Global Market Quick Take: Asia – August 11, 2025

Global Market Quick Take: Asia – August 11, 2025 

Key points:  

• Macro: AMD and NVDA to share 15% revenue on certain chips with US govt 
• Equities: DBS Bank rose 2%, hitting record $50.74 after robust earnings 
• FX: USD rose slightly; CAD fell due to unexpected 40.8k job loss 
• Commodities: Oil remains pressured after its steepest weekly drop since late June 
• Fixed income: 10 year yields rose to 4.3%, breaking a three-week decline 

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Disclaimer: Past performance does not indicate future performance.  

 Macro:  

• Nvidia and AMD have reached a groundbreaking agreement to share 15% of revenue from specific chip sales in China with the U.S. government in return for export licenses for Nvidia’s H20 and AMD’s MI308 chips, as reported by the Financial Times.
• U.S. President Trump and Russian President Putin will meet in Alaska on August 15 to discuss the Ukraine conflict. Trump announced the meeting, and the Kremlin approved of the location due to its proximity to Russia. Plans remain flexible, with a possibility of Ukraine's President Zelensky joining.
• China's consumer prices held steady in July 2025, exceeding the forecasted 0.1% drop. Non-food prices rose, aided by consumer goods subsidies, with increases in housing, clothing, healthcare, and education sectors. Food prices fell sharply by 1.6%, while transport costs decreased at a slower rate.
• The FAO Food Price Index increased by 1.6% to 130.1 points in July 2025, the highest since February 2023, due to higher meat and vegetable oil prices. It's 7.6% above July 2024 levels but 18.8% below its March 2022 peak. Meat and vegetable oil prices reached record highs, offsetting declines in other categories.
• Canada lost 41,000 jobs in July, defying forecasts of a 13,500 gain, and maintained a 6.9% unemployment rate, prompting concerns over domestic demand. Trump's 35% aluminum tariff and possible auto-parts duties add pressure on the economy. 

Equities:  

• US - On Friday, U.S. stocks rose with the S&P 500 up 0.8%, the Nasdaq climbing nearly 1% to a record high for the second day, and the Dow gaining 206 points. Technology stocks led the surge, with Apple rising 4.2% after announcing a $600 billion U.S. investment plan, boosting the Nasdaq. Investor optimism grew with expectations of Fed rate cuts following President Trump's nomination of Stephen Miran to the Fed Board. Despite tariff concerns, strong earnings lifted Gilead Sciences and Monster Beverage by over 6%, and Expedia by 4%. Tesla gained 2.3% despite disbanding its Dojo team, while Intel rose 0.9% amid continued board support. For the week, the S&P 500 and Nasdaq rose by 2.4% and 3.9%, respectively, while the Dow was up 1.4%. 
• EU - European stocks concluded the first week of August with strong gains as markets evaluated the economic outlook amid U.S. tariff uncertainties and potential ECB policy moves. The Eurozone's STOXX 50 rose 0.4% to 5,354, marking a 3.6% weekly gain, while the STOXX 600 increased 0.3% to 547, reflecting a 2.2% rise over the week. Banks like BBVA, BNP Paribas, and UniCredit each saw rises exceeding 2%. Siemens advanced 2.2% after a volatile week, while Volkswagen, Mercedes-Benz, and Stellantis each gained over 2%, leading gains among auto producers. Conversely, Munich Re dropped 7.1% following its earnings report, and Rheinmetall fell 1.5% amid reports of possible U.S.-Russia ceasefire agreements in Ukraine. 
• HK - Hang Seng dropped 0.9% to close at 24,859 on Friday, undoing gains from the previous sessions due to broad losses. Sentiment weakened ahead of China's August 12 tariff deal deadline and the upcoming July CPI and PPI data, with forecasts of a consumer price dip and continued producer deflation amid trade uncertainties. The tech sector fell about 1.5%, led by a nearly 8% drop in SMIC after weak Q2 earnings. Despite this, the index gained 1.4% for the week, recovering from last week's 3.5% decline thanks to positive July trade data from China. Meanwhile, mainland stock markets stayed near 10-month highs, buoyed by optimism surrounding the upcoming NPC Standing Committee meeting and Q2 earnings results. 
• SG - STI fell 0.4%, or 18.32 points, closing at 4,239.83 as investors assessed geopolitical uncertainties and anticipated corporate earnings. DBS Bank led STI gainers, rising 2% to a record $50.74 after strong second-quarter earnings. Meanwhile, Sembcorp was the top loser, plunging 13.9% to $6.72 following a drop in first-half earnings. Local banks also declined: OCBC Bank fell 1.7% to $16.79, and UOB slipped 0.3% to $35.70. 

Earnings this week: 

• Monday: Barrick Gold (GOLD), Franco-Nevada (FNV)
• Tuesday: Sea Limited (SE), Circle (CRCL), Galaxy Ent. (27HK), CoreWeave (CRWV)
• Wednesday: Cisco (CSCO), Brinker International (EAT), Tencent (700HK), Asics Corp (7936JP), Commonwealth Bank of Australia (CBA)
• Thursday: JD.com (JD), Applied Materials (AMAT), John Deere (DE), SOMPO (9630JP), NetEase (9999), Tapestry (TPR)
• Friday: Flowers Foods (FLO), Alibaba (9988HK), Sands China (1928HK) 

FX: 

• USD gained slightly amid limited news on Friday. President Trump earlier announced Miran as temporary CEA Chair, filling Fed Governor Kugler's seat and allowing time until January for permanent appointments, including a new Fed Chair.
• Among G10 currencies, the JPY lagged due to higher US yields, while USDJPY traded around 147.70 following US-Japan tariff discussions.  
• GBP slightly strengthened against USD, with GBPUSD trading narrowly between 1.3419-1.3454, as BoE's Pill discussed interest rate cuts.  
• CAD weakened following a surprising 40.8k job loss contrary to expectations. USDCAD traded around 1.3750. 
  
  Economic Calendar – Italy Inflation Rate, Italy Balance of Trade 

Commodities:  

• Oil prices declined after their largest weekly drop since late June, ahead of a U.S.-Russia meeting that could increase supply by ending the Ukraine war. Brent crude was near $66, and WTI was above $63. President Trump announced the Alaska summit but did not impose new sanctions or tariffs, despite an August 8 ceasefire deadline for Russia. 
• Gold futures declined as traders awaited White House clarification on tariffs, following a surprise decision to impose duties on bullion bars. Futures traded $65 above the global spot benchmark, with the U.S.-London price gap falling below $60 an ounce after initially rising above $100. 

Fixed income:  

• Treasury dropped, increasing yields by 3 to 5 basis points across maturities. This was impacted by European bond market losses and anticipation of next week's July CPI data, which could affect expectations for Fed rate cuts. The selloff also resulted from Treasury auctions totaling $125 billion and a larger-than-expected corporate issuance. Meanwhile, Canada's bond market rallied on softer July jobs data. Canadian 10-year bonds surpassed US counterparts by almost 5 basis points, with front-end yields reflecting a projected 25 basis point rate cut by the Bank of Canada by year-end. Pressure from European bonds and rate-lock flows ahead of this week's projected $40 billion to $45 billion corporate issuance contributed to the Treasury selloff, potentially including tech companies addressing AI and data-center funding needs.  

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