Despite US President Trump issuing 14 new tariff letters, Asian stock markets rallied, defying expectations of a sharp sell-off. The market reaction suggests skepticism about White House following through decisively on tariff threats. Trump extended the 9 July tariff deadline to 1 August and hinted at further extensions for trade negotiations. European stock markets outperformed US, with reports of a possible US-EU trade deal emerging. Currency markets were mixed, with the AUD rebounding on RBA surprise decision to hold rates steady. Hong Kong’s Hang Seng Index is potentially starting a bullish sequence after a recent corrective decline.

Read more at Investing.com: Asian Markets Defy Tariff Woes While European Indices Gain on Trade Hopes