South Korea expresses concerns over China's establishment of no-sail zone
SEOUL, May 24 (Reuters) - South Korea has expressed concern to China over its establishment of a no-sail zone in a provisional maritime area, Seoul's Foreign Ministry said on Saturday.
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The Independent
an hour ago
- The Independent
Asian shares slide as Russia-Ukraine conflict, OPEC+ output plan push oil prices higher
Asian shares sank on Monday and oil prices jumped as trade tensions and the Russian- Ukraine conflict ratcheted up geopolitical uncertainty. Hong Kong's Hang Seng plunged more than 2% as Beijing and Washington traded harsh words over trade. U.S. President Donald Trump's announcement that he will double tariffs on steel and aluminum to 50% layered on still more worries for investors. A report over the weekend that China's factory activity contracted in May, although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump's sky-high tariffs, further undermined market sentiment. Markets in mainland China were closed for a holiday. Oil prices rallied after OPEC+ decided on a modest increase in output beginning in July. It was the third monthly increase in a row. U.S. benchmark crude oil gained $1.60 to $62.39 per barrel, while Brent crude, the international standard, was up $1.41 at $64.19 per barrel. Moscow pounded Ukraine with missiles and drones just hours before a new round of direct peace talks in Istanbul and a Ukrainian drone attack destroyed more than 40 Russian planes deep in Russia's territory, Ukraine's Security Service said on Sunday. Hong Kong's Hang Seng dropped 2.2% to 22,778.45 as China and the U.S. accused each other of breaching their tariff agreement reached in Geneva last month. Tokyo's Nikkei 225 lost 1.6% to 37,356.97, while the Kospi in Seoul fell 0.4% to 2,686.17. Australia's S&P/ASX 200 retreated 0.2% to 8,416.00. On Friday, Wall Street closed its best month since 2023. The S&P 500 retreated less than 0.1% to end at 5,911.69 and the Dow industrials Jones Industrial Average edged 0.1% higher to 42,270.07. The Nasdaq composite fell 0.3% to 19,113.77. Gap weighed on the market even though the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The company behind Banana Republic and Old Navy fell 20.2% after saying tariffs on imports from China and other countries could add up to $300 million to its costs this fiscal year. It has strategies set to mitigate up to half of that before it hits its profits. Hopes had largely been rising that the worst of such worries had passed, which in turn sent stocks rallying, after Trump paused his tariffs on both China and the European Union. A U.S. court then on Wednesday blocked many of Trump's sweeping tariffs. That all sent the S&P 500 in May to its first winning month in four and its best since November. But the tariffs remain in place while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. Friday's most influential losses came from several Big Tech stocks. Nvidia fell 2.9% to give back some of its gain from earlier in the week after it topped analysts' expectations for profit in the latest quarter. It was the single heaviest weight by far on the S&P 500. On the winning side of Wall Street was Ulta Beauty, which rose 11.8% after the retailer reported stronger sales and profit than analysts forecast. It also raised the top end of its forecasted range for revenue this fiscal year even though CEO Kecia Steelman called the operating environment 'fluid.' Costco climbed 3.1% after the retailer's results and revenue for the latest quarter edged past analysts' expectations. In the bond market, Treasury yields eased after a report showed that the measure of inflation that the Federal Reserve likes to use was slightly lower in April than economists expected. A separate report from the University of Michigan said that sentiment among U.S. consumers was better in May than economists expected. Sentiment improved in the back half of the month after Trump paused many of his tariffs on China. In currency trading early Monday, the U.S. dollar fell to 143.55 Japanese yen from 143.87 yen. The euro inched up to $1.1364 from $1.1351.
Reuters
an hour ago
- Reuters
Japan factory declines slow in May but tariff worries persist, PMI shows
TOKYO, June 2 (Reuters) - Japan's factory activity shrank at the slowest pace in five months in May as the decline in new orders eased, but worries over U.S. tariffs have dampened the recovery from an almost year-long contraction, a private-sector survey showed on Monday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 49.4 in May from 48.7 in April, marking the 11th consecutive month of staying below the 50.0-line that indicates contraction. Still, the reading was higher than the flash figure of 49.0 and the highest so far this year. "Manufacturing conditions in Japan moved closer to stabilisation in May, according to latest PMI data, with companies signalling a softer decline in sales and improved jobs growth," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Among sub-indexes, new orders fell for the 24th straight month, with manufacturers citing U.S. tariffs and increased client hesitancy as factors behind subdued demand conditions. Factory output also contracted for a ninth consecutive month, at a quicker pace than in April, the survey showed. To mitigate the impact of the U.S. tariffs on cars and other manufacturing sectors, which are the backbone of the Japanese economy, Tokyo has held four rounds of trade talks with Washington and plans a fiscal package to support households and businesses. In a positive sign, input cost inflation eased to a 14-month low in May, while output price inflation slowed to the softest in nearly four years. Employment increased for the sixth month in a row as firms filled vacancies and prepared for anticipated production increases, according to the survey. Business confidence on future output strengthened from April's near five-year low, with firms citing expectations of stronger market demand particularly in the semiconductor industry. However, some expressed concerns over U.S. tariffs, inflation and Japan's declining population as potential headwinds to growth, the survey showed.
Reuters
an hour ago
- Reuters
EUROPE Tariff plot twists lose their bite
A look at the day ahead in European and global markets from Wayne Cole. Is this the dog that didn't bark? That would be the question from Sherlock Holmes fans given the utter lack of market reaction to U.S. President Donald Trump's threatened doubling of steel and aluminium tariffs to 50%. That policy shift by tweet came late Friday after markets shut, so there was some anticipation of an impact today, maybe a drop in the Canadian dollar given the scale of their steel exports to the U.S. Yet the loonie is actually firmer against a broadly softer greenback, while European share futures are off a shade and Wall St futures only modestly lower. This could be the TACO meme in action as investors assume 'Trump always chickens out', though he's leaving it late with the new higher tariff supposed to go into effect on Wednesday. Then again, last minute cliffhangers work well on reality TV. European Union negotiators weren't pleased with this latest plot twist and threatened retaliation in return, while also letting it be known that the court case decision against the April 2 tariffs gave them added "leverage". Neither does Trump's latest rhetorical attack on China seem to be working, with Beijing sticking to its guns. If Trump is counting on a call from China's President Xi Jinping to sort things out, he might be waiting by the phone for a while. It was also somewhat ironic hearing Treasury Secretary Scott Bessent complaining that China was holding back vital products from the United States, given it was the U.S. that started a trade war with the specific aim of rebuffing Chinese imports. Federal Reserve Governor Christopher Waller speaking in South Korea said tariffs meant there were downside risks to activity and unemployment, and upside risks to inflation. Yet he was still optimistic about the chance of "good news" interest rate cuts later this year, cementing his place as one of the more dovish Fed officials. Fed Chair Jerome Powell will speak later Monday, though limited to opening remarks to an international finance conference. Key developments that could influence markets on Monday:
