Sep 07 ,2025
Synopsis:
Asian markets set for negative start to Monday trade. Futures signaling opening declines in Japan, Hong Kong and Australia. S&P 500 futures advancing after US indexes retreated Friday following soft payrolls data. Australian bonds strengthening, taking cues from Friday's Treasury rally after weak payrolls data led markets to price in 70 bp of easing in 2025. Dollar up slightly against yenfollowing PM Ishiba's resignation announcement. Crude logging marginal gain after OPEC+ announced a modest production hike for October. Gold pulling back from record high. Bitcoin flat.
Pre-market takeaways from Japan PM Ishiba's resignation announcement highlighted potential JGBs to weaken on fiscal expansion expectations with Ishiba's exit fueling opposition calls for more aggressive cost of living relief measures (though stimulus angle also considered conducive for equity support). In terms of monetary policy implications, strategists suggest fluid politics will make it difficult for BOJ to raise rates for time being (market pricing in less than 50% chance of rate hike by Dec-2025).
China trade data forecast to show export growth slowed in August following July's acceleration on back of US-China trade truce. Anticipated export slowdown thought to reflect pullback in US-bound shipments. Growth in imports also forecast to have weakened. Lead trade indicators mixed with official manufacturing PMI showing new export orders declining at narrower pace while RatingDog PMI showed services export business increased at steepest rate since February.
In latest trade developments, White House reportedly studying other ways to impose tariffs if SCOTUS upholds decision that reciprocal duties illegal. Treasury Secretary Bessent voiced confidence in SCOTUS win but also acknowledged possibility of having to refund duties already collected. Still no signs of breakthrough in US-India standoff with India's finance minister adamant country will continue to buy Russian crude. At same time, both Modi and Trump sought to downplay concerns about US-India relationship.
Also making headlines, South Korea announced fresh initiatives to increase housing supply and reduce loan-value limit on mortgage loans, as it looks to cool surging property prices. FT sources noted China to allow Russian energy companies to issue RMB-denominated 'panda' bonds, coming after China banks had previously balked at Russian firms amid fears of secondary sanctions. US ICE detention of South Korean workers in Georgia latest flashpoint in relations with Seoul to repatriate employees.
Pre-open Company News:
NUVB -- Nuvation Bio presents new data from Phase 2 TRUST-I, TRUST-II studies of IBTROZI at WCLC
603087.CH -- Gan & Lee Pharmaceuticals completes buyback of 3.5M shares totaling CNY150.1M; announced in Sep-24
1877.HK -- Shanghai Junshi Biosciences' JS005 meets primary endpoints in phase III study for plaque psoriasis treatment
1310.HK -- HKBN Ltd. chairman Cordelia Chung, CEO Yeung Chu Kwong step down, effective 5-Sep
540902.IN -- Amber Group's ILJIN Electronics secures INR12.00B from ChrysCapital and InCred PE for growth
IDYA -- IDEAYA Biosciences, Hengrui Pharma present positive Phase 1 data for IDE849 at WCLC
500183.IN -- HFCL subsidiary secures export optical-fiber-cable orders worth $40.7M (INR3.58B)
544285.IN -- Swiggy initiated buy at Nomura
HSBC downgrades COSCO SHIPPING Energy Transportation to hold from buy
002558.CH -- Giant Network Group initiated buy at HSBC
SCC.TB -- The Siam Cement Public resumed overweight at Morgan Stanley
2257.HK -- Sirnaomics enters into subscription agreements to raise HK$208.2M at HK$12.00/share
TU.TB -- Thai Union Group Public upgraded to buy from hold at Tisco Securities
4578.JP -- Otsuka Holdings upgraded to buy from neutral at Mizuho Securities
6526.JP -- Socionext initiated outperform at Macquarie
On Deck:
China:
Economic:
08:00 CST: New Yuan Loans; consensus
08:00 CST: Export Y/Y; consensus +5.3%
08:00 CST: Import Y/Y; consensus +3.7%
08:00 CST: M2 NSA Y/Y; consensus +9.1%
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: Trade Balance NSA; consensus +$99.4B
Hong Kong:
Earnings:
JNBY Design (3306.HK)
Japan:
Economic:
08:50 JST: GDP SA Q/Q (Final); consensus +0.3%
08:50 JST: Bank Loans NSA Y/Y; consensus
08:50 JST: GDP SAAR Q/Q (Final); consensus +1%
08:50 JST: GDP Y/Y (Final); consensus +1.3%
Market Data:
Gold (Dec 25): ($23.90) or (0.65%) to $3629.40
WTI Crude (Oct 25): +$0.20 or +0.32% to $62.07
$-¥: +1.02 or +0.69% to 148.4170
$-KRW: (1.08) or (0.08%) to 1385.5100
A$-$: (0.00) or (0.11%) to 0.6550
$-INR: (0.01) or (0.01%) to 88.1863
$-CNY: (0.00) or (0.01%) to 7.1298
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