đ Asian markets decline as investor sentiment worsens. Chinese markets are leading losses after returning from New Year celebrations. Contracts for CHN.cash and HK.cash are down đ -1.6% and -1.5%, respectively.
đ¨ Whatâs causing the sell-off?
đşđ¸ U.S. Customs announced new trade measures:Tariffs will now apply to both Hong Kong and mainland China.The White House has revoked the duty-free exemption for packages under $800, which boosted growth for Chinese retailers like Temu.đŚ The U.S. Postal Service is temporarily halting acceptance of international packages from China and Hong Kong.
đ Economic data highlights:
đ¨đł Chinaâs January Caixin Services PMI underwhelmed with a reading of 51.0 (vs. 52.2 in December).đŻđľ Japanâs wage data showed +4.8% y/y growth, reinforcing expectations of a potential Bank of Japan rate hike.Former BoJ banker Hideo Hayakawa warned that rates could rise higher than markets anticipate.The yen is strengthening on this news, supported by an improved services PMI reading of 53.0 (vs. 50.9 prior).đłđż New Zealandâs Q4 employment report shows rising unemployment at 5.1%, in line with forecasts, but with limited market reaction.
đ USÂ markets:
US equity futures remain subdued.Alphabet (GOOGL) missed expectations on Google Cloud revenue, tumbling -7.6% after-hours.
đ Key reports to watch today:
đŞđş Eurozone: Final services PMIs & PPIđşđ¸ US: ADP employment report, ISM services datađŁď¸ Possible updates on the Trump-Xi conversation
đ Precious metals surge:
Gold shines, up +0.7%, reaching an all-time high of $2,860/oz.
đ Volatility remains low across other instruments.
Morning Update (05.02.2025) was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.