Apr 07 ,2025
Synopsis:
Asian markets set for mixed start to Tuesday trade. Nikkei futures pointing to opening rebound while Hang Seng futures remained lower. ASX tracking for mild opening gains. S&P 500 and Nasdaq futures up 1% afterhours. Australian bonds under pressure, tracking earlier Treasury curve bear steepening. In FX markets Aussie extending gains vs dollar while yen weakness the big story overnight. Crude, gold and copper all extending rebound from Monday lows. Bitcoin continues recovery from lows.
Another volatile offshore session that saw US markets swing wildly (VIX hit Mar-2020 Covid highs) following report (and later denial) of 90-day tariff delay, mixed messaging on negotiations, and Trump's threat of additional tariffs on China. Bonds similarly volatile amid ongoing stagflation debate with Treasury yields registering largest intraday rebound since Mar-2020. Economists voicing concerns about recession while rise in short-term inflation expectations also limiting market-implied Fed rate cut odds.
US-China trade tensions continue to ratchet higher after Trump threatened additional 50% tariffs unless Beijing removes its retaliatory 34% levies. Nasdaq Golden Dragon index fell another 5% overnight following Monday's plunge that wiped out most of preceding tech-led rally. Sell-side firms downgraded outlook for Chinese growth and equities amid the turmoil. Focus now on China's policy response with press flagging accelerated stimulus rollout. However, hopes for negotiations fading rapidly after Trump warned US will cut off future talks unless Beijing backs down.
On Monday Trump repeated he is open to negotiations though unclear to what extent. Treasury Secretary Bessent tasked with leading negotiations with Japan though at same time Trump took issue with Japan's trade barriers while he and Navarro warned tariff concessions from likes of EU and Vietnam won't be enough. Fits with White House pattern of mixed messages on trade clouding prospect of de-escalation, particularly with Trump again voicing desire to rebalance trade and bring in additional revenue.
Pre-open Company News:
500228.IN -- JSW Steel reports Q4 consolidated crude steel production 7.63M tonnes vs year-ago 6.79M tonnes
500470.IN -- Tata Steel reports provisional Q4 figures
6274.TT -- Taiwan Union Technology reports March revenue NT$2.19B, +25.33% y/y
2449.TT -- King Yuan Electronics reports March revenue NT$2.64B, +24.3% y/y
3017.TT -- Asia Vital Components reports March revenue NT$8.51B, +67.5% y/y
19.HK -- Swire Pacific releases sustainability report
535.HK -- Gemdale Properties & Investment reports March aggregate contracted sales CNY943M; StreetAccount notes the year-ago figure was CNY1.81B
2196.HK -- NMPA approves trial of Fosun Pharmaceutical unit's CMC-2310 for schizophrenia in people aged 13 years and above
2196.HK -- Shanghai Fosun Pharmaceutical (Group) Co. releases sustainability report
1918.HK -- Sunac China Holdings reports March contracted sales value CNY1.46B; StreetAccount notes the year-ago figure was CNY3.51B
81.HK -- China Overseas Grand Oceans Group reports March contracted sales CNY2.56B, (24.1%) y/y
1766.HK -- CRRC Corp. guides Q1 net income attributable CNY2.82-3.23B vs year-ago CNY1.01B
On Deck:
China:
Economic:
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: M2 NSA Y/Y; consensus +7.1%
08:00 CST: New Yuan Loans; consensus
Earnings:
Hygon Information Technology (688041.CH)
Japan:
Earnings:
Sakata Seed (1377.JP), PAL GROUP Holdings (2726.JP), Daiseki (9793.JP)
Australia:
Economic:
11:30 AEST: NAB Business Confidence; consensus
Indonesia:
Economic:
11:00 SAST: CPI NSA Y/Y; consensus +1%
Taiwan:
Economic:
16:00 TST: CPI NSA Y/Y; consensus +2%
Philippines:
Earnings:
Citicore Renewable Energy (CREC.PM)
Market Data:
Gold (Jun 25): +$23.40 or +0.79% to $2997.00
WTI Crude (May 25): +$0.55 or +0.91% to $61.25
$-¥: +0.90 or +0.62% to 147.8930
$-KRW: +10.44 or +0.72% to 1469.9500
A$-$: (0.00) or (0.70%) to 0.6000
$-INR: +0.39 or +0.46% to 85.8536
$-CNY: +0.03 or +0.36% to 7.3076
If you would like to receive the Asian Market Preview daily, please search for Asia Pre-Market Updates in Alert Manager.
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE