Asian markets waver to start key week for trade, US data
Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday.
Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates.
Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports — particularly on jobs — indicating the world's number one economy was slowing.
Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow.
In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday.
With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension.
'The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days' said Chris Weston of Pepperstone.
'As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently,' he added.
Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal.
Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence — an area of fierce competition between Beijing and Washington.
Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China.
Investors are betting that AI will transform the global economy, and last month Nvidia — the world's leading semiconductor producer — became the first company ever to hit $4 trillion in market value.
– Key figures at 0300 GMT –
Hong Kong – Hang Seng Index: UP 0.2 percent at 24,896.02
Shanghai – Composite: UP 0.3 percent at 3,644.73
Tokyo – Nikkei 225: Closed for a holiday
Pound/dollar: UP at $1.3457 from $1.3451 on Friday
Euro/dollar: UP at $1.1667 from $1.1643
Dollar/yen: DOWN at 147.56 yen from 147.79 yen
Euro/pound: UP at 86.70 pence from 86.54 pence
West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel
New York – Dow: UP 0.5 percent at 44,175.61 (close)
London – FTSE 100: DOWN 0.1 percent at 9,095.73 (close)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
10 hours ago
- Shafaq News
Oil climbs on US-China truce and geopolitical hopes
Shafaq News Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world's two largest oil consumers. Brent crude futures gained 26 cents, or 0.39%, to $66.89 a barrel by 0015 GMT, while U.S. West Texas Intermediate crude futures rose 22 cents, or 0.34%, to $64.18. U.S. President Donald Trump extended a tariff truce with China by another 90 days, a White House official said on Monday, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season. This raised hopes that an agreement could be attained between the world's two largest economies, and could help sidestep a virtual trade embargo between them. Tariffs risk slowing down economic growth, which could sap global fuel demand and drag oil prices lower. Investors are also looking ahead to a meeting between Trump and Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. The meeting is set amid heightened U.S. pressure on Russia, with the threat of harsher penalties on Russian oil buyers such as China and India if no peace deal is reached that could upset oil trade flows. "Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market," ANZ senior commodity strategist Daniel Hynes wrote in a note. Trump set a deadline of last Friday for Russia to agree to peace in Ukraine or have its oil buyers face secondary sanctions, while pressing India to reduce purchases of Russian oil. Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. The risk of those sanctions being enacted has receded ahead of the August 15 Trump-Putin meeting. Also on the radar is U.S. inflation data later in the day, that could hint at the Federal Reserve's interest rate path. Any sign that the central bank may cut rates soon would support crude prices.
Shafaq News
a day ago
- Shafaq News
Kirkuk–Baniyas Pipeline: Iraq's direct oil lifeline to the Mediterranean
Shafaq News Amid shifting geopolitical dynamics and volatile global energy markets, Iraq and Syria are revisiting the prospect of reviving the Kirkuk–Baniyas oil pipeline — a strategic export route that once carried Iraqi crude to the Mediterranean before decades of conflict and political rupture shut it down. Its restoration could give Baghdad a direct outlet to European markets, reducing dependence on Gulf ports and the Strait of Hormuz. On August 9, Syrian Minister of Energy Mohammad al-Bashir announced plans to visit Iraq to discuss the rehabilitation of the line linking Iraq's northern oilfields to Syria's Baniyas terminal, in a step aimed at strengthening bilateral energy cooperation. From Strategic Vision to Dormancy The concept of a northern export route emerged in the 1930s but materialized after Iraq's oil nationalization in 1972, as Baghdad sought to bypass Basra's foreign-controlled terminals. Stretching 880 kilometers from the 'K1' station in Kirkuk to the Syrian coast, the system included three parallel pipes, 12 to 30 inches in diameter, with key transit hubs such as 'K3' in Haditha. Designed to transport up to 1.4 million barrels per day, the line reached peak use in the 1980s, moving substantial volumes to Europe. Its operation was repeatedly interrupted — halted in 1982 when Syria sided with Iran during the Iran–Iraq War, reduced to minimal flows in the 1990s under UN sanctions, briefly restarted in 2000, and permanently shut after the 2003 US-led invasion left large sections in disrepair. Northern Oil Industry and Strategic Stakes The pipeline's operator, the North Oil Company — established in 1927 as the Iraq Petroleum Company before nationalization — manages some of the Middle East's oldest and richest oilfields, including Kirkuk, Bai Hassan, Jambur, Khabbaz. Based in Kirkuk, the company currently produces 250,000–300,000 barrels per day but plans, in partnership with BP, to expand Kirkuk field output to 750,000 barrels. Such growth would require additional export capacity to relieve pressure on southern terminals. Baghdad views the Kirkuk–Baniyas corridor as a tool to diversify routes, secure energy flows, and improve marketing flexibility. For Syria, it promises transit fees, increased port activity, and a renewed role as a regional energy hub. 'Its revival is not just an economic project — it is a strategic choice that will give Iraq greater maneuverability in marketing its crude and strengthen its energy security,' Iraqi Prime Minister's financial advisor Mudhir Mohammad Saleh told Shafaq News. Energy analyst Youssef Abdullah estimated the restored pipeline could handle 200,000–300,000 barrels per day, providing Iraq with a direct Mediterranean link and reducing reliance on the politically sensitive Strait of Hormuz. He added that the project could also serve as a foundation for broader Iraqi–Syrian cooperation in energy and transportation. Rehabilitation Plans and Challenges A senior North Oil Company official said an Iraqi delegation recently traveled to Syria to advance discussions, which covered: -A full technical survey of the pipeline and related infrastructure. -Formation of joint Iraqi–Syrian committees to assess security and technical requirements. -A comprehensive rehabilitation plan, potentially including rerouted segments and upgraded pumping stations. The official estimated the cost at $300–600 million, with possible financing from the federal budget, foreign partnerships, or regional investors. Despite these efforts, obstacles remain significant: extensive infrastructure damage, security risks along the route, political complexities, and the need to navigate international sanctions on Syria. Analysts caution that while the project could attract foreign investment to Iraq's northern energy sector, it may also face resistance from actors wary of engaging in sanctioned territories.
Iraqi News
a day ago
- Iraqi News
Asian markets waver to start key week for trade, US data
Hong Kong – Asian markets mostly rose Monday as investors eyed a week dominated by speculation about US inflation data and a prolonged pause for Washington's tariffs on China. Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday. Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates. Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports — particularly on jobs — indicating the world's number one economy was slowing. Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow. In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday. With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension. 'The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days' said Chris Weston of Pepperstone. 'As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently,' he added. Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal. Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence — an area of fierce competition between Beijing and Washington. Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China. Investors are betting that AI will transform the global economy, and last month Nvidia — the world's leading semiconductor producer — became the first company ever to hit $4 trillion in market value. – Key figures at 0300 GMT – Hong Kong – Hang Seng Index: UP 0.2 percent at 24,896.02 Shanghai – Composite: UP 0.3 percent at 3,644.73 Tokyo – Nikkei 225: Closed for a holiday Pound/dollar: UP at $1.3457 from $1.3451 on Friday Euro/dollar: UP at $1.1667 from $1.1643 Dollar/yen: DOWN at 147.56 yen from 147.79 yen Euro/pound: UP at 86.70 pence from 86.54 pence West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel New York – Dow: UP 0.5 percent at 44,175.61 (close) London – FTSE 100: DOWN 0.1 percent at 9,095.73 (close)
