Stocks in Asia plummet due to disappointing economic data from China and a significant drop in copper prices
Markets in Motion: Tech Earnings, Trade Tensions, and Oil Prices
In a day marked by anticipation and uncertainty, global markets are bracing for the Bank of Japan's policy decision later today. Meanwhile, the ongoing trade policy deals and geopolitical tensions continue to cast a shadow over the financial landscape.
The Federal Reserve's rate-setting committee voted 9-2 to hold interest rates steady for the fifth consecutive meeting, with two governors dissenting for the first time in more than three decades. Despite this, the dollar remains near a two-month high, with the dollar index at 98.812, just shy of the two-month high of 99.987 it touched yesterday.
In the tech sector, Alphabet (Google) reported strong Q2 2025 results, with revenues up 14% year-over-year to $96.4 billion. The robust business momentum, driven by double-digit growth in Google Cloud, YouTube ads, and Google Search services, tends to support upward stock prices in the tech sector. Mastercard also posted solid Q2 2025 earnings, with a 17% increase in net revenue.
However, not all tech giants have fared as well. Intel reported flat revenue year-over-year for Q2 2025 but suffered an EPS loss due to restructuring and impairment charges. This subdued performance and financial challenges can weigh on semiconductor stocks and contribute to sector volatility.
Oil prices have risen for a fourth straight day, with concerns about supply shortages due to Trump's push for a swift resolution to the war in Ukraine and threats of tariffs on countries buying Russian oil. The ongoing tension has led to a 0.33% increase in Brent crude futures for September delivery and a 0.21% gain in US West Texas Intermediate crude for September.
Economic activity in Hong Kong and China has shown signs of weakness, according to official PMI gauges. The details of the GDP report suggest an economy losing steam due to uncertainty from Trump's protectionist trade policy. The Korean won appreciated 0.3% following Trump's announcement of a 15% tariff on imports from South Korea.
Nasdaq futures are 1.2% higher, and S&P 500 futures have advanced 0.8%, indicating a positive start to the day for the stock market. However, the potential 25% tariff on goods imported from India, though still under negotiation, remains a source of uncertainty.
In summary, the tech sector's mixed earnings reports have generally bolstered equities, particularly in software and cloud businesses, supporting the tech-heavy NASDAQ. The dollar’s movement is influenced partially through these market dynamics but depends on broader economic conditions beyond earnings alone. The ongoing trade policy deals and geopolitical tensions continue to shape the financial landscape, with oil prices and economic indicators providing additional insights into market trends.
- In the midst of ongoing trade policy talks and geopolitical tensions, the Malaysian economy might be affected by the uncertainties, particularly in terms of general-news and politics.
- The robust performance of tech giants like Alphabet and Mastercard in their Q2 2025 earnings reports suggests a positive influence on the Malaysian industry and finance, given the global interconnectedness in these sectors.
- Inflation could potentially rise in Malaysia due to the increase in oil prices for a fourth consecutive day, as concerns about supply shortages from the war in Ukraine escalate, affecting the overall economy.
- The Bank of Malaysia's policy decisions, similar to the Bank of Japan, play a crucial role in managing the country's economy, and any significant changes could impact the local industry, finance, and technology sector.
