Asian Markets Trade Mixed Amid US-China Deal, Middle East Tensions

Asian stock markets traded mixed amid cautious investor sentiment influenced by global trade developments and geopolitical tensions. President Donald Trump announced a completed trade framework with China, including China supplying rare earths and magnets upfront, while the U.S. will maintain current tariffs and allow Chinese students into American universities, but plans to impose new unilateral tariffs in two weeks to pressure trade deals. Markets showed divergent performance with Japan's Nikkei and Hong Kong's Hang Seng declining, while South Korea's KOSPI and some Chinese indices posted modest gains. Oil prices surged due to rising U.S.-Iran tensions, adding to market volatility. U.S. stock futures and major indices fell slightly as markets digested trade news and recent inflation data, which showed inflation rising but not accelerating sharply due to tariffs. The dollar-yen exchange rates fluctuated amid these developments, with Japanese exporters affected by yen strength. Overall, investors remained cautious about short-term volatility amid ongoing tariff rhetoric and geopolitical risks.