Asian shares follow Wall Street higher, yen weak ahead of Japan vote
Overnight, the S&P 500 and the Nasdaq again closed at record highs as U.S. data including retail sales and jobless claims beat forecasts, indicating a modest improvement in the economy that should give the Federal Reserve time to gauge the inflation impact from higher U.S. tariffs.
Streaming giant Netflix beat Wall Street's lofty expectations for second-quarter earnings in part due to a weaker U.S. dollar. Its share price, however, fell 1.8 per cent in after-hours trading, with analysts saying much of the growth had already been priced in.
European share markets are set for a higher open, with EUROSTOXX 50 futures 0.4 per cent higher. Wall Street futures were up 0.2 per cent.
On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent to its highest since late 2021, bringing the weekly gain to 1.5 per cent.
Japan's Nikkei, however, slipped 0.2 per cent, and the yen slipped 0.1 per cent to 148.77 per dollar and was down about 0.7 per cent this week after polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the election on Sunday.
Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed beyond the central bank's 2 per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity.
"If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities.
"JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump."
Chinese blue-chips rose 0.4 per cent while Hong Kong's Hang Seng index gained 0.8 per cent.
The Tapei-listed shares of TSMC, the world's main producer of advanced AI chips, rose 1.3 per cent after posting record quarterly profit, though it said future income might be affected by U.S. tariffs.
In the foreign exchange market, U.S. the dollar was on the back foot on Friday, having bounced 0.3 per cent overnight against major peers on the strong economic data. For the week, it is headed for a second successive gain of 0.7 per cent, bouncing further from a 3-1/2 year low hit over two weeks ago.
Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move.
Fed funds futures imply next to no chance of a move on July 30, while a September rate cut is just about 62 per cent priced in.
Treasury yields were slightly lower in Asia. Benchmark 10-year U.S. Treasury yields slipped 3 basis points to 4.4375 per cent, having moved little overnight. Two-year yields also edged 2 bps lower to 3.8944 per cent.
Oil prices extended gains on Friday, after drones strikes on Iraqi Kurdistan oil fields fuelled supply concerns.
U.S. crude rose 0.4 per cent to $67.79 per barrel and Brent also rose 0.4 per cent to $69.77 a barrel. They, however, lost about 0.7 per cent for the week.
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CNA
2 hours ago
- CNA
‘We were gutsy, a little foolish': Co-founder Lyn Lee on how Awfully Chocolate became a cult cake brand early in the game
Local F&B entrepreneurs would unanimously agree that two decades is a lifetime to remain in business. Soaring labour and ingredient costs aside, surely the eye-watering rents would be enough to drive an honest proprietor to rack and ruin — not to mention the occasional black swan event such as financial crises and a full-blown pandemic. Despite rolling with those punches to establish Awfully Chocolate as an enduring, 27-year-old local brand, its co-founder Lyn Lee is adamant about not downplaying the towering odds stacked against her and her counterparts. She has even declined interviews on the hot-button issue of rising rents. 'I don't want to be used to say, 'See, Awfully Chocolate can survive because they did this and that. You didn't pivot.' I will not be drawn into that,' she said. A tendency to couch her words in careful disclaimers hints at Lee's former career in law. But on one point, she's unequivocal: 'In any one of those cases of a business shutting down reported in the news, it was 100 per cent because of the rent,' she added emphatically. View this post on Instagram A post shared by Awfully Chocolate Singapore (@awfullychocolatesg) Yet, amid growing calls for government intervention to rein in rent hikes and safeguard local businesses, Lee stops short of echoing those demands and leans instead toward forging stronger support networks among fellow tenants. 'If we all started looking at how we could band together and support one another, that should be an improvement. Otherwise, the market may correct itself.' While the laws of capitalism may stand in the way of rent control, she does however, argue that a vibrant F&B sector doesn't develop by happenstance. 'Everyone says, Singapore is so boring and everything is the same. But if you don't have different markers for how to have different types of businesses, it will be very dull.' CHASING THE PERFECT CHOCOLATE CAKE Fitting into a ubiquitous mould was far from Lee and her co-founders' minds when they launched Awfully Chocolate in 1998, in the upheaval of the Asian Financial Crisis. There, in a quiet nook of pre-gentrified Katong, the friends opened a flagship store offering just one item: A simple chocolate cake they'd spent months refining. Focusing single-mindedly on just one product — with no fallback plan and zero market research to hitch their wagon to — was nothing short of audacious. Family and friends dismissed the venture as a non-starter and gave it two months to survive. 'To them, we were making very weird decisions,' she recalled. ''How can you open in Katong, where it's all about laksa and Peranakan food? Who's going to go there to buy a whole cake?'' But Lee and her co-founders, then in their 20s, weren't swayed. In her words, they were 'contrarian' — more inclined to go against the grain than follow it. 'My partners were 'Katong-ites'. They said we had to be where the best food is, and that if you could make it in Katong, you could make it anywhere else,' recounted Lee. While none of them possessed F&B experience, the huddle of dreamers had long flirted with the idea of embarking on 'some cool adventure.' Lee, a former lawyer who worked at leading law firm Allen & Gledhill, had left the profession to work in a media company. She convinced her young and restless crew to join her in her pursuit for the 'perfect chocolate cake.' It took months of folding batter into submission, and plying loved ones with chocolate cake, before they sank funds into leasing their Katong store. Its stark, pared down aesthetic had less to do with design intent than with the reality of a skint budget. They could scarcely afford a refrigerator, let alone a display counter. 'Our friend who helped to design the logo asked, 'Why do you need a display counter when you're only selling one cake? It would look so silly to display 12 dark brown circles',' she recalled. Defying convention, she said, helped them to stand out in a space saturated with Ultraman cakes dripping in chromatic excess. 'I believe the early articles called us the cake shop that doesn't look like a cake shop. It was quite cutting-edge.' Their first big break came from a feature in lifestyle magazine 8 Days, after being discovered by playwright Michael Chiang, who was formerly the editorial director of Mediacorp Publishing. 'When he chose to feature this funky little cake shop, it drew attention, because back then they wrote about music and entertainment, not food,' shared Lee. The publicity pole-vaulted the business into the public consciousness, and the phone didn't stop ringing after that. 'We could only bake around 50 cakes a day, so we would sell out and go home,' she recalled. Awfully Chocolate became a cult chocolate cake brand early in the game — thanks, in no small part, to a quality some would have written off as foolhardiness. 'We were gutsy, a little foolish, but we believed there might be enough room for us to do trial and error,' said Lee. She now tries to pass on some of that scrappy, self-starting spirit to her team, whom she encourages to produce their publicity videos in-house. 'I'm always pushing the younger generation to not worry that they may not have a formal qualification in something that the job scope requires,' shared the 52-year-old. A RECIPE FOR RESILIENCE Growing a hole-in-the-wall setup into an international brand — with franchises once spanning Taiwan, China, and Hong Kong — has, however necessitated no small measure of agility. Rather than framing her entrepreneurial journey as a dichotomy of missteps and masterstrokes, Lee views it as a series of moves, 'one step at a time.' When Awfully Chocolate first ventured into urban malls, the co-founders realised that shoppers weren't inclined to lug an entire cake from store to store. In response, they began opening cafes that offered cake by the slice, along with a medley of bite-sized indulgences including chocolate truffles and ice cream. Over time, they uncovered new revenue streams — from corporate gifting to, more recently, a product line curated for hotels. That's not to say they haven't made big swings, either. At the end of 2024, they launched their own roastery in China, where they've been experimenting with innovations such as tea brewed from caffeine-free cacao husks. The latter is served at The Awfully Chocolate Experience Cafe that opened in Wisma Atria that same year. 'We've had exchanges with leading agricultural scientists from Wilmar International, and learnt how to use some of their healthy plant-based innovations,' shared Lee. Years of investing heavily in research and development for their B2B arm have paid off. 'We have this whole in-house setup where corporates can give us a vague idea of what they want and our R&D, design and marketing teams will just bring it to life,' she said. These capabilities, she noted, have to an extent girded them against the vagaries of an increasingly volatile rental market. Other external pressures brought to bear upon the business include the COVID-19 pandemic that hit like a sledgehammer to their China operations. 'From over 60 stores, we were whittled down to just a handful in two cities,' she revealed, adding that conditions in the mainland remain challenging amid a sluggish economy. While the pandemic took its toll on business in Singapore, Lee says they pulled through by biting the bullet and forgoing their salaries, for the most part, during those trying months. 'One of my business partners who did a lot of work restructuring companies during the Asian Financial Crisis shared that those that made it had teams that came together and believed that they would come out stronger if they made the sacrifices,' she related. 'When everyone starts thinking about themselves, that's when you see the whole thing fall apart.' Working with her friends for close to three decades, she insists, has been a blast, with no major conflict to grouse of. 'I'm very much a frontline person — I always think like a customer. Some of my partners, on the other hand, aren't that way,' she laughed. 'But that's the wonderful diversity and synergy between different personalities.' While the close-knit group may wax facetious about the 'cliche' of building a business on Lee's love of chocolate, it's proven to be a richly layered endeavour. For one, delving into the nuances of the Singaporean palate has deepened her appreciation for her country itself. Locals, she observes, tend to favour dark chocolate that's neither overly rich nor cloying, with a warm, toasty finish. 'I almost liken this to how amazing Singapore's food is. Like how there must be wok hei (smokiness),' enthused Lee. She volunteered that she eats chocolate cake for breakfast — a habit her kids 'find weird.' 'I love that we have our own Singaporean identity when it comes to chocolate preference, and I hope that we can share that more with the world.'
CNA
8 hours ago
- CNA
On The Red Dot: Hustle In My HDB
23:00 Min Edward and Nareeza run home salons in their HDB flats. With young kids at home, they juggle regulations, personal boundaries, and business dreams—all from home. How do they make it all work?
Straits Times
9 hours ago
- Straits Times
Japan heads to polls in key test for PM Ishiba
Find out what's new on ST website and app. Japan's Prime Minister Shigeru Ishiba, leader of the Liberal Democratic Party (LDP), raises his fist from atop the campaigning bus on the last day of campaigning for the July 20 upper house election, in Tokyo, Japan July 19, 2025. REUTERS/Manami Yamada TOKYO - Japanese voters could unleash political turmoil as they head to the polls on Sunday in a tightly contested upper house election, with rising prices and immigration concerns threatening to weaken Prime Minister Shigeru Ishiba's grip on power. Opinion polls suggest Ishiba's Liberal Democratic Party and coalition partner Komeito may fall short of the 50 seats needed to retain control of the 248-seat upper house of parliament in an election where half the seats are up for grabs. The polls show smaller opposition parties pushing for tax cuts and increased public spending are set to gain, among them the right-wing Sanseito, which vows to curb immigration, oppose foreign capital inflows and reverse gender equality moves. A poor showing by the coalition could shake investor confidence in the world's fourth-largest economy and disrupt critical trade talks with the United States, analysts said. Ishiba may have to choose between making way for a new LDP leader or scrambling to secure the backing of some opposition parties with policy compromises, said Rintaro Nishimura, an associate at the Asia Group in Japan. "Each scenario requires the LDP and Komeito to make certain concessions, and will be challenging, as any potential partner has leverage in the negotiations." After the election Japan faces a deadline of August 1 to strike a trade deal with the United States or face punishing tariffs in its largest export market. Top stories Swipe. Select. Stay informed. Singapore Mindef, SAF units among those dealing with attack on S'pore's critical information infrastructure Asia How China's growing cyber-hacking capabilities have raised alarm around the world Singapore Vessels from Navy, SCDF and MPA to debut at Marina Bay in NDP maritime display Asia Autogate glitch at Malaysia's major checkpoints causes chaos for S'porean and foreign travellers Asia SIA, Scoot, Cathay Pacific cancel flights as typhoon nears Hong Kong Singapore A deadly cocktail: Easy access, lax attitudes driving Kpod scourge in S'pore Singapore 'I thought it was an April Fool's joke': Teen addicted to Kpods on news that friend died Singapore Why hiring more teachers makes sense, even with falling student numbers Such import levies could squeeze the economy and further pressure the government to give financial relief to households already reeling from inflation, such as a doubling of rice prices since last year. With an eye on a jittery government bond market, the LDP has called for fiscal restraint, rejecting opposition calls for major tax cuts and welfare spending to soften the blow. Ishiba's administration lost its majority in the more powerful lower house in October. As the LDP's worst showing in 15 years, the outcome roiled financial markets and left the prime minister vulnerable to no-confidence motions that could topple his administration and trigger a fresh general election. Ruled by the LDP for most of the post-war period, Japan has so far largely avoided the social division and fracturing of politics seen in other industrialised democracies. Voting ends at 8 p.m. (1100 GMT), when media are expected to project results based on exit polls. REUTERS
