Jul 01 ,2025
Synopsis:
Asia equities poised for a mixed open Wednesday. Futures in Japan were lower, Australia higher, while Hong Kong was closed for public holiday. Japan ADRs were mixed while Nasdaq Golden Dragon China index rose 0.20%. US contracts steady following mixed performance in the cash session with S&P and Nasdaq lower. Tech leads were softer with SOX index down 0.70%, Big Tech mostly lower with losses concentrated in Mag 7 names. Treasuries weaker with the curve flattening, reversing some earlier strength; policy-sensitive 2Y yield up 7bp, 10Y yield up 4bp after falling six of past seven sessions. Dollar index down 0.1%. Gold finished up 1.3%. Bitcoin futures down 2.1%. WTI crude ended up 0.5%.
US developments took most of the limelight. Wide references to rotation out of tech in response to perceived overbought conditions. Senate passed GOP's One Big Beautiful Bill as largely expected, which heads to the House for final approval with questions over whether Republicans will be able to secure passage by Trump's goal for 4-Jul. Fedspeak remains in focus amid growing rate cut expectations, though Powell's comments at the ECB Sintra conference did not move the needle. In latest tariff talk, Trump said he is not considering an extension to the tariff pause set to expire 9-Jul. Multiple FT sources indicated White House may be seeking phased deals and agreements in principle to try to hit that deadline.
Asia attention continues to revolve around trade talks. Trump reaffirmed criticism of the imbalances in Japan trade in rice and autos, doubts a deal will be done with Japan by the deadline and mentioned possible tariff rates of 30-35%. White House indicated to Nikkei that Japan talks would be put on the backburner to prioritize other deals such as with India, where the narrative has been the most prospective so far. Elsewhere, Thailand Constitutional Court on Tuesday suspended PM Paetongtarn from duty pending a case seeking her dismissal over a leaked phone call with former Cambodian leader Hun Sen. Market impact so far confined to local volatility.
Regional macro light on new developments. Yesterday's BOJ Tankan survey prompted some hawkish market takeaways on the back of surprising resilience in the headline confidence DIs, though there was no meaningful follow-through as tariff induced auto sector weakness drew most of the attention. BOJ Governor Ueda repeated his wait-and-see stance at the ECB Sintra conference. BOK Governor Rhee noted tariffs currently pose a bigger risk than inflation. Calendar remains light with South Korea CPI the only notable data point, with the headline marginally higher than expected while core was in line.
Pre-open Company News:
3998.HK -- Street Takeaways - Bosideng International Holdings FY earnings
2503.JP -- Kirin completes sale of certain businesses of Kyowa Hakko Bio to Meihua Holdings Group as announced in Nov 2024
532343.IN -- TVS Motor reports June sales (units) 402,001 vs StreetAccount 408,250
600060.CH -- Hisense Visual Technology initiated outperform at Guosen Securities (timing uncertain)
EMI.PM -- Emperador chairman and president Winston Co has resigned as president for personal reasons, effective today
500570.IN -- Tata Motors reports Q1 sales 210,415 units vs year-ago 229,891 units
086790.KS -- Hana Financial releases sustainability report
500477.IN -- Ashok Leyland reports June vehicle sales 15,333 units vs StreetAccount 15,588 units
600733.CH -- BAIC BluePark New Energy Technology reports June subsidiary vehicle production 14K, +91.7% y/y
590003.IN -- Karur Vysya Bank reports advances as at 30-Jun INR777.10B vs year-ago INR893.70B
2015.HK -- Li Auto reports June deliveries 36,279 vehicles; StreetAccount notes year-ago figure was 47,774
047050.KS -- POSCO INTERNATIONAL releases 2024 sustainability report
543425.IN -- C.E. Info Systems wins new seven year project worth INR2.33B ($27M)
548.HK -- Shenzhen Expressway reports May Shenzhen toll revenue CNY335.6M; StreetAccount notes the year-ago figure was CNY317.9M
On Deck:
Japan:
Earnings:
Daiseki (9793.JP)
South Korea:
Economic:
08:00 KST: CPI M/M; consensus +0.2%
08:00 KST: CPI NSA Y/Y; consensus +2.1%
Australia:
Economic:
11:30 AEST: Retail Sales SA M/M; consensus +0.5%
11:30 AEST: Building Approvals SA M/M; consensus +2%
Market Data:
Gold (Aug 25): +$1.50 or +0.04% to $3351.30
WTI Crude (Aug 25): ($0.04) or (0.06%) to $65.41
$-¥: (0.67) or (0.46%) to 143.3710
$-KRW: (1.44) or (0.11%) to 1351.3200
A$-$: (0.00) or (0.02%) to 0.6580
$-INR: +0.03 or +0.04% to 85.7306
$-CNY: +0.00 or +0.00% to 7.1643
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