Asian Macro Initial Thoughts: Copper tariff up 50%, Pharma up to 200%, ASEAN summit, RBNZ And Malaysian rate decisions.

NZX opened lower, testing down to 12,810 before finding good support, currently -34pts -0.26% at 12,825 with caution ahead of the interest rate decision.

Overview.
Some concerns that Trump’s tariffs could undermine the current market strength are beginning to appear, although many doubt tariffs will prompt inflation. So today’s FOMC minutes in the US should make interesting reading. Trump continues to attack Powell calling for his resignation say he misled Congress

Trumps announcements are sending mixed messages; including threatening increased tariffs this time on Pharma stocks companies will face 200% tariffs if they do not, within 12 months, move their production to the US. Copper (CMX HGUS opening in Asia -2.09% after rallying yesterday on Trump putting a 50% tariff on imports to the US.

Inflation expectations over the next year have returned to January levels, ie before President Donald Trump launched his global trade war that economists feared would spike prices, according to a New York Federal Reserve June survey released Tuesday. Respondents expect inflation a year from now to be running at 3% rate, the same as in January and down from the peak of 3.6% in March and April. However, they also expect hefty price increases for energy, rent, education and other items.

Amazon -1.84% on the start of its annual four day Prime Day sales event; not a good indication of the state of the US consumer.

ASEAN summit in KL today with US Sec State Rubio, who makes his first trip to Asia looking to smooth over relations with allies and partners rattled by President Donald Trump's tariff strategy. The US State Department says its message is about showing geopolitical support for the region. Another case of Trump sending mixed messages. China's Foreign Minister Wang Yi and Russian counterpart Sergei Lavrov are expected to join the Kuala Lumpur meetings and counter a lot of of what Rubio has to say.

Housekeeping

Last Monday I was on RTHK’s Money Talk with host Chloe Feng and Khoon Goh, Head of Asia Research at ANZ talking about tariffs and implications for Asia and about forthcoming data out of China.

Click the link below if you have a topic you would like discussed to just want to listen to the programme use the link below.

https://www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday I was on RTHK’s The Close, with Nitan Dialis and Peter Guy RTHK’s resident financial expert. We discussed Trump’s One big beautiful bill and the implications for both his voter base and the wider economy. July was the start of the second half of 2025 and both Peter and I think we are going to see more uncertainty and volatility in markets.

If there is a topic you want discussed this week please message me or them via the link, which can also be used to listen to the programme

https://www.rthk.hk/radio/radio3/programme/the_close

Looking for good Independent Research, Showcase Events, Introductions & Marketplace, Reports, blogs, trials, podcasts then click the link

https://www.eri-c.com/

It is MiFID II compliant, you can try Before You Buy, there is Research Evalution. and information can be shared across team or firm. It has Different Views at the Best Price. Buyers transact at offered prices or with vendor permission, by agreement. ERIC's industry low commission rates - charged only to sellers - allow both buyers and sellers to realise better net pricing simulataneously. The differentiated price discovery mechanism entertains private bids and negotiation (on or offline) to broaden demand capture and liquidity.

If you have any problems connecting, call or message me and I will sort your issue out.

For Example last recently Russell Napier was in conversation with Andy Rothman on the topic of Will Trump make China great again. Russell has covered Asia for year and Andy has a unique perspective on China, having lived and worked there for more than 20 years as an American diplomat and a sell-side macro strategist. Andy first went to China as a student in 1980, returned as Foreign Service Officer in 1984, joined CLSA in Shanghai in 2000, and then went to the buy side with Matthews Asia in 2014. This year, Andy founded Sinology LLC, advising institutional investors and corporate directors on the risks and opportunities in the Chinese economy, and on navigating the rising tensions in US-China relations. This follows on from Andy’s recent webinar after a recent visit to China in early April you can still go to the website to listen to that recording if you didn’t hear it live.

Mark Tinker recently posted the Latest thoughts from Market Thinker - 'From Big Beautiful Bill to Bunker Busting Bombs. Perspectives are shifting - Monthly Market Thinking July

You can find the whole article here

Market opening indications and data

New Zealand
NZX opened lower, testing down to 12,810 before finding good support, currently -34pts -0.26% at 12,825 with caution ahead of the interest rate decision.
Data Due Late Morning
RBNZ Interest Rate Decision No Change from 3.25%

Australia
ASX to open lower, futures -7pts -0.08% at 8,571 after the Reserve Banks decision to keep rates unchanged caught most people off guard. Energy name mixed; oil higher over night but after market US API data showed stock rose much more than expected. Miners mixed with copper producers in focus as copper futures surged overnight as Trump threatened a 50% tariff. Pharma weak on Trump’s threat of 200% tariffs if they don’t move production to the US.

PM Albanese to visit China starting this Saturday, with stops in Shanghai, Beijing, and Chengdu, as Beijing seeks to deepen cooperation on AI, green energy, and the digital economy.
Data Due
RBAs Hauser Speaks pre market
After the Market Open
Building Permits Final May MoM vs -4.1% Apr (F/cast is 3.2%)
Private House Approvals Final May MoM vs 5.9% Apr (F/cast is 0.5%)
RBA Chart Pack
After Lunch
RBAs Hunter Speaks

Japan
Market to open higher but upside likely to be mutes, with mixed messages from Trump.
Nikkei 225 Futures indicate up 130pts 0.33% at 39,950
Chicago Futures -10pts -0.02% at 40,045
Yen closed 146.58 in US. Trading 146.61 in early trades
Data Due Lunchtime
6-Month Bill Auction vs 0.4938%
Afternoon
Machine Tool Orders Jun YoY vs 3.4% May (F/cast is 3.5%)

S Korea - No Data Due
Market to open lower with continued concerns over tariffs and whether the government can negotiate a better deal.

Stocks closed higher on Tuesday; trade volume was heavy at 735.5 million shares worth 13.2 trillion won ($9.65 billion), with gainers outnumbering decliners 643 to 240. Foreign investors and institutions net bought while individuals net sold.
The local currency was quoted at 1,367.9 won against the greenback at 3:30 pm Tuesday, down 0.1 won from the previous session.

Taiwan - No Data Due
Market to open higher with support for Tech. The trade surplus surged as many sought to bring forward orders to try and beat Trump’s latest tariffs. The concerns remains on what happens next. Also helping inflation dropped to its lowest since 2021. But Trump negotiations remain a key swing factor.
Data out after market Tuesday
Balance of Trade Jun $12.07B vs $12.62B May (F/cast is $9.5B)
Exports Jun 33.7% YoY vs 38.6% May
Imports Jun 17.3% YoY vs 25% May
Inflation Rate Jun 0.01% MoM vs -0.14% May (F/cast is 0.1%)
Inflation Rate Jun 1.37% YoY vs 1.55% May (F/cast is 1.4%)

China
Market to open flat, the Golden Dragon Index closed up 53pts 0.71% at 7,485 but expect caution ahead of the Inflation and PPI data due for release on the open. China warned the US against reigniting trade tensions by reinstating tariffs on Chinese goods next month and threatened retaliation against countries that align with the US to exclude China from supply chains
Spot USD/CNY opening -0.0001pts unchanged
Spot USD/CNY hiked 15 bps to close at 7.1732 Tuesday (8th). As of 4:44 pm, USD/CNY in the night session added 14 bps. USD/CNH lifted 52 bps to 7.1723, 9 bps above USD/CNY.
Data Due
Inflation Rate Jun YoY vs -0.1% May (F/cast is 0.1%)
Inflation Rate Jun MoM vs -0.2% May (F/cast is zero %)
PPI Jun YoY vs -3.3% May (F/cast is -3%)

Hong Kong - No Data Due
Market to open lower, ADR’s indicate -61pts -0.26% at 23,826 with only HSBC, CLP, SHKP and CCB in the green. Also the release of Chinese Inflation and PPI data on the open adding to the caution.
Futures indicate -61pts -0.3% at 24,088
Turnover on Tuesday HK$213.289B vs HK$193.79B Monday

Macau - No Data Due
As of 11 a.m. Tuesday (8th), the number of inbound tourists to Macau this year surpassed 20 million person-time, 26 days earlier than last year, with an average of 106,000 person-time per day, Macau's official announcement stated. Maria Helena de Senna Fernandes, Director of the Macao Government Tourism Office, described the figures as very encouraging and emphasized that the authorities might reassess the annual tourist forecast. The Director described the figures as very encouraging but maintained a cautiously optimistic attitude towards the number of visitors during the summer holidays. She emphasized that the authorities will continue to collect information on hotel occupancy rates and preliminary forecasts during the summer holidays, and also hope that travel agencies will introduce more new routes such as study tours.

Singapore - No Data Due

Malaysia - Data Due
Interest Rate Decision 25 bpts cut from current 3% expected
Malaysia reaffirmed its commitment to a “balanced” and “mutually beneficial” trade relationship with the US despite President Trump’s announcement of a 25% tariff on Malaysian goods starting August 1. The Ministry of Investment, Trade and Industry acknowledged Trump’s concerns over trade imbalances and market access but stressed that unilateral tariffs are “disruptive to business operations, supply chains, and investments” in both countries. It pledged to take “all necessary steps” to protect Malaysian businesses and consumers, adding that Kuala Lumpur would continue engaging with US counterparts to clarify the tariff's scope and seek a resolution.

Indonesia - Data Due
Retail Sales May YoY vs -0.3% Apr (F/cast is 0.3%)

Philippines - No Data Due

Thailand - No Data Due
Thailand's Cabinet withdrew a draft law to legalize casinos and entertainment centers, saying it needs more time to communicate with the public, but the government did not clarify when the cabinet will reconsider the bill. The Thai government previously aimed to boost its tourism industry by creating a large gaming industry, and planned to review a draft law to legalize gaming on Wednesday (9th). However, with the suspension of Prime Minister Paetongtarn Shinawatra from duty by the Constitutional Court and the withdrawal of the Bhumjaithai Party, the second largest party in the ruling coalition, from its coalition, it left the government with little majority in parliament, meaning that the passage of the bill is at risk.

Thai Finance Minister Pichai Chunhavajira said Tuesday that he was “a little shocked” by the latest tariff rate but remained “confident” that it will drop to levels similar to those in other countries, according to Reuters. Thailand faces a 36% tariff on its exports to the US, one of the steepest rates among the 14 nations Trump mentioned Monday, unchanged from the April level.

Myanmar - Data Scheduled this week
Cambodia - No Data Scheduled this week
Vietnam - No Date Scheduled this week

India - Data Due
M3 Money Supply 27 Jun YoY vs 9.8% Prior

Europe
Eurozone ECB’s Lane & Guindos Speak
Germany 15-Year Bund Auction
France No Data Due
United Kingdom Treasury Gilt 2035 Auction, BoE Financial Stability Report

United States
Futures Dow up 16pts 0.04%, S&P 0.03% and NDX 0.1%
After Market
API Crude Oil Stock Change 4 Jul 7.1m vs 0.68m (Consensus was -2.8M)
Data Due MBA Data (30-year Mortgage Rate, Applications, Market Index, Refinance Index, Purchase Index), Wholesales Inventories, EIA Oil Stocks Change, NY Fed Treasury Purchases Bill 0 to 1 yrs, 10-Year Note Auction, FOMC minutes.

HEADLINES & NEWS

AUSTRALIA & NEW ZEALAND
G8 Education, the embattled childcare provider will install CCTV cameras in all its centres and allow parents to preference who changes their child’s nappies, as it responds to mounting pressure from investors following revelations that an accused child sexual abuser worked at four of its centres.

Telstra, is expected to cut hundreds of jobs this week, taking an axe to its headcount amid pressure from investors to lift returns and trim costs.

Qantas hack victims could get compensation, say experts. A week after Qantas disclosed the loss of data of up to 6 million customers, consumer law experts say the airline could ultimately face penalties.

Craig Hutchison gears up for $3.2m racing expansion. ASX-listed Sports Entertainment Group is acquiring the brand, audio and broadcasting assets of radio station RSN Racing and Sport.

JAPAN

Bank of Japan board member Junko Koeda said she was keeping a close eye on possible second-round effects on underlying inflation from recent rises in the price of rice, Bloomberg News reported on Wednesday. In an interview conducted on Monday, Koeda said it was inappropriate to predict now how soon the BOJ could resume interest rate hikes due to uncertainty over the economic outlook, Bloomberg reported. "Recent hard data on inflation shows prices of rice and other food items are rising more than expected compared with the time of the BOJ's May meeting, so I am watching developments carefully," Koeda was quoted as saying. Such cost-push pressures from higher food costs are the main drivers of Japan's consumer inflation, which is moving around 3% recently, she said. The BOJ's weighted median average, which is a key measurement of underlying inflation, remains short of the central bank's 2% target, Koeda was quoted as saying. But Koeda added she was "keeping an eye out" on how price moves in Japan's staple rice could affect households' inflation expectations and underlying inflation, Bloomberg reported.

Nissan Motor (7201.T) which dropped 6% on Tuesday on news of CB issuance, is scaling back production plans for its new Leaf electric vehicle model because China's rare earth export restrictions have led to a shortage of parts, Kyodo News reported on Tuesday. The revised production of the new model, which is set to launch later this year, could complicate the Japanese carmaker's restructuring plans that include closing seven factories and reducing its workforce by 15%. China's rare earth curbs have also led another Japanese automaker, Suzuki Motor (7269.T), opens new tab, to temporarily suspended production of its flagship Swift subcompact, sources told Reuters last month. Another -VE for the company.

Sentiment in Japan's service sector improved slightly in June, a government survey showed on Tuesday, as solid demand for summer clothing and leisure offset the gloom from U.S. tariffs. But corporate bankruptcy cases in the first half of this year rose 2.4% from a year earlier to hit a 12-year high of 5,003, a survey by private think tank Teikoku Databank showed, as rising raw material and labour costs hit margins. The batch of data highlight the fragile nature of Japan's economy, which is expected to see the strain from U.S. tariffs intensify in coming months, analysts say, with U.S. President Donald Trump announcing on Monday 25% tariffs on goods from Japan starting August 1. An index measuring sentiment among firms close to consumers stood at 45.0 in June, up 0.6 point from May, the government's "economy watchers" survey showed. An index gauging sentiment three months ahead stood at 45.9 in June, up 1.1 points from May to mark the second straight month of improvement, the survey showed. "Temperatures are rising so more customers are buying summer goods," a clothing outlet in Hokkaido, northern Japan, was quoted as saying in the survey. A drugstore in western Japan said sales volume was rising despite price hikes. Japan's economy shrank in the first quarter and analysts expect the hit from U.S. tariffs to intensify later this year, stoking fears of a recession - defined as two straight quarters of contraction. Data on Monday showed real wages in May fell at the fastest pace in nearly two years. The government on Monday made the bleakest assessment of the economy in nearly five years, after an index used to determine economic booms and busts slid in May. Economic revitalisation minister Ryosei Akazawa said bumper wage hikes and government stimulus measures will likely underpin a moderate economic recovery. "But the risk of U.S. tariff measures directly and indirectly hurting the economy is heightening," he told a news conference on Tuesday.

U.S. Treasury Secretary Scott Bessent will skip a Group of 20 finance officials meeting in South Africa next week, sources familiar with his plans told Reuters, but will attend the World Expo 2025 in Osaka, Japan, according to a Treasury spokesperson. Bessent's decision to miss the G20 finance ministers and central bank governors meeting marks the second time this year he has opted against attending a G20 meeting in South Africa, which is serving as the group's president this year.

SOUTH KOREA
South Korea looked to Washington for further negotiations, hoping to blunt the impact before the measures take effect next month. Unveiling a new deadline of Aug. 1, which had previously been July 8, the letter signed by US President Donald Trump indicated that most South Korean goods entering the US will be charged a tariff of 25 percent. The rate would not stack on top of sector-specific tariffs — such as for cars, auto parts and steel products, among others — according to Trump's posts on Truth Social on Monday. The letter also indicated that the White House would "perhaps, consider an adjustment to this letter," adding that the tariff rate may be "modified.” Seoul interpreted the letter as conveying Washington's willingness to continue negotiations until the delayed deadline. Kim Yong-beom, director of national policy for President Lee Jae Myung, said in a contingency meeting he convened that Seoul was able to buy more time for tariff talks, adding Washington's letter did not translate into an immediate tariff hike. According to the presidential office, Kim also said that the importance of serving the national interest outweighs that of reaching a deal swiftly.

Hanwha Ocean Co., a major South Korean shipbuilder, has secured a contract to provide maintenance, repair and overhaul (MRO) services for the US Navy ship Charles Drew, industry sources said Tuesday. The company won the US Navy's regular MRO project for the Charles Drew, a dry cargo and ammunition ship assigned to the Navy's 7th Fleet, the sources said. The non-combat vessel is expected to arrive at Hanwha Ocean's Geoje shipyard, about 330 kilometers southeast of Seoul, later this month and be delivered back to the US Navy by the end of the year. This marks the third time Hanwha has won an MRO project for a US Navy vessel.

As the global transition to electric mobility nears a tipping point, securing leadership in core safety technologies will determine whether Korea can emerge as a frontrunner in the future industry, experts said Tuesday at a global forum on green mobility. The Global e-Mobility Network Forum brought together industry experts, academics and government officials in Seogwipo, Jeju Island, to explore strategies for advancing Korea’s electric mobility sector. The event hosted over a hundred attendees, including international delegates. The forum served as an official prelude to the International e-Mobility Expo 2025, which runs from Wednesday to Saturday in Seogwipo.

Expectations are high that President Lee Jae Myung’s push to revitalize Korea’s capital markets could be bolstered by reforms to the country’s dividend tax system, potentially unlocking value through higher payouts. Under the current tax regime, if annual dividend income exceeds 20 million won ($14,640), it is combined with other financial income such as interest and pensions for comprehensive tax assessment, resulting in a combined effective tax rate of up to 49.5 percent. This high tax burden discourages investors, especially large shareholders, many of whom are also company insiders or top executives, from accepting dividend payouts. This contributes to the persistent low dividend payout ratios that leave Korea’s stock market undervalued relative to global peers. “High dividend taxes drive management and major shareholders to keep payouts low or expand subsidiaries to avoid heavy tax burdens,” President Lee said during his visit to the country’s main bourse operator Korea Exchange on June 11. Korea’s dividend payout ratio stands around 26-27 percent, much lower than 42 percent in the US, 36 percent in Japan and 31.3 percent in China.

To counter this, he cited a bill proposed by Rep. Lee So-young of the ruling Democratic Party of Korea, designed to promote higher dividends through a revised tax approach. The proposed bill seeks to apply a separate, lower tax rate to dividends received from listed companies with payout ratios of 35 percent or higher, independent of the existing comprehensive income tax system. Under this plan, dividends up to 20 million won would be taxed at 15.4 percent, amounts between 20 million and 300 million won at 22 percent, and dividends exceeding 300 million won at 27.5 percent. This reform could significantly reduce the maximum tax rate from nearly 50 percent to around 25 percent for major shareholders, providing a strong incentive to increase dividend payouts. But the government says smaller shareholders would also benefit, as higher payouts tend to improve dividend yields and enhance investment appeal.

Samsung Electronics said Tuesday that it has signed an agreement to acquire Xealth, a US-based digital health care company, in a move to strengthen its connected care services across wearable devices, including Galaxy smartphones, smartwatches and the Galaxy Ring. The acquisition marks a significant step in Samsung’s long-term vision for Samsung Health, which aims to integrate wellness and medical care to help Galaxy users manage their health in daily life and prevent disease.

After several months of decline, the consumer price indexes for soju and beer at restaurants and bars in South Korea are beginning to rise again. According to data released Tuesday by Statistics Korea, the consumer price index for soju served at restaurants rose 0.1 percent in June from a year earlier to 115.75, marking the first increase in 10 months. The index is based on 2020 prices, with a reading above 100 indicating a rise in prices. The index for beer served at restaurants also rose, climbing 0.5 percent in June. This marked a reversal after seven straight months of decline since December last year. Retail alcohol prices showed a similar pattern.

The heirs of the late Samsung Group chairman Lee Kun-hee have sold a luxury property in central Seoul for 22.8 billion won, or about $16.7 million, in what appears to be part of a broader effort to pay South Korea’s largest-ever inheritance tax bill. According to data from the Ministry of Land, Infrastructure and Transport’s official property transaction database, the sale was finalized on June 13. Court registry records confirm that the villa, located in the Itaewon neighborhood of Yongsan district, was jointly owned by Lee’s widow Hong Ra-hee, honorary director of the Leeum Museum of Art, and their three children: Lee Jae-yong, executive chairman of Samsung Electronics, Lee Boo-jin, president of Hotel Shilla, and Lee Seo-hyun, president of Samsung C&T’s fashion division. The buyer is believed to be a private-sector entrepreneur. As of now, the property title has not been formally transferred. The residence sits on 1,073 square meters of land and spans about 497 square meters in total floor area across three levels. The late Lee purchased the home in 2010 for approximately 8.28 billion won. The recent sale price marks a 175 percent increase, averaging roughly 70 million won per pyeong, a traditional Korean land measure equivalent to 3.3 square meters. It is located near a cluster of high-end homes informally known as the “Samsung family town.”

TAIWAN
Taiwan is still hoping to reach a deal with the US in ongoing tariff talks after it was not among the first batch of 14 nations to receive tariff notification letters. The US issued its first batch of tariff notification letters on Monday, but Executive Yuan spokeswoman Michelle Lee yesterday confirmed that Taiwan has yet to receive one. Vice Premier Cheng Li-chun and Minister Without Portfolio Yang Jen-ni, who lead the Office of Trade Negotiations, are in the US negotiating the tariff issue, the Executive Yuan said yesterday. An anonymous source said that the high tariff rates for this first group of nations are examples of negotiations stalling, failing or having been deemed unnecessary to continue. The US has reportedly indicated that negotiations with Taiwan are progressing positively, the source said. In a statement issued yesterday, the Ministry of Foreign Affairs said that Taiwan and the US are engaged in discussions on tariffs and that negotiators continue to seek the best outcome. Developments would be announced to the public when available, the ministry said. Meanwhile, the Presidential Office yesterday said that President William Lai held a videoconference call with Taiwan’s negotiation team in the US at midnight on Monday. In the 50-minute call, Lai expressed his gratitude for their months of work, Presidential Office spokesperson Karen Kuo said. Lai emphasized that Taiwan has always sought to maintain positive relations with the US based on mutual benefit, and hope that the negotiations would balance trade and strengthen cooperation between the two nations, Kuo said. The core mission of Taiwan’s negotiators is to safeguard the national interest, public health and food security, Lai told them, she said.

Taiwanese exports last month surged to an all-time high, buoyed by robust global demand for artificial intelligence (AI) technologies, early stocking of next-generation mobile devices and accelerated shipments ahead of potential US tariff changes, the Ministry of Finance said yesterday. Outbound shipments rose 23.5 percent year-on-year to US$53.32 billion, marking the 20th straight month of expansion, led by advanced tech components and high-end servers used in AI applications, Department of Statistics Director-General Beatrice Tsai told a news conference in Taipei. “The performance can only be described as red-hot, bucking the usual seasonal lull,” Tsai said. I believe many of that is brought forward orders to try an avoid tariffs.

Gudeng Precision Industrial, the sole extreme ultraviolet pod supplier to TSMC, yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today.

Advantech expects stable revenue growth in the second half of this year, after the industrial computer maker yesterday posted a 23.36 percent annual increase in first-half revenue. Revenue in the first six months of the year totaled NT$35.18 billion (US$1.21 billion), up from NT$28.52 billion a year earlier, company data showed Despite the challenges in the second quarter, such as high US tariffs, geopolitical tensions and exchange rate fluctuations, the company’s performance was in line with expectations, Advantech chief financial officer Eric Chen said in a statement.

Quanta Computer yesterday reported that revenue last month surged 70.6 percent year-on-year, and said it aims to begin shipments of Nvidia Corp’s GB300 servers as early as September. Revenue last month reached NT$189.87 billion (US$6.53 billion), a record high for June, bringing first-half revenue to NT$989.79 billion, up 73.99 percent from a year earlier. Quanta, which produces servers powered by Nvidia’s artificial intelligence (AI) accelerators, said the production of the latest GB300 model remains challenging due to its higher power requirements.

President William Lai yesterday pledged continued support for Haiti, particularly in food aid and healthcare, as the Caribbean nation faces ongoing social and economic challenges. Speaking at a meeting with Haitian Minister of Foreign Affairs Jean-Victor Harvel Jean-Baptiste, Lai said Taiwan would step up bilateral cooperation to help improve Haiti’s social infrastructure. Taiwan would continue supporting Haiti through initiatives aimed at improving healthcare, food security and overall development, he said.

CHINA
In June, the retail sales of the passenger car market of China numbered 2.084 million units, up 18.1% YoY and up 7.6% MoM, data released by the China Passenger Car Association (CPCA) showed. In 1H25, the aggregate retail sales were 10.901 million units, up 10.8% YoY. During the month, the retail sales of new energy passenger cars in China reached 1.111 million units, up 29.7% YoY and up 8.2% MoM, data showed. In 1H25, the total retail sales were 5.468 million units, up 33.3% YoY.

Porsche reported that it delivered 146,391 vehicles globally in 1H25, notching a 6% decrease YoY, among which the North American market grew by 10%, while the Chinese market descended 28%. Porsche issued a statement saying that the growth in North America was mainly due to higher product availability in the market and price protection offered due to increased import tariffs.

The U.S. House of Representatives committee on China on Tuesday sent a letter to the directors of the FBI and national intelligence, renewing its concerns about GenScript Biotechnology's (1548.HK) work with U.S. companies, given its ties to China. In the letter, which was seen by Reuters, committee chair John Moolenaar and ranking member Raja Krishnamoorthi asked for updated intelligence and law enforcement information involving the global biotechnology company and affiliates Bestzyme, Legend and ProBio.

More than two dozen people were missing after torrential rain in China’s Tibet region triggered a deluge in the Bhote Koshi River, washing away the “Friendship Bridge” that links China and Nepal, officials said yesterday. Weather forecasting experts said the flood might have been the result of an overflowing glacial lake in Tibet since there had been no heavy rainfall in the immediate catchment area of the river in the preceding 24 hours. At least 18 people are missing in Nepal, while Xinhua news agency said that 11 people were unaccounted for on the Chinese side of the mountainous border region.

HONG KONG

The Hong Kong Monetary Authority (HKMA) has announced enhancements to the offshore RMB bond repurchase (repo) business, including supporting the rehypothecation of bond collaterals during the repo period. In consultation with relevant Mainland authorities and taking into account industry feedback, the HKMA will allow rehypothecation of bond collateral during the repo period, bringing this into alignment with international market practice. The enhancement will facilitate more efficient use of collaterals, reduce the financing costs for market participants, and enhance the efficiency of liquidity management. Bond collaterals can be re-used during the repo period in four specific use cases: for re-use in offshore repo transactions; as collateral for the HKMA's RMB Liquidity Facility; as margin collateral at OTC Clearing Hong Kong Limited (OTCC); and for cash bond trading through Northbound Bond Connect. With the enhancement, settlement in other currencies (including HKD, USD, and EUR) will also be supported, with a view to facilitating participating institutions' multi-currency funding activities by collateralizing onshore RMB bond holdings, enriching their liquidity management tools, and hence increasing the attractiveness of onshore bonds. The above arrangements will be officially launched on August 25, 2025.

IPO
Lens(06613.HK), which will be listed today, opened up 0.1% to $18.2 on gray market, and last printed at $18.8, up 3.4% from the listing price, on volume of 6.39 million shares and turnover of $122 million, according to PhillipMart data.

Buybacks
TENCENT (00700.HK) repurchased 995,000 shares of the company on July 8 (today) at the Hong Kong Stock Exchange, with prices ranging from HKD500 to HKD505 per share, involving approximately HKD500 million. Since the approval of the repurchase authorization resolution on May 14, 2025, TENCENT has cumulatively repurchased 35.457 million shares, accounting for about 0.38586% of the share capital.

HSI Short Selling Tuesday 16.6% vs 17.9% Monday
Top shorts China Shenhua (1088) 49%, SHKP (16) 45%, Henderson Land (12) 44%, Zijin Mining (2899) 41%, BYD (1211) 40%, MTRC (66) 37%, Chow Tai Fook (1929) 37%, Li Auto (2015) 37%, Tingyi (322) 34%, Ali Health (241) 34%, Hansoh Pharma (3692) 34%, China Overseas (688) 33%, China Res Land (1109) 31%, Sands China (1928) 29%, Zhong Sheng (881) 28%, Xingyi Glass (868) 26%, Bud APAC (1876) 26%, CK Asset (1113) 26%, Ping An (2318) 26%.

WATCH
HK TECH VENTURE (01137.HK) announced that, for the first six months ended 30 June 2025, the Group achieved a total GMV on Order Intake of approximately HK$4.183 billion, representing a mild year-on-year decrease of 1.2%. Average Daily GMV on Order Intake decreased slightly by 0.9% reaching HK$23.1 million.

POWERLONG (01238.HK) announced that the contracted sales value of the Group in June 2025 amounted to approximately RMB554 million, down 51.49% YoY, with the contracted sales area of 43,380 square meters.

CN Silicon Material Storage Said to Start Recently; TONGWEI Response: No More Concrete News Today, photovoltaic stocks inclined. FLAT GLASS (06865.HK) 8.6% and GCL TECH (03800.HK) 10.8% each, while XINYI SOLAR (00968.HK) 5.4%. There have been market rumors that a plan to collect and store silicon materials might start soon, according to Chinese media. However, a representative from TONGWEI (600438.SH) said there are many news in the market, but there is no more definitive information here.

BYD COMPANY (01211.HK) announced that it recently held a ceremony at its Rayong plant in Thailand to mark the delivery of the 90,000th new energy vehicle (NEV) in the country and the first anniversary of the plant's operation. During the ceremony, BYD officially delivered the 90,000th NEV, the Denza D9, to a customer and rolled out the first Thailand-produced BYD Destroyer 05 from the Thai plant. The Rayong plant in Thailand, as BYD's global intelligent benchmark base, has purportedly achieved full-process localized production with an annual capacity of 150,000 vehicles, and is steadily advancing the deep integration of the supply chain.

HENDERSON LAND (00012.HK) announced that it proposes through its indirect wholly-owned subsidiary Happy Ever Holdings Limited to issue HKD-denominated guaranteed convertible bonds. The bonds will only be offered to professional investors and won't be offered or sold to the public. Also, they won't be placed to any connected person of HENDERSON LAND. They will only be offered and sold in an offering outside the US in reliance on Regulation S of the US Securities Act. The issuance of shares upon conversion of the bonds is not expected to result in a material change to the percentage shareholdings of the controlling shareholder of HENDERSON LAND. The company intends to use the net proceeds from the issuance for general corporate purposes and/ or refinancing.

Q TECH (01478.HK) announced that the sales of camera modules for mobile phones totaled 32.648 million units in June 2025, up 0.8% MoM or 1.5% YoY. The slight YoY increase was mainly attributable to the group's continued focus on a product strategy centered on mid-to-high-end camera modules for mobile phones and camera modules for other fields.

XIAOMI-W (01810.HK) has begun utilizing its new Shenzhen headquarters, which was topped out at the end of 2023. A self-proclaimed XIAOMI-W employee, 'Sun Cun', posted on Weibo today (8th) saying that XIAOMI-W's new headquarters in Shenzhen, officially named 'Shenzhen Xiaomi Tower' has started operations, with an opening ceremony scheduled for 18 July. Photos released by 'Sun Cun' show employees have already moved into the new headquarters, and that the Mi Home store in the building is the largest in the world.

Tuesday closings in EUROPE & US
DAX 0.55%, CAC 0.56%, FTSE 0.54%
European markets opened slightly higher and markets traded sideways around flat for most of the day before rallying in the late afternoon. Banks lead the gains while retail stocks were lower. Investors taking Trump’s announcements on tariffs in their stride but European borrowing costs ticked higher. Investors watching to see if Europe makes a deal with the US in the next couple of weeks.

Porsche rebounding from early losses after announcing said its China deliveries slumped 28% in the first half of 2025. The YoY decline was due to challenging market conditions, particularly in luxury, and “intense competition,” Porsche said. Deliveries tumbled 23% in Germany and 8% in the rest of Europe, which it attributed to a strong performance last year. However, North America sales jumped 10% due to “higher product availability” and price protection — honoring a previously agreed price — offered in the first half amid increased import tariffs.

DOW -0.37%, NDX 0.03%, S&P -0.07%, Russel 2K 0.66%
US markets opened lower and traded around flat as Trump said there would be no exceptions to the August 1 tariff date. But then added “If they call up and they say something a different way, we’re going to be open to that.” His comments came after he posted letters to countries announcing new tariffs on their respective imports. He also announced a 50% tariff on copper imports. Traders remain cautious on the mixed messaging. Could it be that he is getting a senile as former President Biden? National Retail Federation Chief Economist Jack Kleinhenz said tariffs and other policies are creating anxiety and confusion. Mark Mahaney, head of internet research at Evercore ISI said consumers are going to have to absorb some of the costs from higher tariffs; retailers will also bear some which is likely to impact the mid, small sized retailers most. Earnings season gets underway in the coming weeks and there are likely to be warning signs, even if it is only firms not prepared to give forward guidance!

Nvidia up 1% and approaching a $4 trillion market cap other tech +VE but Banks weak on HSBC downgrades. Interesting to see an increasing number of stock downgrades.

The central bank’s monthly consumer survey for June showed respondents expect inflation a year from now to be running at 3% rate, the same as in January and down from the peak of 3.6% in March and April. However, respondents still expect hefty price increases for energy, rent, education and other items.

Sunrun, First Solar, Enphase Energy were under pressure after President Donald Trump issued an executive order calling for the roll back of green energy subsidies, including to “build upon and strengthen” some of the changes in the recent tax bill.

Shares of Amazon rose slightly in the premarket session as the e-commerce seller’s annual four-day Prime Day sales event commenced.

Banks JPMorgan Chase -3.15%, Citigroup 2.32% Wells Fargo -0.91%, Amex -1.78%
Ecommerce Meta 0.32%, Apple 0.03%, Amazon -1.84%, Netflix -1.11%, Disney -1.09%, Zoom Comm 0.32%%, Alphabet -1.35% and Microsoft -0.22%,
Tech NXP Semi 2.81%, Nvidia 1.11%, Micron 3.75%, AMD 2.24%, Skyworks 2.3%
Industrial/Discretionary Boeing -0.05%, Caterpillar 0.71%, Simon Property -0.96%, Kohl’s 0.67%, Gap 0.04%, United Airlines 0.12%, Carnival -1.6%, Wynn Resorts 1.65%,
Auto Ford 0.78%, GM 0.71%, Tesla 1.32%,
Energy Chevron 3.96%, Exxon Mobil 2.77%,
Consumer Staples Campbell Soup 0.75% General Mills flat, JM Smucker -0.06%

DAILY DATA
USD stronger, Bitcoin 0.66% at 108,876.00, VIX -5.51% at 16.81,
US T10 up 1 bpts to 4.407% and T2 flat at 3.903% and T30 flat at 4.93%
OIL Brent 0.82%, WTI 0.59% despite OPEC+’s additional production although after market, oil stocks reported much higher than expected.
Gold futures -0.8%, Silver -0.3%, Copper -3.39% Platinum -0.8%, Palladium flat.