Asian shares track Wall Street higher, yen weak
The S&P 500 and the Nasdaq again closed at record highs as US data including retail sales and jobless claims beat forecasts, indicating a modest improvement in the economy that should give the Federal Reserve time to gauge the inflation impact from higher US tariffs.
Streaming giant Netflix beat Wall Street's lofty expectations for second-quarter earnings in part due to a weaker US dollar. Its share price, however, fell 1.8 per cent in after-hours trading, with analysts saying much of the growth had already been priced in.
On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent to its highest since late 2021, bringing the weekly gain to 1.7 per cent.
Japan's Nikkei, however, slipped 0.2 per cent, and the yen was at 148.54 per dollar, down about 0.7 per cent this week after polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the election on Sunday.
Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed beyond the central bank's two per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity.
"If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities.
"JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump."
Chinese blue-chips rose 0.3 per cent while Hong Kong's Hang Seng index gained 1.2 per cent.
The Tapei-listed shares of TSMC, the world's main producer of advanced AI chips, rallied 2.2 per cent after posting record quarterly profit on Thursday, though it said future income might be affected by US tariffs.
In the foreign exchange market, the US dollar was on the back foot again on Friday, having bounced 0.3 per cent overnight against major peers on the strong economic data. For the week, it is headed for a second successive gain of 0.6 per cent, bouncing further from a three-and-a-half-year low hit over two weeks ago.
Fed governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of July, though most officials who have spoken publicly have signalled no desire to move.
Fed funds futures imply next to no chance of a move on July 30, while a September rate cut is just about 62 per cent priced in.
Treasury yields were slightly lower in Asia. Benchmark 10-year US Treasury yields slipped 2 basis points to 4.445 per cent, having moved little overnight. Two-year yields also edged two bps lower to 3.8981.
Oil prices were mostly steady on Friday, after gaining $1 overnight following a fourth day of drone strikes on Iraqi Kurdistan oil fields, pointing to continued risk in the region.
US crude inched up 0.2 per cent to $67.66 per barrel and Brent also rose 0.2 per cent to $69.68 a barrel. They, however, lost about one per cent for the week.
Spot gold prices were steady at $3,337 an ounce but were set for a 0.5 per cent weekly loss.
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News.com.au
an hour ago
- News.com.au
Mark Zuckerberg expands on Hawaii compound, sparking concerns among locals
Mark Zuckerberg has reportedly expanded his sprawling $300 million (AU$460.2m) compound in Hawaii by nearly 1,000 acres — stoking yet more controversy with locals on the idyllic Pacific island chain, according to a report. The latest expansion on the Meta CEO's massive estate on the Hawaiian island of Kauai includes 962 acres of ranch land purchased earlier this year under an LLC, according to the tech news site WIRED. A person close to the sale estimated the purchase price at more than $65 million (AU$99.7m). The acquisition brings Zuckerberg's total holdings on Kauai to more than 2,300 acres. Property records place the land's market value at around $75 million (AU$115m). Inside the existing compound, Zuckerberg has constructed two mansions with a combined floor area comparable to a football field, a gym, a tennis court, several guesthouses, ranch buildings, saucer-shaped tree houses, a water system and a tunnel leading to an underground storm shelter about the size of an NBA basketball court, outfitted with blast-resistant doors and an escape hatch. Recent planning documents released through public records show plans for three more large buildings, ranging from 726 to 1036 square metres — nearly 10 times the size of the average home in Hawaii. Two of them include 16 bedrooms and 16 bathrooms between them, arranged in a motel-style layout, with a shared veranda spanning more than 120 square metres. Each building features cameras, keypad locks and motion detection devices. Hoffine Barr described the buildings as short-term guest housing for family, friends and staff. Satellite images show dozens of buildings on the property that have not yet appeared in public records. Based on bedroom counts in the documents WIRED reviewed, the compound could eventually accommodate more than 100 people. The seller was the Mary Lucas Trust Estate, whose lands were previously leased to sugar plantations and later restored for cattle grazing. Zuckerberg's spokesman Brandi Hoffine Barr confirmed the purchase to WIRED but did not comment on the size or price. 'Mark and Priscilla continue to make a home for their family and grow their ranching, farming, and conservation efforts at KoÊ»olau Ranch,' said Hoffine Barr. 'The vast majority of the land is dedicated to agriculture — including cattle ranching, organic ginger, macadamia nut, and turmeric farming, native plant restoration, and endangered species protection. After purchasing the ranch, they cancelled the previous owner's plans for 80 luxury homes.' The couple's investment now exceeds the $311 million (AU$477m) fiscal year 2024 operating budget for the island of Kauai. A local islander who fished in the area contacted Zuckerberg's representatives around 10 years ago to inform them that part of the compound housed the remains of his great-grandmother and her brother, according to the report. Julian Ako negotiated with Zuckerberg's team for months before finally being able to gain access to the burial site and register the graves with Hawaii's Department of Land and Natural Resources. According to WIRED, Ako tried unsuccessfully to locate the remains of other ancestor that may be buried on Zuckerberg's property. Hawaiian officials told WIRED that they confirmed 'the probability (based on oral testimony) of additional burial sites.' The burial site, first identified in 2015, was 'fenced off and maintained' after being discovered, Hoffine Barr told the publication. She added that workers are 'bound by regulations that require reporting of inadvertent discoveries of iwi' — or Hawaiian ancestral bones. But because workers on the project are bound by strict nondisclosure agreements, local residents fear that any future discovery of iwi could be concealed. 'If all of the workers have signed these nondisclosure agreements, then basically they're sworn to silence,' Ako told WIRED. 'If they uncover iwi — or bones — it's going to be a challenge for that to ever become public knowledge, because they're putting their jobs in jeopardy.' Zuckerberg began buying land on Kauai in 2014, acquiring 700 acres near the town of Kilauea for roughly $100 million (AU$153m). The purchase included parcels where hundreds of local residents held kuleana rights — traditional Hawaiian legal entitlements whereby descendants of original Native Hawaiian landowners can claim ancestral lands. In 2016, Zuckerberg filed 'quiet title and partition' lawsuits against those residents to clarify ownership. He later dropped the suits after public backlash, but the legal process continued under kuleana descendant Carlos Andrade, who eventually won sole ownership of the land at auction. In a 2017 op-ed, Zuckerberg wrote that Andrade, who died in 2022, could 'continue his quiet title action and pass down the kuleana rights because he had lived on and cared for these lands for more than 40 years.' By spring 2021, Zuckerberg added more than 560 acres of ranchland, some of it abutting Larsen's Beach. Later that year, he purchased another 110 acres, including the Kaloko Dam, an earthen reservoir that collapsed in 2006, killing seven people. Zuckerberg's presence on the island has drawn both support and scepticism. He has donated millions to local non-profits, including a charter school and an affordable housing organisation near the compound. His projects have also created well-paying jobs. But many locals remain uneasy about the influence of billionaires on the island's future. 'If our island has any hope of remaining Hawaii, this kind of activity has got to stop,' Puali'i Rossi, a professor of Native Hawaiian studies at Kauai Community College, told WIRED. 'Eventually Hawaii isn't going to look like Hawaii anymore — it's going to be a resort community. Are we really thinking about 100 years from now, what this island is going to look like?'
The Advertiser
3 hours ago
- The Advertiser
Trump announces trade deal as Philippines leader visits
US President Donald Trump has announced a new 19 per cent tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr to the White House, saying US goods would pay zero tariffs. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had signalled a deal could be reached during the visit. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator". Trump said the two Pacific allies would also work together militarily but gave no details. Marcos told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally". The 19 per cent tariff rate was just below the 20 per cent threatened by Trump earlier this month but above the 17 per cent rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19 per cent rate announced for Indonesia and bests Vietnam's slightly higher rate of 20 per cent. The United States had a deficit of nearly $US5 billion ($A7.7 billion) with the Philippines last year on bilateral goods trade of $US23.5 billion. Trump said the two countries did "a lot of business" with each other, adding the "very big numbers" in the trade agreement would only grow larger. During the Oval Office event, Trump said he may visit China for a landmark trip "in the not-too-distant future" and noted the Philippines had distanced itself from China after his election last November. "The country was maybe tilting toward China but we un-tilted it very, very quickly," Trump said. Critics warn Trump's tariffs on nearly all foreign goods could boost prices for US consumers, complicating his push for the Federal Reserve to lower interest rates. No comment was immediately available from Marcos, who did not speak to reporters before leaving the White House grounds. Philippine Assistant Foreign Secretary Raquel Solano said last week trade officials have been working with US counterparts seeking to seal a "mutually acceptable and mutually beneficial" deal. Marcos, who arrived in Washington DC on Sunday, met with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio on Monday. During his trip, he will also meet US business leaders investing in the Philippines. US President Donald Trump has announced a new 19 per cent tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr to the White House, saying US goods would pay zero tariffs. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had signalled a deal could be reached during the visit. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator". Trump said the two Pacific allies would also work together militarily but gave no details. Marcos told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally". The 19 per cent tariff rate was just below the 20 per cent threatened by Trump earlier this month but above the 17 per cent rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19 per cent rate announced for Indonesia and bests Vietnam's slightly higher rate of 20 per cent. The United States had a deficit of nearly $US5 billion ($A7.7 billion) with the Philippines last year on bilateral goods trade of $US23.5 billion. Trump said the two countries did "a lot of business" with each other, adding the "very big numbers" in the trade agreement would only grow larger. During the Oval Office event, Trump said he may visit China for a landmark trip "in the not-too-distant future" and noted the Philippines had distanced itself from China after his election last November. "The country was maybe tilting toward China but we un-tilted it very, very quickly," Trump said. Critics warn Trump's tariffs on nearly all foreign goods could boost prices for US consumers, complicating his push for the Federal Reserve to lower interest rates. No comment was immediately available from Marcos, who did not speak to reporters before leaving the White House grounds. Philippine Assistant Foreign Secretary Raquel Solano said last week trade officials have been working with US counterparts seeking to seal a "mutually acceptable and mutually beneficial" deal. Marcos, who arrived in Washington DC on Sunday, met with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio on Monday. During his trip, he will also meet US business leaders investing in the Philippines. US President Donald Trump has announced a new 19 per cent tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr to the White House, saying US goods would pay zero tariffs. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had signalled a deal could be reached during the visit. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator". Trump said the two Pacific allies would also work together militarily but gave no details. Marcos told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally". The 19 per cent tariff rate was just below the 20 per cent threatened by Trump earlier this month but above the 17 per cent rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19 per cent rate announced for Indonesia and bests Vietnam's slightly higher rate of 20 per cent. The United States had a deficit of nearly $US5 billion ($A7.7 billion) with the Philippines last year on bilateral goods trade of $US23.5 billion. Trump said the two countries did "a lot of business" with each other, adding the "very big numbers" in the trade agreement would only grow larger. During the Oval Office event, Trump said he may visit China for a landmark trip "in the not-too-distant future" and noted the Philippines had distanced itself from China after his election last November. "The country was maybe tilting toward China but we un-tilted it very, very quickly," Trump said. Critics warn Trump's tariffs on nearly all foreign goods could boost prices for US consumers, complicating his push for the Federal Reserve to lower interest rates. No comment was immediately available from Marcos, who did not speak to reporters before leaving the White House grounds. Philippine Assistant Foreign Secretary Raquel Solano said last week trade officials have been working with US counterparts seeking to seal a "mutually acceptable and mutually beneficial" deal. Marcos, who arrived in Washington DC on Sunday, met with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio on Monday. During his trip, he will also meet US business leaders investing in the Philippines. US President Donald Trump has announced a new 19 per cent tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr to the White House, saying US goods would pay zero tariffs. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had signalled a deal could be reached during the visit. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator". Trump said the two Pacific allies would also work together militarily but gave no details. Marcos told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally". The 19 per cent tariff rate was just below the 20 per cent threatened by Trump earlier this month but above the 17 per cent rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19 per cent rate announced for Indonesia and bests Vietnam's slightly higher rate of 20 per cent. The United States had a deficit of nearly $US5 billion ($A7.7 billion) with the Philippines last year on bilateral goods trade of $US23.5 billion. Trump said the two countries did "a lot of business" with each other, adding the "very big numbers" in the trade agreement would only grow larger. During the Oval Office event, Trump said he may visit China for a landmark trip "in the not-too-distant future" and noted the Philippines had distanced itself from China after his election last November. "The country was maybe tilting toward China but we un-tilted it very, very quickly," Trump said. Critics warn Trump's tariffs on nearly all foreign goods could boost prices for US consumers, complicating his push for the Federal Reserve to lower interest rates. No comment was immediately available from Marcos, who did not speak to reporters before leaving the White House grounds. Philippine Assistant Foreign Secretary Raquel Solano said last week trade officials have been working with US counterparts seeking to seal a "mutually acceptable and mutually beneficial" deal. Marcos, who arrived in Washington DC on Sunday, met with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio on Monday. During his trip, he will also meet US business leaders investing in the Philippines.
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
ASX set to rise, Wall Street mixed; Trump labels Fed chief a ‘numbskull'
Wall Street is hanging around its records following some mixed profit reports, as General Motors and other big US companies give updates on how much President Donald Trump's tariffs are hurting or helping them. The S&P 500 was 0.1 per cent higher in late trading and on track to squeak to another all-time high. The Dow Jones was up 164 points, or 0.4 per cent, in late trade, and the Nasdaq composite was down 0.2 per cent after setting its own record. The Australian sharemarket is set to rise, with futures pointing to a gain of 40 points, or 0.5 per cent, at the open. The ASX edged 0.1 per cent higher on Tuesday. General Motors dropped 7.5 per cent despite reporting a stronger profit for the spring than analysts expected. The automaker said it's still expecting a $US4 billion-$US5 billion ($6.1 billion- $7.6 billion) hit to its results over 2025 because of tariffs and that it hopes to mitigate 30 per cent of that. GM also said it will feel more pain because of tariffs in the current quarter than it did during the spring. Loading That helped to offset big gains for some homebuilders after they reported stronger profits for the spring than Wall Street had forecast. D.R. Horton rallied 16.5 per cent, and PulteGroup jumped 11.4 per cent. That was even as both companies said homebuyers are continuing to deal with challenging conditions, including higher mortgage rates and an uncertain economy. So far, the US economy seems to be powering through all the uncertainty created by Trump's on-and-off tariffs. Many of Trump's stiff proposed taxes on imports are currently on pause, and the next big deadline is Aug. 1. Talks are underway on possible trade deals with other countries that could lower the proposed tariffs before they kick in. Companies are already feeling effects. Genuine Parts, the Atlanta-based company that sells auto and industrial replacement parts around the world, trimmed its profit forecast for the full year in order to incorporate 'all US tariffs currently in effect,' along with its updated expectations for business conditions in the second half of the year. Its stock rose 6.5 per cent after it reported a stronger profit for the latest quarter than analysts expected.
