Asian Shares Mixed As China's Factory Price Deflation Worsens

(RTTNews) - Asian stocks ended mixed on Wednesday after U.S. President Donald Trump expanded his trade war with steep new tariffs targeting copper, semiconductors and pharmaceuticals.

Gold declined below $3,300 per ounce due to a robust dollar while oil edged up in choppy trading.

Chinese markets ended slightly lower after the release of inflation data. While CPI inflation climbed into the green for the first time since January, producer deflation deepened to its worst level in almost two years in June, data showed.

China's Shanghai Composite index slipped 0.13 percent to 3,493.05 while Hong Kong's Hang Seng index fell 1.06 percent to 23,892.32, dragged down by EV and tech stocks.

Japanese markets recovered from an early slide to end modestly higher as the yen slid below 147 per dollar, logging its third straight daily loss amid rising tensions in U.S-Japan trade talks.

The Nikkei average rose 0.33 percent to 39,821.28 while the broader Topix index ended up 0.41 percent at 2,828.16. The yen's weakness lifted automakers, with Honda Motor and Toyota rising 3.4 percent and 0.9 percent, respectively.

Yoshinoya Holdings surged 6.5 percent after the beef bowl chain reported a 9 percent rise in quarterly net profit.

Seoul stocks hit a near four-year high despite Trump's renewed tariff threats. The Kospi average jumped 0.60 percent to 3,133.74, marking the highest closing level since Sept. 17, 2021.

A day after announcing plans to impose a 25 percent tariff on South Korean imports, Trump said on Tuesday the country paid "very little" for the U.S. military presence and recounted a previous demand that Seoul contribute $10 billion annually.

Hanwha Aerospace jumped 4.3 percent, LIG Nex1 soared 8.6 percent and Mirae Asset Securities added 6.8 percent.

Australian markets ended lower as Trump broadened his trade war and data showed China's industrial sector is grappling with its deepest deflationary spiral in years.

The benchmark S&P/ASX 200 dropped 0.61 percent to 8,538.60, led by losses in gold and mining stocks. The broader All Ordinaries index settled 0.58 percent lower at 8,777.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.70 percent to 12,768.61 and the kiwi dollar hit its lowest level in nearly two weeks as the Reserve Bank of New Zealand paused its interest rate cutting cycle but flagged more easing if price pressures abate.

Overnight, U.S. stocks fluctuated before ending narrowly mixed due to ongoing uncertainty about President Trump's tariff plans.

Trump said Tuesday his extended Aug. 1 deadline for his "Liberation Day" tariffs will stick, after previously suggesting it wasn't "100 percent firm."

Adding to the uncertainty, he also announced a 50 percent tariff on copper imports as part of a set of looming sectoral tariffs and threatened a 200 percent tariff on pharmaceutical imports.

The tech-heavy Nasdaq Composite inched up marginally while the S&P 500 ended with a negative bias and the Dow dipped 0.4 percent.