Asian shares make modest gains as investors eye US-China talks
Asian shares were marginally higher on Tuesday as investors kept an eye on US-China trade talks that might help stave off a recession.
Tokyo's Nikkei 225 gained 0.9% to 38,445.68, while the Kospi in South Korea jumped 0.3% to 2,865.12.
Hong Kong's Hang Seng edged 0.3% higher, to 24,261.26 and the Shanghai Composite index was up 0.1% at 3,403.52. In Taiwan, the Taiex surged 2.1% to 22.253,46.
Australia's S&P/ASX 200 advanced just less than 0.9% to 8.588,10.
On Monday, the S&P 500 edged up just 0.1% and at 6,005.88 is within 2.3% of its record set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, to 42,761.76.
The Nasdaq composite added 0.3% to 19,591.24.
A second day of talks between the US and China was planned after the two global powers met in London for negotiations.
The hope is that they can eventually reach a deal to reduce painfully high tariffs against each other. Most of the tariff hikes imposed since US President Donald Trump escalated his trade war have been paused to allow trade in everything from tiny tech gadgets to enormous machinery.
Hopes that President Donald Trump will lower his tariffs after reaching trade deals with countries around the world have helped the S&P 500 win back gains after it dropped roughly 20% from its record two months ago. The index is back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on so-called 'Liberation Day'.
Some of the market's biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4bn (€2.1bn). IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08bn (€947.1mn).
On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products.
Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk's relationship with Trump broke apart, and it rose 4.6% on Monday after flipping between gains and losses earlier in the day.
The frayed relationship could end up damaging Musk's other companies that get contracts from the US government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX's expense, rose 2.5%.
In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers' expectations for coming inflation eased slightly in May.
Economists expect a report due on Wednesday to show that inflation across the country accelerated last month to 2.5% from 2.3%.
The Federal Reserve has been keeping its main interest rate steady as it waits to assess the inflationary effects of Trump's tariffs. A persistent increase in inflation expectations among US households could drive behaviour that creates a vicious cycle that only worsens inflation.
In other dealings early on Tuesday, US benchmark crude oil picked up 31 cents to $65.45 per barrel. Brent crude, the international standard, also gained 31 cents, to $67.35.
The dollar rose to 144.93 Japanese yen from 144.61 yen. The euro slipped to $1.1399 from $1.1421.
L'Oréal has acquired a majority stake in the UK's Medik8 as it seeks to expand its position in the skincare market, the French beauty giant confirmed on Monday.
As part of the deal, private equity firm Inflexion will remain a minority shareholder, and the current management committee will also stay in their roles.
The cost of the stake is officially undisclosed, although the Financial Times reported last week that the potential deal was worth around €1bn.
L'Oréal's share price was roughly unchanged on the news.
'We are delighted to welcome Medik8 to the L'Oréal family,' said Cyril Chapuy, President of L'Oréal LUXE. 'As a premium skincare range, with high levels of proven efficacy at an accessible price point, Medik8 perfectly complements our existing skincare portfolio,' he added.
L'Oréal has been seeking to capitalise on the boom in science-driven skincare, partly driven by social media influencers.
Brands already under its 'Dermatological Beauty Division' include La Roche-Posay, Cerave, Vichy, Skinceuticals, and Skinbetter Science.
This unit brought in over €7bn in revenue in 2024, representing an almost 10% year-on-year rise, making it L'Oréal's fastest-growing division.
Seeking to expand its portfolio, L'Oréal bought soap maker Aesop in 2023, and Korean beauty brand Dr.G in December.
Last year, L'Oréal also acquired a 10% stake in skincare firm Galderma, as well as acquiring the beauty licence for Miu Miu.
At the time of the Galderma deal, the French firm said it was 'increasingly investing in a more holistic approach, spanning the entire beauty routine' — thereby 'anticipating and intercepting the signs of skin ageing'.
Medik8, founded in 2009, specialises in anti-ageing treatments and was bought by UK-based private equity firm Inflexion in 2021.
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