The Australian Dollar fell sharply, and government bonds dropped, as expectations grew for an interest rate cut by the central bank in August.
On tariffs, Trump softened his stance with China, aiming to arrange a summit with President Xi Jinping and secure a trade deal. He also announced plans to send letters to over 150 countries about new tariffs, expected to range from 10% to 15%.
Chinese stocks rose on Thursday, supported by government backing for the auto industry and renewed interest in AI-related shares. Citi also upgraded China equities, pointing to better earnings trends and long-term growth opportunities.
The Shanghai Composite Index gained 0.4% to close at 3,516.83, while the blue-chip CSI300 Index rose 0.7%.
AI-related stocks climbed 1.8%, and the info tech sector jumped 2.1%, boosted by news that Nvidia will increase its supply of H20 chips to China. Auto stocks were up 1.7% after authorities promised to address excessive competition and price wars in the EV market.
In Hong Kong, the Hang Seng Index stayed flat but remained near a four-month high.
Biotech and healthcare stocks surged over 5% each, as optimism grew about a potential trade deal after U.S. President Trump softened his tone on China.
Citi upgraded China equities to “overweight,” citing better earnings prospects, fair valuations, and growth themes like AI and corporate reforms.
