Asian markets rally ahead of latest China-US trade talks
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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Qualcomm strengthens AI portfolio with US$2.4bil Alphawave deal
FILE PHOTO: A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo U.S. chipmaker Qualcomm on Monday agreed to acquire British semiconductor company Alphawave for about $2.4 billion as part of efforts to strengthen its artificial intelligence technology. Alphawave shareholders will receive 183 pence per share, a nearly 96% premium to the price immediately before Qualcomm disclosed its interest in the company. The shares jumped 22% in early London trade to just below the offer price. U.S.-based firms have been snapping up British assets, taking advantage of a market that is plagued by comparatively weaker valuations and stunted growth. Alphawave, which designs and licenses semiconductor technology for data centers, networking and storage, had garnered takeover interest from Qualcomm and SoftBank-owned chip tech provider Arm in early April for its 'serdes' technology. The technology underpins the speed at which data is processed by chips - crucial for AI development - and serves as the foundation for Broadcom's and Marvell Technology's multibillion-dollar bespoke chip businesses. Arm walked away after initial discussions with Alphawave, Reuters exclusively reported in April citing sources. Qualcomm also tabled two alternative all-share offers to Alphawave's shareholders, after receiving multiple extensions from the UK's takeover panel to table a firm offer. The British company said it considers the terms of the cash offer to be fair and reasonable and intends to unanimously recommend it to its shareholders. Alphawave also completed the disposal of its stake in WiseWave, its joint venture with Chinese investment firm Wise Road Capital, to existing state shareholders on Monday. - Reuters
The Star
an hour ago
- The Star
DBS tops US$100bil market value in first for Singapore banks
A customer walks past automated teller machines (ATM) at a DBS Group Holdings Ltd. bank branch in Singapore, on Wednesday, Feb. 17, 2021. - Photographer: Lauryn Ishak/Bloomberg DBS Group Holdings Ltd. became the first bank in Singapore to top US$100 billion in market value, helped by a softer US currency that amplified gains on the local stock market. Southeast Asia's top lender gained as much as 0.8% in Singapore trading on Monday to hit S$45.50. The firm is trading at a market capitalization of S$129 billion ($100.2 billion), extending its gains this year to to 4.3%. The advance in DBS's share price in US-dollar terms was driven by the weaker greenback. So far this year, the Singapore dollar has appreciated about 6% against the US dollar. Singapore lenders have pledged in recent months to hand over billions of dollars in surplus capital to investors, encouraged by record-high earnings last year. DBS in particular, has benefited from increases in lending and wealth fees. Chief Executive Officer Tan Su Shan took charge of DBS in March from Piyush Gupta after his 15-year leadership. Tan said at her first earnings call last month that the bank seeks to benefit from supply-chain changes undertaken by its clients and increased demand for hedging foreign exchange exposure. DBS is the third-largest wealth manager in Asia, excluding mainland China, according to data compiled by industry publication Asian Private Banker. Net new money for its business catering to the rich came in at S$21 billion last year, demonstrating the strong inflows that have exceeded S$20 billion for the past three years through 2024. - Bloomberg
New Straits Times
an hour ago
- New Straits Times
Oil prices dip on weak China data, but hopes for US-China trade deal support
SINGAPORE: Oil prices slipped on Monday on weak China data, but held on to most of last week's gains, as investors awaited US-China trade talks in London later in the day, hoping a deal could boost the global economic outlook and fuel demand. Brent crude futures slipped 18 cents, or 0.27 per cent, to US$66.29 a barrel by 0644 GMT. US West Texas Intermediate crude fell 15 cents, or 0.23 per cent, to US$64.43. China's exports growth slowed to a three-month low in May as US tariffs slammed shipments, data showed, while factory-gate deflation deepened to its worst in two years, heaping pressure on the world's second-largest economy both at home and abroad. The data also showed that China's crude oil imports declined in May to the lowest daily rate in four months, as state-owned and independent refiners underwent widespread planned maintenance. "Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above US$65," said IG market analyst Tony Sycamore, referring to WTI prices. "That said I would expect the reaction to be less extreme than usual, given US and China trade talks later today." Brent had advanced 4 per cent, and WTI gained 6.2 per cent, last week for their first weekly gain in three, as the prospect of a US-China trade deal boosted some investors' risk appetite. A US jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting gains last week. The prospect of a China-US trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced on May 31 another big output hike for July. HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank's US$65-per-barrel Brent forecast from the fourth quarter of 2025, it said in a research note on Friday. Capital Economics researchers said they believe the "new faster pace of (OPEC+) production rises is here to stay". WTI's discount to Brent has also been narrowing on a combination of increased OPEC+ output, modest US crude oil supply growth and the potential for output declines next year, ING analysts led by Warren Patterson said in a note. The US benchmark strengthened on supply concerns after wildfires disrupted production in Canada and robust US fuel demand during the summer driving season. The number of operating US oil rigs, an early indicator of future output, fell by nine to 442 last week, energy services firm Baker Hughes said on Friday.
