closely watching the upcoming August 1 deadline, when U.S. President Donald Trump may implement new tariffs. Last week’s strong Wall Street rally, gains in U.S. futures during the Asian session, and anticipation of earnings reports from tech giants like Apple and Microsoft offered limited support to investor sentiment.
Meanwhile, hopes of easing U.S.-China tensions were reignited as reports surfaced about a potential meeting between American and Chinese officials in Sweden to discuss a three-month extension of the current tariff truce.
In China, equities opened higher but gave up early gains, with the Shanghai Composite and CSI 300 both slipping 0.2%. Elsewhere, South Korea’s KOSPI index stabilized as Samsung shares surged over 3% following news of a $16.5 billion chip supply deal with Tesla. Australia’s ASX 200 edged up 0.3%, while Singapore’s Straits Times Index and India’s Nifty 50 posted marginal losses.
The Bank of Japan’s upcoming decision remains a focal point. While no change in interest rates is expected, investors will be closely watching for any hints of a policy shift following recent progress in U.S.-Japan trade negotiations.