Markets Rise As Trump Chip Exemptions Boost Tech Giants
The advances built on a strong lead from Wall Street and extended the previous day's rally fuelled by hopes the Federal Reserve will cut interest rates next month.
A day before sweeping tariffs were due to come into effect on dozens of countries, the president said: "we're going to be putting a very large tariff on chips and semiconductors".
He added that the level would be "100 percent" but did not offer a timetable.
However, he said "the good news for companies like Apple is, if you're building in the United States, or have committed to build... in the United States, there will be no charge".
Stock gains were led by Taiwan's giant TSMC, which surged almost five percent in early trade, with the island's National Development Council chief Liu Chin-ching saying the firm was in the clear.
"Because Taiwan's main exporter is TSMC, which has factories in the United States, TSMC is exempt," he told a briefing in parliament.
TSMC, which is ramping up manufacturing in Arizona, has pledged to invest as much as $165 billion in the United States, which the firm said in March was the "largest single foreign direct investment in US history".
Seoul-listed Samsung, which is also pumping billions into the world's number one economy, rose more than two percent while South Korean rival SK hynix was also up.
Apple-linked firms were also helped after the US giant said it will invest an additional $100 billion in the United States, taking its total pledge to $600 billion over the next four years.
Foxconn and Pegatron both rose in Taipei.
However, Tokyo Electron and Renesas both retreated in Japanese trade.
"To some degree this outcome would be something of a relief," said Morgan Stanley analysts.
"Yes, 100 percent tariffs are unpalatable but if companies are given time to restore them, the real tax is just the higher cost of building chips in the United States."
Trump's remarks came hours before his wide-ranging "reciprocal" tariffs are set to kick in against trading partners, and after he doubled his levy on India to 50 percent over its purchase of Russian oil.
Fifty percent tolls on Brazilian goods came into place Wednesday, with significant exemptions, after Trump targeted Latin America's biggest economy over its prosecution of former president Jair Bolsonaro.
Investors are keeping tabs on talks between the White House and New Delhi, as well as other countries including Switzerland, which was this week hammered with a 39 percent toll.
Asian markets extended their recent run-up and have regained much of last week's losses sparked by the president's tariff announcements and weak US jobs data.
Tokyo, Hong Kong, Shanghai, Singapore, Seoul and Wellington were all in the green, with Taipei leading the way thanks to the surge in TSMC.
The gains followed a strong day on Wall Street, where Apple jumped more than five percent and Amazon piled on four percent.
Traders had already been on a buying streak as they grew optimistic that the Fed will cut rates after data last week showing US jobs creation cratered in May, June and July, signalling the economy was weakening. US futures rose Thursday.
Oil prices rose after Trump threatened penalties on other countries that "directly or indirectly" import Russian oil, after imposing his extra toll on India.
Still, traders are keeping tabs on developments regarding Moscow and its war in Ukraine after the US president said he could meet with Vladimir Putin "very soon" following what he called highly productive talks between his special envoy and the Russian leader.
Tokyo - Nikkei 225: UP 0.8 percent at 41,114.68 (break)
Hong Kong - Hang Seng Index: UP 0.3 percent at 24,985.53
Shanghai - Composite: UP 0.1 percent at 3,636.23
Euro/dollar: DOWN at $1.1657 from $1.1659 on Wednesday
Pound/dollar: DOWN at $1.3355 from $1.3358
Dollar/yen: UP at 147.50 yen from 147.38 yen
Euro/pound: UP at 87.29 pence from 87.23 pence
West Texas Intermediate: UP 0.9 percent at $64.93 per barrel
Brent North Sea Crude: UP 0.9 percent at $67.47 per barrel
New York - Dow: UP 0.2 percent at 44,193.12 (close)
London - FTSE 100: UP 0.2 percent at 9,164.31 (close)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
24 minutes ago
- Int'l Business Times
Accumulating Bitcoin A Risky Digital Rush By Companies?
US President Donald Trump's media group and Tesla, the electric carmaker owned by tech billionaire Elon Musk, are among an increasing number of companies buying huge amounts of bitcoin. The aim? To diversify reserves, counter inflation and attract investors, analysts say. Companies frequently own bitcoin -- the largest cryptocurrency by market capitalisation -- to take part in sector activities such as "mining", which refers to the process of validating transactions in exchange for digital tokens. Tesla has previously accepted payments in bitcoin, while Trump Media soon plans to offer crypto investment products. Other players who had core operations totally unrelated to cryptocurrency, such as Japanese hotel business MetaPlanet, have switched to buying bitcoin. US firm Strategy, initially a seller of software under the name MicroStrategy, holds more than three percent of all bitcoin tokens, or over 600,000. Its co-founder Michael Saylor "created real value for its original set of investors" by offering the opportunity to invest in shares linked to cryptocurrencies, Andy Constan, chief executive of financial analysts Damped Spring Advisors, told AFP. This was five years ago when other financial products allowing investment in cryptocurrencies, without a need to directly own tokens, were not permitted. Companies collect bitcoins "to diversify" their cash flow and "counter the effects of inflation", said Eric Benoist, a tech and data research expert for Natixis bank. Some struggling companies are riding the trend in a bid to "restore their image" by "backing themselves with an asset perceived as solid and one that appreciates over time", he added. Strategy's current focus is on accumulating bitcoin, simply to attract investors interested in the currency's potential. Bitcoin can also have a simple practical use, as in the case of the Coinbase exchange, which uses its own reserves as collateral for its users. Bitcoin's value has soared around ninefold in five years, fuelled recently by US regulatory changes under Trump, a strong backer of the crypto sector. However, the unit's volatility is four times greater than that of the main US stock index, the S&P 500, according to Campbell Harvey, a professor of finance at Duke University in the United States. Harvey warns against using a company's cash reserves, "their safe haven", to buy crypto. Bitcoin's price, currently around $117,000, has in recent years been boosted by large holders of cryptocurrency, referred to as "whales". Harvey argues that in the case of "major buyer" Strategy, liquidating all their 600,000 bitcoin tokens is no simple task owing to the high value. "Assuming that you could liquidate all of those bitcoin at the market price is a heroic assumption," he told AFP, adding such a deal would see the cryptocurrency's price plummet. Jack Mallers, chief executive and co-founder of bitcoin-focused company Twenty One Capital, said his business embraced the sector's volatility, adding the market would need to be flooded for the token's price to crash. According to its own calculation, Strategy's stock is selling at about 70 percent above the value of its bitcoin reserves. The company -- which did not answer AFP's request for comment -- is growing thanks to bitcoin purchases, which in turn is attracting investors and pushing up its share price. But ultimately it will need to monetise these crypto assets, for example by linking them to financial products, for its business to be sustained. Should Strategy and other so-called "bitcoin treasury funds" fail to do so, Benoist fears the crypto investment bubble will burst. He points out that the strategy of accumulation runs counter to the original philosophy of bitcoin, which was conceived in 2008 as a decentralised means of payment. Today, "bitcoins end up in electronic safes that are left untouched", he said.
DW
an hour ago
- DW
Trump to host Armenia and Azerbaijan leaders – DW – 08/08/2025
Donald Trump is set to host the leaders of long-time adversaries Armenia and Azerbaijan. Nikol Pashinyan and Ilham Aliyev will join the US president at the White House "to pursue economic opportunities," Trump said. US President Donald Trump is to host a "peace summit" on Friday between long-time adversaries Armenia and Azerbaijan at the White House. Trump announced the summit via his Truth Social platform, saying Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan would both be attending. "President Aliyev AND Prime Minister Pashinyan will join me at the White House for an official Peace Signing Ceremony," Trump posted. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Sworn enemies for decades, Armenia and Azerbaijan have twice gone to war over the disputed Karabakh region, which Azerbaijan recaptured from Armenian forces in a 2023 offensive, sparking the exodus of more than 100,000 ethnic Armenians. The two former Soviet republics have held talks aimed at securing a peaceful resolution, including last month in the United Arab Emirates, but a breakthrough has so far proved elusive. "These two Nations have been at War for many years, resulting in the deaths of thousands of people," Trump wrote. "Many Leaders have tried to end the War, with no success, until now, thanks to 'TRUMP.' My Administration has been engaged with both sides for quite some time," he added, saying he was "very proud of these courageous Leaders for doing the right thing." Friday "will be a Historic Day for Armenia, Azerbaijan, the United States, and, THE WORLD," Trump said. The US president also said that Washington will sign bilateral deals with both nations "to pursue Economic opportunities together, so we can fully unlock the potential of the South Caucasus Region." The latest diplomatic push from Washington comes a day after Cambodian Prime Minister Hun Manet said he had nominated Trump for a Nobel Peace Prize. Trump has repeatedly praised his own diplomatic efforts, saying he deserves the prize, He has long-since vowed to end the war in Ukraine, though has yet to yield any results, with Russia's full-scale invasion at the three-and-a-half year mark. Trump has grown increasingly frustrated as his efforts continue to fall on deaf ears, at least in Moscow. Conflict in Gaza is still raging while the United States is one of three countries which account for almost all of Israel's weapons supply, along with Germany and Italy. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Int'l Business Times
6 hours ago
- Int'l Business Times
Indonesia Cracks Down On Pirate Protest Flag
Indonesia is cracking down on a viral pirate flag that is spreading as a symbol of political protest ahead of independence day. The Jolly Roger skull and bones with a straw hat -- from Japanese anime series "One Piece" -- has been fluttering from a rising number of trucks, cars and homes. Officials warn the "provocation" -- seen by many as a protest against President Prabowo Subianto's policies -- should not fly alongside the country's red-and-white flag. The pirate banner was taken up by disgruntled truck drivers earlier this summer, but has recently snowballed into an online and real-life movement. "I personally raised the One Piece flag because the red and white flag is too sacred to be raised in this corrupt country," Khariq Anhar, a 24-year-old university student in Sumatra's Riau province, told AFP. "I believe freedom of speech in Indonesia exists, but it is very limited. Voicing your opinion is getting more dangerous." Government officials say the flag's use is an attempt to divide the nation. They warn it may be banned from flying next to Indonesia's colours, or being raised on August 17 -- the 80th independence anniversary after Japan's surrender at the end of World War II. "It is imperative we refrain from creating provocation with symbols that are not relevant to this country's struggle," chief security minister Budi Gunawan said in a statement last week. Ministers have cited a law that prohibits flying a symbol higher than the national flag as the basis for any punishment. Under that law, intent to desecrate, insult or degrade the flag carries a maximum prison sentence of five years or a fine of nearly $31,000. State Secretary Minister Prasetyo Hadi on Tuesday said Prabowo had no issue with the "expression of creativity", but the two flags "should not be placed side by side in a way that invites comparison", local media reported. A presidency spokesman did not respond to an AFP question about its position on the pirate flag, which was put two days earlier. Experts say unhappy Indonesians are using the flag as a way to express anti-government feeling indirectly, with some of Prabowo's economic and defence policies causing concern about democratic backsliding. "Symbols like the pirate flag let people channel frustration without spelling it out," said Dedi Dinarto, lead Indonesia analyst at advisory firm Global Counsel. "It reflects a public sentiment that parts of the country have been 'hijacked'." Others, like food seller Andri Saputra, who has flown the pirate ensign below an Indonesian flag at his home for a week, say they want to be able to decide what symbols they display. "I want to be free to express my opinion and express myself," the 38-year-old said in Boyolali regency in Central Java. "This is just a cartoon flag from Japan." Online culture has been a popular channel for Indonesian dissatisfaction against perceived government corruption and nepotism. Japanese anime is popular in Indonesia, and in the best-selling 'One Piece' manga series created in 1997, the flag represents opposition to an authoritarian world government. In February, protests known as 'Dark Indonesia' began against Prabowo's widespread budget cuts, sparked by a logo posted on social media showing a black Indonesian mythical Garuda bird alongside the words 'Emergency Warning'. Other rallies in 2016 and 2019 were also sparked online, and Dedi says the government may be worried that "this follows the same digital playbook". There is also a generational divide, with older locals viewing the Indonesian flag as hard-won after centuries of colonial rule, while younger Indonesians see the new movement as an expression of disappointment. "They just want Indonesia to get better, but... they can only express it through the 'One Piece' flag," said Ismail Fahmi, founder of Indonesian social media monitor Drone Emprit. Police in Banten Province neighbouring capital Jakarta and West Java Province, Indonesia's most populous, have threatened action if the flag is flown next to the nation's colours. One printing business owner in Central Java told AFP on condition of anonymity that his facility was raided by plain-clothes police on Wednesday evening to halt its production of the pirate emblem. Rights groups have called the response excessive and say Indonesians are allowed to wave the flag by law. "Raising the 'One Piece' flag as a critic is a part of the freedom of speech and it is guaranteed by the constitution," said Amnesty International Indonesia executive director Usman Hamid. Despite the government's threats, some young Indonesians are still willing to risk walking the plank of protest. "Last night my friend and I went around the town while raising a One Piece flag," said Khariq on Wednesday. "If the government has no fear of repressing its own people, we shouldn't be scared to fight bad policies." Government officials say the pirate flag's use is an attempt to divide the nation and warn it may be banned from flying next to Indonesia's colours AFP The pirate banner was taken up by disgruntled truck drivers earlier this summer, but has recently snowballed into an online and real-life movement AFP In the popular 'One Piece' manga series created in 1997, the flag represents opposition to an authoritarian world government AFP A factory owner says plain-clothes police raided his facility to stop production of the emblem AFP
