Stock Markets in Taiwan could potentially prolong their losses from Friday.
The current outlook for Asian markets remains cautious due to ongoing tariff concerns linked to uncertain US trade policy. Asian stocks have been slipping as investor sentiment weakens ahead of key US tariff deadlines in early August, exacerbated by mixed signals from the White House about potential tariff hikes on various trading partners.
On Friday, major indices in the region experienced a mixed performance. The Taiwan Stock Exchange (TSE) ended a three-day winning streak, finishing modestly lower. Hon Hai Precision, a key player in the tech sector, tumbled 1.83 percent, while Taiwan Semiconductor Manufacturing Company shed 0.46 percent. However, MediaTek rallied 1.57 percent, and Catcher Technology improved 0.72 percent.
In Japan, the Nikkei slipped by around 0.3 percent, while South Korea's KOSPI experienced a similar decline. Asia Cement slumped 1.71 percent, and Largan Precision surrendered 2.59 percent. Delta Electronics lost 0.44 percent, but E Sun Financial added 0.60 percent.
The uncertainty stems from US President Trump's announcement that higher tariffs could be imposed starting August 1, with formal notifications to affected countries by July 9. However, there is little clarity on which nations could face these increased tariffs, adding to investor anxiety. Major trading partners such as India, Japan, and the EU are reportedly in critical negotiation phases with the US, adding further complexity to the outlook.
The Thai market is also expected to trade lower due to stalled US-Thai trade talks and US restrictions on AI chip exports, alongside broader tariff concerns. Political instability and regulatory changes are additional pressures for Thailand's SET Index.
Despite the cautious regional mood, Singapore’s market notably bucked the trend, reaching a new all-time intraday high, reflecting some resilience amid tariff worries.
Broader market pressure is compounded by falling oil prices after OPEC+'s surprise output hike, which adds to the economic uncertainty for Asian economies dependent on energy imports. Crude oil prices slumped on Friday, finishing at $66.49 per barrel for West Texas Intermediate crude for August delivery.
In summary, the Asian market outlook is clouded by tariff uncertainty and geopolitical tensions, leading to cautious investor behavior and moderate declines in major indices. Market participants are closely monitoring US announcements and trade negotiations, with regional variations—some markets like Singapore showing strength while others face downward pressure.
In the tech sector of Asia, major players like Hon Hai Precision and Taiwan Semiconductor Manufacturing Company faced losses, while MediaTek and Catcher Technology experienced gains, indicating a mixed industry performance. Despite this, the region's finance sector remains uncertain, as investors weigh the potential impact of US tariffs on Asian markets. Furthermore, the finance sector is not only influenced by tariff concerns but also by geopolitical tensions, Falling oil prices due to OPEC+'s output hike, and regional economic factors such as stalled US-Thai trade talks and US restrictions on AI chip exports in Thailand.
