Asia markets mixed, U.S. futures climb as US-China trade talks to enter second day amid rare earth tensions

Asia stock markets mixed on Tuesday as traders cautiously awaited further details from the second day of US-China trade talks. Officials from both nations met in London on Monday to discuss rare earth shipments and the potential easing of export restrictions, with further negotiations expected to continue on Tuesday. Gold prices fell below $3,310 per ounce on Tuesday, as optimism over easing US-China trade tensions dampened safe-haven demand. Japan ( NKY:IND ) rose 0.78% to above 38,200 while the broader Topix Index gained 0.2% to 2,791 on Tuesday, with Japanese shares extending a winning streak to a third straight day. The Japanese yen weakened to around 145 per dollar on Tuesday, reaching a near two-week low. Meanwhile, Bank of Japan Governor Kazuo Ueda told the parliament on Tuesday that the central bank stands ready to raise interest rates again if they “have enough confidence that underlying inflation nears 2% or moves around 2%.” China ( SHCOMP ) fell 0.61% to around 3,403 while the Shenzhen Component fell 0.2% to 10,230 on Tuesday, with mainland stocks struggling for clear direction as the Sino-US trade negotiations in London enter a second day, and the offshore yuan remained steady to around 7.18 per dollar on Tuesday, as investors awaited further progress over the US-China trade negotiations. The discussions, focused on easing tensions over shipments of technology and rare earth elements, are set to continue on Tuesday morning. These critical materials play a vital role in industries such as aerospace, semiconductors, and defense, and disruptions in their supply threaten global economic stability. Hong Kong ( HSI ) fell 0.25% to 24,222 in early trade on Tuesday. However, the concerns over intensifying competition among China’s top EV makers, as a long-running emissions compliance dispute between BYD and Great Wall Motor escalated, with Geely joining in to criticize BYD’s aggressive price cuts. India ( SENSEX ) rose 0.04% were largely flat in morning trade on Tuesday, with the BSE Sensex hovering around 82,472 after rising for the fourth consecutive session. Investor caution also stemmed from the upcoming release of May consumer price data, expected later this week. Markets anticipate that India’s inflation rate could ease to 3%, the lowest since April 2019. Australia ( AS51 ) rose 0.86% to 8,551 on Tuesday, hovering near four-month highs. The Australian dollar held its gains around $0.651 on Tuesday. In Australia, consumer sentiment rose for the fourth time this year, with the Westpac-Melbourne Institute Consumer Sentiment Index increasing by 0.5% month-over-month to 92.6 in June. Meanwhile, business confidence improved, with the NAB Business Confidence Index rising to 2 in May from -1 in the previous month. In the U.S., on Monday, all three major indexes ended mostly higher as high-stakes trade talks between the US and China began in London. Markets are also closely watching upcoming CPI and PPI reports later this week. Earnings results from GameStop and J.M. Smucker Co. are also on the docket. U.S. stock futures were little changed on Tuesday as markets awaited developments from trade talks between the US and China taking place in London: Dow +0.23% ; S&P 500 +0.34% ; Nasdaq +0.46% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s May CPI declines fourth consecutive month, PPI deflation eases to two-year low China’s trade surplus widens amid weaker exports and deeper import slump Japan’s Q1 GDP revised upward, showing no growth but avoids contraction China to send Vice Premier He Lifeng to UK for U.S. trade talks China approves some rare earth export applications ahead of U.S. trade talks

Source: Seeking Alpha