Jul 16 ,2025
Synopsis:
Asia equities poised to open mostly higher Thursday. Futures in Japan were mildly lower, contrasting with gains in Hong Kong, South Korea and Australia. Almost all Japan ADRs declined while Nasdaq Golden Dragon China index fell a sharp 1.41%. US contracts reopened softer after broad cash session gains, restoring composure after notable volatility surrounding Powell headlines. Tech leads were mixed; Nasdaq extended record highs, SOX index fell 0.39%, Big Tech mixed with Nvidia (NVDA) moderately higher. US Treasuries were mostly firmer with curve steepening. Dollar index fell 0.3%. Gold finished up 0.7%. Bitcoin futures up 2.2%. WTI crude settled down 0.2%.
Trump scrutiny of Powell attracted most of the attention and credited for the bout of volatility across major asset classes. Headlines indicating Trump's readiness to remove Powell prompted a response from Trump that he has no plans to follow through. Inflation remained a key theme as US PPI echoed CPI results showing evidence of upward pressures from tariffs despite a softer than expected headline. Latest Fedspeak (Bostic, Williams) reinforced support for the status quo for now. Market-implied odds for a September cut edged higher toward 60%. Tariff rhetoric continued as Trump said he would send letters to more than 150 countries to set tariff terms for smaller trading partners at uniform rates for this cohort. In a separate interview elaborated the tariff rate would likely be 10% or 15%.
In regional developments, press sources observed Trump softening his stance on China in an effort to secure a summit with Xi and a trade deal. Approving Nvidia's resumption of H20 chip exports said to have been a genuine surprise to multiple senior officials. After Treasury Secretary Bessent downplayed concerns about the 12-Aug tariff truce expiry, some indications the deadline could be extended by another three months. However, dovish tone shift stands to grate against China hawks in the administration. India remains the most prospective Asia trade deal in the pipeline and officials said to be aiming to secure a tariff rate lower than the 19% set for Indonesia, though Trump has said the India deal would be along the same line. Also hinted Japan tariff would probably remain at 25%.
Pre-open Company News:
500180.IN -- StreetAccount Consensus Metrics Preview - HDFC Bank Q1 Earnings
500325.IN -- StreetAccount Consensus Metrics Preview - Reliance Industries Q1 Earnings
2330.TT -- StreetAccount Consensus Metrics Preview - TSMC Q2 Earnings
2175.JP -- SMS Co. completes up-to ¥4B buyback
600497.CH -- Yunnan Chihong Zinc & Germanium completes buyback programme for 50.9M shares totalling CNY267.7M
544325.IN -- ITC Hotels Ltd. reports Q1 consolidated EPS INR0.64 vs year-ago INR0.41
540699.IN -- Dixon Technologies trades +2.0%; deals seen strengthening integration, margins
6185.HK -- NMPA approves CanSino Biologics' recombinant trivalent polio vaccine (Sf-RVN cells) to clinical trial
179.HK -- Johnson Electric Holdings reports Q1 revenue $915M, (2%) vs year-ago $935M
535648.IN -- Just Dial trades (4.0%); soft collections, margin miss weighs on sentiment
179.HK -- Johnson Electric forms two humanoid robotics JVs with Shanghai Mechanical & Electrical Industry
AWK.SP -- Fuxing China Group to resume trading tomorrow
Hong Kong stock connect daily turnover
813.HK -- Shimao Group Holdings expects to satisfy all restructuring conditions on or prior to 21-Jul
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Japan:
Economic:
08:50 JST: Trade Balance NSA (Preliminary); consensus +¥0.5T
08:50 JST: Export NSA Y/Y (Preliminary); consensus +0.3%
08:50 JST: Import NSA Y/Y (Preliminary); consensus +3.5%
Earnings:
DISCO Corp. (6146.JP)
Australia:
Economic:
11:00 AEST: Consumer Inflation Expectation; consensus
11:30 AEST: Unemployment Rate; consensus 4.1%
11:30 AEST: Employment SA; consensus +20.5K
Earnings:
Santos (STO.AU)
India:
Earnings:
Alok Industries (521070.IN), Clean Science & Technology (543318.IN), Tata Communications (500483.IN), CEAT Ltd (500878.IN), Sunteck Realty (512179.IN), Polycab India (542652.IN), Sterling & Wilson Renewable Energy (542760.IN), Nuvoco Vistas (543334.IN)
Taiwan:
Earnings:
TSMC (2330.TT)
Market Data:
Gold (Aug 25): ($5.50) or (0.16%) to $3353.60
WTI Crude (Aug 25): +$0.29 or +0.44% to $66.67
$-¥: (0.95) or (0.64%) to 147.9190
$-KRW: (1.61) or (0.12%) to 1384.9200
A$-$: +0.00 or +0.13% to 0.6522
$-INR: (0.06) or (0.08%) to 85.8853
$-CNY: +0.00 or +0.07% to 7.1780
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