Asia Market Quick Take – September 10, 2025

Key points:

• Macro: US jobs preliminary data revised 911k lower in 12 months ending March 2025
• Equities: Oracle up 28% post-earnings; anticipates cloud revenue to exceed $500B
• FX: Dollar rebounds on yields; JPY stable ahead of potential BoJ rate hike
• Commodities: Gold pulled back from a record on a sharp US payrolls revision
• Fixed income: Treasuries end four-day rally as front-end yields lead the selloff

------------------------------------------------------------------

Disclaimer: Past performance does not indicate future performance.

Macro:

• The US economy added 911K fewer jobs through March 2025 than initially reported, the largest revision since 2000, per BLS. This -0.6% adjustment contrasts with a decade average of 0.2%. Leisure, professional services, retail, and wholesale trade saw major revisions, while transportation and utilities rose slightly. The data suggests a weaker labor market.
• The Reuters Tankan index for Japanese manufacturers climbed to +13 in September 2025, the highest since August 2022, following a US tariff deal. Sentiment improved in autos and transport machinery despite sluggish domestic production, after a trade pact reduced US tariffs on key exports.
• French President Macron appointed Defense Minister Sébastien Lecornu as prime minister, following François Bayrou's resignation after a no-confidence vote. Lecornu is tasked with securing National Assembly support for the budget and ensuring political stability, focusing on independence and service to the people.
• The BoJ might consider a rate hike this year despite political factors, but will likely keep rates steady on September 19th, Bloomberg reports. Officials see progress toward the price target and the US trade deal easing growth risks, with some suggesting a potential hike by October.

Equities: 

• US - US stocks hit record highs Tuesday despite signs of economic slowdown. The S&P 500 and Nasdaq 100 rose 0.3%, while the Dow gained 197 points. Revised labor data showed 911,000 fewer jobs added through March—the biggest downward revision since 2002—boosting expectations for a Fed rate cut next week. Energy led gains; materials lagged. Among megacaps, Meta (+1.8%) and Alphabet (+2.4%) climbed, while Apple fell 1.5% after unveiling the iPhone 17, raising demand concerns. Focus now shifts to PPI and CPI reports for Fed policy signals. In after hours, Oracle gained 28% after reporting earnings that is slightly below expectations but announced that they expect its cloud infrastructure revenue to surpass $500 billion, driven by rising demand for its cost-efficient services.
• EU - European stocks edged higher Tuesday amid political turmoil and M&A activity. The Eurozone STOXX 50 rose 0.2% to 5,372, while the STOXX 600 inched up to 553. France faced renewed instability as President Macron appointed a fifth PM in under two years after a failed confidence vote. Bond yields held steady ahead of the ECB’s expected rate hold. Anglo American jumped 8.7% on a $20.2B deal to acquire Teck Resources, while Italian banks gained after Banca MPS boosted its Mediobanca stake to 62.3% in a €16B transaction.
• HK - Hang Seng jumped 1.2% to 25,938 Tuesday, its third straight gain and a four-year high. Optimism grew on bets of a U.S. rate cut after weak jobs data and Wall Street’s record close. Property stocks rose 1.8% as Shenzhen eased home-buying curbs, while sentiment was lifted by China renewing currency swap deals with European central banks. Gains were capped by caution ahead of China’s CPI and PPI data amid lingering deflation risks. Country Garden surged 23.5% on stock connect inclusion; other strong performers included Alibaba Health (+9.7%), JD Health (+6.7%), Kuaishou (+3.7%), and China Overseas Land (+3.3%).

Earnings this week:

• Wednesday: Chewy, Daktronics, Zenvia, Lesaka Technologies, Oxford Industries, Culp, Vince Holding Corp
• Thursday: Adobe