Global markets mostly gain after Wall Street tumbles following poor US jobs report
Markets in Asia had already reacted on Friday to US President Donald Trump's announcement late Thursday of sweeping tariffs on imports from many US trading partners. The new import duties are set to take effect on Thursday. The signs of trouble on the US economic horizon have raised hopes that the Federal Reserve may relent and cut interest rates, analysts said.
Tokyo's Nikkei 225 index lost 1.3%, bouncing back from bigger losses earlier in the day to finish at 40,290.70. The Hang Seng in Hong Kong jumped 0.9% to 24,733.45, while the Shanghai Composite index climbed nearly 0.7% to 3,583.31. In South Korea, the Kospi surged 0.9% to 3,147.75. Australia's S&P/ASX 200 was nearly unchanged at 8,663.70.
Investors' worries about a weakening US economy deepened after the latest report on job growth in the U.S. showed employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls. "The labor market, once a pillar of resilience, is now looking more like a late-cycle casualty, as soft data begin to replace soft landings in market discourse,' Stephen Innes of SPI Asset Management said in a commentary.
Trump's decision to order the immediate firing of the head of the government agency that produces the monthly jobs figures raised concern over whether there might be interference in future data. The surprisingly weak hiring numbers led investors to step up their expectations the Fed will cut interest rates in September. The yield on the 10-year Treasury fell to 4.21% from 4.39% just before the hiring report was released. That's a big move for the bond market. The yield on the two-year Treasury, which more closely tracks expectations for Fed actions, plunged to 3.68% from 3.94% just prior to the report's release.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab Times
6 hours ago
- Arab Times
Global markets mostly gain after Wall Street tumbles following poor US jobs report
BANGKOK, Aug 4, (AP): Global shares advanced Monday after Wall Street had its worst day since May following the release of weak US jobs data. France's CAC 40 added 0.8% in early trading to 7,609.44, while the German DAX rose nearly 1.0% to 23,702.42. Britain's FTSE 100 edged up 0.4% to 9,108.28. US shares were set to drift higher with Dow futures up 0.6% at 43,951.00. S&P 500 futures rose 0.6% to 6,302.75. Markets in Asia had already reacted on Friday to US President Donald Trump's announcement late Thursday of sweeping tariffs on imports from many US trading partners. The new import duties are set to take effect on Thursday. The signs of trouble on the US economic horizon have raised hopes that the Federal Reserve may relent and cut interest rates, analysts said. Tokyo's Nikkei 225 index lost 1.3%, bouncing back from bigger losses earlier in the day to finish at 40,290.70. The Hang Seng in Hong Kong jumped 0.9% to 24,733.45, while the Shanghai Composite index climbed nearly 0.7% to 3,583.31. In South Korea, the Kospi surged 0.9% to 3,147.75. Australia's S&P/ASX 200 was nearly unchanged at 8,663.70. Investors' worries about a weakening US economy deepened after the latest report on job growth in the U.S. showed employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls. "The labor market, once a pillar of resilience, is now looking more like a late-cycle casualty, as soft data begin to replace soft landings in market discourse,' Stephen Innes of SPI Asset Management said in a commentary. Trump's decision to order the immediate firing of the head of the government agency that produces the monthly jobs figures raised concern over whether there might be interference in future data. The surprisingly weak hiring numbers led investors to step up their expectations the Fed will cut interest rates in September. The yield on the 10-year Treasury fell to 4.21% from 4.39% just before the hiring report was released. That's a big move for the bond market. The yield on the two-year Treasury, which more closely tracks expectations for Fed actions, plunged to 3.68% from 3.94% just prior to the report's release.
Arab Times
8 hours ago
- Arab Times
Vietnam automaker Vinfast opens factory in India, eyeing growth in Asia
THOOTHUKUDI, India, Aug 4, (AP): Vietnam's Vinfast began production at a $500 million electric vehicle plant in southern India's Tamil Nadu state on Monday, part of a planned $2 billion investment in India and a broader expansion across Asia. The factory in Thoothukudi will initially make 50,000 electric vehicles annually, with room to triple output to 150,000 cars. Given its proximity to a major port in one of India's most industrialized states, Vinfast hopes it will be a hub for future exports to the region. It says the factory will create more than 3,000 local jobs. The Vietnamese company says it scouted 15 locations across six Indian states before choosing Tamil Nadu. It's the center of India's auto industry, with strong manufacturing, skilled workers, good infrastructure, and a reliable supply chain, according to Tamil Nadu's Industries Minister T.R.B. Raaja. "This investment will lead to an entirely new industrial cluster in south Tamil Nadu, and more clusters is what India needs to emerge as a global manufacturing hub,' he said. VinFast Asia CEO Pham Sanh Chau said the company has aspirations to export cars across the region and it hopes to turn the new factory into an export hub. The new factory could also mark the start of an effort to bring other parts of the Vingroup empire to India. The sprawling conglomerate, founded by Vietnam's richest man Pham Nhat Vuong, began as an instant noodle company in Ukraine in the 1990s and now spans real estate, hospitals, schools and more. Chau said Tamil Nadu Chief Minister M.K. Stalin had invited the company to "invest in a big way' across sectors like green energy, smart cities and tourism, and said that the chief minister had "promised he will do all what is necessary for us to move the whole ecosystem here.' Vinfast's foray into India reflects a broader shift in strategy. The company increasingly is focusing on Asian markets after struggling to gain traction in the US and Europe. It broke ground last year on a $200 million EV assembly plant in Indonesia, where it plans to make 50,000 cars annually. It's also expanding in Thailand and the Philippines.
Kuwait Times
a day ago
- Kuwait Times
‘Win-win' and still pushing: Reactions to Trump tariffs
PARIS: Some nations reacted with relief Friday after US President Donald Trump announced tariffs that in some cases were lower than threatened, and delayed by a week to August 7. But others — including Switzerland and chip powerhouse Taiwan — still hope to negotiate lower rates, and uncertainty remains over transshipments and levies on Japanese cars. Trump's announcement does not cover export giant China — currently in negotiations on a trade deal ahead of an August 12 deadline. Here is how some other economies reacted: Canada Canada's Prime Minister Mark Carney said his government was 'disappointed' by Trump's decision to increase US tariffs on Canadian goods to 35 percent. Trump's order cited Canada's failure to stop fentanyl entering the United States. Carney outlined Ottawa's efforts to crack down on fentanyl and to increase border security. He said sectors of Canada's economy including lumber, steel, aluminium and automobiles were 'heavily impacted by US duties and tariffs'. Switzerland The government of Switzerland — a major US trading partner — expressed 'great regret' at the 39-percent tariff rate, despite its 'very constructive position' in talks. It said it 'still hopes to find a negotiated solution' to the dispute over the US trade deficit with Switzerland. South Africa South Africa will use the week-long delay of 30-percent tariffs to 'negotiate as strongly and as hard as we can' to avoid the penalty and save jobs, President Cyril Ramaphosa told reporters. South Africa has offered to import liquefied natural gas and some US agricultural products, the trade ministry said this week. It said South African firms have also committed to investing in US mining and metals-recycling industries and to pursuing joint investment in critical minerals, pharmaceuticals and agri-machinery. Thailand The 19-percent levy for Thailand and Cambodia — fresh from border clashes that killed over 40 people — is a let-off from the threatened 36 percent. Thailand called it a 'major success' and a 'win-win approach aimed at preserving Thailand's export base and long-term economic stability'. Cambodia Cambodian Prime Minister Hun Manet, called it 'the best news for the people and economy of Cambodia to continue to develop the country'. The major manufacturer of low-cost clothing for Western brands was initially menaced with a tariff of 40 percent. Taiwan Taiwanese President Lai Ching-te called its 20-percent tariff 'temporary... with the possibility of further reductions should an agreement be reached'. The US president had threatened to hit the island with a 32-percent tax and possible separate duties on the island's huge semiconductors shipments. Washington 'needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies,' Vice President Hsiao Bi-khim said recently. Japan A tariff of 15 percent agreed last week between Japan and Washington — down from a threatened 25 percent — is due to be applied from August 7. But Japanese auto exports were already being hit by a 25-percent rate, and Tokyo wants to know when this will be lowered too. 'We continue to urge the US to take prompt measures to implement the agreement, including lowering tariffs on automobile and auto parts,' Prime Minister Shigeru Ishiba said Friday. Confusion also surrounds Trump's claim that Japan — as a 'signing bonus' — will invest $550 billion in America, which will recoup 90 percent of the profits. Malaysia Malaysia also achieved a lower tariff of 19 percent — down from 25 percent — which the government called a 'positive outcome'. 'This decision by the United States reflects the strong and enduring economic ties between our two nations,' Trade and Industry Minister Zafrul Abdul Aziz said. Sri Lanka Sri Lanka also expressed relief that it will face a 20-percent hit, a sharp reduction from the 44 percent originally floated, and expressed hope of a further cut. 'We are happy that our competitiveness in exports to the US has been retained,' finance ministry official Harshana Suriyapperuma told reporters. Around 40 percent of Sri Lanka's $5.0 billion of garment exports last year went to the United States. — AFP
