Asia Stocks Cautious Before China Tariff Deadline; Australia Sets Record High

Most Asian stock markets were little changed on Monday as investors looked ahead to the looming expiration of the U.S.-China tariff truce, while Australian equities climbed to new highs on rate-cut expectations.

Trading activity was muted, with Japanese markets shut for a public holiday.

On Wall Street, major indexes ended Friday higher, capping a week of strong gains driven by optimism that the Federal Reserve could lower interest rates soon. U.S. futures edged up during Asian hours.

Tariff Truce in Focus

The agreement between Washington and Beijing, which has paused further tariff escalations, is set to expire on Aug. 12. While traders are hopeful for an extension, uncertainty remains.

Chinese exports rose 7.2% year-on-year in July, suggesting exporters may have front-loaded shipments ahead of possible renewed duties. Adding to trade tensions, the U.S. introduced new “reciprocal” tariffs on Aug. 7 targeting goods from countries imposing duties of up to 50%.

China’s Shanghai Composite inched up 0.1%, while the CSI 300 gained 0.2%. Hong Kong’s Hang Seng slipped 0.1%, and both South Korea’s KOSPI and Singapore’s Straits Times were largely unchanged.

Among notable movers, SK Hynix shares surged over 3% after Reuters reported the chipmaker sees the AI-focused memory market growing 30% annually through 2030. Elsewhere, the Philippines’ PSEi fell 0.5%, Indonesia’s Jakarta Composite rose 0.6%, and India’s Nifty 50 futures added 0.1%.

Australia Hits Record High

Australia’s S&P/ASX 200 advanced as much as 0.5% to a fresh all-time high as investors bet the Reserve Bank of Australia will cut its benchmark rate by 25 basis points to 3.60% on Tuesday.

Expectations for easing have grown amid slowing inflation and signs of a cooling labor market.