Global Markets:
- Asian Stock Markets : Nikkei up 0.04%, Shanghai Composite up 0.52%, Hang Seng up 0.62% ASX up 0.42%
- Commodities : Gold at $3395.35 (-0.9%), Silver at $33.58 (-0.49%), Brent Oil at $62.8 (0.9%), WTI Oil at $59.7 (1.19%)
- Rates : US 10-year yield at 4.307, UK 10-year yield at 4.5120, Germany 10-year yield at 2.5315
News & Data:
- (USD) Trade Balance -140.5B to -136.8B expected
- (CAD) Trade Balance -0.5B to -1.7B expected
Markets Update:
Hong Kong markets led gains in the Asia-Pacific region, with the Hang Seng index rising 2.07% following announcements from China’s central bank and financial regulators to cut key interest rates. These sweeping measures aim to support economic growth amid ongoing trade tensions. Mainland China’s CSI 300 index also saw a boost, gaining 1.01%.
Other major Asian markets largely followed suit. Japan’s Nikkei 225 climbed 0.22% while the broader Topix rose 0.38%. South Korea’s Kospi added 0.32%, although the small-cap Kosdaq slipped by 0.7%. In Australia, the S&P/ASX 200 advanced 0.17%, reflecting cautious optimism across the region.
Market sentiment was lifted further by news that U.S. Treasury Secretary Scott Bessent and trade representative Jamieson Greer are scheduled to meet Chinese officials in Switzerland to address trade and economic tensions. This development could mark a turning point after former President Trump recently raised tariffs on Chinese goods to 145%, prompting China to retaliate with heavy tariffs of its own.
In currency markets, several Asian currencies strengthened against the U.S. dollar amid waning investor confidence in the greenback. “There’s a clear dislocation in the USD’s usual trading behavior,” said Peter Kinsella of Union Bancaire Privee, adding that global investors are reducing exposure to dollar-denominated assets. Meanwhile, U.S. stock futures advanced ahead of the Federal Reserve’s upcoming interest rate decision. Dow futures rose 280 points (0.7%), S&P 500 futures gained 0.8%, and Nasdaq 100 futures jumped 1%. Despite this, all three major U.S. indices closed lower in the previous session.
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