Asian shares remain steady while traders wait for tariff deadline

Asian stock markets remained almost steady higher on Wednesday, as investors were cautious after trade negotiations between the United States and China wrapped up without any major breakthroughs.

The MSCI index for Asia‑Pacific rose 0.3%, where Taiwan led the gains, as American stocks closed slightly lower.

Japan’s Nikkei dipped 0.03% and Hong Kong’s Hang Seng slid 0.4%. The euro recovered from a one‑month low, gaining 0.2% to $1.1564, after the EU struck a trade deal with the U.S. administration.

Traders are bracing for a series of central bank announcements, key economic data releases and corporate earnings reports over the coming days, all leading up to President Donald Trump’s August 1 deadline for new tariffs, dubbed “Liberation Day.”

The Federal Reserve is widely expected to leave its benchmark interest rate unchanged when it concludes its meeting on Wednesday, although a handful of policymakers may dissent and call for lower borrowing costs in view of growing global uncertainties.

U.S. Treasuries strengthened ahead of the Fed’s decision

A strong seven‑year note auction eased worries about demand for government debt, pushing the benchmark 10‑year yield down to 4.328%, its lowest since July 3, while the two‑year yield held at 3.873%.

Investors now look to the Bank of Japan, which is expected to keep its policy rate unchanged on Thursday. They will study its statement for signs of when it might resume rate increases, now that a recent trade deal with the United States has cleared the path for tighter policy.

With the August 1 deadline looming, trade talks with several countries were entering final hours, as diplomats warned time was running out to prevent fresh U.S. import duties.

On Tuesday, U.S. and Chinese officials said they would seek to extend their 90‑day tariff truce, though they announced no major progress, leaving both sides awaiting political approval before any further moves.

U.S. officials noted that President Trump must decide whether to extend the truce, which expires on August 12, or let tariffs return to triple‑digit levels, as the final choice rests with the White House.

India is also gearing up for steeper U.S. duties, expected to range from 20% to 25% on certain exports, as officials there pause new trade offers ahead of the August 1 cutoff, according to two unnamed government sources.

In another push to avert fresh taxes, three South Korean cabinet ministers travelled to Washington for meetings with Commerce Secretary Lutnick, in what officials described as a last‑ditch effort to secure concessions.

Oil prices ticked up

In energy markets, oil prices ticked up on worries about future supply shortages after President Trump imposed a tight deadline on Russia to end its military actions in Ukraine. Brent crude for September delivery rose by 14 cents, or 0.19%, to settle at $72.65 per barrel.

The spotlight also turns to earnings from U.S. tech giants, with Microsoft and Meta set to report on Wednesday. Analysts say their results will shape sentiment for the rest of the reporting season, following a relatively solid start to quarterly updates.

At the same time, the Singapore dollar gained 0.2% after the Monetary Authority of Singapore opted to keep its policy unchanged.

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