Asia stock markets trade mostly higher on Tuesday, following a strong close to both the month and the quarter, with the S&P 500 and Nasdaq Composite reaching new all-time highs. Investors continued to weigh the global impact of US tariff policies, with the 90-day reprieve set to expire next week. Gold climbed to around $3,320 per ounce on Tuesday, extending gains from the previous session, underpinned by a weaker US dollar. Japan ( NKY:IND ) fell 1.26% to below 40,100 while the broader Topix Index lost 0.5% to 2,840 on Tuesday, with Japanese shares snapping a five-day winning streak. The Japanese yen appreciated toward 143.5 per US dollar on Tuesday, reaching its highest level in over two weeks, even as renewed trade tensions with the US intensified. The au Jibun Bank Japan Manufacturing PMI was revised lower to 50.1 in June 2025, down from the preliminary estimate of 50.4 but up from May’s 49.4. On the domestic front, Japan’s latest Tankan survey showed a surprise uptick in business sentiment among large manufacturers in the second quarter, highlighting resilience amid growing external pressures. Japan’s consumer confidence index rose to 34.5 in June 2025, up from 32.8 in May and surpassing market forecasts of 33.6. Separately, President Donald Trump threatened fresh tariffs on Japan, criticizing the country’s reluctance to import American rice, and confirmed that the 25% tariff on Japanese auto imports would remain in place due to the persistent trade imbalance. The warning comes ahead of a July 9 deadline for resuming higher tariffs on various trade partners, including Japan. China ( SHCOMP ) rose 0.36% to around 3,448 while the Shenzhen Component lost 0.3% to 10,430 on Tuesday, with mainland stocks lacking clear direction despite a surprise rebound in manufacturing activity, and the offshore yuan held its recent gains to around 7.16 per dollar on Tuesday, hovering near its highest level since early November 2024. The Caixin China General Manufacturing PMI unexpectedly rose to 50.4 in June 2025, up from 48.3 in May—which had marked the steepest contraction since September 2022—and beating market forecasts of 49, supported by Beijing’s efforts to stabilize growth amid higher US tariffs. Hong Kong ( HSI ) market closed India ( SENSEX ) rose 0.05% to 83,777 in early trading on the first day of the new quarter, recovering from losses in the prior session, mainly supported by the tech sector. The HSBC India Manufacturing PMI stood at 58.4 in June 2025, matching flash data and marking the highest print since April 2024. However, traders remained cautious ahead of the July 9 deadline for trade negotiations with the US and potential tariffs by the Trump administration. Australia ( AS51 ) rose 0.05% to around 8,573 on Tuesday, extending gains from the previous session, despite growing uncertainty over US interest rate policy and a slowdown in Australia’s manufacturing sector. The Australian dollar weakened to around $0.656 on Tuesday, after touching over seven-month highs in the previous session. In Australia, the Manufacturing PMI dropped to 50.6 in June from 51.0 in the previous month—its lowest level since February. In the U.S., on Monday, all three major indexes ended higher as investors aimed to close out a volatile first half of 2025 with fresh record highs. Investors now look ahead to a series of US labor market reports during this holiday-shortened trading week, culminating in Thursday's non-farm payrolls' data, for more clues on the Fed’s policy path. U.S. stock futures held steady on Tuesday following a strong close to both the month and the quarter: Dow -0.07% ; S&P 500 -0.14% ; Nasdaq -0.16% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: 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 China’s manufacturing PMI contracts for third consecutive month in June to 49.7; services growth at 3-month peak
