This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets traded mixed on Monday after U.S. President Donald Trump confirmed that “reciprocal” tariffs, first announced in April, will take effect on Aug. 1 for countries that haven’t struck a deal.
Trump added in a separate announcement Sunday that an additional 10% tariff would be charged to countries “aligning themselves with the anti-American policies of BRICS” without elaborating. His announcement came as the BRICS bloc of developing countries gathered in Rio de Janeiro, Brazil, for a two-day summit.
Earlier on Sunday, Treasury Secretary Scott Bessent said that tariffs introduced in April will be enforced starting August 1 for countries that haven’t finalized an agreement with the Trump administration. While Bessent dismissed the notion that August 1 represents a fresh deadline, he acknowledged that the new date could allow trading partners additional time to renegotiate tariff terms.
Japan’s benchmark Nikkei 225 slipped 0.56% to close at 39,587.68 while the Topix declined 0.57% to close at 2,811.72. South Korea’s Kospi added 0.17% to end the trading day at 3,059.47 and the small-cap Kosdaq closed 0.34% higher at 778.46.
Australia’s S&P/ASX 200 slid 0.16% to end the day at 8,589.3.
Hong Kong’s Hang Seng index lost 0.61%, and mainland China’s CSI 300 dipped 0.43% to 3,965.17.
The Reserve Bank of Australia kicks start its two-day meeting, where it is widely expected to cut rates by 25 basis points to 3.60%.
U.S. stock futures fell after Trump confirmed that tariffs are set to go into effect Aug. 1, not July 9. Dow Jones Industrial Average futures slid by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures dipped 0.39% and 0.42%, respectively.
Last Friday stateside, the three major averages closed higher. The S&P 500 and Dow Jones Industrial Average powered to new highs and capped off a winning week as banking behemoths ushered in a promising start to the third-quarter earnings season. The Nasdaq Composite added 0.33% to finish at 18,342.94 and less than 2% below its all-time high.
— CNBC’s Samantha Subin and Brian Evans contributed to this report.
Japan’s real wages fall at fastest pace in 20 months
Real wages in Japan have fallen at the fastest pace in 20 months.
Data from Japan’s ministry of health, labor and welfare revealed that real wages fell 2.9% in May compared to the year before. This was sharper than the revised 2% decline in April and marked its fifth straight month of decline.
The ministry’s data shows that nominal wages have risen every month from December 2021.
—Lim Hui Jie
Private credit’s trillion-dollar boom is fueling warnings of a hidden financial contagion
Private credit has swiftly emerged as one of the hottest corners of global finance, and its rapid rise is prompting alarm bells.
It comes as no surprise that industry observers are saying private credit could become a locus of contagion in the next financial crisis, said Shihan Abeyguna, Morningstar’s Southeast Asia managing director.
According to PitchBook data, the private debt industry is sitting on $566.8 billion worth of funds ready for deployment— a historic level of dry powder.
Fund managers are incentivized to lend quickly and put them to work, as one cannot collect fees on cash that is lying around, added Abeyguna.
“If this becomes reality, then managers may find themselves lowering lending standards in a bid to lend more money, which leads to a higher default risk,” he told CNBC.
Read the full story here.
—Lee Ying Shan
Reserve Bank of Australia expected to cut rates in July meeting, say economists
The Reserve Bank of Australia kickstarted its two-day meeting, where it is widely expected to cut rates by 25 basis points to 3.60%.
ANZ economists forecast that the RBA will cut its cash rate by 25 basis points in the July and August meetings given the “overall resilience” in Australia’s economy and ongoing tightness in the country’s labor market.
Similarly, Commonwealth Bank of Australia sees a 25 basis points cut, and believes a 50 basis points reduction is not on the table given the “less uncertain global environment” relative to May.
—Lee Ying Shan
Trump says countries aligning with BRICS policies will face additional 10% tariff
U.S. President Donald Trump announced that an additional 10% tariff will be charged to countries “aligning themselves with the anti-American policies of BRICS,” without elaborating.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump said in a post on Truth Social Sunday evening stateside.
Separately, Trump confirmed that the U.S. will start delivering letters on Monday, detailing country-specific tariff rates and any agreements reached with various trading partners.
Read the full story here.
— Anniek Bao
Oil prices fall after OPEC+ agrees to larger-than-expected oil production hike
Oil prices fell after eight oil-producing nations of the OPEC+ alliance agreed over the weekend to increase their collective crude production by 548,000 barrels per day, as they continued to unwind a set of voluntary supply cuts.
This subset of the alliance — comprising heavyweight producers Russia and Saudi Arabia, alongside Algeria, Iraq, Kazakhstan, Kuwait, Oman and the United Arab Emirates — met digitally. They had been expected to increase their output by a smaller 411,000 barrels per day.
The U.S. West Texas Intermediate crude fell 1.91% to $65.72 per barrel, while global benchmark Brent was down 1.17% to $67.50 per barrel as of 9.06 a.m. Singapore time.
If there is no reversal of these output hikes, “the stage is set” for an oil surplus, which will drag oil prices even further going into the end of the year, said Vishnu Varathan, Mizuho Securities’ head of macro research, Asia ex-Japan.
—Lee Ying Shan, Ruxandra Iordache
Asia-Pacific markets kick off Monday trading lower
Asia-Pacific markets kicked off Monday trading lower. Japan’s benchmark Nikkei 225 slipped 0.26% while the Topix declined 0.18%. South Korea’s Kospi fell 0.48% and the small-cap Kosdaq slipped 0.5%.
Australia’s S&P/ASX 200 was flat at the open.
—Lee Ying Shan
Good morning from Singapore, here are the opening calls
Hello from Singapore!
Asia-Pacific stock markets are looking at a mixed trading Monday after U.S. President Donald Trump confirmed that higher tariffs, first announced on April 2, will take effect on Aug. 1 for countries that have not struck a trade deal.
In April, Trump also announced a 90-day pause on the steep tariffs, which is due to expire on Wednesday.
Australia’s S&P/ASX 200 is set to open lower with futures tied to the benchmark at 8,583 compared to its last close of 8,603. Futures for Hong Kong’s Hang Seng index stood at 23,899, lower than its last close of 23,916.06.
Japan’s benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 39,915 against the index’s last close of 39,810.88.
—Lee Ying Shan
Trump confirms that tariffs will go into effect Aug. 1
U.S. President Donald Trump stands next to U.S. Secretary of Commerce Howard Lutnick, as he speaks to members of the media, upon his arrival at Morristown Airport, in Morristown, New Jersey, on July 6, 2025.
U.S. President Donald Trump and high-ranking Cabinet officials confirmed that tariffs will go into effect Aug. 1, not July 9.
Trump and Commerce Secretary Howard Lutnick were asked in an interview with pool reporters Sunday to clarify when the new higher tariffs rates will be implemented. Lutnick responded, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump assented with the statement.
Earlier in the day, Treasury Secretary Scott Bessent said in an interview on CNN’s “State of the Union” that tariffs announced back in April will go into effect on Aug. 1 for those countries that have yet to reach an agreement with the U.S. He said duties will “boomerang” back to higher April 2 levels if there is no progress.
As of Sunday, Trump’s April 9 executive order which established the July 9 tariff implementation date did not appear to have been formally revised. While the president has broad tariff powers, the April 9 order would typically be replaced with a new order establishing the Aug. 1 date.
The White House did not immediately reply to a question from CNBC about whether the president planned to issue a new executive order before July 9.
— Sarah Min
