Asia Market Quick Take – September 11, 2025

Key points:  

• Macro: US PPI falls 2.6%; Japan PPI rises 2.7% 
• Equities:  S&P 500 hits new highs driven by Oracle’s 35.9% gain  
• FX: USD dips as inflation cools, Fed rate cut anticipated 
• Commodities: Gold remains elevated hovering below $3,650 
• Fixed income: Treasuries rally again as 10 year yield nears 4% 

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Disclaimer: Past performance does not indicate future performance.  

 Macro:  

• US producer prices fell 0.1%, marking their first decline in four months and contrasting with a 0.7% rise in July. This unexpected drop was driven by a 0.2% fall in service costs, mainly due to lower margins in machinery and vehicle wholesaling. Prices for goods rose 0.1%, led by a 2.3% increase in tobacco products.
• US core producer prices, excluding food and energy, fell 0.1%, defying the expected 0.3% rise and following July's revised 0.7% increase. This marks only the third drop since the pandemic's second quarter in 2020. Service prices fell 0.2%, while goods prices rose 0.1%. Annual core producer inflation slowed to 2.8% from 3.4%.
• Japan's producer prices rose 2.7% year-on-year, up from 2.5% in July, matching expectations. Increases were noted in transport equipment, food and beverages, and non-ferrous metals, while slower growth occurred in electronics and metal products. Prices dropped for chemicals, iron, steel, and petroleum products. Monthly prices fell 0.2%, exceeding the 0.1% forecast, after a 0.3% rise in July.
• US average interest rates for 30-year fixed mortgages fell to 6.49%, the lowest since October 2024, from 6.64% prior. The drop aligns with Treasury yields decreasing after a weak jobs report, bolstering expectations for Fed rate cuts. 

Equities:  

• US - US stocks hit fresh records Wednesday on cooler inflation and a strong Oracle outlook. The S&P 500 rose 0.3% and the Nasdaq 100 edged higher, while the Dow fell 220 points on Apple weakness. August PPI dropped 0.1% vs. a 0.3% gain expected, its first decline in four months, fueling hopes CPI will confirm disinflation. Tech led gains as Oracle surged 35.9% on soaring AI-driven cloud bookings, lifting Nvidia (+3.8%) and AMD (+2.4%), while Apple slid 3.2% after an underwhelming iPhone 17 launch. Coreweave gained 16.8% after its CEO said that AI demand continues to be overwhelming. Synopsys fell 35%, most in 3 decades after it warned that export restrictions are hitting China sales. Tradedesk is down 12% after Amazon Ads and Netflix formed a partnership that will allow brands to purchase Netflix ad space via the Amazon demand side platform. 
• EU - European stocks slipped Wednesday as tech, consumer defensives, and miners dragged. The STOXX 50 fell 0.2% to 5,378, while the STOXX 600 edged below 552. Investors await the ECB’s rate decision and updated forecasts, with a hold widely expected. Geopolitical tensions persisted after Israeli strikes on Hamas in Qatar and Poland intercepting drones from a Russian attack on Ukraine. Tech led losses despite Oracle’s upbeat U.S. outlook, with SAP and Adyen down nearly 3%. Inditex jumped 6.5% on strong monthly sales. 
• HK - Hang Seng rose 1% to 26,200 Wednesday, its fourth straight gain and a four-year high. The rally tracked Wall Street on bets the Fed will cut rates next week, with inflation data in focus. In China, August CPI posted its steepest drop in six months, reviving hopes for stimulus, while PPI deflation eased. Property and financials outperformed after a China-Europe currency swap deal, and tech gained on AI optimism following Oracle’s strong results. Baidu jumped 2.6% on an upgraded AI model, Alibaba added 0.6%, while Laekna slumped 12.7% on a discounted share sale. 
• SG - DBS shares reached a record high, driving the Straits Times Index (STI) above 4,340. DBS shares rose 3.64%, closed at $52.73. JP Morgan upgraded DBS to "overweight" on September 9, setting a target price of $56, citing the bank's leading dividend yield spread. 

Earnings this week: 

• Thursday: Adobe 

FX: 

• USD weakened following a soft PPI report and ahead of a cooler-than-expected CPI. Headline and core inflation rates fell to 2.6% and 2.8% year-over-year, with markets unfazed as a 25 basis-point cut remains expected from the Fed.
• Among G10 currencies, the CHF and CAD declined, while the AUD and NZD gained, buoyed by Dollar softness and favorable Chinese data. AUDUSD traded above 0.6610; NZDUSD traded at 0.5940. 
• EUR modestly weakened, slipping below the 1.17 level as investors await the European Central Bank meeting. GBP held steady, unable to maintain its early gains amid a scarcity of new drivers. 
• JPY showed little movement, reflecting the cautious sentiment across the currency market, with anticipation building ahead of Japan's PPI data release. 
• CNH strengthened on softer Chinese inflation and proactive fiscal policy announcements. Trump's call for EU tariffs on China and India is unlikely to impact EU trade positions. 
  Economic Calendar - EU Deposit Facility Rate, ECB Interest Rate Decision, US Inflation Rate, US CPI, US Initial Jobless Claims, ECB Press Conference 

Commodities: 

• Copper rose above $10,000/tonne on the LME as traders weighed Indonesian supply risks and easing deflation in China’s industry. Prices broke out of a narrow range.  
• Gold rose as a surprise US inflation pullback firmed bets on a Fed cut next week; silver topped $41/oz and platinum advanced. Palladium jumped up to 4.7% on reports Trump mooted tariffs on China and India, contingent on EU backing, to pressure Russia, the top supplier. 

Fixed income:  

• US Treasuries rallied. A soft PPI print sparked a front‑end bid before strong demand at the 10‑year reopening shifted leadership to the long end and deepened the bull‑flattening. The move held into late trade, with yields near session lows; the 10‑year hovered around 4.03%, the richest since early April. 

For a global look at markets – go to Inspiration.  

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