Asian shares mostly fell Monday as the Trump administration stepped up pressure on trading partners to quickly make new deals before a Wednesday tariff deadline, with plans for the United States to start sending letters warning countries that higher tariffs could kick in Aug. 1. Japan’s Nikkei 225 shed 0.5% to 39,628.41 while Hong Kong’s Hang Seng index lost 0.4% to 23,824.18. South Korea’s KOSPI index edged down 0.1% to 3,053.55 while the Shanghai Composite Index slid 0.2% to 3,464.78. Australia's S&P ASX 200 fell 0.3% to 8,576. Oil prices also fell after OPEC+ agreed on Saturday to raise production in August by 548,000 barrels per day, accelerating output increases since oil prices jumped, then retreated, in the aftermath of Israel and U.S. attacks on Iran. U.S. benchmark crude was down 92 cents to $66.08 per barrel. Brent crude, the international standard, shed 96 cents to $67.65 per barrel. The futures for S&P 500 and Dow Jones Industrial average were both 0.4% down.
“We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” the Nomura Group wrote in a commentary.
