Aug 6, 05:56 AM

Weak US Data Saps Asian Stocks; Shopify Rallies on Earnings Beat

Asian equities opened on a cautious note after weaker-than-expected U.S. ISM services data and still-elevated inflation left investors questioning whether the Federal Reserve can begin easing policy this year. Australia’s ASX 200 added 0.4%, while Japan’s Nikkei 225 slipped 0.2% and South Korea’s Kospi fell 0.5%, reflecting the fragmented mood across the region. Sentiment was further tempered by President Donald Trump’s suggestion of additional tariffs on Chinese and other imports, even as the White House’s 145% levy on Chinese goods that took effect in April continues to reverberate through supply chains. Despite the rhetoric, futures signalled modest gains for Europe; Euro Stoxx 50 contracts advanced 0.3% and FTSE 100 futures pointed higher. U.S. equity futures also edged up, helped by a generally solid earnings season. Among the day’s corporate highlights, Shopify reported second-quarter earnings that surpassed expectations. Adjusted earnings rose to $0.35 a share, topping forecasts of $0.25, while revenue climbed 31% from a year earlier to $2.7 billion. Gross merchandise value reached $87.8 billion. The Canadian e-commerce platform’s shares jumped roughly 11% in pre-market trading, with management saying earlier investments are now translating into faster growth. Strong results from Shopify and other consumer and technology names offset concerns about softer macro indicators as markets head into the North American session.