Source: Sharecast
Patrick Munnelly, market strategy partner at TickMill, said Asian stock markets remained steady near a four-year high on Tuesday, supported by Wall Street’s record closing, as investors prepared for a variety of corporate earnings and assessed the ongoing tariff discussions between the US and its trade partners.
“Japanese markets resumed trading after a holiday following last weekend's elections, where the ruling coalition faced a setback in the upper house.
“Despite this, prime minister Shigeru Ishiba pledged to stay in office.
“Japanese stocks initially surged at the open, then traded slightly higher, while bonds reacted quietly since the election outcomes had already been anticipated and were not as unfavourable as some had worried.”
Munnelly noted that US Treasury yields edged higher in anticipation of speeches from Federal Reserve officials, including Jerome Powell.
“Fears about trade agreements before the August 1 deadline, alongside companies' ability to endure the tariff conflict, are testing market resilience amid their record-setting growth.
“Stocks have rebounded since their downturn in April as fund managers aggressively back the rally in risk assets.”
This week was “pivotal”, Munnelly explained, as companies like Tesla and Google parent Alphabet announced their earnings.
“White House press secretary [Karoline] Leavitt indicated that [resident Donald Trump might issue further unilateral tariff letters before 1 August, and mentioned that more trade agreements could potentially be finalised before the deadline.”
Markets mixed as investors watch US trade developments, Wall St earnings
Japan’s Nikkei 225 slipped 0.19% to close at 39,744.00 despite earlier resilience in the face of political uncertainty following the ruling coalition’s loss of its upper house majority.
Pharmaceutical firm Sumitomo Dainippon Pharma dropped 4.95%, while Ebara and M3 fell 4.25% and 4%, respectively.
However, the broader Topix index eked out a 0.06% gain to end at 2,836.19.
China’s Shanghai Composite advanced 0.62% to 3,581.86, supported by sharp gains in industrial stocks.
Beijing Hanjian Heshan Pipeline Co, Fangda Special Steel Technology, and Shanghai Tunnel Engineering each rose more than 10%.
In contrast, the Shenzhen Component declined 0.84% to 11,099.83.
In Hong Kong, the Hang Seng Index climbed 0.54% to 25,130.03, lifted by strong performances from Xinyi Glass, Zhongsheng Group, and EV maker BYD, which gained 7.23%, 6.15%, and 5.09%, respectively.
South Korea’s Kospi 100 dropped 1.59% to 3,196.32, with industrial and defence stocks leading the decline.
Doosan Enerbility slumped 8.48%, LIG Nex1 lost 6.19%, and Hyundai Electric Energy Systems fell 5.45%, as investors awaited upcoming trade talks between Korean and US officials scheduled for Friday.
In Australia, the S&P/ASX 200 edged up 0.1% to 8,677.20, buoyed by gains in financials and miners.
Insignia Financial soared 12.21%, while Ramelius Resources and Pilbara Minerals rose 8.13% and 5.34%, respectively.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was among the region’s weakest performers, shedding 0.99% to close at 12,833.69.
Retail and tech names led losses, with KMD Brands down 3.77%, Serko off 3.37%, and Precinct Properties falling 2.79%.
In currency markets, the dollar was last up 0.13% on the yen to trade at JPY 147.57, as it edged up 0.19% against the Aussie to AUD 1.5355, and added 0.32% on the Kiwi, changing hands at NZD 1.6809.
Oil prices retreated, with Brent crude futures last down 0.95% on ICE at $68.55 per barrel, and the NYMEX quote for West Texas Intermediate slipping 1.09% to $66.47.
Korean officials preparing for US trade talks, new Thai central bank governor gets nod
In economic news, South Korea is preparing for high-level trade talks with the United States this week as tensions rise over new tariffs.
Finance minister Koo Yun-cheol and trade minister Yeo Han-koo were set to meet with US Treasury secretary Scott Bessent and trade representative Jamieson Greer on Friday, according to Reuters.
Additional South Korean officials, including the foreign and industry ministers, were also expected to visit Washington soon for related discussions.
The talks followed the US decision to impose a 25% tariff on South Korean imports beginning 1 August , mirroring a measure introduced by president Donald Trump in April.
In Thailand, the cabinet approved Vitai Ratanakorn as the next governor of the Bank of Thailand.
Ratanakorn, currently CEO of the Government Savings Bank, was set to begin a five-year term on 1 October, pending royal endorsement.
He would replace Sethaput Suthiwartnarueput, who was stepping down due to mandatory retirement.
Ratanakorn, 54, had led Thailand’s largest state-owned lender since 2020 and was expected to bring continuity and public-sector experience to the central bank’s leadership.
New Zealand’s trade surplus meanwhile narrowed sharply in June, coming in at NZD 142m, well below expectations for a NZD 1.02bn surplus.
Exports rose 10% year-on-year to NZD 6.6bn, driven by strong shipments to the EU, China, and Australia, which grew 38%, 11%, and 16% respectively.
However, exports to the US and Japan declined 8.8% and 4.7%.
Imports surged 19% to NZD 6.5bn, led by a 40% increase from South Korea and a 21% jump from the US, alongside gains from the EU, Australia, and China.
The strong rise in imports outweighed export gains, resulting in the weaker-than-expected surplus.
Reporting by Josh White for Sharecast.com.