Latest news with #DaiichiLife
CNA
an hour ago
- Business
- CNA
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday (Jun 2), highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the US, uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. Japan and the US on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles.
Yahoo
2 hours ago
- Business
- Yahoo
Asia's factory activity shrinks in May as US tariffs bite
By Leika Kihara TOKYO (Reuters) -Asia's factory activity shrank in May as soft demand in China and the impact of U.S. tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as U.S. President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the U.S., uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from U.S. tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over U.S. trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the U.S. on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all U.S. tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed.
Reuters
2 hours ago
- Business
- Reuters
Asia's factory activity shrinks in May as US tariffs bite
TOKYO, June 2 (Reuters) - Asia's factory activity shrank in May as soft demand in China and the impact of U.S. tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as U.S. President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the U.S., uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, opens new tab, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from U.S. tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over U.S. trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the U.S. on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all U.S. tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed.
Daily Mail
2 days ago
- Business
- Daily Mail
Insurance group from Japan buys 15% slice of M&G
M&G has sold a 15 per cent stake to one of Japan's biggest life insurers in a partnership deal. Shares in the financial group rallied yesterday after it announced that Dai-ichi Life is now its largest shareholder in a long-term tie-up. The deal is expected to bring just below £4.5billion in business to M&G and about £1.5billion to Dai-ichi Life over the next five years. It is the latest example of a Japanese group teaming up with a UK firm after Tokyo-based Meiji Yasuda bought around 5 per cent of Legal & General in February. M&G shares hit their highest level since June 2021 following yesterday's announcement, but later gave up some of the gains. It still closed 5.5 per cent higher last night at 236.7p. The business has been regarded as a takeover target after speculation Australia's asset manager Macquarie was considering a £5billion bid in 2023. But M&G chief executive Andrea Rossi said that the partnership would bolster its position to compete as a standalone company. 'I can see us having a great independent future in front of us,' he said. Rossi described the partnership as a 'recognition of M&G's strengths and clear confidence in our leadership, strategy and long-term prospects'. 'It brings together two highly complementary international businesses with shared growth ambitions who aim to deliver excellent client service and sustainable shareholder returns.' The deal will allow the business to have 'even greater access to the Japanese and Asian market', Rossi added. M&G will become Dai-ichi Life's preferred asset management partner in Europe. Under the terms of the agreement, Dai-ichi Life will have the right to appoint a director to the board of M&G for as long as it holds at least a 15 per cent stake, M&G said. Russ Mould, at broker AJ Bell, said: 'The usually staid insurance sector burst into life as M&G's strategic partnership with Dai-ichi Life generated excitement. The deal is expected to generate significant business for the company over the next five years.' And Jefferies' analyst Philip Kett said: 'There appear to be no downsides to this partnership, and we expect it to be taken well by investors.' Earlier this month, Dai-ichi Life said it would raise its stake in UK-based Capula Investment Management to 15 per cent from just below 5 per cent. And in April it bought a 15.1 per cent stake in Australian investment manager Challenger for around £408m. Tetsuya Kikuta, president and chief executive of Dai-ichi Life, said: 'We see our partnership with M&G acting as a spearhead to develop our presence across Europe and the UK, accelerating our strategy to become a global top-tier insurance group.'
Japan Times
3 days ago
- Business
- Japan Times
Dai-ichi Life to buy $1.1 billion M&G stake in partnership
Dai-ichi Life Holdings and M&G have struck a distribution partnership that will see the Japanese firm take a roughly $1.1 billion stake in the U.K. money manager. Japan's largest listed life insurer plans to buy about a 15% stake via on-market purchases, according to a statement on Friday. The stake would make Dai-ichi Life the largest shareholder of M&G, according to data compiled by Bloomberg. Shares in M&G rose as much as 8.6% in early London trading, its biggest intraday gain since February 2023.
