logo
Asian shares climb, dollar eases ahead of US-China talks

Asian shares climb, dollar eases ahead of US-China talks

TOKYO -Shares jumped and the dollar pared recent gains on Monday as Asian markets reacted to better-than-expected U.S. jobs data ahead of talks in London aimed at mending a trade rift between the United States and China.
Wall Street stocks had closed sharply higher on Friday after the jobs data eased concerns about damage to the world's biggest economy from President Donald Trump's unpredictable tariff regime.
On Monday, MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.7%, with Australia's markets shut for a holiday. Japan's Nikkei stock index rose 0.9%.
But pan-region Euro Stoxx 50 futures pointed to a decline while U.S. stock futures, the S&P 500 e-minis, slid 0.2%.
Sentiment was weighed down by a standoff in Los Angeles that led to Trump calling in the California National Guard to quell demonstrations over his immigration policies.
The dollar slid 0.3% against the yen to 144.46, trimming its 0.9% jump on Friday. The European single currency was up 0.2% on the day at $1.1417. Sterling traded at $1.3553, up 0.3%.
Top trade representatives from Washington and Beijing are due to meet for talks expected to focus on critical minerals, whose production is dominated by China. The discussions follow a rare call last week between Trump and Chinese President Xi Jinping.
"Trade policy will remain the big macro uncertainty," said Kyle Rodda, a senior financial market analyst at Capital.com. "Signs of further momentum in talks could give the markets fresh boost to kick-off the week."
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in talks with China, Trump said in a social media post. China's foreign ministry said Vice Premier He Lifeng will be in Britain for the first meeting of the China-U.S. economic and trade consultation mechanism.
CHINA EXPORT GROWTH SLOWS
U.S. job growth slowed in May by less than had been forecast, data showed on Friday. But dour economic readings from China added to evidence the trade war is taking a toll.
China's export growth slowed to a three-month low in May, while factory-gate deflation deepened to its worst level in two years, separate reports showed on Monday.
Even so, trade optimism lifted Chinese shares. Hong Kong's Hang Seng Index rose 0.8%, touching the 24,000-point level for the first time since March 21. China's blue-chip CSI300 Index added 0.2%.
Attention now turns to U.S. inflation data on Wednesday that will feed into expectations for the timing of any rate cuts by the Federal Reserve. The Fed is in a blackout period ahead of its June 18 policy decision.
Markets are facing "mixed fortunes" on Monday as they balance optimism over trade and the U.S. economy against the potential for social unrest in California, said Jeff Ng, Head of Asia Macro Strategy at SMBC.
"The trade talks, if there's any progress, may help as well, but markets may not have priced in a lot of breakthrough for that," Ng said. "In the meantime, we are also quite cognizant that in the U.S. there are protests in L.A. and the National Guard is also being sent in, so we have to be on the watch for event risk as well."
Gold was little changed at $3,311.65 per ounce after a 1.3% slide on Friday. U.S. crude was steady at $64.54 a barrel following a 1.9% surge late last week.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China's rare earth ban to have short term hit; seeking alternatives: Goyal
China's rare earth ban to have short term hit; seeking alternatives: Goyal

Business Standard

time17 minutes ago

  • Business Standard

China's rare earth ban to have short term hit; seeking alternatives: Goyal

Commerce and Industry Minister Piyush Goyal on Monday said China's restrictions on the export of rare earth elements and related magnets will have short-term impacts on the domestic automotive and white goods sectors. He further added that the government and the industry are working actively on solutions, including diplomatic engagement, to resolve the matter. Goyal is on an official visit to Switzerland to meet Swiss leaders and businesses and explore new avenues under the recently signed Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA). "Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, particularly, and several white gods and other sectors Some companies have put in their applications, and we hope that good sense should prevail and they will get their approvals for permanent magnets," he told reporters. A wake-up call: Goyal Goyal further added that the companies are also looking at Indian Rare Earths Limited (IREL) by providing the necessary materials to be able to develop, speed up the development of domestic products. "In a way, it's a wake-up call for all those who have become over-reliant on certain geographies. It's a wake up call for the whole world that you need trusted partners in your supply chain," Goyal said. When questioned about the possibility of introducing a production-linked incentive (PLI) scheme for the sector, the minister said that he has engaged with the automobile companies, who remain "very" confident about resolving the issue. "They are in dialogue with our innovators, startups and they say they will take care of any funding requirement or pricing correction that may need to encourage faster roll out and growth of this sector," Goyal said. What's the rare earth magnet issue? In response to increased tariffs from the United States under President Donald Trump, China introduced new export controls on seven key rare earth elements and associated magnets starting April 4. The elements affected—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—are essential in sectors such as defence, energy, and automotive technology. Under the new rules, Chinese firms must now obtain special defence-related licences before they can export these materials. China is home to about half of the world's rare earth reserves and is responsible for 70 per cent of global extraction and more than 90 per cent of processing. While the United States, Brazil, and Australia also have significant reserves, India's share stands at around 7 to 8 per cent. However, Australia, Brazil, and the US produce very little in terms of rare earth magnets. Hong Kong contributes 10 to 15 per cent of rare earth ore extraction, whereas Japan and South Korea account for 2 to 4 per cent. Vietnam and Malaysia handle 7 to 8 per cent of processing, with the majority of processing activities still concentrated in China. According to media reports, global automakers have expressed concerns over potential supply-chain disruptions caused by the export ban of rare earth magnets. In Japan, Suzuki Motor had to halt production of its Swift model due to the shortage. Meanwhile, India's auto industry group SIAM has reportedly warned the government of a complete production halt as early as late May or early June. (With inputs from PTI.)

Trump Breaks Silence On Allegations Of Elon Musk Drug Using Drugs In White House: 'I Hope Not'
Trump Breaks Silence On Allegations Of Elon Musk Drug Using Drugs In White House: 'I Hope Not'

News18

time19 minutes ago

  • News18

Trump Breaks Silence On Allegations Of Elon Musk Drug Using Drugs In White House: 'I Hope Not'

Last Updated: Trump expressed uncertainty but hoped Musk wasn't using illicit substances while handling DOGE. US President Donald Trump has broken his silence on claims of his one-time First Friend, Elon Musk, using drugs while leading the administration's initiative to slash government spending as Department of Government Efficiency (DOGE) chief. The Republican said he's not sure if the tech billionaire was using illicit substances in the White House, but 'hopes" he never did. 'I really don't know. I don't think so. I hope not," The president told reporters on Monday when asked about the reports saying Musk used so much ketamine, a powerful anaesthetic, that he developed bladder problems. Trump further stressed he had a 'good relationship" with the business tycoon who donated about $275 million to help him win the presidency, and wished him well. 'I just wish him well. Very well, actually," the 78-year-old leader said. Despite their public fallout last week, this is the most Trump has said about 53-year-old Musk's alleged use of medical as well as recreational drugs. According to a New York Times report, the business tycoon used ketamine, ecstasy and psychedelic mushrooms while campaigning with Trump in 2024. Quoting people familiar with the matter, the report said Musk was using drugs far more intensely than previously known during the past year as he became Trump's closest ally. He was reportedly travelling with a daily medication box that held about 20 pills, including ones with the markings of the stimulant Adderall. The SpaceX CEO earlier admitted to taking ketamine. He said he was prescribed the drug to treat a 'negative frame of mind" and he also said that he benefited in his work by taking these drugs. First Published: June 10, 2025, 16:47 IST

US Stock markets today: Wall Street futures inched up before opening bell, US-China trade talks enter 2nd day
US Stock markets today: Wall Street futures inched up before opening bell, US-China trade talks enter 2nd day

Time of India

time24 minutes ago

  • Time of India

US Stock markets today: Wall Street futures inched up before opening bell, US-China trade talks enter 2nd day

Investors are watching China-US trade talks in London that could have a huge impact on the global economy as early trading on Wall Street was mostly flat. Futures for the S&P 500 and the Nasdaq each inched up 0.1% before the bell Tuesday, while futures for the Dow Jones Industrial Average were essentially flat. A second day of talks was planned after US and Chinese officials met in London on Monday for negotiations over various issues, AP reported. The hope is that they can eventually reach a deal to reduce painfully high tariffs. Most of the tariff hikes imposed since US President Donald Trump escalated his trade war are paused to allow trade in everything from tiny tech gadgets to enormous machinery to continue. The S&P 500 has rallied after dropping roughly 20% from its record two months ago when Trump shocked financial markets with wide-ranging tariff threats during what he called 'Liberation Day.' Still, confusion over the potential ramifications of Trump's sweeping tariff threats have caused a host of companies to lower or altogether pull their financial guidance. That trend continued Tuesday with Designer Brands, the owner of DSW retail shoe outlets. CEO Doug Howe blamed the company's slow start to the year on an 'unpredictable macro environment and deteriorating consumer sentiment.' Designer Brands shares fell nearly 7.5% before the bell Tuesday after the company — which also owns the Keds and Hush Puppies brands — posted a much wider loss than analysts were expecting. Tesla rose early Tuesday, a day after it recovered a decent chunk of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk's relationship with Trump imploded, but shares were up 2.3% in premarket after climbing 4.6% Monday. McDonalds dipped 1.4% after its stock was downgraded by Morgan Stanley, which cited 'structural pressures' on the fast food sector, most notably cash-strapped lower income consumers. In Europe at midday, Germany's DAX lost 0.3%, Britain's FTSE 100 gained 0.5% and the CAC 40 in Paris was unchanged. In Asian trading, Tokyo's Nikkei 225 gained 0.3% to 38,211.51, yielding most of its earlier gains, while the Kospi in South Korea rose 0.6% to 2,871.85. Hong Kong's Hang Seng reversed an early advance, slipping 0.1% to 24,162.87. The Shanghai Composite index dropped 0.4% to 3,384.82. There was no fresh news on the US-China trade talks, but investors appeared to grow more nervous as the day wore on. 'Chinese stocks did what they often do when geopolitics starts tightening the noose — they flinched. What began as a calm morning session flipped into a jittery sell-off as traders returned from lunch with a different mood," Stephen Innes of SPI Asset Management said in a commentary. In Taiwan, the Taiex surged 2.1%. Australia's S&P/ASX 200 advanced 0.8% to 8,587.20. India's Sensex was nearly unchanged. US benchmark crude oil picked up 37 cents to $65.66 per barrel. Brent crude, the international standard, was up 36 cents at $67.40. The dollar fell to 144.53 Japanese yen from 144.61 yen. The euro ticked up to $1.1430 from $1.1421. In the bond market, the yield on the 10-year Treasury eased to 4.45% from 4.48% late Monday. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store