China's ChiNext Index fell more than 2%; Shenzhen Component Index fell 1.6%; Shanghai Composite fell 0.9%; Sci‑Tech Innovation Board 50 Index fell more than 1%.

Chinese and EU teams held intensive talks this week to prepare the inaugural China-EU trade and investment consultation meeting. EU negotiators reportedly showed little willingness to compromise and are preparing additional protectionist measures even as talks proceed, raising the risk of a sudden escalation in China-EU trade tensions. China says it remains committed to dialogue but is ready to launch firm, necessary countermeasures at any time. EU officials also signalled that bilateral consultations will not limit use of existing trade instruments or development of new ones, suggesting further deterioration in economic and trade ties may be likely.

Japan's Tokyo CPI (not seasonally adjusted) was 0.0% MoM in June; May +0.3%.