Japan’s manufacturing sector expanded in June for the first time in 13 months led by an upswing in output, but overall demand remained weak as new orders shrank yet again amid uncertainty over US tariffs, a private sector survey showed on Tuesday.

Most Asian stock markets rose on Tuesday, with South Korea leading gains following Wall Street’s record highs, while Japan’s Nikkei slipped after U.S. President Donald Trump threatened fresh tariffs against Tokyo.

The global economy is expected to experience a slight slowdown in growth over the next couple of years, according to a new outlook from Capital Economics.

Goldman Sachs on Monday raised its projection for U.S. interest rates in 2025 to three-quarter-point cuts because of muted tariff effects and labor market weakness.

The tariffs introduced as part of the Trump’s administration’s trade policies have created all kinds of oddities in the global data, and UBS has dissected the impact on global confidence and growth. 

Oil prices fell 1 per cent on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August boosted the supply outlook.