Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei +0.59%, Hang Seng (0.34%), Shanghai Composite (0.04%) as of 04:10 ET

Jun 17 ,2025

• Synopsis:

  • Asia equities ended mixed Tuesday. Japan's Nikkei and Topix held on to their gains alongside Taiwan, South Korea and most of Southeast Asia. Benchmarks in Greater China, Australia and India all lower. US futures down, Europe opened with sharp losses. US dollar slightly higher but within recent range, Asia currencies trading within a tight band. Treasuries mixed, JGB yields higher after BOJ decision. Precious metals mixed, Crude oil futures higher, base metals lower with iron ore down for a second day on signals

  • Asia markets traded a little sideways Tuesday as fears of a spread in the Iran-Israel conflict persisted, and after President Trump's early exit from the G7 meeting in Canada ostensively because of the crisis in the middle east. Israel and Iran traded missile strikes for a fifth consecutive day with no sign of an ease in tensions just as Trump warned citizens to evacuate Tehran.

  • In regional developments, the Bank of Japan left interest rates unchanged as widely expected with the accompanying statement saying Japan's growth is likely to moderate. The bank also announced details about JGB tapering program from FY26 with pace of purchase reductions to fall from ¥400B to about ¥200B, in-line with previews. RBI Governor Malhotra said there is still room for further easing if inflation undershoots projections despite most economists last week saying the bank was at the end of its easing cycle. South Korea's government says it will introduce a second extra budget to tackle growth. Singapore's non-oil exports unexpectedly declined in May with shipments to the US sinking.

  • Softbank (9984.JP) sold 21.5M T-Mobile shares at 4224 each via a block sale to raise $4.8B. Mitsubishi Corp (8058.JP) is in discussions to acquire US energy exploration and production company Aethon Energy. Chow Tai Fook Jewellery (11929.HK) said it would offer HK$8.8B in convertible bonds due in 2020 but stock fell sharply. Woodside Energy (WDS.AU) and Mitsui Iron Ore Development (Mitsui & Co, 8031.JP) have joined BHP and Rio in a joint venture to develop Pilbara iron ore as a source for low carbon iron.

• Digest:

  • Trump warns people to evacuate Tehran, eyes fresh diplomatic push:

    • Posting on Truth Social, President Trump warned everyone to immediately evacuate Tehran. White House Press Secretary Karoline Leavitt later announced Trump cut short his G7 attendance to deal with "important matters" in Washington (Bloomberg, Washington Post, Reuters). Unclear for what purpose, but Trump said it had nothing to do with ceasefire. Trump to convene National Security Council meeting after Pentagon called in additional assets to the region (Reuters). CBS cited US officials who said US not participating offensively and Pentagon spokesman also stressed US maintaining defensive posture. NY Times sources noted Trump has encouraged VP Vance and US envoy Steve Witkoff to offer to meet Iranians this week. Press sources earlier noted Tehran's interest in resuming diplomacy (Washington Post). However, NY Times added if last ditch diplomacy efforts fail Trump would have to consider US deployment of bunker buster bombs to destroy nuclear facilities buried deep underground. Axios similarly noted White House discussing possibility of meeting between Witkoff and Iranian Foreign Minister Abbas Araghchi, highlighting Trump's view of bunker busters as negotiating leverage. Conflict has entered fifth day with Iranian state media noting air defenses activated over Tehran (CNN). Israel PM Netanyahu also signalling no letup in campaign to destroy nuclear and ballistic missile programs.

  • BOJ leaves rates steady, JGB purchase tapering guidance matches expectations:

    • BOJ left OCR unchanged at 0.5% as widely expected by unanimous vote. JGB purchase schedule was also in line, confirming no change to reductions of JPY400B per quarter through 1Q26 and slowing the pace to JPY200B from 2Q26. Also specifically mentioned the broader goal to bring monthly purchases down to about JPY2T in 1Q27, consistent with earlier press discussions. Another interim assessment will be conducted at the MPM in Jun-26, though clarified principal intention to continue tapering with scope for modifications. Notably signaled MPC will discuss guideline for FY27 and announce results at the Jun-26 meeting. Statement retained contingencies in case of sharp yield volatility via increased JGB purchases and fixed-rate operations -- both of which can be performed adhoc regardless of the monthly purchase schedule -- as well as the funds-supplying operation against pooled collateral. Economic assessment was generally consistent with earlier remarks from Governor Ueda indicating confidence that positive domestic dynamics will eventually withstandexternal turbulence largely stemming from US tariffs. Underlying inflation still seen reaching target in the second half of the projection period. But statement emphasized extreme uncertainties around the main scenario. Nothing major from Ueda's press conference that essentially emphasized gradual domestic dynamics contrasting with external turbulence (Reuters). Middle East conflict and oil prices came up as a new discussion topic adding further to offshore uncertainties.

  • US-Japan yet to reach a trade deal as sticking points remain:

    • Japan Prime Minister Ishiba met with President Trump for 30 minutes in Kananaskis and told reporters they have yet to reach a broad agreement due to ongoing lack of consensus in certain areas (Nikkei). With nothing definitive from Trump, tariff negotiations set to continue. While rigorous discussions have taken place, Ishiba said it was still difficult to say when an agreement would be reached. Some hint that autos remain a sticking point, stressing Japan would do its utmost to protect national interests while the two leaders exchanged frank views. Kyodo added Ishiba did not say whether they discussed an extension of the 90-day reprieve on reciprocal levies, noting the outlook for a deal looks uncertain with the upper house election just over a month away on 20-Jul. According to Nikkei, Ishiba offered plans to expand US investment, highlighting Japan is already the largest foreign investor in the US though received no commitment from Trump to lower tariffs. Recall there were earlier indications that negotiators were laying the groundwork for Trump and Ishiba to come to some sort of agreement. But subsequent reports indicated confusion on the Japan side at the lack of coordination among the key US officials. Japan chief negotiator Akazawa repeatedly deflected questions on prospects for a deal last Friday after another round of cabinet-level talks (Kyodo).

  • EU refusing to hold economic summit with Beijing amid festering trade tensions:

    • Trade tensions between EU and China continuing to fester ahead of planned leaders' summit in Beijing next month. FT sources noted EU refusing to hold high-level economic talks with China amid lack of progress in resolving disputes over issues such as EV tariffs, China anti-dumping duties on EU brandy and its anti-subsidy probe into pork and dairy. Nodding to tensions with Beijing, European Commission President von der Leyen on Monday described China trade practices as a "serious problem," accusing Beijing of weaponizing its rare earths dominance and dumping cheap goods onto other markets (Politico). Trump's tariffs rollout in April put traction behind EU-China reengagement efforts though two sides still working through differences, including proposal to replace EV tariffs with minimum prices for China cars (Bloomberg). China delayed decision on EU pork imports by extending anti-subsidy probe by another six months (Reuters). Tensions also flared over China's restrictions on rare earths exports after EU Trade Commissioner Maroš Šefcovic raised issue directly with Commerce Minister Wang Wentao earlier this month (Bloomberg).

  • US considered broadening chip export controls ahead of China talks in London:

    • Press sources noted that ahead of recent US-China talks in London, US Commerce Department considered export controls on wider range of equipment for producing semiconductors. Action would have extended existing curbs beyond advanced chips to regular semiconductors, risking disruptions to supply chains and threatening revenue at companies like Applied Materials (AMAT), Lam Research (LRCX) and KLA (KLAC). White House official said measure was considered as an option if London talks did not go well, and refused to rule out it being deployed in future. Similarly, press reports have recently highlighted how China is keeping rare earths as negotiating leverage with Reuters sources noting Beijing continues restricting export of some specialized magnets necessary for US military suppliers. China also reportedly put six-month limit on rare earth export licenses in effort to hold leverage if trade tensions reignite. More broadly, there has been a lot of discussion about how post-Geneva renewal of trade tensions will persist to a degree with US and China demonstrating greater propensity to use export controls against the other.

  • Notable Gainers:

    • +5.3% 010130.KS (Korea Zinc Co.): TMC announces Korea Zinc to make strategic investment of ~$85.2M through purchase of common shares and warrants in private placement ($4.34, 0.00)

    • +2.1% 9984.JP (SoftBank Group): T-Mobile US holder Softbank reportedly to sell TMUS shares in unregistered overnight block sale

    • +1.1% 000333.CH (Midea Group): launches CNY5.0-10.0B A-share buyback programme at up-to-CNY100/share

  • Notable Decliners:

    • -7.3% 1929.HK (Chow Tai Fook Jewellery Group): confirms offering of HK$8.80B 0.375% convertible bonds due 2030

    • -1.1% 8058.JP (Mitsubishi): reportedly in discussions to acquire Aethon Energy's US shale production assets for $8B

    • -0.5% 2333.HK (Great Wall Motor): Chinese carmakers reportedly preparing to use exclusively homemade chips in cars

• Data:

  • Economic:

    • Singapore May

      • Non-oil exports (3.5%) y/y vs +12.4% in prior month

  • Markets:

    • Nikkei: 225.41 or +0.59% to 38536.74

    • Hang Seng: (80.69) or (0.34%) to 23980.30

    • Shanghai Composite: (1.32) or (0.04%) to 3387.40

    • Shenzhen Composite: (2.41) or (0.12%) to 2010.52

    • ASX200: (7.10) or (0.08%) to 8541.30

    • KOSPI: 3.64 or +0.12% to 2950.30

    • SENSEX: (301.98) or (0.37%) to 81494.17

  • Currencies:

    • $-¥: (0.11) or (0.08%) to 144.6380

    • $-KRW: +2.91 or +0.21% to 1362.1900

    • A$-$: +0.00 or +0.14% to 0.6539

    • $-INR: +0.17 or +0.20% to 86.1716

    • $-CNY: +0.00 or +0.02% to 7.1815