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StreetAccount Summary - Asian Market Recap: Hang Seng +0.16%, Shanghai Composite (0.05%), Kospi +0.65% as of 04:10 ET

Apr 29 ,2025

• Synopsis:

  • Asia equities tilted higher Tuesday. A small gain in Hong Kong matched by small losses in mainland China but elsewhere benchmarks ended positive. Strong gains for Australia, South Korea and Taiwan; more modest gains in India, Singapore and the rest of Southeast Asia. Japan closed for a holiday. US futures higher, Europe seeing small gains in the opening hour's trade. US dollar marginally stronger, yen weaker, yuan stronger. Treasury yields edging higher. Oil futures lower, precious metals mixed, industrial metals lower although China traded copper futures hit 16-month high. Cryptocurrencies under pressure but off lows.

  • A slightly more positive than negative day's trading in Asia Tuesday on marginally improved sentiment following news the White House would grant the auto sector a reprieve from tariffs on steel and aluminum. China and US officials pointed fingers at each other over trade negotiations, with each saying the other side was responsible for making the first move to begin serious talks. Nevertheless, gains were capped ahead of global PMIs due later this week that may offer a glimpse into manufacturing performance in April post a surge in March activity and the introduction of US tariffs. A string of Q1 corporate earnings are also expected this week alongside important guidance and outlook statements.

  • Few meaningful regional developments to change the market trajectory for now. A report late Monday from the Monetary Authority of Singapore highlighted 'serious ramifications' from US tariffs and subsequent retaliatory measures beyond Singapore's baseline 10% rate. India bond markets boosted again by another RBI liquidity injection into its financial sector, indicating another rate hike was possible sooner rather than later. Malaysia said it was postponing a GST expansion in the face of US tariffs.

  • Komatsu (6301.JP) said it forecast a 27% decline in operating profit this financial year because of a stronger yen and US tariffs. Sony Group (6758.JP) is considering a spinoff and listing of its semiconductor business as soon as this year, according to a Bloomberg report. Liquidators says China Evergrande's (3333.HK) chairman Hui Ka Yan has refused to disclose details of his assets, potentially complicating winding up efforts. Hanwha Aerospace (012450.KS) is in discussions with Saudi Arabia and UAE over potential arms collaboration that could see facilities being set up in the middle east to address sovereignty issues. Adani Green (541450.IN) says its own independent review on the US indictment of Gautam Adani and other executives did not identify any non-compliance or irregularities.

• Digest:

  • Trump to offer relief on auto tariffs:

    • Bloomberg, citing a White House official, reported President Trump is on track to provide relief on auto tariffs in response to industry calls and may be enacted as soon as Tuesday. Tweaks would lift some tariffs on foreign components for cars made in the US. Plan offers partial reimbursement for tariffs on imported auto parts, though to be phased out over time to provide time for manufacturers to shift more of the supply chain to the US. Car imports also to be given reprieve from aluminum and steel levies in an effort to prevent stacking of multiple tariffs. Commerce Secretary Lutnick was quoted in an emailed statement declaring a victory for Trump tariff policy by rewarding companies that produce domestically. Signals come ahead of a 25% tariff on foreign auto parts set to take effect 3-May, as well as Trump's visit to Michigan to mark the first 100 days of his second term. Ford (F) and General Motors (GM) issued statements praising the adjustment. Article recalled industry groups last week warned the administration that duties on imported auto parts could raise US manufacturing costs and jeopardize efforts to revitalize the domestic auto sector.

  • US, China place onus on each other to reach trade deal:

    • In a CNBC interview, US Treasury Secretary Bessent refrained from confirming whether Trump had engaged in trade talks with Xi, only noting that "all aspects of government are in contact with China." Repeated his stance that "it is up to China to de-escalate" given the size of China's exports to the US and the triple-digit tariff rates are unsustainable. Also discussed the logistical challenges in processing the sheer number of bilateral trade deals. Acknowledged they have a standardized template though declined to elaborate and reiterated priority on 15 to 18 important relationships, with 'China put to the side' due to complexities. Follows latest comments from the China Foreign Ministry again stressing that "China and US are not engaged in any consultation or negotiation on tariffs" (CNBC). Spokesperson added he was not aware of any calls between Xi and Trump, contradicting Trump's comments in a TIME interview that he received a call from Xi. Also said that if US wants to negotiate, it should "stop threatening and blackmailing China and seek dialogue based on equality, respect and mutual benefit" (Xinhua). Follows multiple press articles discussing Xi's willingness to ride out a trade war rather than be seen to have caved in.

  • India government bonds rise, yields sink on further RBI debt purchase:

    • IGBs rallied Tuesday after RBI said it would purchase INR1.25T ($15B) in debt in May in another effective cash injection into country's financial system (Bloomberg). Yield on IGB 10Y fell to 6.33% to re-approach three-year low and comes on back of several similar injections that has relieved liquidity pressure in banking system. Rupee strengthened in early trade Tuesday against USD and euro to its highest since Dec-24. Announcement also favors another RBI interest rate cut sooner rather than later as liquidity injections have pushed market rates below RBI policy rate. Separately, broker ICICI Prudential Life Insurance said it was turning bullish on longer-dated IGBs as tariff uncertainties signaled deeper interest-rate cut cycle. Added it expects 50 bps of cuts by August, said expects 10Y yield to fall another 35 bps from current 6.35%.

  • Global economic growth expectations shift bearish on tariff headwinds:

    • Reuters quarterly economist survey highlighted a notable bearish shift in sentiment toward the global economic growth outlook. With a sample of more than 300, 92% said tariffs would have a negative impact on business sentiment. Three-quarters of respondents cut their 2025 global growth forecast, bringing consensus down to 2.7% from 3.0% in January. Compares to the IMF's latest projection of 2.8%. Median estimates were downgraded in 28 out of 48 economies covered. Forecasts for Mexico (+0.2%) and Canada (+1.2%) underwent some of the largest downward revisions, mostly over the past month. Ten other economies were unchanged, including China (+4.5%) and Russia (+1.7%). Another ten saw slight upgrades such as Argentina and Spain, mainly on the back of domestic dynamics. Furthermore, 101 of 167 forecasters attributed global recession risk as high or very high. Central bank progress in curbing inflation through rate hikes expected to stall due to tariffs, stoking further concerns about stagflation. Central banks in 19 of 29 major economies were not expected to meet their inflation targets this year, though that number fell to 15 for next year.

  • Notable Gainers:

    • +8.1% 9863.HK (Zhejiang Leapmotor Technology): chairperson Zhu Jiangming, holder Fu Liquan bought total of 6.8M H shares on the market at average price of HK$46.45/share in early to mid April

    • +6.9% 051900.KS (LG H&H): reports Q1 with operating profit ahead of StreetAccount estimates

    • +5.6% 139130.KS (iM Financial Group): reports Q1 net profit attributable ahead of FactSet estimates

    • +4.2% 2359.HK (WuXi AppTec): reports Q1 results with revenue and adjusted non-IFS net income attributable ahead of StreetAccount estimates

  • Notable Decliners:

    • -14.5% 9666.HK (Jinke Smart Services Group): 18.1% stake in Jinke Smart Services Group held by Jinke Property sold to Boyu Group in court auction at CNY6.19/share

    • -12.1% 042660.KS (Hanwha Ocean): Korea Development Bank reportedly to sell 4.3% stake in Hanwha Ocean via block deal

    • -7.1% 688036.CH (Shenzhen Transsion Holding): reports Q1 results with revenue below FactSet estimates

    • -4.1% 916.HK (China Longyuan Power Group): reports Q1 results with (12%) y/y decline in operating income

• Data:

  • Economic:

    • No economic data today

  • Markets:

    • Nikkei: Closed

    • Hang Seng: 36.15 or +0.16% to 22008.11

    • Shanghai Composite: (1.76) or (0.05%) to 3286.65

    • Shenzhen Composite: 4.52 or +0.24% to 1902.27

    • ASX200: 73.50 or +0.92% to 8070.60

    • KOSPI: 16.56 or +0.65% to 2565.42

    • SENSEX: 183.80 or +0.23% to 80402.17

  • Currencies:

    • $-¥: +0.37 or +0.26% to 142.3900

    • $-KRW: (4.80) or (0.33%) to 1432.0300

    • A$-$: (0.00) or (0.03%) to 0.6421

    • $-INR: (0.10) or (0.12%) to 85.2315

    • $-CNY: (0.03) or (0.45%) to 7.2618