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International Business Times
a day ago
- Business
- International Business Times
Asian Markets React to U.S. Tariff Shifts, Japan Debt Concerns and Strong Yen Pressure Stocks
Markets in Asia finished the week cautiously as investors awaited critical United States inflation figures and a continuing air of uncertainty over American trade tariffs. Korea's KOSPI last week recorded its biggest monthly rise since November 2023, and Hong Kong's Hang Seng also made strong gains. But investors were feeling less optimistic this week in light of the renewed attention to tariffs, economic indicators, and bond yields. World markets were rattled when an American court halted most of President Donald Trump's tariffs. A few days later, a federal appeals court temporarily restored them. This pendulum has raised concerns throughout Asia, particularly in export-weighted nations like Japan and China. The sense is that U.S. policies are influencing sentiment as investors recalibrate expectations for trade and inflation. Japan's Nikkei closed down after having gained almost 2% the day before as profit-taking set in. Japan's escalating debt fears and a poor reaction to a 40-year bond auction also spooked traders. Such longer-term debt concerns weighed on financial stocks and public sentiment. After opening higher, the Nikkei gave up some solid gains as investors re-evaluated risks. The Japanese yen made a sharp recovery, gaining as much as 2 percent from its low on Thursday. During Friday's European trading hours, it was trading below 144 yen to the dollar. The move is indicative of investor wariness, as well as the general flight from riskier assets around the world. The euro and the British pound also fell slightly against the dollar, to $1.13 and $1.34. China's blue-chip CSI300 index was down 0.5%, and Hong Kong's Hang Seng fell 1.2%, primarily on the back of declines in Apple suppliers hit by tariff fears. But both indexes were still on track for monthly gains. All in all, emerging Asian markets fared well, in line with a 5% jump in MSCI's global index last month. Investors now await U.S. Personal Consumption Expenditures (PCE) data, which is the Federal Reserve's favorite inflation metric. This release has the potential to help determine whether the Fed raises or lowers interest rates later this year. In early trading in Europe, U.S. Treasury yields rose further. The dollar rose 0.3% and was on track for its first monthly gain of 2025 with gains of less than 0.05%. Adding to market jitter, a clause in Trump's budget proposal included a provision that would give the U.S. the right to levy a 20% tax on overseas investments. And while it's not something receiving much press, there are some close watches on this idea. Analysts caution that it is likely to lessen international capital flow and risk nudging the economy toward stagflation, where high inflation collides with low growth. Among commodities, oil was on track for a second weekly decline but was still up for the month. This is because the market braces for higher OPEC+ output and recent demand concerns. Gold prices, meanwhile, continued to surge, helping currencies like Ghana's cedi, which soared nearly 40% in May. Despite the tariff drama, the U.S. government confirmed ongoing trade talks. Treasury Secretary Scott Bessent said he would meet with a Japanese delegation in Washington, though negotiations with China were "a bit stalled."
Korea Herald
a day ago
- Business
- Korea Herald
Seoul shares fall nearly 1% on profit taking, US tariff uncertainty
South Korean stocks finished lower Friday, as investors moved to lock in profits from recent sharp gains amid legal uncertainties surrounding the United States' tariff policies. The local currency fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 22.97 points, or 0.84 percent, to close at 2,697.67, ending a two-day winning streak. Trade volume was heavy at 513.39 million shares worth 14.08 trillion won ($10.21 billion), with losers beating winners 487 to 394. Institutions and foreign investors sold a net 16.49 billion won and 608.1 billion won worth of stocks, respectively, while individuals bought 602.02 billion won worth of shares. The market opened a tad lower, one day after the index surged to a 10-month high on marked gains of tech shares, and extended losses further as investors assessed the developments of legal battles in the US surrounding US President Donald Trump's sweeping tariff scheme. On Thursday (US time), a US federal appeals court temporarily reinstated the tariff policy, just one day after a trade court had blocked them. "It may take about a year until the appellate ruling and the final decision by the U.S. Supreme Court. Apart from legal issues, the Trump government has various other means to impose tariffs," Han Ji-young, a researcher at Kiwoom Securities, said. The key stock index rose 4.01 percent from a week ago. Top-cap shares traded mixed. Market bellwether Samsung Electronics edged up 0.18 percent to 56,200 won, and its rival SK hynix sank 3.54 percent to 204,500 won. Major battery maker LG Energy Solution lost 0.69 percent to 286,000 won, and No. 1 steelmaker Posco Holdings lost 1.77 percent to 250,000 won. Defense giant Hanwha Aerospace dipped 5.37 percent to 811,000 won, while leading financial firm KB Financial advanced 1.56 percent to 104,300 won. Carmakers fell. Top carmaker Hyundai Motor declined 2.98 percent to 185,300 won, and its sister Kia Motors nosedived 4.08 percent to 89,400 won. But bio shares gathered ground. Leading biotech firm Samsung Biologics rose 0.58 percent to 1.03 million won, and Celltrion jumped 1.45 percent to 161,000 won. The local currency was quoted at 1,380.1 won against the greenback at 3:30 p.m., down 4.2 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.6 basis point to 2.347 percent, and the return on the benchmark five-year government bonds climbed 2.1 basis points to 2.521 percent.
Daily Maverick
2 days ago
- Business
- Daily Maverick
Stocks slip, dollar sags as Trump tariffs remain after latest courtroom twist
A screen reflecting on glass displays the Hang Seng stock index at the Central district in Hong Kong, China, April 7, 2025. REUTERS/Tyrone Siu/File Photo Japan's Nikkei underperforms as yen strengthens on safe-haven demand Appeals court reinstates duties a day after trade court halted them Analysts say court drama mostly just adds to market uncertainty By Kevin Buckland – Japan's Nikkei saw the most pronounced selling, after experiencing the most pronounced buying on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen. The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. On Wednesday, a little-known trade court had unanimously ruled Trump overstepped his authority, and tariffs were the jurisdiction of Congress not the president. Either way, senior Trump administration officials said they were undeterred and expected either to prevail on appeal or to employ other powers to ensure the tariffs remain. The Nikkei dropped 1.7% in the Asian morning, putting it basically back at Wednesday's closing level. The yen strengthened about 2% from its low on Thursday to last change hands at around 143.48 per dollar. A stronger yen reduces the value of overseas revenues. Hong Kong's Hang Seng sank 1.4% and mainland China's blue chip index eased 0.3% in early trading. South Korea's KOSPI fell 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.4%. 'Trump's trade agenda remains alive and kicking, with the legal battle adding yet another layer of uncertainty,' said Rodrigo Catril, senior FX strategist at National Australia Bank. 'The only thing that looks more certain is more uncertainty,' which will lead to additional delays in investment decisions and hiring, he said. US S&P 500 futures retreated 0.2%. The cash index rose 0.4% overnight, but that was largely the effect of resilient Nvidia from after the market close on Wednesday, to which Asian shares already had a chance to react. Pan-European STOXX 50 futures edged 0.1% lower. The 10-year US Treasury yield was steady at 4.42% on Friday, following a 5.5 basis point slide on Thursday. Safe-haven gold was little changed at $3,311 per ounce, following a 0.8% advance in the previous session. Risk-sensitive bitcoin slipped to a 10-day low of $104,714.35. Both Brent and US West Texas Intermediate crude eased 0.3% early on Friday, to $63.97 and $60.75 per barrel, respectively. Despite the uncertainty injected by the courtroom drama, the Trump administration said negotiations with top trading partners continue unabated. Treasury Secretary Scott Bessent noted during an interview with Fox News that he is scheduled to have talks with a high-level Japanese delegation later on Friday in Washington. Trump had already paused his 'Liberation Day' tariff rates on most trade partners for 90 days to July 9 and set a baseline rate of 10% in the meantime in order to give time for some of them to hammer out deals. So far though, apart from a broad agreement with Britain, deals remain elusive. Bessent said in the interview with Fox News that talks with China are 'a bit stalled,' and may need the direct involvement of Trump and Chinese President Xi Jinping to get across the finish line. (Reporting by Kevin Buckland; Editing by Jamie Freed)
Business Recorder
2 days ago
- Business
- Business Recorder
Upward momentum persists, KSE-100 gains nearly 300 points in early trade
Buying rally continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 300 points during the opening hours of trading on Friday. At 10am, the benchmark index was hovering at 119,259.25, an increase of 287.85 points or 0.24%. Positive momentum was observed in key sectors, including cement, chemicals, commercial banks, fertilisers, oil and gas exploration companies, OMCs, and power generation. Index-heavy stocks including HUBCO, NRL, PRL, PSO, MARI, OGDC, PPL, HBL, NBP, MCB and UBL traded in the green. On Thursday, the Pakistan Stock Exchange (PSX) closed in the green zone, as investors remained strong due to various domestic and international reasons. The benchmark KSE-100 Index gained 638.50 points or 0.54% to settle at 118,971.40 points. Internationally, stocks slipped in Asia on Friday, and the US dollar dropped with Treasury yields as investors digested an appeals court's decision to keep President Donald Trump's tariffs in effect, a day after markets rallied on a separate ruling blocking most of them. Japan's Nikkei saw the most pronounced selling, after experiencing the most pronounced buying on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen. Asian shares, US dollar climb on rosy data, tech optimism The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. The Nikkei dropped 1.7% in the Asian morning, putting it basically back at Wednesday's closing level. The yen strengthened about 2% from its low on Thursday to last change hands at around 143.48 per US dollar. A stronger yen reduces the value of overseas revenues. Hong Kong's Hang Seng sank 1.4% and mainland China's blue chip index eased 0.3% in early trading. South Korea's KOSPI fell 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.4%. This is an intra-day update
West Australian
2 days ago
- Business
- West Australian
Asia stocks fall as US tariffs remain after court twist
Asian stocks have slipped and the US dollar sagged with Treasury yields as investors digested an appeals court keeping President Donald Trump's tariffs in effect, a day after markets rallied on a separate ruling blocking most of them. Japan's Nikkei saw the most pronounced selling on Friday, after experiencing the most pronounced buying on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen. The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. On Wednesday, a little-known trade court had unanimously ruled Trump overstepped his authority, and tariffs were the jurisdiction of Congress not the president. Either way, senior Trump administration officials said they were undeterred and expected either to prevail on appeal or to employ other powers to ensure the tariffs remain. The Nikkei dropped 1.7 per cent in the Asian morning, putting it basically back at Wednesday's closing level. The yen strengthened about two per cent from its low on Thursday to last change hands at around 143.48 per dollar. A stronger yen reduces the value of overseas revenues. Hong Kong's Hang Seng sank 1.4 per cent and mainland China's blue chip index eased 0.3 per cent in early trading. South Korea's KOSPI fell 0.5 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.4 per cent. "Trump's trade agenda remains alive and kicking, with the legal battle adding yet another layer of uncertainty," said Rodrigo Catril, senior FX strategist at National Australia Bank. "The only thing that looks more certain is more uncertainty," which will lead to additional delays in investment decisions and hiring, he said. US S&P 500 futures retreated 0.2 per cent. The cash index rose 0.4 per cent overnight, but that was largely the effect of resilient Nvidia financial results from after the market close on Wednesday, to which Asian shares already had a chance to react. Pan-European STOXX 50 futures edged 0.1 per cent lower. The 10-year US Treasury yield was steady at 4.42 per cent on Friday, following a 5.5 basis point slide on Thursday. Safe-haven gold was little changed at $US3,311 per ounce, following a 0.8 per cent advance in the previous session. Risk-sensitive bitcoin slipped to a 10-day low of $US104,714.35. Both Brent and US West Texas Intermediate crude eased 0.3 per cent early on Friday, to $US63.97 and $US60.75 per barrel, respectively. Despite the uncertainty injected by the courtroom drama, the Trump administration said negotiations with top trading partners continue unabated. Treasury Secretary Scott Bessent noted during an interview with Fox News that he is scheduled to have talks with a high-level Japanese delegation later on Friday in Washington. Trump had already paused his Liberation Day tariff rates on most trade partners for 90 days to July 9 and set a baseline rate of 10 per cent in the meantime in order to give time for some of them to hammer out deals. So far though, apart from a broad agreement with Britain, deals remain elusive. Bessent said in the interview with Fox News that talks with China are "a bit stalled," and may need the direct involvement of Trump and Chinese President Xi Jinping to get across the finish line.
