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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
an hour ago
- First Post
'Willing to enhance dialogue': China on lifting export curbs on rare earth metals to India
China on Thursday signaled openness to talks with India over its export restrictions on rare earth materials, saying it is willing to strengthen dialogue and cooperation with relevant countries to help maintain stable industrial supply chains read more China on Thursday signaled openness to talks with India over its export restrictions on rare earth materials, saying it is willing to strengthen dialogue and cooperation with relevant countries to help maintain stable industrial supply chains. Beijing's recent curbs on the export of critical metals have disrupted manufacturing sectors globally, including in India, impacting industries such as automotive and semiconductor production. 'We are willing to enhance dialogue and cooperation with relevant countries and regions to jointly keep the stability of global industrial and supply chains,' Chinese Foreign Ministry spokesperson Lin Jian told PTI when asked whether China plans to lift its export restrictions on rare earth metals to India, especially as it has started approving export licences to the US and the EU. While offering no direct assurance, Lin reiterated that specific details should be addressed by the relevant Chinese authorities. STORY CONTINUES BELOW THIS AD Meanwhile, India's Ministry of External Affairs (MEA) said it is in contact with Chinese counterparts to ensure greater predictability in the supply chain, in line with international trade norms. 'We have been in touch with the Chinese side, the Chinese Ministry of Commerce and general administration of customs in early April, as you would be aware, had announced the decision to implement export controls on certain rare earth-related items. 'We are in touch with the Chinese side, both here in Delhi as also in Beijing, to bring predictability in supply chain for trade, consistent with international practices,' MEA spokesperson Randhir Jaiswal told reporters in response to a query on Thursday. On June 16, Indian Ambassador Pradeep Kumar Rawat met with Chinese Vice Minister Sun Weidong to discuss a range of bilateral issues, including shared concerns, PTI quoted a statement from China's foreign ministry. The meeting comes amid growing alarm in India over shortages of rare earth metals, crucial for the automotive, electronics, and renewable energy sectors. Reports from India have highlighted industry-wide disruptions stemming from China's recent export restrictions on these critical materials. China, which holds a dominant position in the global rare earths market, has recently begun selectively clearing export licences, particularly to the United States, following two days of high-level trade talks in London. The move came as both nations agreed to ease tensions, with US President Donald Trump declaring on Wednesday that a trade deal with China 'is done.' STORY CONTINUES BELOW THIS AD Rare earth elements, comprising 17 metallic elements, are vital for the production of magnets, batteries, and high-tech devices. While these metals are found in multiple countries, their extraction is expensive and environmentally hazardous, often leaving China as the preferred global supplier. According to the International Energy Agency, China accounts for 61% of global rare earth mining and 92% of processing output. Although China has opened dialogue with the US and EU to address concerns over supply shortages, it has yet to publicly respond to India's request for similar talks. In response, India's Ministry of External Affairs said it is engaging with the Chinese side to ensure stability and predictability in trade supply chains. Meanwhile, an Indian industry delegation, comprising representatives from the auto sector, is reportedly preparing to visit China to secure rare earth magnet imports for domestic manufacturers, sources in New Delhi said. With inputs from agencies
Time of India
an hour ago
- Time of India
JD Vance quietly visits Rupert Murdoch's ranch amid WSJ's ongoing jabs at Donald Trump and his policies
JD Vance secretly visited Rupert Murdoch's big ranch in Montana on Tuesday. He met Rupert Murdoch, his son Lachlan Murdoch the head of News Corp and Fox News, and some other Fox News execs. The ranch is huge, 340,000 acres, near Yellowstone National Park, as per reports. Vance did not tell anyone that he was coming, so people didn't know about his plans. His plane landed in Butte, Montana, and he left by car in a motorcade heading to the Dillon area. The plane flew away again after dark, according to a report by the Associated Press. After the meeting, Vance and his wife, Usha, went for a hike on the land. That ranch is called Beaverhead Ranch. Murdoch and his ex-wife Jerry Hall bought it in 2021 for $200 million from the Koch family. The ranch is 50 miles long, with a 28-mile trout creek, according to the report by Politico. It's not clear what the meeting was about, and no one from Vance's team or Murdoch's companies has commented yet. Vance had to fly 2,000 miles back to Washington, D.C., to have lunch with Trump on Wednesday. Angry Trump Trump has been upset with the Wall Street Journal, which is owned by Murdoch. He called it a 'rotten newspaper' and said it has 'gone to hell.' He also said the Journal supports China and is bad for America. Trump got upset because the Journal's editorial board wrote critical stuff about him and his policies, as per the report by Daily Beast. Live Events A Wall Street Journal opinion piece said China is winning the trade war against Trump. Another one last week slammed the Trump admin for trying to block foreign students from Harvard, saying Vance's stance was a 'false choice.' One day before that, the Journal made fun of Trump's fight with Elon Musk, saying it was 'entertaining political theater,' but mostly for Democrats. On Wednesday, the Journal published a bold headline, 'Trump Has No China Trade Strategy.' Vance is Republican National Committee's finance chair, so he's working on getting money for the 2026 midterms. The Murdoch family net worth of over $23 billion. FAQs Q1. Why did JD Vance go to Rupert Murdoch's ranch? No one has said why he visited, and the reason is still not clear. Q2. Why is Donald Trump angry with the Wall Street Journal? Because the paper wrote opinion pieces that criticized him and his policies.
The Hindu
an hour ago
- The Hindu
Trump's tariffs and a U.S.-India trade agreement
At the end of the day, it was not the big fight between nations, but a case brought by five small U.S. businesses that presented the biggest challenge yet, to U.S. President Donald Trump's sweeping tariffs. Tariffs are the substance of laws and regulations formulated after highly rigorous trade negotiations. The binding of tariffs through schedules of commitments in trade agreements, offers much needed certainty and predictability to businesses trading across borders. Which is why Mr. Trump's sweeping tariffs — 10% to 135%, over 100 countries worldwide — were a stunning repudiation of the rules of trade. That it also extended to the barren Arctic marine reserves of Heard and McDonald Islands, uninhabited by humans, just highlighted the irony of a bizarre executive order. This sweeping executive action also upended the fundamental principle of separation of powers between the three branches of government — the legislature, the executive and the judiciary — which lie at the heart of any democratic constitutional framework. That such an exercise of executive authority could happen without any checks and balances in the U.S., widely regarded as among the modern world's oldest democracies with a strong constitutional framework, was another point of reckoning. Five small and mid-sized U.S. businesses, dealing with wines, plastics, bicycles, musical circuits, and fishing equipment, took on the U.S. administration, and challenged the presidential executive order at the U.S. Court of International Trade (U.S. CIT), stating that the tariffs were unlawfully harming their operations and economic viability. A closer look at 'trade deficits' The Trump administration argued that the tariffs were necessary to address the 'national emergency' created by U.S.' trade deficits with all countries worldwide. Trade deficit occurs when imports exceed exports. A 'deficit' is not necessarily bad for a country's economic health. It only demonstrates the availability of consumer wealth to purchase imported goods. In any event, the U.S. administration, bizarrely, did not account for U.S. export of services in its calculation. For example, the U.S. has cited the $44.4 billion trade deficit with India. This, however, does not consider trade in services (which includes digital services, financial services, education) and arms trade, after considering which, the Global Trade Research Initiative has estimated that the U.S. actually runs a $35 billion-$40 billion overall surplus with India. The U.S. CIT, in its judgment dated May 28, 2025, ruled that the worldwide and retaliatory tariffs exceeded any authority under law. The court cautioned against the blatant and overarching use of 'national emergency' powers by the President. It noted that the mere incantation of 'national emergency' cannot sound the 'death-knell of the Constitution', and, additionally, cannot enable the President to rewrite tariff commitments in international agreements. The strong and powerful ruling, so far, has had little practical impact, having been stayed the very next day by a U.S. appeals court. The tariffs and the threat of tariffs, therefore, continue, and so does the pressure to conclude a trade deal with the U.S. The Trump administration had in fact, argued before the U.S. CIT that the enhanced tariffs provided it leverage in trade negotiations — an argument which the CIT ruled does not in any manner mitigate its legal infirmity. More egregious U.S. executive actions are promised as part of the Trump One Big Beautiful Bill (OBBB) — a proposed omnibus law which would reportedly also grant the executive immunity from enforcement of judicial orders. Where India stands Where does all this really leave India? The governments of both countries have been indicating an early conclusion of a trade agreement, before the U.S. threat of the July 8 deadline. Despite ongoing negotiations, the U.S. has enhanced its existing punitive tariffs of 25% on steel and 10% on aluminium imports (in force since Mr. Trump's first term), to 50% on both. Pursuant to complaints initiated at the World Trade Organization by Switzerland, Norway, China and Türkiye, WTO panels had ruled (in 2022) that the tariffs imposed during Mr. Trump's first term, do not meet the proposed justification of national security. India too had initiated a WTO dispute, but withdrew this on the basis of a 'mutually agreed solution' with the U.S. in 2023. That mutual solution clearly did not prevent Trump administration extending the new 50% tariffs on steel and aluminium to India as well. India's contemplated retaliation at the WTO has been resisted by the U.S. A purported target of the Trump administration's ire is China's rise. The argument that the U.S.-China trade impasse presents a possible strategic advantage for India, however, is made uncertain by two recent developments: the U.S. and China's truce, pausing their retaliatory tariffs against each other and working towards a negotiated solution; and, more importantly, the U.S. administration's threats to impose tariffs on Apple's products, should it manufacture in India. Mr. Trump's transactional approach also indicates that there is no guarantee that the U.S. will intervene in India's favour should there be a military standoff with China. The path ahead In any trade agreement with the U.S., therefore, a careful balancing of India's interests is paramount. Any deal would need to ensure the removal of all additional tariffs on India's exports, allay concerns about retaliatory tariffs on U.S. investments, such as that from Apple in India, and ensure that the proposed OBBB Act's 3.5% tax on remittances sent from the U.S. does not apply to remittances by Indian citizens. India should also seek assurance that there would be no retaliation against India's digital services taxes. A long-standing concern for India is also the fears and backlash against H-1B visas, used widely by tech companies for their Indian employees. It is critical for a trade deal to address the issue of visas required for services trade. It is equally important for both sides to iron out the delivery of cross-border trade in services, which includes aspects relating to data flows and their regulation. Above all, any trade agreement that India negotiates with the U.S. needs to be fully aligned with India's commitments under the WTO. The U.S. disregard for multilateral institutions, notwithstanding, WTO's multilateral set of rules is the only real safeguard in an uncertain world, and India needs to do much more to preserve its foundations, as committed during its G-20 presidency. Finally, India should have the ability to stay out of any sub-optimal deal. Mr. Trump's tariffs, while painful, are likely to have a short lifespan with the biggest challenge emerging from within the U.S. itself. R.V. Anuradha is a Partner at Clarus Law Associates, New Delhi. The views expressed are personal
