Market Overview
Asian equity markets fell on Friday, 24 July 2026, after the United States implemented new tariffs on imports from 60 trading partners. The tariffs replaced temporary 10 % levies that expired overnight and cover nearly all U.S. imports, with exemptions for oil, gas and certain foodstuffs.
Index Performance
Japan's Nikkei 225 slipped 3.2 %, extending a three‑day losing streak, while South Korea's KOSPI dropped 5.8 %, erasing gains recorded earlier in the week following stronger‑than‑expected second‑quarter GDP data. Hong Kong's Hang Seng and mainland China's Shanghai‑Shenzhen CSI 300 each fell 1.3 %, Australia's S&P/ASX 200 lost 1.0 % and Singapore's STI slipped 0.5 %. The new tariff regime imposed effective rates of 10 % to 12.5 % on Japan, South Korea and Taiwan, adding fresh pressure to export‑driven economies.
Commodity and Inflation Context
Brent crude remained above US$100 per barrel after Iran‑backed Houthi attacks on Saudi oil tankers in the Red Sea heightened concerns over Middle‑East supply disruptions. Renewed U.S. strikes on Iran and President Donald Trump's threat of further military action revived inflation worries, as investors assessed the risk of prolonged energy‑shipping disruptions.
Corporate Earnings Impact
In the United States, Nasdaq‑100 futures rose 0.3 % and S&P 500 futures edged up 0.1 % following upbeat quarterly results from Intel, which provided limited support to markets. However, gains were constrained by sharp sell‑offs in Alphabet Inc. Class A (GOOGL) and Tesla Inc. (TSLA) after their earnings reignited concerns over escalating artificial‑intelligence spending.
Policy and Outlook
Japan's decline coincided with fresh inflation data showing resilient underlying price pressures, reinforcing expectations that the Bank of Japan will continue its gradual monetary tightening. South Korea's weakness was amplified by heavyweight chipmakers tracking the downturn in U.S. peers after cautious reactions to technology earnings.
China's CSI 300 rose approximately 3.2 % for the week, positioning to break a four‑week losing streak ahead of the Politburo meeting, where policymakers are expected to announce additional growth‑support measures after weaker second‑quarter data. DBS economist Samuel Tse said markets will look for stronger policy support for employment and household consumption, as well as details on the long‑term consumption strategy under the 15th Five‑Year Plan. State‑backed buying has helped underpin mainland equities in recent weeks.
In Australia, the ASX 200 remained confined to its 8,500‑9,000 trading range despite stronger labour‑market data. Attention now turns to next week’s second‑quarter inflation report and comments from Reserve Bank of Australia Governor Michele Bullock, which could provide clues on the policy outlook.
The Monetary Authority of Singapore will commence a busy week for regional central banks on Monday. Citi maintains a non‑consensus view calling for a 50‑basis‑point steepening of the Singapore dollar nominal effective exchange‑rate (NEER) policy band, citing higher energy costs and resilient core inflation despite recent softer readings.
Looking ahead, investors will monitor China’s July manufacturing PMI for fresh clues on factory activity, Taiwan’s upcoming export‑driven GDP growth figures, and South Korea’s July trade data, which will offer an early read on regional demand after June’s stronger‑than‑expected export performance.