Jun 22 ,2025
Synopsis:
Asian markets set for negative start to Monday trade. S&P 500 futures opened slightly lower following US strikes on Iran on Saturday. Crude up over 2%, but off initial highs and outpaced by rally in gasoline futures. Japan futures ended flat on Friday while Australia and Hong Kong finished weaker. Australian bond yields down only marginally after Treasuries were mostly firmer on Friday. Dollar weakening against majors. Gold steady. Bitcoin under pressure, down to lowest since early May.]
Big weekend story was Trump authorizing US strikes on Iran's Fordow, Natanz and Isfahan nuclear facilities. White House claimed strikes severely degraded Iran's nuclear program, though may take weeks to fully assess extent of damage. Attention now on potential Iranian reprisal and whether it provokes further US action amid talk about Iran targeting American bases in region. From market perspective main concern revolves around Strait of Hormuz, though analysts have voiced doubts about Iran moving to disrupt crude shipments.
Trade negotiations continue ahead of 9-Jul tariff deadline. Reports signaling progress on US-EU negotiations over non-tariff measures though other hurdles remain and press sources say best outcome may be in-principle deal to continue negotiations. Vietnam Communist Party chief reportedly intending to visit US in coming weeks in bid to secure trade agreement. Malaysia said reached agreement with US to finalize negotiations before tariff deadline. US-Japan talks appear to be stuck with tensions spilling over to defense spending demands.
June Flash PMIs kick off week after Asian factory activity weakened in May as tariffs weighed on demand. Busy week of Fed speeches with Chair Powell also testifying. BOJ June Summary of Opinions will shed light on board member views after central bank left rates on hold and announced slowdown in pace of JGB purchase reductions. Tokyo CPI forecast to show still-elevated pricing pressures after May inflation rose to highest since Jun-2023. Singapore and Australia CPI also due out. US PCE forecast to show mild inflation following cooler CPI and PPI prints.
Pre-open Company News:
002439.CH -- Venustech Group chairperson Wei Bing resigns due to work adjustment; effectively immediately
297.HK -- Sinofert Holdings initiated overweight at Industrial Securities
8591.JP -- ORIX upgraded to buy from neutral at Mizuho Securities
4091.JP -- Nippon Sanso Holdings downgraded to underweight from equal-weight at Morgan Stanley
034020.KS -- Doosan Enerbility downgraded to underperform from buy at Daiwa
2002.TT -- China Steel downgraded to hold from buy at Masterlink Securities
SAWAD.TB -- Srisawad Corp. Public upgraded to outperform from neutral at InnovestX
1117.HK -- China Modern Dairy Holdings guides H1 net income (CNY800M-1.00B) vs year-ago (CNY207M)
HTA.AU -- Spark New Zealand to sell its 10% stake in Hutchison Telecommunications to Hutchison Telecommunications (Amsterdam)at A$0.032/sh
6181.HK -- Laopu Gold upgraded to buy from neutral at BofA
323410.KS -- KakaoBank downgraded to underweight from neutral at JPMorgan
JPMorgan initiates 1508.HK, 6060.HK, 6963.HK, and 966.HK
Morgan Stanley downgrades Stella International & Crystal International
8750.JP -- Dai-ichi Life downgraded to equal-weight from overweight at Morgan Stanley
601998.CH -- China CITIC Bank downgraded to neutral from buy at UBS
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Japan:
Earnings:
Ichibanya (7630.JP)
Australia:
Earnings:
Metcash (MTS.AU), Collins Foods (CKF.AU)
Market Data:
Gold (Aug 25): +$5.70 or +0.17% to $3391.40
WTI Crude (Jul 25): +$1.88 or +2.55% to $75.72
$-¥: +0.13 or +0.09% to 146.2280
$-KRW: (1.00) or (0.07%) to 1372.1800
A$-$: (0.00) or (0.04%) to 0.6448
$-INR: (0.01) or (0.01%) to 86.5987
$-CNY: (0.00) or (0.01%) to 7.1789
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