Asian Markets Caught Between Japanese Optimism and Chinese Pressures: Japanese Stocks Rise, While Iron Ore and EV Shares Decline

Asian markets saw mixed movements, with Japanese stocks rising on easing trade tensions,
while weak Chinese demand and price cuts weighed on iron ore and electric vehicle shares.

Content:

Japan
Iron
BYD

Japan

Japanese Stocks Rise on Eased Trade Tensions and Trump’s Remarks on “U.S. Steel” Deal
Japanese indices opened the week with strong gains,
driven by improved investor risk appetite amid reduced trade tensions between the U.S. and the EU,
and positive remarks by former U.S. President Donald Trump regarding a pending merger deal.
The Nikkei 225 index rose by 1% to close at 37,531 points,
while the broader Topix index gained 0.6% to 2,751 points at the close of Monday’s session.
Meanwhile, the yield on 10-year Japanese government bonds remained stable at 1.539%,
while the U.S. dollar rose 0.15% against the yen to 142.75.
Shares of Japan’s Nippon Steel climbed 2.15% at the close, after surging more than 7% during the session,
supported by Trump’s comments that the company’s partnership
with U.S. Steel would create 70,000 new jobs and inject $14 billion into the American economy.

Iron

Iron Ore Falls to Two-Week Low on Weak Chinese Demand and Real Estate Slump
It ore futures dropped to their lowest levels in two weeks on Monday amid declining Chinese demand for steel
and persistent uncertainty in the country’s real estate sector—the world’s second-largest economy.
On China’s Dalian Commodity Exchange, the most-traded iron ore contract for September delivery fell to 704 yuan, its lowest since May 12.
In Singapore, June-delivery futures were down 1.2% to $96.95 per ton as of 10:53 a.m. Mecca time.
Everbright Futures noted that hot metal output—a key indicator of iron ore demand—fell by 0.5% in May to 2.4 million tons.

BYD

BYD Price Cuts Pressure Chinese EV Stocks
Chinese electric vehicle (EV) stocks plunged on Monday in Hong Kong trading,
following BYD’s announcement late last week of price cuts on several of its models by up to 35%.
BYD shares fell nearly 9%, while Li Auto dropped 4.6%, and Geely Automobile slid about 7.8%.
The cuts included the Seagull hatchback, which saw its price fall to 55,800 yuan (around $7,780), down 20%.
The Seal hybrid sedan had the steepest reduction—down 34%, or 53,000 yuan—bringing its price to 102,800 yuan.
Although EV sales remain at record-high levels year over year, growth has significantly slowed,
adding further pressure on companies in this rapidly evolving sector.

Asian Markets Caught Between Japanese Optimism and Chinese Pressures: Japanese Stocks Rise, While Iron Ore and EV Shares Decline

Asian Markets Caught Between Japanese Optimism and Chinese Pressures

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