Hong Kong. Kowloon. Busy street in Mong Kok District.
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Asia-Pacific markets were set to open mixed as traders assessed U.S. President Donald Trump’s declaration that a trade deal with China was “done.”
Chinese imports would invite 55% tariffs, Trump suggested. Commerce Secretary Howard Lutnick confirmed that tariffs on China will stay at that level.
Japan’s benchmark Nikkei 225 was set to open lower, with the futures contract in Chicago at 38,330 while its counterpart in Osaka last traded at 38,400 compared with the index’s last close of 38,421.19.
Futures for Hong Kong’s Hang Seng index last traded at 24,252, pointing to a weaker open compared to the HSI’s last close of 24,366.94.
Australia’s S&P/ASX 200 was set to start the day higher, with futures tied to the benchmark at 8,622, compared to the index’s close of 8,592.1 in the previous session.
Traders will be looking toward a slate of inflation data coming out of the Philippines and Thailand later in the day.
U.S. stock futures fell as traders weighed a preliminary U.S.-China trade agreement and new inflation data. S&P 500 futures traded down 0.2%, along with Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average were also lower by 72 points, or 0.2%.
These moves come after U.S. consumer prices rose less than expected in Ma. The consumer price index climbed 0.1% for the month, compared with the Dow Jones forecast for a 0.2% rise. Core CPI, which excludes food and energy prices, also rose less than expected.
Overnight stateside, all three key benchmarks closed lower. The market’s recent run higher took a breather as major indexes ended the session near previous closing levels.
Trump said earlier in a Truth Social post that the deal with China was “done, subject to final approval with President Xi and me.”
As part of the deal framework, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities, adding that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
— CNBC’s Brian Evans, Pia Singh, Sean Conlon contributed to this report.
