Asian shares are mostly higher after US stocks rise to the brink of a record
Asian were mostly higher on Friday after U.S. stocks ran up to the edge of another record. U.S. futures and oil prices also logged slight gains.
Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying 'The president likes to close these deals himself.'
Worries about Trump's higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation.
Hong Kong's Hang Seng index was barely changed at 24,333.43, while the Shanghai Composite index lost 0.2% to 3,441.30.
Tokyo's Nikkei 225 index surged 1.6% to 40,215.36 as the government reported that consumer prices eased slightly in May.
South Korea's KOSPI Composite Index slid 0.7% to 3,050.01.
Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath.
On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February. It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump's tariffs.
The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91. Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs.
A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. They're expecting a better performance in upcoming months.
Following the reports, Treasury yields swiveled up and down in the bond market before easing.
The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday.
Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him. That could hurt confidence among investors about the Fed's capability to make unpopular decisions when it comes to fighting inflation.
On Wall Street, spices company McCormick jumped 5.3% after delivering a better-than-expected profit report and giving a full-year profit forecast that topped analysts' expectations, including planned efforts to offset increased costs caused by tariffs.
Over the longer term, it's been big technology stocks that have led the market for years and since the S&P 500 hit a trough in April.
Chip company Nvidia, which has been the poster child of the frenzy around artificial-intelligence technology, added 0.5%. It's the most valuable company in the U.S. stock market after rushing 61% higher since April 8, towering over the S&P 500's gain of 23%. Another AI darling, Super Micro Computer, rose 5.7% to bring its gain since April 8 to 55%.
In other dealings early Friday, the U.S. benchmark crude gained 35 cents to $65.59 per barrel. Brent crude, the international standard, added 36 cents to $67.05 per barrel
The U.S. dollar rose to 144.45 Japanese yen from 144.40 yen. The euro fell to $1.1699 from $1.1703.
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AP Business Writer Stan Choe contributed.
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The Guardian
44 minutes ago
- The Guardian
EU ready for trade deal with US but ‘all options on the table', says von der Leyen
The European Commission president, Ursula von der Leyen, has said the EU is ready for a trade deal with Donald Trump, but 'all options remain on the table'. Von der Leyen said she was analysing the latest US negotiating document received on Thursday. 'Our message today is clear, we are ready for a deal,' she told reporters, after briefing EU leaders at a summit in Brussels. 'At the same time, we are preparing for the possibility that no satisfactory agreement is reached … and we will defend the European interest as needed. In short, all options remain on the table.' The commission is responsible for trade on behalf of the EU's 27 member states, but wanted a steer on how to approach the economically critical talks with the White House. Trump has threatened to impose 50% tariffs on all EU goods from 9 July unless the two sides reach a deal. Most EU goods already face a 10% tariff, with levies of 25% on cars and car parts and 50% on steel and aluminium. Von der Leyen also floated a 'beginning of redesigning' the World Trade Organization amid concern the global trading system is being undermined by trade wars and bilateral deals. She said the Asia Pacific CPTPP bloc, which also includes the UK, was interested in 'structured collaboration' with the EU, which wanted the same. 'We can think about this as a beginning of redesigning the WTO … to show the world that free trade with a large number of countries is possible on a rules-based foundation,' she said. As Trump's deadline draws near, differences are emerging between Germany and France over how to handle the US talks. The German chancellor, Friedrich Merz, said a quick and simple trade deal was better than 'slow and complicated'. The new centre-right chancellor is under heavy pressure from German carmakers and other exporters, some of whom argue that an asymmetric deal – ie higher US tariffs on European goods – may be better than no deal. The French president, Emmanuel Macron, argued that accepting an unequal trading relationship would be damaging to Europe's long-term competitiveness. One EU diplomat rejected the suggestion member states were divided, but said: 'If we accept 10%, how long will it last?', suggesting Trump could launch a new front in the trade war, or that it could affect negotiations with other trading partners. 'Many member states realise this is not only one game. Maybe it will affect the way India approaches us, or China.' Ireland's prime minister, Micheál Martin, said: 'Getting a deal is important for certainty so that we know the landscape ahead of us and that industry knows the landscape ahead of it, so that we can protect jobs, which is our number one priority.' Striking a more outspoken note, Spain's prime minister, Pedro Sánchez, said Trump's tariff threat was 'doubly unfair', because his country runs a trade deficit with the US. He was responding after Trump said Spain would 'pay twice as much', after Sánchez refused to commit to the 5% Nato spending target. Diplomats are increasingly pessimistic about negotiating away the 10% baseline tariffs. As this reality sinks in, two approaches are emerging: a quick deal that would mean certainty for business, or retaliation to press for something better. 'Do we go into aggressive retaliation mode or are we less vocal and do a quick deal,' said one source. The US has shown little obvious interest in the EU's offer of a 'zero-for-zero' free-trade zone on industrial goods, while continuing to attack the bloc's tech regulation and VAT rules. Earlier this week, von der Leyen reiterated that changes to the EU's Digital Markets Act – regulations affecting US tech companies – was off the table. 'Of course we discuss tariff lines, we discuss non-tariff barriers like standards and norms … but where it is the sovereign decision-making process in the European Union and its member states that is affected this is too far.' Belgium's prime minister, Bart De Wever, said tariffs should be avoided at all costs. 'So we will not allow ourselves to be provoked, we will remain calm, we will negotiate and we hope to reach an agreement. If this is not the case, we will naturally adopt countermeasures, but these will be appropriate countermeasures,' he said. The EU has suspended levies on €21bn (£18bn) US goods until mid-July to allow more time for negotiations. The bloc is consulting on further retaliatory tariffs targeting €95bn of US goods, although the final total is likely to be smaller, if approved. The EU previously dropped plans to target American bourbon, after protests from France and Ireland, who feared retaliation against French cognac and Irish whiskey. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Merz criticised the EU's approach as too complicated at an industry conference in Berlin on Monday. He also suggested the EU should concentrate on negotiating in five sectors including the automotive and steel industries, which have been already been hit with tariffs, and pharmaceuticals, which remain in Trump's crosshairs. Peter Leibinger, the president of the German Federation of Industries (BDI), said at the same conference that he [Merz] needed to 'carry the pain' being felt by German manufacturers to the Brussels bubble. The BDI said the tariffs would cost the German economy approximately 0.3 percentage points of growth, depressing an economy 'where industrial production remains significantly below the pre-crisis level of 2019'. The EU's chief trade negotiator, Maroš Šefčovič, said: 'The car industry of Europe, it's clearly bleeding. And really to have tariffs at the level of 27.5%, which is a scary state, it is clearly unsustainable.' Carmakers face a 25% tariff, in addition to the 2.5% that pre-dated Trump's second term. Šefčovič said his 'one wish' was unity in the EU's approach. He was 'ready to fight tooth and nail' for the EU's interests, telling German business leaders to 'talk to us, criticise us, but support us'. He also revealed he was seeking an insurance clause in any deal: 'I think it would be clearly desirable … that we would have some kind of stand still clause, which would kind of prevent a surprise with sudden spikes [in tariffs] and volatility.'
Reuters
an hour ago
- Reuters
A luxury experience in China: Global high-end brands bet on conceptual stores to revive sales
SHANGHAI, June 27 (Reuters) - Louis Vuitton's latest Shanghai store is not your average luxury flagship. The 30-meter-high, ship-shaped store, "The Louis", is billed as an experience, and houses an exhibition space and cafe in Shanghai's downtown Nanjing Road shopping strip. "The Louis", which had a grand opening on Thursday, will undoubtedly draw crowds eager to post pictures to social media of its gleaming facade and the photo-ready exhibits inside. But LVMH-owned ( opens new tab Louis Vuitton will also be hoping it can stimulate sales among Chinese consumers whose spending on luxury goods has slowed. LVMH's business strategy aligns with a broader shift among luxury goods retailers from a transactional model - where a shop merely sells goods to customers - to enticing customers with "experiences" that ultimately spur growth. The stakes are high for the luxury brands, which for years have relied on brisk sales in China to fuel their global growth, and ambitions, but are now facing a slowdown in demand in the world's second-biggest economy. The size of the Chinese market declined more than 18% last year to around 350 billion yuan ($48.80 billion) and sales are on track for a flat performance in 2025, according to estimates from consultancy Bain. Zino Helmlinger, head of China retail at real estate service provider CRBE, acknowledges that the luxury segment as a whole in China has taken "a hit" recently, though he believes the slowdown was expected. 'If you look at the megastars - I mean LVMH, Kering ( opens new tab, Richemont (CFR.S), opens new tab, Hermès ( opens new tab - they almost tripled their profit within five years," he said. "At some point, there is some counterbalancing, there is only so much you can grow, only so much you can generate." In the first quarter, LVMH's revenue in the region that includes China fell 11% on an organic basis - the Asia-Pacific excluding Japan accounts for 30% of the group's total sales. Chinese consumers, hard hit by broader economic uncertainty and a prolonged property market downturn, have tightened spending on discretionary purchases - luxury branded handbags among them. Shanghai native Natalie Chen, 31, says she already owns enough "stuff" and has redirected a significant portion of the funds she once used for luxury goods to travel. "Truthfully speaking, I don't feel that buying another bag will improve my life," she said, though she has already visited a new restaurant opened by Prada in Shanghai and intends to check out Louis Vuitton's new cafe concept with girlfriends. "It brings a different kind of feeling than just [shopping] in a mall," Chen said, though she was unsure the ship-shaped store would lead her to make any purchases outside of coffee and cake. Still, the luxury brands are sensing a longer term opportunity to pump-prime sales. While appetite for personal luxury goods in China and around the world is declining, hurt by economic pressures and price fatigue, sales rates of "experiential goods" are rising, according to Bain, which highlighted a surge in personalized luxury hospitality experiences and rising fine dining sales in its spring luxury report. In 2024, for example, the overall personal luxury goods market worldwide fell 1% to 3% even as experiential luxury spending rose 5%, Bain said. New research released by real estate advisor Savills earlier this month points to this as a significant new trend in what it describes as China's "evolving" luxury market, in which people seeking out experiences are lured with more experiential luxury brand touchpoints, from restaurants to Salon Privé - private, appointment-only lounges for VIP shoppers. "All the brands are closing stores, but those that can afford to are also opening big flagships or holding some big events or exhibitions to keep their visibility extremely high," said Patrice Nordey, CEO of Shanghai-based innovation consultancy Trajectry, essentially preparing for future success when the market picks up again. Brands from Balenciaga to Chanel, Louis Vuitton and Prada have all closed stores in China since the second-half of last year. Gucci is on track to close 10 stores in the market this year, Helmlinger said. Louis Vuitton's stablemate Dior opened a cafe concept in Chengdu earlier this year, and in March Prada (1913.F), opens new tab opened a Wong Kar Wai-designed restaurant at its Rong Zhai cultural space in Shanghai. Jeweller Tiffany and Co. recently downsized a large downtown Shanghai store, but in March it also opened a new three-storey flagship in Chengdu. Nordey says that while more people refer to this trend as "experiential" retail, it actually speaks to something much deeper. "I think it's a way of looking at your customer, either as someone that will buy products, or as an individual who is trying to have a more fulfilling life," he said. "If your purpose is not only to feed your client with consumer products, but more than that, you might actually resonate more strongly with them." While high-profile luxury store closures in mainland China have prompted speculation of brands lessening investment in a slowing market, CRBE's Helmlinger says the real story is more nuanced, indicating a strategic realignment of resources, rather than a pullback in the market. "You need to create this concept of rarity, and rarity comes with scarcity," he said. "When you have 80 or 90 stores in one market, it doesn't seem so rare anymore, it seems like it's mainstream." ($1 = 7.1714 Chinese yuan renminbi)
Times
an hour ago
- Times
Rachel Reeves ‘must raise taxes' after welfare and winter fuel U-turns
Rachel Reeves is likely to have to raise taxes to pay for the £4.5 billion cost of Labour's U-turns on welfare and winter fuel payments, leading economists have said. The Resolution Foundation said the government's decision to protect existing claimants of disability and health benefits from the impact of welfare reforms will cost about £3 billion. The decision earlier this month to restore winter fuel payments for millions of pensioners will cost another £1.5 billion. The strain on the public finances has been increased by global economic turbulence and the anaemic levels of economic growth. Ruth Curtice, chief executive of the Resolution Foundation, told BBC Radio 4's Today: 'Altogether they are looking for over £4 billion. They have completed their spending review, which means that spending totals for departments are set. Revisiting that will be very difficult. 'Presumably, after this, looking for further savings from the welfare budget would be quite challenging so that leaves only extra borrowing, which the chancellor doesn't have much space for unless she were to change her fiscal rules or tax rises.' The prime minister offered to water down the cuts during talks with senior backbenchers after accepting that he could not force the bill through unchanged, given that more than 120 MPs publicly oppose it in its current form. The scale of the climbdown is even bigger than expected. In a move that would cost the Treasury £1.5 billion, Starmer has offered to restrict changes to personal independence payments (PIP) to new claimants, protecting 370,000 existing recipients who have been vocal over their concerns. Claimants of the health element of universal credit — paid to those who are unable to work — will also be protected. The government had planned to freeze the benefit until 2029-30 in a move that would have resulted in 2.2 million people facing a cut of about £450. The reversal is expected to cost another £1.5 billion. Restoring winter fuel payments to 7.5 million pensioners will cost the government about £1.5 billion. The decision to abandon some of the government's flagship pledges will increase pressure on Reeves ahead of the autumn budget. Economists believe tax rises are inevitable. Meg Hillier, the MP for Hackney South & Shoreditch, one of the leading welfare rebels, said she would now support the bill. She said: 'This is a positive outcome that has seen the government listen and engage with people, the concerns of Labour MPs and their constituents.' However, one rebel, the Nottingham East MP Nadia Whittome, said on Friday morning that the concessions were 'nowhere near good enough', and would create a 'two-tier' benefits system. When asked if she had been persuaded to back off, she told Today: 'In short, no. The existing claimants will obviously be relieved, but there will still be £3 billion of cuts made here which will push people into poverty. 'Even these revised proposals are nowhere near good enough and frankly are just not well thought through. It would create a two-tier system in both PIP and the universal credit system when somebody became disabled.' She said the bill would 'punish' people for trying to work, because the planned cuts would now only affect future claimants. 'Say you're on universal credit now, you do what the government tells you to do and you get a job, your health worsens in a few years, you need to go back on universal credit but you get less — that risks punishing people who are finding work which is the exact opposite of what the Bill is trying to do,' Whittome said.
