MANILA, Philippines — Asian shares retreated on Friday after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks helped offset a steep tumble for EV-maker Tesla.
Japan’s Nikkei 225 fell 0.7% to 41,511.09 after two days of gains following President Donald Trump’s announcement of a trade deal that would place a 15% tax on imports from Japan. That’s lower than the 25% rate that Trump had earlier said would kick in on Aug. 1.
Data released on Friday showed the inflation rate in Japan’s capital Tokyo rose 2.9% year-on-year in July, down from 3.1% in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation.
In the Chinese markets, Hong Kong’s Hang Seng shed 1.1% to 25,383.07 and the Shanghai Composite index slid 0.3% to 3,593.38.
On Thursday, China and the European Union issued a joint call to action on climate change during an otherwise tense bilateral summit in Beijing riven with major disagreements over trade and the war in Ukraine.
Next week, U.S. Treasury Secretary Scott Bessent has said he will meet with Chinese officials in Stockholm, Sweden, to work toward a deal with Beijing ahead of a tariff truce that expires on Aug. 12. Trump has said a China trip “is not too distant” as trade tensions ease.
“One big question for markets is whether the tariff ceasefire is extended. We expect that an agreement will be attainable, but, in t