Asia: Markets rise as traders eye possible Trump-Xi talks
[HONG KONG] Asian stocks rallied on Tuesday as investors kept tabs on developments in the China-US trade war amid speculation the countries' leaders will hold talks soon.
After a period of relative calm on the tariff front, Donald Trump at the weekend accused Beijing of violating last month's deal to slash huge tit-for-tat levies and threatened to double tolls on steel and aluminium.
The moves jolted Asian markets on Monday, but hopes that the US president will speak with Chinese counterpart Xi Jinping - possibly this week - has given investors some hope for a positive outcome.
Meanwhile, oil prices extended Monday's surge on a weak dollar and Ukraine's strike on Russian bombers parked deep inside the country that stoked geopolitical concerns as well as stuttering US-Iran nuclear talks.
Trump has expressed confidence that a talk with Xi could ease trade tensions, even after his latest volley against the Asian superpower threatened their weeks-old tariff truce.
'They violated a big part of the agreement we made,' he said on Friday. 'But I'm sure that I'll speak to President Xi, and hopefully we'll work that out.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
It is unclear if Xi is keen on a conversation - the last known call between them was in the days before Trump's inauguration in January - but the US president's economic adviser Kevin Hassett signalled on Sunday that officials were anticipating something this week.
US Treasury Secretary Scott Bessent - who last week warned negotiations with China were 'a bit stalled' - said at the weekend the leaders could speak 'very soon'.
Officials from both sides are set for talks on the sidelines of an Organisation for Economic Co-operation and Development (OECD) ministerial meeting in Paris on Wednesday.
While there has been no movement on the issue, investors took the opportunity on Tuesday to pick up recently sold shares.
Hong Kong gained more than one per cent while Shanghai returned from a long weekend on the front foot.
There were also gains in Tokyo, Sydney, Wellington, Singapore, Taipei and Manila.
Seoul was closed for a presidential election.
Deals queued up?
The advances followed a positive day on Wall Street led by tech giants in the wake of a forecast-beating earnings report from chip titan Nvidia.
Still, National Australia Bank's Rodrigo Catril remained nervous after Trump's latest salvos.
'The lift in tariffs is creating another layer of uncertainty and tension,' he wrote in a commentary.
'European articles suggest the lift in tariffs doesn't bode well for negotiations with the region (and) UK steelmakers call Trump doubling tariffs 'another body blow',' he added.
'The steel and aluminium tariffs also apply to Canada, so they will likely elicit some form of retaliation from there and while US-China trade negotiations are deteriorating due to rare earth, student visas and tech restrictions, steel tariffs will also affect China.'
Separately, US Commerce Secretary Howard Lutnick on Monday voiced optimism for a trade deal with India 'in the not too distant future', adding that he was 'very optimistic'.
And Japanese trade point man Ryosei Akazawa is eyeing another trip to Washington for more negotiations amid speculation of a deal as early as this month.
Also in focus is Trump's signature 'big, beautiful bill' that is headlined by tax cuts slated to add up to US$3 trillion to the nation's debt.
Senators have started weeks of what is certain to be fierce debate over the mammoth policy package, which partially covers an extension of Trump's 2017 tax relief through budget cuts projected to strip health care from millions of low-income Americans.
Oil prices extended Monday's surge that saw West Texas Intermediate briefly jump five percent on concerns about an escalation of the Russia-Ukraine conflict and suggestions Washington could hit Moscow with stricter sanctions.
That compounded news that the Opec+ producers' grouping had agreed a smaller-than-expected increase in crude production.
Traders were also monitoring tensions over Iran's nuclear programme after Tehran said it would not accept an agreement that deprives it of what it calls 'peaceful activities'. AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
29 minutes ago
- Straits Times
Hundreds of Venezuelans deported to El Salvador have right to challenge detention, judge rules
FILE PHOTO: U.S. military personnel escort an alleged gang member who was deported by the U.S. along with others the U.S. alleges are members of the Venezuelan gang Tren de Aragua and the MS-13 gang to be imprisoned in the Terrorism Confinement Center (CECOT) prison, at the El Salvador International Airport in San Luis Talpa, El Salvador April 12, 2025. Secretaria de Prensa de la Presidencia/Handout via REUTERS/File Photo Hundreds of Venezuelans deported to El Salvador have right to challenge detention, judge rules NEW YORK - Hundreds of Venezuelans deported from the United States to El Salvador under an 18th century wartime law must be given the chance to challenge their detentions, and the Trump administration must facilitate the legal challenges, a U.S. judge ruled on Wednesday. U.S. District Judge James Boasberg gave the Trump administration one week to detail how it would facilitate the deportees' filing of legal challenges. His ruling stopped short of expressly ordering the Trump administration to bring the hundreds of Venezuelan migrants currently being held in a mega-prison in El Salvador back to the United States. In his ruling, Boasberg wrote that the individuals were deported without adequate notice or the right to contest their removals. 'That process - which was improperly withheld - must now be afforded to them,' Boasberg wrote. The Venezuelans were deported in March after President Donald Trump, a Republican, invoked the 1798 Alien Enemies Act to swiftly deport alleged members of the Tren de Aragua gang without going through normal immigration procedures. Boasberg's Wednesday ruling is the first to address the fate of these detainees. Neither the White House nor the Justice Department immediately responded to requests for comment. Family members of many of the Venezuelans deported on March 15 and their lawyers deny any gang ties, and say they were not given a chance to contest the Trump administration's allegations in court. The U.S. Supreme Court in April held that migrants must be allowed to challenge their removals under the Alien Enemies Act. Courts around the country have since barred the Trump administration from further deportations of alleged Tren de Aragua members under the law. But those rulings only applied to Venezuelans still in the U.S. facing possible deportation under the law. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
Putin tells Trump talks with Ukraine useful despite what he called attempts to disrupt them
FILE PHOTO: Daily newspapers with covers, dedicated to the recent phone call of Russian President Vladimir Putin and U.S. President Donald Trump, are laid out at a newsstand in a street in Moscow, Russia, February 13, 2025. REUTERS/Maxim Shemetov/Illustration/File Photo Putin tells Trump talks with Ukraine useful despite what he called attempts to disrupt them MOSCOW - Kremlin leader Vladimir Putin told U.S. President Donald Trump on Wednesday that a second round of peace talks between Russia and Ukraine was useful despite Kyiv's attempt to disrupt them by staging attacks Putin considered terrorism, a Kremlin foreign policy aide said. Yuri Ushakov also said that the two presidents discussed other international issues, particularly the Middle East conflict and how Russia could help deal with Iran and its nuclear programme. Ushakov told reporters after Putin and Trump spoke by telephone for more than an hour that Ukrainian attacks on bridges and other civilian infrastructure were an attempt to torpedo the negotiations. "It was stressed that Ukraine tried to disrupt these talks by carrying out, on the direct orders of the Kyiv regime, deliberate attacks on civilian targets, on peaceful civilians," Ushakov told reporters. "The Kyiv regime has in essence degenerated into a terrorist organisation. The Russian side did not give in to provocations ... Let me stress that our president described in detail the content of the talks and that these talks on the whole were useful." Memorandums outlining peace plans were exchanged and will be analysed, Ushakov said, "and we hope that afterwards the two sides will be able to continue their talks." He said the issue of a possible meeting between Putin and Ukrainian President Volodymyr Zelenskiy had not been raised at this stage. But talks with Ukraine were possible despite what Moscow denounced as terrorist acts as "on the whole they are vital to achieve some sort of settlement." Ushakov said Trump "listened intently" to Putin's description of events in Ukraine. "I think it was very useful for Trump to hear our assessment of what has been happening." Both presidents, he said, described their exchanges as "positive and very productive. Both President Trump and our president confirmed their readiness to remain in contact." On Iran, Ushakov said the United States believed Russia could play an important role in helping with the difficulties over Tehran's nuclear programme. "Donald Trump believes that Russian assistance is possible and vital and he would be grateful if Russia could help in an appropriate fashion by working with the Iranian side," he said. The two presidents, he said, also discussed the Middle East and tensions between India and Pakistan. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Richport Technology continues to polish its surface treatment offerings
[SINGAPORE] In 1995, Teo Sang Kiam set up Richport Technology to provide supporting services for the construction industry, in which her husband had an existing business. What began as a small electroplating service provider has since become something much greater. In 1998, during the Asian financial crisis, the construction industry was badly hit as projects were put on hold. This was the catalyst for Richport to shift into precision engineering. This decision to pivot redefined the company's future and set it on a path of innovation. Richport is now a leading surface treatment provider, specialising in high-value components for high-tech industries such as semiconductors, life sciences and medical devices. Over the years, Richport secured approvals for various cutting-edge electroplating techniques. With these added capabilities, it has been able to position itself as a one-stop provider for surface treatment. Apart from obtaining ISO certifications, it also secured key approvals from major semiconductor manufacturers. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Richport's growth has been driven by its client-centric approach. By investing in research and co-developing solutions with clients, Richport could address their unique and often complex needs, solidifying its role as a trusted partner. Client needs also lay behind Richport's decision to make its first overseas foray into Penang, Malaysia, in 2018. The company saw a gap in the semiconductor supply chain between Penang and Singapore. Customers were incurring extra costs sending equipment to Singapore for electroplating, and then back to Penang. Richport successfully replicated its production systems in Penang, trained new staff and secured approvals from key original equipment manufacturers (OEM) – cementing a place in the region's high-tech manufacturing supply chain. It intends to expand and strengthen its regional role: supporting emerging supply chains in India, Thailand and Vietnam, as well as serving established supply chains in Japan, Taiwan and South Korea. With the services it offers, it aims to be a vital enabler for regional fabricators. Talent and innovation Richport's business is founded on three pillars: technical mastery, quality assurance and a highly skilled workforce. The company's technical capabilities blend traditional engineering and cutting-edge advancements, with a commitment to research and development. For quality assurance, it uses smart sensors and statistical process controls to maintain the highest industry standards, even as production scales up. Its innovation is also fuelled by partnerships, both with clients and other organisations. Richport works closely with its clients' design engineers and R&D teams, to ensure that its offerings meet evolving industry standards and specific client needs. Such collaboration also allows the company to address critical supply chain gaps. By embedding itself in its clients' supply chains, Richport adds value and fosters long-term relationships. To stay at the leading edge, Richport partners educational and research institutions, such as the Singapore Institute of Manufacturing Technology and overseas universities. It also collaborated with Temasek Polytechnic to use robotic arms to automate polishing processes. Advanced programming was required to ensure the arms could achieve the required level of polishing, a skill that usually requires human expertise. But of course, humans remain key to the business. As Richport director Chew Kian Zi put it: 'Good processes and quality are ultimately created and run by people.' The company invests not just in technology but also its workforce, recognising the importance of skilled personnel. It provides process-specific and cross-functional training, to ensure operational flexibility and innovation at every level. Strategic shifts to stay competitive Richport's adaptability has helped it tackle challenges and stay competitive. During the Covid-19 pandemic, Richport had to remotely manage its plant in Malaysia, which at that time had only been operational for two years. Despite the difficulties, the Malaysia team – comprising both new and experienced employees – managed to adapt quickly. In fact, the team grew from 30 to nearly 100 employees during the pandemic. At the strategic level, Richport recognised the need to shift towards higher-value, more specialised products, to stay competitive against high-volume production hubs such as China and India. To support this strategy of moving up the value chain, Richport embarked on a two-pronged expansion in Singapore and Penang. A new 120,000-square-foot facility allows it to scale up its operations while also enhancing its capabilities, particularly in advanced precision cleaning for semiconductor equipment manufacturers. The new facility, which aligns with its OEM growth plans in Singapore and Malaysia, uses the latest Industry 4.0 technologies such as robotics, real-time data analytics and process automation. Another way that Richport is future-oriented is in its commitment to sustainable practices and reducing its environmental footprint. In water recycling projects with the national water agency PUB, Richport partners vendors to better control the release of chemicals into sewage systems. The company is also moving towards the use of solar power. With strategic investments in advanced capabilities and a customer-centric approach, Richport aims to keep distinguishing itself as a reliable and innovative partner in the surface treatment industry. This series is part of the Enterprise 50 Educational Project between the E50 partners and the NUS Business School. Richport Technology was among the winners in 2023. The annual E50 ranking is co-organised by The Business Times and KPMG, sponsored by OCBC Bank, and supported by Enterprise Singapore, Singapore Exchange and Singapore Business Federation.
