Asian Markets Overview
Asian stock markets rose on Wednesday, buoyed by notable progress in trade negotiations between the United States and China, fueling hopes of a gradual reduction in tariffs.
Japan – Nikkei 225 +0.47%
Fourth consecutive session of gains for the Nikkei, driven by exporters thanks to a weak yen (around 144.9/USD) and easing producer prices (+3.2% YoY in May, below expectations).
Top Movers: Sony +1.1%, SoftBank +0.7%
China – Shanghai Composite +0.54%
Chinese stocks rebounded, boosted by the announcement of a framework agreement in trade negotiations with the United States. Beijing would relax its rare earth restrictions in exchange for the easing of U.S. controls on advanced technologies.
Affected Sectors: Technology, strategic metals, consumer
Hong Kong – Hang Seng +1.05%
Technical rebound driven by tech stocks and John Lee's reaffirmation of the USD-HKD peg. However, Tencent ended its six-session winning streak.
Featured Stocks: Alibaba +2.3%, Meituan +1.8%, Tencent 0.00%
India – Sensex +0.14%
Slight gain after progress in bilateral trade discussions with the U.S., focused on reducing tariff barriers.
Stocks to Watch: HDFC Bank +0.6%, Tata Steel -0.3%
Improved trade prospects between Washington and Beijing are easing geopolitical tensions and supporting global markets. Tariff de-escalation would directly impact the technology, industrial, and commodity sectors worldwide.
US After Market Recap
Dave & Buster's ($PLAY) +4.75% → Mixed quarterly results but management remains confident about the coming months
GitLab ($GTLB) -12.64% → Disappointing Q2 and full-year guidance, share price plunges
System1 ($SST) -15.56% → Drop following a reverse stock split
Crispr ($CRSP) +1.05% → Seventh consecutive session of gains
PetMed Express ($PETS) -4.53% → Quarterly results postponed
Cleveland-Cliffs ($CLF) -4.24% → Market unresponsive to imminent U.S.-Mexico steel import deal
Karat Packaging ($KRT) -6.43% → Announcement of a secondary share offering
US Futures Pre-Market
Dow Futures: -0.22%
S&P 500 Futures: -0.28%
Nasdaq 100 Futures: -0.33%
Conclusion
The geopolitical climate is improving with progress in US-China trade talks, but caution prevails in pre-market trading ahead of the crucial US inflation release.
Increased monitoring of rate-sensitive sectors (tech, consumer), with volatility expected if there is a CPI surprise.
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Have a great session everyone
Sylvain Mouilhaud: Equity Coach
