Stocks mixed with trade and earnings in focus; Tokyo reopens with gains
HONG KONG: Asian markets were mixed Tuesday (July 22) as traders kept an eye on earnings from Wall Street titans this week while tracking US trade talks just over a week before the deadline for a deal.
Japanese stocks edged up and the yen held gains after Prime Minister Shigeru Ishiba said he will stay in power despite the weekend election debacle.
Investors took a more cautious path after a largely positive day on Wall Street, where the S&P ended above 6,300 points for the first time and the Nasdaq chalked up yet another record.
Equities continue to rally on expectations key trading partners will strike agreements with Washington before August 1 to avoid Donald Trump's sky-high tariffs, with the US president saying several deals were close. Just three have been struck so far.
His press secretary Karoline Leavitt said more could be reached before next Friday but also warned the president could unveil fresh unilateral tolls in that time.
While Trump's initial tariff bombshell on April 2 rattled global markets before he delayed introducing the measures twice, they have seen more muted reactions to successive threats as traders expect him to eventually row back again.
That optimism has been helped by data indicating the US economy remained healthy despite the imposition of other levies that are beginning to be felt on Main Street.
And SPI Asset Management's Stephen Innes warned traders could be in for a shock next week.
"The new tariff regime isn't being priced -- full stop," he wrote.
"Markets have seen this movie before: tough talk, last-minute extensions, and deal-making in overtime. But this time, Trump isn't bluffing. He's already posted 'No extensions will be granted'.
"The new rates -- 30 per cent on the EU, 35 per cent on Canada, 50 per cent on Brazil -- are politically loaded and economically radioactive. If they go live, there's no soft landing."
Hong Kong has been the standout in Asia this year, piling on around a quarter thanks to a rally in Chinese tech firms and a fresh flow of cash from mainland investors.
And the Hang Seng Index continued its advance Tuesday, with Shanghai, Sydney and Taipei also up.
There were losses in Singapore, Seoul, Wellington and Manila.
Tokyo rose as investors returned from a long weekend to news that Ishiba would remain in power even after his ruling coalition lost its majority in Japan's lower house elections Sunday, months after it suffered a similar fate in the upper house.
His refusal to leave helped the yen push higher against the dollar and other peers, though observers warned the government's tenure remained fragile and investors remained nervous.
The yen strengthened to 147.08 Tuesday before paring some of the gains. That compares with 148.80 Friday.
But Franklin Templeton Institute's Christy Tan said that "Ishiba now faces heightened political headwinds, including pressure over inflation, taxes, and US trade talks".
Focus also turns this week to earnings from some of the world's biggest names, including Tesla, Google-parent Alphabet, General Motors, Intel and Coca-Cola.
While there will be plenty of attention given to the results, the firms' guidance will be key as investors try to gauge companies' pulses in light of Trump's trade war. - AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysia Sun
3 hours ago
- Malaysia Sun
Trump Media invests $2 billion in Bitcoin
The company plans to use the assets to generate revenues, according to a statement US President Donald Trump's media and technology company has acquired about $2 billion in Bitcoin and related assets, underscoring his administration's accelerating pivot toward cryptocurrencies. The Trump family has increasingly aligned with the crypto industry through new ventures, investments, and public endorsements in recent months. On Monday, Trump Media - the firm behind the Truth Social platform - announced the acquisition, saying another $300 million in capital has been allocated to an options-based Bitcoin strategy, and signaling that it may convert the options into cryptocurrency depending on market conditions. The assets will be used "to generate revenues and potentially to acquire additional crypto assets," CEO and President Devin Nunes said. Crypto now accounts for about two-thirds of the firm's $3 billion in liquid holdings. The purchase is part of Trump Media's 'Bitcoin treasury plan', which involves buying and holding digital assets - similar to how companies stockpile bonds - to increase liquidity and financial flexibility. Trump Media shares soared nearly 10% following the announcement. Trump, who placed his shares in a revocable trust managed by Donald Trump Jr., maintains a major stake valued at around $2.3 billion. Once a crypto skeptic, Trump reversed course during the 2024 campaign, pledging to make the US the "crypto capital of the world" and to serve as its "crypto president." Since returning to the White House, he has backed several family-led ventures in the space, including World Liberty Financial - a decentralized finance project that has brought in $500 million since launching in September. As part of the new US 'strategic reserve' of crypto assets unveiled in March, Trump signed the GENIUS Act last week - the country's first major law regulating digital currency. Critics have claimed that the overlap between Trump's crypto ventures and his political authority could result in widespread corruption. Trump Media's announcement came less than a week after Bitcoin hit a record high, topping $120,000 - reinforcing its position as the world's most valuable and widely held cryptocurrency. Analysts attributed the rally to surging institutional demand and a shift in US policy under Trump. On Tuesday, it was trading at $118,395 per coin. (
The Star
3 hours ago
- The Star
Economic Watch: Hong Kong sees equity market revival amid policy incentives, improved outlook
HONG KONG, July 22 (Xinhua) -- Hong Kong's benchmark Hang Seng Index closed at 25,130.03 points on Tuesday, hitting a three-and-a-half-year high. Analysts attribute this equity market revival to supportive policies, an improving economic outlook, and favorable valuations. Recent initiatives from the central government have boosted market liquidity. Upgrades to the Bond Connect, enhancements to the Cross-boundary Wealth Management Connect Scheme, and facilitative payment arrangements for Hong Kong and Macao residents purchasing properties in the Chinese mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), have contributed to this positive momentum. The China Securities Regulatory Commission's efforts to optimize the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects further reinforce Hong Kong's status as an international financial hub. Economist Leung Hoi Ming notes that China's position as the world's second-largest economy is expected to contribute about 21 percent of global GDP growth, providing solid support for Hong Kong stocks. Hong Kong consistently ranks as the world's freest economy, third among global financial centers, and maintains top positions in investment climate, international trade, commercial regulations, and air cargo. The Hong Kong Special Administrative Region (HKSAR) government's moves to streamline market listing procedures have helped boost initial public offerings (IPOs) by 30 percent year on year to 52 cases by mid-July. Total funds raised soared 590 percent to 124 billion Hong Kong dollars (15.8 billion U.S. dollars), making Hong Kong the biggest IPO market worldwide, HKSAR Chief Executive John Lee said in a social media post on Monday. The unique valuation advantage of Hong Kong stocks continues to attract both international and Chinese mainland investments. Recent data indicates a significant influx of southbound funds, reflecting renewed confidence among Chinese mainland investors. Carlson Tong, chairman of Hong Kong Exchanges and Clearing Limited (HKEX), mentioned that Chinese mainland companies currently listed in Hong Kong account for 81 percent of the total market value. The ongoing strength of Hong Kong stocks positively impacts both local and Chinese mainland capital markets, enhancing investor confidence and liquidity. Kevin Liu, chief offshore China and Overseas strategist at China International Capital Corporation, highlighted that active liquidity in the Hong Kong stock market is evident in an average daily trading volume of 240.6 billion Hong Kong dollars, showing a notable increase compared to the average daily trading volume in 2024, setting a historical high. Improved financing conditions are encouraging companies to list and refinance, particularly in high-growth sectors like technology and innovation. Since early 2025, driven by sectors such as AI, new consumption, and innovative pharmaceuticals, Hong Kong's market has even outperformed its global counterparts at times, said Liu. As the stock market rises, global interest in China's economy increases, promoting a virtuous circle of capital market openness and high-quality economic development, experts say. Leung believes that the stock market's rise reflects positive expectations regarding the fundamentals of the economy of the Chinese mainland, attracting more attention and investment from global capital. This influx brings more mature investment concepts and resources into the capital market, further optimizing its structure, he added. Meanwhile, experts emphasize the need for continued market optimization to attract long-term investment, noting that encouraging more quality companies to list in Hong Kong will deepen and stabilize the market, enhancing its appeal as a global capital platform. The HKSAR government will continue to improve the listing regime and boost market liquidity to attract more high-quality global companies to list in Hong Kong, Lee pledged earlier.
New Straits Times
4 hours ago
- New Straits Times
Chinese state hackers targeting Microsoft customers
SAN FRANCISCO: Chinese state-sponsored hackers are actively exploiting critical security vulnerabilities in users of Microsoft's popular SharePoint servers to steal sensitive data and deploy malicious code, the US tech giant warned Tuesday. Microsoft said it has observed three threat groups – dubbed Linen Typhoon, Violet Typhoon, and Storm-2603 – targeting internet-facing SharePoint servers using two newly disclosed vulnerabilities that allow attackers to bypass authentication and execute remote code. SharePoint Server is Microsoft's collaboration and document management platform designed for businesses and organizations. Many large organisations use SharePoint as their primary platform for internal collaboration and for storing documents, and is appreciated for working well with other Microsoft products like Office, Teams, and Outlook. The attacks, which Microsoft said began as early as July 7, affect only on-premises SharePoint installations and do not impact the cloud-based SharePoint Online service, the company said in a security bulletin. Microsoft warned that it "assesses with high confidence" that the threat actors will continue their assault against vulnerable systems where companies haven't taken the necessary precautions. The vulnerabilities allow attackers to spoof authentication credentials and execute malicious code remotely on vulnerable servers. Microsoft has released comprehensive security updates to address the malware and urged customers to apply the patches immediately. In their successful attacks, the Chinese hackers deployed malicious code that provides backdoor access to compromised systems. The attackers used these tools to steal machine encryption keys and maintain access to targeted networks. Linen Typhoon, active since 2012, primarily focuses on intellectual property theft from government, defence, and human rights organisations. Violet Typhoon, operating since 2015, conducts espionage against former government officials, NGOs, think tanks, and media organizations across the United States, Europe, and East Asia. Storm-2603, which Microsoft assesses with "medium confidence" to be China-based, has previously deployed ransomware but its current objectives remain unclear. Research from cybersecurity company Check Point said the campaign began on July 7 against a major Western government and that the attacks intensified dramatically around July 18. Since then, researchers have confirmed dozens of compromise attempts primarily targeting organisations in North America and Western Europe, Check Point said in a blog post.--AFP
