Asia markets mostly rise as investors react to China’s mixed economic data; U.S. futures slightly rise ahead of key earnings and inflation data

Asian stocks traded in a narrow range on Tuesday, as investors reacted cautiously to China’s surprisingly strong economic growth figures and persistent worries about rising U.S. trade tariffs. Investors remained focused on ongoing trade talks, while also anticipating key U.S. inflation data and a wave of bank earnings later in the week. On the geopolitical front, US President Donald Trump reiterated openness to renewed tariff negotiations with the European Union and other key trading partners. Geopolitical tensions added to the uncertainty after President Trump threatened to impose secondary tariffs of 100% on Russia unless a peace agreement with Ukraine is reached within 50 days. Gold prices rose to around $3,360 per ounce on Tuesday, as concerns over the impact of US President Donald Trump’s tariff war enhanced the metal’s safe-haven appeal. Japan ( NKY:IND ) rose 0.24% to below 39,430 while the broader Topix Index rose 0.5% to 2,837 on Tuesday, with Japanese shares showing mixed performances. The Japanese yen hovered around 147.6 per dollar on Tuesday, near its lowest level in two months, as persistent trade-related tensions weighed on sentiment. China ( SHCOMP ) fell 0.65% slipping 0.2% to around 3,510 while the Shenzhen Component rose 0.4% to 10,730, as investors digested a raft of economic data that painted a mixed picture of the recovery, and the offshore yuan steady to around 7.17 per dollar on Tuesday, pausing gains for the second consecutive session. China’s economy expanded 5.2% yoy in Q2 2025 , slowing from 5.4% in the prior two quarters and marking the slowest pace since Q3 2024. China’s industrial production rebounded strongly in June 2025, with a 6.8% year-on-year increase, marks a significant acceleration from May’s 5.8%. China’s retail sales increased by 4.8% year-on-year in June 2025, slowing from over one-year high of 6.4% and missing market expectations of a 5.6% gain. China’s fixed-asset investment rose by 2.8% year-on-year in the first half of 2025, coming in below market forecasts of a 3.7% growth. China’s surveyed unemployment rate stood at 5.0% in June 2025, unchanged from the previous month and in line with market expectations. China’s industrial capacity utilization rate decreased to 74 percent in the second quarter of 2025 from 74.9 percent in the same period a year earlier, marking the lowest rate since the first quarter of 2020. China’s new home prices in 70 cities declined by 3.2% year-on-year in June 2025, slowing from a 3.5% drop in the previous month. Hong Kong ( HSI ) rose 0.36% to 24,244 around midday Tuesday, snapping a three-session winning streak. India ( SENSEX ) rose 0.24% to 82,390 in early trade on Tuesday, snapping a four-session losing streak. The index attempted to rebound from its three-week low touched the previous day, supported by hopes of a potential US-India trade deal. Commerce and Industry Minister Piyush Goyal said on Monday that negotiations with the US are expected to result in a “win-win” trade-complementing agreement. Australia ( AS51 ) rose 0.59% to 8,623 on Tuesday, rebounding from a modest decline in the prior session and reaching its highest level in over a month. The Australian dollar edged higher to around $0.654 on Tuesday, following a notable decline in the previous session. Domestically, sentiment was further buoyed by positive economic data, with the Westpac-Melbourne Institute Consumer Sentiment Index rising by 0.6% month-on-month to 93.1 in July 2025, following a 0.5% uptick in June. Investors are now turning their attention to key domestic data releases later this week, including consumer inflation expectations and the latest employment figures. In the U.S., on Thursday, all three major indexes ended slightly higher as investors weighed renewed tariff threats from President Trump against optimism over upcoming earnings and inflation data. President Donald Trump urged the Federal Reserve to slash interest rates to 1%, arguing it would reduce federal borrowing costs and boost economic growth. “We need a 1% rate. The Fed is killing growth,” he said on Monday. Investors now await the US CPI report, due later today, for more clues into the Fed’s rate path. U.S. stock futures slightly higher on Tuesday as investors turned cautious ahead of major bank earnings and a closely watched inflation report: Dow +0.08% ; S&P 500 +0.30% ; Nasdaq +0.49% . JPMorgan Chase, Wells Fargo, and Citigroup are set to report quarterly results, potentially offering fresh insights into the health of the financial sector. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s GDP growth slows to 5.2% in Q2, slightly beats forecasts China’s June industrial output rises by 6.8%, but retail sales & investment disappoints China’s trade jumps: Exports beat, imports miss on domestic weakness Japan’s May industrial output revised down to 0.1% fall Japan PPI growth hits 10-month low to 2.9% y/y in June

Source: Seeking Alpha