Asian Shares Rise Amid U.S. Tariff Pressure Japan, South Korea

Asian equity markets showed modest gains as investors reacted positively to U.S. President Donald Trump's announcement of revised tariff rates and the extension of the reciprocal tariff deadline to August 1, offering a window for potential negotiations with key trading partners such as Japan, South Korea, and Malaysia. Despite some volatility and recent declines on Wall Street, including a significant drop in Tesla shares amid tensions between CEO Elon Musk and President Trump, Asian markets like Japan's Nikkei 225, South Korea's Kospi, and Hong Kong's Hang Seng rose, reflecting cautious optimism. The proposed tariffs include a 25% duty on goods from Japan, South Korea, and Malaysia, with higher rates on Laos and Myanmar, escalating trade tensions but also prompting hopes for bilateral agreements before implementation. Chinese and Hong Kong stocks also advanced, supported by government measures to control price wars and anticipation of economic data, while sectors like solar manufacturing and semiconductors gained. Market analysts describe the tariff deadline extension as a negotiation buffer that has maintained market calm despite underlying risks, with investors closely monitoring developments amid potential impacts on global economic growth. Overall, the situation remains fluid with markets balancing between trade war concerns and the possibility of diplomatic resolutions in the near term.