Asian Session Summary: July 21, 2025

Japan – Nikkei 225 ️ Market closed
Closed due to senatorial elections. The yen strengthened to 148.5/USD after Shigeru Ishiba's coalition lost its majority in the upper house (47 out of 50 seats required).

China – Shanghai Composite +0.50%
Supported by the PBoC, which keeps preferential loan rates at historic lows (1-year LPR at 3.0% and 5-year LPR at 3.5%). Markets also welcomed the Ministry of Industry’s commitment to support key sectors and the surge in rare earth magnet exports to the USA (+660%).

Hong Kong – Hang Seng +0.22%
Further gains driven by ongoing improvement in business sentiment in Q3. Investors remain cautious amid an uncertain trade policy climate.

India – Sensex +0.42%
Increase supported by resilient domestic demand and optimism in the banking and industrial sectors.

Australia – ASX 200 -1.22%
Sharp correction after a historic peak. The Australian dollar fell below $0.65 as the market awaits the RBA minutes. Concerns over massive US sanctions (up to 200%) on pharmaceutical exports weigh on investor sentiment.

Session Review
Overall, Asian markets were mostly bullish, supported by China’s proactive monetary and industrial policies. Japan was absent, while Australia was under pressure. This moderate setup brings a slight tailwind to global markets, amid a context dominated by US/world tariff tensions.

US Futures in Pre-market
Dow Futures: +0.05%
S&P 500 Futures: +0.11%
Nasdaq 100 Futures: +0.19%

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Have a great session, everyone.
Sylvain Mouilhaud: Equity Coach