Australia shares climb as miners, energy stocks rally; Woodside jumps on upbeat results
The S&P/ASX 200 index rose 0.4% to 8,708.1 by 0031 GMT. The benchmark ended flat at 8,677.20 points on Tuesday.
With an August 1 deadline for sweeping U.S. import tariffs looming, investors await signs of relief, after Washington announced a trade deal with Japan.
Australia faces a 10% baseline tariff on most exports to the U.S.
Meanwhile, minutes from the Reserve Bank of Australia's July meeting on Tuesday showed a cautious stance in July, with board members deciding to keep the interest rate unchanged against market expectations, opting to wait for more evidence of a sustained slowdown in inflation.
Local miners led the charge on the benchmark by rising as much as 2.2%, tracking a rise in iron ore prices.
Shares of miners Fortescue were up 2.4%, while BHP and Rio Tinto gained 1.8% and 2.7% respectively.
Energy stocks climbed 0.8% due to rising oil prices.
Woodside Energy's shares outpaced the broader sub-index, and were up 2.4%.
The country's top gas producer reported a stronger-than-expected 8% rise in second-quarter revenue.
Gold stocks also rose 2.2%, tracking a surge in bullion prices.
Shares of gold miners Northern Star Resources and St Barbara were up 2.6% and 2.4% respectively.
Countering gains, the financials sub-index shed 0.2% with shares of National Australia Bank and Commonwealth Bank of Australia down 0.7% each.
Information technology sub-index also dropped 0.3%, with Australian-listed shares of Xero down 0.8%. Shares of WiseTech Global fell 0.6%.
New Zealand's benchmark S&P/NZX 50 index fell 0.3% to 12,790.74.
(Reporting by Roshan Thomas in Bengaluru; Editing by Alan Barona)
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Business Standard
13 minutes ago
- Business Standard
India to keep buying Russian oil despite Trump's penalty threat: Report
India will continue to buy crude oil from Russia, despite US President Donald Trump's warning of a penalty, according to a report in Reuters, quoting two Indian government sources, who did not wish to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." The New York Times, in its report, quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy. One of the officials, in the news report, said the government had "not given any direction to oil companies" to cut back imports from Russia. The Indian authorities had, on Friday, said their energy decisions are based on national interest and market factors. Trump recently claimed India may stop purchasing oil from Russia, calling it a 'good step' if true. However, India's foreign ministry stated on Friday that no such decision has been made. Speaking to the media on Friday, Trump said, 'I understand that India is no longer going to be buying oil from Russia. That's what I heard — I don't know if that's right or not — but that would be a good step.' His comment followed the US government's announcement of a 25 per cent tariff on all goods imported from India, effective from August 1, along with an unspecified penalty. Tougher stance: 100% tariff warning In mid-July, Trump issued a stronger threat, warning of up to 100 per cent tariffs on any country that continues to buy oil from Russia unless there is a complete peace agreement between Russia and Ukraine. Earlier this week, he also criticised India's economic partnership with Russia. Posting on Truth Social, Trump said, 'I don't care what India does with Russia. They can take their dead economies down together, for all I care.' He repeated long-standing complaints about India's high tariffs, saying, 'Their tariffs are too high, among the highest in the world. The US has done very little business with India for this reason.' On Wednesday, the US officially announced a 25 per cent tariff on all Indian exports to the United States starting August 7. India defends its position Responding to the US statements, India's Ministry of External Affairs said the country decides on oil purchases based on availability, global prices, and domestic needs. 'We look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation,' said foreign ministry spokesperson Randhir Jaiswal during a press briefing on Friday. Russia remains India's top oil supplier Russia continues to be India's leading crude oil supplier, accounting for about 35 per cent of total oil imports. From January to June 2025, India imported around 1.75 million barrels per day of Russian oil — slightly higher than the same period last year, Reuters reported. Other key suppliers include Iraq, Saudi Arabia, and the UAE. India is the world's third-largest importer and consumer of oil. US Senator Marco Rubio calls India's Russia ties a concern US Secretary of State Marco Rubio also expressed concern over India's oil purchases from Russia, saying it is 'most certainly a point of irritation' in the US-India relationship. Speaking to Fox Radio on Thursday, Rubio noted that even among allies, it is normal to disagree on some foreign policy matters. 'India is a strategic partner. Like anything in foreign policy, you're not going to align 100 per cent of the time,' he said. (With agency inputs)
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First Post
13 minutes ago
- First Post
Trump's tariff threat: For India, no deal is better than a bad one
Trade deals aren't T20s—they're Test matches, needing years of diplomacy, while President Trump wants them wrapped up in days read more America is India's largest trading partner. Still, the world is larger than the US, and India is a sovereign global power. File Image/Reuters The President of the United States, Donald Trump, issues policy decisions and administrative orders from golf courses, aboard Air Force One, on his social media platform Truth Social, and occasionally from the White House in the form of Executive Orders. For President Trump, 'tariff' is the most beautiful word in the dictionary. Once again, on July 31, 2025, Trump disrupted the global trade order, sending markets into turmoil with a sweeping revision of ad valorem duties on imports from nearly 200 countries. His latest Executive Order was issued just a day before his extended deadline to the world expired on August 1, 2025. STORY CONTINUES BELOW THIS AD India, along with Brazil, Canada, and Switzerland, has been hit particularly hard. I'll examine the implications for India shortly. Extreme Break, and the Cost to US Consumers First, what do these new tariff orders signify? Indisputably, they add more confusion to an already uncertain global trade environment. More critically, they represent a sharp departure from over a century of US trade policy. According to the Budget Lab at Yale University, the new tariffs will lead to an overall effective tariff rate of 18.3 per cent— the highest since 1934. They estimate this will cost the average American household around $2,400 in 2025 alone. Markets in a Tizzy The new trade policy, effective August 7, impacts nearly every country and marks a decisive break from decades of free trade. The result? Markets tumbled on both sides of the Atlantic. After an early-day sell-off in Asian markets, Europe's Stoxx 600 fell nearly 2 per cent, the UK's FTSE 100 declined by 0.8 per cent, and Wall Street closed lower, with the Dow Jones and S&P 500 down over 1 per cent, and the Nasdaq dropping more than 2 per cent. The market drop was worsened by weaker-than-expected US job data. STORY CONTINUES BELOW THIS AD Why So Much Uncertainty? First, the second Executive Order (dated July 31) came just months after the original April 2 order — a one-two punch for global markets. Second, there is no assurance that we've seen the worst of Trump's tariff campaign. Decoding the New Tariff Regime The revised tariffs impact nearly every country and signify a hard pivot toward protectionism. Here's how the new structure breaks down: 10 per cent Tariff: Imposed on countries with whom the US has a trade surplus (ie, countries that import more from the US than they export to it). 15 per cent Tariff: Set as a minimum for about 40 countries where the US runs a trade deficit. For some, this is lower than the April 2 'reciprocal' tariffs; for others, it's higher. Above 15 per cent: Over two dozen countries now face tariffs higher than 15 per cent, either due to agreed frameworks or unilateral decisions by Trump — mostly those with large trade deficits with the US. STORY CONTINUES BELOW THIS AD Trans-shipment Penalty: An additional 40 per cent tariff may be imposed on goods Washington deems as 'trans-shipped' through another country — a move primarily targeting Chinese goods. Winners and Losers The new tariff framework has created a jarring set of winners and losers. Losers: Brazil: Hit hardest with a 50 per cent tariff, including a vague 'free speech' penalty. India: Faces a 25 per cent tariff, plus an unspecified penalty for purchasing Russian energy and military hardware — potentially as high as 200 per cent. Syria: 41 per cent tariff — second highest after Brazil. Myanmar and Laos: 40 per cent each. Switzerland: Slapped with a 39 per cent tariff, the highest for any European nation outside the EU. Iraq and Serbia: 35 per cent each. Canada: Tariff raised to 35 per cent, but goods compliant with the United States–Mexico–Canada Agreement (USMCA) are exempt. South Africa, Algeria, Libya: 30 per cent each — the highest in Africa. Moldova, Mexico, Brunei, Tunisia, Kazakhstan: All face a 25 per cent tariff — same as India, though India has the added Russia penalty. STORY CONTINUES BELOW THIS AD Winners: Bangladesh, Sri Lanka, Taiwan, Vietnam: Each now faces a 20 per cent tariff, down sharply from April's rates (46 per cent for Vietnam, 44 per cent Sri Lanka, 37 per cent Bangladesh, 31per cent Taiwan). Cambodia, Indonesia, Malaysia, Pakistan, Philippines, Thailand: Tariffs lowered to 19 per cent, from as high as 49 per cent (Cambodia) and 32 per cent (Indonesia) in April. This comparison puts India at a clear disadvantage among its Asian peers. Trump had initially imposed tariffs up to 27 per cent on Indian goods in April, later paused. Since then, multiple rounds of trade talks have taken place. There's More Beyond general import tariffs, targeted levies now affect specific industries: Steel & Aluminium: 50 per cent (effective June 4) Copper: 50 per cent (effective August 1) Automobiles & Car Parts: 25 per cent (from April 3 and May 3) Though not yet implemented, Trump has threatened 200 per cent tariffs on pharmaceuticals and semiconductors, citing national security. Ninety Deals in Ninety Days? On April 2 — what Trump dubbed Liberation Day — he introduced his first round of 'reciprocal' tariffs. Days later, he paused them, giving trading partners 90 days to negotiate deals with the US. Trump ambitiously aimed for 90 deals in 90 days. According to Kevin Hassett, Director of the National Economic Council, over 50 countries began talks. STORY CONTINUES BELOW THIS AD Arm-Twisting, Not Diplomacy Despite his optimism, Trump has little to show beyond coercive deals: UK: A deal allowing 100,000 cars to be exported to the US at 10 per cent tariff (down from 25 per cent). EU: 15 per cent flat tariff — less than the threatened 30 per cent. Japan: 15 per cent tariff, plus $550 billion investment in US infrastructure and agricultural market access. Philippines: Reduced from 20 per cent to 19 per cent. China: Tariff reduced from 145 per cent to 30 per cent; China reciprocated with a cut from 125 per cent to 10 per cent. South Korea: Tariff set at 15 per cent (down from 25 per cent); Korea pledged $350 billion investment and $100 billion in US energy purchases. These are not carefully negotiated, mutually beneficial agreements — they are outcomes of arm-twisting. Trade Deals Aren't White-Ball Cricket Trump's 90-deal ambition was destined to falter. Trade deals aren't T20 matches — they're Test cricket. They require years of diplomacy and legislative buy-in. The global average to finalise a trade deal is 2.5 years. Trump wants them done in days. STORY CONTINUES BELOW THIS AD India's Trade Talks – Derailed Again India has held five rounds of talks with the Trump administration — predating the April 2 tariffs. Trump repeatedly claimed a 'great deal' with India was coming. Then, out of nowhere, he delivered a bouncer. Despite ongoing talks, he branded India a 'tariff king' and an 'abuser of trade ties', imposing a 25 per cent tariff — significantly higher than most Asian peers — plus an unspecified Russia-related penalty. The most alarming scenario? Trump enforces his earlier threat of a 100 per cent secondary tariff on Russian energy buyers. This would make Indian goods prohibitively expensive in the US. The Logic? There Often Isn't One Trump's justification? High Indian tariffs, non-monetary barriers, and India's defense trade with Russia. Here's what he posted on Truth Social on July 30: 'Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high… Also, they have always bought a vast majority of their military equipment from Russia… INDIA WILL THEREFORE BE PAYING A TARIFF OF 25% PLUS A PENALTY… STARTING ON AUGUST FIRST. THANK YOU… MAGA!' STORY CONTINUES BELOW THIS AD The next day, Trump doubled down: 'I don't care what India does with Russia. They can take their dead economies down together, for all I care…' Consequences of No Deal In just three days, Trump reversed course — from promising a 'great deal' to dismissing India's economy altogether. The 25 per cent tariff took effect on August 1. A last-minute mini deal India and the US had been negotiating since February has now collapsed. A comprehensive trade deal looks even more unlikely. Time for Bharat First If the new tariffs and the Russia penalty persist, India's GDP could take a 0.2-0.4 per cent hit, especially affecting export sectors like marine products, textiles, leather, automobiles, and pharmaceuticals. But it's time to hold the line. As the government rightly states, India must take all necessary steps to protect its national interest — as seen in recent trade pacts like the Comprehensive Economic and Trade Agreement with the UK. America is India's largest trading partner. Still, the world is larger than the US, and India is a sovereign global power. India must refuse any trade agreement that is inequitable or detrimental to its farmers, entrepreneurs, and Micro, Small & Medium Enterprises (MSMEs). No deal is better than a bad deal. The author is a multi-disciplinary thought leader with Action Bias and an India based impact consultant. He is a keen watcher of changing national and international scenarios. He works as President Advisory Services of Consulting Company BARSYL. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
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First Post
43 minutes ago
- First Post
India's way in the topsy-turvy world of Trump's tariffs
India could consider redirecting exports to the United States via the UK, with which it has just concluded a free trade agreement. The UAE also presents another potential route read more America is annoyed, along with the Nato countries in Europe, at India's neutrality on Ukraine and buying petroleum from war-sanctioned Russia. File Photo/Reuters The US-India relationship, called a geostrategic imperative for decades now, particularly in conjunction with the rise of China as a challenger to US hegemony, seems to have soured very suddenly. What India now does about the situation will define not only the bilateral relationship going forward and the multilateral one in Quad but also India's standing in the world. This, as it goes towards becoming the world's third largest economy before 2030. STORY CONTINUES BELOW THIS AD The answer lies in a combination of retaliatory tariff hikes and even brand-new impositions on American companies operating in India, for example, in the digital space, and diplomatic accommodation of American demands on trade wherever possible. Caving in abjectly to US dictation has been swiftly ruled out. Perhaps the policymakers in Washington have not properly assessed the determination and backbone of the Modi administration. In response to the near abusive tone adopted by Trump, unable to bully India into buckling under, India has said it will act only in its national interest. But having said that, to take the relationship forward without a rupture, very skilful give and take will nevertheless have to take place. Even an adversary like China realises this in the midst of this tariff war with the US. The Indian stock market is not unduly perturbed because tariff impositions like this cannot make too much of an impact in a country driven by its domestic economy. This is the key difference between India and many other highly export-dependent countries. Still, the US currently accounts for half of all Indian exports, and till lately, the bilateral trade was expected to treble to $500 billion by 2030. Unless repaired, the present figure of $150 billion, with the balance of trade in India's favour, could largely evaporate. STORY CONTINUES BELOW THIS AD Instead of it being thought of as the 'plus one' to China as the US seeks to create new supply chains, other countries in South and Southeast Asia could assume this mantle, albeit collectively. This would be bad for India as a historic opportunity missed. At the same time, India's stellar growth rate of about 6.5 per cent in GDP year-on-year, the highest amongst all major economies, could be impacted by up to 0.5 per cent by US tariffs at 25 per cent on Indian exports. This is not counting as yet excluded sectors such as service exports, meaning software in the main. Pharmaceuticals are also not included, but tariffs on them have been threatened. Indian pharma companies have been brought under the US Food and Drug Administration (USFDA) scanner. These include Aurobindo Pharma, Reddy's Laboratories, and Sun Pharma. Various inspections are being conducted. But generic drug exporters could face tariffs next. Then there are as yet unspecified penalties for India's membership of Brics, perceived as an anti-US organisation hostile to using the US dollar as a global currency for most trade. Does India need to really stay in Brics which leans towards China, or could it move away to a leadership of the Global South instead? STORY CONTINUES BELOW THIS AD India wants to promote its UPI but not get rid of the US dollar in favour of the Chinese currency. It has made this clear on more than one occasion. America is also annoyed, along with the Nato countries in Europe, at India's neutrality on Ukraine and buying petroleum from war-sanctioned Russia. The Trump administration also does not want India to buy armaments from Russia either despite the great success of the S-400 and Brahmos missiles in the recent Operation Sindoor against Pakistan. We will know the extent of the blow only when the penalties are specified, but it could be well over 100 per cent. For now, India has been subjected to one of the higher tariffs amongst its export competitors, Vietnam and Bangladesh, for example. These begin in the absence of its agreement to allow American dairy, Genetically Modified seeds, and agricultural products at nil tariff into the country. The sectors gravely affected are textiles and ready-made garments, plus gems and jewellery, which are all labour intensive. STORY CONTINUES BELOW THIS AD India could consider redirecting these exports via the UK, with whom an FTA has just been concluded at nil duty. The UAE, with which country India also has an FTA, presents another route. We do not have tariffs like Vietnam for conducting third-party exports either. India, like others, and China before it, could look for circumventions too. Even after five rounds of face-to-face negotiations and a sixth meeting scheduled around August 20-21 in Delhi, dairy and agricultural products are sticking points. Will India be able to concede ground on some items within this sphere, particularly in the processed foods area, to allow the Trump administration to call it a win? Of course, the dairy and agriculture sectors are politically sensitive in India, with rural India, its farmers, and others constituting a very powerful voting block and lobby, ever ready to march on Delhi in an instant. Still, certain items in the detail that don't pose a threat to Indian agriculturists could be allowed in. STORY CONTINUES BELOW THIS AD An interim trade deal could then result, and the punitive 25 per cent tariffs would be overtaken. A full agreement could come after at least a year when all issues have been scrutinised and negotiated. America wants access to the Indian market, and India would be churlish to miss the chance to achieve a good FTA with America. This is more so with China as our main economic and military competitor next door. India could also further diversify its imports of oil and gas, looking farther afield to reduce its purchase of Russian products. This provided lucrative deals better than those on offer from Russia could be struck. Hopefully, the Trump administration will not take an absolutist position and live and let live. As for armaments, can America supply what India needs quickly enough and at a reasonable price? The US track record on the supply of GE 404 and 414 engines for India's hugely delayed Tejas 1A and 2A fighter programmes has been most discouraging. Likewise, the Apache AH-64E combat helicopters on order are vastly delayed for some years; the deal was signed in 2020. With only three out of the six just delivered, and the other three promised by the end of 2025. STORY CONTINUES BELOW THIS AD America is also very expensive, slow on export permissions on its high-technology armaments, and reluctant to collaborate and transfer technology. It would have to change all this and be consistent going forward without using any of it for leverage against India. While Russia is immersed in the war in Ukraine, it has continuously tried to support the Indian armed forces and has offered the best terms on its advanced equipment with technology transfer. France, Germany, the UK, and Israel have also become defence partners with India and provide alternatives to both Russia and America. The commercial Boeing aircraft on order by the private sector are also much delayed, even as various Boeing aircraft in India and abroad are showing a lot of technical problems that even resulted in a major crash of a 787-8 Dreamliner at Ahmedabad recently. Is the American aviation industry slipping? The $100 million F35 is showing problems, with one stranded for over a month in India before it was repaired and another crashed in America. Everything military equipment-wise, if it comes from the US, is most tardy. But still, yes, there is definitely room for give and take and revisions of stance between the two great democracies. STORY CONTINUES BELOW THIS AD The writer is a Delhi-based political commentator. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
