Singapore, July 17: Asia-Pacific markets closed mostly lower on Wednesday following the announcement of a preliminary trade deal between the United States and Indonesia, which includes a proposed 19% tariff on Indonesian exports to the U.S.
The agreement, confirmed by U.S. President Donald Trump on Tuesday, sparked regional market jitters, despite a modest uptick in Indonesian equities. Trump’s announcement came alongside comments that previously stalled cryptocurrency regulation bills now have enough votes to advance.
South Korea’s Kospi led regional losses, falling 0.9% to close at 3,186.38, while the Kosdaq index ended flat at 812.23. In Australia, the S&P/ASX 200 declined 0.79% to finish at 8,561.8. Japan’s Nikkei 225 ended unchanged at 39,663.4, while the broader Topix dropped 0.21% to 2,819.4. Mainland China’s CSI 300 also edged down 0.3% to 4,007.20.
Indonesian stocks managed marginal gains following the announcement. President Prabowo Subianto confirmed he held a “very good call” with Trump but did not clarify the specifics of the agreement or the tariff rate.
“Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit between our two great nations,” Prabowo wrote in an Instagram post, adding that Trump had extended warm regards to the people of Indonesia.
Meanwhile, Asian chip stocks extended gains after the U.S. lifted certain export curbs to China, boosting investor sentiment in the tech sector.
Central banks across emerging and developing economies are increasingly purchasing locally mined gold to bolster reserves without draining foreign currency holdings, the World Gold Council said.
Countries such as the Philippines and Ecuador have long used this strategy, but more central banks are now considering or expanding similar efforts to support domestic industries and stabilize reserves.
Spot gold prices climbed to $3,328.3 per ounce, marking a 27% gain year to date, according to data from LSEG. Analysts attribute the surge to ongoing geopolitical tensions and weakening confidence in traditional safe-haven assets.
“Gold remains the top choice for central banks seeking to shield themselves from currency volatility and geopolitical shocks,” one analyst said. Investors globally continue to monitor trade developments, monetary policy shifts, and geopolitical risk factors influencing market sentiment across both equity and commodities markets.
