Asia stocks slip amid US tariff confusion, oil skids
The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1.
"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level," U.S. Treasury Secretary Scott Bessent told CNN.
Trump in April announced a 10 per cent base tariff rate on most countries and higher "reciprocal" rates ranging up to 50 per cent, with an original deadline of this Wednesday.
However, Trump also said levies could range in value from "maybe 60 per cent or 70 per cent tariffs to 10 per cent and 20 per cent", further clouding the picture.
With very few actual trade deals done, analysts had suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some.
"This renewed escalation in trade tensions comes at a time when major trade partners, including the EU, India and Japan, are believed to be at crucial stages of bilateral negotiations," analysts at ANZ said in a note.
"If reciprocal tariffs are implemented in their original form or even expanded, we believe it will intensify downside risks to U.S. growth and increase upside risks to inflation."
Investors have grown somewhat used to the uncertainty surrounding U.S. trade policy and the initial market reaction was cautious. S&P 500 futures and Nasdaq futures both eased 0.3 per cent.
Japan's Nikkei lost 0.3 per cent, while South Korean stocks fell 0.7 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent.
DOLLAR DOLDRUMS
Safe-haven bonds were better bid, with 10-year Treasury yields down almost 2 basis points at 4.326 per cent.
Major currencies were little changed as the dollar index continued to languish near four-year lows at 96.913. The euro held at $1.1787, just off last week's top of $1.1830, while the dollar dipped to 144.38 yen.
The dollar has been undermined by investor concerns about Trump's often chaotic tariff policy and what that might do to economic growth and inflation.
The same worries have kept the Federal Reserve from cutting rates and minutes of its last meeting should offer more colour on when the majority of members might resume easing.
It is a relatively quiet week for Fed speakers with only two district presidents on the docket, while economic data is also sparse.
The Reserve Bank of Australia is widely expected to cut its rates by a quarter point to 3.60 per cent at a meeting on Tuesday, the third easing this cycle, and markets imply an eventual destination for rates of 2.85 per cent or 3.10 per cent.
New Zealand's central bank meets on Wednesday and is likely to hold rates at 3.25 per cent, having already slashed by 225 basis points over the past year.
In commodity markets, gold slipped 0.3 per cent to $3,324 an ounce, though it did gain almost 2 per cent last week as the dollar fell.
Oil prices slid anew after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by a larger-than-expected 548,000 barrels per day in August.
The group also warned that it could hike by a similar amount in September, leaving analysts with the impression it was trying to squeeze lower margin producers and particularly those pulling oil from U.S. shale.
Brent dropped 52 cents to $67.78 a barrel, while U.S. crude fell $1.01 to $65.99 per barrel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
3 hours ago
- Straits Times
Trump's dealmaker name on the line in high-stakes tariff talks
Sign up now: Get ST's newsletters delivered to your inbox It was US President Donald Trump's second extension since unveiling the tariffs in April. WASHINGTON - US President Donald Trump set out early in his second term to fulfill a decades-long desire of reshaping US trade with the world, but the main outcomes so far have been discord and uncertainty. The real estate tycoon, who has staked his reputation on being a consummate dealmaker, embarked on an aggressive strategy of punitive tariffs that his administration predicted could bring '90 deals in 90 days'. The score so far? Two. Three if you count a temporary de-escalation agreement with China. The 90-day deadline was due on July 9, with dozens of economies including the European Union, India and Japan facing tariff hikes without a deal. But days before it arrived, Mr Trump issued a delay to Aug 1. It was his second extension since unveiling the tariffs in April – reigniting the 'TACO Theory' that has gained traction among some Wall Street traders. The acronym coined by a Financial Times writer stands for 'Trump Always Chickens Out,' highlighting the president's inclination to roll back policies if markets turn sour. Top stories Swipe. Select. Stay informed. Singapore Government looking at enhancing laws around vaping to tackle issue of drug-laced vapes in Singapore Singapore Why the vape scourge in Singapore concerns everyone Singapore I lost my daughter to Kpod addiction: Father of 19-year-old shares heartbreak and lessons Singapore Organised crime groups pushing drug-laced vapes in Asia including Singapore: UN Singapore Prison school to NUS: At 36, former drug abuser finds it's never too late to get a degree Singapore Bland and boring? Some hospitals seek help from big names to enhance food menus for patients Asia Patriotism, peace and pain: The politics behind China's World War II narrative World US slaps 30% tariffs on EU and Mexico; EU warns of countermeasures Treasury Secretary Scott Bessent, part of Mr Trump's multi-leader trade team, has reportedly been a key advocate for the pauses. But the label has irked Mr Trump and he insisted on July 8 that the deadline had always been in August. 'I didn't make a change. A clarification, maybe,' he said at a cabinet meeting. This week, he published more than 20 letters dictating tariff rates to world leaders including in Japan, South Korea and Indonesia. 'We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,' he wrote. He also issued letters to the EU, Canada, Mexico and Brazil – although Brazil was not previously targeted by the steeper 'reciprocal' tariffs and Canada and Mexico face a separate tariff regime. The documents 'appear to be Trump's way of combatting the TACO label,' said Ms Inu Manak, a fellow for trade policy at the Council on Foreign Relations. 'He wants to show that he's not just kicking the can down the road on the deadline, but that he means business,' she told AFP. 'He's likely frustrated that there isn't a parade of deals coming in.' 'Politically complicated' 'The shift in his rhetoric from 'there is no cost – the foreigners pay the tariffs' to 'there is a short-term cost, but there will be a long-term gain' has put him in a more politically complicated position,' said Mr William Reinsch, senior adviser at the Center for Strategic and International Studies. Mr Trump has repeatedly claimed that foreign countries foot the bill for tariffs, although the reality is more complicated with US companies generally paying them. 'In the public's mind, the tariffs are the pain, and the agreements will be the gain,' said Mr Reinsch, a former US commerce official. He warned that without trade agreements, Americans could conclude Mr Trump's strategy was flawed and deem his tactics a failure. While the 90-deal goal was probably unrealistic, Mr Reinsch said, 'it's clear that three (UK, China, Vietnam) with only one actual text made public (UK) is too small.' Deflecting attention Meanwhile, Mr Trump has announced a 50 per cent levy on copper imports starting Aug 1. Commerce Secretary Howard Lutnick said officials would also conclude investigations into semiconductors and pharmaceuticals – which could lead to tariffs – at month-end. 'That timing is not coincidental – it lines up with the new deadline of Aug 1, adding more pressure and deflecting attention from any lack of deals that get made in that time frame,' Ms Manak said. Analysts believe Mr Trump's supporters will likely not pay much attention to trade talks unless the tariffs fuel inflation. 'Trade policy is not top-of-mind for the average voter,' said Ms Emily Benson, head of strategy at Minerva Technology Futures. She expects the Trump administration's focus on boosting US manufacturing and reinvigorating the defence industrial base means it could be willing to bear some political heat to achieve those objectives. But it is a delicate balance. Voters will likely pay more attention if Trump follows through on his August tariff threats, Ms Manak said. 'And we could see a negative market reaction as well, which would not go unnoticed.' AFP
Independent Singapore
4 hours ago
- Independent Singapore
Loanshark threatens to kill borrower's entire family over S$27 outstanding balance
Photo: Depositphotos/ Seasonpost (for illustration purposes only) MALAYSIA: A 42-year-old man has revealed that a loan shark has threatened to kill his entire family over an outstanding balance of just RM90 (approximately S$27). According to a report by Oriental Daily, the borrower named Xiao (transliterated from Mandarin) said he initially borrowed RM1,500 (S$452) last month to help with cash flow difficulties. But when the money was disbursed, he received only RM1,000 (S$301), as the lender retained RM500 as an upfront fee. Mr Xiao told the Malaysian daily that he diligently repaid the loan together with the interest demanded. Despite having settled what he believed was the full amount owed, he was later informed that he still had an outstanding balance of RM90. To his shock, the lender claimed that under their so-called 'regulations,' he was required to pay an additional 'fine' of RM1,500. Mr Xiao said he did not agree to their demand but the loanshark refused to negotiate and instead threatened to kill his entire family. See also BREAKING: Dr Mahathir resigns as Prime Minister of Malaysia Mr Xiao said began receiving repeated menacing text messages warning that hired killers would be sent to carry out the threats if he did not comply. He described feeling deeply unsettled and fearful for his family's safety. The incident highlights the ruthless tactics employed by illegal moneylenders, who often prey on financially vulnerable individuals and enforce repayment through intimidation and violence. Such cases have been reported across Malaysia in recent years, prompting warnings from authorities and community organisations about the dangers of dealing with unlicensed lenders. Investigations are ongoing. () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
CNA
6 hours ago
- CNA
SpaceX to invest $2 billion in Musk's xAI startup, WSJ reports
SpaceX has agreed to invest $2 billion in Elon Musk's AI startup xAI, marking one of its largest external investments and nearly half of xAI's recent $5 billion equity raise, the Wall Street Journal reported on Saturday.
