Asia-Pacific markets set to open mixed as investors assess Trump's 'done' deal with China

CNBC

a day ago

Hong Kong. Kowloon. Busy street in Mong Kok District.
Acavalli | E+ | Getty Images
Asia-Pacific markets were set to open mixed as traders assessed U.S. President Donald Trump's declaration that a trade deal with China was "done."
Chinese imports would invite 55% tariffs, Trump suggested. Commerce Secretary Howard Lutnick confirmed that tariffs on China will stay at that level.
Japan's benchmark Nikkei 225 was set to open lower, with the futures contract in Chicago at 38,330 while its counterpart in Osaka last traded at 38,400 compared with the index's last close of 38,421.19.
Futures for Hong Kong's Hang Seng index last traded at 24,252, pointing to a weaker open compared to the HSI's last close of 24,366.94.
Australia's S&P/ASX 200 was set to start the day higher, with futures tied to the benchmark at 8,622, compared to the index's close of 8,592.1 in the previous session.
Traders will be looking toward a slate of inflation data coming out of the Philippines and Thailand later in the day.
U.S. stock futures fell as traders weighed a preliminary U.S.-China trade agreement and new inflation data. S&P 500 futures traded down 0.2%, along with Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average were also lower by 72 points, or 0.2%.
These moves come after U.S. consumer prices rose less than expected in Ma. The consumer price index climbed 0.1% for the month, compared with the Dow Jones forecast for a 0.2% rise. Core CPI, which excludes food and energy prices, also rose less than expected.
Overnight stateside, all three key benchmarks closed lower. The market's recent run higher took a breather as major indexes ended the session near previous closing levels.
Trump said earlier in a Truth Social post that the deal with China was "done, subject to final approval with President Xi and me."
As part of the deal framework, he said that magnets and "any necessary rare earths" will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities, adding that "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%."
— CNBC's Brian Evans, Pia Singh, Sean Conlon contributed to this report.
U.S. crude oil futures rose more than 4% Wednesday on escalating tensions in the Middle East.
Brent crude futures rose $2.90, or 4.34%, to close at $69.77 barrel. U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to settle at $68.15.
The U.S. is preparing a partial evacuation of its embassy in Iraq due to heightened security risks in the region, sources told Reuters. The U.S. military has authorized the "voluntary departure" of troops' dependents from the Middle East due to rising tensions with Iran, sources told the Associated Press.
— Spencer Kimball
The widely followed $39 billion 10-year Treasury auction provided some relief to investors who have been worried about global demand for the government asset.
The yield of 4.221% came in 7 basis points below the level when issued. Meanwhile, the level of direct and indirect bidding took control 91% of the auction, a similar pace last month but the most since February 2023, according to Peter Boockvar, chief investment officer of Bleakley Financial Group.
However, the bid to cover of 2.52 came in below the previous 12 month average of 2.57, marking the second weakest since October 2024.
"The 10 yr note auction was somewhat of a mixed bag but more good than not," Boockvar said.
Nonetheless, BMO's called the auction a "strong" one as demand Treasurys remains solid in the uncertain macro environment.
— Yun Li