Weekly Market Round-Up (April 7-12, 2025): Asia Markets Steady Amid Global Turmoil

As global markets grappled with escalating trade tensions and economic volatility, Asia's financial landscape showcased a mix of resilience and caution. Key developments across the region highlighted the interplay between domestic policy decisions and external pressures.

Asia Markets Steady Amid market uncertainties

1. China's Inflation Eases, Providing Policy Flexibility

China's consumer price index (CPI) rose by 0.7% year-on-year in March, slightly below expectations. This moderation in inflation offers the People's Bank of China (PBoC) room to maintain accommodative monetary policies to support economic growth amid external challenges.

2. Bank of Japan Maintains Ultra-Loose Monetary Policy

The Bank of Japan (BOJ) kept its short-term interest rate target at -0.1% and its 10-year government bond yield target around 0%, reaffirming its commitment to ultra-loose monetary policy. Governor Kazuo Ueda emphasized the need for continued support to achieve the 2% inflation target sustainably.

3. Indian Markets Volatile Amid Global Uncertainty

India's benchmark indices, the Sensex and Nifty 50, experienced volatility throughout the week, influenced by global market fluctuations and domestic factors. Investors remained cautious ahead of the upcoming corporate earnings season and the Reserve Bank of India's policy decisions.

4. Singapore's GDP Growth Slows in Q1

Singapore's economy grew by 1.2% year-on-year in the first quarter of 2025, down from 2.1% in the previous quarter. The slowdown was attributed to weaker manufacturing output and external demand, prompting discussions on potential fiscal measures to bolster growth. Market is pricing in for further monetary policy easing this month from MAS upcoming monetary policy announcement.

5. South Korea's Export Growth Continues

South Korea reported a 6.5% year-on-year increase in exports for March, marking the fourth consecutive month of growth. The semiconductor sector led the gains, reflecting robust global demand for technology products.

6. Gold Prices Surge Amid Safe-Haven Demand

Gold prices continued their upward trajectory, reaching $3,150 per ounce, as investors sought safe-haven assets amid global economic uncertainties and market volatility.

7. Oil Prices Decline on Demand Concerns

Crude oil prices fell below $65 per barrel, driven by concerns over reduced global demand due to escalating trade disputes and potential economic slowdowns.

Market Outlook

Asia's markets are navigating a complex landscape shaped by global trade tensions, domestic economic indicators, and policy decisions. Investors are advised to monitor developments closely, with a focus on sectors demonstrating resilience and adaptability in the face of ongoing uncertainties.