This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets traded mixed as investors assessed U.S. President Donald Trump’s declaration that a trade deal with China was “done.”
Chinese imports would invite 55% tariffs, Trump suggested. Commerce Secretary Howard Lutnick confirmed that tariffs on China will stay at that level.
Japan’s benchmark Nikkei 225 was down 0.10% while the broader Topix added 0.12%. South Korea’s Kospi climbed 0.34%, and the small-cap Kosdaq was little changed.
Australia’s S&P/ASX 200 was up 0.25%.
Futures for Hong Kong’s Hang Seng index last traded at 24,252, pointing to a weaker open compared to the HSI’s last close of 24,366.94.
Traders will be looking toward a slate of inflation data coming out of the Philippines and Thailand later in the day.
U.S. stock futures fell as traders weighed a preliminary U.S.-China trade agreement and new inflation data. S&P 500 futures traded down 0.2%, along with Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average were also lower by 72 points, or 0.2%.
These moves come after U.S. consumer prices rose less than expected in May. The consumer price index climbed 0.1% for the month, compared with the Dow Jones forecast for a 0.2% rise. Core CPI, which excludes food and energy prices, also rose less than expected.
Overnight stateside, all three key benchmarks closed lower. The market’s recent run higher took a breather as major indexes ended the session near previous closing levels.
Trump said earlier in a Truth Social post that the deal with China was “done, subject to final approval with President Xi and me.”
As part of the deal framework, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities, adding that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
That didn’t excite stock or bond investors, Ed Yardeni, president of Yardeni Research wrote in a note published Thursday. “Perhaps, they were unsettled that Trump also said he is less confident that Iran will agree to stop uranium enrichment in a nuclear deal with Washington,” he said.
Equities pulled back as the market considered the reality of much higher tariffs being here to stay, said ANZ economists in a note.
— CNBC’s Brian Evans, Pia Singh, Sean Conlon contributed to this report.
Stocks end Wednesday lower across the board
The Dow Jones Industrial Average closed lower by 1.1 points to end at 42,865.77. The S&P 500 was down 0.27% to close at 6,022.24, while the tech-heavy Nasdaq Composite lost 0.50% and settled at 19,615.88.
— Pia Singh
U.S. crude oil jumps more than 4% on escalating Middle East tensions
U.S. crude oil futures rose more than 4% Wednesday on escalating tensions in the Middle East.
Brent crude futures rose $2.90, or 4.34%, to close at $69.77 barrel. U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to settle at $68.15.
The U.S. is preparing a partial evacuation of its embassy in Iraq due to heightened security risks in the region, sources told Reuters. The U.S. military has authorized the “voluntary departure” of troops’ dependents from the Middle East due to rising tensions with Iran, sources told the Associated Press.
— Spencer Kimball
10-year Treasury auction shows healthy demand
The widely followed $39 billion 10-year Treasury auction provided some relief to investors who have been worried about global demand for the government asset.
The yield of 4.221% came in 7 basis points below the level when issued. Meanwhile, the level of direct and indirect bidding took control 91% of the auction, a similar pace last month but the most since February 2023, according to Peter Boockvar, chief investment officer of Bleakley Financial Group.
However, the bid to cover of 2.52 came in below the previous 12 month average of 2.57, marking the second weakest since October 2024.
“The 10 yr note auction was somewhat of a mixed bag but more good than not,” Boockvar said.
Nonetheless, BMO’s called the auction a “strong” one as demand Treasurys remains solid in the uncertain macro environment.
— Yun Li
