Geopolitical tensions and Japan’s currency defense efforts pressure equities as China’s exports exceed forecasts despite US tariffs.
Asian stocks fell as Saudi Arabia warned of imminent attacks, heightening regional risks. South Korea and Japan led declines, with AI-related stocks dragging the Nikkei lower. The yen’s slide to 40-year lows prompted intervention concerns, adding to market unease.
China’s July exports rose unexpectedly, defying US tariffs and beating forecasts. However, the PBOC set the USD/CNY reference rate at 6.7904, weaker than the estimated 6.7548. Japanese household spending contracted 6.4% month-on-month in June, worse than the expected 3.1% drop, complicating the BOJ’s rate path.
Investors poured $1.2bn into Chinese gold ETFs, marking the longest streak since March. Meanwhile, the US Senate delayed a crypto vote on the CLARITY Act until September, as lawmakers prepared for recess.