APAC Market Wrap - July 9

China: By the close, the Shanghai Composite Index fell 0.13%, the Shenzhen Component Index dropped 0.06%, and the ChiNext Index rose 0.16%. Markets surged early but pulled back, with the major indices showing mixed results and the Shanghai index losing the 3,500-point mark.

 

Total turnover for Shanghai and Shenzhen exchanges reached 1.51 trillion yuan, up 51.2 billion yuan from the previous trading day. Sector-wise, diversified finance, short dramas, banking, and new urbanization led gains, while insurance, rare earth permanent magnets, non-ferrous metals, and wind power saw the largest declines.  

 

Hong Kong: All major indices fell, with the Hang Seng Index down 1.06%, the Tech Index down 1.76%, and the China Enterprises Index down 1.28%. Sector performance saw tech stocks under pressure, pharmaceutical stocks rising across the board, gold stocks declining, most non-ferrous metal stocks falling, semiconductors weakening, and casino and gaming stocks gaining.  

 

Japan Stock Market: The Nikkei 225 Index closed up 0.3% at 39,821.28 points, led by gains in automotive and financial stocks. By industry, 27 sectors including oil and coal, mining, other financials, and commodity futures rose, while 6 sectors like non-ferrous metals, machinery, electric power and gas, and other products fell.  

 

South Korea Stock Market: The Korea Composite Stock Price Index (KOSPI) rose 0.6% to 3,133.74 points. Sector-wise, defense, securities, and shipbuilding stocks drove significant gains, while energy equipment, power, and banking sectors mostly declined.  

 

Singapore Stock Market: The Straits Times Index rose 0.18%, closing at 4,055.17 points. Steel, construction, and real estate sectors led gains, while cyclical retail, forestry, industrial products, and insurance saw the largest drops.  

Key Events  

South Korea to Honor Existing U.S. Defense Cost-Sharing Agreement  

 

South Korea’s Foreign Ministry stated Wednesday that it will adhere to the current terms of the U.S.-Korea defense cost-sharing agreement. This follows U.S. President Trump’s claim that South Korea should bear its own defense costs.  

 

The ministry said, “The government’s stance is to fulfill the 12th Special Measures Agreement (SMA) effectively agreed upon and in force,” referring to the defense cost-sharing deal signed last year.  

 

Malaysia Central Bank Cuts Rates for First Time in Over Three Years Amid External Uncertainty  

 

Malaysia’s central bank joined the rate-cut trend, lowering its benchmark rate for the first time in over three years to support the economy.  

 

The bank cut its overnight policy rate by 25 basis points to 2.75% on Wednesday, the first reduction since May 2023.  

 

Singapore Significantly Shortens Wait Times for Family Office Setups  

 

A senior Singapore official said Wednesday that the city-state’s financial regulator is working to reduce wait times for wealthy individuals managing assets, while maintaining strict standards.  

 

Monetary Authority of Singapore Deputy Chairman Leong Sing Chiong noted that family offices now wait three months for tax incentives, down from 12 months, and is collaborating with private banks to speed up account openings.  

 

Japanese Business Leader Warns: Japan’s Tough Trade Stance with U.S. “Betrayed” Trump  

 

Suntory CEO, a prominent business leader, said Japan’s firm stance on full tariff exemptions made Trump feel “betrayed,” leading to a tariff hike from a possible 10% to 25%.

 

He warned that Japan is now on the defensive, risking larger concessions and losing the diplomatic legacy of Shinzo Abe. Recently, Prime Minister Shigeru Ishiba declared “no compromise”!  

Institutional Views  

Citi: Fed Minutes May Signal Lowering Rate-Cut Threshold  

Citi analysts suggest the Fed’s June meeting minutes may read more dovish than Chair Powell’s neutral-toned June press conference, which emphasized the dual mandate.

 

The minutes could better reflect Powell’s unstated view: the threshold for rate cuts is declining.  

 

Citi: U.S. Copper Tariffs Could Push LME Copper Below $9,000  

 

Citi’s Tom Mulqueen said Trump’s Tuesday announcement of a 50% U.S. copper tariff could drive LME copper prices below $9,000 per ton. Commerce Secretary Luttig confirmed the tariff will take effect by August 1 or earlier.

 

The timeline clarity ends the recent flow of spot copper to the U.S. from non-U.S. regions, likely pushing non-U.S. prices to $8,800 per ton over the next 0-3 months.  

 

Goldman Sachs: Maintains Year-End LME Copper Forecast at $9,700/ton  

 

Goldman Sachs holds its December 2025 LME copper price forecast at $9,700 per ton, adjusting its U.S. copper import tariff baseline from 25% to 50%.

 

It sees reduced odds of copper exceeding $10,000 in Q3. U.S. copper imports are expected to accelerate in coming weeks as tariff preparation intensifies.  

 

Deutsche Bank Survey: Trump Policies Boost U.S. Crypto Adoption  

 

A June Deutsche Bank survey found U.S. consumers are the largest crypto users, led by men, younger, and affluent groups. U.S. adoption hit 17% last month, topping the UK’s 11% and EU’s 10%.

 

Among U.S. 18-34-year-olds, adoption rose from 24% in January to 29% in June, driven by optimism over Trump’s pro-crypto policies.

 

Affluent respondents made up 32% of U.S. adopters, with 23% of men using crypto for payments or investments versus 13% of women, who felt less confident in understanding it.