Asia stocks mostly higher as tariff truce supports sentiment
US President Donald Trump extended a tariff truce with China by another 90 days on Monday, staving off triple-digit duties on Chinese goods, a move that was largely expected by investors and markets.
Investor sentiment in recent weeks has been supported by expectations of rate cuts by the US Federal Reserve, resilient US corporate earnings as well as clarity on US trade levies on trading partners.
Japan's Nikkei climbed to a record high and was last up 2 per cent as the country's markets reopened after a public holiday on Monday, tracking other global indices this year. Australia's benchmark index also hit a record high, ahead of a monetary policy meeting at which the central bank is widely expected to cut interest rates.
That left MSCI's broadest index of Asia-Pacific shares outside Japan a tad higher. China's blue-chip stocks were flat while Hong Kong's Hang Seng index eased 0.1 per cent in early trading.
Markets have held modest ranges in recent weeks, waiting to see whether the world's two largest economies can agree on a durable trade deal or if global supply chains will again be upended by the return of steep import levies.
The US-China tariff truce extension "preserves the status quo for now, so no immediate implications for investment markets," said Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.
The US and China have engaged in a tit-for-tat tariff duel throughout the year, culminating in trade talks in Geneva, London and Stockholm since May that focused on bringing retaliatory tariffs down from triple-digit levels.
The latest truce extension clears the way for investors to focus on an action-packed week dominated by US inflation data, a central bank policy decision in Australia and the first summit between US and Russian leaders since June 2021.
Traders are pricing in a 25 basis points rate cut later on Tuesday from the RBA with another cut expected by November. Investor attention will be on comments and forecasts from the central bank.
"The uncertainties are around its guidance, in particular whether it still sees further scope to cut rates and whether it will remain gradual and measured," said AMP's Oliver.
Globally, the spotlight will be on the release of US consumer price inflation data later on Tuesday. Economists polled by Reuters have forecast that month-on-month core CPI edged up 0.3 per cent in July, faster than the 0.2 per cent in the previous month.
"CPI will be a key test for market tone. Softer data could give small-caps a lift, but for now, mega-caps remain firmly in control," said Marc Velan, head of investments at Lucerne Investment Management.
An upside surprise on inflation may also add caution to market expectations of rate cuts by the Federal Reserve this year.
Investors are currently pricing in at least two rate cuts from the Fed in 2025 while J.P. Morgan expects the Fed to deliver four successive rate cuts starting in September.
In commodities, gold prices were last at US$3,354, having dropped nearly 1.6 per cent on Monday after Trump said tariffs will not be placed on imported gold bars.
Oil prices were steady ahead of the August 15 meeting between Trump and Russian President Vladimir Putin, aimed at negotiating an end to the war in Ukraine. The talks follow increased US pressure on Russia, raising the prospect of penalties on Moscow if a peace deal is not reached.
"The market is not pricing in significant outcomes from the meeting, but any shift in geopolitical tone could have marginal impact, particularly for commodities and certain emerging market assets," said Lucerne's Velan.
Currencies were mostly calm in early trading, with the dollar steady against major peers the euro and the yen. Cryptocurrencies bitcoin and ether were a tad lower after rallying in the previous session.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
13 minutes ago
- Malay Mail
Bulls charge Bursa to four-month high, riding US inflation surprise
KUALA LUMPUR, Aug 13 — Bursa Malaysia extended its winning streak to seven consecutive sessions, with the FBM KLCI closing at a four-month high, driven by US July inflation data that came in slightly below expectations at 2.7 per cent, boosting hopes of a Federal Reserve (Fed) rate cut in September. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 18.70 points, or 1.19 per cent, to close at 1,586.60 from yesterday's close of 1,567.90. The benchmark index opened 1.17 points firmer at 1,569.07, marking its day's low, and hit a high of 1,590.61 during the mid-morning session. The broader market was positive, with advancers trouncing decliners 686 to 390, while 491 counters were unchanged, 955 untraded and 18 suspended. Turnover improved to 2.71 billion units worth RM3.07 billion from 2.53 billion units worth RM2.15 billion yesterday. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the prospect of US monetary easing has directly influenced sectoral performance on Bursa Malaysia. 'The FBM Technology Index and the FBM Financial Services Index led the broader market, each advancing more than one per cent. 'Among the FBM KLCI constituents, telecommunications stocks were the top gainers, benefitting from investor rotation into defensive, high-dividend plays amid a stronger ringgit and a softer US dollar,' he told Bernama. He said that rising commodity prices lent additional support to palm oil and energy counters, underpinning the breadth of market gains. Meanwhile, market sentiment was also supported by upbeat regional market performance as well as easing trade tensions following the extension of a 90-day suspension on higher tariffs for Chinese goods. 'Investors are now turning their attention to the upcoming US producer price index and retail sales data due later this week,' he added. Among the heavyweights, Maybank added 15 sen to RM9.86, Public Bank gained 4.0 sen to RM4.44, Tenaga Nasional perked up 22 sen to RM13.80, CIMB rose 18 sen to RM7.19, and IHH Healthcare put on 9.0 sen to RM6.91. Of the most active counters, Sersol bagged 1.0 sen to 2.5 sen, Telekom Malaysia surged 23 sen to RM7.23, Classita inched down half-a-sen to 9.0 sen, Tanco fell 2.0 sen to RM70.5 sen, while Pharmaniaga was flat at 18.5 sen. — Bernama
Malay Mail
42 minutes ago
- Malay Mail
Living, not working, longer — Haslina Muhamad
AUGUST 13 — The question of whether Malaysia should increase its retirement age is not new, but it has gained renewed attention following the government's proposal under the 13th Malaysia Plan (RMK13) to gradually raise the official retirement age in response to longer life expectancy and economic pressures. The logic seems simple: if we live longer, shouldn't we work longer too? From a psychological perspective, the answer depends on more than just economics. Retirement is not merely a financial decision; it is a deeply personal transition that affects identity, purpose, and mental well-being. As a psychologist, I believe that whether working longer is 'better' depends not only on health and economics but also on the quality of work and how it aligns with the principles of cognitive psychology and positive psychology. Cognitive psychology teaches us that the brain thrives on stimulation. Just like muscles, our cognitive abilities stay sharper when regularly exercised. Work that involves decision-making, problem-solving, and meaningful social interaction can help preserve memory, focus, and mental agility well into later life. The opposite is also true; monotonous, highly stressful, or physically exhausting work can diminish mental well-being and accelerate burnout. From a psychological perspective, the answer depends on more than just economics. Retirement is not merely a financial decision; it is a deeply personal transition that affects identity, purpose, and mental well-being. — Unsplash pic Malaysian data backs this up. Findings from the Malaysia Ageing & Retirement Survey (MARS) show that one in five Malaysians aged 60 and above are still working, and that occupational engagement is linked to better cognitive scores in numeracy and verbal fluency. Notably, cognitively stimulating work appears to offer the greatest benefits, while physically stressful or low-control jobs may have the opposite effect, raising the risk of both physical and mental decline. A separate MARS analysis of over 5,500 adults revealed that a strong sense of purpose in life, a core concept in positive psychology, is independently associated with better memory, verbal fluency, and overall cognitive performance. This relationship holds true for both men and women, whether employed or retired, and is only partly explained by lifestyle or social factors. In other words, roles that preserve purpose, whether through paid work, mentoring, volunteering, or community leadership, may help sustain brain health as we age. But here is the cautionary note: the benefits of working longer depend heavily on the nature of the work. The landmark Whitehall Studies in the UK, which tracked thousands of civil servants over decades, found that those in lower-grade, lower-control jobs had significantly higher rates of heart disease, depression, and premature death, even though all participants had the same access to healthcare. Whitehall I showed that men in the lowest grades faced up to three times the mortality risk of those in the highest grades. Whitehall II expanded the scope to include women and revealed that low job control, lack of social support, and chronic work-related stress were strong predictors of poor health outcomes. The lesson for Malaysia is clear: extending working life without addressing job quality could harm, rather than help, older workers — especially those in high-demand, low-control roles. It's not enough to raise the retirement age; we must ensure that later-life jobs are designed to promote health, autonomy, and engagement. Positive psychology provides a framework for doing this. It emphasises three elements that keep people thriving: mastery, meaning, and connection. For some, working longer in a job they enjoy and excel at can be energising and fulfilling. For others, especially those whose jobs have become physically or mentally taxing, flexible pathways into less intense but still purposeful roles may be far more sustainable. These could include consultancy work, part-time roles, mentoring younger employees, or transitioning into community-based projects. We also have to recognise that ageing is not one-size-fits-all. A 65-year-old may be running marathons or recovering from major surgery. Some individuals may wish to continue contributing through work, while others may prefer to focus on family, health, or personal pursuits. This diversity means that the effects of later-life employment can differ significantly from one person to another. Ultimately, the question of whether to raise the retirement age in Malaysia involves multiple considerations, including health, job quality, personal preferences, and economic factors. Evidence suggests that the impact of working longer can vary widely depending on individual circumstances and the nature of the work. Any approach to this issue would need to account for the diversity of ageing experiences and the complex relationship between employment, well-being, and purpose in later life. *Associate Prof Dr Haslina Muhamad is an Associate Professor at the Department ofAnthropology and Sociology, Universiti Malaya, and may be reached at [email protected] ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
The Star
an hour ago
- The Star
Goh Cheng Liang remembered as a hardworking boss who cared for his employees
SINGAPORE: Goh Cheng Liang, Singapore's richest man in Forbes' 2025 list of global billionaires, was fondly remembered by close associates and employees for being a hardworking, caring boss. The founder of paint and coatings company Wuthelam Group died on Tuesday (Aug 12) morning at the age of 98 from prostate cancer, which he had lived with for 31 years. Goh held a majority stake in Japan's Nippon Paint Holdings and had an estimated net worth of US$13 billion (S$16.7 billion), according to Forbes. At his wake at the Garden of Remembrance, a Christian columbarium in Choa Chu Kang, those close to Goh told The Straits Times that the paint tycoon often stressed the importance of hard work and frugality to his employees. He was also known for remembering personal details about them, including the well-being of their children. Ong Chin Han, a sales manager at Nippon Paint Singapore, said when Goh used to visit the firm's factory in Jurong, he would arrive at lunch time and encourage employees to take their break, rather than ask about their work progress. 'Mr Goh took the effort to deeply understand his employees,' said Ong, who has been with the company for more than 37 years. 'Outside of work, he was very low profile and dressed simply, so people would not realise he was a big boss,' he added. Ong, who last saw Goh eight years ago, also said he was a generous man. 'I remember my father telling me he once 'had lunch' with Goh – I did not believe him at first, but I later found out Goh was dining in the same restaurant and had paid for everyone's meal,' he said. Budi Fintobuna, the president commissioner of Nippon Paint Indonesia, said he started working for Goh when he was 20 years old. 'Mr Goh wanted kind, loyal and honest people to support his business,' said Fintobuna, who flew into Singapore for the wake. 'Under him, I learnt the importance of being honest, hard working and was so successful because he was thrifty and never gave up.' Fintobuna said his boss visited Indonesia frequently between 1970 and 1980. In the early 1980s, Nippon Paint Indonesia - previously a joint venture between its Japanese shareholders and Goh - was sold to him following the rise of anti-Japanese sentiment during that period. 'When he came to Indonesia, (Goh) loved to sail and fish – we both loved the sea,' said Fintobuna. 'We would speak in English sometimes, but then he would speak to me in Malay just to joke around.' Fintobuna also said that Goh was a risk taker. 'If he liked a property, he would just buy it – there was no need for said that if you took too long to decide, someone else would buy it,' said Fintobuna. Li Shu Wei, Goh's most recent caretaker, said the tycoon enjoyed visiting hot springs in China, Taiwan and Japan. In his later years, when he needed a wheelchair during his trips, he would often say: 'Thank you, you have worked hard.' 'When Goh was in his eighties, he was still quite mobile. I was afraid he might fall, so I suggested he use a walking stick. But he was very strong-willed and told me he was strong and did not need it,' he said. 'It was only after three or four years that he finally agreed to use one.' Goh is survived by three children, Goh Hup Jin, Goh Chuen Jin and Goh Chiat Jin, as well as eight grandchildren and one great-grandchild. The wake will run until Aug 14. Among the attendees were Singapore Exchange chairman Koh Boon Hwee, who was chairman of Wuthelam Group from 1991 to 2000; former MP Ker Sin Tze; UOB Bank chief executive Wee Ee Cheong; and former foreign minister George Yeo. - The Straits Times/ANN
