Asian Markets mixed as U.S.-China Trade Tensions and Inflation Data

Asian equity markets were mixed as investors weighed U.S.-China trade tensions. Trump’s tariff threats extended to copper and pharmaceutical imports, while China’s inflation data showed deflationary risks. Weak cues from Wall Street and RBA’s surprise rate hold added pressure to markets.

China’s CPI beat expectations in June, but PPI continued to decline for 33 months. Policy efforts to counter U.S. tariffs have not fully addressed deflation concerns. Asia-Pacific markets had a flat-to-lower bias, with Australia’s ASX 200 down 0.3%.

India’s absence from Trump’s tariff letters sparked optimism for a trade deal. Despite a tariff deadline extension, uncertainty prevails in Asian markets. Clarity on U.S. tariffs and China’s inflation is needed for market direction. Sector-specific plays will react to policy developments and monetary shifts.