Public Markets 8-Hour Briefing
×Market Performance
Nvidia stock remained downbeat despite a blockbuster quarterly performance, while US stock futures fell as Nvidia's post-earning gains curbed. Japan's Nikkei 225 hit record highs on cooling rate hike bets and technology gains. In Australia, Qantas shares fell sharply as returns from overseas flights shrank, marking the biggest drop in almost a year. Chinese tech giant Baidu experienced a swift $11 billion selloff as investors struggle to see tangible results from AI investments.
Currencies
The yuan extended its advance after the People's Bank of China set another stronger fixing, reaching its strongest level in nearly three years versus the dollar. Meanwhile, the yen outperformed Group-of-10 peers after a media report sustained expectations that the Bank of Japan remains on a tightening path. As German Chancellor Friedrich Merz visits China, the yuan picked up just in time for the visit from the critic. In emerging markets, Philippine peso bonds emerged as the best performers in EM Asia on liquidity and dovish tilt.
Commodities
Oil prices rose on likely position adjustments before US-Iran nuclear talks, later steadying as traders focused on the upcoming negotiations. Gold prices extended gains as traders weighed geopolitical tensions in the Middle East and the impact of US tariffs on global trade. Lithium prices and shares surged after Zimbabwe suspended concentrate exports, fueling fears about global supplies of the battery ingredient.
Corporate Actions
Toyota is planning a $19 billion share sale by banks and insurers as soon as 2026, representing a major boost to Japan's corporate reform efforts. FS KKR Private Credit Fund cut its dividend amid rising bad loans, reducing the payout to 48 cents a share from 70 cents. Energy infrastructure company Momentum Midstream is exploring a sale that could fetch $5 billion.
Regional Markets
Hong Kong Exchange posted a 15% gain in net income as a flood of Chinese firms sought to sell shares and trading jumped. Indonesia successfully raised $4.5 billion in a global bond sale, overcoming the threat of a credit rating downgrade. Indian banks are snapping up bonds as holdings approach the regulatory minimum threshold, prompting some to speed up purchases.