Japan's Nikkei ends lower as court battle over US tariffs weighs
TOKYO: Japan's Nikkei share price average ended lower on Friday, weighed down by uncertainty surrounding a court battle about US President Donald Trump's tariffs as well as a stronger yen which hurt exporters.
The Nikkei index fell 1.22 per cent to close at 37,965.1, having ended the previous trading session at its highest point in more than two weeks. It rose 2.17 per cent over the week.
The broader Topix fell 0.37 per cent to 2,801.57 and rose 2.41 per cent for the week.
"Japanese shares rose yesterday on expectations that the impact of Trump's tariffs on the global economy would be eased, but that positive mood was erased overnight," said market analyst Shuutarou Yasuda at Tokai Tokyo Intelligence Laboratory.
A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday, a day after a trade court ruled that the president had exceeded his authority in imposing the duties and ordered an immediate block on them.
The US dollar fell following the news, pushing the yen as high as 143.45 on Friday.
Strong inflation data on Friday for Japan's capital also helped the yen to strengthen, strategists said.
Automakers fell, with Nissan Motor and Honda Motor slipping 3.13 per cent and 1.87 per cent, respectively. Toyota Motor erased early loss to end 1.26 per cent higher.
A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.
Chip-related shares fell, with Advantest and Tokyo Electron down 3.61 per cent and 4.76 per cent respectively, to drag on the Nikkei the most.
Bucking the trend, drugmakers rose, with Otsuka Holdings jumping 6.82 per cent to provide the biggest support for the Nikkei.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 57 per cent rose, 38 per cent fell and 3 per cent were flat.
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Malay Mail
2 hours ago
- Malay Mail
Courtroom tariff wars: Time for Malaysia to build a tariff-proof economy — Yap Wen Min
MAY 31 — On 29 May 2025, a US appeals court temporarily brought back President Trump's sweeping 'Liberation Day' tariffs, just one day after a trade court ruled them illegal. It was a reminder that recent shifts in US trade policy today are shaped not just by economic logic but by political swings — and even the courts now play a role in moderating that balance. For global partners like Malaysia, that means preparing for a world where trade rules are constantly doubted. According to BNM's Monetary Policy Statement (8 May 2025), the tariff measures announced by the US, along with retaliatory actions, have weakened the outlook on global growth and trade. The central bank also highlighted that the balance of risks to Malaysia's growth outlook is tilted to the downside, with references to external factors such as trade tensions and geopolitical uncertainties. Malaysia is among the countries subjected to these elevated tariffs, with a 24 per cent tariff on its exports to the US, justified by Washington as a response to trade imbalances — but applied without consultation. According to the Malaysia External Trade Development Corporation (MATRADE), the rationale behind Malaysia's 24 per cent tariff was based on the US administration's calculation of trade imbalances. In a Presidential Memorandum issued on 2 April 2025, President Donald Trump declared that under the International Emergency Economic Powers Act (IEEPA), large and persistent US goods trade deficits are a threat to national security. The memorandum also stated that its large trade deficits were mainly due to lack of reciprocity in bilateral trade relationships, disparate tariff rates, non-tariff barriers, and economic policies of key trading partners that suppress domestic wages and consumption. The tariffs, which targeted imports from most US trading partners including Malaysia, were introduced under the rationale of correcting 'unfair trade imbalances' (The White House, 2025). Earlier, in February 2025, Trump's administration had separately imposed additional tariffs on China, Mexico, and Canada for enabling the fentanyl crisis. This earlier line of tariffs adds another layer of complexity to the broader trade picture leading into the April 'Liberation Day' announcement. Even if the method of setting 24 per cent for Malaysia may look rational on paper, the way it was applied outside multilateral frameworks and without prior consultation makes it part of a larger erosion of predictable, rules-based trade. Indeed, it has already created ripple effects across supply chains and investment flows. A report by Fitch Ratings also highlighted that these tariffs could lead to increased costs and operational challenges for companies reliant on cross-border trade. In response to these challenges, Malaysia has sought to deepen its economic ties with other partners. Notably, during a state visit by Chinese President Xi Jinping to Kuala Lumpur in April 2025, Malaysia and China signed over 30 bilateral cooperation agreements aimed at enhancing trade and investment relations. These agreements are part of Malaysia's strategy to diversify its trade partnerships and mitigate the impact of US tariffs. At the Asean summit in Kuala Lumpur on 27 May 2025, Southeast Asian leaders reached a consensus that any bilateral trade agreements with the United States regarding tariffs should not negatively impact other member nations. Prime Minister Anwar Ibrahim, serving as ASEAN Chair, emphasized the importance of this unified stance to protect the region's collective economic interests amid global market volatility and the imposition of US-led tariffs that could impose duties ranging from 32 per cent to 49 per cent on six Asean countries. He also announced efforts to engage US President Trump directly to discuss these measures. Trucks drive past containers at the Port of Ningbo-Zhoushan in Ningbo, in China's eastern Zhejiang Province on May 28, 2025. — AFP pic We are entering a period where the rules of global trade are increasingly subject to reinterpretation. Legal challenges, geopolitical shifts, and executive orders constantly reshape what used to be predictable. For Malaysia, reacting case-by-case to new tariffs is no longer enough. In this uncertain climate, what's needed now is a structural, forward-looking strategy to insulate the economy from tariff shocks — positioning Malaysia not just as a victim of trade volatility but as a resilient and indispensable player in global supply chains. By 'tariff-proof', it implies making the economy resilient — able to withstand sudden tariff shocks without stopping growth or investment. Our strategy must tariff-proof the economy by diversifying risk and deepening competitiveness. Reshore and diversify supply chains Malaysia should scale up efforts to attract high-value manufacturing, especially in electronics and semiconductors, by capitalising on the global 'China +1' shift. Multinationals are already looking for alternatives outside China, and Malaysia is the front-runner in Southeast Asia for that trend. Leading global technology companies, including Microsoft, Google, and Oracle, have made substantial investments in Malaysia, reinforcing the country's position as a pivotal hub in the global semiconductor and digital infrastructure sector. The government can speed this up by offering targeted incentives like tax breaks, upgraded infrastructure, and workforce training to attract factories and R&D centres in strategic sectors. At the same time, developing more domestic capacity for key components — or sourcing them from trusted trade partners — would help buffer the impact if US tariffs or Chinese export controls disrupt critical supplies. Expand export support and insurance Even with diversification, Malaysian exporters will face new trade risks. The government should enhance trade finance and risk mitigation tools so that firms can weather tariff shocks. While Malaysia already provides export credit guarantees and market development grants, these should be boosted and made more flexible. It is also crucial to streamline export credit insurance, raise funding caps on trade missions, and help SMEs adapt products for new markets (e.g., halal certification, digital marketing) as recommended by the Federation of Malaysian Manufacturers. Such measures make Malaysian exports tariff-resilient by lowering the cost of finding and developing non-US buyers or adapting to changing rules. Position Malaysia as a trusted, neutral hub Geopolitically, Malaysia's strength lies in neutrality and multilateralism. As the chair of Asean, Malaysia has led calls for trade deals that don't harm neighbours, and this should be translated into concrete policy. For example, the government can work with Asean partners to create a formal Supply Chain Coordination Council. Regional coordination — such as pooled risk-sharing or regional sourcing strategies — can protect Asean economies from the impact of unilateral trade actions. On the home front, Malaysia should continue improving the ease of doing business with trade-friendly customs and financing. We should also promote our currency and banking as alternatives for regional trade settlement to ease heavy reliance on any one superpower's currency. In the US, our diplomat tells Washington that Malaysia is an ally with secure markets and reliable suppliers. We should similarly cultivate ties with China and Europe, offering to host assembly of goods that neither power wants to fully onshore. By actively marketing Malaysia as a stable bridge, we turn uncertainty into opportunity. None of these steps will be easy, but other countries are already moving in similar directions. In short, Malaysia must make its economy tariff-proof — by reshoring key supply lines, expanding export credit and insurance, steering investment into future-ready industries, and leveraging our neutral stance. By doing so, we show investors worldwide that Malaysia is a safe harbour amid trade turbulence. * This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Malay Mail
2 hours ago
- Malay Mail
Iran reiterates nuclear weapons ‘unacceptable' as US talks continue
TEHRAN, May 31 — Foreign Minister Abbas Araghchi said today that Iran considers nuclear weapons 'unacceptable,' reaffirming the country's longstanding position amid delicate negotiations with the United States. TEHRAN, May 31 — Foreign Minister Abbas Araghchi said Saturday that Iran considers nuclear weapons 'unacceptable,' reaffirming the country's longstanding position amid delicate negotiations with the United States. Western governments have long suspected Iran of seeking to develop a nuclear weapons capability to counter the widely suspected but undeclared arsenal of its arch-foe, Israel. 'If the issue is nuclear weapons, yes, we too consider this type of weapon unacceptable,' Araghchi, Iran's lead negotiator in the talks, said in a televised speech. 'We agree with them on this issue.' Araghchi's remarks came a day after US President Donald Trump said Iran 'cannot have a nuclear weapon', while expressing hope of striking a deal soon. On Thursday, Araghchi hit out at what he called 'media speculation' that the two sides were close to an agreement, saying he was 'not sure if' a deal is 'imminent'. Iran has held five rounds of talks with the United States in search of a new agreement to replace the deal with major powers that Trump abandoned during his first term in 2018. No date or venue has yet been announced for the next round but Araghchi said Wednesday he expected an announcement from mediator Oman in the 'next few days'. The two governments are at odds over Iran's uranium enrichment programme, which Washington has said must cease, but which Tehran insists is its right under the nuclear Non-Proliferation Treaty. Very good talks Nonetheless, Trump said Wednesday that 'we're having some very good talks with Iran', adding that he had warned Israeli Prime Minister Benjamin Netanyahu against striking its nuclear facilities as it would not be 'appropriate right now'. Israel has repeatedly threatened military action, after pummelling Iranian air defences during two exchanges of fire last year. Trump has not ruled out military action but said he wants space to make a deal first, and has also said that Israel, and not the United States, would take the lead in any such strikes. Trump adopted a 'maximum pressure' policy against Tehran after abandoning the 2015 agreement and reimposed the sweeping sanctions which the deal had lifted in return for UN-monitored restrictions on Iran's nuclear activities. Iran continued to honour the agreement for a year, but then began rolling back its own compliance with its terms. Iran has since built up the largest stockpile of highly enriched uranium of any state without a nuclear arsenal. The uranium is enriched to 60 percent, still short of the 90 percent threshold needed for a nuclear warhead but far beyond the 3.67 percent limit set by the 2015 agreement. In recent days, Tehran has said that if a deal is reached, it may consider allowing US inspectors to join the teams from the UN nuclear watchdog monitoring compliance with its terms. Nuclear chief Mohammad Eslami said Iran 'will reconsider accepting American inspectors through the (International Atomic Energy) Agency' if 'an agreement is reached and Iran's demands are taken into account'. — AFP TEHRAN, May 31 — Foreign Minister Abbas Araghchi said Saturday that Iran considers nuclear weapons 'unacceptable,' reaffirming the country's longstanding position amid delicate negotiations with the United States. Western governments have long suspected Iran of seeking to develop a nuclear weapons capability to counter the widely suspected but undeclared arsenal of its arch-foe, Israel. 'If the issue is nuclear weapons, yes, we too consider this type of weapon unacceptable,' Araghchi, Iran's lead negotiator in the talks, said in a televised speech. 'We agree with them on this issue.' Araghchi's remarks came a day after US President Donald Trump said Iran 'cannot have a nuclear weapon', while expressing hope of striking a deal soon. On Thursday, Araghchi hit out at what he called 'media speculation' that the two sides were close to an agreement, saying he was 'not sure if' a deal is 'imminent'. Iran has held five rounds of talks with the United States in search of a new agreement to replace the deal with major powers that Trump abandoned during his first term in 2018. No date or venue has yet been announced for the next round but Araghchi said Wednesday he expected an announcement from mediator Oman in the 'next few days'. The two governments are at odds over Iran's uranium enrichment programme, which Washington has said must cease, but which Tehran insists is its right under the nuclear Non-Proliferation Treaty. Very good talks Nonetheless, Trump said Wednesday that 'we're having some very good talks with Iran', adding that he had warned Israeli Prime Minister Benjamin Netanyahu against striking its nuclear facilities as it would not be 'appropriate right now'. Israel has repeatedly threatened military action, after pummelling Iranian air defences during two exchanges of fire last year. Trump has not ruled out military action but said he wants space to make a deal first, and has also said that Israel, and not the United States, would take the lead in any such strikes. Trump adopted a 'maximum pressure' policy against Tehran after abandoning the 2015 agreement and reimposed the sweeping sanctions which the deal had lifted in return for UN-monitored restrictions on Iran's nuclear activities. Iran continued to honour the agreement for a year, but then began rolling back its own compliance with its terms. Iran has since built up the largest stockpile of highly enriched uranium of any state without a nuclear arsenal. The uranium is enriched to 60 percent, still short of the 90 percent threshold needed for a nuclear warhead but far beyond the 3.67 percent limit set by the 2015 agreement. In recent days, Tehran has said that if a deal is reached, it may consider allowing US inspectors to join the teams from the UN nuclear watchdog monitoring compliance with its terms. Nuclear chief Mohammad Eslami said Iran 'will reconsider accepting American inspectors through the (International Atomic Energy) Agency' if 'an agreement is reached and Iran's demands are taken into account'. — AFP Western governments have long suspected Iran of seeking to develop a nuclear weapons capability to counter the widely suspected but undeclared arsenal of its arch-foe, Israel. 'If the issue is nuclear weapons, yes, we too consider this type of weapon unacceptable,' Araghchi, Iran's lead negotiator in the talks, said in a televised speech. 'We agree with them on this issue.' Araghchi's remarks came a day after US President Donald Trump said Iran 'cannot have a nuclear weapon', while expressing hope of striking a deal soon. On Thursday, Araghchi hit out at what he called 'media speculation' that the two sides were close to an agreement, saying he was 'not sure if' a deal is 'imminent'. Iran has held five rounds of talks with the United States in search of a new agreement to replace the deal with major powers that Trump abandoned during his first term in 2018. No date or venue has yet been announced for the next round but Araghchi said Wednesday he expected an announcement from mediator Oman in the 'next few days'. The two governments are at odds over Iran's uranium enrichment programme, which Washington has said must cease, but which Tehran insists is its right under the nuclear Non-Proliferation Treaty. Very good talks Nonetheless, Trump said Wednesday that 'we're having some very good talks with Iran', adding that he had warned Israeli Prime Minister Benjamin Netanyahu against striking its nuclear facilities as it would not be 'appropriate right now'. Israel has repeatedly threatened military action, after pummelling Iranian air defences during two exchanges of fire last year. Trump has not ruled out military action but said he wants space to make a deal first, and has also said that Israel, and not the United States, would take the lead in any such strikes. Trump adopted a 'maximum pressure' policy against Tehran after abandoning the 2015 agreement and reimposed the sweeping sanctions which the deal had lifted in return for UN-monitored restrictions on Iran's nuclear activities. Iran continued to honour the agreement for a year, but then began rolling back its own compliance with its terms. Iran has since built up the largest stockpile of highly enriched uranium of any state without a nuclear arsenal. The uranium is enriched to 60 percent, still short of the 90 percent threshold needed for a nuclear warhead but far beyond the 3.67 percent limit set by the 2015 agreement. In recent days, Tehran has said that if a deal is reached, it may consider allowing US inspectors to join the teams from the UN nuclear watchdog monitoring compliance with its terms. Nuclear chief Mohammad Eslami said Iran 'will reconsider accepting American inspectors through the (International Atomic Energy) Agency' if 'an agreement is reached and Iran's demands are taken into account'. — AFP
Malay Mail
2 hours ago
- Malay Mail
Steel and aluminum tariffs raised to 50pc as Trump highlights Nippon investment
WASHINGTON, May 31 — US President Donald Trump said yesterday that he would double steel and aluminum import tariffs to 50 per cent from next week, the latest salvo in his trade wars aimed at protecting domestic industries. "We're going to bring it from 25 percent to 50 percent, the tariffs on steel into the United States of America," he said while addressing workers at a US Steel plant in Pennsylvania. "Nobody's going to get around that," he added in the speech before blue-collar workers in the battleground state that helped deliver his election victory last year. Shortly after, Trump wrote in a Truth Social post that the elevated rate would also apply to aluminum, with the new tariffs "effective Wednesday, June 4th." Since returning to the presidency in January, Trump has imposed sweeping tariffs on allies and adversaries alike in moves that have rocked the world trade order and roiled financial markets. He has also issued sector-specific levies that affect goods such as automobiles. He defended his trade policies, arguing that tariffs helped protect US industry. He added that the steel facility he was speaking in would not exist if he had not also imposed duties on metals imports during his first administration. Devil in the details On Friday, Trump touted a planned partnership between US Steel and Japan's Nippon Steel, but offered few new details on a deal that earlier faced bipartisan opposition. He stressed that despite a recently announced planned partnership between the American steelmaker and Nippon Steel, "US Steel will continue to be controlled by the USA." He added that there would be no layoffs or outsourcing of jobs by the company. Upon returning to Washington yesterday, Trump told reporters he had yet to approve the deal. "I have to approve the final deal with Nippon, and we haven't seen that final deal yet, but they've made a very big commitment," Trump said. Last week, Trump said that US Steel would remain in America with its headquarters to stay in Pittsburgh, adding that the arrangement with Nippon would create at least 70,000 jobs and add US$14 billion to the US economy. Trump in Pennsylvania said that as part of its commitment, Nippon would invest US$2.2 billion to boost steel production in the Mon Valley Works-Irvin plant where he was speaking. Another US$7 billion would go towards modernizing steel mills, expanding ore mining and building facilities in places including Indiana and Minnesota. A proposed US$14.9 billion sale of US Steel to Nippon Steel had previously drawn political opposition from both sides of the aisle. Former president Joe Biden blocked the deal on national security grounds shortly before leaving office. There remain lingering concerns over the new partnership. The United Steelworkers union (USW) which represents thousands of hourly workers at US Steel facilities said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration, "nor were we consulted." "We cannot speculate about the meaning of the 'planned partnership,'" said USW International President David McCall in a statement. "Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work," McCall said. "The devil is always in the details," he added. Trump had opposed Nippon Steel's takeover plan while on the election campaign trail. But since returning to the presidency, he signaled that he would be open to some form of investment after all. — AFP
