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Asian Markets Mixed as Investors Await Key Central Bank Decisions, Trade Talks

Asian Markets Mixed as Investors Await Key Central Bank Decisions, Trade Talks. Source: Image by Gerd Altmann from Pixabay

Asian stock markets opened the week with mixed performance, as investors weighed optimism over a U.S.–EU trade deal against caution ahead of major central bank meetings and corporate earnings. Japan’s Nikkei 225 fell 1% after touching one-year highs last week, pressured by uncertainty surrounding the Bank of Japan’s upcoming rate decision. The broader TOPIX slipped 0.5%, with analysts expecting the BoJ to hold rates at 0.5% but potentially hint at future hikes following the recent U.S.–Japan trade agreement.

Hong Kong’s Hang Seng index gained 0.5%, leading regional advances after an early 1% jump, while China’s Shanghai Composite and CSI 300 indexes slipped 0.2% each amid tempered optimism over ongoing trade talks with the U.S. in Stockholm. According to reports, Washington and Beijing may extend their tariff truce for another three months ahead of the August 12 deadline, easing fears of renewed tensions.

South Korea’s KOSPI traded flat, but Samsung Electronics surged over 3% following news of a $16.5 billion semiconductor supply contract, reportedly with Tesla. Australia’s S&P/ASX 200 rose 0.3%, while Singapore’s Straits Times Index dipped 0.2%. India’s Nifty 50 edged lower, whereas the Philippines’ PSEi Composite rallied 1.3%.

Global sentiment remained cautiously upbeat, buoyed by Wall Street’s record highs last week and rising U.S. stock futures in Asian trading. Investors are closely monitoring the Federal Reserve’s policy meeting beginning Tuesday and key earnings from tech giants including Apple and Microsoft. The U.S.–EU framework agreement, which reduces tariffs on European goods to 15% from 30%, also supported broader market confidence amid ongoing global trade negotiations.

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