Asia midday: Asia stocks rally on China, Singapore data; US futures dip on Trump’s EU tariff threat & Gold shines (Chart of the day)

Major US stock indices extended their losses from last Friday into today’s Asian session. Both S&P 500 and Nasdaq 100 E-mini futures dropped by 0.5% at the time of writing, weighed down by renewed tariff anxieties. US President Trump issued a surprise escalation, threatening the European Union with a 30% tariff—an increase from April’s proposed 20%, if no improved trade terms are reached before the 1 August deadline.

This move follows a series of aggressive tariff demand letters sent to US trading partners over the past week. Hopes for a preliminary US-EU trade deal were dashed after recent media reports hinted at progress, only for negotiations to hit fresh roadblocks. Germany’s DAX reflected this disappointment with a second straight loss of 0.8% last Friday.

Despite Trump’s latest tariff salvo, Asia Pacific stock markets remained broadly resilient, supported by upbeat economic data from China and Singapore.

Hong Kong’s Hang Seng Index posted a third consecutive gain, rising 0.4% intraday as it rebounded from its 20-day moving average, now acting as support near 24,050. Singapore’s Straits Times Index (STI), known for its defensive and dividend-yielding components, rallied 0.4%, approaching the psychological 4,100 level. It’s on track for a sixth consecutive record close. In contrast, Japan’s Nikkei 225 slipped 0.2%, while Australia’s ASX 200 remained flat.

China’s June exports rose 5.8% year-on-year to US$325 billion, beating expectations (consensus: 5%). The growth was driven by manufacturers shifting focus to alternative markets amid the ongoing trade friction with the US. Notably, exports to 10 South Asian countries surged by 17% year-on-year.

Singapore also exceeded expectations. Its Q2 GDP grew by 1.4% quarter-on-quarter (seasonally adjusted), beating forecasts of 0.7%, and reversing Q1’s revised 0.5% contraction—helping the city-state avoid a technical recession.

Gold (XAU/USD) regained momentum last Friday, rallying 0.9% to a three-week high and moving back above its 20-day and 50-day moving averages. Safe-haven demand has resurfaced, particularly after gold’s recent underperformance relative to silver.

In today’s Asia session, the precious metal edged up another 0.1%, testing the key intermediate resistance at US$3,360. It briefly hit an intraday high of US$3,374. Technical signals remain constructive, and a daily close above US$3,360 could confirm a new bullish phase over the next several sessions.

Recent price actions of Gold (XAU/USD) have managed to retest and stage a rebound from its medium-term ascending trendline in place since the 31 December 2024 low.

It has formed a minor “Double Bottom” bullish reversal configuration, taking into account the two swing lows of 30 June and 9 July. Right now, Gold (XAU/USD) is breaking above the US$3,360 intermediate neckline resistance of the minor “Double Bottom” configuration (see Fig 2)

In addition, the hourly RSI momentum indicator has continued to flash a bullish momentum condition. Watch the US$3,328 key short-term pivotal support (also the 50-day moving average) for the next intermediate resistances to come in at US$3,400 and US$3,450 in the first step.

On the other hand, a break below US$3,328 negates the bullish tone for another choppy minor corrective decline sequence to expose the next intermediate support at US$3,293/3,282.