Asian markets gain on Wall Street rebound and regional economic data; U.S. futures edge higher on earnings momentum

Asia shares mostly rise on Tuesday following a rally on Wall Street overnight amid some bargain hunting after Friday’s selloff and rising bets on a September rate cut. The European Union will suspend two planned tariff countermeasure packages for six months after reaching an agreement with U.S. President Donald Trump, an EU Commission spokesperson confirmed Monday. Gold prices held steady at around $3,370 per ounce on Tuesday following three days of gains, supported by growing expectations of a US interest rate cut in September. Japan ( NKY:IND ) rose 0.69% to around 40,500, while the broader Topix Index added 0.4% to 2,928 on Tuesday, rebounding from the prior session’s losses. The Japanese yen hovered around 147 per dollar on Tuesday, holding recent gains after minutes from the Bank of Japan’s June meeting indicated policymakers remain open to further rate hikes if trade tensions subside. The S&P Global Japan Services PMI rose to 53.6 in July 2025, slightly above the flash estimate of 53.5 and up from 51.7 in the previous month, marking the fourth straight month of expansion and the fastest pace since February. The S&P Global Japan Composite PMI came in at 51.6 in July 2025. Investors also digested minutes from the Bank of Japan’s June meeting , which showed policymakers remain open to additional rate hikes if trade tensions ease. However, the board reiterated that current interest rates remain appropriate given ongoing uncertainties. A Japanese Labour Ministry panel recommended on Monday a hike of 63 yen, or 6.0%, in the average minimum hourly wage for this fiscal year. The increase is up from the previous year’s proposed 50-yen hike and marks the largest rise since at least 2002. China ( SHCOMP ) rose 0.75% to around 3,600, while the Shenzhen Component added 0.35% to 11,080 on Tuesday, building on gains from the previous session, and the offshore yuan traded to around 7.18 per dollar on Tuesday, holding its three consecutive session of gains, as upbeat services data and a firmer PBOC fix helped boost sentiment. The Caixin China General Services PMI jumped to 52.6 in July, the highest since May 2024, up from June’s nine-month low of 50.6 and well above forecasts of 50.2. The S&P China General Composite PMI dipped to 50.8 in July 2025 from June’s three-month high of 51.3. Investors also cautiously awaited China’s July trade data and upcoming inflation figures, amid concerns over rising trade barriers and weak domestic demand. Hong Kong ( HSI ) rose 0.54% to 24,711 on Tuesday morning, reversing gains from the prior session. The S&P Global Hong Kong SAR PMI rose to 49.2 in July 2025 from 47.8 in June, marking the highest reading in six months. India ( SENSEX ) fell 0.45% to 80,618 in morning trade on Tuesday, erasing gains from the previous session, mainly weighed by tech, healthcare, and financial services. India’s Foreign Ministry on Monday rejected U.S. and E.U. criticism of its Russian oil imports as “unjustified and unreasonable.” The country’s spokesperson, Randhir Jaiswal, said the purchases are necessary to provide affordable and stable fuel prices to its citizens. This pushback follows U.S. President Donald Trump’s threat to place new tariffs on India. The HSBC India Services PMI was revised higher to 60.5 in July 2025, up from the preliminary estimate of 59.8 and slightly above June’s reading of 60.4. Investors also looked ahead to the RBI’s policy meeting on Wednesday. Australia ( AS51 ) rose 1.27% to 8,730 on Tuesday, following a subdued performance in the previous session. The Australian dollar fell to around $0.646 on Tuesday, as mounting expectations of an interest rate cut dampened market sentiment. The S&P Global Flash Australia Services PMI Business Activity Index rose to 54.1 in July from 51.8 in June, marking the highest level since March 2024. The S&P Global Australia Composite PMI rose to 53.8 in July from 51.6 in June, marking the strongest expansion in private sector activity since April 2022. On the economic front, the ANZ-Indeed Australian Job Ads index recorded its sharpest monthly drop since February in July 2025, marking the fourth decline so far this year. Household spending in Australia grew by 0.5% month-over-month in June 2025, following a marginally revised 1.0% increase in May, marking the second consecutive month of growth after interest rate cuts by the central bank in May. In the U.S., on Monday, all three major indexes ended higher with the S&P 500 rising 1.5%, snapping four-day losing streak, the Dow jumping 585 points and the Nasdaq surging 1.9%, as investors snapped up shares following Friday’s sell-off. U.S. stock futures ticked higher on Tuesday as investors digested the latest round of corporate earnings: Dow +0.17% ; S&P 500 +0.22% ; Nasdaq +0.27% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector expands at fastest pace in 14 months in July to 52.6 Japan’s services growth accelerates in July, BOJ signals openness to rate hikes Australia’s services sector growth jumps to 16-month high in July Australia’s Q2 producer price index rises 0.7%, following soft consumer inflation report China’s manufacturing sector contracts unexpectedly in July to 49.5

Source: Seeking Alpha