Latest news with #NickTwidale
Japan Times
03-04-2025
- Automotive
- Japan Times
Japan's stocks slump on Trump's 24% tariffs and stronger yen
Japan's stocks plunged after U.S. President Donald Trump slapped the nation with a 24% levy as part of tariffs on trading partners worldwide. A stronger yen also dragged exporter shares lower. The Topix Index fell 4% to 2,544.41 as of 9:12 a.m. Tokyo time, while the blue-chip Nikkei declined 4.1% to 34,281.76. Contracts traded in Singapore initially spiked, then fell as details of the tariffs rolled out, suggesting the market will face volatility Thursday as investors digest the news. "Overall I think this was on the harder side of expectations,' said Nick Twidale, chief analyst at AT Global Markets in Sydney. "Japan and most of Asia took a hit — I think stocks will take a battering in Asia today, alongside most currencies, although the yen is a different story and may appreciate on its haven status.' Trump also reiterated 25% tariff on autos, which may weigh on carmakers that are already under-performing the broader Topix index this year. The yen extended gains to strengthen 0.8% versus the dollar, while U.S. equity futures sank amid concern the escalating trade war will harm the nation's economy. Exporting companies such as electric appliances and the transportation sector were one of the leading losses on the Topix index. Japan's benchmark Topix is down more than 8% this year as jitters over tariff concerns damped investor sentiment. The exporter- and tech-heavy Nikkei 225 has been hit harder, tumbling more than 15% from its December peak to enter a correction.
12-02-2025
- Business
Dollar bulls take a breather ahead of US CPI
The dollar stepped back from a tariff-driven rally on Wednesday, as traders awaited U.S. inflation data and news on the broader trade front, though hawkish remarks from Fed Chair Jerome Powell pushed up U.S. yields and lent some support against the yen. In Asia, the dollar rose 0.7% to 153.56 yen, breaking above its 200-day moving average, but elsewhere it was nursing modest losses and traded at $1.0358 per euro. Federal Reserve Chair Jerome Powell, in testimony on Capitol Hill, stuck to a view there was no hurry to lower interest rates, which pushed 10-year Treasury yields up about 4 basis points. "The yen is always quite sensitive to dollar yields," said Nick Twidale, chief market analyst at ATFX Global in Sydney, noting that a break of the 200-day moving average may have exaggerated the yen's dip, in thin trade before U.S. CPI data. U.S. CPI is published at 1330 GMT and economists polled by Reuters expect core consumer inflation to increase slightly to 0.3% for January. Speculators in the currency market are long dollars and some may be nervous that a softer reading could stoke bets on rate cuts and force an unwind of wagers on a higher dollar. Data last week showed net U.S. dollar long positions against other G10 currencies stood around $31.5 billion. Sterling, which rose about 0.7% on Tuesday, hovered at $1.2441 in Asia session. The Australian dollar held a more modest gain at $0.6291. The European Union, Mexico and Canada have condemned U.S. President Donald Trump's decision to impose 25% tariffs on steel and aluminium imports and the European Commission head Ursula von der Leyen said there would be counter-measures. Investors have assumed U.S. tariffs would be positive for the dollar, by reshaping trade flows and encouraging other countries to weaken their currencies to offset the taxes. However, analysts say inflation implications are less clear cut and that it is hard to say where the chips will fall as tariffs and retaliatory actions take effect - leaving investors bullish on the dollar inclined to trim their positions a bit. "I don't see any strong catalyst," said Imre Speizer, currency strategist at Westpac in Auckland. The tariff-hit Canadian dollar was firm and near its strongest levels for the year so far at C$1.4295 per dollar, even as a White House official said steel tariffs would stack on top of a threatened blanket 25% levy on Mexico and Canada. The Mexican peso and other emerging market currencies remain under pressure and near to deep recent lows. Vietnam's dong made a record trough, squeezed by concerns a sizable trade surplus with the U.S. and big trade flows from China could invite tariffs. Follow Emirates 24|7 on Google News.
Yahoo
05-02-2025
- Business
- Yahoo
US Postal Service Suspends Inbound Parcels From China, Hong Kong
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here. State Farm Seeks Emergency California Rate Hike After Fires NYC's Newest Transit Leader Builds a Worker-Driven Strategy New York's First 'Passive House' School Is a Model of Downtown Density Transportation Memos Favor Places With Higher Birth and Marriage Rates When French Communists Went on a Brutalist Building Boom The US Postal Service is temporarily suspending inbound international packages from China and Hong Kong Posts, potentially delaying or blocking shipments from retailers like Shein and PDD Holdings Inc.'s Temu. The package freeze highlights a wider challenge to globally-minded businesses from incremental complications, which could be compounded if the US-China trade relationship worsens. The USPS announcement rattled Asian markets, sending shares of Chinese e-commerce retailers down. 'There's a more macro risk to the market now as all these seem to be an escalation of the trade war between the US and China,' said Nick Twidale, chief analyst at AT Global Markets in Sydney. 'I think we we will see these micro issues from both sides increase.' Shares of Alibaba Group Holding Ltd. fell more than 2% in Hong Kong and Inc. tumbled more than 5% before paring losses. Both companies, as well as Temu, Shein and Amazon, did not immediately respond to requests for comment. While it's not clear what prompted the USPS move, it comes after President Donald Trump revoked a 'de minimis' rule for China, which previously allowed small packages under $800 to enter the US duty-free. This exemption, often used by Chinese-linked e-commerce companies, was removed as part of a new 10% tariff on goods from China and Hong Kong, which took effect just after midnight Tuesday Washington time. The de minimis revocation is a 'significant challenge' for USPS in terms of sorting out how to execute the new tariff rules, said Chelsey Tam, senior equity analyst at Morningstar. 'There were 4 million de minimis packages per day in 2024, and it is difficult to check all the packages.' Small Packages The USPS restriction may have a more limited impact than it would have years ago, as many companies have moved away from USPS in recent years for international shipping, according to analysts. USPS said letters and flat mail from China and Hong Kong would not be affected, according to a statement on its website. A USPS spokesperson declined to comment beyond the announcement, including whether it was related to the order. The White House didn't immediately respond to a request for comment. Meanwhile, Macau will suspend the postal services of small parcels and packages sent by surface mail to the US starting from Wednesday, local media Teledifusão de Macau reported, citing Macau Post and Telecommunications Bureau. Washington is cracking down on a loophole that retailers like Temu and Shein have used for years to expand in the US, allowing them to ship high volumes of small packages and gain an edge over competitors like Inc. Critics say the flood of parcels from China is difficult to track and may contain illegal or dangerous goods. The total volume of de minimis shipments into the US hit 1.4 billion packages in fiscal year 2024, according to US Customs and Border Protection, about double the number in 2022. Discount online retailers like Temu and Shein contributed significantly to the spike in volume. However, disruptions from the USPS move may be more limited now than they would have been in previous years, as other operators have taken over the postal service's role in handling cross-border lightweight e-commerce packages, including those from China, according to a US Office of Inspector General report in May 2023. 'More Symbolic' The amount of global mail USPS handles from all countries has dropped sharply in recent years. USPS's annual volume of inbound international mail declined to fewer than 200 million pieces in 2022 from more than 600 million pieces in 2017, according to a 2024 report by the Government Accountability Office. Higher rates at USPS made UPS, FedEx and other carriers more competitive and they absorbed the volume, according to the report. The move is 'not good, but probably more symbolic,' Bloomberg Intelligence analyst Marvin Chen said, adding that most parcels would be delivered by private shippers. US officials have alleged that parcel mail, direct from China and via third-party countries, is a gateway for illicit drugs, including deadly fentanyl. 'What the cartels in China have done is exploit that loophole to smuggle in not just fentanyl but all sorts of drugs,' White House trade adviser Peter Navarro told Politico at an event in Washington on Tuesday. The China tariff order took effect even as two others, for Mexico and Canada, were put on hold. Trump has hinted at a possible call with Chinese leadership this week, though details remain unclear. The White House has not ruled out a deal to pause the tariffs, which could also impact the Postal Service's ban, though nothing has been confirmed yet. --With assistance from Spencer Soper, Winnie Hsu, Claire Che, Luz Ding, Josh Xiao, Daniela Wei, James Mayger, Jinshan Hong, Audrey Wan, Newley Purnell, Debby Wu, Danny Lee and Foster Wong. (Adds Macau suspending surface mail to US in 10th paragraph.) 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