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China-US Relations Rebuild, Singapore DBS Succeeds in Predicament, Dark Matter Universe Research: Gl

Good afternoon. Here are the end-of-day points you need to know. US Treasury Secretary Jacob Lew is set to visit China this week to repair ties between the two nations. Singapore banking family Piyush Gupta's succession dilemma at DBS created a Singaporean banking star. The Euclid space telescope is set to start studying dark matter in the universe. US Treasury Secretary will visit Beijing from July 6 to 9. Global funds will have another chance to buy some of the most sought-after bonds in Asia. Corporate sentiment in Japan has improved. Jacob Yellen's long-awaited visit highlights the Biden administration's efforts to restore communication with Beijing. South Korean bonds have been a favourite among foreign investors in Asia this year and the recent dip should be seen as another buying opportunity, market watchers said. Japan's Topix Index led Asian stocks higher after the Bank of Japan's quarterly Tankan survey showed a first improvement in large manufacturers' confidence in nearly two years. According to Bloomberg analysis, three-month currency hedges against the yen delivered 12.7% returns to Japanese 10-year sovereign bond investors in the first half of the year, outstripping those in 19 other developed market countries. The returns were mainly fuelled by the recently bolstered hedges as the yen weakened below 145 against the US dollar.

Singapore banker Piyush Gupta triggered the succession dilemma during his tenure as CEO, with bank watchers following his 13-year term asking the same question: Who will replace Gupta and when will it happen? It is a typical case of a so-called key person risk.

China Vanke said the property market on the mainland is currently “worse than expected”, echoing a chorus of investors and analysts who have taken a pessimistic view of the Chinese property sector. Other news: Singapore residential prices fell for the first time in the second quarter, with private home prices down 0.4% from the previous quarter. Apple is reportedly cutting production of its much-anticipated mixed-reality Vision Pro headset due to the complexities in manufacturing, according to the Financial Times. Cathay Pacific's check-in counter in Hong Kong Central, which had been closed for more than three years due to the pandemic, will reopen this Wednesday. Pakistan's stock market surged to its highest in three years after the country reached a preliminary agreement with the International Monetary Fund. China's Caixin Manufacturing PMI showed a slowdown in the expansion in June. PMI data from other countries in the region also showed softness.

Daniel Moss wrote: “The words ‘recession’ and ‘China’ don’t often show up in the same sentence.” Yet, moving from a litany of prosaic reports to a harsher description of a Chinese economic recession is not a difficult leap. There should be no taboo about describing a recessionary state of the Chinese economy.

Ten months ago, Pakistan experienced severe flooding that killed over 1,700 people, displaced 8 million, and caused losses of more than $30 billion. This is just a tip of the deadly climate cycle. With the new monsoon season approaching, recovery efforts are in a quandary. For more on this issue, see our feature report.

Europe has launched a space telescope designed to study what scientists call the "dark universe" to answer an ancient question: What is the stuff that actually exists in the universe? The telescope, called Euclid, was blasted off from Cape Canaveral on Saturday on a SpaceX Falcon 9 rocket and then separated to begin a one-million-mile journey away from Earth. It will join NASA's James Webb Space Telescope to explore the 95% of matter that makes up the cosmos.

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