Asian markets shift as China’s economy snaps to forecasts
China’s Q2 Growth Meets Investor Expectations
China’s GDP expanded 5.2 % in the April‑June quarter, buoyed by a sharp export surge as firms shipped ahead of U.S. tariffs. The rise, slightly slower than the first quarter, aligns with forecasts from an AFP survey and follows June exports that outpaced expectations.
Industrial Production Surpasses Forecast
Industrial output climbed above analysts’ projections, signaling resilience in China’s manufacturing sector.
Retail Sales Lag Behind Economic Momentum
Retail expansion stood at 4.8 % in June, well below Bloomberg estimates and highlighting the challenge leaders face in reigniting domestic demand.
Trade War, Now a Framework for Long‑Term Deal
China’s recovery has been hampered by a bruising trade war with the United States, driven by Trump’s sweeping tariffs. The two superpowers de‑escalated their spat last month, agreeing to work on a long‑term pact in London.
Uncertainty Persists Despite Improvement
National Bureau of Statistics deputy director Sheng Laiyun praised the economy’s steady improvement: “Production and demand grew steadily, employment remained stable, household income increased, new growth drivers witnessed robust development, and high‑quality development made new strides.”
Trump’s Tariff Threats Extend to China
Trump warned that Russia’s trading partners, including China, would face 100 % tariffs if Moscow fails to end its Ukraine war within 50 days. He also announced antidumping duties on Mexican fresh tomatoes and 30 % levies on the EU and key partners, pending deals by August 1.
Asian Markets Show Mixed Performance
Hong Kong pared an early rally while Shanghai dipped into negative territory. Tokyo, Sydney, Singapore, Wellington, Taipei, Jakarta rose, with Seoul and Manila in the red.
Wall Street’s Health and Crypto Update
Wall Street enjoyed a healthy day, with the Nasdaq hitting a new record high. Bitcoin fell slightly after Monday’s record high above $123,200, amid optimism over possible regulatory changes in the United States.
Key Figures at 0230 GMT
- Tokyo – Nikkei 225 up 0.1 % at 39,507.28
- Hong Kong – Hang Seng Index up 0.5 % at 24,315.92
- Shanghai – Composite down 0.4 % at 3,503.99
- Euro/dollar – up at $1.1674 from $1.1670
- Pound/dollar – up at $1.3434 from $1.3428
- Dollar/yen – down at 147.63 yen from 147.77 yen
- Euro/pound – up at 86.90 pence from 86.88 pence
- West Texas Intermediate – down 0.4 % at $66.70 per barrel
- Brent North Sea Crude – down 0.3 % at $68.98 per barrel
- New York – Dow up 0.2 % at 44,459.65
- London – FTSE 100 up 0.6 % at 8,998.06
