logo
Asian markets rally ahead of latest China-US trade talks

Asian markets rally ahead of latest China-US trade talks

The Stara day ago

HONG KONG: Stocks rallied Monday (June 9) on hopes that a fresh round of China-US trade talks later in the day will ease tensions between the economic superpowers, while investors were also cheered by forecast-topping US jobs data.
The gains extended a run-up across global markets in recent weeks as fears about Donald Trump's tariff blitz subside and countries make deals with Washington.
All eyes are on London, where top officials from China and the United States are due to meet for more negotiations aimed at preserving a fragile truce agreed last month that slashed eye-watering tit-for-tat levies.
The talks come days after Trump and Chinese counterpart Xi Jinping held their first publicly announced telephone talks since the US president returned to the White House.
They were helped by news that Beijing had on Saturday approved some applications for rare-earth exports, while plane giant Boeing will start sending commercial jets to China for the first time since April.
Optimism that the two sides will make a breakthrough boosted Asian markets, with Hong Kong up more than one percent, while Tokyo, Shanghai, Seoul, Singapore, Taipei and Manila also advanced.
The gains followed a strong lead from Wall Street, where all three main indexes closed more than one percent higher after figures showing the world's largest economy created a forecast-beating 139,000 jobs last month.
While the figures for the previous two months were revised down, the data indicated that the economy remained robust, and tempered worries sparked by Wednesday's report by payroll firm ADP showing a big miss on private hiring.
Eyes will now turn to the Federal Reserve as it decides whether to lower interest rates, with many economists warning that Trump's tariffs could reignite inflation, hit supply chains and drag on consumer sentiment.
"The May minutes and recent comments by several (policy board) members... suggest the Fed is highly attentive to the risk that tariffs will lead to a persistent inflation shock," wrote analysts at Bank of America.
"Those risks could come into focus for markets by the fall."
Michael Hewson at MCH Market Insights remained positive for the outlook for the US economy.
"For now, the US economy continues to look reasonably resilient although the recent ADP jobs report showed some evidence of a slowdown in May," he said in a commentary.
"However on the whole there is little sign that the economy is on the cusp of an economic shock at the moment, despite the unpredictable nature of the current US administration." - AFP

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China extends anti-dumping probe into EU pork imports
China extends anti-dumping probe into EU pork imports

Free Malaysia Today

time29 minutes ago

  • Free Malaysia Today

China extends anti-dumping probe into EU pork imports

Beijing launched the probe into imported European pork amid Brussels' scrutiny of Chinese state subsidies for the electric-vehicle industry. (EPA Images pic) BEIJING : China said today it was extending an anti-dumping investigation into pork products imported from the EU, one of several trade pressure points between the two economic giants. Beijing launched the probe last year amid Brussels' scrutiny of Chinese state subsidies for the electric-vehicle (EV) industry. The Chinese commerce ministry said it would prolong the inquiry for six months 'in view of the complexity of this case'. The investigation period will now expire on Dec 16, the ministry said in a brief statement. The trade spat erupted last summer when the EU moved towards imposing hefty tariffs on EVs imported from China, arguing that Beijing's subsidies were unfairly undercutting European competitors. Beijing denied that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products. The EU imposed extra import taxes of up to 35% on Chinese EV imports last October. Beijing later lodged a complaint with the World Trade Organization, which said in April that it would set up an expert panel to assess the EU's decision. China and the EU will host a summit next month marking 50 years since Beijing and Brussels established diplomatic ties. The two sides will discuss setting minimum prices for Chinese EVs in Europe and opening a 'green channel' for rare earth exports to the 27-nation bloc, according to official statements.

Chinese state media calls for crackdown on ‘zero-mileage used cars'
Chinese state media calls for crackdown on ‘zero-mileage used cars'

Free Malaysia Today

timean hour ago

  • Free Malaysia Today

Chinese state media calls for crackdown on ‘zero-mileage used cars'

The sale of zero-mileage used cars is seen by many Chinese automakers as an effective way of clearing out an ever-growing inventory of unsold cars. (AFP pic) BEIJING : The Chinese practice of selling brand new cars as heavily discounted second-hand vehicles to get rid of inventory should be ended, the official newspaper of the country's governing Communist Party said in an article published today. The People's Daily, which often signals the positions of China's top Party leaders on a variety of issues, called for a crackdown on the practice, also known as zero-mileage used cars, just weeks after Great Wall Motor's Chairman Wei Jianjun publicly condemned it and China's commerce ministry met with Chinese automakers to discuss it. While China's commerce ministry did not make public its position, the People's Daily struck a harsh tone, calling out the inflation of sales data motivating Chinese carmakers and urging 'tough regulatory action' to restore market order. 'This disguised form of price cutting disrupts normal market order and is a striking example of the auto industry's 'involution',' the People's Daily said, using a term popular in China that describes a race to the bottom driven by excessive competition. 'Once market competition rules are properly enforced, 'zero-mileage used cars' won't be able to run far – or for long.' China is experiencing growing deflationary pressures as US tariffs add to the gloomy mood in the world's No.2 economy. Companies in sectors from fast food to high fashion have been cutting prices amid concerns about oversupply and sluggish household demand. Price wars have gripped the Chinese auto industry in recent years, partly driven by slumping domestic consumption and overcapacity that has left many struggling to meet sales targets. While the sale of zero-mileage used cars is seen by many Chinese automakers as an effective way of clearing out an ever-growing inventory of unsold cars, with domestic and overseas consumers lured by deep discounts on what are still brand new cars, the state-run newspaper listed a litany of negative effects caused by the practice. 'For manufacturers, this sales tactic may help reduce inventory in the short term but compresses profit margins, increases losses, and hinders investment in product quality and innovation – ultimately harming sustainable development,' the article said. 'For consumers, what seems like a good deal in terms of price comes with hidden risks: the loss of first-owner benefits, potential battery degradation, and steeper depreciation when reselling,' it continued, adding the practice undermines fair competition, distorts market data, and disrupts both new and used car markets. The People's Daily singled out manufacturers of electric vehicles as needing to move beyond 'data worship' and competing on volume, in order to focus on product quality and technological innovation. It did not name any specific automakers. The newspaper also listed measures Chinese regulatory authorities should adopt in order to prevent the sale of zero-mileage used cars, including strengthening oversight of second-hand vehicle registration, establishing a vehicle lifecycle tracking system, and strictly controlling the practice of immediate resale after registration.

Huawei founder admits chips still trail US by ‘one generation'
Huawei founder admits chips still trail US by ‘one generation'

Malay Mail

timean hour ago

  • Malay Mail

Huawei founder admits chips still trail US by ‘one generation'

BEIJING, June 10 — Chinese tech giant Huawei's chips still 'lag behind the United States by one generation', state media quoted its founder and CEO Ren Zhengfei as saying in a rare interview on Tuesday. Washington last month unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically Huawei's Ascend chips, would put them at risk of violating US export controls. The Shenzhen-based company has been at the centre of an intense standoff between the economic supergiants after Washington warned its equipment could be used for espionage by Beijing, an allegation Huawei denies. Speaking to the People's Daily, the official newspaper of the ruling Communist Party, 80-year-old Ren insisted the United States had 'exaggerated' Huawei's achievements. Tougher controls in recent years have prevented US chip giant Nvidia, one of Huawei's rivals, from selling certain AI semiconductors — widely regarded as the most advanced in the world — to Chinese firms. As a result, it is now facing tougher competition from local players in the crucial market, including Huawei. Nvidia's chief executive Jensen Huang told reporters last month that Chinese companies 'are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development'. But Ren said Huawei was 'not that great yet', according to the article published on the newspaper's front page Tuesday. 'Many companies in China are making chips, and quite a few are doing well — Huawei is just one of them,' he added. When asked about 'external blockades and suppression' — a veiled reference to US export restrictions on Beijing — Ren said he had 'never thought about it'. 'Don't dwell on the difficulties, just get the job done and move forward step by step,' he added. Sanctions since 2019 have curtailed the firm's access to US-made components and technologies, forcing it to diversify its growth strategy. China has accused the United States of 'bullying' and 'abusing export controls to suppress and contain' the country's firms. — AFP

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