
Stocks rise across Asia on US-China trade truce: Markets wrap
ASIAN stocks followed gains in US equities on optimism the US-China trade truce marks the end to an all-out tariff war.
Shares in Australia and Japan jumped at the open after the S&P 500 closed more than 3% higher. Japan's Topix gained for a 13th day, putting it on track for it longest winning streak in 16 years. A gauge of US-listed Chinese stocks surged 5.4% on Monday in its best session in over two months. The dollar was little changed in Asia after jumping Monday.
The return of risk appetite came as trade negotiators from the world's two biggest economies announced Monday a massive de-escalation in tariffs. In a carefully coordinated joint statement, the US slashed duties on Chinese products to 30% from 145% for a 90-day period, while Beijing dropped its levy on most goods to 10%.
For investors shocked into defensive measures at the height of April's chaos, the rebound in markets has been a mixed blessing. Shorting the dollar, going long stock volatility and piling on bets premised on multiple Federal Reserve interest-rate cuts were among the most popular trades in mid-April. Now, their unwinding may be adding fuel to the bounce-back.
'There's very clearly upside risk for the broader risk asset spectrum now as markets will likely extrapolate a higher likelihood of further deals in the coming weeks,' HSBC Bank strategists including Max Kettner wrote in a note to clients. 'Things could easily turn out a bit bumpier in future trade negotiations — but clearly the US administration has altered its tone such that future episodes of weakness should be used as buying opportunities.'
Diminished expectations of a recession drove the US stock benchmark above President Donald Trump's April 2 'Liberation Day' level. A surge in big tech shares put the Nasdaq 100 back into a bull market just about a month after it plunged 20% from a previous record.
Amid a potential reset in inflation expectations, Treasury yields jumped Monday as traders lowered their Fed wagers to just two rate cuts in 2025. After surging nine basis points Monday, the 10-year yield slipped back two basis points Tuesday.
The reverberations of Trump's trade war are likely to keep affecting global markets in coming months. In Japan, Prime Minister Shigeru Ishiba said Monday that his government won't accept any initial trade agreement with the US that excludes an accord on autos.
In China, there was a sense of relief that the trade negotiations between the two biggest economies had quickly borne fruit. The Hang Seng China Enterprises Index and Hong Kong's benchmark Hang Seng Index both closed the day 3% higher Monday.
'We expect the 'trade optimism' to send China equities higher in the near term, with the Hang Seng Index likely to advance closer to its March peak,' Patrick Pan, equity strategist at Daiwa Capital Markets Hong Kong Ltd., wrote in a note. 'We see tactical trading opportunities for 'tariff-hit industries' like electronics, textile, shipping and electrical equipment.'
Investors who followed Trump's advice on social media in the past month have enjoyed one of the biggest rallies in the S&P 500 under his leadership.
Having slumped on Trump's 'Liberation Day' tariff announcement, the benchmark soared in the month after he said it was 'a great time to buy' on April 9 — hours before he paused some of the harshest levies in a century. He reiterated that on May 8, telling reporters the economic outlook warranted piling into stocks.
Swaps that track upcoming central bank meetings showed just 56 basis points of easing by December, down from near 75 basis points last week. Traders still see the first quarter-point cut in September.
Fed Governor Adriana Kugler said the Trump administration's tariff policies are likely to boost inflation and weigh on economic growth, even with the recently announced reduction in levies on China.
'Trade policies are evolving and are likely to continue shifting, even as recently as this morning,' Kugler said Monday in remarks prepared for an event in Dublin. 'Still, they appear likely to generate significant economic effects even if tariffs stay close to the currently announced levels.' –BLOOMBERG
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Malay Mail
24 minutes ago
- Malay Mail
Musk admits Trump criticisms ‘went too far,' expresses regret after public clash
WASHINGTON, June 11 — Elon Musk, the world's richest person and Donald Trump's former advisor, said today he regretted some of his recent criticisms of the US president, after the pair's public falling-out last week. 'I regret some of my posts about President @realDonaldTrump last week. They went too far,' Musk wrote on his social media platform X. Musk's expression of regret came just days after Trump threatened the tech billionaire with 'serious consequences' if he sought to punish Republicans who vote for a controversial spending bill. Their blistering break-up—largely carried out on social media before a riveted public on Thursday last week—was ignited by Musk's harsh criticism of Trump's so-called 'big, beautiful' spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk—one of the Republican Party's biggest financial backers in last year's presidential election—to fund primary challenges against Republicans who voted for the legislation. 'He'll have to pay very serious consequences if he does that,' Trump, who also branded Musk 'disrespectful,' told NBC News on Saturday, without specifying what those consequences would be. — AFP


Borneo Post
25 minutes ago
- Borneo Post
Dapsy Sarawak urges delay in SST expansion amid ongoing US tariff negotiations
Wong warns that the combined impact of SST-related cost increases and potential US-imposed tariffs could further strain both businesses and consumers financially. KUCHING (June 11): The Democratic Action Party Socialist Youth (Dapsy) Sarawak has urged the federal government to postpone the implementation of the expanded Sales and Services Tax (SST) until ongoing trade discussions with the United States (US) are concluded. Dapsy Sarawak treasurer Wong King Yii said that while he supports the government's broader objective of expanding the tax base to strengthen national revenue and promote long-term economic growth, the short timeframe for implementation presents significant operational challenges. 'Businesses will struggle, particularly in adapting to new compliance and reporting requirements at short notice,' he said in a statement today. Wong warned that the combined impact of SST-related cost increases and potential US-imposed tariffs could further strain both businesses and consumers financially. 'In this context, a more coordinated and deliberate approach is necessary. 'The government should defer the SST expansion until the tariff negotiations are concluded to avoid unnecessary economic pressure on the rakyat,' he said. Wong also called on the government to revise the exemption threshold for lessees that qualify as micro, small, and medium enterprises (MSMEs). He proposed raising the current RM500,000 annual sales threshold to RM1 million to ensure more MSMEs are shielded from immediate cost burdens. 'This adjustment is vital to help MSMEs weather the financial uncertainties that may result from both domestic tax changes and external trade developments,' he said. DAPSY expanded SST US Tariffs Wong King Yii


Borneo Post
25 minutes ago
- Borneo Post
Shipping costs set to rise as IMO carbon fee looms, to affect Malaysia's logistics
This fee could increase to as much as US$380 per tonne, starting in 2028, after the framework is adopted in October 2025 and implemented the following year. — Bernama photo KUCHING (June 11): Shipping costs are expected to rise by 2027 following the International Maritime Organisation's (IMO) decision to impose carbon fees on large vessels, according to analysts at AmInvestment Bank Bhd. The research house in a note on Wednesday said this move could impact Malaysia's trade and logistics sectors. Under the IMO Net Zero Framework voted in by a majority of IMO member states in April this year, ships larger than 5,000 tonnes that emit carbon emissions beyond a stipulated threshold will be required to pay a fee of US$100 per excess tonne of carbon. This fee could increase to as much as US$380 per tonne, starting in 2028, after the framework is adopted in October 2025 and implemented the following year. Malaysia, along with Russia, Saudi Arabia and Thailand, voted against the framework. Meanwhile, the United States withdrew from the talks midway. Countries that supported the agreement include the EU, China and India. 'We think that the carbon fees, which are akin to a tax, would raise shipping costs in 2027F. Currently, we have a 'buy' call on MISC Berhad with a target price of RM8.50 per share,' it said. It noted that shipping will become the first industry to face a global carbon tax. According to the IMO, the sector accounts for about 3 per cent of total global greenhouse gas (GHG) emissions. The framework aims to cut emissions intensity by 4 per cent in 2028 and 30 per cent in 2035 and ultimately achieving net zero emissions by 2050. Meanwhile, fees collected from non-compliant vessels will be channelled into a 'Net Zero Fund'. Researchers estimate that the framework could raise between US$11 billion and US$12 billion annually in its first three years. The fund will finance infrastructure and green transition efforts in developing countries while also addressing negative impacts on small island and least developed nations. To avoid the fees, large carriers can switch to a more environmentally friendly fuel such as biofuel or ammonia, buy surplus units from low-emitting vessels or buy remedial units by contributing to IMO's Net Zero Fund. Most large shipping firms like AP Moller-Maersk, COSCO Shipping, and Mediterranean Shipping Company are expected to be impacted as the majority of their fleets still run on diesel and exceed the 5,000-tonne threshold. carbon tax economy logistics shipping trade