
Asian stocks extend gains on trade hopes as Nikkei nears record
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was up 0.4%, hitting a near four-year peak after U.S. stocks ended the previous session at a record high.
The bullish mood is set to continue in Europe. The pan-European futures were up 1.17%, German DAX futures were up 1.15% and FTSE futures were up 0.39%.
Tokyo's broad Topix gauge of shares (.TOPX), opens new tab and Singapore's benchmark index (.STI), opens new tab both crossed above previous highs, while the Nikkei 225 (.N225), opens new tab extended Wednesday's gains to within reach of its record high hit last year.
Traders are speculating that the U.S. may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week.
"There's nothing like a trade deal with a big trading nation - and deals with the Philippines and Indonesia, and the prospect of a deal in the offing for Europe - for markets to throw away all their caution," NAB's senior market strategist Gavin Friend said on a podcast. "Yields are higher and everything seems rosy at the moment."
Markets were relatively subdued after the White House said that U.S. President Donald Trump will visit the Federal Reserve on Thursday, a surprise move that escalates tension between the administration and Chair Jerome Powell. The Fed is expected to hold rates steady next week.
"The purpose of Trump's visit to the Fed is unclear but it may be a move to pressure Powell and the Fed to cut rates and it comes just a few days before the next Fed policy meeting at the end of this month," said Vasu Menon, managing director of investment strategy at OCBC.
The yield on benchmark 10-year Treasury notes was steady at 4.3937%. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 3.8908%.
The dollar dropped 0.31% against the yen to 146.03 . It is still some distance from its low this year of 139.89 in April. The euro last fetched $1.1774, after hitting a more than two-week high earlier in the session.
The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 97.156. The gauge has dropped over 10% this year as investors scurry for alternatives in the wake of Trump's erratic trade policies.
Second-quarter earnings are well underway, with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data.
In Asia, South Korean chipmaker SK Hynix (000660.KS), opens new tab and India's Infosys (INFY.NS), opens new tab provided rosy outlooks in their latest earnings reports, shrugging off U.S. trade uncertainty.
Investors will watch out for the policy decision from the ECB later on Thursday as trade talks between Washington and Brussels continue. The central bank is expected to keep interest rates on hold, pausing after seven straight cuts.
Investors generally expect one more ECB rate cut by the end of the year, most likely in December.
Trump has threatened to impose a 30% duty on EU goods but two diplomats said on Wednesday the EU and the U.S. were heading towards a deal that would result in a broad tariff of 15% applying to EU goods.
Oil prices rose on speculation the trade deal would support global growth and after a sharper-than-expected decline in U.S. crude inventories. U.S. crude ticked up 0.52% to $65.59 a barrel.
Gold was slightly lower as easing trade tensions dented demand for safe-haven assets, overshadowing support from a weaker dollar. Spot gold was traded at $3,382.79 per ounce.

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The Independent
29 minutes ago
- The Independent
Vietnam wants to be the next Asian tiger and it's overhauling its economy to make it happen.
Beneath red banners and a gold bust of revolutionary leader Ho Chi Minh in Hanoi 's central party school, Communist Party chief To Lam declared the arrival of 'a new era of development' late last year. The speech was more than symbolic— it signaled the launch of what could be Vietnam's most ambitious economic overhaul in decades. Vietnam aims to get rich by 2045 and become Asia's next 'tiger economy' — a term used to describe the earlier ascent of countries like South Korea and Taiwan. The challenge ahead is steep: Reconciling growth with overdue reforms, an aging population, climate risks and creaking institutions. There's added pressure from President Donald Trump over Vietnam's trade surplus with the U.S., a reflection of its astounding economic trajectory. In 1990, the average Vietnamese could afford about $1,200 worth of goods and services a year, adjusted for local prices. Today, that figure has risen by more than 13 times to $16,385. Vietnam's transformation into a global manufacturing hub with shiny new highways, high-rise skylines and a booming middle class has lifted millions of its people from poverty, similar to China. But its low-cost, export-led boom is slowing, while the proposed reforms — expanding private industries, strengthening social protections, and investing in tech, green energy. It faces a growing obstacle in climate change. 'It's all hands on can't waste time anymore," said Mimi Vu of the consultancy Raise Partners. The export boom can't carry Vietnam forever Investment has soared, driven partly by U.S.-China trade tensions, and the U.S. is now Vietnam's biggest export market. Once-quiet suburbs have been replaced with industrial parks where trucks rumble through sprawling logistics hubs that serve global brands. Vietnam ran a $123.5 billion trade surplus with the U.S. trade in 2024, angering Trump, who threatened a 46% U.S. import tax on Vietnamese goods. The two sides appear to have settled on a 20% levy, and twice that for goods suspected of being transshipped, or routed through Vietnam to avoid U.S. trade restrictions. During negotiations with the Trump administration, Vietnam's focus was on its tariffs compared to those of its neighbors and competitors, said Daniel Kritenbrink, a former U.S. ambassador to Vietnam. 'As long as they're in the same zone, in the same ballpark, I think Vietnam can live with that outcome," he said. But he added questions remain over how much Chinese content in those exports might be too much and how such goods will be taxed. Vietnam was preparing to shift its economic policies even before Trump's tariffs threatened its model of churning out low-cost exports for the world, aware of what economists call the 'middle-income trap,' when economies tend to plateau without major reforms. To move beyond that, South Korea bet on electronics, Taiwan on semiconductors, and Singapore on finance, said Richard McClellan, founder of the consultancy RMAC Advisory. But Vietnam's economy today is more diverse and complex than those countries were at the time and it can't rely on just one winning sector to drive long-term growth and stay competitive as wages rise and cheap labor is no longer its main advantage. It needs to make 'multiple big bets,' McClellan said. Vietnam's game plan is hedging its bets Following China's lead, Vietnam is counting on high-tech sectors like computer chips, artificial intelligence and renewable energy, providing strategic tax breaks and research support in cities like Hanoi, Ho Chi Minh City, and Danang. It's also investing heavily in infrastructure, including civilian nuclear plants and a $67 billion North–South high-speed railway, that will cut travel time from Hanoi to Ho Chi Minh City to eight hours. Vietnam also aspires to become a global financial center. The government plans two special financial centers, in bustling Ho Chi Minh City and in the seaside resort city of Danang, with simplified rules to attract foreign investors, tax breaks, support for financial tech startups, and easier ways to settle business disputes. Underpinning all of this is institutional reform. Ministries are being merged, low-level bureaucracies have been eliminated and Vietnam's 63 provinces will be consolidated into 34 to build regional centers with deeper talent pools. Private business to take the lead Vietnam is counting on private businesses to lead its new economic push — a seismic shift from the past. In May, the Communist Party passed Resolution 68. It calls private businesses the 'most important force' in the economy, pledging to break away from domination by state-owned and foreign companies. So far, large multinationals have powered Vietnam's exports, using imported materials and parts and low cost local labor. Local companies are stuck at the low-end of supply chains, struggling to access loans and markets that favored the 700-odd state-owned giants, from colonial-era beer factories with arched windows to unfashionable state-run shops that few customers bother to enter. 'The private sector remains heavily constrained," said Nguyen Khac Giang of Singapore's ISEAS–Yusof Ishak Institute. Again emulating China, Vietnam wants 'national champions' to drive innovation and compete globally, not by picking winners, but by letting markets decide. The policy includes easier loans for companies investing in new technology, priority in government contracts for those meeting innovation goals, and help for firms looking to expand overseas. Even mega-projects like the North-South High-Speed Rail, once reserved for state-run giants, are now open to private bidding. By 2030, Vietnam hopes to elevate at least 20 private firms to a global scale. But Giang warned that there will be pushback from conservatives in the Communist Party and from those who benefit from state-owned firms. A Closing Window from climate change Even as political resistance threatens to stall reforms, climate threats require urgent action. After losing a major investor over flood risks, Bruno Jaspaert knew something had to change. His firm, DEEP C Industrial Zones, houses more than 150 factories across northern Vietnam. So it hired a consultancy to redesign flood resilience plans. Climate risk is becoming its own kind of market regulation, forcing businesses to plan better, build smarter, and adapt faster. 'If the whole world will decide it's a can go very fast,' said Jaspaert. When Typhoon Yagi hit last year, causing $1.6 billion in damage, knocking 0.15% off Vietnam's GDP and battering factories that produce nearly half the country's economic output, roads in DEEP C industrial parks stayed dry. Climate risks are no longer theoretical: If Vietnam doesn't take strong action to adapt to and reduce climate change, the country could lose 12–14.5% of its GDP each year by 2050, and up to one million people could fall into extreme poverty by 2030, according to the World Bank. Meanwhile, Vietnam is growing old before it gets rich. The country's 'golden population' window — when working-age people outnumber dependents — will close by 2039 and the labor force is projected to peak just three years later. That could shrink productivity and strain social services, especially since families — and women in particular — are the default caregivers, said Teerawichitchainan Bussarawan of the Centre for Family and Population Research at the National University of Singapore. Vietnam is racing to pre-empt the fallout by expanding access to preventive healthcare so older adults remain healthier and more independent. Gradually raising the retirement age and drawing more women into the formal workforce would help offset labor gaps and promote "healthy aging,' Bussarawan said. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at


BBC News
29 minutes ago
- BBC News
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Paul Moseley BBC political reporter, Norfolk BBC Norwich market is one of the oldest open-air markets in Britain Seven out of 10 people have backed the idea of redesigning a city's historic marketplace after a public survey, a council has said. Earlier this year Norwich City Council launched a consultation on ideas - including a central court to the market, which dates back to the 11th Century. It was the most popular of three options – with the other two being smaller squares or a covered arcade running through the site. Councillor Carli Harper said the aim of revamping the market was to make it "one of the best places for shoppers and tourists in Europe". Norwich Market was last redeveloped in 2006, when its wooden stalls were replaced with covered metal units. When the Labour-run authority revealed plans to update it, it warned that "ageing infrastructure" was limiting its potential. Greig & Stephenson Architects Adding a central court to the market was the most favoured option in the survey It said it would spend £740,000 on plans, which would include a new layout and other upgrades including new shutters and CCTV cameras. The council said more than 2,800 people had responded to its survey on the future of Norwich Market. It found 29% of people taking part favoured the central court idea and 22% supported smaller squares, with 19% saying an arcade was the best option. But 30% of respondents said they would prefer no change at all. The survey results also showed that 67% of people wanted more seating in or around the market, whilst 57% said live music would make them want to visit in the evening. Greig & Stephenson Architects An arcade running through the middle of the market was the least popular option with survey respondents The council said it would now work on a "detailed business plan" ahead of any final decisions being made. Harper said her "main takeaway" from the results was that "a large majority of respondents want to see some kind of change to the market". "The challenge now is how we make Norwich Market even better and meet the needs of future consumers, address the views of market traders, ensuring the market retains its medieval magic while making it one of the best places for shoppers and tourists in Europe," she said. Follow Norfolk news on BBC Sounds, Facebook, Instagram and X. Related internet links


Reuters
29 minutes ago
- Reuters
Morning Bid: Stock markets celebrate mild inflation data
TOKYO, Aug 13 (Reuters) - A look at the day ahead in European and global markets from Rocky Swift Record highs are popping up on stock markets all over the world, from Wall Street to Japan and Vietnam, and equity indexes across Asia are a sea of green. Data in the United States and other major markets are falling into a Goldilocks zone of not-too-hot inflation that allows central banks to keep the easy money flowing. The MSCI All Country World Index (.MIWD00000PUS), opens new tab of shares reached a new all-time high, as did Japan's Nikkei (.N225), opens new tab gauge, which smashed through the 43,000 level for the first time. Bitcoin's cryptocurrency rival ether jumped to a near four-year high. Traders are pricing in a 94% chance the Federal Reserve will cut its key interest rate in September, up from nearly 86% a day ago and about 57% a month earlier, according to the CME FedWatch tool. The central bank in Australia cut rates yesterday and New Zealand's is expected to follow suit next week. The Bank of Japan's long-anticipated rate hike keeps getting kicked down the road. A Reuters poll that tracks the BOJ's quarterly tankan business survey showed Japanese manufacturers' sentiment index improved for a second-straight month, while another report showed the nation's wholesale inflation slowed in July. Left in the cold is the dollar, still the biggest loser since U.S. President Donald Trump began his on-again, off-again tariff saga in April. A new problem for the greenback is concern that partisanship will creep into U.S. monetary policy and the sanctity of economic data. Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the Fed. And the White House said it was "the plan" that the Bureau of Labor Statistics would continue to publish its closely watched monthly employment report after Trump's pick to head the agency, E.J. Antoni, previously proposed suspending its release. It's a light calendar for data and earnings in Europe and the U.S., and equity futures are pointing another day of gains in both markets. Meanwhile, small bands of Russian soldiers thrust deeper into eastern Ukraine, with Trump planning to meet Russian President Vladimir Putin in Alaska on Friday in search of an end to the war. European leaders fear the summit could result in peace terms imposed on an unlawfully shrunken Ukraine. Key developments that could influence markets on Wednesday: - Germany final consumer price index (CPI) data for July - United Kingdom RICS Housing Survey for July