Asian markets opened lower on Thursday, pressured by the United States’ sweeping tariff announcement overnight and weak manufacturing data across several economies. Investors across the region reacted with caution as expectations of further policy tightening in the West combined with fresh trade uncertainty.
Broad losses across Asia
The MSCI Asia-Pacific index slipped between 0.4% and 0.7% in early trading, led by declines in Japan, South Korea and Taiwan. The Nikkei shed 0.6%, while South Korea’s KOSPI dropped close to 1.6%. Taiwan’s equities lost nearly 1%. Chinese markets were relatively stable, supported by modest state buying in selected industrial stocks. However, the underlying data pointed to ongoing softness: manufacturing PMI figures for China, Japan and South Korea all fell below the 50 threshold, indicating contraction.
Investor sentiment has weakened as global trade frictions resurface. The new U.S. tariff measures, ranging from 10% to 25% on imports from countries including Canada, Switzerland, India and several Asian exporters, are seen as a return to Trump-era economic nationalism. Markets across the region are now recalibrating risk assumptions in light of the policy shift.
Muted reaction in futures and commodities
U.S. stock futures traded modestly lower in Asian hours, with Nasdaq contracts down 0.4% and S&P 500 futures easing by 0.2%. Investors are cautious ahead of the U.S. non-farm payrolls report due later today, which could determine the Federal Reserve’s policy path heading into autumn.
Oil prices edged down as demand forecasts were revised lower following the tariffs announcement. Brent crude hovered near $82 per barrel, while WTI traded just under $78. Gold prices rose slightly as traders sought safety amid rising global tensions.
European markets poised for lower open
European equities are expected to open on the back foot, mirroring Asian weakness. Futures for the Euro Stoxx 50 and Germany’s DAX both indicated losses of around 0.3% at the open. Investors are watching closely for any coordinated response from the European Union to the new U.S. measures, especially as Switzerland and the Netherlands are among those targeted.
Bond yields in the euro area remain elevated, reflecting ongoing inflation concerns and uncertainty over the European Central Bank’s rate path. The euro traded slightly lower against the dollar, with risk aversion dominating early flows.
Key risks ahead for U.S. session
The main focus for U.S. investors today will be the July jobs report. Markets expect a slowdown in job creation to around 110,000 and a slight uptick in the unemployment rate to 4.2%. A weaker-than-expected report could reignite speculation of a rate cut in September, although fresh tariffs complicate the inflation outlook.
Corporate earnings continue to roll in, with Amazon and Apple among the high-profile names moving pre-market. Amazon shares fell sharply after disappointing cloud revenue figures, while Apple gained on stronger-than-expected iPhone sales.
Markets remain on edge as political and economic narratives collide. For now, global sentiment is fragile, shaped by a mix of hard data, geopolitical unpredictability and a shifting monetary landscape.
REFH – Newshub, 1 August 2025
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