Asian stocks markets stumbled on Thursday as investors grappled with weak Chinese factory data, a plunge in copper prices, and a flurry of global economic news that spanned trade, central bank moves, and corporate earnings.
Key Drivers Behind the Market Mood:
China Disappoints: Asian stocks
China’s July manufacturing activity came in softer than expected, raising more red flags about its sluggish post-COVID recovery. The PMI miss especially rattled Hong Kong and mainland Chinese shares, dragging down broader Asian indices.
Yen Strengthens:
The Bank of Japan kept interest rates steady at 0.5% but raised its inflation forecast, signaling potential rate hikes ahead. That sent the yen up 0.6% to 148.62 per dollar — even as Japanese equities stayed mostly positive.
Copper Collapses:
In a surprise move, President Trump slapped a 50% tariff on copper pipes and wiring, triggering a 19% plunge in copper futures. But key input materials like ores and cathodes were spared, sparking confusion and a negative ripple through commodity markets.
U.S. Trade Blitz:
In the race to meet his self-imposed August 1 deadline, Trump unveiled new trade deals:
- South Korea: 15% tariff + $350B U.S. investment deal
- India: 25% tariff pending
- Global tension: Markets remain jittery with unfinished deals and rising protectionism.
Mixed Signals from the Fed:
The Fed held interest rates steady, but for the first time in decades, two governors dissented, pushing for a rate cut. Chairman Powell’s remarks offered little comfort, downplaying hopes for a cut in September.
The U.S. dollar index hit a 2-month high and is poised for a 3.1% monthly gain.
Tech Stocks to the Rescue?
Meanwhile, strong earnings from Microsoft and Meta, driven by AI and cloud growth, helped lift Nasdaq futures 1.2% and S&P futures 0.8%, offering a ray of optimism for global investors.
Oil Steady, For Now:
Crude oil prices remained relatively flat, despite market turbulence. Brent September futures hovered at $73.10, while WTI stayed around $70.
Market Snapshot:
- MSCI Asia-Pacific ex-Japan: ⬇️ 0.7%
- Nikkei 225: ⬆️ 0.9%
- Yen: ⬆️ 0.6% vs USD
- Copper futures: ⬇️ 19%
- Dollar Index: Near 2-month high
Takeaway:Markets are navigating a perfect storm of soft data, hard tariffs, and cautious central banks. While tech earnings in the U.S. provide some relief, investors are bracing for continued volatility — especially as Trump’s global trade reshuffle rolls on.