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Japan Today
a day ago
- Business
- Japan Today
China's exports climb 4.8% in May as shipments to U.S. fall nearly 10%
Policemen stand watch while cranes load containers onto trucks at the Yangluo Port in Wuhan, central China's Hubei Province, Friday, May 23, 2025. (AP Photo/Andy Wong) By ELAINE KURTENBACH China's exports rose 4.8% in May from a year earlier, a bit lower than expected, as shipments to the United States fell nearly 10%, according to data released Monday just hours ahead of another round of trade talks between the U.S. and China. Imports declined 3.4% year-on-year, leaving a trade surplus of $103.2 billion. China exported $28.8 billion to the United States in May, while its imports from the U.S. fell 7.4% to $10.8 billion, the report said. Still, exports to Southeast Asia and the European Union remained robust, growing 14.8% and 12%, year-on-year. 'The acceleration of exports to other economies has helped China's exports remain relatively buoyant in the face of the trade war,' Lynne Song of ING Economics said in a commentary. Still, trade slowed in May from an 8.1% jump in China's global exports in April. Many businesses had rushed orders to try to beat higher tariffs, even as some new import duties took effect or remained in place. Exports will likely rebound somewhat in June thanks to a 90-day suspension of most of the tariffs China and the U.S. imposed on each other in their escalating trade war. 'But with tariffs likely to remain elevated and Chinese manufacturers facing broader constraints on their ability to sustain rapid gains in global market share, we think export growth will slow further by year-end,' Zichun Huang of Capital Economics said in a report. Despite the tariffs truce, the rancor between Beijing and Washington has persisted, with angry exchanges over advanced semiconductors, 'rare earths' that are vital to many industries and visas for Chinese students at American universities. The next round of negotiations was due to take place later Monday in London, following a phone call last week between Trump and Chinese leader Xi Jinping. Other data released Monday highlight the pressure on the world's second largest economy from slowing exports, since China imports many of the components and materials needed for the goods it assembles for the world. But at the same time, China's own domestic markets are suffering. The government reported that consumer prices fell 0.1% in May, evidence of sluggish demand. The persisting deflation partly reflects lower food prices, economists said. Producer price deflation was worse, contracting 3.3% in May, its lowest level in almost two years, after falling 2.7% in April. AP researcher Yu Bing in Beijing contributed to this report. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
21-05-2025
- Business
- Japan Today
Asian shares climb and oil prices gain after a report Israel may attack Iran's nuclear facilities
Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, May 21, 2025. (AP Photo/Ahn Young-joon) By ELAINE KURTENBACH Shares rose in Asia on Wednesday while oil prices jumped more than 1% following a report that Israel may be planning an attack on Iranian nuclear facilities. U.S. futures were lower. A CNN report cited unnamed intelligence officials saying Israel may be preparing for an attack on Iranian nuclear facilities. Oil prices tend to rise with conflicts that might disrupt oil supplies, and they jumped early Wednesday but lost some of those gains by midday. U.S. benchmark crude oil gained 79 cents to $62.82 per barrel while Brent crude, the international standard, rose 77 cents to $66.15 per barrel. In talks on the nuclear issue, Iranian officials have warned they could pursue a nuclear weapon with their stockpile of uranium enriched to near weapons-grade levels. U.S. President Donald Trump has repeatedly threatened to unleash airstrikes targeting Iran's program if a deal isn't reached. In share trading, Tokyo's benchmark Nikkei 225 fell 0.6% to 37,313.62. Gains have been limited by the continued worries over higher tariffs Trump has imposed on many U.S. trading partners since taking office. Earlier this week, Japanese officials said they were insisting all of his higher tariffs on imports from Japan be removed as part of talks with Washington. Japan's exports have slowed due to the tariffs, the government reported Wednesday. Exports to the U.S., Japan's largest single trading partner, fell almost 2% year-on-year in April and the annual rate of growth in its global exports slowed to 2% from 4% in March, preliminary customs data showed. In a step that further weakened Prime Minister Shigeru Ishiba's faltering administration, the agriculture minister, Taku Eto, resigned after an outcry over comments he made about not having to buy rice, but getting it for free, at a time when shortfalls in supply have pushed prices of the staple grain sharply higher. In Hong Kong, the Hang Seng picked up 0.4% to 23,785.58, while the Shanghai Composite index edged 0.2% higher to 3,387.00. Australia's S&P/ASX 200 surged 0.5% to 8,386.00, while the Kospi in South Korea climbed 0.9%, to 2,625.80. Taiwan's Taiex advanced 1.3% and India's Sensex gained 0.7%. The future for the S&P 500 was down 0.5% early Wednesday, while that for the Dow Jones Industrial Average lost 0.4%. On Tuesday, the S&P 500 lost 0.4% for its first drop in seven days. The Dow fell 0.3% and the Nasdaq composite fell 0.4%. Treasury yields and the value of the U.S. dollar held relatively stable following a brief jolt Monday morning after Moody's Ratings said the U.S. government no longer deserves a top-tier credit rating because of worries about its spiraling debt. U.S. government debt could be set to get even bigger with Washington debating more cuts to taxes. Stocks of companies in the travel industry led the way lower on doubts about how much U.S. households will be able to spend on summer vacations. Airbnb dropped 3.3%, Norwegian Cruise Line fell 3.9% and United Airlines lost 2.9%. Viking Holdings fell 5% even though the company, which offers river cruises and other trips, reported stronger results than analysts expected for the latest quarter. Home Depot slipped 0.6% after reporting a profit for the start of the year that came up just short of analysts' expectations, though its revenue topped forecasts. The home-improvement retailer also said it's sticking with its forecasts for profit and sales growth over the full year. That's counter to a growing number of companies, which have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring. Trump has delayed or rolled many of the stiff tariffs he has imposed as he tries to compel companies to move manufacturing to the United States. Investors are hopeful that Trump will eventually lower his tariffs after reaching trade deals with other countries, but that's not a certainty. On the winning side of Wall Street was D-Wave Quantum, which jumped 25.9% after releasing its latest quantum computing system. The company says it can solve complex problems beyond the reach of classical computers. Target and Home Depot rival Lowe's will report their latest results on Wednesday. In the bond market, the yield on the 10-year Treasury edged up to 4.47% from 4.46% late Monday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, edged down to 3.96% from 3.97%. In currency dealings, the U.S. dollar fell to 143.63 Japanese yen from 144.51 yen. The euro rose to $1.1344 from $1.1284. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
09-05-2025
- Business
- Japan Today
China's exports rise higher than expected 8% in April
A container ship sails off a port in Qingdao in east China's Shandong province on Wednesday, May 7, 2025. (Chinatopix Via AP) By ELAINE KURTENBACH China's exports rose 8.1% in April from the year before, the government said Friday, faster than economists were expecting, though exports to the United States sank more than 20%. Economists had forecast that China's global exports would grow about 2% in April, down from a whopping 12.4% year-on-year increase in March. Imports fell 0.2% in April from the year before. The data were released a day before U.S. Treasury Secretary Scott Bessent and other top U.S. officials were due to meet with Beijing's lead trade envoy, He Lifeng. The plans for talks in Geneva, Switzerland, could bring a shift in the stalemate over President Donald Trump's hikes in tariffs on Chinese good to as much as 145%. But the world's two biggest economies are at odds over a raft of issues, including colliding strategic interests that will likely impede progress in the talks. Some of the punitive tariffs, including Beijing's retaliatory 125% tariffs on U.S. exports, could be rolled back, but a full reversal is unlikely, Zichun Huang of Capital Economics said in a report. 'This means China's exports to the U.S. are set for further declines over the coming months, not all of which will be offset by increased trade with other countries. We still expect export growth to turn negative later this year,' Huang said. China's politically sensitive trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China's exports to the United States fell 2.5% from a year earlier, while imports from the U.S. fell 4.7%. Preliminary data also show that U.S. imports from other countries not subject to U.S. President Donald Trump's 145% tariff on Chinese products have been rising quickly. Exports to the United States form just a part of China's trade, and exports to the rest of the world have helped offset that weakness. Exports to Southeast Asian countries were up 11.5% from a year earlier in the first four months of this year. Exports to Latin America also climbed 11.5%. Shipments to India jumped nearly 16% by value, and exports to Africa surged 15%. Some of the fastest growth was in Asia, reflecting moves by Chinese and other manufacturers to diversify their supply chains outside of the Chinese mainland. Exports to Vietnam jumped 18% year-on-year, while exports to Thailand were up 20%. Measured on a monthly basis, China's total exports rose just 0.6% in April, while imports increased by nearly 4% from March. Associated Press researcher Yu Bing in Beijing contributed. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
06-05-2025
- Business
- Japan Today
Asian shares mixed after Wall St breaks its winning streak
FILE - The New York Stock Exchange is seen in New York, Wednesday, Jan. 29, 2025. (AP Photo/Seth Wenig, File) By ELAINE KURTENBACH Shares were mixed Tuesday in Asia after benchmarks fell on Wall Street, snapping a nine-day winning streak. Oil prices bounced back part-way from a 4-year low and U.S. stock futures slipped. A monthly survey measuring future activity in China's services sector fell to its lowest level ever, excluding the pandemic, in a further sign the escalation of U.S. President Donald Trump's trade war is hitting the world's second-largest economy. A drastic increase in tariffs on U.S. imports of Chinese products, to 145%, has caused a sharp drop in shipping and other logistics. 'Overall optimism among Chinese firms weakened to the lowest level since this series began in April 2012, resulting in further job cuts in April,' said the report by Caixin, a financial media group. Still, Chinese markets advanced after reopening from 'Golden Week' holidays. The Shanghai Composite index added 1% to 3,311.89, while the Hang Seng in Hong Kong was up 0.7% at 22,651.65. Taiwan's Taiex slipped less than 0.1% In Australia, the S&P/ASX 200 lost 0.2% to 8,148.40. U.S. benchmark crude oil picked up 93 cents to $58.08 per barrel, while Brent crude, the international standard, surged $1 to $61.23 per barrel. The OPEC+ group of eight oil producing nations announced over the weekend that it will raise its output by 411,000 barrels per day as of June 1. The expected increase caused U.S. crude prices to dip as much as 4% on Monday. Many producers can no longer turn a profit once oil falls below $60. Prices are down sharply for the year over worries about an economic slowdown. The S&P 500 fell 0.6% to 5,650.38, ending its longest winning streak since 2004. The Dow Jones Industrial Average declined 0.2% and the Nasdaq composite shed 0.7%. Technology companies and other big stocks were among the heaviest weights on the market. Apple slumped 3.1%, while Amazon fell 1.9% and Tesla slipped 2.4%. Berkshire Hathaway fell 5.1% after legendary investor Warren Buffett announced he would step down as its CEO by the end of the year after six decades at the helm. Buffett will still be its board chairman. Markets have been absorbing the shock of tariffs and the growing trade war. A three-month delay in many of the severest tariffs that were supposed to take effect in April, excluding China, has provided some relief to Wall Street, but uncertainty about the impact from current and future tariffs remains. Concerns about inflation reigniting also have deepened. Such issues will overshadow the Federal Reserve's meeting on Wednesday, when it is expected to hold its benchmark interest rate steady. The Fed cut the rate three times in 2024 before taking a breather to watch what happens with inflation, which has been hovering just above the Fed's target rate of 2%. While still resilient, the U.S. economy has shown some signs of strain from tariffs and the lack of clarity about how Trump's policies will evolve. The U.S. economy shrank 0.3% in the first quarter, the first drop in three years. Ford Motor Co. said Monday it expects to take a $1.5 billion hit to its operating profit from tariffs this year. Its shares fell 2.5% in after hours trading. Tariffs have been imposed, only to be pulled or delayed, sometimes on a daily basis. The on-again-off-again approach has left businesses, households and economists at a loss in trying to forecast where the economy might be headed and planning accordingly. The latest salvo in the trade war from Trump came Sunday night in a post on his Truth Social platform. He said he has authorized a 100% tariff on movies that are produced outside of the U.S. The impact is unclear, as it is common for films to include production at multiple locations around the world. Netflix slumped 1.9% and Warner Bros. Discovery fell 2%. Shoemakers posted gains following the announcement that Skechers is being acquired for $9 billion and taken private by the investment firm by 3G Capital. Skechers jumped 24.3%. Also early Tuesday, the yield on the 10-year Treasury rose to 4.37% from 4.35% late Monday. The dollar rose to 143.86 Japanese yen from 143.70 yen. The euro was at $1.1322, up from $1.1317. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
25-04-2025
- Automotive
- Japan Today
Automakers focus on global market; chide U.S. over tariffs at Shanghai's auto show
Visitors look at a bare-bones version of Tesla's Cybertruck with devices from AOD Technology, which makes domain control units that process various commands such as opening doors and controlling running boards on SUVs, displayed at the Shanghai auto show on Thursday, April 24, 2025. (AP Photo/Ng Han Guan) By ELAINE KURTENBACH Booths of big Chinese, German and Japanese automakers were bustling at Shanghai's auto show this week as the industry kept its focus on a wider global market not subject to steep U.S. tariffs on imports of cars and auto parts. Signs are that U.S. President Donald Trump's 25% tariffs on auto imports is causing companies to recalibrate their strategies, and in some cases find new opportunities. 'When governments up above are at odds, it's going to impact the businesses down below,' Ma Lihua, general manager at Soling, a Chinese maker of domain control units and other electronics used in such things as rearview camera displays. Soling, headquartered in Shanghai, counts Ford Motor Co, Toyota Motor Corp and many other top tier global and Chinese automakers among its customers. It's also setting up a manufacturing base in Vietnam, whose local EV maker VinFast has ambitions to become Southeast Asia's leading automaker. Many of the dozens of auto parts and components companies exhibiting at the Shanghai auto show have operations spanning both the Chinese and world markets. Metal components maker Gestamp, a supplier of chassis, battery boxes and other key auto parts, has suffered from a slowdown in the U.S. and western European markets but is expanding in Asia, Latin America and Eastern Europe. The tariffs are now an added complication, as automakers watch to see what comes. 'In the past, supply chains usually would run like Swiss clockwork, but now it's the opposite,' said Ernesto Barcelo, chief ESG officer for metal components maker Gestamp, said of the uncertainty now dominating the market. "The lack of stability now, it's something very ... fluffy," Barcelo said. A fundamental criteria for investing in any market is political stability, Wei Jianjun, chairman of Great Wall Motor Co, told reporters when asked about his company's plans to expand manufacturing overseas. That applies to countries like Hungary, where the company has not yet decided on whether to build a factory, he said, but also to the United States under Trump. 'If a country is not politically stable, it's very risky,' said Wei, who also goes by the name Jack Wey. With U.S. tariffs so high, Great Wall can focus elsewhere, such as on trade between China and Europe, which is bound to grow, he said. He didn't address the issue of the tariffs of up 45.3% that the EU has imposed on electric vehicles made in China. Tianshu Xin, CEO of Leapmotor International, a joint venture of Stellantis and China's Leapmotor, said the U.S. market wasn't its first focus. Now, 'we want to monitor the regulatory environment, and also customer preferences are slightly different compared with other markets," Xin said. Japan's Nissan plans to launch 10 new EVs in China by 2027, nine of them its own brand, and to spend an extra $1.4 billion by the end of 2026 on its expansion there. In the U.S. it has the option to ramp up its spare capacity to make up for reduced imports due to the tariffs. 'Some doors have been shut, but others have been opened,' Ma said. 'But any plan you make you will change it very quickly. The market changes very quickly.' Apart from higher tariffs, automakers and suppliers also must contend with national security restrictions that are an increasingly important factor in auto electronics. Wuhan Kotei Informatics, which provides software for autonomous driving, adapted its business model to cope with sanctions. Now the company based in central China's Wuhan acts as a consultant and allows foreign customers to adapt software to local requirements, said Ye Xiongfei, general manager for the company's autonomous driving division. 'It's like I teach you how to walk if you don't know how to walk, and I will help you walk if you aren't able to walk,' Ye said. Some restrictions on technology are understandable, but too many 'will hurt the innovation of the U.S. itself, hindering the speed of the development of their supply chains if it tries to only use local companies,' he said. Some attending the show said they believe that ultimately Trump will end up softening his stance. 'Trump is a businessman and he hopes to boost the U.S. economy by imposing tariffs on other countries, but I do believe those measures are temporary,' said Yang Jingdi, assistant to the CEO of LvXiang Automobile Parts Co., which makes electronics including rearview mirrors and pumps. 'We'll wait and see,' he said. 'China has full and abundant supply chains and it is the U.S. that won't hold on if the tariff measures from both sides remain unchanged.' AOD Technology, which makes domain control units that process various commands such as opening doors and controlling running boards on SUVs, was displaying a bare-bones version of Tesla's Cybertruck equipped with its devices — evidence of its ambition to eventually sell to the EV maker. It might not be the best time to be planning on selling such components to a U.S. automaker for production in America, Claire Deng, a senior sales manager, conceded. But she said AOD, based in south China's Zhongshan, had bought the Cybertruck as part of a process that can take years, developing what's needed to become a supplier. 'Who knows what will happen,' she said. 'We want to be ready.' Associated Press researcher Yu Bing contributed. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
