Closing Bell 31st July: ASX Edges Lower as Commodities Weigh, Beach Energy and Flight Centre Slide

Asia-Pacific Markets Retreat as BoJ Holds Rates, Trade Tensions Rise

Asia-Pacific markets mostly declined on Thursday as investors digested the Bank of Japan’s decision to hold short-term interest rates steady at 0.5% for the fourth consecutive meeting. The move, while widely expected, signaled the central bank’s cautious stance amid growing global uncertainty.

The Japanese yen strengthened, and government bond yields climbed following the decision. Capital Group’s Hiroaki Amemiya described the BoJ’s position as a “delicate balancing act,” highlighting rising domestic wages and consumption as positives, despite headwinds from U.S. tariffs.

Market sentiment was also weighed by heightened trade tensions, with the U.S. imposing blanket 15% tariffs on South Korean imports and 25% duties on goods from India. South Korean auto stocks dropped sharply, with Kia falling 5.25% and Hyundai Motor down 3.48%.

In contrast, Hanwha Ocean surged over 16%, hitting its highest level since 2015, following news of a potential U.S.-Korea trade deal and planned investments at its U.S.-based shipyard.

Meanwhile, Samsung Electronics rose modestly despite missing Q2 profit expectations. Chinese and Hong Kong markets opened lower, with the Hang Seng down 0.91%.