On July 1, 2025, Asian stock markets showed mixed results due to rising trade tensions between the United States and Japan. The Nikkei in Tokyo fell after President Trump threatened tariffs on Japanese exports. The Hang Seng Index in Hong Kong saw a significant rebound.
The Hang Seng Index had its best performance in seven years. The Nifty 50 in India is expected to reach record highs in July. In June, the Nifty 50 gained 2.9%. South Korea's KOSPI index rose to its highest in 11 months.
President Trump threatened new tariffs on Japan over rice and automotive exports. Japanese Prime Minister Shigeru Ishiba urged the U.S. to reconsider these threats. The trade tensions have increased volatility in Asian markets.