
Asian Markets Struggle Amid US Economic Concerns And Dollar Weakness
Asian stock markets faced a challenging session on Tuesday, struggling to maintain their ground after US markets were rattled by concerns over President Donald Trump's attacks on the Federal Reserve and a continued sell-off in US assets. Wall Street saw a steep decline of around 2.5 per cent on Monday, with the dollar falling to three-year lows. The uncertainty surrounding the independence of the Federal Reserve weighed heavily on Treasuries.
Despite the turmoil in the US, the losses in Asia were relatively limited, sparking discussions about the potential reallocation of funds to the region's equities. However, the ongoing concerns about the economic impact of tariffs remained a significant drag on the markets.
'The 'sell America' trade was in full flight,' said Tapas Strickland, head of market economics at NAB. He added that the President's vocal criticisms of Fed Chair Jerome Powell, particularly his call for rate cuts, underscored a loss of US exceptionalism and raised policy risks for investors. Strickland pointed out that the political tension was adding to the uncertainty surrounding the US economy.
While the selling pressure eased slightly in Asia, it provided some relief for US stock futures, with S&P 500 futures rising 0.4 per cent and Nasdaq futures up 0.5 per cent. Despite this, the market remained on edge as the earnings season continued, with major companies such as Tesla, Alphabet, Boeing, Northrop Grumman, Lockheed Martin, and 3M set to report their results this week. Tesla had already seen a nearly 6 per cent drop on Monday amid reports of production delays.
In Asia, Japan's Nikkei index dipped by 0.3 per cent, while the MSCI Asia-Pacific index excluding Japan fell by 0.2 per cent. However, Chinese blue-chip stocks held steady. European markets fared worse, with futures for the EUROSTOXX 50, FTSE, and DAX all down around 0.7 per cent amid volatile trading.
The US bond market also reflected growing concerns. Yields on US 10-year notes stood at 4.40 per cent, having climbed due to fears that President Trump could attempt to replace Powell with someone more inclined to cut rates. This, combined with rising inflation driven by Trump's tariffs, further exacerbated the uncertainty. The White House's trade talks, which are ongoing or about to begin, added to the unease, as analysts at JPMorgan noted that the average trade deal takes 18 months to negotiate and 45 months to implement.
The loss of confidence in US assets led to a sharp decline in the dollar, which hit its lowest point since March 2022 against a basket of currencies. The dollar also hit a decade-low against the Swiss franc at 0.8038, while the euro briefly rose above US$1.1500, settling at US$1.1486.
In contrast, the dollar's weakness and a surge in demand for safe-haven assets helped gold reach a new record, surpassing US$3,343 an ounce. On the other hand, oil prices saw a slight recovery, with Brent rising 58 cents to US$66.82 a barrel, and US crude adding 51 cents to US$63.59 per barrel, as concerns about a global economic slowdown met the prospect of increased supply from OPEC.
The markets now face a crucial week ahead, with earnings reports and trade developments likely to provide more clarity on the economic outlook.
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New Straits Times
36 minutes ago
- New Straits Times
Analysts tie Stonepeak's Yinson interest to FPSO boom
KUALA LUMPUR: Stonepeak Partners' interest in Yinson Holdings Bhd may stem from surging global demand for floating production storage and offloading (FPSO) vessels, which, according to Energy Maritime Associates, is projected to top US$88 billion over five years, analysts said. The New York-based infrastructure investor is reportedly in exclusive talks to acquire Yinson, potentially valuing the Malaysian energy infrastructure firm at up to RM9 billion, making it one of the country's largest deals this year. On June 6, reports emerged that Stonepeak is in exclusive discussions to buy out Yinson, citing sources familiar with the matter. The deal involves collaboration with the Lim family, Yinson's founder and largest shareholder, which held a 26.6 per cent stake as of May 30, aiming to take the energy infrastructure firm private. Analysts see the deal as a strategic fit. Stonepeak's focus on infrastructure-backed, cash-generating assets aligns with Yinson's core FPSO business, which includes long-term contracts across Africa, Asia, and South America. The acquisition would also expand Stonepeak's presence in Asia-Pacific energy infrastructure, an analyst told Business Times on condition of anonymity. However, Yinson has clarified that it is not in discussions with any third party in respect of a buyout exercise. Executive chairman Lim Han Weng said the company is currently engaged in exploratory talks with various parties on potential corporate proposals related to its shareholding. "However, given that the discussions are still at an exploratory stage, there is currently no conclusive indication that the discussions would give rise to a corporate proposal involving Yinson," it said in a filing to Bursa Malaysia on Monday. Crown jewel The FPSO business is the crown jewel of the Lim family empire. Yinson, controlled by founder Lim Han Weng and son Lim Chern Yuan, is currently the second-largest FPSO operator globally. "The Lims have built Yinson into a well-oiled money machine. They have transformed Yinson into a highly efficient and profitable operation, making it an attractive takeover candidate," the analyst said. Lim (Chern Yuan) revealed in an April Forbes interview that Yinson plans to bid for three mega-FPSO projects, worth at least US$1.5 billion each in that period. While he did not disclose details of the bid, Maybank Investment Bank analyst Jeremie Yap believed they could be in Ghana, Ivory Coast and Malaysia. Yap wrote in a March research note that given Yinson's track record, it is well positioned to win future projects and could be a preferred choice for the bids. Meanwhile, CIMB Research Sdn Bhd said that the RM9 billion valuation translates to RM3.23 per share, a 38 per cent premium over Yinson's last close of RM2.34 and 10.2 per cent above the research firm's target price of RM2.93. If confirmed, this could pave the way for a privatisation offer, the firm said in a note. Yinson's shares have declined 23 per cent over the past year, partly due to the post-tariff market downturn. Following news of the potential buyout, Yinson's share price jumped 13.8 per cent on June 6, its largest single-day gain since 2019, narrowing year-to-date losses from 33.7 per cent to 11.4 per cent and lifting its market capitalisation to RM6.5 billion. CIMB highlighted that the exclusive negotiations indicate advanced discussions involving the Lim family. Stonepeak's interest aligns with its strategy to invest in infrastructure-based, cash-generating assets with long-term contracts, characteristics exemplified by Yinson's FPSO business. "This deal would also help Stonepeak increase its exposure in Asia Pacific energy infrastructure, where Yinson has already established a solid and growing footprint. However, Yinson has declined to comment, stating that the information remains unverified," CIMB said. Yinson's portfolio includes a solid project backlog valued at US$20.5 billion and eight active FPSO contracts. Its growing footprint in emerging markets, along with energy transition initiatives such as solar and battery storage, supports the premium valuation. Stonepeak would gain deeper access to the Asia-Pacific energy infrastructure sector through this acquisition. CIMB noted that Yinson's FY24 price-to-earnings (P/E.) ratio of 9.5x, though higher than the industry average of 8.2x, is justified by its scale, strong project pipeline, and exposure to energy transition. For comparison, peers SBM Offshore and Modec trade at 4.8x and 11.6x, respectively. Stonepeak is expected to value Yinson's strategic growth in FPSO contracts, especially after Yinson's recent efforts to strengthen its financial position, including raising US$1 billion in January 2025 from a consortium of institutional investors, and growth in its renewable energy segments, CIMB said. The US$1 billion funding round included top investors such as Abu Dhabi Investment Authority, British Columbia Investment Management, and RRJ Capital, supporting both FPSO expansion and the renewable energy portfolio. Despite a 22 per cent drop in net profit to RM752 million for FY2025, due to higher financing costs and lower engineering revenue, CIMB forecasts stronger results ahead, particularly with the Agogo FPSO expected to start production by September. CIMB maintains its Buy rating on Yinson, with a target price of RM2.93 and earnings estimates for FY2026–2028. Potential catalysts for re-rating include contributions from FPSO projects Maria Quiteria, Atlanta, and Agogo, alongside possible asset monetisation and privatisation. Risks remain, including possible delays or cost overruns in FPSO projects and ongoing losses in the green technology segment.


The Star
an hour ago
- The Star
Pentagon deploys 700 Marines to Los Angeles to respond to immigration protests
LOS ANGELES: The Pentagon deployed about 700 Marines to Los Angeles on Monday (June 9) to help National Guard members respond to immigration protests, officials said, as California prepared to sue President Donald Trump over his use of the Guard troops and demonstrators took to the city's streets for a fourth day. The Marines are being deployed from their base at Twentynine Palms in the Southern California desert to protect federal property and personnel, including federal immigration agents, U.S. Northern Command said in a statement. The Marines and National Guard troops are not expected to do law enforcement duties, which are prohibited under the Posse Comitatus Act. Trump has not invoked the Insurrection Act to allow them to do law enforcement. It is not clear if he intends to. Los Angeles Police Chief Jim McDonnell said in a statement Monday afternoon he was confident in the police department's ability to handle large-scale demonstrations and that the Marines' arrival without coordinating with the police department presented a "significant logistical and operational challenge' for them. California Attorney General Rob Bonta announced the planned lawsuit over the use of National Guard troops by telling reporters that Trump had "trampled' the state's sovereignty. "We don't take lightly to the president abusing his authority and unlawfully mobilizing California National Guard troops' Bonta said. He planned to seek a court order declaring Trump's use of the Guard unlawful and asking for a restraining order to halt the deployment. The arrival of the National Guard followed two days of protests that began Friday in downtown Los Angeles after federal immigration authorities arrested more than 40 people that day across the city. The smell of smoke hung in the air downtown Monday, one day after crowds blocked a major freeway and set self-driving cars on fire as police responded with tear gas, rubber bullets and flash-bang grenades. The law enforcement presence was heavy, with police cars from neighboring cities blocking the street in front of the federal detention facility that was a focus of the protests. The clashes unfolded over just a few square blocks in an immense city of some 4 million people, most of whom went about their normal business on peaceful streets. On Monday, thousands flooded the streets around City Hall for a union rally ahead of a hearing for arrested labor leader David Huerta, who was freed a few hours later on a $50,000 bond. Huerta's arrest on Friday while protesting immigration raids has become a rallying cry for people angry over the administration's crackdown. He is the president of the Service Employees International Union California, which represents thousands of the state's janitors, security officers and other workers. Early protests Monday had a calm and even joyful atmosphere at times, with people dancing to live music and buoyed by Huerta's release. Protesters linked hands outside the downtown federal detention center where Huerta was being held, and at times sang in front of a line of police officers, who unsuccessfully asked people to move off the road and onto the sidewalk. Religious leaders joined the protesters, working with organizers at times to deescalate moments of tension. Chanting against a line of National Guard troops with Homeland Security officers behind them surrounding the federal buildings ramped up in the afternoon as people yelled, "Free them all!' and "National Guard go away.' Bonta accused Trump of fanning protesters' anger with his announcement of the deployment, saying he set off Sunday's clashes with law enforcement in downtown Los Angeles. "This was not inevitable,' he said. Trump said Monday that the city would have been "completely obliterated' if he had not deployed the Guard. Later, at a White House event, he added that state leaders "were afraid to do anything.' U.S. officials said about 1,000 National Guard members were in the city under federal orders by midday Monday. The full 2,000 members authorized by the president were expected to be on the ground by the end of the day. The officials spoke on condition of anonymity to discuss the details of military operations. Other protests were taking shape Monday afternoon across LA County, as confirmed reports of federal immigration agents in the cities of Whittier and Huntington Park south of Los Angeles spurred anger from activists. More protests were scheduled for cities across the country. Outside a Los Angeles clothing warehouse, relatives of detained workers demanded at a news conference that their loved ones be released. The family of Jacob Vasquez, 35, who was detained Friday at the warehouse, where he worked, said they had yet to receive any information about him. "Jacob is a family man and the sole breadwinner of his household,' Vasquez's brother, Gabriel, told the crowd. He asked that his last name not be used, fearing being targeted by authorities. On Sunday, many protesters dispersed as evening fell and police declared an unlawful assembly, a precursor to officers moving in and arresting those who refuse to leave. Some of those who stayed threw objects ranging from rocks to electric scooters at police and their vehicles. McDonnell said police officers were "overwhelmed' by the remaining protesters. who included regular agitators who show up at demonstrations to cause trouble. McDonnell said the protests followed a similar pattern for episodes of civil unrest, with things usually ramping up in the second and third days. Several dozen people were arrested throughout the weekend. One was detained Sunday for throwing a Molotov cocktail at police and another for ramming a motorcycle into a line of officers. Newsom urged Trump to rescind the Guard deployment in a letter on Sunday, calling it a "serious breach of state sovereignty.' The governor, who was was in Los Angeles meeting with local law enforcement and officials, also told protesters that they were playing into Trump's plans and would face arrest for violence or property destruction. "Trump wants chaos and he's instigated violence," he said. "Stay peaceful. Stay focused. Don't give him the excuse he's looking for.' The deployment appeared to be the first time in decades that a state's National Guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. Newsom, meanwhile, has repeatedly said that California authorities had the situation under control. He mocked Trump for posting a congratulatory message to the Guard on social media before troops had even arrived in Los Angeles. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. In a directive on Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is "a rebellion or danger of a rebellion against the authority of the Government of the United States.' - AP ___ Sullivan reported from Minneapolis. Associated Press writers Dorany Pineda in Los Angeles, Amy Taxin in Orange County, California, Lolita C. Baldor in Washington and Jake Offenhartz in New York contributed to this report.


Borneo Post
an hour ago
- Borneo Post
Trump deploys Marines as tensions rise over Los Angeles protests
A fourth day of protest was unfolding in Los Angeles triggered by dozens of arrests of what authorities say are illegal migrants and gang members. – AFP photo LOS ANGELES (June 10): US President Donald Trump on Monday ordered active-duty Marines into Los Angeles, vowing those protesting immigration arrests would be 'hit harder' than ever. The extraordinary mobilisation of 700 full-time professional military personnel — who join hundreds of National Guard troops already there — looked likely to further stoke tensions in a city with a huge Latino population. California Governor Gavin Newsom slammed the move as 'deranged.' 'US Marines have served honourably across multiple wars in defence of democracy,' Newsom posted on X. 'They shouldn't be deployed on American soil facing their own countrymen to fulfil the deranged fantasy of a dictatorial President. This is un-American.' The deployment came after demonstrators took over streets in Downtown LA on Sunday, torching cars and looting stores in ugly scenes that saw law enforcement responding with tear gas and rubber bullets. 'The people are causing the problems are professional agitators and insurrectionists,' Trump told reporters in Washington. On social media he said he had deployed National Guard troops 'to deal with the violent, instigated riots' and 'if we had not done so, Los Angeles would have been completely obliterated.' He said protesters spat at troops and if they continued to do so, 'I promise you they will be hit harder than they have ever been hit before. Such disrespect will not be tolerated!' One small businessowner whose property was graffitied was supportive of the strongarm tactics. 'I think it's needed to stop the vandalism,' she told AFP, declining to give her name. 'Everybody has the right to protest, but do it the right way. Don't vandalise or hurt your own town because you're hurting people that are trying to make a living.' Others were horrified. 'They're meant to be protecting us, but instead, they're like, being sent to attack us,' Kelly Diemer, 47, told AFP. 'This is not a democracy anymore.' -'Go home!' – A fourth day of protest was unfolding in Los Angeles triggered by dozens of arrests of what authorities say are illegal migrants and gang members. 'Pigs go home!' demonstrators shouted at National Guardsmen outside a federal detention centre. Others banged on the sides of unmarked vehicles as they passed through police containment lines. A swelling crowd was converging on the center, where Los Angeles Police Department officers were forming containment lines seemingly aimed at separating demonstrators from federal agents. Trump's border czar Tom Homan said Immigration and Customs Enforcement (ICE) was targeting members of cartels in Mexico and Colombia. Many locals painted a different picture. They are 'people who are here earnestly trying to improve their lives (and) deserve a chance and don't deserve to be treated as criminals,' Deborah McCurdy, 64, told AFP at a rally. Overnight, vandals had set fires and smashed windows, adding to the scenes of damage left after five Waymo self-driving cars were torched. Obscene graffiti was daubed over many surfaces. Despite isolated and eye-catching acts of violence, officials and local law enforcement stressed the majority of protesters over the weekend had been peaceful. Schools across Los Angeles were operating normally on Monday, while the rhythms of life in the sprawling city appeared largely unchanged. Mayor Karen Bass told CNN that in contrast to Trump's rhetoric, 'this is isolated to a few streets. This is not citywide civil unrest.' At least 56 people were arrested over two days and five officers suffered minor injuries, Los Angeles Police Department officials said, while about 60 people were arrested in protests in San Francisco. The National Guard is frequently used in natural disasters, and occasionally in civil unrest, but almost always with the consent of local authorities. Trump's deployment of the force — the first over the head of a state governor since 1965 at the height of the civil rights movement — was criticised by Democrats, including Kamala Harris. The former vice president and Trump's opponent in the 2024 election called it 'a dangerous escalation meant to provoke chaos.' The United Nations warned against 'further militariaation' of the situation, in remarks likely to anger the White House. donald trump Los Angeles marines protest