China plans subsidy vouchers for elderly people to ease the burden on the aging population and promote consumption
China is set to introduce subsidy vouchers aimed at older citizens, who typically don’t rely on direct financial aid, in an effort to alleviate the financial challenges associated with an aging population and to encourage spending on elderly care services.
The allowances, issued monthly as electronic coupons, are intended to help cover part of the expenses related to care services for seniors. This announcement was made in a joint statement from the Ministry of Citizens Affairs and the Ministry of Finance on Wednesday.
While Chinese officials are increasing support for employment, they’re steering clear of direct cash payments similar to those implemented in the US and Hong Kong to boost spending during the pandemic.
Trump visits the Federal Reserve and escalates campaign against Powell
On Thursday, US President Donald Trump will make a visit to the Federal Reserve, escalating his pressure on Chairman Jerome Powell. This is quite noteworthy as it marks the first time in nearly two decades that a sitting American president has officially visited the central bank.
The White House shared the schedule on Wednesday, confirming Trump’s visit to the Federal Reserve at 4 PM.
The Chinese market opens flat
Stocks in mainland China and Hong Kong have started the day relatively flat, remaining within a slightly positive range.
Both the CSI 300 index in mainland China and the Hang Seng index in Hong Kong opened without significant movement. However, the Hang Seng Tech index, which tracks the largest tech companies in Hong Kong, saw a minor decline of 0.18%.
China Yuan has thanked the most powerful level for the greenback since November 2024
China’s offshore Yuan has appreciated to 7.1444 against the dollar, marking its strongest position since November 2024. Similarly, the Thai Baht has strengthened, reaching 32.07 per dollar, the highest since February 2022.
Japan’s Topix hits record highs as Asia-Pacific trade begins
Japan’s Topix index climbed 1.2%, achieving record highs during early trading hours in Asia, according to LSEG data. The benchmark Nikkei 225 rose 1.09%, extending gains from Wednesday, which followed news of a trade agreement between Japan and the US.
In South Korea, the Kospi index saw an increase of 1.17%, while the Kosdaq index rose by 0.64%. Australia’s S&P/ASX 200 also recorded a slight rise of 0.15%.
NVIDIA Supplier SK Hynix 2Q Profit and Revenue Earnings reached record highs and topping estimates
Shares of South Korea’s SK Hynix surged by 2.6% after the company posted record operating profit and revenue for the second quarter, driven by sustained demand for high-bandwidth memory technology used in AI chipsets.
When compared to LSEG Smart Estimates, their second-quarter results exceeded projections made by analysts:
- Revenue: 22.23 trillion won ($161.7 billion) vs 20.56 trillion won
- Operating profit: 9.21 trillion won vs 9 trillion won
Revenue for the June quarter rose approximately 35% from the previous year, with operating profit up nearly 69% year-on-year. Sequentially, revenues increased by 26%, and operating profit rose by 24%.
South Korea avoids a technological recession as GDP grows 0.6% in the second quarter
Preliminary estimates show that South Korea dodged a technical recession, with its economy growing by 0.6% from the prior quarter, surpassing forecasts. This is a turnaround from the 0.2% contraction observed in the first quarter, with economists having predicted a growth of 0.5%.
Year-on-year, the nation’s GDP rose 0.5%, a recovery from a standstill in the first quarter, and above a 0.4% expectation set by Reuters polls. Total consumption, including both private and government spending, saw a 0.7% increase from the previous quarter, contrasting with a 0.1% contraction previously.
The Asia Pacific market is set to start the day pretty much higher
Good morning from Singapore! The Asian market appears to be opening on a positive note.
In Japan, the benchmark Nikkei 225 is anticipated to rise, with futures contracts in Chicago pointing to 41,745 and 41,730 in Osaka, aiming to surpass its last close of 41,171.32.
Conversely, the Hang Seng Index futures reflect a slight increase, pointing to an opening above the last close of 25,538.07.
However, Australia’s S&P/ASX 200 seems likely to open lower as futures indicate a decrease from the previous close of 8,737.2 to around 8,721.
Stocks end the session on Green on Wednesday
Stocks showed positive movement on Wednesday, with the S&P 500 achieving its third consecutive record this week.
The broad market index finished at 6,358.91, reflecting an increase of 0.78%. The Dow Jones Industrial Average, known for its Blue Chip stocks, climbed 1.14%, up 507.85 points to end at 45,010.29. The tech-heavy NASDAQ composite also experienced a boost, rising by 0.61% to close at 21,020.02, surpassing the notable 21,000 mark.
US trade contracts could hurt Japan’s economy, UBS says
According to UBS, trade agreements between the US and Japan have turned out better than expected, but they could still negatively impact the Japanese economy.
“A 15% tariff is likely to result in decreased exports and lower corporate revenues, which could stagnate capital investment and consumption. We believe this might continue to exert downward pressure on the Japanese economy by about 0.4 percentage points year-on-year,” an analyst commented.
Additionally, they do not anticipate the Bank of Japan to raise interest rates in the current year, suggesting that the next possible increase might occur after mid-2026.
