Asian shares are mixed after Wall Street logs a 3rd straight winning week
Markets were closed for a holiday in Japan, where the ruling Liberal Democrats have lost their coalition majorities in both houses of parliament for the first time since 1955 following Sunday's election and the loss of their lower house majority in October.
A grim Prime Minister Shigeru Ishiba has vowed to stay on, but the outcome of the upper house election reflects voters' frustration with rising prices and political instability. Analysts said they expect his weakened government to crank up spending, adding to Japan's huge debt burden.
Japan is also facing the imposition of 25% tariffs across the board on its exports to the U.S. as talks with the Trump administration appear to have made little headway.
'We expect short-term political instability to intensify due to the difficulties of forming a majority coalition, a likely change in leadership, and a potential deadlock in trade negotiations,' Peter Hoflich of BMI, a part of the Fitch Group, said in a commentary.
'Without a structural reset through snap elections, Japan is likely to face prolonged policy drift throughout 2026,' he said.
Chinese shares advanced after the central bank kept its key 1-year and 5-year loan prime interest rates unchanged. Hong Kong's Hang Seng rose 0.3% to 24,895.20, while the Shanghai Composite index gained 0.4% to 3,549.89.
Recent stronger economic data have eased pressure on the Chinese leadership to soften credit. Meanwhile, President Donald Trump's administration has softened its criticism of Beijing, raising hopes that the two sides can work out a trade deal and avert the imposition of sharply higher tariffs on imports from China.
South Korea's Kospi picked up 0.5% to 3,205.71 after the government reported a slight improvement in exports in June.
In Australia, the S&P/ASX 200 shed 1.1% to 8,659.50, while Taiwan's Taiex dropped 0.3%. In India, the Sensex rose 0.2%, while Bangkok 's SET was down 0.5%.
This week will bring updates on U.S. home sales, jobless claims and manufacturing. Several Big Tech companies including Alphabet and Tesla are due to provide earnings reports.
On Friday, the S&P 500 handed back less than 1 point after setting an all-time high the day before. The Dow Jones Industrial Average fell 0.3% and the Nasdaq composite edged up by less than 0.1% to add its own record.
Norfolk Southern chugged 2.5% higher after an AP source said it was discussing a merger with Union Pacific to create the largest railroad in North America, one that would connect the East and West coasts. Any such deal, though, would likely face tough scrutiny from U.S. regulators. Union Pacific's stock fell 1.2%.
The heaviest weight on the market, meanwhile, was Netflix, which fell 5.1% despite reporting a stronger-than-expected profit.
Exxon Mobil sank 3.5% and also tugged on the market. It had been challenging Chevron's $53 billion deal to buy Hess, but an arbitration ruling in Paris about Hess assets off Guyana's coast allowed the buyout to go through. Chevron fell 0.9% after losing an early gain.
Treasury yields eased after a report suggested U.S. consumers may be feeling less fearful about coming inflation. They're bracing for inflation of 4.4% in the year ahead, down from last month's projection of 5%, according to preliminary results from a University of Michigan survey.
Prices may already be starting to feel the upward effects of President Donald Trump' s higher tariffs, according to data released last week.
The Trump administration is preparing to impose steeper import duties on many countries as of Aug. 1, although some have worked out deals to mitigate some of the damage.
In other trading early Monday, U.S. benchmark crude oil gained 14 cents to $66.19 per barrel. Brent crude, the international standard, added 10 cents to $69.38 per barrel.
The U.S. dollar rose to 148.50 Japanese yen from 147.98 yen. The euro slipped to $1.1628 from $1.1629.
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Rhyl Journal
an hour ago
- Rhyl Journal
Last wheat delivered to largest bioethanol plant under threat after trade deal
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Leader Live
an hour ago
- Leader Live
Last wheat delivered to largest bioethanol plant under threat after trade deal
Vivergo Fuels, near Hull, has said it is facing closure within weeks following the decision to end the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal. The plant buys more than a million tonnes of British wheat each year from more than 4,000 farms and says it has purchased from 12,000 individual farms over the past decade. Managing director Ben Hackett wrote to growers earlier this year explaining that the plant will only be able to honour existing contractual obligations for wheat purchases while uncertainty continues. Mr Hackett said the last scheduled load arrived at the plant on Friday. Last month, Vivergo, which is owned by Associated British Foods (ABF), said it is was beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation – a process which could see production stop before September 13, if support is not provided. It said Britain's two largest bioethanol producers – Vivergo and Ensus in Teesside – are now in urgent negotiations with the Government. The firms say the UK-US trade deal and regulatory constraints on the industry have made it impossible to compete with heavily subsidised American products. Mr Hackett said on Friday: 'We have a choice of going down a path of stagnation, decline, unemployment, economy shrinking, or we have a choice of going towards a path of investment, growth, prosperity, job creation, and that's why it's crucially important that the Government comes to a decision quickly, and comes to a decision in favour of supporting the UK bioethanol industry.' Farmer Matt Pickering, of Pickering and Sons, near Gainsborough, Lincolnshire, sold the last load of wheat to Vivergo. Mr Pickering said: 'We struggle with the quality of our land type, so we tend to go for out-and-out bulk volume shed fillers. Vivergo has been a fantastic home for us to sell feed wheat into.' Mike Green, owner of haulage company AgHaul, who transported the last load to the plant, said: 'We're in the dark. We don't know where we're going. 'It's very uncertain, uncharted waters, and it's worrying as we've already seen a decline in work.' The landmark came as Meld Energy said the uncertainty over the plant is putting its plans for a 'world-class' green jet fuel project on the Humber in jeopardy. Earlier this year, Meld Energy signed a £1.25 billion agreement with Vivergo Fuels to anchor a Sustainable Aviation Fuel (SAF) facility at Saltend Chemicals Park in Hull. Meld Energy chief executive and founder Chris Smith said: 'We're excited about the potential to bring our sustainable aviation fuel project to the Humber – one of the UK's most important industrial and energy hubs. 'But, for projects like ours to succeed and the flow of vital investment to be forthcoming, we need a strong and integrated low-carbon ecosystem. 'A bioethanol plant on site at Saltend is a critical part of that mix. Without it, we'd have to consider alternative locations overseas where that infrastructure is already in place.' A Government spokesperson said: 'We recognise this is a concerning time for workers and their families which is why we entered into formal discussions with the company on potential financial support last month. 'We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.' The Government said officials and ministers have met with Vivergo and Ensus consistently over the last few months to discuss options to address 'significant challenges' that the bioethanol industry has been facing for some time. It said engagement with the companies 'continues at pace' and external consultants have been brought in to help.
