Asian stock markets saw mixed results on Wednesday, largely driven by trade war anxieties after U.S. President Donald Trump indicated he would not extend next weeks tariff deadline.
Tokyos market was particularly affected by Trumps threats to significantly increase duties on Japanese goods.
Market sentiment was also influenced by the U.S. Senates narrow approval of President Trumps major budget bill. While the extension of substantial tax cuts brought some optimism, warnings that the bill could add roughly 3 trillion to the national debt tempered enthusiasm.
With only a week left until Trumps 90-day pause on reciprocal tariffs expires, few governments have secured deals to avoid these taxes, although White House officials claim several are in progress.
Investors had largely anticipated a postponement of the July 9 deadline or an extension for countries to finalise agreements. However, Trump stated on Tuesday that he was not thinking about the pause and reiterated his threat to end negotiations or impose higher duties.