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August 6, 2025 – 06:53

(Bloomberg) — Asian shares rose as carmakers in Japan gained on optimism that the country will be able to secure lower auto tariffs in negotiations with the US.

The MSCI Asia Pacific Index rose 0.3% with Japan’s Topix Index gaining 1%. Toyota Motor Corp., which reports earnings Thursday, jumped 2.2%. Oil rose for the first time in five days, while a gauge of the dollar dipped. Treasuries edged lower with the yield on the 10-year rising 1 basis point to 4.22%. Equity-index futures for the US and Europe advanced 0.3%.

Indian stocks were little changed after the central bank kept the benchmark interest rate steady, as policymakers assess the impact of US President Donald Trump’s tariff shock on the country. Asian chip-related stocks and some pharmaceutical companies fell after Trump said he will announce levies on the sectors “within the next week or so.”

Japan’s chief trade negotiator Ryosei Akazawa is heading to Washington as Tokyo aims to urge the US to proceed with a cut to car tariffs as promised in last month’s trade deal. Tariff headlines are once again dominating with Trump saying he was “getting very close to a deal” with China, and India bracing for pain from Trump’s threats.

“With Akazawa in the US, there’s hope of progress toward lower auto tariffs,” which is fueling gains in carmaker stocks, said Yutaka Miura, senior technical analyst at Mizuho Securities.

US stocks are consolidating after their recent rally amid concerns over the direction of interest rates and weak economic data. After a soft jobs data Friday, the latest economic indicators have since complicated the Federal Reserve’s balancing act between taming inflation and supporting growth.

The US services sector effectively stagnated in July as firms — faced with tepid demand and rising costs — reduced headcount. The data, released Tuesday, painted a picture of a sluggish service economy wrestling with the fallout of higher tariffs, cautious consumers and uncertainty stemming from Trump’s policies.

“Caution is the default for Asian markets,” said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Bank Ltd. Weaker US economic data “has the silver-lining of latent Fed dovishness to provide rates relief. And there are some parts of markets that appreciate that,” he said.

Asian chip-related stocks declined after a stream of negative news, including a Taiwanese probe into an alleged theft of Taiwan Semiconductor Manufacturing Co.’s trade secrets. Shares of the chipmaker fell 1.7% Wednesday.

Also, Advanced Micro Devices Inc. warned that its access to the crucial China market remains uncertain. Super Micro Computer Inc. tumbled after its results missed expectations.

Meanwhile, Trump also suggested he would impose increased tariffs on additional countries buying energy from Russia — including China — after saying earlier Tuesday that he would raise levies on Indian exports within 24 hours.

India is racing to contain the economic fallout from the threatened tariffs, which has left officials in New Delhi feeling unsure of how to respond.

In other tariff news, Swiss President Karin Keller-Sutter arrived in Washington to make a last-minute bid for a deal to lower the 39% tariff imposed last week by Trump.

Corporate News:

Cathay Pacific Airways Ltd. is poised to place an order for new aircraft from Boeing Co. for the first time in 12 years. OpenAI is in early talks about a potential secondary sale of stock for current and former employees at a valuation of about $500 billion. Advanced Micro Devices Inc. said the chipmaker’s return to the crucial China market is difficult to predict, overshadowing a generally upbeat forecast for its AI business. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 1:48 p.m. Tokyo time Japan’s Topix rose 1% Australia’s S&P/ASX 200 rose 0.6% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite rose 0.3% Euro Stoxx 50 futures rose 0.3% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1585 The Japanese yen rose 0.2% to 147.37 per dollar The offshore yuan was little changed at 7.1923 per dollar Cryptocurrencies

Bitcoin fell 0.2% to $113,407.11 Ether fell 0.1% to $3,571.2 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.22% Japan’s 10-year yield advanced two basis points to 1.485% Australia’s 10-year yield advanced three basis points to 4.26% Commodities

West Texas Intermediate crude rose 0.6% to $65.56 a barrel Spot gold fell 0.2% to $3,374.46 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Toby Alder, Winnie Hsu and Alice French.

(An earlier version was corrected for wrong labels in chart.)

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