Hong Kong stocks climb, yen rallies as Ishiba pledges firm stance.
Hong Kong | Hang Seng
Hang Seng pushed past 25,000 points for the first time in three years, buoyed by a rally in technology giants including Alibaba and JD.com, as well as food‑delivery leader Meituan. The index reached 25,010.90 early, its highest level since February 2022.
Tech and Semiconductors
- Taiwanese chipmaker TSMC reported strong earnings, spurring a surge in tech stocks.
- US silicon titan Nvidia announced it will resume sales of its H20 AI chips to China after Washington lifted licensing restrictions that had halted exports.
- China’s stimulus, creating a surge in the money supply, added momentum to Hong Kong’s market, which has risen around 25 % since the turn of the year.
Global Market Gains
- Shanghai Composite rose 0.5 % at 3,550.33.
- Singapore, Seoul, Wellington, Manila and Jakarta also posted gains.
- Sydney and Taipei slipped, while Tokyo closed for a holiday.
Japanese Yen
Japanese Prime Minister Shigeru Ishiba vowed to remain in office after his ruling coalition lost its overall majority in last week’s lower‑house election. The yen strengthened against the dollar early, reaching 148.43 per dollar.
Political Context
- Despite Ishiba’s decision to stay, pressure will mount on the coalition to cut or abolish the consumption tax, which Ishiba has opposed in view of Japan’s colossal national debt of more than 200 % of GDP.
- Ishiba struggles to reach a trade deal with Donald Trump, who threatened tariffs of 25 % on goods from Japan.
- Trump says the deadline of US tariffs is August 1. Until then we have to do our best with our body and soul.
Market Reaction
- The yen hit 147.79 per dollar on Friday, but pared the gains to 148.45 early.
- US Treasury Secretary Scott Bessent said a mutually beneficial trade agreement remains within the realm of possibility.
- Paul Mackel, global head of forex research at HSBC, wrote that the election result raises questions about Ishiba’s future, fiscal policy expansion, and domestic politics as potential hurdles in reaching a US trade agreement.
Key Figures (≈ 02:30 GMT)
- Hong Kong—Hang Seng: + 0.5 % at 24,944.31
- Shanghai—Composite: + 0.5 % at 3,550.33
- Tokyo—Nikkei 225: Closed for a holiday
- USD/JPY: – 148.43 (down from 148.73)
- EUR/USD: – 1.1624 (down from 1.1627)
- GBP/USD: + 1.3415 (up from 1.3414)
- EUR/GBP: – 86.65 pence (down from 86.67 pence)
- WTI crude: + 0.3 % at $67.52 per barrel
- Brent crude: + 0.3 % at $69.46 per barrel
- NY Dow: – 0.3 % at 44,342.19 (close)
- London FTSE 100: + 0.2 % at 8,992.12 (close)
