Asia stocks rise as China’s Q2 growth beats expectations

July 15, 2025 (MLN): Asia-Pacific markets advanced on Tuesday, buoyed by China’s better-than-expected economic data. The country’s gross domestic product grew by 5.2% in the second quarter, exceeding the 5.1% growth forecast, according to China’s National Bureau of Statistics.

However, the figure fell short of the 5.4% expansion recorded in the first quarter.

Investor focus is now shifting to second-quarter corporate earnings in the U.S. and key inflation data, especially after Wall Street's three major indexes closed slightly higher on Monday.

Meanwhile, former President Donald Trump indicated a willingness to negotiate tariffs following his weekend announcement of potential 30% duties on goods from the European Union and Mexico starting August 1.

In response, Japan is reportedly working to arrange high-level talks with the U.S. this Friday, as CNBC reported.

Despite the looming trade uncertainty, markets remained relatively calm. Rodrigo Catril, a strategist at National Australia Bank, noted the importance of upcoming U.S. earnings reports for market direction.

In a NAB podcast, he highlighted that attention will be on companies’ future outlooks, particularly on how they expect to handle cost pressures whether through margin compression or passing costs to consumers.

He also remarked on investor complacency due to the unpredictable outcome of the trade discussions.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.4%, while Japan’s Nikkei rose 0.2%.

Investors are also watching for the U.S. consumer price index report for June, expected later on Tuesday, amid concerns about possible inflationary effects from tariffs.

Currency markets remained steady, with the U.S. dollar at 147.71 yen after recently hitting a three-week high. The euro held flat at $1.1672.

Oil prices saw a modest decline, with U.S. crude down 0.3% to $66.80 per barrel.

On the geopolitical front, Trump announced additional weapons aid for Ukraine and issued a warning of sanctions on purchasers of Russian exports unless Moscow agrees to a peace agreement within 50 days.

In metals, gold gained 0.1% to trade at $3,348.35 per ounce. Spot silver also rose 0.1% to $38.15 per ounce, following its highest level since September 2011 in the prior session.

In early European trading, futures pointed to a cautious start. Euro Stoxx 50 futures were up 0.1%, German DAX futures rose 0.1%, and FTSE futures added 0.2%.

In contrast, U.S. stock futures, specifically S&P 500 e-minis, edged down 0.1%.

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