
Japan's Nikkei jumps as chip stocks rally ahead of Sino-US talks
TOKYO: Japan's Nikkei share average advanced 1% on Monday ahead of trade talks between the US and China in London later in the day, with investors watching for any easing of restrictions over semiconductor shipments.
Both countries are under pressure to relieve tensions, with China dominating global exports of rare earth minerals needed for chips and other advanced technologies, while the US has curtailed exports of chip-design software to China.
A phone call between US President Donald Trump and Chinese counterpart Xi Jinping on Thursday led to the Monday talks, with Trump later saying rare earth supply would no longer be a problem for the United States.
Japan's Nikkei bounces as US tariff fears ease, yen softens
The Nikkei rose 1.05% to 38,137.09 as of the midday trading recess.
The broader Topix rose 0.63%.
A sub-index of growth shares rallied 0.8%, outpacing a 0.47% rise in value shares.
Chip-testing equipment maker and Nvidia supplier Advantest was Nikkei's biggest gainer in index-point terms with a 5.17% climb.
'The trade talks in London are at the very least a step in the direction of easing restrictions on chip shipments between the US and China,' buoying the sector on Monday, said Yunosuke Ikeda, chief macro strategist at Nomura.
Artificial intelligence-focused startup investor SoftBank Group jumped 4.03%. Chip-sector stocks Disco and Lasertec rose about 3% each.
Otsuka Holdings, the Nikkei's biggest percentage gainer, soared 8.65% after the drugmaker said its experimental therapy for a potentially life-threatening kidney disease more than halved severe levels of protein in the urine of patients.
On the other end, iSpace was poised to fall by the daily limit for the second straight session after its second failed attempt to put a lunar lander on the moon last week.
The stock was set to slide 20%, with offers to sell outnumbering bids by 9-to-1.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
27 minutes ago
- Express Tribune
US China trade deal: Chinese stocks surge as Hang Seng Index rises after US-China trade deal announced
Chinese stocks rose on June 11, bolstered by signs of easing trade tensions between the United States and China after a two-day meeting in London. The meeting saw both countries agree on a preliminary framework to de-escalate trade conflicts, which helped restore investor confidence. As reported by Bloomberg, the onshore CSI 300 Index, which tracks the largest companies on the Shanghai and Shenzhen stock exchanges, gained 1%, marking its most significant rise in nearly a month. Meanwhile, a measure of Chinese stocks listed in Hong Kong advanced by 0.9%, reaching its highest point since March. The market rally followed the announcement of an agreement between the US and China, which focused on the implementation of consensus reached earlier in Geneva. Progress made in the trade talks, coupled with positive rhetoric from both sides, has raised hopes that the dispute between the two largest economies in the world could be heading towards resolution. The agreement also addresses China's export restrictions on rare earth minerals and magnets, which have been a point of contention between the two nations. US Commerce Secretary Howard Lutnick confirmed the framework at the conclusion of the London talks, highlighting its potential to put the trade truce back on track. US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said — Reuters (@Reuters) June 11, 2025 However, market reactions were largely muted, with S&P 500 futures showing little movement, and only modest fluctuations in the offshore yuan. Chris Weston, head of research at Pepperstone, noted that the lack of significant market reaction suggested that the outcome of the talks had already been priced in. The Daily Fix – Big trading levels in full view US-China talks continue to progress well – superficially, at least – with talks set to spill over for a third day - a factor that keeps the bid in risk and the sellers feeling they may be able to execute orders at higher/better… — Chris Weston (@ChrisWeston_PS) June 10, 2025 'The devil will be in the details,' Weston said, emphasising the importance of how rare earths exports to the US are handled and the subsequent access for US-produced chips to China. Despite the limited immediate impact on market movements, the outlook for a resolution in the trade conflict has provided Chinese and Hong Kong stocks with a positive boost ahead of further details from the ongoing trade talks.


Express Tribune
an hour ago
- Express Tribune
US-China reach trade agreement to ease rare earth export curbs
Chinese Vice Premier He Lifeng leaves Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. Photo:REUTERS Listen to article US and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. At the end of two days of intense negotiations in London, US Commerce Secretary Howard Lutnick told reporters the framework deal puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. But the Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. I will be disappointed if it's true 'Rare Earth Export Curbs Lifted'. Global security from expanded wars of the waning US hegemon depends on those curbs. — Kathleen Tyson (@Kathleen_Tyson_) June 11, 2025 Lutnick said the agreement reached in London would remove some of the recent US export restrictions, but did not provide details after the talks concluded around midnight London time (2300 GMT). "We have reached a framework to implement the Geneva consensus and the call between the two presidents," Lutnick said. "The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework." In a separate briefing, China's Vice Commerce Minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. The dispute may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding US complaints about China's state-led, export-driven economic model. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center in Washington. "They are back to square one but that's much better than square zero," Lipsky added. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the US side and from 10% to 125% on the Chinese side. Investors, who have been badly burned by trade turmoil before, offered a cautious response and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.57%. "The devil will be in the details, but the lack of reaction suggests this outcome was fully expected," said Chris Weston, head of research at Pepperstone in Melbourne. "The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." Lutnick said China's restrictions on exports of rare earth minerals and magnets to the U.S. will be resolved as a "fundamental" part of the framework agreement. "Also, there were a number of measures the United States of America put on when those rare earths were not coming," Lutnick said. "You should expect those to come off ... in a balanced way." I will be disappointed if it's true 'Rare Earth Export Curbs Lifted'. Global security from expanded wars of the waning US hegemon depends on those curbs. — Kathleen Tyson (@Kathleen_Tyson_) June 11, 2025 US President Donald Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. A resolution to the trade war may require policy adjustments from all countries to treat financial imbalances or otherwise greatly risk mutual economic damage, European Central Bank President Christine Lagarde said on a rare visit to Beijing on Wednesday. Phone call helped The second round of US-China talks was given a major boost by a rare phone call between Trump and Chinese President Xi Jinping last week, which Lutnick said provided directives that were merged with Geneva truce agreement. Customs data published on Monday showed that China's exports to the US plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on US inflation and its jobs market has so far been muted, tariffs have hammered US business and household confidence and the dollar remains under pressure. Lutnick was joined by US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent at the London talks. Bessent departed hours before their conclusion to return to Washington to testify before Congress on Wednesday. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the US responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. China, Mexico, the European Union, Japan, Canada and many airlines and aerospace companies worldwide urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, according to documents released Tuesday. Just after the framework deal was announced, a US appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them.


Business Recorder
an hour ago
- Business Recorder
Zara owner Inditex's early summer sales disappoint as tariffs fuel uncertainty
MADRID: Zara owner Inditex missed expectations for first-quarter sales and early summer trading on Wednesday, as tariff fallout complicated the fast-fashion retailer's efforts to maintain strong growth. Concerns about resurgent inflation and an economic slowdown triggered by U.S. President Donald Trump's erratic tariff rollout have already dampened shopping enthusiasm in the United States and other major consumer markets. Inditex's competitors have also experienced a sluggish spring. The company reported a slower start to its summer sales, with currency-adjusted revenue growth of 6% from May 1 to June 9, compared to analysts' expectations of 7.3%, and down from 12% growth in the same period a year ago. Revenues for its first quarter ending April 30 were 8.27 billion euros ($9.44 billion), missing analysts' average estimate of 8.36 billion euros, according to an LSEG poll. Net income increased 0.8% in the quarter, to 1.3 billion euros. Inditex shares were down 4% in early trading, making it the second-worst performer on the Stoxx 600 index. Inditex did not provide a reason for the weaker sales growth. In a statement, it called its performance 'solid', having labelled it 'very robust' at its previous results announcement in March, when annual sales were up 10.5%. 'Overall weaker sales growth is a combination of demand volatility in Q1, but we need to take a step back and look at mid single-digit growth as actually being quite good in this environment,' said Bernstein analyst William Woods. Inditex rival H&M's sales have also struggled, growing by just 1% in March compared to 4% in the same period a year earlier. Its December-February revenue grew by 2%, below analyst forecasts. Rainy weather in Spain, which accounts for 15% of Inditex's global sales, has also likely hurt the company's performance, according to Bernstein analysts. The Dow rose a quarter of one percent, the S&P 500 added half a percent, Spain experienced one of its wettest ever springs, with Madrid recording three times its usual levels of rainfall for the season. With volatility in foreign exchange markets driven by trade risks, Inditex said currency fluctuations will have a bigger impact than previously expected, predicting a 3% negative effect on its 2025 sales, compared with the 1% it flagged in March.