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StreetAccount Summary - Asian Market Recap: Nikkei (0.11%), Hang Seng +0.54%, Shanghai Composite +0.62% as of 04:10 ET

Jul 22 ,2025

• Synopsis:

  • Asian equities ended mixed Tuesday with tech stocks under some pressure. South Korea and Taiwan sharply lower; smaller losses for India and Japan's Nikkei. Topix and Australia's ASX ended flat. Gains for Greater China boards and several in Southeast Asia. US futures mixed, Europe looking at a firmly lower opening as trade deal hopes wobble. US dollar a smidge higher, Asia currencies generally weaker. Treasury yields higher across tenors, JGBs mixed post election but yields all within a narrow band. Crude contracts notably lower, precious metals down, base metals in China mixed. Most cryptocurrencies lower.

  • Japan equity and bond markets closed relatively unchanged, and the yen largely pared yesterday's strength, post the weekend's upper house election which saw PM Ishiba's LDP party lose its majority. Results were widely expected and analysts said lack of market movement today reflected the result was likely priced in. Other regional markets, especially those including big tech stocks, struggled for positive momentum ahead of key earnings and amid fresh concerns over tariffs ahead of next week's deadline.

  • Many Asia nations to send delegations to Washington this week with all of them hoping the White House will lower intended tariff levels. Malaysia appears to be pushing back on US demands on tax relief for EVs while Taiwan's economic minister was forced to quash rumors Washington had already set a 32% rate. Separately, RBA minutes from July's meeting showed board members were reluctant to cut rates too quickly after its previous trim. Malaysia inflation fell to its lowest in more than four years. Thailand confirmed its new Bank of Thailand Governor will be Vitai Ratanakorn, generally perceived to hold dovish views on rates. South Korea's producer inflation rose to cap a four-month long decline.

  • Kansai Electric (9503.JP) isa said to be close to start work on a next generation nuclear power plant. CK Hutchison (1.HK) and the consortium of buyers for its ports, have agreed China Cosco (1919.HK) should have full access to information surrounding ports operations. New Zealand's Sky Network (SKT.NZ) is to acquire Discovery NZ for single dollar on a cash-free, debt-free basis. CC Capital finalized an agreement to buy Insignia Financial (IFL.AU) for US$2.15B. Champion Iron (CIA.AU) said Nippon Steel (5401.JP) and Canada's Sojitz Corp will invest an initial C$245M ($179M) in its Kami iron ore project for an aggregate 49% interest.

• Digest:

  • Japan post-election market reactions remain tame:

    • Japan market reactions remain moderate Tuesday following Sunday's upper house election and the Monday holiday. Mild equity declines attributed mostly to ongoing uncertainties surrounding tariffs as much as domestic politics. JGB yield curve somewhat steeper reflecting superlong weakness, though shorter tenors firmer. Benchmark 10y strength attributed to further dissipation in BOJ rate hike expectations amid uncertainties from both politics and tariff effects. JGB futures strength triggered a dynamic circuit breaker early in the session. Common theme was some relief the upper house election result was not as bad as feared for incumbents; while LDP won 39 seats, there were some projections the party would secure only 36 seats for its worst result ever. Also, some reassurance from Prime Minister Ishiba's intention to remain in office to avoid a power vacuum and policy statis. Yen resilience standing out as the most surprising. Current weakness vs dollar only mildly retracing overnight gains. Nikkei discussed similar relief that a worse election outcome was avoided and the 52-week moving average in USD/JPY providing a significant technical support for yen, guiding profit-taking levels on short positions. Price action so far contrasting with prior expectations of faster back-up in JGB yields and yen depreciation driven by fiscal policy concerns and diminished prospects for a favorable US trade deal.

  • Japan PM Ishiba faces trial by caucus after election loss:

    • Nikkei discussed Prime Minister Ishiba's tenuous hold on office after expressing his intent to stay on despite the coalition's poor performance in Sunday's upper house election. At a press conference Monday, Ishiba stressed the LDP remains the top party in terms of the number of lawmakers and the party has responsibility to handle issues such as tariffs, inflation and natural disasters. However, Ishiba's chances of survival depends heavily on whether he can suppress growing frustration within the party. Article reported senior LDP members voiced criticism against the premier during a meeting of top officials held before the press conference. Acting secretary-general Tatsuo Fukuda said he received about 20 calls from party members and highlighted particular disgruntlement among the younger demographic. Ishiba's decision to retain all top executives also under scrutiny. Taro Kono tendered his resignation as acting chair of the election strategy committee, and other senior members may follow. Party branch in Kochi prefecture decided to formally request Ishiba's resignation as party president, portending a possible swelling in internal anti-Ishiba sentiment. Ishiba plans to hold a meeting with LDP lawmakers from both houses of parliament on 31-Jul. While no decision will be made at the meeting, LDP bylaws stipulate that the party can force an election for a new president if the majority of prefectural delegates and national lawmakers demand it.

  • July RBA minutes highlight board's debate whether to hold or cut by 25 bp:

    • July RBA minutes delved into board's debate whether to cut by 25 bp or hold. Case for reducing cash rate rested on policy still being modestly restrictive, on-track inflation implying less need to wait, global uncertainty, and subdued domestic growth. Also highlighted uncertainty whether private employment growth can offset any further slowing of public sector job growth (soft June jobs seemed to tie into those concerns and strengthened expectations of an August rate cut). Ultimately, board settled on a hold decision, citing benefit of waiting for more evidence inflation sustainably tracking to 2.5% midpoint, stronger-than-expected growth in private demand, and no loosening of labor market conditions. Noted trade developments had only limited effect on global economy, reducing risk of RBA's bearish global scenario playing out. Board also downplayed signal importance of monthly CPI, suggesting recent weak prints overstated easing in underlying inflation momentum. Minutes confirmed importance of Q2 CPI (30-Jul) as an input to August's policy decision. However, Governor Bullock's post-meeting press conference in July had also conveyed dovish stance after she noted that board's rate cut debate revolved more around timing than direction.

  • Malaysia, Philippines look for cut to US tariffs; Taiwan and Korea delegations to visit Washington this week:

    • Bloomberg reported Malaysia seeking to lower its US tariff to 20% from 25% however, citing people familiar with matter, said Kuala Lumpur resisting Washington's demands to extend tax breaks on US-made EVs. Also has pushed back on foreign ownership rules of power and finance companies, subsidy cuts for local fishermen. Elsewhere, Philippines President Marcos set to meet President Trump this week, aims to offer stronger economic and defense ties to secure more favorable tariff deal than threated 20%. Taiwan's economic minister Kuo said he was optimistic of securing a rate lower than 25% handed to South Korea and Japan, forced to quash online speculation Washington had decided on 32% rate for island (TaiwanNews). South Korea's finance and trade ministers to travel to US this week to meet counterparts Bessent and Greer, want to persuade Washington to lower reciprocal and sectoral tariffs (Yonhap). India's protracted negotiations likely miss 1-Aug deadline but talks likely to continue (BusinessStandard).

  • Thailand names new central bank chief supportive of rate cuts:

    • Thailand's cabinet confirmed Tuesday Vitai Ratanakorn will be new Bank of Thailand governor from October. Vitai currently president, chief executive of Government Savings Bank, has close ties to government, been long-term advocate of lower interest rates, also in line with current government policy (Reuters). Said in June 'proactive easing important' for Thai economy, which has underperformed Southeast Asia since end of pandemic. Thai cabinet said endorsement based on knowledge, expertise, experience in economics, banking. Finance minister Pichai said Vitai to work in sync with government to coordinate monetary, fiscal policy (Bloomberg). Vitai also previously said tacking country's household debt pile a priority, while suppressed consumption credit demand also of concern. Economist cited by Bloomberg said likely to see more dovish approach from new governor, said could be one or even two cuts by BoT by year end.

  • Notable Gainers:

    • +15.8% 3339.HK (Lonking Holdings): guides H1 net income CNY590-665M; StreetAccount notes the year-ago figure was CNY458.5M

    • +3.7% 1548.HK (Genscript Biotech): guides H1 adjusted pretax income $175.4-204.6M vs year-ago ($127.9M)

    • +3.6% 9503.JP (The Kansai Electric Power): to resume voluntary on-site survey for successor plant of Mihama nuclear power station

    • +2.5% 003240.KS (Taekwang Industrial): holder Truston sells 26K shares to OK Capital at KRW1,155,000/share through block trade; Truston and OK Capital have signed a joint ownership agreement to jointly exercise voting rights

    • +1.8% 136.HK (China Ruyi Holdings): subsidiary acquires 30% stake in KuaiQian Financial Services at CNY240.0M in cash

    • +0.2% 600795.CH (GD Power Development): reports Q2 power generation 105,809 GWh, (1.6%) y/y

  • Notable Decliners:

    • -5.7% 9880.HK (UBTECH Robotics): launches HK$2.47B placement at HK$82.00/share

    • -0.3% 9618.HK (JD.com): reportedly denies report that it bought stake in Kai Bo

• Data:

  • Economic:

    • New Zealand June trade balance NZ$142M vs revised NZ$1,082M in May

      • Exports +10.0% y/y vs +9.7% in May

      • Imports +19.0%) y/y vs (7.2%) in May

  • Markets:

    • Nikkei: (44.19) or (0.11%) to 39774.92

    • Hang Seng: 135.89 or +0.54% to 25130.03

    • Shanghai Composite: 22.07 or +0.62% to 3581.86

    • Shenzhen Composite: 12.67 or +0.58% to 2188.95

    • ASX200: 9.00 or +0.10% to 8677.20

    • KOSPI: (40.87) or (1.27%) to 3169.94

  • Currencies:

    • $-¥: +0.26 or +0.18% to 147.6400

    • $-KRW: +4.15 or +0.30% to 1386.9500

    • A$-$: (0.00) or (0.40%) to 0.6504

    • $-INR: +0.16 or +0.19% to 86.3932

    • $-CNY: (0.00) or (0.02%) to 7.1743