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The Star
3 days ago
- Business
- The Star
Asian shares post modest gain, dollar holds drop
NEW YORK: Asian shares edged up at the open as investors awaited news on trade negotiations between the US and China before taking on risky bets. A regional stock index climbed 0.4 per cent while equity-index futures for the US dipped 0.2 per cent. Shares in mainland China fluctuated at the open on their return from a holiday Monday (June 2). Hong Kong shares advanced, erasing yesterday's losses. Treasuries were steady in Asian trading on Tuesday and the dollar was little changed after hitting its lowest since 2023 in the last session. Oil extended its gains. Investors are keeping a close eye on the latest twists in the trade war after a slew of headlines Monday. The main focus is whether US President Donald Trump and China's Xi Jinping will hold a conversation to dial down the tensions, after the two countries accused each other of violating a trade agreement reached in May. China hasn't confirmed any decision for talks between the two presidents even as the US pushes for a dialogue. "We're clearly seeing a lot of volatility and investors want more visibility,' Massimiliano Bondurri, founder and chief executive officer of SGMC Capital in Singapore, said on Bloomberg TV. "It's normal that markets are actually going to be flip-flopping. You're going to see actually even intraday swings. Could this be something that stays with us? Yes, it could.' Trump has long said that direct talks with Xi were the only way to resolve differences between the nations, but the Chinese leader has been reluctant to get on the phone with his American counterpart - preferring that advisers negotiate key issues. The last known conversation between Trump and Xi took place in January before the US president's inauguration. Top Trump economic adviser Kevin Hassett signaled Sunday the White House was anticipating a call this week with the Chinese leader. Meanwhile, Japan's top trade negotiator Ryosei Akazawa is considering returning to the US for another round of trade negotiations this week as expectations mount for a deal as early as this month. "We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. "Fiscal worries remain, and geopolitical tensions are heating up.' Trump worked the phones Monday and took to social media to try to sway Republican holdouts on his multi-trillion dollar tax bill, encountering conflicting demands from GOP senators even as he urged them to move swiftly. The legislation, which last month passed the House by one vote, faces opposition from both moderates and ultra-conservatives in the Senate, where Trump can afford to lose no more than three votes. In Japan, attention will once again shift to a debt market sale Tuesday that may ramp up pressure on the government to adjust its borrowing plans and calm investor nerves. Hot on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion (US$18 billion) of ten-year notes. In geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners. - Bloomberg
Business Recorder
23-05-2025
- Business
- Business Recorder
Asian currencies: Thai baht falls against dollar
BENGALURU: The Thai baht surrendered early gains on Thursday after the commerce minister called for a weaker currency to bolster exports, while the Philippine peso lagged regional peers over mounting political uncertainty in the Southeast Asian country. Overall, Asian currencies gained on a weak dollar while equities fell. Thailand's currency fell 0.3% to 32.825 per US dollar after rising 0.5% earlier in the day. Equities in Bangkok traded 0.3% lower. Pichai Naripthaphan, the country's commerce minister, said he wanted a weaker baht to support exports and that a level of 36-37 per US dollar was more suitable. The minister said that Thailand's exchange rate policy was not part of ongoing trade negotiations with the United States. 'The intraday reversal likely reflects how sensitive FX markets are to verbal intervention. When a senior policymaker explicitly says the currency needs to weaken, markets take that as a green light,' said Mohit Mirpuri, equity fund manager at SGMC Capital. 'While fundamentals like tourism recovery and current account surplus support the baht medium term, these types of comments can dampen momentum short term.' The Philippine peso was only marginally higher as mounting political uncertainty in the country capped gains, while stocks fell as much as 1.7% to hit their lowest level since April-end. Political instability has deepened in the Philippines after President Ferdinand Marcos Jr. asked for the resignation of his entire cabinet, following a lackluster performance by his allies in last week's Senate elections. Maybank analysts see support for the peso, including rising inflows, as the country's economy remains relatively sheltered. Meanwhile, the central bank of Sri Lanka surprised markets with a 25-basis-point rate cut in a bid to support growth in a country facing lingering economic issues. The Sri Lankan rupee inched higher while equities in Colombo jumped as much as 0.9% to hit their highest since March 3. Among other currencies, the Indonesian rupiah, Taiwan dollar and its Singaporean counterpart gained up to 0.4%, 0.3% and 0.1%, respectively. 'Asia EM FX has mainly been lifted by market perception that the US is looking for a weaker dollar versus Asian currencies, as part of its efforts to address its deep trade imbalances with several Asian economies,' said Lloyd Chan, FX strategist at MUFG. Stocks in Taiwan, Singapore and South Korea slipped 0.6%, 0.1% and 1.2%, respectively. Investor focus remained on US President Donald Trump's tax bill, set for a congressional vote this week.
Business Recorder
19-05-2025
- Business
- Business Recorder
Asia FX mixed; ringgit extends decline on weak growth outlook
The Malaysian ringgit extended losses on Monday after the central bank lowered its annual growth forecast, while other emerging currencies were mixed against a dollar softened by Moody's downgrade of the United States' credit rating. Malaysia's currency fell as much as 0.5% to 4.313 per US dollar while equities dropped 1%. The Southeast Asian country's economy expanded by 4.4% in the first quarter, data showed Friday, slowing from the previous quarter. The central bank flagged a dimmer outlook as persistent trade tensions weighed on consumer spending and investment. Analysts at Citi described the data as dovish and said it may bring the central bank closer to a 25-basis-point rate cut in the second half of the year. Elsewhere in the region, the Thai baht led gains among Asian currencies, while the Taiwan dollar and Singapore dollar also edged higher. The Indonesian rupiah fell 0.4% while the Philippine peso was more or less unchanged. The US dollar softened in early Asia trade, after a sharp 0.6% advance last week, with Moody's surprise downgrade intensifying concerns around the country's bloating debt pile. 'While there was some relief from the temporary pause in US-China tariffs, Moody's downgrade of US credit rating has added a layer of uncertainty,' said Mohit Mirpuri, an equity fund manager with SGMC Capital. Malaysia's ringgit leads Asian FX losses ahead of BNM rate decision Data from Thailand showed gross domestic product grew more than expected during the first quarter but the state planning agency lowered its annual forecasts on lingering worries over the country's export-focussed economy. The Bank of Thailand had downplayed the chances of more rate cuts last week despite a worsening economic outlook from trade concerns, challenges stemming from an aging population, low productivity, and high household debt. Equity markets were downbeat in emerging Asia while Chinese shares pared some losses after China's industrial output grew faster than anticipated in April. Underwhelming economic data out of China underscored the mounting challenges for the economy posed by its ongoing trade spat with the US. US equity futures dipped as global markets continued to assess the fallout from Moody's credit action. Stocks in Thailand and Singapore fell 0.2% and 0.2% respectively. Shares in Taiwan and South Korea fell 1.2% each.
New Straits Times
19-05-2025
- Business
- New Straits Times
Asia FX mixed; ringgit extends decline on weak growth outlook
KUALA LUMPUR: The Malaysian ringgit extended losses on Monday after the central bank lowered its annual growth forecast, while other emerging currencies were mixed against a dollar softened by Moody's downgrade of the United States' credit rating. Malaysia's currency fell as much as 0.5 per cent to 4.313 per US dollar while equities dropped 1 per cent. The Southeast Asian country's economy expanded by 4.4 per cent in the first quarter, data showed Friday, slowing from the previous quarter. The central bank flagged a dimmer outlook as persistent trade tensions weighed on consumer spending and investment. Analysts at Citi described the data as dovish and said it may bring the central bank closer to a 25-basis-point rate cut in the second half of the year. Elsewhere in the region, the Thai baht led gains among Asian currencies, while the Taiwan dollar and Singapore dollar also edged higher. The Indonesian rupiah fell 0.4 per cent while the Philippine peso was more or less unchanged. The US dollar softened in early Asia trade, after a sharp 0.6 per cent advance last week, with Moody's surprise downgrade intensifying concerns around the country's bloating debt pile. "While there was some relief from the temporary pause in US-China tariffs, Moody's downgrade of US credit rating has added a layer of uncertainty," said Mohit Mirpuri, an equity fund manager with SGMC Capital. Data from Thailand showed gross domestic product grew more than expected during the first quarter but the state planning agency lowered its annual forecasts on lingering worries over the country's export-focussed economy. The Bank of Thailand had downplayed the chances of more rate cuts last week despite a worsening economic outlook from trade concerns, challenges stemming from an aging population, low productivity, and high household debt. Equity markets were downbeat in emerging Asia while Chinese shares pared some losses after China's industrial output grew faster than anticipated in April. Underwhelming economic data out of China underscored the mounting challenges for the economy posed by its ongoing trade spat with the US US equity futures dipped as global markets continued to assess the fallout from Moody's credit action. Stocks in Thailand and Singapore fell 0.2 per cent and 0.2 per cent respectively. Shares in Taiwan and South Korea fell 1.2 per cent each
CNBC
13-05-2025
- Business
- CNBC
New Delhi remains focused on economy despite tensions with Pakistan: India ambassador to Singapore
India continues to focus on its growth despite the flare up in tensions with Pakistan, said Shilpak Ambule, the country's high commissioner to Singapore. Speaking to CNBC's "Inside India," Ambule said "everybody is on operational alert. But that does not mean that our India growth story and focus on economy gets affected." Airports have resumed operations, and it is safe to travel in India, he added. Ambule said that the country had just concluded a trade deal with the UK, and that negotiations on trade deals with the U.S and the European Union were at an advanced stage. With the U.S "it's very difficult to give a timeline" to the trade talks, but officials on both sides have been meeting regularly, he added. "The terms of reference have been agreed to and have been signed, and negotiations are actively continuing." Investors have been sticking with the India story, with optimism on its growth prospects dwarfing geopolitical fears. "Structural reforms, resilient domestic demand, and strong macro fundamentals continue to offer a compelling case," Mohit Mirpuri, an equity fund manager at SGMC Capital, told CNBC last week. Ambule's comments come after Indian Prime Minister Narendra Modi's speech late Monday on "Operation Sindoor," that saw New Delhi conducting military strikes against Pakistan last week. Islamabad retaliated with missiles and drones. The countries agreed to a ceasefire on Saturday. When asked if the ceasefire will hold, Ambule told CNBC that "the ball is in Pakistan's court." Modi in his speech said that the operation now defined India's new counter-terrorism policy, adding that the country would not differentiate between "a government that harbors terror and the terrorists themselves," accusing Pakistan of harboring terrorists. "If Pakistan wants to survive, it must dismantle its terror infrastructure. There is no other path to peace." Modi said. On May 9, India conducted strikes against Pakistan and what it calls Pakistan-occupied Jammu and Kashmir, targeting "terrorist infrastructure." This was in response to a terrorist attack by militants in the tourist town of Pahalgam in Kashmir province, which killed 25 Indian nationals and a Nepalese citizen, the Indian government said.
