NIKKEI|SUMCO|SOFTBANKSumco Corporation (3436.T) surged 15.40% to lead the Nikkei 225, followed by SoftBank Group (9984.T) at +10.65% — together these two names were the primary drivers of the index's 1.20% gain. Sumco's move reflects continued strong demand signals for silicon wafers in the AI/semiconductor supply chain; SoftBank's rally builds on the group's ongoing AI investment portfolio re-rating. Socionext (6526.T) also gained 7.00%, reinforcing the semiconductor theme across the index.
TOPIX|BANKSTOPIX Banks (1615.T) was the top-performing sector in the prior session, gaining +1.18%, consistent with the broader BoJ rate normalisation narrative. BoJ Deputy Governor Himino confirmed the policy rate was lifted to 1.00% in June, and board member Naoki Tamura has argued for a gradual move toward a neutral rate of approximately 2.00%. The next BoJ meeting is 30-31 July, and bank stocks continue to benefit from a steeper yield environment. Finance Minister Katayama's announcement encouraging domestic pension funds to increase holdings of Japanese financial assets is an additional structural tailwind for the sector.
JPYUSD/JPY rose 0.36% to 162.46 on Monday, extending persistent yen weakness toward the Goldman Sachs 12-month forecast of 165 (revised from 155 on 6 July 2026). CFTC net short yen positions stand at $10.1 billion — a level last seen in July 2024, when coordinated Japanese government intervention triggered a sharp carry trade unwind. With the BoJ meeting on 31 July, carry trade unwind risk is an active concern; paradoxically, a hawkish Fed CPI or Warsh testimony this week could pressure USD/JPY higher before any BoJ response.
TOPIX|STEEL|ELECTOPIX Steel & Metals (1623.T) fell 2.50% and Electrical Equipment (1625.T) declined 2.57% — the two worst-performing TOPIX sectors in the prior session. Aluminium fell 2.53% to $3,323.50/t, platinum dropped 0.56% and palladium declined 1.21%, adding pressure to metals-exposed names. The steel sector faces the dual headwind of softening domestic industrial demand and global risk-off flows, with Steel Rebar at 3,078 CNY/t flat on the session.
SSE|CSI|PBOCThe CSI 300 closed down 1.96% at 4,780.79 on Monday, its sharpest single-day decline in the current period. The PBOC has been maintaining a 'supportive but measured' stance, pledging to maintain ample liquidity while cutting bond purchases — a signal of wariness over yield declines. Markets will watch closely for any PBOC open market operations response to the equity slide, particularly given the SSE touched its lowest level since 8 June at today's midday trough of 3,934.74. China's trade data (Balance of Trade, Exports YoY, Imports YoY) is due at 02:00 JST, with exports forecast at +15% YoY (prior: +14.1%).
ASX|MATERIALSThe ASX 200 gained 0.50% to 8,806.0, with the ASX Materials sector (^AXMJ) the standout performer at +2.32% — directly reflecting the commodity price environment with copper up 0.62% to $6.272/lb and iron ore edging up 0.15% to $98.72/t. ASX Healthcare (^AXHJ) was the session's worst performer at -1.96%, a trend that mirrors the global risk rotation away from defensive healthcare names. The ASX Financials sector (^AXFJ) gained 0.55%, consistent with the higher rate environment. NAB Business Confidence data for Australia was due at 00:30 JST with prior at a deeply contractionary -23.