U.S. stocks rebound as inflation data cools
NEW YORK, June 12 (Xinhua) -- U.S. stocks ended higher on Thursday, lifted by easing inflation concerns and a surge in Oracle shares, even as trade tensions and corporate headwinds kept investors cautious.
The Dow Jones Industrial Average rose 101.85 points, or 0.24 percent, to 42,967.62. The S&P 500 added 23.02 points, or 0.38 percent, to 6,045.26. The Nasdaq Composite Index increased by 46.61 points, or 0.24 percent, to 19,662.49.
Eight of the 11 primary S&P 500 sectors ended in green, with utilities and technology leading the gainers by adding 1.26 percent and 1.01 percent, respectively. Meanwhile, communication services and consumer discretionary led the laggards by losing 0.59 percent and 0.41 percent, respectively.
The U.S. producer price index for May rose just 0.1 percent from April, below economist expectations of a 0.2 percent increase, suggesting modest inflationary pressure at the wholesale level, according to data issued on Thursday. On an annual basis, wholesale prices were up 2.6 percent, a slight uptick from April's 2.4 percent, but still aligned with forecasts. Core producer inflation, which excludes volatile food and energy, also came in softer than expected.
"Concerns about widespread increases in producer prices due to tariffs continue to be dissuaded," said Nationwide's Ben Ayers, citing lower fuel costs as a moderating factor.
Labor data added to the mixed economic picture, with weekly jobless claims holding steady at 248,000, slightly above forecasts and marking the second consecutive week at the highest level since October.
"There are early warning signs in the labor market," said Navy Federal Credit Union's chief economist, Heather Long. "If layoffs worsen this summer, it will heighten fears of a recession and consumer spending pullback."
"We still think the primary driver for market direction and to break out to all-time highs would be some resolution for tariffs and how they interlink with the budget and the Fed. And we see a lot of headlines about negotiations or pauses or frameworks, but we still haven't seen a single signed trade deal between the U.S. and its trade partners," said Tom Hainlin, senior investment strategist at U.S. Bank Asset Management Group.
In corporate news, Boeing led Dow and S&P 500 decliners, dropping 4.79 percent after an Air India 787-8 crash. Suppliers GE Aerospace and Spirit AeroSystems also slid.
Technology stocks saw mixed performance. Microsoft rose 1.32 percent, while Nvidia and Broadcom each added more than 1 percent. Apple edged higher, but Alphabet, Meta Platforms, and Tesla slipped. Tesla's 2.23 percent dip came after a four-day winning streak, during which it clawed back losses from last week's Musk-Trump controversy.
The day's standout performer was Oracle, which soared 13.31 percent to a record high. The company topped quarterly earnings estimates and projected strong revenue growth, driven by robust demand for cloud and AI infrastructure services.
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- Malaysia Sun
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HONG KONG, June 13 (Xinhua) -- During the 46th Association of Southeast Asian Nations (ASEAN) Summit concluded last month in Malaysia, leaders of the 10-member bloc agreed to expand and strengthen regional payment connectivity and promote local currency settlement (LCS). Adopted by the 46th ASEAN Summit, the ASEAN Economic Community Strategic Plan 2026-2030 pledged that ASEAN will "promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks, and to lower transaction costs associated with cross-border payments." FAST STEPS FORWARD In 2021, Thailand and Singapore linked their fast payment systems, a pioneering move allowing people to make real-time, low-cost mobile payments using just the recipient's phone number. In 2023, ASEAN leaders adopted the declaration on advancing regional payment connectivity and promoting local currency transactions, eyeing leveraging local currencies for cross-border payments and establishing a task force to develop an ASEAN local currency transaction framework. Since then, progress by 2025 has been both significant and tangible, particularly through the Regional Payment Connectivity (RPC) initiative, said Tasawan Khao-uppatum, a senior researcher at Kasikorn Research Center in Thailand. The RPC has rapidly expanded from five founding central banks in 2022 to nine ASEAN members by 2025, and it aims to build seamless regional payment systems through cross-border QR code payments, especially for tourism and retail, and account-to-account transfers that enhance financial inclusion, particularly for small- and medium-sized enterprises (SMEs), Tasawan said. Now, many national systems have already been linked, including Thailand's PromptPay, Indonesia's QRIS, Singapore's PayNow, Malaysia's DuitNow, and full ASEAN-wide interoperability is expected by the end of 2025, according to the expert. "In practice, Thai consumers can now use QR code payments abroad in countries such as Japan, Cambodia, Vietnam, Malaysia, Indonesia, Singapore and some other places. Additionally, cross-border transfers with Singapore can now be done using mobile phone numbers." ENHANCE REGIONAL INTEGRATION As intra-regional trade is rapidly growing, promoting LCS through the QR code-based payment systems simplifies transactions for tourists, expatriates and small businesses, promotes financial inclusion, and boosts local economic development. SMEs can use the system to conduct international trade with lower transaction costs. In ASEAN, the adoption rate of digital payments, especially QR code payments, has grown significantly. Mohammad Faisal, executive director at the Center of Reform on Economics Indonesia, said that for Indonesia, cooperation in the implementation of local currency transactions has started since 2017 with Thailand and then followed by several other countries including Malaysia, Singapore, Japan, South Korea, and China. Faster and more interoperable payment systems support seamless trade, investment, and tourism flows within the ASEAN bloc, said Tasawan, adding that in 2024, 25 percent of Thailand's exports were settled in local currency Thai baht, up from 14 percent in 2010. "For instance, the growth of cross-border QR payment systems makes it easier for Thai tourists to spend abroad, particularly within ASEAN. The number of Thai travelers to ASEAN countries increased from 4.5 million in 2013 to 6.7 million in 2023. Likewise, the number of ASEAN tourists entering Thailand rose from 7.38 million in 2014 to 10.6 million in 2024," said Tasawan. Vice President of National Chamber of Commerce and Industry of Brunei Darussalam Haji Halim Saim said the LCS will enhance trade and investment as well as economic activities in ASEAN region and boost ties with financial institutions. MITIGATE EXTERNAL RISKS Analysts also believe that ASEAN's push for a framework for trading in local currencies will enhance its resilience -- by promoting financial integration and the use of local currencies, ASEAN aims to avoid the volatility in global financial markets and possible disruptions caused by geopolitical events. Referring to the change of U.S. interest rate in the past years, Faisal said that every policy that comes from the United States related to monetary policy often greatly affects the emerging countries, including ASEAN, because of the large use of the U.S. dollar by ASEAN countries' trade. Therefore, it is necessary to reduce dependency on the U.S. dollar to make the ASEAN currencies more stable. The benefit of building regional payment connectivity for ASEAN is to make the ASEAN currencies more stable, stronger and more resilient against external shocks or changes in the global economy. It can also encourage an increase in intra-ASEAN trade and investment, Faisal added. By settling trade in local currencies, emerging markets aim to reduce their exposure to exchange rate volatility and external monetary shocks stemming from advanced economies' policy shifts, said Tasawan, adding that this trend signals a decentralization of global financial power -- moving away from a reliance on the U.S. dollar and toward a more balanced system where multiple currencies play significant roles regionally and globally. Experts suggest that by decreasing dependence on the U.S. dollar, ASEAN can gain greater control over its economic future and lessen its susceptibility to U.S. monetary policy. The growing trend of emerging markets shifting to local currency settlements in international trade reflects their increasing needs and awareness to have a more stable global economy and a more balanced global economic order, Faisal said.
Malaysia Sun
an hour ago
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ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR, June 13 (Xinhua) -- ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. "ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper ASEAN economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value," he added.
Malaysia Sun
an hour ago
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Malaysia's expanded SST seen having minimal impact on inflation, markets
KUALA LUMPUR, June 13 (Xinhua) -- Malaysia's expanded Sales and Service Tax (SST), set to take effect next month, is expected to have minimal impact on inflation and a neutral effect on markets, economists said, citing exemptions for essential goods and relief measures for businesses. The Malaysian government announced that the expanded SST, effective July 1, aims to strengthen fiscal sustainability. The revised framework includes an increase in the sales tax rate on selected imported and luxury goods, while keeping essential items zero-rated. In addition, the scope of the existing 6 percent service tax will be broadened to cover fee-based financial services, leasing, main contractor construction services, as well as beauty, wellness, and certain private healthcare and education services. Maybank Investment Bank estimated that the changes to the SST framework could add up to 0.25 percentage points to the inflation rate at most, while continuing its project inflation at 2 percent. The bank emphasized that exemptions and cost pass-throughs would play a crucial role in mitigating inflationary effects. CIMB, in a separate note on Tuesday, said the previous service tax hike in March 2024 resulted in a modest 0.1 percentage point increase in services inflation, which quickly eased, indicating limited second-round effects. With external uncertainties, slowing gross domestic product (GDP) growth momentum, and a narrowing output gap, CIMB noted that the inflation outlook does not pose a significant hurdle to potential monetary policy easing. Maybank said the tax changes are likely to have a neutral impact on most sectors, including consumer staples, discretionary goods, construction materials, and agriculture.
