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Business Standard
11 hours ago
- Business
- Business Standard
Asian markets rise as US stocks near records on easing trade tensions
Shares rose early Tuesday in Asia after US stock indexes drifted closer to records, while oil prices extended gains. Beijing and Washington dialled back trade friction as the US extended exemptions for tariffs on some Chinese goods, including solar manufacturing equipment, that US industries rely on for their own production. The US Trade Representative extended those exemptions, which were due to expire on May 31, by three months through August 31. Still, China criticised the US on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. Hong Kong's Hang Seng gained 1.1 per cent to 23,417.39, while the Shanghai Composite index added 0.3 per cent to 3,356.36. In Tokyo, the Nikkei 225 advanced 0.6 per cent to 37,683.19. South Korean markets were closed for a snap presidential election triggered by the ouster of Yoon Suk Yeol, a conservative who now faces an explosive trial on rebellion charges over his short-lived imposition of martial law in December. Australia's S&P/ASX 200 was up 0.7 per cent to 8,475.50. In Taiwan, the Taiex gained 1.4 per cent. On Monday, US stock indexes drifted closer to their records following a stellar May, Wall Street's best month since 2023. The S&P 500 rose 0.4 per cent to 5,935.94 after erasing an early loss from the morning. The Dow Jones Industrial Average added 0.1 per cent to 42,305.48. The Nasdaq composite climbed 0.7 per cent to 19,242.61. Indexes had fallen close to 1 per cent in the morning following some discouraging updates on US manufacturing. President Donald Trump has been warning that US businesses and households could feel some pain as he tries to use tariffs to bring more manufacturing jobs back to the country, and their on-and-off rollout has created lots of uncertainty. But stocks rallied back as the day progressed. Nvidia climbed 1.7 per cent, and Meta Platforms rose 3.6 per cent, for example. Oil prices have gained as attacks by Ukraine in Russia raise uncertainty about the flow of oil and gas around the world. Early Tuesday, US benchmark crude oil was up 62 cents at $63.14 per barrel. Brent crude, the international standard, picked up 57 cents to $65.19 per barrel. Markets took in stride fresh salvos between the world's two largest economies, just a few weeks after the United States and China had agreed to pause many of their tariffs that had threatened to drag the economy into a recession. That followed President Donald Trump's accusation at the end of last week, where he said China was not living up to its end of the agreement that paused their tariffs against each other. Trump on Friday told Pennsylvania steelworkers he's doubling the tariff on steel imports to 50 per cent to protect their industry, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. That helped stocks of US steelmakers climb. Nucor jumped 10.1 per cent, and Steel Dynamics rallied 10.3 per cent. On the losing side of Wall Street were automakers and other heavy users of steel and aluminium. Ford fell 3.9 per cent, and General Motors reversed by 3.9 per cent. Lyra Therapeutics soared nearly 311 per cent for one of the market's biggest gains after reporting positive late-stage trial results of an implant to treat chronic sinus inflammation in some patients. In the bond market, Treasury yields rose as worries continue about how much debt the US government will pile on due to plans to cut taxes and increase the deficit. The yield on the 10-year Treasury climbed to 4.44 per cent from 4.41 per cent late Friday and from just 4.01 per cent roughly two months ago. That's a notable move for the bond market. Besides making it more expensive for US households and businesses to borrow money, such increases in Treasury yields can deter investors from paying high prices for stocks and other investments. Yields had dipped briefly in the morning before rallying back following the updates on manufacturing, which suggested that effects of Trump's tariffs are taking root in the economy. A report from S&P Global on manufacturing came in better than expected, though uncertainty caused by tariffs has worries high about supplier delays and rising prices. Also, early Tuesday, the dollar rose to 143.10 Japanese yen from 142.71 yen. The euro slipped to $1.1438 from $1.1443.
New Straits Times
15 hours ago
- Business
- New Straits Times
Trump and Xi will likely speak this week, says White House
WASHINGTON: President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. Leavitt is the third top Trump aide to forecast an imminent call between the two leaders to iron out differences on last month's tariff agreement in Geneva, among larger trade issues. It was not immediately clear when the two leaders will speak. US Treasury Secretary Scott Bessent told CBS' "Face the Nation" on Sunday that Trump and Xi would speak "very soon" to iron out trade issues including a dispute over critical minerals and China's restrictions on exports of certain minerals. Trump said on Friday he was sure that he would speak to Xi. China said in April that the two leaders had not had a conversation recently. On Saturday, the US Trade Representative's office announced it would continue to exclude certain solar manufacturing equipment and other products from existing tariffs on Chinese goods until August 31, offering a three-month extension while talks with Beijing continue. Bessent led negotiations with China in Geneva last month that resulted in a temporary truce in the trade war between the world's two biggest economies, but progress since then has been slow, the US Treasury chief told Fox News last week. The US-China agreement to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks. But it did nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding US complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks. A US trade court on Wednesday ruled that Trump overstepped his authority in imposing the bulk of his tariffs on imports from China and other countries under an emergency powers act. But less than 24 hours later, a federal appeals court reinstated the tariffs, saying it was pausing the trade court ruling to consider the government's appeal. The appeals court ordered the plaintiffs to respond by June 5 and the administration to respond by June 9.
Free Malaysia Today
17 hours ago
- Business
- Free Malaysia Today
US pushes countries for best offers by Wednesday as tariff deadline looms
Donald Trump's tariff policy formed a key part of his 'America First' agenda, aiming to reshape trade, reduce deficits, and protect industries. (AP pic) WASHINGTON : The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters. The draft, from the office of the United States Trade Representative, provides a window into how President Donald Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his 'Liberation Day' tariffs for 90 days until July 8 after stock, bond and currency markets revolted over the sweeping nature of the levies. The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only one agreement has been reached with a major US trading partner: Britain. Even that limited pact was more akin to a framework for ongoing talks than a final deal. According to the draft document, the US is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of US industrial and agricultural products and plans to remedy any non-tariff barriers. Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter. The US will evaluate the responses within days and offer 'a possible landing zone' that could include a reciprocal tariff rate, according to the letter. It was unclear to which specific countries the letter would be sent, but it was directed at those where negotiations were active and included meetings and exchanges of documents. Active negotiations have been under way with the European Union, Japan, Vietnam and India, among others. A USTR official said trade negotiations were ongoing. 'Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties' interest to take stock of progress and assess any next steps.' 'Regardless of ongoing litigation' Trump's ambitious – and often frenetic – tariff policy represents a major part of his 'America First' economic agenda as he seeks to reshape US trade relationships, reduce trade deficits and protect American industries. Republican lawmakers are also banking on tariffs to add to federal revenue and offset the cost of the tax cut legislation now working its way through Congress. The twists and turns in Trump's tariff policies have taken investors on a rollercoaster ride. In May, US stocks held their biggest rally of any month since November 2023, but that was after global indexes had cratered under the barrage of Trump's tariff announcements through February, March and early April. Stocks were little changed on Monday afternoon after Trump announced a surprise doubling of tariffs on steel and aluminum imports on Friday at an event in Pittsburgh. Meanwhile, the legality of the approach used for imposing the most sweeping of his tariffs has been cast into doubt. Last Wednesday, the Court of International Trade ruled that Trump had overstepped his authority with tariffs devised under the International Emergency Economic Powers Act, including the 'Liberation Day' levies and earlier ones imposed on goods from Canada, Mexico and China related to Trump's accusations that the three countries have facilitated the flow of fentanyl into the US. Less than 24 hours later, an appeals court temporarily paused that decision. The tariffs at the center of the legal dispute are expected to remain in effect for now while the case plays out. The draft letter to trading partners warns them not to believe the tariffs will be sidelined if the court rules against Trump's use of the IEEPA. 'I should also note that regardless of ongoing litigation concerning the President's reciprocal tariff action in US courts, the President intends to continue this tariff program pursuant to other robust legal authorities if necessary, so it is important that we continue our discussions on these matters,' the draft says.
Reuters
a day ago
- Business
- Reuters
Exclusive: US pushes countries for best offers by Wednesday as tariff deadline looms
June 2 (Reuters) - The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners viewed by Reuters. The draft, from the office of the United States Trade Representative, provides a window into how President Donald Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his "Liberation Day" tariffs for 90 days until July 8 after stock, bond and currency markets revolted over the sweeping nature of the levies. The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only one agreement has been reached with a major U.S. trading partner: Britain. Even that limited pact was more akin to a framework for ongoing talks than a final deal. According to the draft document, the U.S. is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of U.S. industrial and agricultural products and plans to remedy any non-tariff barriers. Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter. The U.S. will evaluate the responses within days and offer "a possible landing zone" that could include a reciprocal tariff rate, according to the letter. It was unclear to which specific countries the letter would be sent, but it was directed at those where negotiations were active and included meetings and exchanges of documents. Active negotiations have been under way with the European Union, Japan, Vietnam and India, among others. A USTR official said trade negotiations were ongoing. 'Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties' interest to take stock of progress and assess any next steps.'
Russia Today
4 days ago
- Business
- Russia Today
China ‘violated' deal
US President Donald Trump has accused China of breaching a tariff agreement reached earlier this month, reigniting tensions in a fragile trade truce between the world's two largest economies. Under the deal announced on May 12 after breakthrough negotiations in Geneva, the US and China agreed to suspend most new duties imposed since early April, pending further talks. On Friday, Trump took to his Truth Social platform, writing: 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.' He gave no specifics but said China had been in 'grave economic danger' as a result of the tariffs, before Washington stepped in with what he called a 'FAST DEAL.' 'I saw what was happening and didn't like it, for them, not for us,' Trump wrote, adding 'So much for being Mr. NICE GUY!' Multiple outlets reported this week that the Trump administration has ordered US companies to halt shipments of high-end goods to China, including chip design software and specialty chemicals. Experts warned the decision would be likely to further escalate tensions with Beijing. The May 12 agreement had paused the 34% tariff hikes introduced on April 2 for 90 days, with Beijing taking reciprocal action. Both sides also committed to rolling back tariff increases introduced since April 8, while keeping a baseline 10% duty on mutual imports. US Trade Representative Jamieson Greer told CNBC on Friday that China had not removed certain non-tariff barriers as agreed under the deal. 'They removed the tariff like we did but some of the countermeasures they've slowed on,' he said. Treasury Secretary Scott Bessent echoed that concern, telling Fox News the negotiations were 'a bit stalled' and may now require direct involvement from Trump and Chinese President Xi Jinping. He said he expected talks to resume in the coming weeks. China on Friday urged Washington to 'immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva.' As part of that consensus, Beijing had also agreed to ease non-tariff measures such as export controls on US goods. The changes were due to take effect on May 14, alongside the creation of a bilateral consultation mechanism for future trade steps. Tensions spiked on April 2, when Trump imposed sweeping new tariffs on more than 90 countries, including China, citing trade imbalances. Beijing retaliated, triggering a tit-for-tat standoff that saw final US duties climb to 145% and Chinese tariffs to 125%. The dispute rattled global markets, driving volatility across equities and commodities.
