Stock market today: Asian markets recover as Nikkei trades near new record high
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.14 percent after Thursday's Bureau of Labor Statistics report revealed that the
Producer Price Index
climbed 0.9 percent month-on-month in July, well above forecasts. The report led traders to temper expectations for how aggressively the Federal Reserve can cut rates in September without fueling additional inflation.
Traders are currently pricing in a 92.1 percent chance of a 25 basis point reduction at its meeting next month, compared with a 100 percent chance of a cut on Thursday, according to the CME Group's FedWatch tool. The prospects of an outsized 50 basis point cut fell to zero from an earlier expectation of 5.7 percent a day ago.
Nikkei 225 gains 1.65 percent after major sell-off
The Nikkei 225 bounced back 1.65 percent to near a new record high after Thursday's sell-off, which was the index's largest drop since April 11 and ended a six-day winning streak. Friday's Japanese GDP data showed the economy grew at an annualized rate of 1 percent in the April–June quarter, exceeding analyst expectations. The dollar also weakened 0.5 percent against the yen, trading at 147.09.
In the U.S. stock market, futures were up 0.2 percent in early trading and were on track for a fourth day of gains after a volatile trading session on Wall Street on Thursday.
Dollar falls on strong PPI data
The dollar index, which measures the greenback against a basket of major trading partner currencies, lost some gains following the PPI data release, and was last down 0.2 percent at 98.026.
Australian shares rose 0.7 percent, while Hong Kong's Hang Seng Index fell 1.05 percent. The CSI 300 gained 0.72 percent after weaker-than-expected Chinese economic data for July, including retail sales and industrial production, fueled speculation of new stimulus measures. Markets in India and South Korea remained closed for public holidays.
In the European stock market, the EURO STOXX 50 was up 0.86 percent, Germany's DAX futures gained 0.56 percent and FTSE futures rose 0.01 percent.
Read: Dubai 24-carat gold prices climb to AED403.25 on softer dollar, prices set for weekly fall
Cryptocurrency market steadies
The cryptocurrency market steadied after Bitcoin briefly hit a record of $124,480.82 on Thursday, but quickly retreated after failing to reach its next key target. The currency was last up 0.8 percent, regaining some ground, while Ether rose 1.7 percent. Bitcoin's inability to break the $125,000 resistance points to another consolidation phase.
In commodities, Brent crude slipped 0.3 percent to $66.63 per barrel ahead of a meeting in Alaska between U.S. President Donald Trump and Russian President Vladimir Putin. Meanwhile, spot gold was up 0.17 percent to $3,343.65.
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Khaleej Times
3 hours ago
- Khaleej Times
'No deal': Trump-Putin summit yield no breakthrough on Ukraine
A highly anticipated summit between US President Donald Trump and Russian President Vladimir Putin on Friday yielded no agreement to resolve or pause Moscow's war in Ukraine, though both leaders described the talks as productive. During a brief appearance before the media following the nearly three-hour meeting in Alaska, the two leaders said they had made progress on unspecified issues. But they offered no details and took no questions, with the normally loquacious Trump ignoring shouted questions from reporters. "We've made some headway," Trump said, standing in front of a backdrop that read, "Pursuing Peace." "There's no deal until there's a deal," he added. The talks did not initially appear to have produced meaningful steps toward a ceasefire in the deadliest conflict in Europe in 80 years, a goal Trump had set ahead of the summit. Stay up to date with the latest news. Follow KT on WhatsApp Channels. But simply sitting down face-to-face with the US president represented a victory for Putin, who had been ostracized by Western leaders since Russia's full-scale invasion of Ukraine in 2022. Following the summit, Trump told Fox News' Sean Hannity that he would hold off on imposing tariffs on China for buying Russian oil after making progress with Putin. He has targeted India, another major buyer of Russian crude, with an additional 25% tariff on U.S. imports. "Because of what happened today, I think I don't have to think about that now," Trump said of Chinese tariffs. "I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now." Trump has also threatened sanctions on Moscow but has thus far not followed through, even after Putin ignored a Trump-imposed ceasefire deadline earlier this month. In the Fox News interview, Trump also suggested a meeting would now be set up between Putin and Ukrainian President Volodymyr Zelenskiy, which he might also attend. He gave no further details on who was organizing the meeting or when it might be. Putin made no mention of meeting Zelenskiy when speaking to reporters earlier. He said he expected Ukraine and its European allies to accept the results of the U.S.-Russia negotiation constructively and not try to "disrupt the emerging progress." He also repeated Moscow's long-held position that what Russia claims to be the "root causes" of the conflict must be eliminated to reach a long-term peace, a sign he remains resistant to a ceasefire. There was no immediate reaction from Kyiv to the summit, the first meeting between Putin and a U.S. president since the war began. When asked by Hannity what he would advise Zelenskiy, Trump said, "Gotta make a deal." "Look, Russia is a very big power, and they're not," Trump added. The war has killed or injured well over a million people from both sides, including thousands of mostly Ukrainian civilians, according to analysts. Rolling out the red carpet Zelenskiy has ruled out formally handing Moscow any territory and is also seeking a security guarantee backed by the United States. Trump said he would call Zelenskiy and NATO leaders to update them on the Alaska talks. As the two leaders were talking, the war raged on, with most eastern Ukrainian regions under air raid alerts. Governors of Russia's Rostov and Bryansk regions reported that some of their territories were under Ukrainian drone attacks. Ukraine's opposition lawmaker Oleksiy Honcharenko said on the Telegram messaging app, "It seems Putin has bought himself more time. No ceasefire or de-escalation has been agreed upon." The anticlimactic end to the closely watched summit was in stark contrast to the pomp and circumstance with which it began. When Putin arrived at an Air Force base in Alaska, a red carpet awaited him, where Trump greeted Putin warmly as U.S. military aircraft flew overhead. Putin is wanted by the International Criminal Court, accused of the war crime of deporting hundreds of children from Ukraine. Russia denies the allegations, and the Kremlin has dismissed the ICC warrant as null and void. Russia and the United States are not members of the court. The day before the summit, Putin held out the prospect of something Trump wants - a new nuclear arms control agreement to replace the last surviving one, which is due to expire in February. It was unclear if the issue was discussed on Friday. 'Counting on America' Zelenskiy, who was not invited to Alaska, and his European allies had feared Trump might sell out Ukraine by essentially freezing the conflict and recognizing - if only informally - Russian control over one-fifth of Ukraine. Trump had sought to assuage such concerns on Friday ahead of the talks, saying he would let Ukraine decide on any possible territorial concessions. "I'm not here to negotiate for Ukraine, I'm here to get them at a table," he said. Asked what would make the meeting a success, he told reporters: "I want to see a ceasefire rapidly ... I'm not going to be happy if it's not today ... I want the killing to stop." The meeting also included U.S. Secretary of State Marco Rubio; Trump's special envoy to Russia, Steve Witkoff; Russian foreign policy aide Yury Ushakov; and Foreign Minister Sergei Lavrov. Trump, who said during his presidential campaign that he would end the Ukraine war within 24 hours, conceded on Thursday it had proven a tougher task than he had expected. He had said if Friday's talks went well, quickly arranging a second, three-way summit with Zelenskiy would be more important than his encounter with Putin. Trump ended his remarks on Friday by telling Putin, "I'd like to thank you very much, and we'll speak to you very soon and probably see you again very soon." "Next time in Moscow," Putin responded. Trump said he might "get a little heat on that one" but that he could "possibly see it happening." Zelenskiy said ahead of Friday's summit that the meeting should open the way for a "just peace" and three-way talks that included him, but added that Russia was continuing to wage war. "It's time to end the war, and the necessary steps must be taken by Russia. We are counting on America," Zelenskiy wrote on Telegram.
Dubai Eye
3 hours ago
- Dubai Eye
Trump says it will be up to Ukraine to decide on territorial swaps
US President Donald Trump said he would not negotiate on behalf of Ukraine in his Friday meeting with Russian President Vladimir Putin and would let Kyiv decide whether to engage in territorial swaps with Russia. Trump said his goal was to get the two sides to start a negotiation, with any territorial swaps to be addressed then. "They'll be discussed, but I've got to let Ukraine make that decision, and I think they'll make a proper decision. But I'm not here to negotiate for Ukraine, I'm here to get them at a table," Trump told reporters aboard Air Force One. Trump's remarks are likely to offer some assurance to Ukraine, which is worried that the US-Russia talks could freeze the conflict at Ukraine's expense. Trump said the Russian offensive in Ukraine was likely aimed at helping to strengthen Putin's hand in any negotiations to end the war. "I think they're trying to negotiate. He's trying to set a stage. In his mind that helps him make a better deal. It actually hurts him, but in his mind that helps him make a better deal if they can continue the killing," he said. The US president said he expected his meeting with Putin to produce results, given the stakes involved and weakness in the Russian economy. "He's a smart guy, been doing it for a long time but so have I... we get along, there's a good respect level on both sides, and I think, you know, something's going to come of it," he said. Trump said it was a good sign that Putin was bringing business executives with him from Russia, but said no deals could be made until the war was settled. "I like that 'cause they want to do business, but they're not doing business until we get the war settled," he said.
Khaleej Times
14 hours ago
- Khaleej Times
India's Modi announces new defence system 'Sudarshan Chakra', tax cuts on Independence Day
Indian Prime Minister Narendra Modi urged the country on Friday to move towards more self-reliance, manufacture everything from fertilisers to jet engines and EV batteries, and vowed to protect farmers in the face of a trade conflict with Washington. With tariffs imposed on Indian exports by US President Donald Trump expected to hurt growth in the world's fastest growing major economy, Modi announced lower goods and services taxes (GST) from October, a move that could help boost consumption. He also announced India would set up a new defence system called 'Sudarshan Chakra'. He did not elaborate but a government statement said the system is aimed at neutralising enemy infiltrations and enhancing India's offensive capabilities. Indian defence and policy circles have informally referred to the Russian S-400 air defence system, which played a key role during the fighting with Pakistan, as Sudarshan Chakra, after a weapon referred to in Hindu texts. Modi was addressing the nation on the occasion of its Independence Day at a time New Delhi has been struggling with Trump's tariffs and the collapse of trade talks, largely due to differences over imports of American farm and dairy products. "Farmers, fishermen, cattle rearers are our top priorities," Modi said in his customary annual address from the ramparts of the Red Fort in New Delhi. "Modi will stand like a wall against any policy that threatens their interests. India will never compromise when it comes to protecting the interests of our farmers," he said. Modi did not mention the tariffs or the US in his speech that lasted nearly two hours. Last week, Trump imposed an additional 25 per cent tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax will raise duties on some Indian exports to as high as 50 per cent, among the highest levied on any US trading partner. Modi has never spoken about the tariffs directly, only alluding to them in a speech last week, where he swore to protect the interests of farmers, even if it came at a personal price. Farmers are a key political constituency in India and they violently protested against Modi's last big push to reform the sector, forcing him to repeal three farm laws in 2021 in what was a rare defeat for him. Tax cuts to boost consumption Although local manufacturing and self-reliance have been Modi's key focus areas for years now, the push is seen to have gained urgency amid ongoing global trade tensions and supply chain disruptions. "The need of the hour is to take a resolve for building a strong India ... I want our traders, shopkeepers to display boards for 'Swadeshi' products," Modi said, using the Hindi word for made in India goods. He said made-in-India semiconductor chips would hit the market by the end of this year and that India was pushing for self-reliance in producing critical minerals with exploration underway at more than 1,200 locations. Trump's tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly $87 billion in 2024, hitting sectors like textiles, footwear, shrimp, gems and jewellery. In retaliation, some supporters of Modi have sought to stoke anti-American sentiment and called for a boycott of US companies such as McDonald's, Coca-Cola, Amazon and Apple. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. Modi's promise to cut GST by October's Diwali festival, which encompasses one of India's biggest shopping seasons, follows previous commitments to overhaul it by reducing the number of rate brackets under the 2017 tax regime. A group of ministers have been preparing a report that will consider merging tax slabs and lowering rates on some products. In February, India cut personal income tax for some individuals to boost spending. Earlier this month, the central bank kept interest rates steady, following a 100 basis point cut this year so far. The government has proposed to the ministers' panel that it recommend reducing taxes on mass use items as well as on goods used by women, students and farmers to boost consumption and enhance affordability, the finance ministry said in an X post. The government will move towards making GST a simple tax with two rate slabs, one standard and another merit, it said. Special rates will be applicable only for a few select items.
