Asian Stocks Retreat from Highs as Investors Await U.S. Tariff Deadline and Central Bank Meetings

Asian stocks eased on Friday, retreating from record highs as investors booked profits ahead of a critical week marked by U.S. President Donald Trump’s tariff deadline and key central bank meetings. The dollar strengthened against the yen after rebounding from a two-week low, supported by firm U.S. economic data, while Japan’s currency weakened amid political uncertainty following reports Prime Minister Shigeru Ishiba may resign.

Japan’s Topix index, which surged over 5% in the previous two sessions to a record high, slipped 0.7%, while the Nikkei fell 0.5% from a one-year high. Hong Kong’s Hang Seng dropped 0.5%, mainland Chinese blue chips slid 0.2%, and Australia’s benchmark declined 0.5%. In contrast, U.S. S&P 500 futures rose 0.2%, buoyed by strong Alphabet earnings, with the Nasdaq also hitting a record close.

Global markets remain cautious ahead of multiple events: Trump’s August 1 trade deadline, the U.S. Federal Reserve policy meeting, key payroll data, and earnings reports from tech giants Amazon, Apple, Meta, and Microsoft. The Bank of Japan will announce its policy on Thursday, coinciding with a key Liberal Democratic Party meeting following Ishiba’s coalition loss in recent elections.

The euro traded near $1.1743, down 0.2% against the dollar, while the U.S. currency advanced 0.3% to 147.37 yen. U.S. 10-year Treasury yields eased to 4.39%, while Japanese government bond yields hovered near 1.6%, their highest since 2008.

Gold prices held steady at $3,368 per ounce, poised for a weekly gain, while Brent crude rose 0.3% to $69.35 and U.S. WTI gained 0.2% to $66.18 per barrel.