Asia-Pacific markets posted mixed results on Thursday as investors weighed President Trump’s announcement that a U.S.-China trade framework is “done,” CNBC reports. Trump revealed that China will supply rare earth elements and magnets to the U.S., while American universities will admit more Chinese students.
The agreement—reached after negotiations in London and building on earlier accords from Geneva—will maintain current U.S. tariffs, including a total of 55% on Chinese imports (20% fentanyl, 10% reciprocal, and 25% pre-existing) and 10% on U.S. goods entering China. Ratification by both Trump and President Xi Jinping is still pending Reuters.
Despite Trump’s optimism, markets responded tentatively. The Hang Seng dropped 1.33% to 24,043.70, while mainland China’s CSI 300 closed flat at 3,892.20. Japan’s Nikkei 225 fell 0.65% to 38,173.09, and the broader Topix index declined 0.21% to 2,782.97.
On the upside, South Korea’s KOSPI gained 0.45% to 2,920.03, with the small-cap KOSDAQ up 0.4% at 789.45. Australia’s S&P/ASX 200 slipped 0.31% to 8,565.1, while India’s Nifty 50 eased 0.45% AP sources indicate a neutral reaction to Trump’s trade update.
Asia-Pacific markets are muted as traders digest Trump’s “deal done” announcement. Hang Seng & Nikkei slip, while KOSPI holds firm. pic.twitter.com/reutersAP12
— Reuters (@Reuters) June 12, 2025
Analysts are cautious. U.S. markets dipped slightly, and the dollar eased after data showed cooler inflation—suggesting the Federal Reserve may be less aggressive in future rate hikes Reuters. Meanwhile, the World Bank flagged ongoing trade tension as a global growth risk.
Key takeaways:
- Tariffs remain high: Despite promising signs, both U.S. and China maintain steep duties—keeping global supply chain pressure alive.
- Market reaction muted: Without detailed terms, equity and bond markets remain cautious, showing minor swings across Asia.
- Macro backdrop matters: With U.S. inflation steady and central banks cautious, broader economic indicators will guide future market direction.
For more in-depth coverage, see Investopedia’s breakdown of how the 55% tariff structure affects U.S. imports and rare earth minerals.