Asian Markets Under Pressure as Trump's Tariff Deadline Looms
Asian Markets Decline on Growing Concerns Over Trade
Asian stocks fell on Friday for the most part. Japan's Nikkei added 0.3%, but Hong Kong's Hang Seng lost 1.3%. South Korea's KOSPI dropped over 1 percent, and Taiwan's index was down 0.2 percent. Shares in mainland China also fell modestly. Markets in the United States were closed for the July 4th holiday, but futures were 0.2% lower after the S&P 500 notched a record close on Thursday in a 0.8% surge. The Dow and Nasdaq also climbed 0.8% and 1%, respectively.
It was another case of markets being thrown into disarray as President Trump's July 9 deadline for trade deals with Canada and the rest of the world approaches, and traders, investors, execs, and bankers have no idea what will happen. He added the extensions would stop and more tariff letters would be sent out. To date, agreements have been struck with China, Britain, and Vietnam. Talks with India appear close, but progress with Japan and South Korea has stalled. The absence of new transactions is worrying the markets.
Wall Street Lifted by Jobs Data, Rate Cut Bets Cooled
The U.S. delivered a strong jobs report on Thursday, indicating the economy is still growing well. This reduced the likelihood of a Federal Reserve rate cut in July. The 10-year Treasury yield was 4.34%, up 4.7 basis points, while the 2-year yield climbed 9.3 basis points, to 3.88%.
The dollar rebounded on Thursday, gaining 0.4% overall. It was a tick lower Friday morning, at 144.62 yen and 0.7942 against the Swiss franc. The euro added 0.1% to $1.1766, and the British pound was steady at $1.3650.
Trump's massive new $3.4 trillion spending bill also made headlines. The U.S. House approved the 869-page law late Thursday, which would increase the nation's already $36.2 trillion debt. Concern about the fiscal picture aside, markets remained calm because of the rosier economic data that came previously.
Oil Prices Flat, Gold Moves Higher
The price of gold edged 0.1% higher, to $3,329.54 an ounce, as investors continued to seek safety. Brent crude futures added 1 cent, to $68.81 a barrel, and U.S. crude was up 3 cents, to $67.03. Trading was light with U.S. markets closed ahead of the weekend.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
Trump says tariff letters to 12 countries signed, going out on July 7
[NEW YORK] US President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the 'take it or leave it' offers to be sent out on Monday (Jul 7). Trump, speaking to reporters aboard Air Force One as he travelled to New Jersey, declined to name the countries involved, saying that would be made public on Monday. Trump had earlier on Thursday told reporters that he expected a first batch of letters to go out on Friday, a national holiday in the United States, though the date has now shifted. In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10 per cent base tariff rate and additional amounts for most countries, some ranging as high as 50 per cent. However, all but the 10 per cent base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals. That period ends on Jul 9, although Trump early on Friday said the tariffs could be even higher, ranging up to 70 per cent, with most set to go into effect Aug 1. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'I signed some letters and they will go out on Monday, probably twelve,' Trump said, when asked about his plans on the tariff front. 'Different amounts of money, different amounts of tariffs.' Trump and his top aides initially said that they would launch negotiations with scores of countries on tariff rates, but the US president has soured on that process after repeated setbacks with major trading partners, including Japan and the European Union. He touched on that briefly late on Friday, telling reporters: 'The letters are better ... much easier to send a letter.' He did not address his prediction that some broader trade agreements could be reached before the Jul 9 deadline. The shift in the White House's strategy reflects the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports, and especially on an accelerated timeline. Most past trade agreements have taken years of negotiations to complete. The only trade agreements reached to date are with Britain, which reached a deal in May to keep a 10 per cent rate and won preferential treatment for some sectors including autos and aircraft engines, and with Vietnam, cutting tariffs on many Vietnamese goods to 20 per cent from his previously threatened 46 per cent. Many US products would be allowed to enter Vietnam duty-free. A deal expected with India has failed to materialise, and EU diplomats on Friday said they have failed to achieve a breakthrough in trade negotiations with the Trump administration, and may now seek to extend the status quo to avoid tariff hikes. REUTERS
Business Times
2 hours ago
- Business Times
Trump says US will start talks with China on TikTok deal this week
[NEW YORK] US President Donald Trump said on Friday (Jul 4) he will start talking to China on Monday or Tuesday about a possible TikTok deal. He said the United States 'pretty much' has a deal on the sale of the TikTok short-video app. 'I think we are gonna start Monday or to China, perhaps President Xi or one of his representatives, but we would pretty much have a deal,' Trump told reporters on Air Force One. Last month, Trump extended to Sep 17 a deadline for China-based ByteDance to divest the US assets of TikTok. A deal had been in the works this spring to spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors, but it was put on hold after China indicated it would not approve it following Trump's announcements of steep tariffs on Chinese goods. Trump said the United States will probably have to get a deal approved by China. When asked how confident he was that China would agree to a deal, he said, 'I'm not confident, but I think so. President Xi and I have a great relationship, and I think it's good for them. I think the deal is good for China and it's good for us.' REUTERS
Business Times
3 hours ago
- Business Times
Vietnam Q2 GDP growth quickens on strong exports, US trade deal brightens outlook
[HANOI] Vietnam's economy grew at a faster pace in the second quarter of this year led by strong exports, in an encouraging sign just days after US President Donald Trump said he would place lower-than-threatened 20 per cent tariffs on many Vietnamese products. Concerns over the South-east Asian manufacturing hub's outlook had been growing in the run up to the trade deal announced on Wednesday (Jul 2), particularly as the United States is Vietnam's biggest export market. Gross domestic product growth in the April to June quarter accelerated to 7.96 per cent year on year, from the 6.93 per cent in the first quarter, government data showed on Saturday. It was just short of Hanoi's full-year growth target of at least 8 per cent. 'Economic performance in the first half of this year was positive and close to our target amid global and regional economic uncertainties,' the National Statistics Office (NSO) said. Exports were a bright spot in the last quarter, rising 18.0 per cent to US$116.93 billion from a year earlier, while imports were up 18.8 per cent at US$112.52 billion, translating into a trade surplus of US$4.41 billion, the NSO data showed. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Industrial production in the period rose 10.3 per cent, while June consumer prices rose 3.57 per cent. Trump announced on Wednesday the United States and Vietnam reached a trade deal, under which Vietnamese goods would face a 20 per cent tariff, with trans-shipments from third countries through Vietnam also facing a 40 per cent levy. Vietnam could import US products with a zero per cent tariff. The tariff rates were lower than an initial 46 per cent rate threatened by Trump in April. Vietnam hailed the deal as a boost for business and said negotiators were working to finalise details, as business groups awaited clarity on the finer points to assess the impact of the new tariffs. The United States is the largest export market for Vietnam, a regional manufacturing hub housing several multinational companies such as Samsung Electronics and Foxconn. The United States recorded a trade deficit of US$123 billion with Vietnam last year, one of its highest globally. Vietnam is also home to several Chinese companies, which analysts said are likely the main targets for the 40 per cent tariff on trans-shipments. China is Vietnam's largest two-way trading partner on which it relies heavily for components and materials for its manufacturing industries. Fitch Solutions said in a note on Friday that Vietnam's exports and investment will remain strong for the rest of the year and signalled upside risks for its 2025 GDP growth forecast of 6.4 per cent. 'With the new 20 per cent tariff, we think the government will speed up industrial upgrading and shift exports from low-margin goods to higher value-added products such as semiconductors,' it said in a note. Dominic Scriven, founder and chairman of investment firm Dragon Capital, said the trade deal is 'net-positive' and the potential GDP hit is less severe than feared. 'With external trade risk now moderating, attention can return to the country's core growth engine, the domestic and private sector economy,' he said. REUTERS
