Despite US futures edging higher on Wednesday, Asian shares were mixed as US trade negotiations raged on and the July 9 deadline of tariff imposition loomed closer.
Losses for Tesla and other technology shares also led to a drop in the shares of other entities. Oil prices, however, remained little changed.
In Japan, shares fell as there was a lack in the progress of trade talks with the US, especially with the country’s manufacturing being hit. However, the markets gained some of the lost ground, trading 0.3 per cent lower at 39,874.33.
Also Read: Trump signals US-India trade deal with ‘much less tariffs’
Stephen Innes, managing partner at SPI Asset Management, pointed to President Donald Trump's declaration that there will be no extension of his tariff pause, which ends on July 9.
“The message was blunt: if Tokyo won't yield, it will pay. Tariffs of 30 per cent, 35 per cent or whatever number we determine are now openly back on the table,” he said. “The negotiating table just became a pressure cooker.” Hong Kong's Hang Seng advanced 0.6 per cent to 24,220.65 and the Shanghai Composite index was down just over 1 point at 3,456.51.
Meanwhile, South Korea's KOSPI fell 1.2 per cent to 3,053.39 as inflation rose in June.
Australia's S&P ASX 200 edged up 0.4 per cent to 8,580.70.
On Tuesday, the S&P 500 dipped 0.1 per cent to 6,198.01 for its first loss in four days. The Dow Jones Industrial Average rose 0.9 per cent to 44,494.94, and the Nasdaq composite fell 0.8 per cent to 20,202.89.
As the spat between Elon Musk, CEO of Tesla, and US President Doanld Trump grew uglier over Trump’s push to his ‘Big, Beautiful Bill’, Musk did not refrain from decrying it, saying cutting down of government spending will be disastrous for the economy.
Tesla fell 5.3 per cent, adding to the loss of over a quarter of its value so far this year. Tesla’s total loss has accounted for 25.5 per cent in this year.
Nvidia's decline of 3 per cent has been the heaviest weight on the S&P 500.
Automakers outside of Tesla were also strong, with General Motors up 5.7 per cent and Ford Motor up 4.6 per cent.
The US stock market has made a stunning recovery from its springtime sell-off of roughly 20 per cent. But challenges still lie ahead for Wall Street, with one of the largest being the continued threat of Trump's tariffs.
Washington is also making progress on proposed cuts to tax rates and other measures that could send the US government’s debt spiralling higher, which could raise inflation. That in turn could mean higher interest rates, which would hurt prices for bonds, stocks and other investments.
In other dealings early Wednesday, benchmark US crude gained 1 cent to USD 65.46 per barrel. Brent crude, the international standard, rose 5 cents per barrel to USD 67.16.
The US dollar rose to 143.58 Japanese Yen from 143.41 Yen. The euro slid to USD 1.1798 from USD 1.1808.
Follow us
