Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei +1.59%, Hang Seng +0.51%, Shanghai Composite +0.65% as of 04:10 ET

Jul 24 ,2025

• Synopsis:

  • Asian equities advanced Thursday. Japan extended gains amid continuation of trade deal optimism with Topix hitting all-time high. Hang Seng held 3.5-year high while Shanghai finished above closely watched 3,600 level for first time since Jan-2022. Taiwan and Korea recorded mild gains. Australia was lower. Thailand underperforming amid border clash with Cambodia. India is also trading lower. Nasdaq futures were higher while S&P 500 flat. Treasury yields were 1bp higher across tenors. Korean won, Aussie and yen all stronger against dollar. Crude higher while gold retreating. NY copper at record high. Bitcoin slightly below $120K.

  • Asian markets extended gains as positive trade developments were fueling risk-on momentum as many now bet Washington would take more pragmatic approach before tariffs meaningfully hurt corporate profits. Following US-Japan trade agreement attention now centers on prospects of deals with other countries. US and South Korea have discussed creating fund to invest in American projects as part of trade deal though Yonhap reported high-level talks slated for Friday suddenly postponed due to Secretary Bessent's scheduling issue. Australia intends to remove restrictions on US beef as it looks to secure tariff relief. EU and US now progressing toward 15% tariff for most imports. Meanwhile Trump suggested new global baseline reciprocal tariff rates would not go below 15% and could be as high as 50%.

  • In macro developments, China and EU leaders held a summit shadowed by rising tensions. South Korea Q2 GDP came in just ahead of expectations, led by rebound in private consumption and strong growth in exports. RBA Governor Bullock said still some labor market tightness as board continues to favor measured and gradual rate cut approach. RBNZ chief economist Conway said still scope to cut rates further with tariffs exerting disinflationary drag in New Zealand. Japan flash PMI showed factory activity fell back into contraction as trade policy uncertainty weighs on outlook. India flash PMI came mixed as manufacturing activity strengthened while services sector showed signs of easing. Thailand and Cambodia clashing in deadly border row.

  • SK Hynix (000660.KS) earnings topped forecasts, underpinned by DRAM revenue beat. Group also guided capex higher and flagged favorable pricing conditions ahead amid continued demand growth. Sony (6758.JP) weighing sale of cellular chipsets business. Pop Mart (9992.HK) founder said company may launch updated version of Labubu plush toy in October. PDD Holdings (PDD) switches to EY in Hong Kong for auditing, which analysts viewed as a precursor to a future listing in the city.

• Digest:

  • Japan PM Ishiba's resignation now seen as a matter of timing:

    • Nikkei front page article suggested Prime Minister Ishiba's resignation is now inevitable after the US trade deal was struck and reaffirmed earlier reports a decision to step down may be made in August after a planned election review. Ishiba told reporters after meeting with former PMs Aso, Suga and Kishida Wednesday evening they shared a strong sense of urgency while denying there was any discussion about his tenure. However, article cited one attendee describing the atmosphere of the meeting was not conducive for Ishiba's survival as there were concerns of a party split if there were no changes. Reprised earlier discussions that the US trade deal was the only substantive reason for Ishiba to stay on, and with that gone, he is likely to face growing calls to take responsibility for the upper house election defeat. Furthermore, cabinet sources even described the trade deal as Ishiba's swan song. Yet, reasons against an immediate resignation include finalization of the trade deal as Ishiba seeks to consummate the agreement with a face-to-face meeting with Trump, while some thoughts the passage of a supplementary budget bill during the extraordinary Diet session should fall under Ishiba's watch.

  • Potential successors to PM Ishiba already begin jockeying for position:

    • Nikkei discussed the early activity among potential successors to Prime Minister Ishiba, positioning themselves for the next leadership race. If Ishiba declares his intent to resign next month, an LDP presidential election could be held by the fall. Key new element this time is that, with the ruling coalition having lost majority control of both houses, opposition parties stand to play a major role in the selection process. Several candidates from the last leadership race are among those eyeing a possible opportunity to succeed Ishiba. Former Economic Security Minister Takayuki Kobayashi, seen as a rising star, on Wednesday discussed election results with lawmakers who had supported him in the LDP vote in September. Sanae Takaichi, who also previously served as economic security minister and lost narrowly to Ishiba in the last leadership election, met with party allies as well as former PM Taro Aso, who heads the last remaining powerful faction. Aso has a close relationship with former Secretary-General Toshimitsu Motegi; the two met Monday and agreed the LDP would not be able to last with Ishiba staying in office. Chief Cabinet Secretary Yoshimasa Hayashi met on Monday with members of Kishida's former faction and visited Kishida's office on Tuesday. Agriculture Minister Shinjiro Koizumi, who has had success in tamping down soaring rice prices, is seen as a top candidate.

  • Other countries eye concessions in bid to secure US trade deals:

    • Following US-Japan trade agreement attention now centers on prospects of deals with other countries. Bloomberg sources noted US and South Korea weighing creation of fund to invest in US projects as part of Japan-style trade deal that would involve lowered 15% tariff. Yonhap sources revealed proposed deal of more than $100B from purely company investment, but could be higher if government funding is added. Prospective agreement would also include pledges to buy more American agriculture products and Boeing (BA) aircraft. However, high-level US-South Korea talks set for Friday suddenly postponed due to Treasury Secretary Bessent scheduling issue (Reuters). Analysts had been hoping South Korea would secure similar relief as Japan, otherwise country's automakers would be placed at competitive disadvantage. More press reports noting US and EU nearing deal that would result in 15% tariff on European imports, including autos (FT, Bloomberg). Australia intends to remove biosecurity restrictions on US beef, a move it hopes will pave way for relief from steel and aluminum tariffs and Trump's threat to impose 200% tariffs on pharm imports (Reuters). Urgency to strike agreements underlined by Trump suggesting new global baseline tariff will not be below 15% and could be as high as 50% for countries US is not getting along with (Bloomberg).

  • RBA Governor Bullock say still some labor market tightness:

    • In a speech that largely recapped post-pandemic trends in Australian inflation and employment, RBA Governor Bullock said central bank expects Q2 trimmed mean inflation to moderate further but maybe by not as much as it forecast in May following recent trends in monthly inflation. Said board continues to judge that measured and gradual rate cut approach is appropriate. Still assess some tightness in labor market that is expected to ease a little over 2025. Pointed out firms still facing hiring difficulties and unit labor cost growth remains strong. Noted June jobs figures, while coming as a shock to market, were in-line with RBA's forecast in May and other metrics such as vacancy rates have been stable. Moreover, lead indicators not pointing to further significant increases in unemployment rate over near term. Market and economists aligned in their predictions for an August rate cut following extent of weakness in June jobs data. However, some thought Bullock's emphasis on labor market tightness, and her disclosing that board would likely not have cut in July even if it had received June's jobs figures, suggests August rate cut is not assured (Bloomberg).

  • BOJ rate hike calls largely unchanged before US-Japan trade deal:

    • Bloomberg consensus poll (n=56) found economists still clearly favor a BOJ rate hike in January (36%) followed by October (32%). However, survey was compiled before the US-Japan trade deal was announced. Timing was a genuine surprise as only 12% expected a deal by 1-Aug. Premium remains high for timeliest information amid volatility in tariff headlines. While BOJ Deputy Governor Uchida's speech Wednesday did not break new ground, Q&A provided an opportunity for early reactions to the trade deal, which Uchida described as a big step forward, but added that uncertainties remain high, citing difficulties in confirming economic impacts through the data while also noting duration is unclear (Nikkei). Also remained cautious on risks stemming from ongoing US-China negotiations. Uchida clarified the latest Outlook Report contained an assumption that tariff negotiations globally would make some progress, and the Japan deal was consistent with that view. Overall, sees no major deviation from the bank's main scenario that Japan growth momentum will slow along with overseas economies, resulting in a temporary stagnation in underlying inflation. Nikkei noted market-implied odds of a rate hike as of Wednesday afternoon was just 1% for July, 35% for October, while September emerging as a possibility at 25%.

  • Notable Gainers:

    • +9.4% 373220.KS (LG Energy Solution): reportedly wins battery structure patent infringement lawsuit against Sunwoda

    • +7% 6028.JP (TechnoPro Holdings): following media report clarifies no decision has been made for its potential privatization

    • +2.6% 6758.JP (Sony): reportedly exploring sale of cellular chipsets business

    • +2.3% 207940.KS (Samsung Biologics): reports Q2 operating profit KRW475.60B vs StreetAccount KRW445.69B; raises FY revenue guidance

    • +1.9% 3931.HK (CALB Group Co.): guides H1 net income CNY709-793M vs year-ago CNY417M

    • +1% 011070.KS (LG Innotek Co.): reports Q2 operating profit KRW11.39B vs StreetAccount KRW56.25B

    • +0.2% 000660.KS (SK Hynix): reports Q2 operating profit KRW9.213T vs StreetAccount KRW8.978T

  • Notable Decliners:

    • -5.1% MQG.AU (Macquarie Group): provides Q1 update at AGM; 1Q26 net profit contribution down y/y, CFO to step down

    • -4.9% 6807.JP (Japan Aviation Electronics Industry): reports Q1 net income attributable ¥856M vs year-ago ¥3.14B

• Data:

  • Economic:

    • S. Korea

      • Q2 GDP +0.6% q/q vs consensus +0.5% and (0.2%) in prior quarter

        • GDP +0.5% y/y vs consensus +0.4% and 0.0% in prior quarter

    • Japan

      • July flash manufacturing PMI 48.8 vs 50.1 in prior month (09:30 JST)

        • Services PMI 53.5 vs 51.7 in prior month

        • Composite PMI 51.5 vs 51.5 in prior month

    • India

      • July flash manufacturing PMI 59.2 vs final 58.4 in prior month

        • Services PMI 59.8 vs 60.4 in prior month

        • Composite PMI 60.7 vs 61.0 in prior month

  • Markets:

    • Nikkei: 655.02 or +1.59% to 41826.34

    • Hang Seng: 129.11 or +0.51% to 25667.18

    • Shanghai Composite: 23.43 or +0.65% to 3605.73

    • Shenzhen Composite: 25.88 or +1.19% to 2203.09

    • ASX200: (27.80) or (0.32%) to 8709.40

    • KOSPI: 6.68 or +0.21% to 3190.45

  • Currencies:

    • $-¥: (0.08) or (0.06%) to 146.4290

    • $-KRW: (5.19) or (0.38%) to 1369.6900

    • A$-$: +0.00 or +0.35% to 0.6611

    • $-INR: (0.01) or (0.01%) to 86.3723

    • $-CNY: (0.01) or (0.11%) to 7.1518