Global Market Quick Take: Asia – June 10, 2025

Key points:

• Macro: US inflation expectations at 3.2%, down from 3.6% in May
• Equities: Qualcomm up 4% following $2.4b Alphawave acquisition
• FX: Dollar declined amid ongoing US-China discussions in London
• Commodities: Platinum topped $1,200 an ounce, their highest since May 2021
• Fixed income: Treasuries recovers some of the losses ahead of auctions

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US consumer inflation expectations dropped to 3.2% in May 2025 from 3.6% in April. Year-ahead commodity price expectations fell for gas, medical care, college education, and rent, while food prices rose to 5.5%, the highest since October 2023.
• UK retail sales rose by 0.6% in May 2025, down from April's 6.8% and below the 2.7% forecast. It's the slowest growth in six months due to rising prices and bills. BRC's Helen Dickinson cited reduced consumer confidence impacting non-food spending.
• Bessent called the US-China talks 'good', and Commerce Secretary Lutnick said they were "fruitful". Talks in London will continue Tuesday at 10 am after a 6-hour, 40-minute session on Monday.

Equities: 

• US - US stocks gained mostly on Monday as trade talks between the US and China began in London, boosting hopes for a tariff truce. The S&P 500 increased by 0.1%, and the Nasdaq rose by 0.3%, with the Dow remaining unchanged. Treasury Secretary Scott Bessent and other officials negotiated rare earth shipments and possible export restrictions easing with China. Apple shares fell 1% after limited AI announcements at its WWDC, while Qualcomm soared 4% following its $2.4 billion Alphawave acquisition. Nvidia (0.6%), Amazon (1.7%), Microsoft (0.5%), and Alphabet (1.7%) also advanced. Tesla rebounded from earlier losses to close 4.3% higher despite downgrades from Argus Research and Baird.
• EU - Frankfurt's DAX started Monday down, dropping 0.5% below the 24,200 level, following three days of gains and underperforming compared to regional peers. The decline was mainly due to defence stocks like Hensoldt and Rheinmetall, along with banks, tech, and auto sectors. Traders are closely monitoring the US-China trade discussions in London, as subdued Chinese trade and inflation data dampened sentiment. Focus remains on central banks' forthcoming actions, with the Federal Reserve anticipated to keep rates steady at its June meeting, and the ECB likely to pause as well.
• HK - The Hang Seng surged 1.6% on Monday to 24,181, reaching its highest in nearly three months and recovering from previous losses. Gains were widespread, driven by optimism about upcoming US-China trade talks, with tech stocks leading the way: SMIC and Meituan rose 4.9%, and Alibaba increased by 2.0%. Rare-earth stocks improved as Beijing eased some export approvals, helping alleviate trade tensions. Weak Chinese economic data, however, limited further gains, with May's exports and imports weak and consumer and producer prices declining. Investors are now focused on US inflation data due Wednesday, which could affect expectations for Fed rate cuts. Giant Biogene rose 3.1% after a shareholder announced more investment, with Innovent Biologics (8.0%), Kuaishou (5.5%), and Trip.com (4.4%) also performing well.

Earnings this week:

• Tuesday: GameStop, GitLab
• Wednesday: Chewy, Oracle
• Thursday: Adobe

FX:

• Dollar fell as US-China talks began in London, set to continue for a second day. NZD outperformed its Group of 10 peers amid optimism over the talks. AUDUSD rose 0.4% to 0.6516; GBPUSD advanced 0.2% to 1.3550.
• USDJPY fell 0.2% to 144.63 as Japanese investors sold the most German bonds in a decade. Japan's economy contracted in Q1, supporting the Bank of Japan's cautious stance and increasing political pressure on PM Shigeru Ishiba before a key election.
• EUR recovered from an early decline and returned to the 1.1400 range. Meanwhile, ECB's Kazimir remarked that the bank is close to finishing, or may have already completed, its easing cycle.
• Economic data – AU Business Confidence, UK Unemployment Rate, ECB Survey of Monetary Analysts

Commodities:

• Oil prices rose 1% as US-China trade talks extended, showing progress. WTI remained above $65, highest close since early April and Brent closed near $67. Talks were termed “fruitful” and a “good meeting” by US officials.
• Platinum prices rose above $1,200 an ounce, the highest since May 2021, due to market tightness. A deficit of nearly 1 million ounces is expected this year, with spot prices above futures and record lease rates. Prices have increased by 32% this year.

Fixed income:

• Treasuries posted slight gains, recovering some of Friday's losses without clear catalysts, as investors anticipate CPI data and coupon auctions. Short-term maturities led the movement, steepening the yield curve, unlike Friday's reduction in Fed rate cut expectations. Long-term maturities lagged ahead of Thursday's $22 billion 30-year bond reopening. The auction cycle starts Tuesday with a $58 billion 3-year issue and a $39 billion 10-year reopening on Wednesday.

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