Key Takeaways
- China's Yuan weakened at open against the dollar, following the People's Bank of China's (PBoC) significant net drain of 432.8 billion Yuan from open market operations.
- Lithium giants Ganfeng Lithium and Tianqi Lithium surged over 11% and 15% respectively at market open on unspecified "suspension news."
- Oil prices declined amidst anticipation of US-Russia discussions on Ukraine and the impact of new US tariffs on Chinese imports.
- Keppel (BN4.SI) is set to secure US$778 million from the sale of a majority stake in M1 Telecom.
- Japanese car manufacturers are significantly lagging in UK electric vehicle sales, with major brands experiencing sharp declines in the first half of 2025.
Asia Markets and Currency Movements
Asian markets opened mixed as the deadline for a potential U.S.-China tariff truce loomed. Seoul shares, however, opened higher, tracking overnight gains on Wall Street.
The Chinese Yuan opened at 7.1835 per Dollar, slightly weaker than its last close of 7.1799. This comes as the People's Bank of China (PBoC) injected 112 billion Yuan through 7-day reverse repos at an unchanged rate of 1.40%. Despite the injection, the PBoC drained a net 432.8 billion Yuan from open market operations. The central bank also fixed the USDCNY reference rate at 7.1405, a shift from the previous fix of 7.1382 and a notable change from the prior close of 7.1799. Taiwan's overnight rate held steady at 0.805%.
Commodity Markets and Corporate Deals
Oil prices experienced a decline amid anticipation of US-Russia discussions concerning Ukraine and the imposition of new US tariffs on Chinese imports. Brent crude closed at $66.59 per barrel, while West Texas Intermediate (WTI) was at $63.88 per barrel. Both benchmarks recorded significant weekly declines, with Brent down 4.4% and WTI over 5%.
In corporate news, Singapore's Keppel (BN4.SI) is poised to secure US$778 million by selling an 83.9% stake in M1 Telecom to Simba Telecom. This transaction values the telecom unit at an enterprise value of S$1.43 billion.
Sectoral Performance and Market Trends
Chinese lithium producers Ganfeng Lithium (002460.SZ) and Tianqi Lithium (002466.SZ) saw substantial gains at the open, rising 11.2% and 15% respectively, following unspecified "suspension news."
Meanwhile, Japanese car manufacturers are struggling in the UK electric vehicle (EV) market. New analysis shows Japanese brands recorded the sharpest declines in UK EV sales during the first half of 2025. Honda experienced a 92% decrease, Mazda a 76% drop, and Nissan a 69% fall in sales. In contrast, Ford saw a significant increase, with its UK EV sales more than quadrupling.
The broader U.S. stock rally continues to be fueled by record stock buybacks, primarily led by tech firms and big banks. In other market-specific news, trading of Asia Television Holdings shares has been suspended from August 11. The GBP/USD currency pair is consolidating near the mid-1.3400s, with bullish momentum appearing intact.
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.