Key Takeaways
- LG Energy Solution (LGES) reported a 152% surge in Q2 operating profit to ₩492 billion ($358.73 million), significantly beating analyst forecasts, driven by front-loaded demand ahead of potential U.S. tariffs.
- Hyundai Mobis ([HYUNDAI MOBIS](/stock/HYUNDAI MOBIS)) exceeded revenue and operating profit expectations in Q2, with revenue reaching ₩15.94 trillion and operating profit at ₩870 billion, though net profit missed estimates.
- A Japanese government panel has approved the creation of human embryos using iPS cells for research purposes, with strict guidelines prohibiting implantation into a human or animal uterus.
- Sony (SONY) has acquired a 2.5% stake in Bandai Namco ([BANDAI NAMCO](/stock/BANDAI NAMCO)) for approximately $464 million (68 billion yen), forming a strategic partnership focused on expanding global anime and manga fan communities.
- Escalating armed clashes along the Thai-Cambodian border have resulted in at least 14 Thai civilian deaths and 46 injuries, with both nations blaming each other for initiating hostilities.
Corporate Earnings and Outlook
South Korean battery giant LG Energy Solution (LGES) announced robust second-quarter results, with operating profit more than doubling to ₩492 billion ($358.73 million), significantly exceeding the LSEG SmartEstimate of ₩298 billion. This substantial increase was largely attributed to front-loaded demand as some customers stockpiled batteries in anticipation of new U.S. tariffs. Despite the strong performance, LGES shares were down 1.9% post-announcement, and the company noted potential cost pressures from tariffs and policy changes alongside an anticipated slowdown in electric vehicle (EV) demand from automakers by the first half of next year.
Meanwhile, Hyundai Mobis ([HYUNDAI MOBIS](/stock/HYUNDAI MOBIS)) reported a strong second quarter, with revenue reaching ₩15.94 trillion, surpassing estimates of ₩15.26 trillion. Operating profit also beat expectations at ₩870 billion, a 37% year-over-year increase. However, net profit came in at ₩932.46 billion, missing the estimated ₩1.06 trillion. The company's parent, Hyundai Motor ([HYUNDAI MOTOR](/stock/HYUNDAI MOTOR)), saw its Q2 profit drop by nearly 16% despite record sales, largely due to the impact of new U.S. tariffs on imported cars. Hyundai Motor ([HYUNDAI MOTOR](/stock/HYUNDAI MOTOR)) warned that tariff-related losses exceeded ₩800 billion in Q2 and could surpass ₩1 trillion in Q3.
In other corporate news, Honeywell (HON) raised its 2025 forecasts after exceeding Wall Street's second-quarter expectations, driven by sustained demand for its aerospace parts and services. The company now projects adjusted EPS between $10.45 and $10.65, up from its previous range.
Geopolitical and Diplomatic Developments
A Japanese government panel has given its approval for the creation of human embryos from induced pluripotent stem (iPS) cells for research purposes. The bioethics panel's report specifies that these embryos should not be cultured for more than 14 days and must not be implanted into a human or animal uterus, citing ethical concerns about potential human birth. This development aims to determine if human eggs and sperm created from iPS cells function normally, with human applications expected to become technologically feasible soon.
Tensions have escalated along the Thai-Cambodian border, with armed clashes resulting in the deaths of at least 14 Thai civilians and 46 injuries. Both Thailand and Cambodia have accused each other of initiating the conflict, which involved small arms, artillery, rockets, and Thai airstrikes. The fighting has spread to multiple areas along the border, prompting international concern.
Diplomatic efforts between Japan and South Korea are focused on pursuing a stable development of ties.
Market Movements and Economic Indicators
Asia-Pacific stocks traded lower as investors weighed recent trade developments. The U.S. Dollar Index (DXY) saw a rebound, rising by 0.24% to 97.4514 on July 25, 2025, after experiencing its largest weekly decline in a month. The dollar's performance was influenced by reduced global trade tensions following a U.S. trade deal with Japan and stronger T-note yields.
China's yuan opened slightly weaker against the U.S. dollar, with the USDCNY reference rate fixed at 7.1419. The People's Bank of China (PBoC) injected 789.3 billion yuan through 7-day reverse repos at an unchanged rate of 1.40%, indicating a net injection of 601.8 billion yuan in open market operations.
In Japan, Tokyo's core consumer inflation in July slowed to 2.9% year-on-year, slightly below the median market forecast of 3.0%, but remained well above the Bank of Japan's (BOJ) 2% target. This data is expected to be a key factor in the BOJ's upcoming rate review. Japan also offered 0.5 trillion yen in Japanese Government Bonds (JGBs) through an enhanced-liquidity auction. Earlier JGB auctions saw weak demand, with the 40-year JGB auction logging the lowest demand since 2011, reflecting concerns over political uncertainty and fiscal positions.
Economists are divided on Singapore's monetary policy following surprise growth. The Monetary Authority of Singapore (MAS) is expected to issue its next monetary policy statement on July 30. While Singapore's GDP expanded by 4.3% year-on-year in Q2, ING suggests the MAS is likely to ease monetary policy due to slowing growth momentum, currency overvaluation, and persistent external risks. The IMF also stated that further easing of monetary policy in Singapore is warranted in the near term.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.