Trade Tensions Rise as Tariff Decision Looms

Asian stock markets experienced a downturn on Monday, influenced by the ambiguity surrounding U.S. tariff policies. While officials hinted at delays, detailed information on these changes was absent, causing economic uncertainty. Concurrently, oil prices dropped due to OPEC+ increasing production more than anticipated.

President Donald Trump announced that new tariff notifications would be sent to several nations, with elevated rates effective from August 1. Analysts suggest this move could escalate trade tensions, affecting bilateral negotiations with major partners like the EU, India, and Japan, potentially risking U.S. growth and inflation.

Investor sentiment wavered amidst these developments. Major futures indices, such as the S&P 500 and Nasdaq, showed slight decreases. Safe-haven assets, including Treasury yields, gained traction, reflecting market caution. As the dollar showed mixed reactions, further rate cuts by international central banks could loom.

(With inputs from agencies.)