Asian Shares Mostly Higher As China Trade Data Smashes Forecasts

(RTTNews) - Asian stocks ended mostly higher on Tuesday, reversing early losses as upbeat Chinese trade data helped offset concerns over escalating military clashes between the United States and Iran.

Brent crude prices jumped nearly 3 percent toward $86 a barrel, bringing gains for the week to more than 10 percent after U.S. President Donald Trump reimposed a blockade on Iranian ships transiting the Strait of Hormuz and proposed to impose a 20 percent fee on all cargo passing through the vital waterway for guarding it.

The U.S. dollar eased ahead of the release of U.S. CPI and PPI inflation data as well as Fed Chair Kevin Warsh's testimony before Congress that could shape the outlook for interest rates.

Gold traded higher at $4,027 an ounce after falling around 3 percent to hit a two-week low on Tuesday amid hawkish Fed bets.

Money markets are pricing in nearly a 50 percent probability of a Federal Reserve rate hike in July after Governor Christopher Waller expressed caution about inflation and said a hot core inflation reading this week could prompt the FOMC to consider tightening policy at its late-July meeting.

China's Shanghai Composite index surged 1.36 percent to 3,967.13 after June trade data smashed forecasts. Hong Kong's Hang Seng index ended up 0.52 percent at 24,340.73.

Customs data released earlier today showed that China's exports rose 27 percent year-on-year in June, the fastest since 2021, while imports jumped 36 percent to a five-year high despite lingering global uncertainties.

China will release industrial output and retail sales for June along with GDP data for the second quarter on Wednesday. Analysts expect economic growth to have slowed to 4.5 percent from 5 percent in the first quarter.

Japanese markets reversed course to end higher, led by gains in semiconductor and tech shares, with SoftBank climbing 3.3 percent and Kioxia Holdings surging 3 percent.

The Nikkei dropped nearly 1,000 points intraday to hit a one-month low before rebounding to close 0.74 percent higher at 67,743.50. The broader Topix index settled 0.79 percent higher at 4,038.98.

Seoul stocks experienced a dramatic "V" shaped rebound to close higher, led by technology stocks. Market bellwether Samsung Electronics rallied 3.3 percent and SK Hynix added 3.7 percent.

The Kospi plummeted over 5 percent to reach its lowest level since April 27 before recovering to close 0.73 percent higher at 6,856.83 after data showed China's exports accelerated in June, driven by global demand for AI and technology.

Australian markets recovered from an early slide to end on a flat note, with energy and utility stocks outperforming.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.52 percent to 13,651.22, extending losses for a second consecutive session.

U.S. stocks fell sharply overnight as crude oil futures soared nearly 9 percent to reach their highest level in about a month following President Trump's announcement that he is imposing the U.S. blockade on Iranian shipping.

In an apparent policy reversal, Trump said the U.S. will impose a 20 percent fee on shipping through the Strait of Hormuz, raising concerns over shipping costs, inflation risks and interest rates.

The USA will be, from this point forward, known as 'the guardian of the Hormuz Strait," said the President.

The tech-heavy Nasdaq Composite slumped 1.6 percent amid a sharp sell-off in chip stocks. The S&P 500 shed 0.8 percent and the narrower Dow dipped 0.3 percent.

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