Asian Markets Waver To Start Key Week For Trade, US Data
Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday.
Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates.
Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports -- particularly on jobs -- indicating the world's number one economy was slowing.
Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow.
In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday.
With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension.
"The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days" said Chris Weston of Pepperstone.
"As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently," he added.
Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal.
Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence -- an area of fierce competition between Beijing and Washington.
Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China.
Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's leading semiconductor producer -- became the first company ever to hit $4 trillion in market value.
Hong Kong - Hang Seng Index: UP 0.2 percent at 24,896.02
Shanghai - Composite: UP 0.3 percent at 3,644.73
Tokyo - Nikkei 225: Closed for a holiday
Pound/dollar: UP at $1.3457 from $1.3451 on Friday
Euro/dollar: UP at $1.1667 from $1.1643
Dollar/yen: DOWN at 147.56 yen from 147.79 yen
Euro/pound: UP at 86.70 pence from 86.54 pence
West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel
New York - Dow: UP 0.5 percent at 44,175.61 (close)
London - FTSE 100: DOWN 0.1 percent at 9,095.73 (close)
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DW
6 minutes ago
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Indian workers fear economic downturn under Trump's tariffs – DW – 08/11/2025
India's labor-intensive textile, jewelry, and auto parts industries are likely to be among the hardest hit by Trump's 50% tariffs. After US President Donald Trump ordered additional tariffs on Indian exports last week, anxiety is spreading among millions of workers, especially those in the jewelry and textile industries. Jagdish Prajapati, 49, is a diamond worker in Surat, one of the world's largest diamond polishing hubs in India's western Gujarat state. "We have already been grappling with an economic slowdown over the past few years, with problems stemming from the Russia-Ukraine war. The burden of steep US tariffs especially on Indian diamond, gem, and jewellery exports has created more fear," Prajapati, who has been polishing diamonds for over 20 years, told DW. "Many workshops are already cutting back hours and halting new hiring. If the tariffs come, it will leave families struggling to make ends meet," added Prajapati. 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The White House said India's continued purchases of Russian oil are enabling Russia's war machine in Ukraine, and are undermining US efforts to bring the war to an end. Russia is currently the single largest seller of Indian oil imports. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The US tariffs apply to Indian exports like gems, textiles, automotive parts and footwear. Electronics, smartphones and pharmaceuticals remain exempt, for now. Even so, the tariffs threaten a significant portion of India's export economy to the US, which is valued at nearly $87 billion (€74.7 billion) annually, representing about 2.5% of India's GDP. The 50% rate is due to take effect on August 27, leaving the door open for potential negotiations. India was one of the first countries to initiate trade and tariff talks with the second Trump administration, when Prime Minister Narendra Modi met Trump in February. The two leaders had then announced a target to double bilateral trade to $500 billion by 2030. However, ties have now been strained by the new tariff rate and Trump's insistence that India stop buying Russian oil. In the textile city of Tiruppur in the southern state of Tamil Nadu, millions are employed in knitwear and garment factories. About 30% of Tiruppur's exports go to the US, particularly in the cotton and knitwear segment. This amounted to $5.1 billion (€ 4.4 billion) in the last financial year, according to exporters associations. The industry, which directly employs around 1.25 million workers in the wider textile belt of Tiruppur, Karur and Coimbatore, faces the risk of 100,000–200,000 job losses if exports contract in the coming months. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video "With prices of Indian goods rising in the US due to these duties, trade is expected to suffer significantly. It will hit the industry and we will need to see how this plays out," K M Subramanian, President of the Tirupur Exporters' Association, told DW. The tariffs are set to make Indian textiles more expensive for US buyers compared to competitors like Vietnam, Bangladesh, or Pakistan. Tiruppur has a reputation for high-quality, eco-friendly knitwear, and has established relationships with global brands like Walmart, GAP, and Costco. "Standalone exporting companies will be hit first. When the first round of 25% tariffs was imposed, we were sent to the intensive care unit. But with the additional 25% penalty tariff because of Russian oil, it looks as if we have been placed in a coma," Kumar Doraiswamy of Eastern Global Clothing told DW. "It has put exporters in crisis, which threatens jobs, revenues, and the global standing of India's textile sector," added Doraiswamy. 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DW
5 hours ago
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Nvidia, AMD to pay US 15% of AI chip sales to China – DW – 08/11/2025
The US government began issuing artificial intelligence chip export licenses after the revenue-sharing deal, despite security concerns. United States semiconductor giants Nvidia and Advanced Micro Devices (AMD) will pay the US government 15% of revenue from sales of artificial intelligence (AI) chips to China, under an unusual deal reportedly brokered by President Donald Trump. The agreement reversed an earlier export ban, allowing Nvidia and AMD to resume sales of their AI chips to China. According to reports in the , , and , Nvidia CEO Jensen Huang met with Trump at the White House last week and agreed to give his administration a share of the company's revenue. The US Commerce Department began issuing licenses Friday for the sale of Nvidia's H20 chip to China. "We follow rules the US government sets for our participation in worldwide markets," was the only comment a Nvidia spokesperson offered when asked about the deal. AMD, which produces an AI chip called the MI308, did not respond to a Reuters request for comment. China represents a significant market for both companies, with combined sales projected to exceed $25 billion (€23 billion). To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Critics say the move poses national security risks, arguing it could accelerate China's AI capabilities. "If this reporting is accurate, it suggests the administration is trading away national security protections for revenue for the Treasury," said Alasdair Phillips-Robins, who served as an adviser at the Commerce Department during former President Joe Biden's administration. "It's wild," said Geoff Gertz, a senior fellow at the Center for a New American Security, an independent think tank in Washington, D.C. "Either selling H20 chips to China is a national security risk, in which case we shouldn't be doing it to begin with, or it's not a national security risk, in which case, why are we putting this extra penalty on the sale?" The Trump administration maintains the chips are less advanced than those sold to allies and argues the deal strengthens US tech dominance. China, meanwhile, has raised security concerns over Nvidia's H20 AI chips, claiming they may contain backdoors. China's cyberspace watchdog summoned Nvidia at the end of last month to explain potential backdoor risks in its H20 chips. Nvidia denied the claims, insisting its products do not allow remote access.
Int'l Business Times
8 hours ago
- Int'l Business Times
Asian Markets Waver To Start Key Week For Trade, US Data
Asian markets mostly rose Monday as investors eyed a week dominated by speculation about US inflation data and a prolonged pause for Washington's tariffs on China. Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday. Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates. Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports -- particularly on jobs -- indicating the world's number one economy was slowing. Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow. In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday. With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension. "The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days" said Chris Weston of Pepperstone. "As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently," he added. Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal. Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence -- an area of fierce competition between Beijing and Washington. Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China. Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's leading semiconductor producer -- became the first company ever to hit $4 trillion in market value. Hong Kong - Hang Seng Index: UP 0.2 percent at 24,896.02 Shanghai - Composite: UP 0.3 percent at 3,644.73 Tokyo - Nikkei 225: Closed for a holiday Pound/dollar: UP at $1.3457 from $1.3451 on Friday Euro/dollar: UP at $1.1667 from $1.1643 Dollar/yen: DOWN at 147.56 yen from 147.79 yen Euro/pound: UP at 86.70 pence from 86.54 pence West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel New York - Dow: UP 0.5 percent at 44,175.61 (close) London - FTSE 100: DOWN 0.1 percent at 9,095.73 (close)
