Asian markets slip amid looming trade deadline; Sensex plunges 300 points

The market sentiment in Asian markets remained subdued on Wednesday as most of the indices ended the day in red amid the looming July 9 trade deadline by US President Donald Trump.

Although the Trump administration has indicated that the trade deadline can be extended, investors prefer to stay cautious.

The market mood was also swayed in part by the US Senate’s tight approval of President Trump’s sweeping budget bill.

The promise of extended tax cuts sparked some optimism, but that was quickly dampened by concerns the legislation could pile on nearly $3 trillion to the national debt.

Japan’s Nikkei 225 end in red for second consecutive session

This week, President Donald Trump took aim at Japan, criticizing its stance on US rice and auto exports.

Following the remarks, Japanese stocks closed lower for the second consecutive day on Wednesday, with declines in the Paper & Pulp, Transport, and Communication sectors dragging the market down.

The Nikkei 225 slipped 0.58% by the end and was trading at 39,762.48.

Hong Kong markets started the second half of the year on a strong footing, but gains were partially cut short as tech stocks came under pressure.

The Hang Seng Index climbed as much as 300 points earlier in Wednesday’s trade before giving up some of that ground to close 149 points higher, or 0.62% up, at 24,221.

KOSPI slips on profit booking

South Korea’s KOSPI fell 1.5% to around 3,050 on Wednesday, retreating from its highest point in over three years as investors took profits following a sharp rally.

Sentiment turned cautious after June’s consumer price index came in at 2.2% year-on-year, slightly above expectations, suggesting inflationary pressures persist, even after the Bank of Korea’s fourth straight interest rate cut.

In China, the CSI 300 index traded sideways for most of the day but managed to end slightly in the green, posting a modest gain of 0.023% to close at 3,943.68.

Meanwhile, Australia’s S&P/ASX 200 also showed little movement and finished the session at 8,597.70.

Nifty 50 slips below critical 25,500 level

Indian markets ended lower on July 2, with the Nifty slipping below the key 25,500 mark.

The Sensex lost 287.60 points, or 0.34%, to settle at 83,409.69, while the Nifty fell 88.40 points, or 0.35%, to close at 25,453.40.

Market breadth remained negative, with 1,716 stocks advancing, 2,125 declining, and 167 remaining unchanged.

Among the biggest drags on the Nifty were Shriram Finance, Bajaj Finserv, IndusInd Bank, HDFC Life, and L&T.

On the flip side, gains in Tata Steel, JSW Steel, UltraTech Cement, Maruti Suzuki, and Asian Paints provided some support.

Metals outperformed, climbing 1.4%, followed by consumer durables, which rose 1%.

However, selling pressure weighed on PSU banks, capital goods, realty, media, and power stocks, all of which fell between 0.4% and 1.4%.

The broader market also softened, with the BSE Midcap and Smallcap indices down 0.2% each.

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