Nikkei ends lower on caution ahead of Trump tariff deadline
The Nikkei fell 0.56% to close at 39,587.68, after opening marginally lower.
The broader Topix slipped 0.57% to 2,811.72.
'Investors turned bearish when they saw a small decline in the Nikkei and sold more stocks,' said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
'The market was awaiting any details of the US tariffs. Investors wanted to stay away from buying stocks until the details became clear,' he said.
The United States is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.
Yaskawa Electric tanked 10.29% to become the biggest percentage loser on the Nikkei.
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Express Tribune
3 hours ago
- Express Tribune
Air Canada workers picket airports after flight attendants strike over wages
People hold placards as a strike begins after the union representing Air Canada's 10,000 flight attendants failed to reach an agreement with the airline, at Montreal-Pierre Elliott Trudeau International Airport in Dorval, Quebec, Canada August 16, REUTERS Hundreds of Air Canada employees formed picket lines outside major Canadian airports and business leaders sought government intervention on Saturday, hours after unionized flight attendants walked off the job over a wage contract dispute. The strike, which started just before 1 a.m. EDT (0500 GMT), forced Canada's largest airline to cancel all of its 700 daily flights, affecting more than 100,000 travelers who had to find alternative flights or stay put. The airline said in a statement on Saturday that it has started locking out thousands of flight attendants in response to the strike action. The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the Canadian Union of Public Employees said was insufficient. CUPE, representing more than 10,000 Air Canada flight attendants, confirmed the work stoppage in a social media post. It is the first strike by Air Canada flight attendants since 1985. Wesley Lesosky, president of the Air Canada component of CUPE, said in a press conference in Toronto that, as of Saturday morning, there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months. Read More: Canada sheds 40,800 jobs as tariffs dent hiring "We are here because Air Canada forces us to work for free for hours and hours every day, and we are here because we are not going to accept it anymore," he said. Outside Toronto Pearson International Airport - the country's busiest - hundreds of cabin crew waved flags, banners and picket signs. Union officials called on members to assemble outside all of the country's major airports, including in Toronto, Montreal, Calgary and Vancouver. Montreal-based Air Canada said the suspended flights included those operated by its budget arm, Air Canada Rouge. The stoppage would affect about 130,000 customers a day, the carrier said in a statement. Flights by Air Canada's regional affiliates - Air Canada Jazz and PAL Airlines - will operate as usual. Wage dispute The dispute between the union and the airline centers on wages. Attendants are currently paid only when their plane is moving. The union is seeking compensation for time spent on the ground between flights and when helping passengers board. A US judge kept his block on President Donald Trump's buyout plan for federal employees in place on Monday. The union has said Air Canada offered to compensate flight attendants for some work that is now unpaid but only at 50% of their hourly rate. A source close to the negotiations told Reuters the union is looking for parity on wages with Canadian leisure carrier Air Transat, where flight attendants approved a contract last year that provided for total compounded increases of 30% over five years, making them the highest paid in the industry in Canada. Air Canada did not confirm if such a proposal had been put forth by the union. "What we're asking for is not unreasonable. It is not a high demand. It is not that far off other competitors such as Air Transat. It is realistic and it is deserved," Lesosky from CUPE said. The impact of a strike will ripple far beyond Canada. Air Canada is the busiest foreign carrier servicing the U.S. by number of scheduled flights.
Express Tribune
16 hours ago
- Express Tribune
Oil and gas output hits 20-year low
Amid renewed hopes of US investment in Pakistan's oil sector, spurred by recent tweets from former US President Donald Trump hinting at greater American involvement in local exploration and implying potential crude supply to India, Pakistan has recorded its weakest oil and gas production in more than two decades. Industry data for fiscal year 2025 (FY25) shows a steep double-digit drop in both crude oil and natural gas output, deepening concerns over energy security and foreign exchange pressures. Analysts warn the downturn, driven by structural imbalances, regulatory measures, and surplus imported LNG, could deepen in the year ahead, adding pressure to the country's foreign exchange reserves and energy security. Pakistan's oil and gas sector recorded its weakest output in more than two decades during fiscal year 2025 (FY25), as surplus regasified liquefied natural gas (RLNG) in the system forced a curtailment of local production. According to a report by Topline Securities, hydrocarbon output fell sharply, with crude oil volumes down 12% year-on-year (YoY) and natural gas output slipping 8% YoY. The downturn accelerated in the final quarter, with oil production dropping 8% quarter-on-quarter (QoQ) and 15% YoY, while gas production contracted by 7% QoQ and 10% YoY, underscoring persistent strain on the sector. The surplus RLNG was driven in part by a policy shift that diverted captive industrial users from natural gas to the national power grid. Compounding the pressure, the government imposed an "off-grid levy" on captive gas consumption at a rate of Rs791 per million British thermal units (mmbtu), pushing the total cost to Rs4,291/mmbtu. This made electricity generation via gas more expensive than grid supply, further discouraging industrial gas use and reducing demand for domestic production. Oil output averaged 62,400 barrels per day (bpd) in FY25, with volumes falling across major fields by between 3% and 46%. Key producers such as Makori East, Nashpa, Maramzai, Pasakhi, and Mardankhel all saw declines. The Tal Block, which accounts for roughly 17% of Pakistan's total oil production, posted a steep 22% YoY decline in the fourth quarter alone. Within the block, production from the Maramzai and Mardankhel fields plunged by 54% and 52% YoY, respectively, highlighting the severity of the downturn. Gas output averaged 2,886 million cubic feet per day (mmcfd) in FY25, with major fields also under pressure. Qadirpur and Nashpa recorded the steepest contractions in the fourth quarter, down 36% and 34% YoY, respectively, largely due to curtailment by the Sui gas companies. Even the Sui field itself, Pakistan's largest gas producer, reported consistent declines, reflecting the sector-wide impact of the RLNG oversupply and shifting demand patterns. The cutback in domestic production has had significant macroeconomic consequences. Topline Securities estimates that the increased reliance on imported fuels, necessitated by the reduced local output, placed an additional strain of more than $1.2 billion on Pakistan's foreign exchange reserves during FY25. Analysts warn that this not only inflates the import bill but also exposes the country to greater vulnerability from global fuel price swings and potential supply disruptions. Looking ahead, the outlook remains challenging. Topline projects that oil production will hover between 58,000-60,000 bpd in FY26, while gas output is expected to remain in the range of 2,750-2,850 mmcfd. Without a reversal of current policies or new investment in exploration and production (E&P), FY26 could mark the third consecutive year of declining hydrocarbon volumes. There is, however, a potential opening for recovery. The government is set to renegotiate its long-term RLNG supply agreement with Qatar in March 2026. Industry observers believe that more flexible contract terms could give domestic E&P companies the space to ramp up production, provided field maintenance and capital expenditure remain on track. Balancing imported LNG supply with the need to sustain indigenous production, they note, will be critical to ensuring Pakistan's energy security and protecting its fragile foreign exchange position.
Express Tribune
16 hours ago
- Express Tribune
Reserves edge up, rupee gains for 4th week
Pakistan's foreign exchange reserves recorded a slight improvement during the week ended August 8, 2025, with the State Bank of Pakistan (SBP) holdings rising $11 million to $14.243 billion. According to data released by the central bank, the country's total liquid foreign reserves stood at $19.497 billion. Of this, commercial banks held net reserves of $5.254 billion, while the SBP accounted for the remaining $14.243 billion. Moreover, on Friday, the SBP injected around Rs12 trillion into the banking system through a reverse repo auction. The market operation included Rs191 billion for seven-day tenors at 11.04% and Rs11.812 trillion for 14-day tenors at 11.01%. The Pakistani rupee extended its upward momentum, marking its fourth consecutive week of gains against the US dollar. According to Ismail Iqbal Securities, the local currency appreciated 0.06% day-on-day to close at 282.06 against the greenback. On a calendar-year-to-date basis, however, the rupee has depreciated 1.25%, while in the current fiscal year to date, it has gained 0.60%. AKD Securities noted that the rupee gained for the fourth consecutive week against the US dollar. Meanwhile, gold prices in Pakistan fell, tracking global trends, where the yellow metal edged higher but remained on course for a weekly loss as hotter-than-expected US inflation data dampened prospects of near-term interest rate cuts. Market attention has shifted to the much-anticipated meeting between US President Donald Trump and Russian President Vladimir Putin. In the local market, the price of gold per tola dropped Rs1,000 to Rs357,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The price of 10-gram gold also declined, settling at Rs306,155, after a decrease of Rs858. Earlier in the week, on Wednesday, gold had slipped by Rs200 per tola to Rs358,100. Interactive Commodities Director Adnan Agar noted that the gold market has seen limited movement, with prices fluctuating within a narrow range of about $10 to $15. "The market is relatively stable because of the Russia-US summit. Any significant shift will likely be seen on Monday once the outcome of talks becomes clear," he said. Spot gold rose 0.2% to $3,342.62 per ounce by 11:16 am EDT (1516 GMT), but was down 1.7% for the week, according to Reuters.
