Global Markets:
- Asian Stock Markets : Nikkei down -0.79%, Shanghai Composite up 0.13%, Hang Seng up 1.25% ASX up 0.73%
- Commodities : Gold at $3,826.40 (0.14%), Silver at $46.95 (0.31%), Brent Oil at $68.26 (-0.20%), WTI Oil at $65.22 (-0.37%)
- Rates : US 10-year yield at 4.161, UK 10-year yield at 4.747, Germany 10-year yield at 2.745
News & Data:
- (CAD) GDP m/m 0.2% to 0.1% expected
- (USD) Core PCE Price Index m/m 0.2% to 0.2% expected
Markets Update:
Asian markets traded mostly higher on Monday as investors looked past the latest tariff developments, though Japanese shares lagged. The Nikkei 225 slipped 0.84% and the Topix shed 1.57%, retreating from record levels hit last week. In contrast, South Korea’s Kospi rebounded 1.25% after Friday’s steep fall on trade uncertainty, while the small-cap Kosdaq rose 1.29%. Hong Kong’s Hang Seng index advanced 1.19% at the open and the Hang Seng Tech Index climbed 1.5%, though mainland China’s CSI 300 was little changed. Australia’s S&P/ASX 200 gained 0.71% ahead of the Reserve Bank of Australia’s two-day policy meeting.
The RBA is widely expected to hold its cash rate steady at 3.6%, according to a Reuters poll. Economists at Commonwealth Bank cautioned that policymakers face rising pressure, pointing to August CPI figures signaling upside risks for third-quarter inflation. They also noted a cyclical upswing in activity data, but highlighted offsetting signs of softer employment and moderating wage growth, leaving the central bank in a more delicate position.
In corporate news, Sony Financial Group shares surged 36% on their market debut after being spun off from Sony Group. The unit, which includes Sony Life Insurance, Sony Assurance and Sony Bank, was listed at 150 yen per share, valuing it near 1 trillion yen ($6.7 billion). Sony said the separation would allow the financial arm to pursue its own capital needs while still tied to the group brand, as the parent allocates heavy investments to entertainment and semiconductors.
On Wall Street Friday, the Dow Jones rose 0.65%, the S&P 500 gained 0.59% and the Nasdaq advanced 0.44% following key inflation data. The rally ended a three-day losing streak for major indexes but wasn’t enough to prevent weekly declines, with the Nasdaq and S&P recording their first down week in four.
Upcoming Events:
- 02:00 PM GMT – USD Pending Home Sales m/m
- 05:15 PM GMT – USD President Trump Speaks
