Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei +1.18%, Hang Seng +2.40%, Shanghai Composite +0.76% as of 04:10 ET

Apr 14 ,2025

• Synopsis:

  • Asian equites ended higher almost everywhere Monday. The Hang Seng led the region with strong gains in its growth stocks while mainland China boards are also moderately higher. Japan, Australia and South Korea advanced but Taiwan just dipped into the red at the close. Southeast Asia was also slightly higher. India closed for a holiday. US futures trading higher, Europe opened with very strong gains. US dollar back at its three-year low, yen strengthened alongside AUD and NZD. Treasuries and JGBs mixed. Crude oil, precious metals unchanged, base metals mixed as copper trades higher but iron ore is lower. Cryptocurrencies higher.

  • Hong Kong equities led the region higher after the US said electronics imports from China would receive an exemption from the its new tariffs, and despite President Trump saying new sectoral tariffs covering electronics would come post a national security probe. Analysts pinpointed several Asia-based semiconductor names as potential beneficiaries of the move especially those in the Apple supply chain such as Hon Hai. Balancing this, Trump's promise of new semi tariffs weighed on several names including TSMC.

  • In other developments, China exports grew by more than expected but reflected strong frontloading ahead of US tariffs while imports contracted further. China credit rose by more than expected partially reflecting increased bond issuance. Singapore's MAS eased monetary policy as expected by reducing the rate of permitted exchange rate appreciation. It also reduced its forecast for FY growth amid US tariff headwinds and separate data showed Q1 GDP growth slowed by more than forecast.

  • Sony Group (6758.JP) will raise the price of its new PS5 console in Europe and Australia by around 25% ahead of the a likely tariff-based increase in the US. Jingye Group (600768.IN) lost control of its UK-based steel business after the UK government passed emergency legislation Saturday to nationalize the company. An Italy-based conglomerate TiL is emerging as favorite to purchase 43 ports from CK Hutchison (1.HK), excluding two Panama ports being sold to BlackRock.

• Digest:

  • Trump to provide update on chip tariffs Monday:

    • US President Trump told reporters Saturday on Air Force One that he will provide an update on his administration's approach to semiconductor tariffs on Monday (Reuters). Clarified in a Truth Social comment that Friday's chip exclusion from the reciprocal 10% blanket tariff and the 125% tariff on China only presages separate levies on semiconductors and the whole electronics supply chain to be examined in the upcoming National Security Tariff Investigations. Stressed that "nobody is getting off the hook," naming China multiple times. Bloomberg suggested the move portends weeks or even months before the electronics tariff is implemented -- Commerce Secretary Lutnick told ABC's "This Week" that it will likely come in a month or two -- and the level is almost certain to be lower than the 125% rate on China, another level of reprieve that constitutes a temporary victory for Apple (AAPL) and other companies with major production operations in China. Lutnick added the goal is still to facilitate onshoring of chips and flat panels, and US can't be reliant on Southeast Asia. White House trade adviser Navarro on NBC's "Meet The Press" Sunday listed UK, EU, India, Japan, South Korea and Israel as among the countries in negotiations. China wasn't named, though an invitation has been opened while adding criticism over its role in fentanyl trafficking as well as taking American factories and jobs.

  • Big beat in China exports amid tariff front-loading:

    • Dollar-denominated exports rose 12.4% y/y in March, well above consensus 4.6%, following 2.3% in Jan-Feb. In contrast, imports fell 4.3%, more than expectations of a 2.1% decline, after dropping 8.4% in Jan-Feb. All the attention on export strength, put down to front-loading ahead of the implementation of US reciprocal tariffs (Bloomberg, Reuters). According to Bloomberg calculations, exports to US rebounded 8.8% in March from a more than 11% slide in February. Recall that official data combined Jan-Feb to smooth out LNY effects. Article added that momentum provided support for Q1 economic growth, though stands to be short-lived amid the developing trade war with US. Fallout likely to be felt from this month with little sign either side is willing to back down and lower tariff rates. Recall that President Trump has expressed optimism that bilateral talks will be held at some point for a deal, though latest weekend rhetoric singled out trade imbalances with China. Beijing also dug in as the Commerce Ministry on Sunday called for a complete removal of US reciprocal tariffs, noting the electronics exemptions constitutes a "small step" in correcting course (Xinhua) after having vowed to "fight to the end" if US insists on escalating the trade war. Yet, customs official said at a news conference that "the sky won't fall for exports" as China has made steady progress in diversifying export markets and enhanced resilience (Xinhua).

  • China-based ETFs receive record inflows as state backers shield market from tariffs:

    • Bloomberg reported China-listed equity ETFs received almost $24B in net inflows over last week, setting new record from October's $23B. Most of purchases came Monday and Tuesday, some net outflow in second half of week. Article noted bulk of purchases went into ETFs known to be favored by country's 'national team' state owned banks. Purchases come week after PBOC said it would provide sufficient liquidity to Central Huijin Investment, which calls itself a 'stock stabilization fund'. Article cited analyst saying intervention by fund likely to be start of significant program in stock markets over next few weeks as US tariffs begin. Added portion of buying could be linked to retail investors as several ETFs saw inflow but have not been part of stabilization programs in past. Mainland China's benchmark indexes outperformed the Hang Seng last week although all major indexes fell w/w following last Monday's rout.

  • US and China locked in trade standoff that risks escalating:

    • Escalation of US-China trade war generating more discussion about economic decoupling. Washington Post highlighted how aggressiveness of tariffs caught Beijing off-guard after earlier attempts to engage with administration officials. Reuters sources described how this prompted Beijing to pivot to 'wartime' posture involving an all-government effort to fight back against tariffs. Part of China's strategy involves corralling other nations against US with President Xi embarking on a visit to SE Asia (Reuters). However, Treasury Secretary Bessent signaled similar approach by US against China, last week warning other nations that attempts to align with China would backfire. With China bracing for an extended confrontation after vowing to fight until the end, Washington Post sources noted officials have readied further measures including industry-specific tariffs and restrictions on US firms. Politico also highlighted how prior to April tariffs China had worked to restrict imports of US agriculture and energy to inflict political pain. Risk that standoff could escalate beyond trade with NY Times discussing national security concerns within Trump administration about China potentially accelerating Taiwan invasion plans or cutting off rare earths exports to US.

  • Singapore eases monetary settings, cuts growth forecast as tariffs impact economy:

    • The Monetary Authority of Singapore (MAS) reduced slope of Singapore dollar nominal effective exchange rate (S$NEER), effectively easing monetary policy as country faces slowing economic growth amid US tariffs. Easing was expected by most economists polled by Reuters and Bloomberg. Authority also lowered its FY headline inflation expectations to 0.5-1.5%, core inflation to 0.5-1.5%. Said external environment "remains uncertain", downside risks to Singapore's economic outlook from financial market volatility, sharper-than-expected fall in overseas final demand (BusinessTimes). Authority joins central banks in New Zealand, India and Philippines that all eased policy last week. Separate data Monday showed Singapore economy grew 3.8% in Q1 versus 5.0% in Q4-24 and below FactSet consensus of 4.2%. On q/q basis GDP contracted 0.8% from 0.5% growth in Q4-24.Ministry of trade and industry also lowered FY GDP forecast range to 0-2.0% from 1.0-3.0% previously (BusinessTimes).

  • Notable Gainers:

    • +9.7% 9688.HK (ZAI Lab): says it complies with the HFCAA; not subject to delisting

    • +6.0% 082640.KS (TONGYANG Life Insurance Co.): FSC to grant conditional approval for Woori Financial's acquisition of Tongyang, ABL Life

    • +5.7% 1339.HK (People's Insurance Co. (Group) of China): guides Q1 net profit attributable CNY11.65-13.45B vs year-ago CNY8.96B

    • +2.9% 2328.HK (PICC Property & Casualty): guides Q1 net income +80-100% y/y

    • +1.5% 068270.KS (Celltrion): obtains FDA approval for interchangeability status for Uplyma (CT-P17, Humira Biosimilar)

  • Notable Decliners:

    • -4.0% 8267.JP (AEON Co.): guides FY net income attributable ¥40.00B vs FactSet ¥45.03B

    • -2.7% 2330.TT (Taiwan Semiconductor): Trump signals new tariffs on chips, calling exclusions temporary

• Data:

  • Economic:

    • China March

      • Trade balance $102.6B vs consensus $74.7B and $170.5B in Jan-Feb

        • Exports +12.4% y/y vs consensus +4.6% and +2.3% in Jan-Feb

        • Imports (4.3%) y/y vs consensus (2.1%) and (8.4%) in Jan-Feb

    • Japan February

      • Final industrial production +2.3% m/m vs preliminary +2.5% and (1.1%) in prior month

        • Operating ratio (1.1%) m/m vs +4.5% in prior month

        • Production capacity (2.2%) y/y vs (1.9%) in prior month

    • Singapore Q1

      • GDP +3.8% y/y vs consensus 4.2% and 5.0% in prior quarter

  • Markets:

    • Nikkei: 396.78 or +1.18% to 33982.36

    • Hang Seng: 502.71 or +2.40% to 21417.40

    • Shanghai Composite: 24.58 or +0.76% to 3262.81

    • Shenzhen Composite: 21.71 or +1.15% to 1903.49

    • ASX200: 102.10 or +1.34% to 7748.60

    • KOSPI: 23.17 or +0.95% to 2455.89

    • SENSEX: Closed

  • Currencies:

    • $-¥: (0.54) or (0.37%) to 142.9870

    • $-KRW: (2.72) or (0.19%) to 1418.5000

    • A$-$: +0.00 or +0.55% to 0.6325

    • $-INR: (0.07) or (0.08%) to 86.0161

    • $-CNY: +0.01 or +0.15% to 7.3027