Most Asian stock markets experienced declines on Wednesday. This downturn was largely driven by investor apprehension surrounding the upcoming US trade, as U.S. President Donald Trump on Tuesday said he is not thinking about extending a current pause on reciprocal tariffs that is set to expire on July 9. Japanese equities were hit especially hard, shedding significant value after comments from President Donald Trump cast doubt on the possibility of a trade agreement with Tokyo. Gold hovered above $3,330 per ounce on Wednesday, holding an over 1% gain from the previous session. Japan ( NKY:IND ) fell 0.23% to around 39,500, while the broader Topix Index declined 0.6% to 2,814 on Wednesday, marking a second consecutive day of losses for Japanese equities. The Japanese yen weakened toward 144 per dollar on Wednesday, pulling back from over three-week highs. The selloff came after US President Donald Trump threatened to impose a 35% tariff on Japanese imports, aiming to pressure Tokyo into making trade concessions. Tokyo aims for a "win-win" trade deal with the U. S., according to Deputy Chief Cabinet Secretary Kazuhiko Aoki, despite President Trump's threats of high tariffs on Japanese goods. Trump has expressed frustration over Japan's low purchases of American rice and cars, warning that tariffs could increase to 30% or 35%. China ( SHCOMP ) fell 0.04% to around 3,450, while the Shenzhen Component dropped 0.5% to 10,420 on Wednesday, paring gains from the previous session. China's President Xi Jinping on Tuesday vowed to tighten oversight of aggressive price-cutting by domestic firms, amid growing concerns over persistent deflation. Market focus is now shifting to the upcoming Politburo meeting later this month. Hong Kong ( HSI ) rose 0.68% to 24,202 in early Wednesday trade, snapping a three-session losing streak as markets reopened after Tuesday’s holiday. India ( SENSEX ) fell 0.05% trading around 83,676 in early deals on Wednesday, after gains in the previous session, as traders remained cautious amid ongoing economic and geopolitical uncertainty. Market participants also continued to monitor trade negotiations between India and the US ahead of President Donald Trump’s July 9 deadline for tariffs, as well as developments in the Middle East. Australia ( AS51 ) rose 0.74% to around 8,554 on Wednesday, after pausing in the previous session, boosted by rallies in mining and real estate stocks. The Australian dollar weakened to around $0.656 on Wednesday, retreating gains from the previous session, as weaker-than-expected domestic data dampened investor sentiment. The Ai Group Industry Index for the Australia's manufacturing sector fell to -29.3, extending its downward trend. The Ai Group Australian Industry Index edged down by 1.8 points to -11.9 in June, indicating continued contraction. Australia’s retail sales grew by 0.2% month-on-month in May, after a flat reading in April but fell short of forecasts for a 0.4% rise. In addition, building permits rose by 3.2% month-over-month to 15,212 units in May 2025, less than anticipated, adding to concerns about a weakening economic outlook. Private house approvals in Australia climbed by 0.5% month-over-month to an eight-month high of 9,454 units in May 2025. On the downside, Australian pizza chain Domino’s dropped up to 19%, after announcing CEO Mark van Dyck’s departure. In the U.S., on Tuesday, all three major indexes ended mixed after the Senate passed President Trump’s sweeping budget bill, with investors also keeping an eye on trade developments. Looking ahead, investors are focused on ADP’s private payrolls report due Wednesday and the closely watched June jobs report on Thursday for further clues on the strength of the labor market and potential Fed policy moves. U.S. stock futures held steady on Wednesday, following a mixed performance in the previous session: Dow +0.23% ; S&P 500 +0.28% ; Nasdaq +0.37% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia's manufacturing contraction deepens in May; retail sales miss estimates China's factory activity returns to expansion at 50.4, new orders surge amid better trade Japan's manufacturing PMI revised downward to 50.1 in June; Nikkie index drops as Trump threatens new tariffs Australia's factory activity dips to 4-month low in June amid weakening production, new orders Japan's industrial production rise less than expected in May
