Asia markets subdued amid global uncertainty

July17,2025(MLN): Asia-Pacific markets were mostly subdued on Thursday as investors digested a range of geopolitical and economic developments, including a continued decline in Japanese exports and renewed uncertainty surrounding U.S. Federal Reserve Chairman Jerome Powell's tenure.

In Japan, exports dropped for a second straight month, reflecting ongoing weakness in external demand.

This, combined with political noise from Washington, contributed to a cautious trading environment, as CNBC reported.

The Nikkei fell 0.24%, while MSCI’s broadest index of Asia-Pacific shares outside Japan edged up just 0.06%.

Tensions flared after reports emerged that U.S. President Donald Trump had expressed intent to fire Fed Chair Powell.

Although Trump later denied those reports in a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa—stating, “We’re not planning on doing it”—he added, “I don’t rule out anything,” hinting that Powell’s future remains uncertain unless there is cause such as fraud.

Market volatility followed, with the dollar weakening amid concerns over the Federal Reserve's independence.

Investor sentiment in Japan was also dampened by corporate news.

Shares of Seven & i Holdings plunged 9% after Canadian retailer Alimentation Couche-Tard scrapped its $47 billion acquisition bid, citing a lack of constructive dialogue with the Japanese company. Trading in Seven & i had been briefly halted before resuming.

Meanwhile, Singapore’s market stood out with continued momentum, as stocks notched their ninth consecutive day of gains, reaching a new high.

The city-state also reported a surprise surge in non-oil domestic exports for June, marking an 11-month peak and surpassing expectations.

Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier of advanced AI chips, drew investor attention ahead of its second-quarter earnings release.

The company is projected to report record profits, though a strong Taiwan dollar and lingering tariff concerns could temper its outlook.

On Wall Street, attention turned to streaming giant Netflix, with earnings due later in the day.

Analysts noted the stock has already outperformed the S&P 500 by 33 percentage points this year, making expectations for a “blowout” performance particularly high.

“Netflix will need to blow the lights out with a solid beat and raise,” said Chris Weston, head of research at Pepperstone.

In currency markets, the dollar remained vulnerable after its overnight slide.

The euro slipped 0.17% to $1.1620, while the British pound eased 0.13% to $1.3400.

The U.S. dollar index stood nearly flat at 98.49, after a 0.33% drop the previous day.

Japanese government bond yields climbed as investors extended a selloff ahead of the upcoming upper house election on Sunday.

According to UBP’s senior economist Carlos Casanova, “Regardless of the outcome of the election, we are going to see additional fiscal spending coming out of Japan.”

Oil prices posted modest gains, with Brent crude up 0.47% at $68.84 per barrel and U.S. crude rising 0.62% to $66.79.

In contrast to the muted performance in Asia, European futures showed strength. EUROSTOXX 50 futures climbed 0.56%, with FTSE and DAX futures both advancing around 0.4%. U.S. futures, however, were softer, with both Nasdaq and S&P 500 futures slipping 0.1% each.

Markets continue to tread cautiously, awaiting further clarity on monetary policy direction and geopolitical signals.

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