Asian Macro Initial Thoughts: Tariff announcements spook markets, made worse by threats. RBA rate decision in focus. Samsung OP misses as US restrictions on AI chips to China hurts
NZX opened flat and seeing choppy trading around flat. 12,730/70, currently -2.6pts -0.02% at 12,762
Overview.
Investors are getting spooked regarding tariffs as Trump announces 25% tariffs for Japan and South Korea (their ETF’s sold down) in the trade letters, if they don’t make a deal by August 1 and threatened an additional 10% tariff on countries that align with the “Anti-American policies of BRICS,” which refers to emerging market countries including Brazil, Russia, India and China. Trump did not elaborate on any specific policy of BRICS. He added if they made more goods in the US their tariffs would come down. He also shared screenshots from letters through the day showing their tariff rates if they don’t make deals by August 1; Malaysia 25%, Kazakhstan 25%, South Africa 30%, Bangladesh 35%, Cambodia 36%, Laos 40% and Myanmar 40%, Thailand 36% and Indonesia 32%. They can’t be that happy to learn about their new tariffs this way. Oh and if they look to take reprisal steps that would be met with a like-for-like response.
That followed Treasury Secretary Scott Bessent announcing that a number of tariff deals would be announced in the next few days.
In response to Trumps comments and expecially those directed at BRICS; Brazil's President Lula tells Trump that the world does not want ‘emperor'.
As we are now getting some detail about the size of the tariffs, people are now expecting the impact of tariffs will be evident in the coming months and some are talking about stagflation.
Tesla -7% after CEO Elon Musk announced the formation of a new political party, the "America Party", aiming to secure 2-3 Senate seats and 8-10 House seats to act as a pivotal minority in contentious legislation, ensuring Congress serves the true will of the people. It looks like that Musk is picking a fight and it remains to be seen if he can win. Key will be that the Big Beautiful Bill defers many of the cuts to Medicare and Food programmes until after the mid term elections. In the past, third political parties, sponsored by individuals have failed to gain traction.
The latest American Association of Individual Investors survey showed optimism jumped to 45.0% from 35.1% the week before and was above the long-term historical average of 37.5% for the first time since May. The most bullish since December 2024. Bearish opinion slumped to 33.1% of investors, down from 40.3% one week earlier, and only a little above the long-run historical average of 31.0%. Only 21.9% of investors said they were neutral about the short-term outlook for stocks, far below the historic average of 31.5%. Asked their opinion of the “One Big Beautiful Bill” passed by Congress and signed into law by President Trump, nearly two thirds of individual investors, or 64.6%, said it raises the national deficit too much. Less than a fifth, or 18.2%, said they generally liked it, while 7.2% said it cut government spending too much.
Press reports that Apples top executive in charge at its Al models is leaving for Meta’s ’super intelligence group’, not a good sign.
Housekeeping
On Monday I was on RTHK’s Money Talk with host Chloe Feng and Khoon Goh, Head of Asia Research at ANZ talking as ever about the tariffs and the key point is that investors don’t know the details of these talks and they are being rushed .
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 next 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 flat and seeing choppy trading around flat. 12,730/70, currently -2.6pts -0.02% at 12,762
Data Due
1 year Bill Auction vs 3.113%
3 month Bill Auction vs 3.205%
6 month Bill Auction vs 3.1862%
Australia
ASX to open lower, futures indicate -47pts -0.55% at 8,526 with energy names higher, miners mixed and tech weak. Expect cautious trading ahead of the RBA rate decision. Australian dollar down slightly, fetching 64.99 US cents around 5.50am AEDT.
Data Due After the Open
Business Confidence Jun vs 2 May (F/cast is -5)
Late MorningRBA Rate Decision 25bpt cut expected from current 3.85% to 3.6%
RBA Press Conference
Japan
Market to open lower
Nikkei 225 Futures indicate -253pts -0.6% at 39,335
Chicago Futures -85pts -0.21% at 39,455
Singapore Nikkei Futures -235pts -0.59% at 39,350
Yen closed 146.00 in US. Trading 145.93 in early trades
Data Out 10 minutes Pre Market open
Current Account May vs ¥2258B Apr (F/cast is ¥3000B)
Bank Lending Jun YoY vs 2.4% May (F/cast is 2.4%)
Lunchtime
5-Year JGB Auction vs 0.982% prior
Afternoon
Eco Watchers Survey Current Jun vs 44.4 May (F/cast is 44.7)
Eco Watchers Survey Outlook Jun vs 44.8 May (F/cast is 45)
S Korea
Market to open lower with concerns about the tariff impact. Samsung Q2 operating profit headline 4.6T Won vs 6.18T F/cast as sales hit by US restrictions on AI chips to China; expect weakness. ADR’s had already indicated significant weakness due to the tariff imposition
Monday stocks closed higher trade volume was moderate at 349.78 million shares worth 10.11 trillion won ($7.4 billion), with losers beating winners 459 to 427. Individuals net bought while institutions and foreigners’ net sold.
The local currency was quoted at 1,367.80 won against the greenback at 3:30 pm Monday., down 5.5 won from the previous session.
Data out at noon
3-Year KTB Auction vs 2.42% prior
Taiwan
Market to open lower with as tariff negations are on-going.
Data Due after Market
Balance of Trade Jun vs $12.62B May (F/cast is $9.5B)
Exports Jun YoY vs 38.6% May
Imports Jun YoY vs 25% May
Inflation Rate Jun MoM vs -0.14% May (F/cast is 0.1%)
Inflation Rate Jun YoY vs 1.55% May (F/cast is 1.4%)
China - No Data Due
Market to open higher, as the Golden Dragon Index closed up 44pts 0.59% at 7,432
Spot USD/CNY opening down 0.0026pts -0.04% at 7.1769
Out after market Monday
Foreign Exchange Reserves Jun $3.31T vs $3.285T (F/cast is $3.32T)
FT reports China building up Nickel Reserves since December 2024, a key element of EV Batteries and for electroplating consumer goods and aerospace.
Hong Kong
Market to open lower, ADR’s indicate -49pts -0.21% at 23,838 with mixed ADR’s (in the red CLP, CCB. ICBC, Bank of China HK, Bank of China, Tencent, CK Hutch and Baba)
Futures indicate -61pts -0.3% at 23,827
Turnover on Monday HK$193.79B vs HK$267.808B Friday
Data Out After Market Monday
Foreign Exchange Reserves Jun $431.9B vs $431B May
Macau - No Data Due
Singapore - Data Due
MAS 12 week Bill Auction vs 1.88% prior
MAS 4 week Bill Auction vs 1.91% prior
Malaysia - No Data Due
Indonesia - Data Due
Consumer Confidence Jun vs 117.5 May (F/cast is 123)
Philippines - Data Due pre market
Unemployment Rate May vs 4.1% Apr (F/cast is 4%)
Industrial Production May YoY 4.3% Apr (F/cast was 3%)
Thailand - No Data Due
Myanmar - No Data Scheduled this week
Cambodia - No Data Scheduled this week
Vietnam - No Date Due
India - No Data Due
Europe
Eurozone No Data Due
Germany Balance of Trade, Exports, Imports, 5-Year Bobl Auction
France Balance of Trade, Exports, Imports, Current Account
United Kingdom Index-linked Treasury Gilt 2049 Auction
United States
Futures Dow -110pts -0.25%, S&P -0.2% and NDX -0.14%
Data Due NFIB Business Optimism Index, Redbook, Consumer Inflation Expectations, 52-Week Bill Auction, Used Car Prices, 3-Year Note Auction, Consumer Credit Change, API Crude Oil Stock Index.
HEADLINES & NEWS
AUSTRALIA & NEW ZEALAND
Qantas says it has been contacted by suspected cybercriminals. The airline says it has been approached by a “potential” cybercriminal group, but there’s no sign of a ransom demand yet.
Australian airlines cancel flights again after latest volcanic eruption. For the second time since the start of June, several airlines have had to cancel or delay services to and from Bali.
Star faces $36.5m blow if Queen’s Wharf deal flops. The major gaming operator says its negotiations with Hong Kong investors to sell its stake in the glitzy Brisbane precinct has come to a standstill, revealing an extension to the termination notice.
More Australian retailers axe free returns after ‘reckoning’ of costs. Shopping habits – including “repeat returns” offending – are taking a toll on businesses.
Tarnished Tassal brand targets WA barramundi. Canadian giant Tassal is at the centre of a raging debate over salmon farming in Tasmania. Now it plans to grow a major operation in a Kimberley marine park.
JAPAN
PM Ishiba’s support slid further ahead of major national elections, a poll by public broadcaster NHK showed on Monday, as voters gave the thumbs-up instead to tax cuts proposed by opposition parties. Support for Ishiba's cabinet stood at 31%, down from 34% a week ago and 39% in early June. PM Ishiba's Liberal Democratic Party and junior partner Komeito, which form the ruling coalition, lost their combined majority in the lower house last year. Another poor performance in the upper house elections, slated for July 20, would deliver a heavy blow to Ishiba's grip on power. To help the public cope with rising prices, Ishiba is proposing one-off cash handouts, while most opposition parties have pledged in their campaign platforms to cut or abolish the sales tax. The NHK survey showed 52% of those polled prefer sales tax cuts or abolition of cash handouts, while 17% said they prefer cash handouts.
Petronas on Monday said it has successfully shipped its first liquefied natural gas (LNG) cargo to Japan from its newly operational LNG facility in Kitimat, Canada. Petronas has a 25% stake in the Kitimat LNG plant in British Columbia on Canada's west coast. The shipment departed for Japan aboard the 174,000-cubic metre Puteri Sejinjang LNG vessel, but the company didn't specify how much LNG it was delivering.
Japan must diversify trade ties beyond the U.S. market to mitigate risks and focus on partnerships with countries favouring free trade, Hirofumi Yoshimura, co-representative of the opposition Japan Innovation Party, said on Monday. Tokyo should seek a "win-win" situation in trade negotiations, however, tariffs imposed by President Donald Trump show how the U.S. is a country risk for Japan - or a source of uncertainty that could hurt its economy, Yoshimura said. "Japan should expand trade ties with countries that focus on free trade," such as Europe, and leave itself more options to protect its economy, he told Reuters in an interview.
"Instead of standing on just one, big pillar like the U.S., Japan should stand on, say, five to 10 smaller pillars. That's a better approach to avoid its roof from falling off.” The remarks came as Japan faces the risk of sustained, steep U.S. tariffs after stalled trade talks led to criticism by Trump that Japan was engaging in "unfair" automobile trade. The views of small, opposition parties such as the Japan Innovation Party could gain importance after an upper house election on July 20, where Prime Minister Shigeru Ishiba's ruling Liberal Democratic Party (LDP) faces an uphill battle. Recent media polls including one by the Yomiuri newspaper showed the LDP and its coalition partner Komeito may lose their majority in the upper house - an outcome analysts say could force Ishiba to step down or seek an alliance partner.
Nissan Motor (7201.T) plans to sell $4 billion worth of U.S. dollar- and euro-denominated senior unsecured bonds, showed a term sheet reviewed by Reuters on Monday. The plan comes about a week after Reuters reported that Nissan has asked some suppliers to allow it to delay payments to free up short-term funds, highlighting its scramble to boost cash. The automaker aims to sell five-, seven- and 10-year dollar bonds and raise a minimum of $750 million in each tranche. It has told prospective investors that coupons would be in the mid-7% area for the five-year tranche, high-7% area for the seven-year tranche and low-8% area for the 10-year tranche, the term sheet showed. Nissan also plans a four- and eight-year euro issuance with a minimum size of 500 million euro ($588.40 million) in each tranche. It has set price guidance at high 5% for the four-year bond and high 6% for the eight-year bond, the term sheet showed. Nissan said it also plans to sell a 150 billion yen ($1.04 billion) six-year convertible bond. The automaker plans to use money raised to refinance outstanding debt, the term sheet showed. Last year Nissan raised $300 million in a five-year dollar bond priced at 5.55%. It issued a five-year dollar bond in March 2021 worth $800 million that had a coupon of 2% and is now trading at 6.0584%, LSEG data showed. A seven-year bond issued at the same time worth $600 million with a coupon of 2.75% is now at 6.599%. Hit by deteriorating sales and an ageing vehicle lineup, Nissan reported a $4.5 billion net loss for the financial year that ended in March. It has declined to disclose a forecast for the year through March 2026. I think the the company is in its death throes, brought down by the management that wouldn’t believe that Ghosn was right.
SOUTH KOREA
An ongoing labor dispute at GM Korea, the South Korean unit of General Motors, has escalated as the union secured the legal right to strike following a breakdown in wage negotiations, sources said Monday, fueling concerns that the American auto giant may scale back its production in South Korea amid the threat of US auto tariffs. According to the sources, the National Labor Relations Commission earlier in the day suspended its mediation of wage negotiations between GM Korea's management and the union, citing deep differences in the positions between the two sides. The suspension legally allows the union to begin collective action, intensifying a standoff already marked by widespread worker opposition to the company's plan to sell GM's South Korean service centers nationwide and unutilized facilities at its plant in Bupyeong in Incheon, west of Seoul. The union has demanded the withdrawal of the asset sale plan as a precondition for the wage negotiations.
The Korea Wind Energy Industry Association said Monday it successfully hosted the nation’s largest offshore wind power event, solidifying its role as a hub for international collaboration in renewable energy. The second annual Offshore Wind Supply Chain Conference & Exhibition was held on Wednesday and Thursday at Bexco convention center in Busan. This year’s event brought together 74 offshore wind supply chain companies from around the world, including those from the United Kingdom, Japan, Taiwan and the Netherlands. This was twice the number of companies from last year and attracted 2,250 visitors. “With the successful completion of both last year’s and this year’s events, the Offshore Wind Supply Chain Conference & Exhibition has firmly established itself as Korea’s leading offshore wind power industry gathering,” said an association official.
SK Telecom, South Korea’s largest telecommunications firm by market share, is facing mounting fallout from a massive cyberattack, with subscriber churn accelerating despite the company’s compensation measures, such as allowing customers to cancel their contracts early without penalty. While the company may retain its No. 1 position for now, its market dominance is increasingly under threat, with over 800,000 subscribers having already left as of the end of last month. As rival carriers ramp up efforts to lure dissatisfied customers, attention is focused on how SKT will contain the damage and defend its market share. Just a day after SKT announced its penalty waiver for early contract termination and unveiled a compensation plan on Friday, nearly 4,000 subscribers switched to rival carriers. On Saturday alone, SKT lost 3,865 users, while KT and LG Uplus gained 1,952 and 1,913 new subscribers, respectively.
TAIWAN
Minister of Economic Affairs J.W. Kuo yesterday said that trade negotiations with the US are still ongoing, after US Secretary of the Treasury Scott Bessent on Sunday said that nations failing to reach a deal with Washington would face the “reciprocal” tariffs US President Donald Trump announced in April. Trump later suspended the high levies for 90 days to allow for trade talks and set a deadline tomorrow for nations to strike agreements with the US. Asked whether the US tariff rate on Taiwan would stay at 32 percent and if potential US tariffs would prompt companies to relocate from Taiwan, Kuo declined to comment at a meeting of the legislature’s Economics Committee. The meeting was called off at about 9am due to the impact of Typhoon Danas. Nations including Taiwan have been pushing to strike deals with Washington over the past three months that would help them avoid the high US tariffs set to begin on Aug. 1. So far, the Trump administration has only unveiled deals with the UK and Vietnam, while Washington and Beijing agreed to temporarily lower high levies on each other’s products.
A total of 1,668 Chinese immigrants have not submitted proof of renouncing their Chinese household registration by the deadline, the National Immigration Agency (NIA) said, with a source saying yesterday that their status could be turned from “registered permanent resident” to “resident” if they are later found to still be registered in China. The agency had notified Chinese immigrants who reside in Taiwan to submit proof that they had given up their household registration in China before Monday last week, but it could not contact 1,668 of them. A government official familiar with national security issues said that most of the missing immigrants are living abroad, including many “nationals without household registration” who have not returned to Taiwan for two years, or they could also be in China.
Nissan Motor Co is in talks with Hon Hai Precision Industry about a potential partnership in the electric vehicle (EV) sector that could allow Hon Hai to produce EVs at a local plant to avoid the risk of closure, a Japanese business newspaper reported on Sunday. The two companies are considering producing EVs at Nissan’s Oppama plant in Yokosuka, Kanagawa Prefecture, Nikkei Asia reported, citing a Nissan source. The Oppama plant, which employed about 3,900 people as of the end of October last year, was among the facilities at risk of closure under Nissan’s restructuring plans, the report said. Nissan in May announced plans to reduce its global production bases from 17 to 10, Nikkei said. The plant produces 240,000 units per year, with capacity rate running at 40 percent, below the required 80 to break even, while many Nissan-affiliated autoparts suppliers operate near the Oppama plant, it said. A partnership with Hon Hai, also known as Foxconn Technology Group could enable Nissan to retain the plant, boost its utilization rate, preserve local employment and lower production costs, the report said. A Hon Hai official yesterday said the company had no comment.
Taiwan Ratings Corp has upgraded its GDP growth forecast for Taiwan this year to 3.3 percent from its 2.4 percent estimate in March, citing robust first-half momentum fueled by a resilient technology sector and front-loaded export orders. Despite the upward revision, the ratings agency yesterday cautioned that the economy would face mounting headwinds in the second half. Taiwan’s economy remains vulnerable to external shocks due to its trade-dependent structure and exposure to global supply chains, Taiwan Ratings credit analyst Joe Lin said at a news conference in Taipei.
CHINA
A fraud case involving stablecoins was recently exposed in mainland China, according to Chinese media. A financial management platform called “Xinkangjia” was recently spoiled, with more than 2 million members becoming victims, involving RMB13 billion. “Xinkangjia” was founded in Guizhou in 2021, according to reports. The platform used futures trading in gold, oil and foreign exchange in Dubai in the Middle East, big data, USDT stablecoins and others as its highlights, and used high interest rates to attract a large number of investors by promising that they can earn returns of up to 2% per day.
The Guangdong power grid system load notched a new high for the first time in 2025, nearly 160 million kilowatts, up 1.94% compared to the highest system load in 2024, Chinese media reported.
In 1H25, the arithmetic average price reduction of discounted NEV models was RMB23,000 or 12%, while that for conventional fuel vehicles was RMB17,000 or 8.9%, according to data released by the China Passenger Car Association (CPCA). The overall market price cut was RMB21,000, implying a drop of 11.4%.
China's export restrictions on rare earths brought parts of the global auto supply chain to a halt and U.S. President Donald Trump to the negotiating table. But at home, they're a big headache for companies already struggling with a slow economy. Beijing curbed rare earth and magnet exports in April in retaliation against U.S. tariffs, driving down magnet makers' offshore sales at the same time as they face pressure from a weak economy and tough times in one of their key markets - EVs. The pain for magnet makers is unlikely to ease soon, even after the U.S. announced a deal with China on June 27 to get rare earths flowing again. Any agreement would take time to implement, said Baotou Rare Earth Products Exchange, a state-backed trading platform, noting that inventory was piling up in warehouses, in a post on WeChat 12 hours after the deal was announced. The export curbs led to a 75% drop in magnet exports in the two months after the restrictions were imposed and forced several global auto makers to pause some production. The restrictions caused a "crisis" for some local magnet makers, the Baotou exchange, based in Inner Mongolia, one of China's rare earths hubs, said in May. While China produces 90% of the rare earth magnets used worldwide and consumes most of them, exports ranged from 18% to 50% of total revenue in 2024 among the 11 largest publicly listed magnet producers by capacity, public filings show. "Their sales are now being squeezed from both ends – disrupted exports and flagging domestic demand," said Ellie Saklatvala, head of metal pricing at commodities information provider Argus. "They have temporarily lost an important part of their customer base, with no certainty about when they will regain it."
China is considering doubling an investment channel local investors use to buy bonds overseas, Bloomberg News reported on Monday, citing people familiar with the matter. Regulators have held early talks about expanding the "Southbound" leg of its Bond Connect channel to as much as 1 trillion yuan ($139.41 billion), the report added, citing unnamed sources. Bloomberg said that no final decisions have yet been made and any eventual plan would need approval from relevant regulators. Under the expansion plan, non-bank financial institutions would be granted access to the trading link for the first time, with an annual investment quota of up to 500 billion yuan, the report said. Through this change, Chinese onshore institutions would gain greater access to foreign bonds available on the Hong Kong Stock Exchange, including dollar-denominated ones. The country's biggest mutual funds would be among the firms eligible for the new quota, the Bloomberg report said, adding that no final decisions have been made and any eventual plan would need approval from relevant regulators. Reuters could not immediately verify the report. The move comes as Beijing intensified its efforts to boost two-way flows in its financial market, to enhance the yuan's global status. PBOC Governor Pan Gongsheng last month pledged to expand the international use of the digital yuan and called for the development of a multi-polar global currency system amid uncertainty sparked by U.S. tariff policies.
China announced plans on Monday to help retrain rural workers to improve their job prospects, including women, as part of the government's aim to expand the agricultural sector and boost the broader economy. The plan will include vocational education for rural workers, as well as schemes to retrain them to work as domestic or care staff and to help rural workers adapt and find jobs in cities, according to statements by the Ministry of Commerce, National Development and Reform Commission and other government departments. They outlined 14 specific tasks to promote retraining of the rural workforce. The Ministry of Commerce said the plan would "strengthen housing security, create favourable conditions for rural workers in cities to enjoy basic public services equally and integrate into the local society as soon as possible”. The policy follows Beijing's announcement in April of a 10-year plan to build an agricultural powerhouse, amid escalating tensions with the United States, an economic slowdown and challenges posed by climate change. China has close to 300 million rural migrants in cities, with around 100 million of them reaching retirement age over the next 10 years, according to official data. Authorities will "guide rural labour with employment needs, especially rural women and poverty-stricken labour to find employment in the domestic service field," the commerce ministry statement said. State broadcaster CCTV quoted Zou Yunhan, deputy director of the Macroeconomic Research Office of the Economic Forecasting Department of the National Information Center, as saying the plan would help improve the supply and quality of workers and better meet employers' needs.
Chinese surveillance camera manufacturer Hikvision (002415.SZ) said on Monday it was challenging an order the Canadian government issued last month that required it to cease operations in Canada. The company said its Canadian unit had submitted a notice of application to the Attorney General of Canada seeking a judicial review of the June 27 decision. The notice, which the company also plans to file in federal court, also asks the court not to enforce the order until its application was decided.
BYD (002594.SZ) is poised to start assembling electric vehicles at a new factory in Brazil as early as this month, a top executive said, reducing imports as tariffs start to rise in its largest foreign market. Alexandre Baldy, senior vice president for BYD in Brazil, said the goal is to assemble 50,000 cars this year at the plant in Bahia state from imported kits, adding that he is negotiating a lower tax rate on those vehicles.
HONG KONG
Buybacks
TENCENT (00700.HK) repurchased 1.002 million shares on the Hong Kong Stock Exchange Monday (July 7) at a price ranging from HKD494.4 to HKD502 per share, involving about HKD500 million. Since the repurchase mandate resolution was passed on May 14, 2025, TENCENT has repurchased a total of 34.462 million shares, accounting for about 0.37503% of the share capital.
HSI Short Selling Monday 17.9% vs 11.2% Friday
Top shorts Hansoh Pharma (3692) 45%, Henderson Land (12) 44%, SHKP (16) 43%, BYD (1211) 42%, Li Auto (2015) 40%, Chow Tai Fook (1929) 39%, Hang Seng Bank (11 HK) 37%, Zhong Sheng (881) 36%, Bud APAC (1876) 35%, Hengan (1044) 35%, Li Ning (2331) 34%, Tingyi (322) 33%, Xingyi Glass (868) 33%, Xingyi Solar (968) 32%, China Res Land (1109) 31%, Sands China (1928) 30%, HK & China Gas (3) 30%, Haidilao (6862) 29%, Nongfu Spring (9633) 28%, CK Asset (1113) 28%, MTRC (66) 27%, Zijin Mining (2899) 27%, China Shenhua (1088) 27%, SinoPharm (1099) 27%, Techtronic (669) 26%, Bidu (9888) 26%, Kuaishou (1024) 26%, Haier Smarthome (690) 25%,
WATCH
TIMES CHINA (01233.HK) announced that in June 2025, the Group’s contracted sales amounted to approximately RMB380 million, down about 46.1% YoY, with contracted gross floor area of approximately 27,000 square meters.
KWG GROUP (01813.HK) announced that for June 2025, the pre-sales value of the group and its joint ventures and associates amounted to RMB653 million, representing a YoY decrease of 34%. Meanwhile, the pre-sales area of the group and its joint ventures and associates amounted to around 21,000 square meters, representing a YoY drop of 61.7%.
William Li, founder and chairman of NIO-SW (09866.HK) (NIO.US), has recently revealed that the group was the first company to enter the Hefei Xinqiao Industrial Park, and its third factory in the park is set to start production in September. Li also mentioned that NIO-SW is the brand most committed to deploying charging piles, with over 90% of them being used by other brand users.
CENTURY LEGEND (00079.HK), through its wholly-owned subsidiary, disposed on-market a total of 100,000 LINK REIT (00823.HK) units on 3 July, at an average price of approximately $43.035 for an aggregate proceeds of around $4.303 million (excluding transaction costs), according to CENTURY LEGEND's announcement. After the Disposals, the Group holds 601,100 LINK REIT units. As mentioned in the announcement, the purpose of the Disposals was to allow the Group to further reallocate the resources and investment portfolio. As a result of the Disposals, the Group is expected to recognize a profit of approximately $113,000, the proceeds of which will be used for the general working capital of the Group or other securities investments.
RONSHINECHINA (03301.HK) announced its latest operational data, reporting that during the month ended June 2025, the total contracted sales of the Group amounted to approximately RMB251 million, down 53.9% YoY.
A blogger recently disassembled the XIAOMI-W (01810.HK) 's BE6500 Pro router and discovered that the new version was downgraded compared to the old, with key components such as power amplifier chips, memory, flash memory, and heat sinks being replaced, Sina Tech reported. Xiaomi has yet to make an official comment on the report. Its customer service stated that it is normal for product materials to be supplied by multiple vendors, so there may be differences in materials between different product batches.
Since late June, the Northeast region of China has been experiencing an unprecedented heatwave, with maximum temperatures in cities such as Harbin, Changchun, and Shenyang consistently topping 35 Degrees Celsius, and some areas reaching as high as 39 Degrees Celsius. Wang Xiaoyan, Vice President and President of China Region at XIAOMI-W (01810.HK) posted on Weibo today (7th) stating that the Northeast and Inner Mongolia have been experiencing persistently high temperatures since June 24, leading to a spike in air conditioner sales, with Xiaomi's air conditioner sales whopping 20 times that of the same period last year. Xiaomi's service department has urgently organized installation engineers from across China to rush to Northeast and Inner Mongolia to ensure timely installation for users.
Monday closings in EUROPE & US
DAX 1.2%, CAC 0.35%, FTSE -0.19%
European markets opened mixed; FTSE opened lower worked better but sold down in the PM. DAX opened higher and worked better all day. CAC opened flat and traded sideways/slightly better.
Capgemini’s -5.58% whilst shares of its takeover target WNS 14.3% on news that it would be bought in a $3.3 billion cash deal. WNS offers businesses technology outsourcing and analytics services.
Currys plc -4.9% after RBC Capital analysts downgraded the stock over its specular run this year.
Daimler Truck reported a 20% drop in its North American business for Q2 from last year, a trend that’s continued since early 2025. The company said it recorded 13% growth in its Asia business, excluding China and India, and 5% growth in buses sold worldwide. In India and China, where it operates under the Mercedes-Benz Trucks brand, second-quarter sales fell by 0.5% from last year. The United States is the largest market by sales for Daimler Truck, with 38% of global sales, ahead of revenues of 11.3% from Germany, according to FactSet.
DOW -0.94%, NDX -0.92%, S&P -0.79%, Russel 2K -1.55%
US markets opened lower and trended lower for most of the day after Trump announced 25% tariffs on Japanese and South Korean imports to the US from August 1 and threatened an additional 10% tariff on countries that align with the “Anti-American policies of BRICS,” which refers to emerging market countries including Brazil, Russia, India and China. Trump did not elaborate on any specific policy of BRICS. Markets did see a slight uptick in the last 90 minutes. He also shared screenshots from letters to Malaysia, Kazakhstan, South Africa, Laos and Myanmar, that dictated new tariff rates for each nation. They can’t be that happy to learn about their new tariffs this way. There were 14 letters sent Monday and Trump will sign an executive order to delay the deadline until August 1 sometime this week. Whilst there was a lot of selling, 23 stocks hit new highs; including Royal Caribbean, Citi, Blackrock, Uber and others.
Banks JPMorgan Chase -1.36%, Citigroup -1.26% Wells Fargo -1.51%, Amex -1.65%
Ecommerce Meta -0.09%, Apple -1.69%, Amazon 0.03%, Netflix -0.58%, Disney -0.68%, Zoom Comms -1.79%, Alphabet -1.66% and Microsoft -0.22%,
Tech NXP Semi -2.63%, Nvidia -0.69%, Micron -1.85%, AMD -2.26%, Skyworks -3.26%
Industrial/Discretionary Boeing 1.26%, Caterpillar -1.6%, Simon Property -1.02%, Kohl’s -2.8%, Gap -0.26%, United Airlines -1.52%, Carnival -2.17%, Wynn Resorts 2.88%,
Auto Ford -1.86%, GM -2.02%, Tesla -6.79%,
Energy Chevron -0.65%, Exxon Mobil -0.97%,
Consumer Staples Campbell Soup -1.41%, General Mills -2.46%, JM Smucker -0.53%
US DAILY CLOSING DATA
USD strengthens, Bitcoin -0.24% at 108,208.8, VIX 1.77% at 17.79,
US T10 up 5 bpts to 4.387% and T2 up 2 bpts at 3.899% and T30 up 7 bpts at 4.921%
OIL Brent 1.87%, WTI 1.39% after initial weakness on news the OPEC+ was raising output more than expected, suggesting that traders view the current market as tight and able to absorb the additional barrels.
Gold -0.1% off initial lows as data showed China increased its Gold reserves for a eighth month, Silver -0.5%, Copper -0.42% Platinum -1.9%, Palladium -2.5%.