logo
Asian shares rally ahead of US-China trade talks

Asian shares rally ahead of US-China trade talks

Yahooa day ago

HONG KONG (AP) — Shares rose in Asia on Monday ahead of the second round of trade talks between Washington and Beijing, due later in the day in London.
Tokyo's Nikkei 225 gained 1.1% to 38,137.09 as the government reported that the Japanese economy contracted by 0.2% in the January-March quarter.
In South Korea, the Kospi added 1.9% to 2,865.52.
Chinese markets rose even though the government reported that exports slowed in May, growing 4.8% from a year earlier after a jump of more than 8% in April. Exports to the United States fell nearly 10% compared with a year earlier.
China also reported that consumer prices fell 0.1% in May from a year earlier, marking the fourth consecutive month of deflation.
Hong Kong's Hang Seng picked up 1.4% to 24,119.64 while the Shanghai Composite Index climbed 0.4% to 3,397.13.
Australia's market was closed for a public holiday.
On Friday, stocks gained ground on Wall Street following a better-than-expected report on the U.S. job market.
The gains were broad, with every sector in the S&P 500 rising. That solidified a second consecutive winning week for the benchmark index, which has rallied back from a slump two months ago to come within striking distance of its record high.
The S&P 500 rose 1% to 6,000.36. The Dow Jones Industrial Average added 1% to 42,762.87 while the Nasdaq gained 1.2%, to 19,529.95.
Technology stocks, with their outsized values, led the broad gains. Chipmaker Nvidia jumped 1.2% and iPhone maker Apple rose 1.6%.
Tesla rose 3.7%, regaining some of the big losses it suffered on Thursday when Trump and Musk sparred feverishly on social media.
Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies, rose 29.4%. That adds to its 168% gain from Thursday when it debuted on the New York Stock Exchange.
U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade war. The closely watched monthly update reaffirmed that the job market remains resilient, despite worries from businesses and consumers about the impact of tariffs on goods going to and coming from the U.S. and its most important trading partners.
President Donald Trump's on-again-off-again tariffs continue to weigh on companies. Lululemon Athletica plunged 19.8% after the maker of yoga clothing cut its profit expectations late Thursday as it tries to offset the impact of tariffs while being buffeted by competition from start-up brands.
Lululemon joins a wide range of companies, from retailers to airlines, that have warned investors about the potential hit to their revenue and profits because of tariffs raising costs and consumers potentially tightening their spending.
Hopes that Trump will lower his tariffs after reaching trade deals with other countries are a main reason the S&P 500 has rallied back so furiously since dropping roughly 20% two months ago from an all-time high.
The economy is absorbing the impact from tariffs on a wide range of goods from key trading partners, along with raw materials such as steel. Heavier tariffs could hit businesses and consumers in the coming months.
The U.S. economy contracted during the first quarter. Recent surveys by the Institute for Supply Management, a trade group of purchasing managers, found that both American manufacturing and services businesses contracted last month. On Tuesday, the Organization for Economic Cooperation and Development forecast 1.6% growth for the U.S. economy this year, down from 2.8% last year.
The uncertainty over tariffs and their economic impact has put the Federal Reserve in a delicate position.
In other trading early Monday, U.S. benchmark crude oil lost 3 cents to $64.55 per barrel. Brent crude, the international standard, gave up 5 cents to $66.42 per barrel.
The U.S. dollar retreated to 144.42 Japanese yen from 144.85 yen. The euro edged higher, to $1.1422 from $1.1399.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Apple Rolls Out AI-Driven iOS 26 at WWDC
Apple Rolls Out AI-Driven iOS 26 at WWDC

Yahoo

time14 minutes ago

  • Yahoo

Apple Rolls Out AI-Driven iOS 26 at WWDC

Apple (NASDAQ:AAPL) kicks off its AI and design revolution with iOS 26, unveiling a Liquid Glass interface and deeper ChatGPT integrations across core apps at WWDC 2025. Apple's vice president of Human Interface Design, Alan Dye, described iOS 26 as the broadest update ever, featuring Liquid Glassa dynamic material that marries glass-like optics with fluid responsivenessapplied universally to iPhone, iPad, Watch, TV and Mac. Native apps from Camera and Safari to Messages and Wallet get fresh layouts that adapt to context, while CarPlay and Maps gain streamlined controls. On the AI front, Apple amplifies its partnership with OpenAI by embedding ChatGPT into Image Playground and Genmoji, letting users generate bespoke images and emojis from text or photoswith full user consent. Visual Intelligence now lets you ask ChatGPT about anything on your screen without switching apps, and Live Translations delivers real-time captions and translations in Messages, FaceTime and Phoneeven with non-iPhone users. Craig Federighi, SVP of Software Engineering, announced expanded Siri personalization and an open Foundation Models Framework that enables any third-party app to tap into Apple Intelligence. Why It Matters: iOS 26's Liquid Glass aesthetic and deep AI mash-up could drive device upgrade cycles and boost services revenue as Apple rolls out paid AI features. It underscores Apple's strategy to monetize AI through its hardware moat rather than by chasing model supremacy. This article first appeared on GuruFocus.

Tesla could lose billions in revenue as Trump administration weighs eliminating a key regulatory credit loophole
Tesla could lose billions in revenue as Trump administration weighs eliminating a key regulatory credit loophole

Yahoo

time24 minutes ago

  • Yahoo

Tesla could lose billions in revenue as Trump administration weighs eliminating a key regulatory credit loophole

Senate Republicans are proposing the elimination of penalties for not abiding by certain fuel efficiency standards. These penalties would render regulatory credits, an incentive for auto companies to abide by the standards, essentially useless. Tesla relies on these credits for a chunk of its revenue, racking up $2.67 billion from them in 2024. As Tesla stock sputters following CEO Elon Musk's feud with President Donald Trump, the EV maker is facing yet another threat from the administration. Republicans are doubling down on efforts to weaken carbon emission standards for the auto industry, which have provided opportunities for companies producing eco-friendly vehicles, such as Tesla, to receive and sell regulatory credits for profit. The Senate Committee on Commerce, Science, and Transportation proposed last week eliminating penalties for companies not meeting certain economy fuel standards set to mitigate carbon emissions. The proposal is included in the committee's portion of Trump's sweeping budget bill. After Corporate Average Fuel Economy (CAFE) standards were introduced in 1975 as a means of setting standards for fuel efficiency, a credits program emerged following lobbying efforts from auto companies looking to be paid to produce lower emission vehicles. Auto companies that produce a certain amount of energy-efficient cars are given a number of credits, depending on how eco-friendly their manufactured vehicles are. Companies are required to have a certain number of credits annually. While Tesla is able to easily attain these credits as a producer of cars that don't run on gas, other manufacturers, like Ford and Stellantis, are not. Therefore, they buy credits from Tesla, who can sell those credits for practically 100% profit. The Senate committee's proposal would eliminate certain CAFE penalties, rendering the need to have credits useless, Chris Harto, senior policy analyst at Consumer Reports, told Fortune in an email. 'It also would essentially turn the CAFE standards into nothing more than a reporting requirement with no consequences for automakers who fail to improve the efficiency of the vehicles they sell,' he said. The committee argued the provision would 'modestly' bring down the cost of cars by eliminating CAFE penalties. These CAFE credits have been a boon for Tesla, which has been battered by CEO Musk's controversial involvement in—and departure from—the Trump administration. The EV-maker made $2.76 billion from regulatory credits in fiscal 2024 and $595 million in the first quarter of 2025, according to earnings reports. Tesla reported $420 million in net income the same quarter, meaning without the regulatory credit, the company would not have been profitable. 'A key element of Tesla's profitability has been its ability to generate credits because it makes zero emissions, and sell those credits to more polluting car companies like GM and Ford and Stellantis—primarily gas-guzzlers that don't really want to make clean cars,' Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, told Fortune. 'By taking away these credits, they're taking away a key element of Tesla's profitability,' he added. Tesla did not respond to Fortune's request for comment. The Senate committee's proposal is one of several efforts by the Trump administration to cut auto sustainability standards. Last month the Senate passed legislation blocking a California effort to ban gas-powered vehicles and mandate sales of only zero-emission cars and light trucks by 2035. The bill, should it be signed by the president, would take a $2 billion bite out of Tesla's revenue, according to JPMorgan analysts. Also in Trump's massive budget bill is the elimination at the end of this year of tax credits up to $7,500 for buyers of certain Tesla and other EV models, which would cost $1.2 billion of Tesla's full-year profit, the analysts calculated. Tesla's credit headaches extend across the Atlantic Ocean. Regulatory credits are common in Europe and Asia, and the European Union, for example, gives credits to European automakers who sell a certain number of zero-emission cars. But as Tesla sales crater overseas—including falling by 49% in April—the EV maker may not be able to reach the number of sales necessary to gain credits. As of April, Tesla—grouped with Ford and Stellantis in a manufacturing pool to achieve the EU's emission standards—are still short of the target, according to a report from the International Council on Clean Transportation. Poor sales could jeopardize Tesla's ability to rack up credits. 'If things go bad for Tesla and they don't sell enough cars this year, they might not have enough credits for what they promised Stellantis and the others,' ICCT managing director Peter Mock told Politico in March. 'Tesla is under pressure.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

JPM says buy these 2 auto supplier stocks over Tesla
JPM says buy these 2 auto supplier stocks over Tesla

Yahoo

time24 minutes ago

  • Yahoo

JPM says buy these 2 auto supplier stocks over Tesla

-- JPMorgan analysts said in a note Tuesday that they recommend investors sell Tesla (NASDAQ:TSLA) and instead buy auto parts suppliers Aptiv (NYSE:APTV) and BorgWarner (NYSE:BWA), arguing that supplier shares offer "relative value." Despite underperforming automakers since tariffs were announced, auto parts suppliers face "materially less regulatory headwind," according to the bank. JPMorgan notes that shares of the average U.S.-based auto parts supplier have underperformed the S&P 500 and U.S. automakers since March 25, the day prior to official confirmation of 25% automotive sectoral tariffs. This is despite the "direct burden of tariffs falling squarely on automakers and not suppliers." Additionally, JPMorgan says other regulatory changes, such as the "seemingly likely termination of two separate EV subsidies," are expected to materially weigh on some automakers, potentially costing Tesla "up to roughly half of its global EBIT." The analysts point out that "No company we cover has experienced as much decline in 2025 consensus EPS since March 25 as has Tesla (-32%)." Moreover, they state that "the Tesla brand seems increasingly controversial, competition is intensifying (especially in China but also around the world) and the automaker recently experienced a key departure." JPMorgan suggests "selling Underweight-rated TSLA and using the proceeds to buy what we view as superior risk/reward auto parts suppliers, including Overweight-rated Aptiv (APTV) and BorgWarner (BWA)." They highlight that these suppliers "stand to benefit from long-term industry electrification," but offer "this secular growth leverage at a much more reasonable 9.3x and 7.6x P/E, respectively," compared to Tesla's 141.2x. Related articles JPM says buy these 2 auto supplier stocks over Tesla UBS stock tumbles on capital concerns Paramount Global reduces U.S. staff by 3.5% amid industry challenges - report

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store