Major Asian share indexes saw a modest increase on Monday, August 11, 2025, supported by strong earnings from the technology sector. Investors are closely monitoring the upcoming release of the U.S. Consumer Price Index (CPI) report for July, scheduled for September 11, 2025. This report is expected to significantly influence the U.S. dollar and bond markets. The U.S.-China tariff truce, set to expire on August 12, 2025, remains a key focus, with expectations for a 90-day extension that could impact semiconductor manufacturers like Nvidia and AMD. Reports indicate these companies have agreed to allocate 15% of their AI chip revenue from China sales to the U.S. government in exchange for export licenses.
In currency markets, the U.S. dollar index held steady at 98.25, and the euro traded flat against the dollar at $1.1644. Gold prices declined by 0.7% to $3,376.67 per ounce, and Brent crude oil fell 0.6% to $66.22 per barrel, influenced by geopolitical developments and potential progress in U.S.-Russia discussions regarding sanctions. Regionally, Japan's Nikkei futures indicated a positive opening, reaching 42,465, suggesting the potential for a record high. The MSCI's broadest index of Asia-Pacific shares outside Japan also registered a slight increase. The U.S. CPI data, forecasted to show a 0.2% monthly rise and a 2.8% year-over-year increase due to tariffs, will be crucial for market sentiment. A higher-than-expected report could raise stagflation concerns, while a lower reading might boost expectations for Federal Reserve rate cuts.