Key Takeaways:
- Australian unemployment unexpectedly climbed to a four-year high of 4.3% in June, significantly bolstering the case for the Reserve Bank of Australia (RBA) to cut interest rates next month.
- Former U.S. President Donald Trump is reportedly considering imposing a 10% or 15% tariff rate on goods from over 150 countries, raising concerns across global markets and contributing to lower sentiment in Seoul shares.
- Currency strategists are anticipating further weakness in the Japanese Yen if Prime Minister Shigeru Ishiba’s ruling coalition fails to maintain its majority in the upcoming upper house elections.
- Singapore’s non-oil domestic exports (NODX) saw a robust jump of 13.0% year-on-year in June 2025, significantly exceeding forecasts and rebounding strongly from the previous month's decline.
- Couche-Tard (ATD.TO) has abandoned its $46 billion pursuit of 7-Eleven owner Seven & i Holdings Co. Ltd. (3382.T).
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Australian Job Market Weakens, RBA Rate Cut Looms
Australia’s unemployment rate unexpectedly rose to 4.3% in June, up from 4.1% previously and above the estimated 4.1%, marking a four-year high. This was driven by a significant decline in full-time employment, which fell by 38.2K, despite a rise in part-time jobs by 40.2K. The overall employment change was a modest +2.0K, well below the estimated +20.0K, strengthening the argument for the Reserve Bank of Australia (RBA) to implement an interest rate cut next month. The Australian Dollar (AUD) declined by 0.51%, trading at $0.6495 following the data release. -
Global Trade Tensions Rise Amid Potential U.S. Tariff Plans
Former U.S. President Donald Trump is reportedly considering a broad tariff policy, eyeing a 10% or 15% tariff rate on imports from more than 150 countries. This prospect has weighed on market sentiment, with Seoul shares opening lower amid U.S. tariff concerns. Asian currencies generally weakened as rising U.S. Treasury yields also impacted sentiment. -
Yen Faces Further Downside Risk on Japanese Political Uncertainty
Currency strategists are preparing for additional weakness in the Japanese Yen if Prime Minister Shigeru Ishiba’s ruling bloc loses its majority in the upcoming upper house elections. This political uncertainty adds to pressure on the currency, which has already seen its 2-Year JGB yield drop 0.5 basis points to 0.78%. -
Singapore Exports Surge, China's Belt and Road Hits Record
Singapore’s non-oil domestic exports (NODX) demonstrated strong growth in June 2025, jumping 13.0% year-on-year. This significantly surpassed forecasts of a 5.0% rise and marked a robust rebound from May’s revised 3.9% decline. Meanwhile, China’s Belt and Road investment and construction activity has reached a new record high. China is also reportedly probing several leading investment banks for underwriting bond fees that fell below US $100. -
Tech and M&A Updates
Nvidia (NVDA) and AMD (AMD) are poised to gain market share in China as the U.S. eases export curbs on certain technologies. In corporate news, Couche-Tard (ATD.TO) has decided to drop its $46 billion bid to acquire the owner of 7-Eleven (3382.T). Hyundai Motor (005380.KS) is developing a special reforestation project vehicle based on its Ioniq 9 SUV. -
Commodities and Regional Markets
Oil prices rose, aided by an unexpected fall in U.S. crude inventories. Gold remained steady, finding support from ongoing geopolitical tensions in the Middle East. Taiwan stocks climbed 0.5% to 23,155.050 points.
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.