US stocks trade sideways amid renewed US tariff threats. Asian markets show mixed performances. Japanese Yen weakness continues while the Australian Dollar holds steady after the RBA decision.
Global equities drift sideways over new tariffs developments, JPY extends weakness
The major benchmark US stock indices traded sideways with mixed performances as traders grappled with US tariffs-related news flow and uncertainties about the implementation of such tariffs. The S&P 500 and technology-heavy Nasdaq 100 ended Tuesday’s session almost unchanged, while the Dow Jones Industrial Average shed -0.4%, dragged down by the financial sector. The small-cap Russell 2000 outperformed with a gain of 0.7%.
US President Trump reverted to his aggressive rhetoric, highlighting that there will be no “further extension” on the recently announced new 1 August deadline for the country-specific reciprocal tariffs (excluding China), downplaying the possibility of a further deadline beyond 1 August.
Trump also upped the ante on sectoral goods-based tariffs. He plans to impose a 50% levy on copper imports and floated an initiative to implement a 200% tariff on pharmaceutical products for pharmaceutical manufacturers a year later.
In addition, the US President highlighted that the White House will send “tariffs letters” to at least seven more countries today, following Monday’s first batch of letters to 14 countries.
In the Asia Pacific region, the benchmark stock indices in today's Asia mid-session also showed mixed performances. Japan’s Nikkei 225 continued to hold above a key short-term support at 39,390 and recorded an intraday gain of 0.2%. Singapore’s Straits Times Index increased by 0.1% to hit another all-time intraday high of 4,053, supported by defensive component stocks with stable dividend yields.
The underperformers were Hong Kong’s Hang Seng Index, which suffered an intraday loss of -1.2%, and resource-oriented Australia’s ASX 200, which dropped by -0.6%. The negative feedback loop from Trump’s 50% tariff rate on copper exports triggered the drop.
Japanese yen weakness has continued to dominate the FX market. The yen has depreciated against the US dollar for the third consecutive session as of today’s Asia session, with an intraday loss of -0.3%
The recent bout of yen weakness is likely due to a significant net long positioning adjustment in the JPY futures market in light of a possible higher US tariff rate on Japan exports. Large speculators' bullish bets in the past month have led to a rise in net long positions of 278,195 contracts, a 10-year high, according to data from the Commitment of Traders report as of 1 July 2025.
On the other end of the FX market, the Aussie dollar has continued to hold steady after recording a daily gain of 0.6% against the US dollar on Tuesday. The RBA surprised the market by not implementing the “highly anticipated” interest rate cut and keeping its short-term policy interest rate unchanged at 3.85% due to tariff uncertainties.
In today’s Asia session, the AUD/USD has continued to trade above its 20-day moving average, which is acting as immediate support at around 0.6520.
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