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StreetAccount Summary - Asian Market Recap: Nikkei (0.89%), Hang Seng (0.59%), Shanghai Composite (0.75%) as of 04:10 ET

Jun 13 ,2025

• Synopsis:

  • Asian equities ended lower across the board Friday following Israel's attacks on Iranian nuclear facilities: Japan, South Korea and Taiwan were all notably lower, and oil-import dependent India is also down sharply. Australia, Greater China and Southeast Asia all with more modest losses. US futures lower, Europe opened with losses. US dollar higher on a safe haven rally, Asia currencies weaker everywhere although the yen is flat to outperform counterparts. Treasury yields higher across tenors , JGB yields lower, Australia 10Y yield at six-week low. Brent and WTI oil futures 7-8% higher, precious metals higher, base metals mixed. Cryptocurrencies weaker.

  • Asia stocks sharply lower everywhere Friday as risk assets sold off after Israel attacked Iran's nuclear facilities, and Tehran responded with long-range drone strikes. The attack spurred an immediate selloff of risk assets and rush to traditional havens; equities sold off along with JGB yields as investors rushed to buy bonds, currencies also weakened across the region as the dollar DXY index rose around 0.5%. Equity losses partially offset in places by surges in defense and energy names while consumer and IT stocks took the brunt of the selling. Crude futures spiked on concerns over near-term passage through the Straits of Hormuz rather than over direct attacks on Iran's oil infrastructure. Precious metals found renewed support on haven bids.

  • Other headlines leaned negative. President Trump hinted at raising auto tariffs while several reports hinted trade negotiations with Japan, India and the EU had run into barriers just as the G7 gathers in Canada this weekend. Japan's industrial output in April fell by more than first thought, Indonesia retail sales contracted in April, Malaysia retail sales grew but at its slowest in a year. Ahead Monday, China's May economic activity data with analysts expecting steady growth in industrial output and fixed asset investment, but a decline in retail sales.

  • The White House repeated the US will have a golden share in US Steel (X) after its merger with Nippon Steel (5401.JP). Nearly all of Foxconn's (Hon Hai, 2317.TT) shipments from India in the March to April period went to the US, customs data shows. China Cosco Shipping (1919.HK) and several other firms said to be considering joining the consortium to acquire CK Hutchison's (1.HK) global port assets. Singapore Airlines (C6L.SP) low cost carrier Scoot said it will start some routes vacated by Qantas' Jetstar, and introduce other new regional destinations.

• Digest:

  • Israel launches airstrikes against Iran:

    • Israel launched series of airstrikes on Iran late Thursday under operation 'Rising Lion', targeting nuclear sites including main enrichment facility in Natanz, nuclear scientists, country's ballistic missile program, and military commanders with IRGC head Hossein Salami killed (Bloomberg, FT, Reuters). Israel PM Netanyahu said operation will last for several days until threat is eliminated. State of emergency declared over Israel in anticipation of a missile and drone reprisal Israeli sources expect will be larger than previous Iranian retaliation. IDF spokesperson confirmed Iran began retaliation with launch of more than 100 drones. Supreme Leader Khamanei had vowed severe response with Iran armed forces spokesman adding that US would also pay heavy price. Earlier, Secretary of State Rubio said US not involved in strikes and warned Iran against targeting US interests or personnel. President Trump to convene national security meeting Friday, telling Fox News' Brett Baier earlier that Iran cannot have nuclear bomb and still hoping for return to negotiations. However, unclear whether nuclear talks in Oman will proceed on Sunday. No mention of Israel targeting Iranian crude facilities though markets also concerned about potential for Iran to retaliate by disrupting shipping through Strait of Hormuz, which facilitates more than 20% of global crude trade.

  • Trump trade talks a focus of upcoming G7 summit:

    • World leaders gather for G7 summit in Kananaskis, Canada, from 15-17-Jun. Lot of focus surrounds potential bilateral meetings between President Trump and other leaders to discuss trade. Of interest will be Trump's meeting with Japan PM Ishiba after latter on Thursday repeated not in a rush to sign deal and won't compromise on national interests (Bloomberg). US and Japan have discussed cooperation on areas such as shipbuilding, rare earths and LNG proposals but Japan maintaining demand for removal of tariffs. Japan's top trade negotiator Ryosei Akazawa also expected to travel to US for sixth round of talks this week. India PM Modi may meet Trump following recent reports touting progress towards interim US-India trade agreement. However, Bloomberg sources on Thursday noted some sticking points remain with US demanding India open market for genetically modified crops, ease price controls on medical devices, and relax rules on data localization policy. Beyond trade talks, hopes for a joint communique have been downplayed after Bloomberg sources noted divisions with US may instead result in joint leaders' statements on various topics.

  • China activity data seen mixed, GDP growth still expected to fall short of government target:

    • Ahead of China activity data set for release Monday, Bloomberg consensus looks for industrial production growth of 6.0% y/y in May, little changed from 6.1% in the previous month. Follows incremental improvement in the official manufacturing PMI. Retail sales likely expanded 4.9% y/y, following 5.1% in the prior month. Cited reports that revenue growth slowed over this year's Labor Day holidays. Bloomberg calculations showed spending per person increased modestly over last year while remaining 10% below pre-pandemic levels. Fixed asset investment growth seen remaining a stable 4.0% YTD with front-loaded infrastructure projects offsetting ongoing real estate weakness. Article suggested forecasts indicate China weathered tariff turbulence, though growth momentum still tracking notably short of the government's target of around 5% amid economists' warnings of downside risks to H2. Latest US-China trade talks in London reaffirmed their Geneva consensus, though provided little clarity beyond an agreement to ease export controls revolving around China rare earths. Bloomberg consensus still projects 2025 GDP growth of 4.5%. Lagging consumer demand remains a sore spot with sentiment weighed by the property slump and soft labor market.

  • Nvidia to exclude China from earnings guidance:

    • In a CNN interview, Nvidia (NVDA) CEO Huang said he has informed shareholders that guidance will no longer include the China market. Asked whether the US will lift export controls after trade talks with China in London this week, Huang responded that he is "not counting on it." Article recalled Q1 disclosure that Nvidia missed out on $2.5B in revenue due to H20 export restrictions to China, though overall impact was $4.5B vs prior forecast of $5.5B. Cited NEC Director Hassett's comments to CNBC Monday that the Trump administration might be open to loosening restrictions on exports of some chips that China views as critical to its manufacturing sector. But added US will maintain curbs on "very, very high-end Nvidia" chips that are capable of powering AI systems. Huang reiterated criticism of US chip export controls, arguing the goals are not being achieved. In a separate CNBC interview Thursday, Huang warned of the risk that US absence from the China market will allow Huawei to take advantage despite the latter's technology being a generation behind Nvidia's. Stressed it was crucial that AI developers around the world build on the American technology stack rather than China's. Commerce Department official Jeffrey Kessler told a congressional hearing they estimate Huawei's Ascend chip production capacity for 2025 is up to 200K while warning against complacency as "China is catching up quickly" (Reuters).

  • Foreign inflows driving Japan equity recovery since 'Liberation Day':

    • Nikkei discussed Japan equity flows based on weekly TSE data, highlighting foreign investors were net buyers for the 10th straight week through 6-Jun. This stretches back to the week of the US reciprocal tariffs announced on 2-Apr. Foreign investors proved to be the biggest contributor to the subsequent V-shaped recovery in the Nikkei. Cumulative purchases totaling JPY3.87T ($27B) over the period was well above corporate net buying of JPY2.76T reflecting share buybacks and retail net selling of JPY1T. Foreign buying streak was the longest in two years since Warren Buffett's Japan visit and endorsement of trading houses reinvigorated interest in the market. Current motive seen to be perceptions that Japan stocks were undervalued and underpinned by a surge of share buybacks in April. Cited views that foreign investors also see appealing corporate dynamics from buyouts and M&A. Furthermore, article noted that while Japan benchmarks remain negative YTD, both Nikkei and Topix dollar-based returns are positive and notably outperforming S&P 500. Story then explored longevity, suggesting that global fund managers will not be able to ignore dollar-based relative performance, while noting foreign buying amassed ~JPY5T from Jan-24 to the market peak in July as an indication of near-term potential capacity for country allocations.

  • Notable Gainers:

    • +22.1% 103140.KS (Poongsan): defense sector move on report of Israel launching preemptive strike on Iran

    • +8.4% 3659.JP (NEXON Co.): Tencent reportedly considering acquisition

    • +5.4% 1929.HK (Chow Tai Fook Jewellery Group): reports FY net income attributable HK$5.92B vs FactSet HK$5.60B

    • +0.7% 1.HK (CK Hutchison Holdings): China Cosco Shipping, other Chinese firms reportedly in talks to join TiL-led consortium to acquire Li Ka-shing's global ports

  • Notable Decliners:

    • -12.0% 1952.HK (Everest Medicines): confirms holder CBC intends to sell down 25M shares

    • -1.2% 000270.KS (Kia Corp.): US President Donald Trump hints at hiking auto tariffs

    • -0.2% 8473.JP (SBI Holdings): subsidiary SBI Shinsei Bank reportedly to file for Tokyo Stock Exchange relisting as soon as July, targeting ¥1.5T valuation

• Data:

  • Economic:

    • Japan April

      • Industrial Production m/m (revised) (1.1%) versus (0.9%) in prior month

  • Markets:

    • Nikkei: (338.84) or (0.89%) to 37834.25

    • Hang Seng: (142.82) or (0.59%) to 23892.56

    • Shanghai Composite: (25.66) or (0.75%) to 3377.00

    • Shenzhen Composite: (26.48) or (1.31%) to 2001.06

    • ASX200: (17.70) or (0.21%) to 8547.40

    • KOSPI: (25.41) or (0.87%) to 2894.62

    • SENSEX: (627.09) or (0.77%) to 81064.89

  • Currencies:

    • $-¥: +0.33 or +0.23% to 143.8190

    • $-KRW: +12.00 or +0.89% to 1367.3400

    • A$-$: (0.00) or (0.72%) to 0.6486

    • $-INR: +0.50 or +0.58% to 86.0815

    • $-CNY: +0.01 or +0.10% to 7.1806