Source: Sharecast
Markets in Japan were closed for the Mountain Day holiday.
“Equity index futures climbed in both the US and Europe, while oil prices fell amid expectations that a meeting between US and Russian leaders could facilitate a resolution in Ukraine and enhance crude supply,” commented TickMill market strategy partner Patrick Munnelly.
“Oil and gold prices declined by 0.6% as Trump readied for discussions with Putin on Friday.
“Cash trading in Treasury securities in Asia was halted due to a holiday in Japan.”
Munnelly noted that Asian lithium stocks experienced a rally, whereas most semiconductor companies faced declines.
“Bitcoin is nearing an all-time high within the cryptocurrency space, driven by rising demand from institutional investors and corporate treasury buyers, which is expanding the market for digital assets.
“Ether soared to its highest point since December 2021, exceeding $4,300 following a weekend uptick.
“Asia's semiconductor stocks faced setbacks after Nvidia and AMD decided to donate 15% of their chip sales revenue to the US government regarding their connections with China under an export license agreement with the Trump administration.”
Markets mixed ahead of next US-China tariff deadline
In mainland China, the Shanghai Composite index rose 0.34%, closing at 3,647.55, while the Shenzhen Component gained 1.46%, reaching 11,291.43.
Among the best-performing stocks in Shanghai were Jinxi Axle, which climbed 10.09%, Shanghai Huili Building Materials, which increased 10.05%, and Junhe Pumps, which also advanced by 10.05%.
Hong Kong's Hang Seng Index rose 0.19% to 24,906.81.
The top performers included BYD Electronic, up 6.15%, Xinyi Solar, which rose 5.06%, and Techtronic Industries, which added 4.35%.
Elsewhere in the region, South Korea's Kospi 100 closed with a slight gain of 0.04% at 3,242.30.
Leading gains in Seoul were LF Co, up 10.32%, POSCO Future M, which increased 8.31%, and Posco ICT, with a 5.5% rise.
Australia's S&P/ASX 200 increased by 0.43% to 8,844.80, driven by strong performances from Pilbara Minerals, which was up 19.69%, Mineral Resources, which gained 12.18%, and St Barbara, which rose 9.38%.
In New Zealand, the S&P/NZX 50 also posted a gain, rising 0.52% to 12,911.86, with Eroad, up 7.18%, Fletcher Building, up 2.37%, and ANZ Group, up 2.05%, leading the advance.
In currency markets, the dollar was last down 0.03% on the yen to trade at JPY 147.96, while it gained 0.06% against the Aussie to AUD 1.5342, and strengthened 0.26% on the Kiwi, changing hands at NZD 1.6833.
In the commodities market, oil prices were down, with Brent crude futures last down 0.08% on ICE at $66.54 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.19% to $63.76.
Deflltionary pressures persist in China, RBA expected to cut cash rate
In economic news, deflationary pressures persist in China, according to newly released data, while Australia's central bank is anticipated to lower its cash rate.
China's National Bureau of Statistics reported that the consumer price index (CPI) was unchanged year-on-year in July, a notable change from the 0.1% rise in June.
On a monthly basis, CPI increased by 0.4%, reversing a 0.1% drop from the prior month.
Core CPI, which excludes volatile food and energy prices, saw a 0.8% rise from a year earlier, marking its fastest pace in 17 months.
That was supported by smaller declines in the prices of cars and phones, even as food prices fell by 1.6% from a year ago.
On the industrial side, China's producer price index (PPI), a measure of factory-gate prices, dropped by 3.6% from a year earlier.
The decline, which matched June's fall and exceeded expectations for a smaller drop, marks the 34th consecutive month that the PPI has been in contraction.
China’s persistent deflation was attributed to weak demand, overcapacity, and intense competition.
On a monthly basis, the PPI's decline eased to 0.2%, an improvement from the 0.4% drop in June.
Analysts said government efforts to address “disorderly competition” may have limited effect without stronger stimulus for consumer demand, which continues to be hampered by a prolonged housing slump, high youth unemployment, and fragile consumer sentiment.
Despite the headwinds, exports were a bright spot, with July shipments rising 7.2% from a year earlier.
However, manufacturing surveys for July showed renewed weakness, with new export orders declining for the fourth straight month.
In Australia, economists surveyed by Reuters widely expected the Reserve Bank of Australia to cut its cash rate by 25 basis points to 3.6% on 12 August.
That came after the RBA surprised markets by holding rates steady in July.
According to Commonwealth Bank of Australia economists, the latest inflation data had “largely squashed” the RBA's previous concerns.
Australia's headline inflation rate for the second quarter of the year came in at 2.1% year over year, the lowest point since March 2021, strengthening the case for a rate cut.
Reporting by Josh White for Sharecast.com.
