Asian Session Wrap-up: June 2, 2025
Asian Markets Recap
Asian markets kicked off June in the red, weighed down by renewed trade tensions between the US and China. Donald Trump's announcement to double tariffs on steel sparked a selling wave, while Beijing retaliated by accusing Washington of breaking a trade truce. In the background, the ongoing geopolitical escalation between Russia and Ukraine further fueled risk aversion.
Japan – Nikkei 225 -1.29%
The Japanese index slid further, impacted by the stronger yen and fresh trade woes. Steel-related stocks were under pressure after Trump’s tariff news.
Stocks on the move:
Nippon Steel steady (merger with US Steel well received)
JFE Holdings -3.4%, Kobe Steel -2.8%
China – Shanghai Composite Closed (holiday)
The offshore yuan kept falling (2nd straight session) amid ongoing accusations between Beijing and Washington. PMIs show a fragile stabilization with still weak domestic demand.
Impacted sectors: Tech, exports, and services all under pressure
Hong Kong – Hang Seng -1.63%
The index hit a three-week low. Tech and industrial stocks suffered due to US-China tensions and a weak yuan.
Key movers:
Alibaba -2.9%, Tencent -2.4%, Meituan -2.7%
India – Sensex -0.52%
Sensex slipped, dragged down by the metals sector. The manufacturing PMI was revised lower, signaling a slight slowdown in industrial momentum.
Stocks to watch:
Tata Steel -3.1%, Hindalco -2.6%, HDFC Bank flat
Why does it matter?
The Asian session sends a clear cautionary signal to global markets. The return of trade tensions between the world’s two largest economies, combined with heightened geopolitical risks, is making investors jittery. Cyclical and industrial stocks are under pressure, which may weigh on the European and US market openings.
US Futures Pre-market
Dow Futures: -0.54%
S&P 500 Futures: -0.66%
Nasdaq 100 Futures: -0.76%
Conclusion
Monday begins with caution: trade tensions, geopolitical volatility, and anxiety over upcoming US economic data this week. Cyclical and export-oriented sectors are the most exposed. The tone is set for a potentially turbulent week.
Sectors at risk: Metals, tech, Asian exports
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Have a great session, everyone
Sylvain Mouilhaud: Equity Coach