Asia stocks start tepid after three-day rally
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Asian stocks traded in a narrow range at Thursday's open, easing after three days of gains driven by bets on a Federal Reserve rate cut next month.Japanese indexes retreated while South Korea advanced. Chinese equities will be in focus after a gauge of US-listed Chinese shares rose for a second session, helped by earnings from Tencent Holdings Ltd. US stocks closed at a record as Apple Inc. and Amazon.com Inc. climbed. Bitcoin reached an all-time high. Treasuries were steady Thursday after rallying in the prior session. The dollar fell for a third consecutive day.Stocks have soared to record levels and volatility has slumped to multi-year lows as traders now fully expect a quarter-point move by the Fed after an inflation print earlier this week was seen as benign. External pressure is also coming from President Donald Trump's administration with Treasury Secretary Scott Bessent making his most explicit demand yet for the central bank to execute a cycle of cuts.'As the labor market continues to weaken, we think the US central bank will resume interest rate cuts next month, with 25-basis-point cuts at each meeting through January 2026 for a total of 100 basis points,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.Bessent — who suggested the central bank's benchmark rate ought to be at least 1.5 percentage points lower than it is now — said officials might have cut rates if they'd been aware of the revised data on the labor market that came out a couple of days after the latest meeting.'We could go into a series of rate cuts here, starting with a 50 basis-point rate cut in September,' he said in a television interview on Bloomberg Surveillance Wednesday.The Federal Reserve Open Market Committee last month kept their benchmark at a target range of 4.25% to 4.5%.'There is scope for the FOMC to take a more dovish tone next year, particularly if Powell chooses to give up his position as governor once his stint as chair comes to an end,' Jane Foley, strategist at Rabobank in London, wrote in a note.Bessent also added that the Bank of Japan is falling behind the curve in addressing inflation, in a rare comment admonishing policy decisions by a foreign central bank. The yen was 0.4% stronger against the dollar early Thursday.Meanwhile, Trump, who has also criticized the Fed for not easing the rates, said he may name the next Fed chair 'a little bit early' and added that he was down to three or four potential candidates as he looks for a successor to Powell.A report on producer prices due Thursday will offer insights on additional categories that feed directly into the Fed's preferred price gauge — which is scheduled for later this month.'As the market continues to digest the shift in the trajectory of the real economy following the combination of July's inflation and employment data, it follows intuitively that the question has become: how large of a cut should Powell deliver?' said Ian Lyngen at BMO Capital Markets.In other corporate news, Trump's controversial plan to take a cut of revenue from chip sales to China has US companies reconsidering their plans for business with the country, offering a model for circumventing years of trade tensions.Elsewhere, geopolitical tensions remained on edge after the US president warned he would impose 'very severe consequences' if Vladimir Putin didn't agree to a ceasefire agreement later this week, following a call with European leaders ahead of his meeting with the Russian president
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Indian Express
27 minutes ago
- Indian Express
Trump tariffs: Why gem & jewellery sector fears rivals could undercut Indian exports
Facing a sharp blow from the US' steep tariff hike, India's gem and jewellery export industry has sought government intervention to cushion the impact and sustain its competitiveness in global markets. The sector finds itself at a crossroads, as rivals like Turkey, Vietnam and Thailand continue to enjoy significantly lower tariffs, making Indian products less attractive in the lucrative American market. The US accounts for nearly 30 per cent — or close to $10 billion — of the total gem and jewellery exports. Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), warned that unless corrective action is taken, India risks losing its hard-won position as a key supplier to the US. The threat isn't just financial — it's strategic. Bhansali expressed concern that international trade may start rerouting via low-tariff countries like Mexico, Canada, UAE, Oman and Turkey, undermining transparency and sidelining legitimate Indian players. This is particularly alarming since 85 per cent of exports from the SEEPZ Special Economic Zone — that employs over 50,000 people — are to the US. For cut and polished diamonds, the US remains the market for nearly half of India's total exports. A prolonged tariff standoff, Bhansali warned, could bring the industry to a grinding halt. The industry has asked the government to roll out a targeted scheme — similar to the Duty Drawback — that would reimburse 25–50 per cent of the new US-bound tariff burden between August and December 2025. GJEPC believes this is vital to prevent disruption across the value chain, stretching from artisanal karigars to large-scale manufacturers. In addition to tariff relief, exporters are calling for temporary financial breathing space. They've requested a six-month deferment on interest payments, a measure that echoes the pandemic-era support extended by lending institutions. With cancelled orders threatening to lock up working capital and push units towards non-performing asset (NPA) status, the Council has urged the government to allow SEZ units to release unsold stock into the domestic market. The sector is also grappling with shipment delays triggered by global uncertainty. To address this, banks are being asked to extend pre-shipment loan due dates by 90 days without penalties. The GJEPC has also called for the reintroduction of the interest subvention scheme, which could offer much-needed liquidity during a period of heightened risk. It has asked both the Centre and the RBI to consider short-term relief packages tailored to the sector's needs. Ironically, while the threat looms large, recent data points to a short-term spike in trade. Gross exports of gems and jewellery rose by nearly 16 per cent in July 2025, reaching $2.18 billion (Rs 18,756 crore), up from $1.88 billion (Rs 15,700 crore) a year ago. Imports too surged 26.5 per cent, as traders rushed to complete orders before the tariff hike took effect in August. A similar surge was seen in cut and polished diamond exports, which jumped nearly 18 per cent to $1.07 billion (Rs 9,230 crore), largely due to pre-emptive stocking by global buyers. This uptick, however, may be short-lived. Colin Shah, MD of Kama Jewelry, termed July's performance as a 'cautionary uptick' — a final flourish before the sector feels the full weight of tariff-induced drag. While new trade agreements like the India-UAE CEPA have unlocked opportunities, the broader landscape remains volatile. High gold prices, geopolitical uncertainty, and unstable metal markets continue to cloud the outlook, he said. The festive and wedding seasons in India may help absorb some of the shock by boosting domestic demand. But for the export-reliant segment, all eyes are now on the trajectory of India-US trade negotiations. With the current 50 per cent tariffs in place, sustaining recent growth could prove difficult, and industry leaders are hoping that policymakers will step in before the sparkle fades.
Mint
27 minutes ago
- Mint
India's ‘Next Gen GST' may pave way for single tax slab System: Report
Senior government officials have described the proposed GST tax reforms as 'Next Gen GST', a significant overhaul that could eventually pave the way for a single sales/services tax rate by 2047. The proposal, if approved by the GST council, aims to replace the current four-slab structure in the goods and services tax (GST) regime with a two-slab regime, featuring rates of 5 per cent and 18 per cent, while also retaining a 40 per cent tax on 'sin goods.' This new system would eliminate the 12 per cent and 28 per cent tax brackets, PTI reported. The primary goal of this reform is to boost the economy and also serve to mitigate tariff threats. Calling it the "next Gen GST', one government official said "it is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there." said officials who spoke to PTI. They also said the new structure would mean that almost all of the common use items will move to the lower tax bracket, leading to price cuts, which in turn would boost consumption. The changes are a result of nearly six months of extensive deliberations and meetings, with an aim of creating a stable tax environment and preventing the accumulation of input tax credit (ITC). The new structure is designed to cater to the needs of the middle class, poor, farmers, and MSMEs in mind. Daily use items, such as packaged food, beverages and apparel would be moved to the lower 5 per cent from 12 per cent bracket to boost consumption of these products. "Once the system is put in place and India becomes a developed nation, we can think about a single rate GST," said the official, adding that a single rate structure is suitable for developed countries where income and spending capacities are uniform. "We have looked at every item, item by item and in some cases we have gone back and forth 3-4 times. Whether it is pesticide for use by farmers or pencils for students or some raw material or intermediaries for MSMEs, every item has been discussed threadbare and categorized in the merit or standard slab,' the official said. According to the proposal, a significant number of items would be re-categorized: 12 to 5 per cent: As many as 99 per cent of the items in the 12 per cent category such as butter, fruit juices and dry fruits would move to 5 per cent tax rate. 28 to 18 per cent: About 90 per cent of the items currently taxed at 28 per cent, including electronic items like ACs, TVs, fridges, and washing machines as well as other goods like cement will be moved to the 18 per cent slab. The Council is expected to meet next month to deliberate on the tax reform proposal. The move comes after US President Donald Trump imposed an additional 25 per cent tariff on all goods India exports to the US, bringing the total to 50 per cent from August 27 to punish New Delhi for its crude oil purchases from Russia. The tariffs are likely to impact $40-billion of non-exempt Indian exports such as that of gems and jewelry, textiles and footwear. Prime Minister Narendra Modi in his Independence Day address to the nation on Friday emphasized that India should become self-reliant and consume what is made in India, PTI reported.
News18
an hour ago
- News18
Gilgit-Baltistan: A New Uprising In Pakistan's ‘Last Colony' Against Oppressive Rule
Last Updated: For decades, GB has sought autonomy, political representation, and development aligned with local needs and ambitions, but has faced growing neglect and exploitation from Pakistan A fresh wave of resistance against the Pakistani state's illegal occupation of the region is being witnessed in Gilgit-Baltistan (GB). The local traders and business community of GB have launched a movement to oppose trade and travel between Pakistan and China via the Khunjerab Pass. This latest protest is the outcome of the relentlessly exploitative economic and political conditions imposed on GB by the Pakistani state. The protest by the traders has come close on the heels of a mass movement by the local residents of GB against the controversial Land Reforms Act, 2025, passed on May 21. For the last four weeks, traders have been continuing with a sit-in at the Karakoram Highway, bringing the region to a standstill. They are demanding recognition of local interests by Islamabad as well as its accountability. To understand GB's tumultuous relationship with Islamabad, it is important to look at the history of this asymmetric and oppressive power dynamic, which continues to disenfranchise, marginalise, and politically erase the identity, aspirations, and future of the people of this region. According to the US-based Middle East Media Research Institute (MEMRI), Pakistan has treated GB more as a colony rather than as part of the federation. 'The region has long been regarded by Pakistan not as a cherished part of the federation, but as a distant and burdensome periphery. Successive governments have turned a blind eye to the fundamental needs of the humble inhabitants of Gilgit-Baltistan, relegating the region to an ad hoc governance framework administered from afar—governed not by participatory laws, but by decrees handed down from Islamabad," says a recent MEMRI report. The origins of this injustice lie in the 1949 Karachi Agreement. Under this 'agreement", the control of GB (then called Northern Areas) was transferred from Pakistan-occupied Jammu and Kashmir (PoJK) to Islamabad without any representative from the region. Since then, Islamabad has directly ruled GB through the Ministry of Kashmir Affairs, using the draconian colonial-era Frontier Crimes Regulation. Its constitutional status remains in limbo as Pakistan has tried to use it to build another false narrative by linking it to the resolution of the Kashmir issue with India. But to deal with growing frustration among the local residents, it introduced limited self-governance reforms to the region, renaming it 'Gilgit and Baltistan' in 2009. However, this move was exposed as hollow; right from the beginning, the GB assembly was systematically populated by 'compliant figureheads or puppets, rather than leaders who dared to interpret their roles with independence and purpose," as emphasised in the MEMRI analysis. For decades, GB has sought autonomy, political representation, and development aligned with local needs and aspirations, but instead has faced growing neglect and exploitative policies from Pakistan. The Pakistani magazine Herald once described Gilgit-Baltistan as Pakistan's 'last colony", a phrase that aptly reflects Islamabad's governing attitude toward the region. Very recently, GB was engulfed in massive demonstrations against the forcibly passed Land Reforms Act, 2025. This legislation was opposed by the people, as it would enable land grabs by Punjabi landlords and the Pakistani military, displace the local population, and exploit natural resources. This law would also intensify military control. As GB is the only region under Pakistan's occupation that has a Shia and Ismaili majority, Islamabad has also undertaken a systematic campaign of altering the demography by opening up the region to outsiders. Now, fed up with increasing federal taxes and deliberate obstacles to local trade, GB traders—backed by a host of local political parties and religious groups—have sustained a resilient sit-in at Sost. This powerful show of solidarity and demand for justice compelled Chief Minister Haji Gulbar Khan and Governor Mehdi Shah to seek federal intervention, leading to the formation of a federal committee to make recommendations for the issue's resolution. The protestors' demands are simple: exemption from income, sales, and other federal taxes on commodities imported from China through the Khunjerab Pass—deemed illegal by traders considering GB's lack of constitutional status—and urgent customs clearance for 280 consignments stuck at Sost Dry Port under a one-time amnesty scheme. Ironically, while Gilgit-Baltistan is considered to be geographically very significant for the China-Pakistan Economic Corridor, Islamabad's treatment of local traders sends a clear message that it is least bothered about the interests of the local population and is only interested in exploiting the strategic position and resources of the region. All routes connecting Pakistan to China, including the critical Karakoram Highway, pass through GB, which should ideally have brought more economic opportunities for the local population. However, in contrast, it has resulted in increased Chinese military presence. This reinforces the fact that Pakistan follows the template of exploiting the region while keeping the people underdeveloped. If the locals dare to express their aspirations, they are handled brutally by the Pakistani military and its death squads. Therefore, the traders' blockade in GB represents more than an economic conflict—it is the roar of a voice silenced for decades from a region long suffering under the thumb of Islamabad's colonial and oppressive policies. The writer is an author and columnist. His X handle is @ArunAnandLive. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. Click here to add News18 as your preferred news source on Google. tags : China Kashmir pakistan view comments Location : New Delhi, India, India First Published: August 16, 2025, 22:02 IST News opinion Global Watch | Gilgit-Baltistan: A New Uprising In Pakistan's 'Last Colony' Against Oppressive Rule Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. 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