Asia Stocks Decline Amid Trade Uncertainty, Oil Prices Drop

Asian equities faced downward pressure as trade negotiations stalled and oil prices retreated on supply concerns. Tokyo's Nikkei 225 slipped 0.5%, while South Korea's KOSPI remained flat. The MSCI Asia-Pacific ex-Japan index declined 0.6%, with China's CSI 300 dropping 0.5%.

European futures signaled cautious opening, with EURO STOXX 50 futures down 0.1% and FTSE futures dipping 0.2%. Market uncertainty grew after President TRUMP announced impending tariff increases set for August 1, without specifying affected countries.

The Reserve Bank of Australia is widely expected to implement a 25 basis point rate cut to 3.60% at its Tuesday meeting, which WOULD mark the third consecutive reduction. Trade policy unpredictability continues to weigh on global growth prospects and central bank decisions.