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StreetAccount Summary - Asian Market Recap: Nikkei +1.85%, Hang Seng (0.89%), Shanghai Composite (0.12%) as of 04:10 ET

Aug 08 ,2025

• Synopsis:

  • Asia stocks finished a polarized day's trading mixed as Japan's Topix surged to another record highs but much of the rest of the region finished lower. Japan's Nikkei more than 2% higher at one point before settling back, Topix above 3K for first time on strong corporate earnings, relief US will not 'stack' tariffs. Taiwan's Taiex a few points higher but all other major benchmarks in the red with sharp falls on the Hang Seng, on India's main boards, South Korea's Kospi and Singapore's STI. More modest losses elsewhere. US futures once again higher, Europe opened mixed. US dollar weaker but Asia currencies largely unchanged. Treasury yields higher, JGB yields also mostly higher. Crude contracts recovering from early losses. Gold surging to record high on US bullion bar tariff. Base metals lower. Cryptocurrencies also mostly down.

  • Asia markets responded mostly negatively to a mixed and relatively volatile session on Wall Street although almost every major benchmark ended Friday with solid weekly gains. Japan's market rally founded on several high-profile earnings beats, most notably Softbank, which jumped 10% Friday post results, to give an almost 20% w/w return. Reports the US had backtracked on stacking tariffs gave auto stocks and trading houses a significant sentiment boost.

  • Elsewhere, the Hang Seng dipped in a broad decline and as SMIC dragged after warning of a slowdown ahead and a miss on earnings. And India's two main benchmarks fell again to complete a sixth consecutive week of losses on deteriorating sentiment regarding US tariffs. In other developments, Japan household spending growth slowed as food cost inflation weighed on consumers while late Thursday the government trimmed its FY growth forecast to 0.7% from 1.2% on inflation and tariffs. The BOJ Summary of Opinions showed some support for normalizing policy in the wake of the US trade deal and continued inflation pressures.

  • Softbank (9984.JP) reported better-than-expected quarterly profits on AI investment, said it had ended its share buyback program ¥170B short of its target. SMIC (981.HK) CEO said demand for chips still outstrips supply but a rush of orders is likely to ease in Q4; reported fall in quarterly net profit on unstable yield rates, depreciation costs. Wynn Macau (1128.HK) missed its quarterly earnings forecasts on weak Macau business. BHP (BHP.AU) and Brazilian mining group Vale have offered $1.4B to settle a UK class lawsuit brought by victims of Brazil tailings dam disaster.

• Digest:

  • Japan's Topix rallies further to fresh record high on strong corporate earnings, tariff relief:

    • Japan's Topix benchmark surged to fresh record high Friday, Nikkei reapproached its own record, amid strong corporate earnings, and reports Washington would not stack tariffs. Softbank (9984.JP) most notable gainer, up 10.4%, after comfortably beating on Q1 earnings (Reuters). Sony Group (6758.JP) outperformed after it raised FY operating profit target. Trading houses Mitsui (8031.JP), Mitsubishi Corp (8058.JP) higher on improved trade sentiment. Auto makers Honda (7267.JP), Toyota (8035.JP) et al higher after trade negotiator Akazawa confirmed US would end stacking of universal tariffs and would cut car tariffs (JapanTimes); Toyo Tire (5105.JP) up after it said it would boost US output to offset tariff impact (Bloomberg). Nikkei 225 ended at 41,820, up 1.8%, Topix was up 1.2% at 3,024.2, first time above 3K; records arrive despite Japan government trimming GDP growth forecasts Thursday on tariff drag, weak consumption (Reuters), increased talk of BOJ resuming rate hikes before year end (Reuters), miss on June's household spending expectations (Reuters).

  • SoftBank and Sony surge on earnings, SMIC weighs on Hang Seng:

    • SoftBank (9984.JP) rallied to record high Friday and contributed most to Japan market gains (Bloomberg). Late Thursday group reported better-than-expected profit turnaround fueled by valuation upside from AI/tech investments. Drove ¥660B investment gain in Vision funds, vs ¥32.4B in pcp. Also revealed it sold further $3B of TMUS stock following June's $4.8B sale. As reported in press, group confirmed Stargate delays though anticipates concrete talks on first data center site to begin soon (Bloomberg, Nikkei). Sony (6758.JP) also hit fresh highs following Thursday's beat and raise. Music and gaming divisions drove revenue growth with company touting user engagement. Also revised down estimated tariff hit to ¥70B from ¥100B, citing inventory adjustments and lower-than-expected Q2 impact. Elsewhere, SMIC (981.HK) a notable drag on Hang Seng after earnings fell short of expectations. However, remained positive on chip market, highlighting growing wafer demand amid supply constraints that are expected to continue until October (Nikkei). Also downplayed US tariff impact on revenue, noting companies had stocked up beforehand (Reuters).

  • Japan's Akazawa says US to correct presidential order on baseline tariff:

    • Some clarity has emerged regarding US-Japan trade agreement after Japan's top negotiator Akazawa said 15% baseline tariff would not stack on top of existing levies (Nikkei). There had been some confusion on this after Kyodo reported White House official said 15% baseline tariff would stack, despite Japan believing otherwise. Akazawa claimed discrepancy was due to administrative error and that US cabinet secretaries expressed regret over their handling of the issue. Following his meeting Akazawa noted that goods shipped to US with existing tariffs above 15% will be charged only the 15%. Akazawa said this will be confirmed in a correction to White House executive order and that Japan would be reimbursed all mistakenly collected levies. Executive order correction would bring Japan into alignment with EU, whose deal with US also specified an all-inclusive 15% rate. Akazawa, who was in Washington this week to press US to reduce auto tariffs to 15% as it agreed to do, said new presidential order will be signed specifying recently agreed tariff rates on autos and auto parts.

  • India weighs response to tariffs:

    • Fallout continues from President Trump's 25% tariffs on India over Russian crude purchases. Conflicting reports in recent days whether Indian refiners asked to stop purchases of Russian crude, though Bloomberg sources say state-owned refiners pausing Russian crude purchases for time being. PM Modi struck defiant tone, saying India ready to pay heavy price will not compromise interests of farmers. On Thursday he held scheduled talks with Brazil President Lula to discuss strengthening trade ties, and may meet China President Xi at Shanghai Cooperation Organization on 31-Aug-1-Sep (Bloomberg). While India more open to broadening trade relations, Bloomberg sources noted Delhi hasn't given up on discussions with US and is weighing trade concessions that may include allowing in limited imports of genetically modified corn for non-human consumption. India also resisting retaliation against US for now. Still, India's scope for concessions may be constrained by bipartisan anger at tariffs and opposition accusing Modi for not standing up to Trump (FT). Tariffs seen weighing further on Indian growth outlook with economists estimating drag of up to 1% from direct hit to exports and indirect impacts on corporate confidence and capex.

  • BOJ Summary of Opinions show support for normalizing policy following trade deal:

    • BOJ July Summary of Opinions showed mixed views on prices with underlying inflation sluggish but elevated rice price growth persisting and possibility perceived inflation will not fall even if rice decelerates. Another said more likely board can judge price stability target achieved in first half of projection period based on US-Japan trade deal and higher prices. Members noted if economic and price outlook realized, bank will continue to tighten monetary policy, particularly with current interest rate below neutral. Stressed need to avoidmissing opportunity to normalize policy or risk rapid rate hikes that inflict considerable economic damage. Also suggestions BOJ should shift communications with view that price stability target will be achieved and it is now in place to put more emphasis on upside risk to prices. If downward effects on Japan's economy remain minimal BOJ may be in position to exit wait-and-see stance as early as end-2025. Those advocating caution countered that even with US-Japan trade deal, baseline scenario remains one of moderating economic growth and sluggish underlying inflation, necessitating continued accommodation. Added there is not yet sufficient data to determine impact of trade policy and at least 2-3 months needed to assess impact.

  • Notable Gainers:

    • +13.8% 6383.JP (Daifuku): reports H1 results; operating income ¥51.10B, +34% vs year-ago ¥38.14B

    • +10.4% 9984.JP (SoftBank Group): reports Q1 net income attributable ¥421.82B vs year-ago (¥174.28B)

    • +6.3% 033780.KS (KT&G Corp): reports Q2 results with operating profit, revenue ahead of StreetAccount estimates; to launch KRW300.00B share buyback

    • +4.6% 8591.JP (ORIX): reports Q1 earnings with revenue and operating income ahead of FactSet estimates

  • Notable Decliners:

    • -16.0% 13.HK (Hutchmed): reports H1 results; revenue below StreetAccount estimates

    • -14.9% 079550.KS (LIG Nex1): reports Q2 earnings with operating profit below FactSet estimates

    • -10.5% 9688.HK (ZAI Lab): reports Q2 results; EPADS ($0.37) vs FactSet ($0.42)

    • -8.2% 981.HK (SMIC): reports Q2 results; net income attributable $132.5M vs FactSet $156.7M

    • -6.9% 2282.HK (MGM China Holdings): reports H1 results; net income attributable HK$2.38B, (11%) vs year-ago HK$2.69B

• Data:

  • Economic:

    • Japan

      • June household spending +1.3% y/y vs consensus +2.7% and +4.7% in prior month

        • Spending (5.2%) m/m vs +4.6% in prior month

      • July bank lending +3.2% y/y vs +2.8% in prior month

  • Markets:

    • Nikkei: 761.33 or +1.85% to 41820.48

    • Hang Seng: (222.81) or (0.89%) to 24858.82

    • Shanghai Composite: (4.54) or (0.12%) to 3635.13

    • Shenzhen Composite: (4.48) or (0.20%) to 2220.15

    • ASX200: (24.30) or (0.28%) to 8807.10

    • KOSPI: (17.67) or (0.55%) to 3210.01

  • Currencies:

    • $-¥: +0.14 or +0.10% to 147.2670

    • $-KRW: +4.93 or +0.36% to 1388.6300

    • A$-$: +0.00 or +0.13% to 0.6532

    • $-INR: +0.27 or +0.31% to 87.6859

    • $-CNY: (0.00) or (0.00%) to 7.1812