Key Takeaways
- Australia's Q2 2025 Consumer Price Index (CPI) data showed a moderation in inflation, with the annual rate easing to 2.1% and the trimmed mean CPI at 2.7%, potentially influencing the Reserve Bank of Australia's policy outlook.
- A powerful 8.7 magnitude earthquake off Russia's Kamchatka Peninsula has triggered widespread tsunami warnings and watches across the Pacific, including Hawaii, the U.S. West Coast, Japan, Chile, and Ecuador, prompting coastal evacuations.
- The People's Bank of China (PBoC) injected 309 billion Yuan through 7-day reverse repos, aiming to bolster liquidity in the financial system.
- New Zealand's ANZ Business Confidence improved in July to 47.8, indicating a more optimistic sentiment, although the ANZ Activity Outlook saw a slight dip to 40.6.
- The Philippines reported a significant trade deficit of $3.954 billion in June, driven by a 26.1% surge in exports and a 10.8% increase in imports.
Australia's Inflation Moderates in Q2
Australia's inflation data for the second quarter of 2025 indicates a cooling trend, with the Consumer Price Index (CPI) rising by 0.7% quarter-on-quarter, falling short of the 0.8% estimate and slowing from the previous 0.9%. Annually, the CPI increased by 2.1%, below the 2.2% forecast and down from 2.4% in the prior period.
The CPI Trimmed Mean, a key measure watched by the Reserve Bank of Australia (RBA), also moderated, increasing by 0.6% quarter-on-quarter (against an estimated 0.7%) and 2.7% year-on-year, aligning with expectations but down from 2.9% previously. These figures suggest that inflationary pressures may be easing, providing the RBA with potential flexibility in its monetary policy decisions.
Pacific Rim on Alert Following Massive Earthquake
A powerful 8.7 magnitude earthquake off the Kamchatka Peninsula in Russia has prompted widespread tsunami warnings and advisories across the Pacific. The U.S. Tsunami Warning System issued a warning for Hawaii, where Honolulu Emergency Management ordered the evacuation of coastal areas, with the first tsunami wave estimated to arrive at 7:17 PM HST.
Tsunami wave heights of 3+ meters are possible for Russia and Ecuador, while 1-3 meter waves are forecast for Chile, Hawaii, Japan, and the Solomon Islands. Alerts have also been issued for the entire U.S. West Coast, Alaska, and its Aleutian Islands. East Japan Railway Company (9020.T) announced the suspension of some services following the seismic event.
Asian Markets and Economic Indicators
The People's Bank of China (PBoC) injected 309 billion Yuan through 7-day reverse repos at an unchanged rate of 1.40%, injecting a net 158.5 billion Yuan in open market operations. This move aims to maintain ample liquidity within the financial system. Separately, Hong Kong's Hang Seng Automobile Index is anticipated to open 2.6% lower.
In New Zealand, the ANZ Business Confidence index rose to 47.8 in July from 46.3, indicating improved sentiment among businesses. However, the ANZ Activity Outlook slightly slipped to 40.6 from 40.9. The Philippines reported a trade deficit of $3.954 billion in June, as exports surged by 26.1% year-on-year and imports increased by 10.8%.
U.S. Political and Corporate Developments
In the United States, reports indicate that Federal Reserve Governors could break ranks as former President Trump intensifies pressure on Fed Chair Powell. Meanwhile, the U.S. Senate has approved Emil Bove, a former personal attorney to Donald Trump, for a seat on the Federal Appeals Court.
In corporate news, LG Energy Solution (373220.KS) has secured a significant $4.3 billion agreement to supply batteries.
Citations:
Australia CPI (Q/Q) Q2: 0.7% (est 0.8%; prev 0.9%) – CPI (Y/Y): 2.1% (est 2.2%; prev 2.4%) – CPI Trimmed Mean (Q/Q): 0.6% (est 0.7%; prev 0.7%) – CPI Trimmed Mean (Y/Y): 2.7% (est 2.7%; prev 2.9%) – CPI Weighted Median (Q/Q): 0.6% (est 0.6%; prev 0.7%) – CPI Weighted Median (2025-07-30T01:32:47.000Z)
TSUNAMI ALERTS ISSUED FOR ENTIRE U.S. WEST COAST, ALASKA & HAWAII AFTER MASSIVE 8.7 MAGNITUDE EARTHQUAKE OFF RUSSIA (2025-07-30T01:03:51.000Z)
TSUNAMI WAVE HEIGHT FORECAST (POST 8.7 RUSSIA QUAKE): 🔴 3+ METERS POSSIBLE: •Russia •Ecuador 🟠 1–3 METERS POSSIBLE: •Chile •Hawaii •Japan •Solomon Islands (2025-07-30T01:23:40.000Z)
TSUNAMI WARNING HAWAII EFFECT AT 243 PM HST. ESTIMATED ARRIVAL TIME IN HAWAII OF THE FIRST TSUNAMI WAVE IS 0717 PM HST (2025-07-30T01:25:54.000Z)
PBoC Injects 309B Yuan Through 7-Day Reverse Repos At 1.40% Unchanged – Injects Net 158.5B Yuan At Open Market Operations – Fixes USDCNY Ref. Rate At 7.1441 (prev fix 7.1511; prev close 7.1774) (2025-07-30T01:22:40.000Z)
HONOLULU EMERGENCY MANAGEMENT ORDERS EVACUATION OF COASTAL AREAS (2025-07-30T01:17:02.000Z)
Kyodo: East Japan Railway Company announces suspension of some services following the earthquake off the Kamchatka Peninsula (2025-07-30T01:24:23.000Z)
HONG KONG'S HANG SENG AUTOMOBILE INDEX IS EXPECTED TO OPEN 2.6% LOWER. (2025-07-30T01:25:29.000Z)
NEW ZEALAND ANZ BUSINESS CONFIDENCE (JULY) RISES TO 47.8 (PREV 46.3) 📉 ANZ ACTIVITY OUTLOOK SLIPS TO 40.6 (PREV 40.9) (2025-07-30T01:01:43.000Z)
The Philippines recorded a trade deficit of 3.954 billion dollars in June. (2025-07-30T01:03:03.000Z)
FED GOVERNORS COULD BREAK RANKS AS TRUMP INTENSIFIES POWELL PRESSURE – WSJ (2025-07-30T01:11:00.000Z)
The U.S. Senate has approved Emil Bove, a former personal attorney to Donald Trump, for a seat on the Federal Appeals Court. (2025-07-30T01:04:45.000Z)
LG Energy Solution has entered into a $4.3 billion agreement to supply batteries. (2025-07-30T01:06:26.000Z)
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.