Asian Stocks Slip as Tariff Worries Resurface; Earnings from Tesla, Alphabet in Focus – Asia Market Wrap

Asian shares declined on renewed concerns about tariffs and as investors awaited earnings from megacap companies this week for clues on how corporations are withstanding the levies.

The MSCI Asian stock gauge dropped 0.4%, after gaining in the morning. Japanese stocks retreated on worries about fiscal spending with the setback of Prime Minister Ishiba’s coalition in the weekend elections. The yen edged lower and Japan’s 40-year bond yield rose.

Treasuries inched up ahead of speeches from Federal Reserve officials including Jerome Powell. Oil extended its losses. Equity-index futures for Europe fell 0.5% while contracts for the S&P 500 fell 0.1% after the gauge closed at a record.

Concerns about trade deals before the Aug. 1 deadline and the ability of companies to withstand the tariff war are testing the strength of markets to extend their record run. Stocks have surged from their slump in April as fund managers lean harder into the rally in risk assets. That run faces a key test this week as companies such as Tesla Inc. and Alphabet Inc. report earnings.

President Donald Trump may issue more unilateral tariff letters before Aug. 1, White House Press Secretary Leavitt said. More trade deals may also be reached before the deadline, she added.