Asian markets mostly traded lower on Wednesday, as investors grew cautious ahead of the upcoming U.S. tariff deadline on July 9. Japanese equities led regional losses following President Donald Trump’s remarks casting doubt on a potential trade agreement with Tokyo.

U.S. markets closed mixed overnight, with the S&P 500 and NASDAQ Composite retreating due to weakness in technology stocks. Futures showed little movement during Asian trading hours.

Trump Reaffirms Tariff Deadline, Questions Japan Deal

On Tuesday, President Trump reiterated that the July 9 deadline for concluding trade deals with the U.S. would not be extended. Countries failing to reach agreements by then will receive formal notifications of the tariff rates to be imposed, he said.

Trump also expressed skepticism over a possible deal with Japan, warning that tariffs on Japanese imports could reach 30–35%.

Reacting to the uncertainty, Japan’s Nikkei 225 fell 1%, while the broader TOPIX index declined by 0.5%.

U.S.-India Trade Talks Show Progress

While negotiations with Japan appear uncertain, U.S. Treasury Secretary Scott Bessent stated that talks with India are making headway, with an interim deal reportedly close to completion.

South Korea, China Markets Also Slide

Broader regional sentiment remained fragile. South Korea’s KOSPI index led losses with a 1.5% drop, dragged lower by a 4% slump in chipmaker SK Hynix (ASX:QAN).

China’s Shanghai Composite edged down 0.1%, while the CSI 300 was little changed. Hong Kong’s Hang Seng Index, returning from a holiday, rose 0.5% in catch-up trading.

Last week, Trump announced a finalized trade agreement with China, following discussions at the Geneva meeting.

Singapore, India Steady; Australia Edges Higher on Retail Data

Singapore’s Straits Times Index gained 0.4%, while India’s Nifty 50 futures remained largely flat.

In Australia, retail sales data showed a modest recovery in May. Sales rose 0.2% month-on-month, following a 0.1% decline in April, though the figure missed expectations of 0.3% growth. A decline in food spending offset gains in apparel.

The S&P/ASX 200 rose 0.3%, but Qantas Airways Ltd (ASX:QAN) dropped over 4% after confirming a data breach at its contact centre, which compromised customer information.

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