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StreetAccount Summary - Asian Market Recap: Nikkei (0.79%), Hang Seng (0.15%), Shanghai Composite +0.33% as of 04:10 ET

Jul 29 ,2025

• Synopsis:

  • Asian equities ended Tuesday mixed after a weak start. Mainland China boards closed higher but the Hang Seng ended down albeit significantly off its trough. Japan's main benchmarks were lower alongside Taiwan and Singapore. South Korea's Kospi ended at a four-year high, Australia's ASX rallied from a poor open as miners gained. Southeast Asia ended mixed. Europe higher in the opening hour, US futures point to more gains at its open. Dollar quiet after its overnight move higher, yen flat, other Asia currencies mostly slightly weaker. Treasuries and JGBs mixed. Precious metals finding a base after recent losses, iron ore higher on US-China trade deal hopes. Crude prices a smidge lower following Monday's sharp gain.

  • Asia stocks opened lower following a subdued session on Wall Street overnight and gains in the US dollar after the US-EU trade deal was announced. But stocks rallied over the day as traders chose to focus on hints from US Commerce Secretary Lutnick over the weekend that a 90-day extension to China tariffs was a likely outcome of going talks between Washington and Beijing. On the diplomatic front, Taiwan President Lai Ching-te also postponed his US stopover after Trump blocked his visit as the latter prioritizes a trade deal with China.

  • Elsewhere, South Korea's finance minister pledged a mutually beneficial trade deal with shipbuilding a key focus, and USTR Greer said more talks with India were needed as Washington presses for increased access to India's agricultural market. Japan is said to be working on a framework to monitor progress on implementation of US trade deal after Washington threatened future tariff hikes if commitments were not fulfilled. Trade talks with Cambodia and Thailand are set to resume after the two sides agreed to a truce to their border dispute although Bangkok has since accused Cambodian forces of violating it. Japan PM Ishiba insisted he intends to stay on as leader following meeting of LDP members on Monday. China is to offer childcare subsidies amid plummeting birth rates.

  • Nvidia (NVDA) is said to have ordered 300K H20 chips from TSMC (2330.TT) because of robust demand from China. CK Hutchison (1.HK) is reshaping its $14.2B ports portfolio sale with Cosco Shipping (1919.HK) likely to join a US-led consortium preparing a bid. Celltrion (068270.KS) said an attempt to offset risk associated with tariffs had led it to be the preferred bidder to acquire an US-based manufacturing facility. Singapore Airlines (C6L.SP) said it forecast volatile times ahead on trade uncertainty amid an almost 60% drop in Q1 profits following losses from Air India, lower passenger yields.

• Digest:

  • Japan PM Ishiba fends off calls for resignation for now:

    • LDP headquarters meeting Monday evening lasted well over four hours and Prime Minister Ishiba reiterated to reporters that he intends to stay in office to avoid a power vacuum (Kyodo). Media spin varied overnight. Nikkei summary was brief, noting Ishiba faced calls to take responsibility for the election loss, though PM was apparently able to defend his position for the moment and reaffirmed earlier reports that a decision to step down would be aligned with a formal LDP post-mortem review of election performance to be published in August. Nikkei Asia canvassed major opinion polls and concluded the public did not overwhelmingly demand Ishiba's resignation after earlier highlighting signals from its own survey that his tenure was under threat. Reprised takeaway was that calls for Ishiba's immediate resignation were in the minority. Yet, near-term outlook remains tenuous as Kyodo reported LDP Secretary-General Moriyama said they will consider holding a more powerful decision-making plenary meeting soon in response to internal frustrations. Some members have signed documents demanding such a meeting where they can formally vote to remove Ishiba as party president. Party rules require signatures from a third of members to open the meeting.

  • US-China talks to resume Tuesday:

    • US and China officials met in Stockholm on Monday and will resume negotiations on Tuesday (Reuters). No information on what was discussed after negotiators left Monday's meeting without speaking to reporters. Expectations for an agreement on Monday were already low with USTR Greer anticipating discussions to focus on evaluating implementation of current agreement. Agenda was vague with US said to be pushing China to curb overcapacity, rebalance economy towards consumption, open its markets and address purchases of sanctioned Iranian and Russian crude. For its part China was expected to raise concerns over fentanyl tariffs and export controls. Commerce Secretary Lutnick said 90-day extension of US-China tariff deadline is likely outcome of talks (Bloomberg), adding weight to SCMP article that first reported details of an extension allowing two sides to build on negotiations and create space for potential Trump-Xi meeting. However, Trump later denied he is seeking summit with Xi. To avoid antagonizing China, Reuters sources noted Taiwan President Lai Ching-te set to delay trip that would have included US stopover. FT sources also noted Trump administration had frozen tech export controls ahead of Stockholm talks in bid to smooth path for Trump-Xi meeting.

  • Nvidia ordered 300K H20 chipsets from TSMC, reflecting strong China demand:

    • Reuters sources revealed Nvidia (NVDA) placed order for 300K H20 chipsets from TSMC (2330.TT) last week in wake of Trump administration reversing earlier ban on sales of the chip to China. Magnitude of orders viewed as reflection of strong China demand that prompted Nvidia to change original plan of just drawing down existing stockpiles. The Information reported previously Nvidia told Chinese customers it had limited supplies of H20 chip and had no plans to restart production. Resumption of H20 chip sales underscores the shift in longstanding US policy of tightening curbs on sales of advanced AI chips to China, as Trump views restrictions as bargaining chip in trade talks with Beijing (Bloomberg). Commerce Secretary Lutnick revealed that ending ban on H20 chips was related to rare earths magnets deal. China has long pressed US to loosen export controls and FT sources this week noted Trump administration had frozen tech export curbs as gesture of goodwill ahead of Stockholm talks. Questions have also been raised about effectiveness of export controls with recent reports highlighting flourishing black market in China for advanced Nvidia chips (FT, Reuters).

  • After trade deal euphoria, EU and Japan look to hammer out details:

    • Bloomberg discussed sobering views the US-EU trade deal won't bring a sense of stability back to transatlantic relations. Cited remarks from European officials expressing concern that too many concessions were made and the region still faces adverse economic impacts. Article cited an EU official describing a long pathway toward final implementation. EU and US seeking to clinch a non-legally binding joint statement by 1-Aug that will expand on some of the elements negotiated over the weekend. Once the statement is finalized, US will begin lowering its tariffs on specific sectors, in particular for cars and car parts, which currently face a 27.5% levy. Two sides will then start work on a legally binding text. Content and legal form of this document aren't clear, but it would require the support of at least a qualified majority of EU countries and possibly the European Parliament. Reaching a consensus on the legal text could take a long time given many trade accords require years of negotiations. EU won't start implementing the terms it agreed to - such as lowering tariffs on US products - until after this legal text is approved. In Japan, officials are moving independently to define their trade agreement, aiming for revised tariff rates to take effect when the temporary reprieve expires on 1-Aug (Nikkei). Tokyo pushing White House to issue an executive order, while indicating the two sides will not jointly draft a written document.

  • PBOC surveys show weaker China consumer sentiment, loan demand in Q2:

    • PBOC survey of urban depositors showed Chinese households became more pessimistic in Q2 and sentiment on employment fell to worst ever, seen as a worrying sign for economy that risks slowdown (Bloomberg). Also noted timing of release of survey results has become erratic as PBOC published Q1 and Q2 data together last Friday instead of at regular interval previously. Respondents reported lower inflation expectations, lower current employment sentiment, more negative views toward housing prices, and lower willingness to spend in Q2, which Goldman Sachs economists described as "a downbeat picture". Separate survey of bank loan officers showed loan demand dropped notably in Q2, especially among small businesses and loan approvals fell too. Respondents reported weakening banking profits and expected more accommodative monetary policy in Q3. Third survey of 5,000 enterprises showed business conditions edged up slightly in Q2 with both export and domestic orders improving from Q1. Meanwhile raw materials purchasing price index and sales price index both fell, pointing to persistent deflationary pressure.

  • Notable Gainers:

    • +8.3% 4307.JP (Nomura Research Institute): reports Q1 earnings; operating profit ahead of StreetAccount estimates

    • +7.7% 603259.CH (WuXi AppTec): reports H1 net income attributable CNY8.56B vs guidance CNY8.56B and year-ago CNY4.24B

    • +3.9% 139130.KS (iM Financial Group): reports Q1 net profit ahead of StreetAccount estimates

  • Notable Decliners:

    • -7.2% C6L.SP (Singapore Airlines): reports Q1 net income attributable SG$186.1M vs year-ago SG$451.7M

    • -1.5% 4507.JP (Shionogi & Co.): reports Q1 earnings; acute respiratory infection drugs, Quviviq progress lukewarm

    • -1.1% 763.HK (ZTE): to issue CNY3.58B USD settled zero coupon convertible bonds due 2030

• Data:

  • Economic:

    • No economic data today

  • Markets:

    • Nikkei: (323.72) or (0.79%) to 40674.55

    • Hang Seng: (37.68) or (0.15%) to 25524.45

    • Shanghai Composite: 11.77 or +0.33% to 3609.71

    • Shenzhen Composite: 10.19 or +0.46% to 2222.13

    • ASX200: 6.90 or +0.08% to 8704.60

    • KOSPI: 21.05 or +0.66% to 3230.57

  • Currencies:

    • $-¥: (0.08) or (0.06%) to 148.4740

    • $-KRW: +1.12 or +0.08% to 1390.8400

    • A$-$: (0.00) or (0.25%) to 0.6504

    • $-INR: +0.16 or +0.18% to 86.8421

    • $-CNY: (0.00) or (0.04%) to 7.1752