Ninety One's Kent on Blurring Lines Between EM and DM: EM Lens
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Yahoo
36 minutes ago
- Yahoo
China Ramps Up Rare Earth Exports After Fright For Global Buyers
(Bloomberg) -- China's exports of rare earth products — including magnets — extended their recovery in July, months after Beijing threatened a disruptive global shortage by crimping supplies to fight a trade clash with US President Donald Trump. Shipments jumped last month to reach their highest since January, well before China leveraged its dominance of rare earths to hit back at Trump's punitive tariffs. Beijing agreed to resume flows to the US as part of a trade truce with Washington. The US-Canadian Road Safety Gap Is Getting Wider A Photographer's Pipe Dream: Capturing New York's Vast Water System Festivals and Parades Are Canceled Amid US Immigration Anxiety A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Princeton Plans New Budget Cuts as Pressure From Trump Builds Data released Monday covers rare earth products, a category typically dominated by so-called permanent magnets. Volumes sold overseas rose 69% to 6,422 tons in July, according to Bloomberg News calculations. China produces about 90% of the world's rare-earth magnets and its export controls launched in early April threatened to deprive major manufacturers from India to Europe and the US of a small but critical component. The US has since unveiled plans to boost domestic output of rare earths and magnets. Exports from China reached a low in May after China launched the curbs, which covered shipments of seven rare earths as well as products made from them. US Trade Representative Jamieson Greer said earlier this month that China was 'about halfway there' in terms of returning magnet supplies to where they were prior to the controls. China's weaponization of rare earths didn't just affect the US, and the slump in supplies also contributed to growing tensions between the European Union and China. More granular data on exports of magnets, and the countries to which they were shipped, should be released on Wednesday. (Adds details throughout. An earlier version of the story corrected the month in the second paragraph.) What Declining Cardboard Box Sales Tell Us About the US Economy Americans Are Getting Priced Out of Homeownership at Record Rates Living With 12 Strangers to Ease a Housing Crunch Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan How Syrian Immigrants Are Boosting Germany's Economy ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Chinese Stock Index Rises to Decade High as Investors Dump Bonds
(Bloomberg) -- A gauge of Shanghai-listed stocks closed at its highest level in a decade, as cash-rich local investors plow into a market that has surged amid easing trade tensions with the US. The Shanghai Stock Exchange Composite Index jumped 0.9% to close at 3,728 on Monday, its strongest finish since August 2015, according to Bloomberg-compiled data. That cements a 20% turnaround since an April selloff, when US President Donald Trump's sweeping tariffs roiled global markets. Trump extended a tariff truce with China last week. The US-Canadian Road Safety Gap Is Getting Wider A Photographer's Pipe Dream: Capturing New York's Vast Water System Festivals and Parades Are Canceled Amid US Immigration Anxiety A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Princeton Plans New Budget Cuts as Pressure From Trump Builds The rally reflects a rising sense of optimism among small investors, flush with near record-high savings and increasingly rotating out of bonds. Those investors were scarred a decade ago, when a precipitous stock market crash led Beijing to unleash state-backed funds to prop up share prices and left a bitter memory for many investors. There have been false dawns since then, but over the past decade Chinese stocks onshore have badly underperformed benchmarks of shares in the US, Asia and even Europe, long considered a global laggard for equity investors. Fund managers in China are now hoping that the current rally has enough behind it — ranging from hopes about artificial intelligence to government moves to bolster growth — to stand the test of time. 'We're confident that this rally has legs,' said Wang Huan, a fund manager at Shanghai Zige Investment Management Co. Ltd, pointing to sources of optimism including abundant liquidity, government moves to stem price wars and hopes that China's economy is bottoming out. China's stock market has been helped by investors shifting their investments from fixed income, as they scale back expectations of monetary easing and respond to Beijing's decision to restart taxes on interest payments made on government bonds or those of financial institutions. China's 10-year bond yield was up four basis points at 1.78% on Monday, while 30-year yields were around six basis points higher at 2.11%. The country's 30-year bond futures suffered their biggest drop since March. The latest monetary policy report from China's central bank showed policymakers are in no rush to aggressively ease. The Shanghai Composite remains a long way from the heady days of 2015, when a leverage-induced buying spree pushed the index as high as 5,166 before the bubble burst. The all-time high was set in October 2007. Trade Tensions Ease The buzz in China's share market is a stark change from just a few months ago, when fears that the world's two largest economies were entering a prolonged — and painful — trade war rattled markets around the world. The rally is part of a global rise in share prices: Stocks in the US and Indonesia set new highs last week, helping push an MSCI index of global equities to a record. The recovery in China's stock market has led to a frenzy of trading activity. Turnover on mainland exchanges was more than 2.7 trillion yuan ($376 billion) on Monday, the second highest turnover ever following an Oct. 8 peak, according to Bloomberg-compiled data. That followed mainland Chinese traders buying a record HK$35.9 billion ($4.6 billion) worth of stocks in Hong Kong on Friday, as the risk-on mood in mainland equities spilled over across the border. There has also been a surge in loans for stock purchases, a sign that investors are taking on leverage to join the rally. The amount of margin debt taken out to buy stocks climbed to the highest level since 2015 last week, and is now about 10% away from hitting an all-time high. Other policy tweaks have helped direct investors to local stocks. China strengthened its oversight of taxes on overseas stock trading gains, and said it will subsidize interest payments on eligible personal consumer loans. The Shanghai index's 11% gain this year has beaten the CSI 300 Index, another closely watched onshore gauge which is up around 8%. A bigger weighting of high-performing bank stocks in the Shanghai Composite has helped drive the outperformance, in large part due to buying by insurance funds. --With assistance from Julia Zhong. (Updates stock and bond prices. Adds details of latest central bank policy report.) What Declining Cardboard Box Sales Tell Us About the US Economy Americans Are Getting Priced Out of Homeownership at Record Rates Living With 12 Strangers to Ease a Housing Crunch Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan How Syrian Immigrants Are Boosting Germany's Economy ©2025 Bloomberg L.P.
Bloomberg
an hour ago
- Bloomberg
South African Bonds Lure Foreign Investors With Top EM Returns
By and Mpho Hlakudi Save Foreign investors are flooding into South Africa's government bond market to take advantage of one of the best emerging-market trades of recent years. The bonds have drawn net inflows of 139 billion rand ($7.9 billion) in the 18 months through June, more than the previous four years combined, according to National Treasury data. The coalition government established after elections in 2024 has proved key to sentiment, winning over investors with plans to reform the economy and improve the state's finances.
