Asia markets mixed, following Wall Street's decline on weak U.S. jobs report and U.S. tariff announcement

Asia shares trade mixed on Monday, tracking the sell-off on Wall Street last Friday, dragged lower after President Trump announced a new round of reciprocal tariffs ranging from 10% to 41% on numerous trade partners.

Gold prices edged down to around $3,350 per ounce on Monday, as investors took profits after prices rose the most in two months on Friday.

Japan ( NKY:IND ) fell 1.39% to below 40,000 and the broader Topix dropped 1.8% to 2,895 on Monday, with both indexes hitting near two-week lows.

The Japanese yen weakened toward 148 per dollar on Monday, pulling back after last session’s gains as investors reassessed the US Federal Reserve’s policy trajectory.

Japanese Prime Minister Shigeru Ishiba said the government is prepared to compile an extra budget to mitigate the economic impact of U.S. tariffs, acknowledging mounting political pressure after his coalition’s recent upper house election loss.

“We will compile one if necessary, taking into account discussions with other parties,” Ishiba told parliament Monday.

Meanwhile, markets are awaiting minutes from the Bank of Japan’s latest policy meeting for clues on the timing of a potential rate hike.

China ( SHCOMP ) rose 0.18% toward 3,570 while the Shenzhen Component slipped 0.2% to 10,970 on Monday, as Chinese equities struggled for clear direction amid lingering economic and policy concerns, and the offshore yuan held its recent gains to around 7.19 per dollar on Monday, after the People's Bank of China announced the formation of a new macroprudential and financial stability committee.

China will hold its fourth key conclave in October, likely focusing on the next five-year plan, according to Xinhua News.

The announcement follows a recent Politburo meeting where leaders pledged to address mounting economic risks, including deflation, industrial overcapacity, and a prolonged property slump.

China is set to crack down on “herd behavior” in investments across emerging sectors and tighten oversight of local government investment promotions, according to the National Development and Reform Commission (NDRC).

Markets also turn to trade and inflation data, amid concerns over a US-China tariff truce still awaiting final approval.

Hong Kong ( HSI ) rose 0.62% to 24,607 in Monday morning deals, snapping a four-day losing streak amid broad-based gains led by property and tech sectors.

India ( SENSEX ) rose 0.12% to 80,748 in morning trade on Monday, erasing losses from the previous two sessions, mainly supported by gains in the metals, auto, and manufacturing sectors.

Markets continued to monitor developments in US trade policy, as India plans to continue purchasing oil from Russia despite threats of penalties from US President Trump, according to Reuters.

Trump had warned of additional penalties over Russian oil and arms purchases, alongside a new 25% tariff on Indian exports.

Australia ( AS51 ) fell 0.04% down by 0.2% to 8,642 on Monday, extending losses from the previous week.

The Australian dollar strengthened to around $0.647 on Monday, extending gains from the previous session, as market sentiment remained upbeat following Australia’s exemption from the latest round of US tariff hikes.

Australia’s Monthly Inflation Gauge by the Melbourne Institute climbed 0.9% in July 2025—the largest monthly increase since December 2023—up from a 0.1% rise in the previous month.

Investors now turn their attention to upcoming PMI figures for clearer signals on the economy’s outlook.

In the U.S., on Friday, all three major indexes ended in red as investors reacted to a weak July jobs report and a fresh round of tariffs announced by President Trump.

U.S. stock futures sees a modest rebound on Monday following Wall Street’s sharp drop Friday on weak jobs data: Dow +0.31% ; S&P 500 +0.36% ; Nasdaq +0.42% .

Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ).

More on Asia: Australia's Q2 producer price index rises 0.7%, following soft consumer inflation report China's manufacturing sector contracts unexpectedly in July to 49.5 Japan's manufacturing sector shrinks in July to 48.9, unemployment holds steady Australia's factory growth eases to 51.3 in July, despite stronger production Gold rush in China: Households are piling into the safe-haven asset, Apollo says.