Core Viewpoint - Japanese Prime Minister Shigeru Ishiba has ordered his team to assess the impact of U.S. tariffs, indicating a proactive approach to understanding trade dynamics [1] Group 1: Trade Relations - The trade agreement does not imply a reduction in tariffs imposed by Japan on U.S. goods, suggesting that Japan may maintain its current tariff levels despite ongoing negotiations [1]

Group 1 - The Bank of Japan (BOJ) is expected to warn about the uncertainty of the impact of U.S. tariffs in its upcoming quarterly report, but may express a more optimistic view on the recent shocks to the Japanese economy compared to three months ago [1] - The market anticipates that the BOJ will maintain the interest rate at 0.5% during the meeting on July 30-31, with investors looking for clues regarding the timing of the next rate hike from the quarterly report [1][2] - Recent data has not shown any clear evidence of damage from U.S. tariffs or trade negotiations with Washington, with corporate confidence remaining stable according to the BOJ's quarterly survey [2] Group 2 - The BOJ's previous report projected Japan's economy to grow by 0.5% in FY2025, 0.7% in FY2026, and 1.0% in FY2027, and it is likely to maintain its view that inflation will reach the 2% target in the latter half of the three-year forecast period ending FY2027 [2] - Domestic prices in Japan have been consistently higher than expected, driven by rising food costs, which have pushed consumer inflation above the BOJ's 2% target [2][3] - Some BOJ policymakers, such as hawkish board member Naoki Tamura, have warned that cost-push inflation pressures could lead to second-round effects, potentially necessitating a return to rate hikes [3]

Report Summary 1. Report Industry Investment Ratings The report does not explicitly mention overall industry investment ratings. Instead, it provides specific investment suggestions for different commodity futures contracts. 2. Core Viewpoints - The market is influenced by various factors such as US trade policies, liquidity, and geopolitical risks, leading to differentiated trends in different sectors [2]. - Different commodities have different supply - demand situations, which affect their price trends and investment opportunities. 3. Summary by Categories Financial Sector - **Stock Index Futures**: Indexes have broken through the upper edge of the short - term shock range, but caution is needed when testing key positions. It is recommended to wait and see for now [2]. - **Treasury Bond Futures**: The central bank's reverse - repurchase operations may boost bond market sentiment. In the medium - term, the curve strategy recommends paying attention to certain operations [2]. - **Precious Metals**: Gold prices are in high - level shock, and silver may have further pulse - type increases, but chasing high should be cautious [2]. Industrial Sector - **Shipping**: The container shipping index (European line) is expected to be in a strong - biased shock, and it is advisable to be cautiously bullish on the 08 contract [2]. - **Steel**: Industrial material demand and inventory are deteriorating. Pay attention to the decline in apparent demand. Arbitrage operations such as long materials and short raw materials can be considered [2]. - **Black Metals**: Market sentiment has improved, and it is recommended to go long on iron ore, coking coal, and coke at low prices [2]. - **Non - ferrous Metals**: The US inventory replenishment has ended. For copper, pay attention to the support level; for aluminum and its alloys, the macro uncertainty is increasing, and the spot market is in a weak season [2]. Energy and Chemical Sector - **Energy**: Oil prices are likely to be in a strong - biased shock. For different chemical products, due to different supply - demand situations, various investment strategies such as waiting and seeing, long - short operations, and attention to price ranges are recommended [2]. Agricultural Sector - Different agricultural products have different price trends. For example, palm oil is strong, while sugar is recommended for short - selling on rebounds. Each product has specific price ranges and investment suggestions [2]. Special and New Energy Sectors - Special commodities such as glass and rubber are affected by macro - atmosphere. For new energy products like polysilicon and lithium carbonate, due to various factors, it is generally recommended to wait and see [2].

Group 1 - The core viewpoint of the articles highlights the significant impact of external factors, particularly U.S. tariffs and political uncertainty, on the South Korean economy, overshadowing domestic political changes [1][5] - The Bank of Korea has conducted four interest rate cuts in 2025, lowering the rate to 2.5%, the lowest since August 2022, in response to political uncertainty and market volatility [1] - South Korea's GDP growth unexpectedly contracted by 0.1% in Q1 2025, marking the first contraction since Q4 2020, leading the Bank of Korea to revise its GDP forecast for the year down from 1.5% to 0.8% [1] Group 2 - The Bank of Korea warns of risks associated with rising housing prices, particularly in the Seoul metropolitan area, which could exacerbate household debt and threaten financial stability [3] - From December 2013 to May 2025, the cumulative increase in housing prices in Seoul outpaced the national average by 69.4 percentage points, indicating a growing disparity between capital and non-capital regions [3] - As of June 2025, housing prices in Seoul have continued to rise, with core area prices reaching 120,000 to 150,000 RMB per square meter, and some luxury apartments exceeding 500,000 RMB per unit [3] Group 3 - South Korea's household debt remains high at 91.7% of GDP, second only to Canada, with a continuous increase over 17 years, raising concerns about economic growth and financial stability [4] - The Bank of Korea aims to gradually reduce the household debt-to-GDP ratio to 80% to mitigate economic constraints [4] - To address the polarization in housing prices, the report emphasizes the need for government initiatives to develop regional cities and reduce excessive regional imbalances [4] Group 4 - The U.S. tariffs imposed on South Korea, including a 25% tariff and specific tariffs on steel and automotive industries, have created significant uncertainty in the capital markets [5] - Ongoing negotiations between South Korea and the U.S. have yet to yield substantial results, with the South Korean Trade Minister emphasizing the need to prioritize national interests in trade discussions [5] - The Bank of Korea reported a record high current account surplus of $118.23 billion with the U.S. in 2024, driven by strong U.S. domestic demand and increased investments from South Korea [6]

Group 1 - The Swiss Federal Council is consulting on the impact of U.S. tariffs and has reached a consensus on existing measures [1] - The overall economic development is not expected to decline [1]

Group 1 - The Bank of Japan's policy committee member Asahi Noguchi believes there is no need for the central bank to intervene in the bond market despite recent significant increases in ultra-long-term bond yields, describing the volatility as "rapid but not unusual" [1] - Noguchi emphasizes the necessity to pause interest rate hikes until the impact of U.S. tariffs on the economy becomes clearer, indicating that current economic uncertainty makes rate adjustments meaningless [1][3] - The recent rise in ultra-long-term bond yields has reached historical highs, influenced by political calls for large-scale fiscal spending, while short-term bond yields remain stable due to reduced expectations for rate hikes [1][2] Group 2 - The Bank of Japan exited its large-scale stimulus program last year, which included maintaining bond yields around zero, and raised the short-term policy rate to 0.5% in January, citing progress in achieving the 2% inflation target [2] - In the upcoming policy meeting, the Bank of Japan will conduct a mid-term evaluation of its bond reduction plan and consider strategies for after April 2026, with Noguchi suggesting no major adjustments are necessary at this time [3] - Concerns over global economic slowdown due to U.S. tariffs have led the Bank of Japan to significantly lower its growth forecasts, raising questions about the sustainability of wage increases supporting consumption and the overall economy [3]