Asian stocks slide on weak China data, copper price slump
SINGAPORE : Asian equities slipped today after weaker-than-expected Chinese activity data and a plunge in copper prices, while investors weighed a trade deal between South Korea and the US.
The dollar held near a two-month high as investors weighed a Federal Reserve (Fed) decision to hold rates steady and strong earnings from megacap tech firms.
Nasdaq futures surged 1.2% higher after better-than-expected earnings from and Meta Platforms.
S&P 500 futures advanced 0.8%, while the US dollar held steady after hitting a two-month high.
Both companies' earnings reports 'have shot the lights out', reporting higher revenue from cloud computing and AI-enabled ad targeting, respectively, said Tony Sycamore, a market analyst at IG in Sydney.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.7%, though still on track for its fourth consecutive monthly gain in July.
Stocks in Hong Kong and China led declines after official PMI gauges showed weaker-than-expected economic activity during July.
Markets are now awaiting the Bank of Japan's monthly policy decision later in the day, with traders looking for any hints that governor Kazuo Ueda may offer on the likelihood of another rate hike this year.
The Fed's rate-setting committee voted 9-2 yesterday to hold interest rates steady for the fifth consecutive meeting, with two Fed governors dissenting for the first time in more than three decades.
Fed chair Jerome Powell's comments after the decision undercut confidence that borrowing costs would begin to fall in September.
'It will take the next two months of data to convince Fed officials that tariff effects will only lead to modest, one-time price increases and that policy rates should head toward neutral,' analysts from Citi said in a note.
The dollar index was at 98.812, just shy of the two month high of 99.987 it touched yesterday.
The index is set to clock a 3.1% gain for the month, its first in 2025.
'Although the Fed decided to keep rates steady at its recent rate setting decision, the chance of rate cuts at upcoming meetings remain live as they balance softening economic data with the potential for persistent inflation,' said Manusha Samaraweera, fixed income investment director at Capital Group.
US gross domestic product growth rebounded more than expected in the second quarter, but the details of the report painted a picture of an economy that was losing steam plagued by uncertainty from Trump's protectionist trade policy.
The Korean won appreciated 0.3% after Trump said the US will charge a 15% tariff on imports from South Korea, which will in return invest US$350 billion in US projects and purchase US$100 billion in US energy products.
The announcement is the latest in a series of trade policy deals rushed out before an Aug 1 deadline to avert the imposition of the April 2 'Liberation Day' tariffs. These deals continue to cast a shadow on global markets.
Copper futures plunged 19.4% after Trump said the US will impose a 50% tariff on copper pipes and wiring, as the details of the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes.
Trump said yesterday negotiations on trade with India are still under way after announcing earlier the US will impose a 25% tariff on goods imported from the country.
Meanwhile, the US will also suspend its 'de minimis' exemption that allowed low-value commercial shipments to be shipped to the US without facing tariffs.
The tax break is a mainstay of China's low-cost e-commerce platforms such as Shein and PDD's Temu.
In commodities, oil prices rose for a fourth straight day today, as investors worried about supply shortages amid Trump's push for a swift resolution to the war in Ukraine and threats of tariffs on countries buying Russian oil.
Brent crude futures for September delivery, which are set to expire today, rose 0.33%, to US$73.48 a barrel, while US West Texas Intermediate crude for September gained 0.21% to US$70.15 a barrel.
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Malay Mail
2 hours ago
- Malay Mail
Big Oil's big reckoning: Why energy companies must reinvent or fade — Ahmad Ibrahim
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With more than 140 countries pledging to reach net-zero emissions by mid-century, demand for fossil fuels is approaching a long, irreversible decline. Even the world's largest fund managers now factor sustainability risks into investment decisions, increasingly avoiding companies perceived as climate laggards. Covid-19 delivered a brutal wake-up call. Energy demand plummeted. Oil prices crashed. Petronas, like its global peers, was forced into difficult decisions. The recent job cuts are not isolated belt-tightening, but early symptoms of an industry forced to rethink its very reason for being. Sure, trimming overheads can shore up quarterly numbers. But it won't future-proof the business. Energy companies can no longer afford to think like fossil fuel producers; they must start behaving like integrated energy providers. The future belongs to companies that can offer clean, reliable, and affordable energy solutions — and that means going well beyond oil and gas. Some oil majors have already taken bold steps. BP is repositioning itself as an integrated energy company, investing heavily in renewables and electric vehicle charging networks. Total has rebranded as TotalEnergies, reflecting its diversified energy portfolio. Even ExxonMobil, once a vocal sceptic of climate risks, is now pumping money into carbon capture and low-carbon solutions. Despite the stand taken by President Trump, there is no stopping the transition away from fossil fuels. Petronas has made initial moves into solar energy and green hydrogen, but these efforts need to be scaled rapidly. The longer it waits, the harder the catch-up will be. Experts agree on five moves energy companies must make. To stay profitable — and relevant — energy companies need more than incremental tweaks. They need reinvention. The future is clean energy. Solar, wind, hydrogen, and energy storage are where the growth lies. Energy companies should aggressively diversify their portfolios before being left behind. The skills used in offshore drilling, mega-project management, and complex logistics are transferable. These companies can lead in offshore wind, large-scale hydrogen, and carbon capture projects. Industrial clients and governments increasingly demand integrated, low-carbon energy options. Packaging natural gas, renewables, and carbon offset services is a smart, future-ready play. Workforce transformation is key. The energy workforce must pivot from traditional oilfield roles to clean tech, digital energy systems, and smart grid management. Developing integrated energy parks, waste-to-energy systems, and rural electrification projects not only creates new revenue streams but also builds public trust and national resilience. The energy transition isn't a distant risk — it's here. And it's accelerating. The companies that survive won't be the ones clinging to the past but those bold enough to shape the future. For Petronas and its global peers, this is a defining moment. Reinvent, diversify, and lead the transition — or watch profitability, relevance, and public support steadily erode The choice is clear. The clock is ticking. Since oil and gas is essentially about mining. The closest option that Malaysia should consider is rare earth metals. The country is holding substantial deposits of this new critical metals group. Exploration studies have uncovered their presence in most of the states of the country. But extracting them requires technologies which must consider their environmental impacts. But processing them is not an issue since Malaysia has many years of world class experience at Lynas. Despite all those time-wasting baseless concerns, Lynas survived. 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Malay Mail
3 hours ago
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Made in Malaysia, taxed in America, sold back at triple the price: Here's how the US trade tariff could affect us
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The Star
5 hours ago
- The Star
HK universities see success in drive to attract more top talent from abroad
HONG KONG: Professor Gao Yang, a prominent scholar in the fields of robotics and aerospace, left King's College London to join the Hong Kong University of Science and Technology (HKUST) in May after being approached to take up new roles there. While her move back to Asia was primarily driven by her family's needs, she said Hong Kong's current focus on developing its scientific fields at a world-class level as a strategic driver for long-term growth was a major pull factor for her. At the same time, the geopolitical and economic climates elsewhere in the world – in particular, Western countries – have become increasingly challenging for academics to navigate. Said Prof Gao: 'Compared with the greater uncertainties in the UK and Europe, the situation in Hong Kong in terms of the volume and scale of support poured into research, innovation and commercialisation looks a lot more positive, stable and sustainable. The investment in (my field of) aerospace programming definitely seems more determined and committed.' The mainland China-born academic, who has spent 20 years teaching in the United Kingdom after a decade of studying in Singapore, now heads HKUST's Centre for AI Robotics in Space Sustainability as well as its Space Science and Technology Institute, and teaches at its department of mechanical and aerospace engineering. Professor Gao Yang said she was drawn by Hong Kong's current focus on developing its scientific fields at a world-class level. Prof Gao is one of the successes that Hong Kong is seeing in its drive to attract more international talent to teach at the city's top universities. It comes as the Asian financial hub ramps up efforts to develop its artificial intelligence and science, technology, engineering and mathematics (Stem) industries as engines to power future growth in the city. The city has also been increasingly aligning its economic development with China's objectives, which include ramping up technological innovation and scientific research in competition with the United States. Statistics from some Hong Kong universities have shown a notable rise in new faculty appointments from abroad. But that many of these scholars are of mainland Chinese origin has raised some concerns about talent diversity. HKUST, one of the city's eight publicly funded universities, said it had 'welcomed more than 100 top scholars and scientists from mainland China, the United States, Germany, France, South Korea, Singapore and other countries' since it started a global recruitment campaign in October 2022. It 'aims to hire another 100 faculty members', the university told The Straits Times. The Chinese University of Hong Kong (CUHK), also publicly funded, told ST it had 'recruited over 150 leading international and promising young scholars from 15 regions including mainland China, Taiwan, Singapore, South Korea, Australia, New Zealand, Europe and North America' since 2023. Its programmes have been 'attracting top non-local research talents to Hong Kong to participate in innovation and technology development', it added. Hong Kong's education chief Christine Choi also revealed in April that 'world-renowned professors from US institutions are relocating to Hong Kong', driven by tighter visa policies and geopolitical tensions affecting traditional Western study destinations. She declined, however, to provide more details, citing a 'need for discretion to ensure smooth transitions'. Among prominent international scholars who have relocated to Hong Kong over the past year are meteorologist Chen Fei, who worked at the US National Centre for Atmospheric Research for 26 years, and Harvard University-trained economist Jin Keyu, who was a tenured professor at the London School of Economics for 15 years. Both academics joined HKUST. HKUST has been among the most proactive of the city's tertiary institutions in taking advantage of global developments to attract international talent, academics and students alike, to Hong Kong. In May, it promised unconditional offers to Harvard University students immediately after the US government moved to halt foreign enrolment at the college. In Britain, the flagging economy has affected research funding for many academics, as grants are based on a proportion of the country's gross domestic product, noted Prof Gao. 'As this situation carries on, it is likely to affect more domains and bring more academics to Asia,' she told ST. Of her experience in Hong Kong so far, Prof Gao said she was 'completely surprised and amazed by the proactive engagement from sectors including the decision-making think-tanks, businesses, the government and industry to build dialogue' in her field. 'Such seamless collaboration between the scientific community and think-tanks will help make a more profound impact on society beyond just academia,' she added. Over at CUHK, global Stem scholar and prominent mathematics professor Wei Juncheng moved back to Hong Kong in late 2024 after 11 years of teaching at the University of British Columbia (UBC) in Canada. Professor Wei Juncheng said tensions between the US and China have spilt over into Canada, affecting academia as well. Prior to his stint at UBC, Wuhan-born Professor Wei, 57, had taught for 18 years at CUHK after obtaining his doctorate from the University of Minnesota in the US. 'In the last few years, tensions between the US and China have somehow also spilled over into Canada, affecting the environment in academia as well,' Prof Wei told ST. 'Applying for research grants has become more difficult and political for some academics (in Canada),' he said, adding that many mainland-born scholars applying for funding were now required to fill up more forms delving into their backgrounds and specify that they were not researching in areas of strategic sensitivity or those that would help China. Tighter visa restrictions have also impeded global exchanges as the once-frequent Chinese government-sponsored academic visitors can no longer obtain visas to visit Canadian universities for learning and collaboration, he added. There have also been reports of the Chinese authorities restricting educators from leaving the country or visiting universities overseas. Prof Wei said he has observed a large and growing number of mainland-origin academics leaving the West in recent years. 'Despite having been educated in the US, many of my mainland-born academia friends there have moved back to China, with the influx accelerating especially in 2025,' he said. 'I chose to return to Hong Kong as I'm already familiar with CUHK's environment and I still prefer the internet and academic freedom we enjoy here.' The recent inflow of internationally trained scholars into Hong Kong comes after the city's public universities reported a record number of academic staff departures two years ago. Some 7.6 per cent of staff, or 380 out of about 5,000 in the eight institutes, quit in the 2022/2023 academic year, while 7.4 per cent left the year before. The departures coincided with a mass exodus of both local and foreign talent following the Covid-19 pandemic and the imposition of a national security law in Hong Kong in 2020. Some analysts have raised concerns, however, that those hired to fill the vacancies are tilted heavily towards mainland-born scholars, potentially affecting academic diversity. Mainland-origin academics have outnumbered their local counterparts at nearly all of the eight publicly funded universities since 2023. Some 41 per cent of all of the institutes' academic staff are now from mainland China, according to official data. Student numbers in Hong Kong's universities have also increasingly veered towards mainlanders, accounting for 74 per cent of the city's pool of non-local first-year students in the 2024/2025 academic year. Hong Kong's growing number of mainland-born academics is due to both push and pull factors, according to Associate Professor Alfred Wu from the Lee Kuan Yew School of Public Policy in Singapore. 'The push factor is the increasing difficulty for these scholars to continue operating in the West, while the pull factor is that – with Hong Kong now paying a lot more attention to research that integrates well into the Greater Bay Area's (GBA) development plans – it makes academic collaboration much smoother for these scholars, as they understand mainland Chinese culture much better,' Prof Wu told ST. The GBA refers to the region comprising Hong Kong, Macau and nine cities in mainland China's Guangdong province. But the consequent drop in diversity within academia could hinder the city's ability to innovate, adapt to global changes and maintain its competitiveness as an international hub, Prof Wu suggested. 'People need to think long term – having diversity means that we try to reduce our risks by not putting all our eggs into one basket,' he said. 'Decreasing diversity in Hong Kong universities may not be a problem now, but the situation may be different a decade or two down the road if Hong Kong's focus for growth has to shift away from its alignment with mainland China.' - The Straits Times/ANN
