Asian Markets Close Mixed Amid US Trade Tariff Threats, EU Tensions Ease

Asian stock markets showed mixed performance amid ongoing concerns about U.S.-China trade tensions and tariff threats from President Donald Trump. While some markets like Japan's Nikkei and South Korea's Kospi rallied on optimism about trade negotiations and delayed EU tariffs, others such as Hong Kong's Hang Seng and China's Shanghai Composite declined due to weak corporate earnings and economic headwinds. Australian shares ended modestly higher, supported by gains in energy and technology stocks despite losses in banking. The yuan strengthened to near a seven-month high following central bank intervention, while the U.S. dollar weakened on fiscal and trade jitters. Investors remained cautious as they awaited further updates on tariffs and assessed the impact of global political developments and rising COVID-19 cases in Southeast Asia. Overall, market sentiment was shaped by a combination of easing trade tensions with the EU, persistent U.S.-China disputes, and mixed corporate earnings reports.