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StreetAccount Summary - Asian Market Recap: Nikkei +0.55%, Hang Seng +0.84%, Shanghai Composite +0.52% as of 04:10 ET

Jun 11 ,2025

• Synopsis:

  • Asia markets ended mostly higher Wednesday supported by positive sentiment from trade talks: Hong Kong continued to grind higher towards three-year highs last seen in March while mainland China benchmarks also closed higher. More gains for the Kospi, which broke through and closed above 2.9K for the first time in more than three years. The Taiex and Nikkei also had strong days with more cautious gains for its Topix, and Australia's ASX. Singapore the sole major benchmark in Asia underwater. US futures lower, Europe pared early losses. US dollar flat now having been stronger earlier, Asia currencies a little weaker. Crude futures a smidge higher, gold higher, base metals mixed.

  • Asia stocks boosted by the US and China reaching a framework agreement to implement their Geneva accord however Presidents Xi and Trump still have to sign off on it. Commentators said the London agreement signals a continuation of the truce but was no breakthrough as it focusses on how to proceed with what was agreed only a few weeks ago. Although details were scarce, the US said it expected China to relent on rare earth export controls and would in return examine its tariff orders. China's side backed by reports a Shanghai-listed rare earth supplier was given export licenses to ship product to the US and Europe.

  • US and India also said to be close to an interim deal by the end of this month after progress on the hitherto sticking points of market access and digital trade. Meanwhile, a US court ruled Trump's tariffs could proceed as originally planned as it decides on detailed matters of the tariff program. Elsewhere, Japan wholesale inflation slowed by more than expected in May. South Korea employment ticked up but there were notable losses in manufacturing; exports rose more than 5% in the first ten days of June on chip shipments. Malaysia unemployment hit a 10-year low 3.0% in April but industrial output expanded by less than expected. China moved to stabilize pork production amid a 10% slump in prices that is in part responsible for the country's deflation problem.

  • Nintendo (7974.JP) said it had sold 3.5M Switch 2 consoles inside just four days setting it on track to sell 15M units by Mar-26. JL MAG Rare-Earth (300748.CH) said it had received several export items that will allow it to ship several rare earths and related products to the US, Europe and Southeast Asia. Maruti Suzuki (532500.IN) said it was cutting short-term production targets for in first EV by two-thirds because of rare earth shortages. Qantas (QAN.AU) is to close its Singapore-based Jetstar Asia unit as it looks to concentrate on its domestic market.

• Digest:

  • US and China reach in-principle agreement to implement Geneva consensus:

    • US and China reached framework to implement Geneva consensus following two days of talks in London (Bloomberg, Reuters). Details of the agreement were limited and it was unclear whether the talks fully resolved dispute over export controls. Commerce Secretary Lutnick said he expects framework to lead to resolution of rare earths and magnet issue, suggesting recent US export controls would be relaxed in a balanced way and dependent on China approving rare earths licenses. Going into the talks reports noted China had granted some rare earths approvals while Trump had reportedly given room for US negotiations to relax some export restrictions. Media sources noted during the talks China negotiators drove hard bargain by demanding significant loosening of technology and other export controls. Framework's implementation still needs approval from Presidents Trump and Xi. Greer said no further meetings scheduled but two sides remain in contact. US-China tariff pause set to expire in August with Greer saying decision on whether to extend deadline is up to Trump.

  • China rare earths producers rally following US-China framework agreement:

    • China-listed lithium producers rallying Wednesday with names like Ganfeng Lithium (1772.HK), Tianqi Lithium (9696.HK), Chengxin Lithium (002240.CH) and Huayou Cobalt (603799.CH) seeing gains of 3-5%. Follows US-China talks in London and in-principal agreement that Commerce Secretary Lutnick said paves way for resolution to dispute over China's rare earths export curbs. JL Mag Rare-Earth (6680.HK) on Wednesday announced officials approved export permits for rare earths magnets to countries including US (Bloomberg). Rare earths exports at center of recent dispute between US and China with Beijing's curbs on magnets fueling alarm among global autos about potential for shortages to disrupt production (Reuters). Weekend reports noted China approved some export licenses for Europe and US automakers, though scope of relief was unclear. More broadly, issue has spotlighted attention to China's grip on global rare earths supply and its increasing willingness to leverage that dominance in trade disputes. Some estimates China accounts for ~70% of global production and difficulties of finding alternative sources has underlined rare earths as another risk to supply chains (SCMP).

  • US progress on deals with India, Mexico; appeals court leaves Trump tariffs in effect:

    • Signs of progress in other US trade negotiations with Reuters sources noting US and India nearing interim deal by end of June. Latest round of talks yielded progress on issues such as market access and digital trade. However, India gave no ground on sensitive industries such as wheat and dairy while US rebuffed Delhi's demand for removal of 10% baseline tariff. Bloomberg sources noted US and Mexico nearing deal that would remove 50% steel tariffs up to certain volume but higher than allowed under similar deal during Trump's first term. Proposal still needs Trump's approval with Mexico anticipating response this week. In other trade developments, US Federal Appeals court on Tuesday allowed tariffs imposed under the International Emergency Economic Powers Act (IEEPA) to remain in effect until it decided whether duties are permissible under the act (Bloomberg, link). Also expedited the case with scheduled arguments for 31-Jul, leaving tariffs in place at least until then. Comes after appeals court had earlier stayed last month's decision by US Court of International trade striking down tariffs imposed under IEEPA.

  • Majority of economists predict slower BOJ JGB purchase tapering next year:

    • Bloomberg consensus poll (n=53) showed economists unanimously expect no rate change next week, while about 65% look for a slower pace of JGB purchase reductions in FY26. With the current trajectory paring monthly buying by JPY400B ($2.8B) per quarter through FY25, 40% predicted a quarterly reduction of JPY200B in the next year and another 25% forecasting JPY300B. Outside of these projections, bulk of the remainder (21%) look for the pace to remain unchanged. Asked about the next rate hike, modal response shifted to January (34%), followed by October (30%) while July calls diminished to sub-10%. Profile was broadly consistent with other surveys from Reuters and Nikkei showing a notable shift in momentum toward 2026. Latest BOJ rhetoric did not advance the narrative as upper house financial affairs committee discussions turned to contingencies against a notable softening in economic growth momentum (Reuters). Governor Ueda noted scope for easing is extremely limited with rates still so close to zero. Repeated the core stance that policy adjustments will continue if there is a sufficient confidence level of achieving forecasts. But with underlying trend inflation remaining short of 2%, BOJ is maintaining accommodative conditions by guiding real rates somewhat negative.

  • Japan upper house election stimulus pledges taking shape, but funding details remain light:

    • LDP agreed with coalition partner Komeito to pledge cash handouts ahead of the summer upper house election (Kyodo, Nikkei). Officials considering a sum of JPY20K~40K ($138~276) per person to be funded by tax revenue surpluses. CDP also mounted their election platform with a JPY20K cash handout combined with a suspension of consumption tax on food items (currently 8%) for one to two years. CDP suggested JPY5T in necessary funding can come from existing government fund/provision accounts though has not disclosed specifics. Other opposition party proposals similarly fiscally dovish. JIP also pledging zero consumption tax on food for two years, DPP pitching temporary cut to 5%. All parties supporting legislation to terminate a special gasoline levy. DPP has not ruled out funding via deficit bonds while JIP relying on tax revenue surpluses. Article reiterated concerns about debt ramifications from stimulus through tax cuts or handouts, auguring for further rises in long term JGB yields. Nikkei reported party leaders will participate in a policy debate at 6 pm JST, expected to mainly spar over stimulus plans, though content may also provide a basis for CDP to proceed with a no-confidence motion against Prime Minister Ishiba. Recall that party officials have hinted Ishiba would respond by dissolving the lower house in that scenario.

  • Notable Gainers:

    • +2.9% 6923.JP (Stanley Electric): launches up-to-¥80.0B buyback for up-to-35.0M shares

    • +2.0% 005380.KS (Hyundai Motor): reportedly company's rare-earth stockpile can last about a year

    • +1.9% 2330.TT (TSMC): reports May revenue NT$320.52B, +39.6% y/y

    • +1.8% 9878.HK (Huitongda Network): to launch up to CNY500M on-market H-share buyback under mandate

    • +0.4% 3064.JP (MonotaRO): reports May sales ¥24.96B, +11.9% vs year-ago ¥22.31B

  • Notable Decliners:

    • -17.9% 7205.JP (Hino Motors): Hino Motors, Mitsubishi Fuso Truck conclude definitive agreements for merger; Hino Motors to issue 270.9M common shares, 175.5M class A shares at ¥448/share to Toyota Motor

    • -1.4% 1698.HK (Tencent Music Entertainment Group): announces proposed acquisition of Ximalaya

• Data:

  • Economic:

    • Japan

      • May CGPI +3.2% y/y vs consensus +3.5% and revised +4.1% in prior month

    • South Korea

      • May unemployment rate 2.7% vs FactSet consensus 2.7% and 2.7% in prior month

  • Markets:

    • Nikkei: 209.68 or +0.55% to 38421.19

    • Hang Seng: 204.07 or +0.84% to 24366.94

    • Shanghai Composite: 17.50 or +0.52% to 3402.32

    • Shenzhen Composite: 14.30 or +0.71% to 2024.50

    • ASX200: 4.90 or +0.06% to 8592.10

    • KOSPI: 35.19 or +1.23% to 2907.04

    • SENSEX: 296.13 or +0.36% to 82687.84

  • Currencies:

    • $-¥: +0.17 or +0.12% to 145.0600

    • $-KRW: +5.96 or +0.44% to 1372.1800

    • A$-$: (0.00) or (0.14%) to 0.6514

    • $-INR: (0.05) or (0.06%) to 85.4984

    • $-CNY: (0.00) or (0.04%) to 7.1847