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The Sun
01-08-2025
- Business
- The Sun
Markets rattle as tariffs hit tech stocks in Asia
SINGAPORE: U.S. President Donald Trump's Friday tariff deadline brought little reprieve for markets, with tech stocks in South Korea and Taiwan hit hard as investors fretted over the cost of disrupting global supply chains and the outcome of talks with China. For traders inured to Trump's repeated threats, his follow-through on blanket tariffs for dozens of nations may be a wake-up call, as the deadline to strike trade deals with the United States expired and new levies arrived in Asia right on cue. While the new export duties are below the 'Liberation Day' tariffs unveiled on April 2, they fuel uncertainty, as several countries are still in talks with the United States. Investors are also still on edge over whether the United States and China will be able to clinch a deal to avert a tariff of 55% tariff before their trade truce ends on August 12. 'There are no real winners here,' said Charu Chanana, chief investment strategist at Saxo in Singapore. 'The U.S. administration can claim a political win, having followed through on its threats, but economically the impact will be felt in higher prices, disrupted supply chains, and slower growth,' she said. 'Even countries that got away with 10% duties aren't celebrating.' The move is a reminder that a U.S. president who has consistently advocated protectionist policies for decades now has the power to force higher costs on companies across complex global supply chains that took just as long to build. That is unless foreign governments are prepared to accept deals that prioritise American interests. Stocks have rallied substantially from lows hit after the tariffs were first threatened, as Trump offered a temporary reprieve and countries such as Britain, Japan, and South Korea reached trade deals. The MSCI All Country World Index is up 28.4% from a bottom hit on April 7. But the gauge has now fallen for the past four consecutive sessions. The average tariff rate is going from about 2.5% to 15.3%, said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management. 'That's a step change,' he said. 'But if everyone's getting tariffed, it's more about that relative (level), because that affects how much you get, and perhaps relative to your competitors.' Underscoring investors' worry were comments by U.S. Treasury Secretary Scott Bessent to CNBC on Thursday that China's trade deal was 'not 100% done,' adding that he would talk to President Trump later the same day. 'Until the China deal comes out, you don't really know which country has a comparative advantage,' said Gary Tan, a portfolio manager at Allspring Global Investments in Singapore. 'There's limited ways to judge whether a tariff rate for these emerging Asia developing market economies is a good rate or a bad rate.' TECH SHOCK Stocks in Asia-Pacific's biggest tech hardware makers suffered the brunt of the selling, with South Korea's Kospi index dropping as much as 3.7% and Taiwan's benchmark index down as much as 1.6% before recovering. Trump hit Taiwan with a tariff of 20% on Friday, higher than the 15% the United States agreed with Japan and South Korea, though the government said it would continue to negotiate for a lower duty. Taiwan and South Korea are critical links in the supply chain of advanced logic chips and memory chips respectively. Taiwan Semiconductor Manufacturing Company shed 1.7%, as shares in its supplier Tokyo Electron plunged 18% after cutting its profit forecasts by a fifth. SK Hynix fell 5.5% amid a broader rout in South Korean stocks as the government said it would raise taxes on corporate income and stock investments. The declines also rattled currency markets, with the South Korean won weakening past 1,400 per dollar for the first time since May 19 and the Taiwan dollar weakening past 30 against the greenback for the first time since June 4. The sector shrugged off better-than-expected earnings from Apple and focused instead on a warning from CEO Tim Cook that U.S. tariffs would add $1.1 billion in costs over the period. Weaker-than-expected results from cloud-computing unit added to the gloom. But even after the tariff deadline, some market participants said they expected agreements to remain in flux. 'I expect that the rates will continue to be changed between now and maybe even up until next year,' said Jeff Ng, head of Asia macro strategy at SMBC in Singapore. 'Trump will continue to make some changes to the tariffs.' - Reuters
TimesLIVE
01-08-2025
- Business
- TimesLIVE
30% for SA: Investors react to Trump's new tariffs announcement
"No real winners in trade conflicts. Despite some countries securing better terms, the overall impact is negative. We're entering an era of higher barriers to trade which will have an impact and hurt growth." Prashant Bhayani, chief investment officer Asia, BNP Paribas Wealth Management, Singapore, said: "The average tariff rate roughly on reciprocal is going from about 2.5% to 15%. That's a steep change. However, if everyone's getting tariffed, it's more about the relative because that affects how much you get relative to your competitors. "It would be more disruptive if you are at a much higher rate than your competitors. In the short-term, there's trade diversion to another country you compete with. But at this point, we're not seeing it." Vasu Menon, MD Investment Strategy, OCBC, Singapore, said: "The latest announcements some degree of closure about Trump's country-based tariffs. However, uncertainty remains about additional sector-based tariffs for industries such as pharmaceutical and semiconductors. The impacts of Trump's tariffs are playing out and will take time to work their way through the US. and other economies. "Investors will keep a close eye on economic and earnings data in the coming months to assess the impact. This may not derail further upside for equity markets, but it means volatility will remain a fixture and the uncertainty about the tariff impact may cap the upside for equity markets for now and we could see some consolidation." Tony Sycamore, market analyst IG, Sydney, said: "At this point, the reaction in markets has been modest, and I think part of the reason for that is the recent trade deals with the EU, Japan and South Korea have certainly helped to cushion the impact, as has Mexico being granted a 90-day reprieve. Trump said trade talks with China are doing reasonably well there. "On top of all of that you have the Taco trade type situation whereby, after being obviously caught on the wrong foot in April, the market has probably taken the view the trade tariff levels can be renegotiated and can be walked lower over the course of time." Illiana Jain, economist Westpac, Sydney, said: "The first thing to note is that we're not completely sure if these are the final rates for countries, or if they're subject to negotiations. When you're talking about that muted reaction from markets it's probably kind of wait-and-see, is this real? Are there going to be more negotiations? "For the time being it looks like they will be in place. He did say a deadline of August 1, though I would be surprised if countries didn't work hard to kind of fight the rates." Charu Chanan, chief investment strategist, Saxo, Singapore, said: "The tariff announcement brings clarity in form but not in function. We have a list of countries and their respective rates, but the logic behind the numbers is far from transparent. The sweeping nature of the measures suggests this isn't a one-time fix but the beginning of a new global trade regime that favours unpredictability over structure. "There are no real winners. The US administration can claim a political win, having followed through on its threats, but economically the impact will be felt in higher prices, disrupted supply chains and slower growth. Even countries that got away with 10% duties aren't celebrating as they're dealing with a fractured trade landscape and the volatility in frameworks. "Defensive stocks or domestic-facing sectors might see some interest as capital rotates away from globally exposed companies, but this isn't a thematic opportunity, it's damage control." Jeff Ng, head of Asia macro strategy, SMBC, Singapore, said: "The tariffs have come in relatively within expectations. I was expecting 20% to 30% tariff rates on average, so it looks like it's close to the lower end of the range. "The dollar did strengthen over the past week or so and it looks like part of what has been priced into the trend. "I expect the rates will continue to be changed between now and maybe up until next year. Trump will continue to make some changes to the tariffs."
The Star
09-05-2025
- Business
- The Star
Investors looking beyond US scoop-up Asian funds
SINGAPORE/BENGALURU: Investors have been selling U.S. shares and piling into Asian equity funds, as the Trump administration's tariffs cast a cloud over the U.S. growth outlook and whether years of world-beating gains in U.S. markets may be drawing to an end. Net flows into exchange-traded equity funds that invest in Asia totalled $8.45 billion for the three weeks ended May 7, the highest in about seven months, LSEG Lipper data covering 844 funds listed globally showed. Meanwhile, U.S. equity funds logged a fourth straight week of outflows, totalling $43.5 billion to May 7, as President Donald Trump's trade policies have shaken investor confidence. "There is more awareness of the need for portfolio diversification and the overcrowding in the Magnificent 7 stocks, helping flows to non-U.S. markets including Asia," said Prashant Bhayani, chief investment officer at BNP Paribas Wealth Management. These outflows coincide with good performance and recent rises in currencies across Asia, suggesting a rush of money moving to the region and offering an added attraction for foreign buyers. Valuations and a belief that countries could either strike trade deals or end up beneficiaries from new routes opened up to avoid U.S. levies are also supporting sentiment. Gary Tan, a portfolio manager at Allspring Global Investments, has bought some stocks in ASEAN recently, which he thought were good value. "After the initial tariff shock in April, investors have been selectively investing in market-specific ETFs in countries where they anticipate positive outcomes from tariff negotiations," he said. MSCI's broadest index of Asia-Pacific shares outside Japan is up more than 4% for the year so far, while the S&P 500 and Nasdaq have clocked losses of close to 4% and 7%, respectively. The one-year forward price-to-earnings (PE) ratio for Malaysia's benchmark index, for instance, stands at 17.56, with Taiwan at 14.64 and the S&P 500 at 20.62. "We think the growing need for diversification away from U.S. assets, the dollar weakening towards its long-run fair value over time, coupled with cheaper valuations and lighter positioning, are supportive for Asian equities," said Sunil Koul, global emerging market equity strategist at Goldman Sachs. - Reuters
New Straits Times
09-05-2025
- Business
- New Straits Times
Investors looking beyond US scoop-up Asian funds
SINGAPORE/BENGALURU: Investors have been selling US shares and piling into Asian equity funds, as the Trump administration's tariffs cast a cloud over the US growth outlook and whether years of world-beating gains in US markets may be drawing to an end. Net flows into exchange-traded equity funds that invest in Asia totalled US$8.45 billion for the three weeks ended May 7, the highest in about seven months, LSEG Lipper data covering 844 funds listed globally showed. Meanwhile, US equity funds logged a fourth straight week of outflows, totalling US$43.5 billion to May 7, as President Donald Trump's trade policies have shaken investor confidence. "There is more awareness of the need for portfolio diversification and the overcrowding in the Magnificent 7 stocks, helping flows to non-US markets including Asia," said Prashant Bhayani, chief investment officer at BNP Paribas Wealth Management. These outflows coincide with good performance and recent rises in currencies across Asia, suggesting a rush of money moving to the region and offering an added attraction for foreign buyers. Valuations and a belief that countries could either strike trade deals or end up beneficiaries from new routes opened up to avoid US levies are also supporting sentiment. Gary Tan, a portfolio manager at Allspring Global Investments, has bought some stocks in ASEAN recently, which he thought were good value. "After the initial tariff shock in April, investors have been selectively investing in market-specific ETFs in countries where they anticipate positive outcomes from tariff negotiations," he said. MSCI's broadest index of Asia-Pacific shares outside Japan is up more than four per cent for the year so far, while the S&P 500 and Nasdaq have clocked losses of close to four per cent and seven per cent, respectively. The one-year forward price-to-earnings (PE) ratio for Malaysia's benchmark index, for instance, stands at 17.56, with Taiwan at 14.64 and the S&P 500 at 20.62. "We think the growing need for diversification away from US assets, the dollar weakening towards its long-run fair value over time, coupled with cheaper valuations and lighter positioning, are supportive for Asian equities," said Sunil Koul, global emerging market equity strategist at Goldman Sachs.
Forbes
15-04-2025
- Entertainment
- Forbes
Forbes Announces 10th Annual 30 Under 30 Europe List
Young Changemakers Highlighted On This Year's List Include Harris Dickinson, Lola Young and Cole Palmer Forbes 30 Under 30 Europe 2025 LONDON – April 15, 2025 – Forbes today unveiled its tenth annual 30 Under 30 Europe List, celebrating a decade of spotlighting the region's young industry disruptors, innovators and changemakers. This year's milestone edition includes visionaries who are redefining industries ranging from tech and retail to entertainment and sports, shaping the future of Europe and the world. Notable listmakers from this year's U30 package include: 'As we celebrate the tenth edition of Forbes 30 Under 30 Europe, Forbes recognizes the incredible achievements of young innovators shaping the future of this region and beyond, especially during a time of rapid cultural and technological change,' said Alexandra York, associate editor. 'This year's honorees are breaking boundaries and tackling new challenges with innovation, resilience and bold ideas. This milestone edition highlights both the incredible talent of today, but the leaders and changemakers of tomorrow.' The average age of list makers this year is 27, with the youngest, actress Frankie Corio (star of Aftersun), aged just 14. Over 60% are founders or co-founders of companies and many of the other honorees are actors, musicians, creators, or athletes building their own brands. Collectively, members of this year's list have raised over $800 million in funding. The 2025 honorees hail from over 20 countries, ranging from Germany to Denmark, while the most popular cities that list makers call home are London, Berlin and Paris. The ten categories included on this year's list are Social Impact, Entertainment, Retail & Ecommerce, Sports & Games, Science & Healthcare, Media & Marketing, Art & Culture, Manufacturing & Industry, Technology and Finance. The 30 Under 30 Europe Class of 2025 will join Forbes' global Under 30 community, a network of over 10,000 influential innovators worldwide, including more than 3,000 in Europe. These individuals, who have been featured on previous lists, are using their sharp entrepreneurship skills and distinct passions to drive positive change and leave a lasting impact on society and the world. The 30 Under 30 Europe list makers will be celebrated at an exclusive invitation-only event, in partnership with BNP Paribas Wealth Management, taking place in Paris on May 14. Methodology As part of the compilation of the 10th Forbes 30 Under 30 Europe list, each listee goes through an in-depth evaluation process with Forbes writers and editors scrutinizing thousands of submissions with recommendations from industry experts and list alumni. Candidates were evaluated by Forbes staff and a panel of independent, expert judges (including musician Sam Smith and Lithuanian unicorn Vinted CEO Thomas Plantenga) on a variety of factors, including (but not limited to) funding, revenue, social impact, scale, inventiveness and potential. For the complete Under 30 Europe list and feature stories, visit: To join the conversation on social, follow #ForbesUnder30 About Forbes Forbes champions success by celebrating those who have made it, and those who aspire to make it. Forbes convenes and curates the most influential leaders and entrepreneurs who are driving change, transforming business and making a significant impact on the world. The Forbes brand today reaches more than 140 million people worldwide through its trusted journalism, signature LIVE and Forbes Virtual events, custom marketing programs and 43 licensed local editions in 69 countries. Forbes Media's brand extensions include real estate, education and financial services license agreements. Forbes Media Contacts Christina Vega Magrini: cmagrini@ Feryal Nawaz: fnawaz@ Europe Media Contacts Charlotte Juckes: +44 (0) 7500016834 Johanna Pemberton: +44 (0) 7956027059
