Reuters Evening News - July 29 News Summary (International Edition)

The following is a summary of news from the Asian market session (7:00 AM - 5:00 PM) organized by Reuters Chinese News:

(Significant data or news)

– Chinese and U.S. officials arrive at the Stockholm venue for the second day of trade negotiations.

– Trump says he is not seeking a summit with Xi Jinping but may visit China at Xi's invitation

U.S. President Trump stated on Tuesday that he is not seeking a summit with Chinese President Xi Jinping but added that he may visit China at Xi's invitation; Trump mentioned that Xi has extended an invitation. Sources previously told Reuters that aides to Trump and Xi have discussed the possibility of the two leaders meeting during Trump's visit to Asia later this year.

– South Korean Finance Minister departs for the U.S. to strive for a reciprocal trade agreement, will propose plans including cooperation in the shipbuilding industry

South Korean Minister of Economy and Finance Kim Yun-chul stated that he will seek to reach a mutually beneficial trade agreement during talks with U.S. Treasury Secretary Mnuchin this week. Speaking at the airport before his departure, Kim said he would present a "plan" prepared by South Korea during their meeting on Thursday and discuss areas for medium- to long-term cooperation, such as the shipbuilding industry.

– Japan: The Japan-U.S. trade agreement alleviates tariff uncertainty, but economic downside risks remain

Japan stated that the Japan-U.S. trade agreement has eliminated uncertainties in U.S. trade policy, but it is necessary to continue monitoring the risks of these policies exerting downward pressure on the Japanese economy. In the Cabinet Office's monthly economic report for July, the government maintained its overall assessment that the Japanese economy is recovering "at a moderate pace," although the impact of U.S. tariffs has been evident in some sectors, including the automotive industry. The report also indicated that the Cabinet Office has downgraded its assessment of exports for the first time in a year, reflecting a slowdown in exports of semiconductor manufacturing equipment to Taiwan and South Korea.

– Former Deputy Governor of the Bank of Japan Nakaso Hiroshi: The dominance of the U.S. dollar is showing signs of loosening

Former Deputy Governor of the Bank of Japan Nakaso Hiroshi stated that the U.S. dollar will continue to maintain its dominant position as a major global currency, but signs of loosening in this position will encourage investors to continue investing in other currencies. Regarding Japan's monetary policy, Nakaso indicated that once the uncertainty regarding the impact of U.S. tariffs on the economy dissipates, the Bank of Japan is expected to resume interest rate hikes. Nakaso noted that due to President Trump's anti-globalization policies, the global economy faces an increasingly severe risk of fragmentation.

– Exclusive: Strong demand from China, Nvidia places an additional order of 300,000 H20 chips with TSMC

Two sources indicated that Nvidia last week placed an additional order for 300,000 H20 chips with TSMC, with one source stating that strong demand from China has prompted Nvidia to change its strategy and no longer rely solely on existing inventory. Sources said that Nvidia's current inventory of H20 chips is between 600,000 and 700,000 units.

– Thailand accuses Cambodia of continuing attacks, but both militaries hold talks according to the ceasefire agreement

A spokesperson for the Thai military stated that the Thai and Cambodian militaries are in negotiations, despite Thailand accusing the Cambodian army of launching multiple attacks that violate the ceasefire agreement effective at midnight. Thailand's acting Prime Minister Puttipong said that after some small-scale conflicts occurred along the Thai-Cambodian border, the situation has calmed down, and negotiations are taking place at 10 AMA Cambodian official stated that after reaching a ceasefire agreement to end the ongoing five-day border conflict, the military of Thailand and Cambodia has agreed not to deploy more troops along the border of the two countries.

– South Korean central bank policy committee members believe it is necessary to further cut interest rates – Meeting Minutes

The meeting minutes released by the Bank of Korea show that committee members at the July 10 meeting expressed the need to lower interest rates, with U.S. trade negotiations being a key consideration for the timing and pace of further rate cuts. One member stated, "Uncertainty surrounding future growth trajectories remains high, particularly due to trade negotiations with the U.S.," and he believes the committee should maintain an accommodative policy stance to support weak growth.

– Thai Finance Minister Arkhom Termpittayapaisith stated that trade negotiations between Thailand and the U.S. are expected to conclude before August 1, and U.S. tariffs on Thailand are not expected to reach 36%. Arkhom told reporters that Thailand is prepared for negotiations, and Thailand's proposals remain unchanged.

– Sources from the German Ministry of Finance indicated that the German government will present a draft budget for 2026 on Wednesday, which includes a record €126.7 billion in investments and €174.3 billion in borrowing as part of its infrastructure and defense financial plans.

– Data released by the Bank of England showed that the number of mortgage approvals in the UK in June was 64,167, higher than the Reuters survey estimate of 63,000. This further indicates that the UK housing market has stabilized following the end of the homebuyer tax relief in April.

– According to the Kuwait News Agency, the country's oil minister stated that Kuwait holds an optimistic view on the fundamentals of the oil market, and OPEC+'s decisions are made based on market developments. He also stated that OPEC+'s efforts aim to ensure energy security and achieve market balance, reaffirming Kuwait's support for efforts to maintain stability in the international oil market.

– Israeli Foreign Minister Eli Cohen stated that the situation in Gaza is "severe," but the claims regarding hunger are filled with lies; international pressure on Israel to cease fire has hardened Hamas's position, undermining the chances of achieving a ceasefire and hostage agreement.

– A survey by the European Central Bank indicated that the median expectation of consumers for inflation over the next 12 months fell from 2.8% last month to 2.6% in June, while the median expectations for inflation over the next three and five years remained stable at 2.4% and 2.1%, respectively. This data supports signs that the recent surge in prices has ended.

– Citigroup announced that it will include privately held companies in its research scope, focusing on rapidly growing technology companies. This expansion will focus on about 100 of the most influential privately held companies, particularly in key areas such as artificial intelligence, providing event-driven analysis on product launches, customer acquisitions, and new business lines. However, the related reports will not include target prices, buy/sell recommendations, or earnings forecasts.

– Fitch Ratings stated that a significant increase in trade tariffs imposed by the U.S. on EU member states will not immediately trigger a downgrade in sovereign ratings but may exacerbate existing pressures.

– The British Retail Consortium (BRC) reported that overall store prices in July rose by 0.7% year-on-year, marking the largest increase since April 2024; food prices surged by 4.0%, the largest increase since February 2024. This survey serves as another inflation signal, highlighting the interest rate dilemma faced by the Bank of England– The South Korean Ministry of Foreign Affairs stated that Foreign Minister Park Jin visited Japan on Tuesday for talks with Japanese Foreign Minister and then headed to the United States to meet with U.S. Secretary of State Marco Rubio.

– New York City officials reported that a gunman opened fire in a skyscraper in Midtown Manhattan on Monday, resulting in four deaths before committing suicide.

(Market Summary)

– Japanese Stock Market: Nikkei Index falls for the third consecutive day as investors worry about corporate outlook

The Nikkei Index in Japan closed lower for the third trading day in a row, as concerns about the domestic corporate outlook led investors to take profits from the recent rebound. Chip-related stocks led the decline. The Nikkei Index fell 0.79% to 40,674.55 points. The Tokyo Stock Price Index fell 0.75% to 2,908.64 points. (.TCN)

– Chinese and Hong Kong Stock Markets: Shanghai Composite Index slightly rises to a new high in over three and a half years, banking sector declines dragging down Hang Seng Index

The Shanghai Composite Index in China slightly rose, reaching a new high in over three and a half years, with the 5G communication sector leading the gains; however, the decline in the banking sector dragged down the Hang Seng Index. Analysts stated that the sentiment in the A-share market, with increasing volume and rising prices, is likely to further heat up, and the short-term upward trend may continue. The Shanghai Composite Index rose 0.3% to 3,609.71 points, with the previous closing high being 3,632.33 points on January 4, 2022; the CSI 300 Index rose 0.4%. The Shenzhen ChiNext Index rose 1.9%, and the Shanghai STAR Market 50 Index rose 1.5%. The Hong Kong Hang Seng Index fell 0.2% to 25,524.45 points. (.SSCN) (.HKCN)

– Foreign Exchange Market: Euro struggles as investors realize the U.S.-EU trade agreement is unfavorable for Europe

The euro attempts to recover from the significant drop the previous day but faces difficulties as investors recognize that the terms of the trade agreement between the U.S. and the EU favor the U.S. but are unlikely to boost the economic outlook for the EU. At 0830 GMT, the euro/USD fell 0.22% to 1.1562 USD. The dollar maintained its upward trend, with the pound/USD down 0.14% to 1.3336 USD. The yen/USD remained steady at 148.44 yen. (FRX/)

– Eurozone Bond Market: Government bond yields rise as focus shifts to the Federal Reserve, Bank of Japan, and data

Eurozone government bond yields rose as investors turned their attention to the upcoming policy meetings of the Federal Reserve and the Bank of Japan, as well as a series of important economic data from the U.S. and the Eurozone. The yield on Germany's 10-year government bonds rose by 0.5 basis points to 2.69%. The yield on Germany's 2-year government bonds remained unchanged at 1.90%. (GVD/EURCN)

– International Oil Market: Oil prices slightly rise as investors await U.S. interest rate decision

Oil prices edged up as uncertainty remains regarding the global economic outlook following the trade agreement between the U.S. and the EU, and investors await the Federal Reserve's interest rate decision. At 0836 GMT, Brent crude futures rose by $0.14 or 0.2% to $70.18 per barrel, while U.S. West Texas Intermediate crude rose by $0.16 or 0.24% to $66.87. (O/R)

– Global Gold Market: Gold hovers near three-week low as tariff war concerns ease and dollar strengthensGold prices changed little, hovering near a three-week low, as easing concerns over the global tariff war and a strengthening dollar dampened gold's safe-haven appeal. As of 0840 GMT, spot gold rose 0.33% to $3,324.86 per ounce, having touched a new low since July 9 in the previous session. U.S. gold futures increased by 0.2% to $3,317.50. (GOL/)

– Metal Futures Market: Copper futures decline, cautious sentiment due to tariff negotiations

Both London and Shanghai copper futures fell as traders weighed the U.S.-China negotiations and discussions between the world's largest copper producer, Chile, and the U.S. regarding a 50% tariff on copper starting August 1. As of 08:58 GMT, three-month copper on the London Metal Exchange (LME) dropped 0.13% to $9,780.50 per ton. The main copper futures contract on the Shanghai Futures Exchange closed down 0.18% at 78,840.00 yuan ($10,985.09). (MET/LCN)