Source: Sharecast
In focus was the outcome of US-China trade talks, with traders also looking ahead to the Federal Reserve's upcoming interest rate decision.
“Asian stocks declined for a third consecutive day as enthusiasm from recent trade agreements diminished, with markets adopting a buy-the-rumour-sell-the-news posture, and investors remained cautious in a week full of economic reports and corporate earnings,” said TickMill market strategy partner Patrick Munnelly.
“The MSCI Asia-Pacific index fell, with Hong Kong shares leading the decline.
“The dollar continued its advance after its largest increase since May.”
Munnelly noted that S&P 500 futures inched up after the index experienced little movement on Monday, but ultimately closed at a record high.
“Futures for European stocks increased.
“Meanwhile, the euro dropped after experiencing its most significant decline in over two months during the previous session.”
Markets close mixed as investors continue to watch trade talks
In Japan, the Nikkei 225 fell by 0.77% to close at 40,681.00, dragged lower by declines in technology and industrial names.
Lasertec slumped 8.31%, Komatsu dropped 5.65%, and Sumco lost 4.88%.
The broader Topix index also slipped 0.75% to 2,908.64.
Chinese markets advanced, with the Shanghai Composite gaining 0.33% to 3,609.71 and the Shenzhen Component rising 0.64% to 11,289.41.
Gains were led by strong moves in individual stocks, including Guangzhou Fangbang Electronics, which surged 20%, while Sinochem International and Xining Special Steel each rose over 10%.
Hong Kong’s Hang Seng Index edged down 0.15% to 25,524.45, weighed by weakness in major tech and financial stocks.
Xiaomi declined 2.64%, while Hong Kong Exchange and Clearing and Baidu each dropped 1.91%.
South Korea's Kospi 100 added 0.46% to 3,257.17, supported by solid gains in industrial and defence-related stocks.
Samsung Engineering climbed 5.95%, Hyundai-Rotem rose 5.86%, and Hanwha Techwin advanced 4.72%.
Australia’s S&P/ASX 200 was marginally higher, up 0.08% to 8,704.60.
Platinum Asset Management led the gains with a 6.35% jump, followed by Austal and Clinuvel Pharmaceuticals, which rose 3.62% and 3.3% respectively.
New Zealand’s S&P/NZX 50 gained 0.2% to 12,936.41, lifted by strong performances from Eroad, up 4.14%, Fonterra Shareholders Fund, up 3.9%, and Synlait Milk, which added 3.17%.
In currencies, the dollar last down 0.01% on the yen to trade at JPY 148.52, while it gained 0.11% against the Aussie to AUD 1.5352, and advanced 0.18% on the Kiwi, changing hands at NZD 1.6781.
Oil prices edged higher, with Brent crude futures last up 0.6% on ICE at $70.46 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.7% to $67.18.
“The optimism surrounding recent tariff agreements is waning, as investors shift their focus to critical economic indicators, including jobs, inflation, and overall economic activity,” Patrick Munnelly added.
“Attention will be on the Federal Reserve's policy announcement on Wednesday, where it is anticipated that officials will maintain current interest rates, followed by earnings reports from four major tech companies.
“European leaders defended the trade agreement reached with Trump, but industry representatives in Germany cautioned that the deal leaves the auto sector vulnerable and could diminish competitiveness for European firms.”
The Dutch minister for foreign trade described the agreement as “not ideal”, Munnelly noted, adding that the minister urged the commission to keep negotiating with the US.
“Additionally, US and Chinese officials completed the first of two days of discussions aimed at extending their tariff agreement past a mid-August deadline and exploring how to strengthen trade ties while ensuring economic security.
“According to US trade representative Jamieson Greer, the US will require further negotiations with India to reach an agreement.”
Reporting by Josh White for Sharecast.com.