Asian currencies inch lower
BENGALURU: Asian stocks climbed on Tuesday, while regional currencies edged lower against a firmer dollar as investors tracked the second day of high-stakes trade talks between Washington and Beijing.
Representatives from China and the US met in London on Monday, just days after US President Donald Trump and Chinese leader Xi Jinping held their first post-inauguration call to address an escalating trade dispute.
Trump said he had received 'good reports' from officials engaged the talks, which are expected to extend into Tuesday.
'The sentiment across Asian stock markets seems to be lifted by optimism around the US-China trade talks, which is seemingly going smoothly,' said Poon Panichpibool, markets strategist at Krung Thai Bank.
'Developments so far suggest that tensions may ease slightly and that there will be no further escalation into a tariff standoff from either side, which is good.'
MSCI's broadest index of Asia Pacific shares outside Japan rose as much as 0.8% to its highest level since January 21, 2022.
South Korean equities rose 0.6%, and Indonesian shares gained 1.5%.
DBS analysts said the second day of trade talks might see the US relaxing restrictions on tech exports in exchange for China resuming rare-earths mineral shipments.
The tech-heavy Taiwanese index closed up 2.1% to over a two-month high, with chip giant TSMC jumping 4%.
Malaysian stocks added 0.2%. Analysts at United Overseas Bank noted that the country's foreign portfolio inflows in May hit their highest level since March 2016 as signs of tariff de-escalation improved risk appetite.
Regional currencies were largely unchanged. The absence of concrete outcomes from Monday's discussions between the world's two largest economies kept currency markets subdued, with traders hesitant to take big positions.
'FX markets are largely in consolidation mood, with upticks in USD seen,' said Christopher Wong, currency strategist at OCBC.
The Malaysian ringgit, Singapore dollar each inched 0.1% lower, while the Taiwanese dollar and Thai baht edged 0.1% higher.
The South Korean won fell 0.9%.
The US dollar index was up 0.4% as investors awaited US inflation data, which is due on Wednesday.
The inflation report is among the final key data points ahead of the US Federal Reserve's June 17-18 meeting, where it is widely expected to keep rates unchanged.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
38 minutes ago
- Business Recorder
Boeing share slump hits Dow, US stocks
NEW YORK: Wall Street stocks dipped early Thursday after fresh trade war rhetoric from President Donald Trump, while Boeing shares tumbled following a brutal Air India crash on a 787 jet. Just hours after Trump reached a new detente with China on trade tensions, the president threatened to 'send letters out' with an ultimatum to other trading partners. Meanwhile, Boeing shares shed about five percent after a London-bound 787 Dreamliner crashed in western India, likely killing all 242 people on board. About 25 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 42,705.52. Wall Street rises after cooler May inflation data The broad-based S&P 500 slipped 0.1 percent to 6,018.24, while the tech-rich Nasdaq Composite Index also declined 0.1 percent to 19,595.85. Data showed that wholesale prices rose 0.1 percent last month, a modest uptick as analysts continue to caution that Trump's tariffs could lift inflation in the coming months. Among other stocks, Oracle surged 12.1 percent following an upbeat earnings report. The software giant scored eight percent revenue growth in the last year but predicted the coming year would be 'even better.'
Business Recorder
3 hours ago
- Business Recorder
Late profit-taking wipes out intra-day gains at KSE-100 Index
The Pakistan Stock Exchange (PSX) saw volatile trading on Thursday, with its benchmark KSE-100 Index swaying in both directions before closing the day lower by 260 points. The KSE-100 starting the session positive, hitting an intra-day high of 126,718.28. However, the index witnessed selling pressure in the second half, which pushed it to the negative territory. At close, the benchmark index settled at 124,093.12, down by 259.56 points or 0.21%. 'The Pakistan stock market ended the session on a negative note, weighed down by cautious investor sentiment and profit-taking activity. The benchmark index moved within range, recording an intraday high of 2,365 points and a low of 501 points, before closing at 124,093 — down 260 points or 0.21%,' brokerage house Topline Securities said in its post-market report. Downward pressure was largely attributed to declines in ENGROH, FFC, PPL, OGDC, and BAFL, which collectively eroded 401 points from the index. In contrast, support came from PKGP, UBL, BAHL, LUCK, and DGKC, which together added 347 points, Topline said. Addressing the post-budget conference, Finance Minister Muhammad Aurangzeb on Wednesday warned that additional revenue measures of up to Rs500 billion would be taken next fiscal year, if enabling amendments and legislation on enforcement were not passed by parliament, adding that all the budget figures were locked with the International Monetary Fund (IMF). Aurangzeb presented the federal budget 2025-26 to the parliament on Tuesday, with a total outlay of Rs17.573 trillion, targeting a GDP growth rate of 4.2% against 2.7 per cent in the outgoing year. On Wednesday, the PSX extended its rally as key indices posted strong gains, fueled by robust investor participation and improved sentiment following the positive announcements in the federal budget. The benchmark KSE-100 Index rose by 2,328 points, or 1.91%, to close at 124,352.68 points, up from 122,024.44 points in the previous session. Internationally, global stocks and the dollar slipped on Thursday as investors assessed a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dampened risk sentiment. Attention in financial markets this week has been focused on the US-China trade talks, which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students to access US universities. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three-year high on Wednesday. Japan's Nikkei slipped 0.7%, while U.S. and European stock futures fell. China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high. Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit US assets, especially the dollar, as they worried about rising prices and slowing economic growth. Meanwhile, the Pakistani rupee weakened against the US dollar, depreciating 0.07% on Thursday. At close, the local currency settled at 282.67, a loss of Re0.2 against the greenback. Volume on the all-share index decreased to 1,024.63 million from 1,041.13 million recorded in the previous close. The value of shares rose to Rs50.54 billion from Rs46.71 billion in the previous session. Sui South Gas was the volume leader with 55.90 million shares, followed by Fauji Cement with 50.60 million shares, and WorldCall Telecom with 49.33 million shares. Shares of 474 companies were traded on Thursday, of which 170 registered an increase, 270 recorded a fall, while 34 remained unchanged.
Business Recorder
5 hours ago
- Business Recorder
Late profit-taking wipes out gains at PSX
Pakistan Stock Exchange (PSX) saw continuous fluctuations on Thursday as the benchmark KSE-100 index ended with a loss of over 250 points after experiencing some volatility. The index began the day on a positive note, reaching its intra-day high of 126,718.28. However, in the latter part of the session, bears took over, dragging it to an intra-day low of 123,846.55. At close, the benchmark index settled at 124,093.12 level, a decrease of 259.56 points or 0.21%. Addressing the post-budget conference, Finance Minister Muhammad Aurangzeb on Wednesday warned that additional revenue measures of up to Rs500 billion would be taken next fiscal year, if enabling amendments and legislation on enforcement were not passed by parliament, adding that all the budget figures were locked with the International Monetary Fund (IMF). Aurangzeb presented the federal budget 2025-26 to the parliament on Tuesday, with a total outlay of Rs17.573 trillion, targeting a GDP growth rate of 4.2% against 2.7 per cent in the outgoing year. On Wednesday, the PSX extended its rally as key indices posted strong gains, fueled by robust investor participation and improved sentiment following the positive announcements in the federal budget. The benchmark KSE-100 Index rose by 2,328 points, or 1.91%, to close at 124,352.68 points, up from 122,024.44 points in the previous session. Internationally, global stocks and the dollar slipped on Thursday as investors assessed a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dampened risk sentiment. Attention in financial markets this week has been focused on the US-China trade talks, which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students to access US universities. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three-year high on Wednesday. Japan's Nikkei slipped 0.7%, while U.S. and European stock futures fell. China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high. Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit US assets, especially the dollar, as they worried about rising prices and slowing economic growth.
