Latest news with #WilliamYang
Jordan Times
8 hours ago
- Business
- Jordan Times
Most markets rise as China-US truce extended, inflation in focus
HONG KONG — Asian markets mostly rose Tuesday, with Tokyo hitting a record, as investors welcomed the extension of a China-US tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day. Donald Trump's widely expected trade announcement avoids the re-imposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff. In an executive order, the White House reiterated its position that there are "large and persistent annual US goods trade deficits" and they "constitute an unusual and extraordinary threat to the national security and economy of the United States". However, William Yang, an analyst at the International Crisis Group, said: "Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions." With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of Trump's trade war. First up is the US consumer price index (CPI) later in the day, which could play a major role in the Federal Reserve's decision-making with regard to interest rates. Bets on a cut have ramped up in recent weeks owing to signs that the world's number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months. Expectations are for CPI to come slightly above June's reading, but analysts warned investors were walking a fine line. "CPI is the storm front straight ahead. A soft number, and the market exhales. A hot number, and the stagflation whisper becomes the only language anyone speaks," said SPI Asset Management's Stephen Innes. While there have been warnings that the tariffs will stoke inflation National Australia Bank's Ray Attrill said: "The larger tariff impacts... probably will not be felt until August/September, with firms now only gaining some clarity on the degree of reciprocal tariffs. "The current profit reporting season has noted firms on the whole were waiting for greater clarity on final tariff rates before adjusting prices." Also on the agenda this week are wholesale prices and retail sales, with the Fed's favoured gauge of inflation at the end of the month. Bank officials are then set to make their decision in the middle of September. Forecasts are for a reduction at that gathering and one more before the end of the year. Asia's rally was led by Tokyo's Nikkei 225, which soared around 2.8 per cent to hit a record high of 42,983.34 on renewed optimism over the Japanese economy after officials reached a deal to avert the worst of Trump's tariffs. The gains came as traders returned to work after a long weekend. Hong Kon g, Shanghai, Sydney, Seoul, Taipei, Mumbai, Jakarta and Manila also advanced. Singapore and Wellington dropped.
CNA
10 hours ago
- Business
- CNA
Markets boosted by China-US truce extension, inflation in focus
HONG KONG: Stock markets mostly rose on Tuesday (Aug 12), with Tokyo hitting a record, as investors welcomed the extension of a China-United States tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day. US President Donald Trump's widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff. In an executive order, the White House reiterated its position that there are "large and persistent annual US goods trade deficits" and they "constitute an unusual and extraordinary threat to the national security and economy of the United States". However, William Yang, an analyst at the International Crisis Group, said: "Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions." With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of Trump's trade war. First up is the US consumer price index (CPI) later in the day, which could play a major role in the Federal Reserve's decision-making with regard to interest rates. Bets on a cut have ramped up in recent weeks owing to signs that the world's number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months. Expectations are for CPI to come slightly above June's reading, but analysts warned investors were walking a fine line with a forecast-topping print likely to dent rate cut hopes and a too-weak read stoking economic fears. "I'd imagine, for equities at least, given the comfort blanket that the surge in September cut expectations has provided recently, that a hotter-than-expected figure could see some fairly sizeable downside," said Pepperstone's Michael Brown. While there have been warnings that the tariffs will stoke inflation, National Australia Bank's Ray Attrill said: "The larger tariff impacts ... probably will not be felt until August or September, with firms now only gaining some clarity on the degree of reciprocal tariffs. "The current profit reporting season has noted firms on the whole were waiting for greater clarity on final tariff rates before adjusting prices." Also on the agenda this week are wholesale prices and retail sales, with the Fed's favoured gauge of inflation at the end of the month. Bank officials are then set to make their decision in the middle of September. Forecasts are for a reduction at that gathering and one more before the end of the year. Asia's markets rally was led by Tokyo's Nikkei 225, which briefly soared almost three per cent to hit a record high of 42,999.71 on renewed optimism over the Japanese economy after officials reached a deal to avert the worst of Trump's tariffs. IwaiCosmo Securities said in a market commentary that "easing tensions over US-China trade talks, as well as speculation about the US's imminent lowering of (interest) rates" had helped boost investors' hopes about the recovery of Japanese companies. The gains came as traders returned to work after a long weekend. Hong Kong, Shanghai, Taipei, Mumbai, Jakarta and Manila also advanced with London, Paris and Frankfurt.
The Sun
11 hours ago
- Business
- The Sun
Asian markets rise as China-US tariff truce extended, inflation data eyed
HONG KONG: Asian markets mostly advanced on Tuesday as investors welcomed the extension of a China-US tariff truce. Tokyo's Nikkei 225 briefly surged nearly 3% to a record high of 42,999.71 amid renewed optimism over Japan's economy. The White House reiterated concerns over US trade deficits but avoided reimposing steep tariffs, allowing negotiations to continue. Analyst William Yang noted Beijing is unlikely to make concessions despite ongoing talks. Investors now await US inflation data, which could influence the Federal Reserve's interest rate decisions. Recent economic signals suggest a slowdown, raising expectations for a rate cut in September. Pepperstone's Michael Brown warned that higher-than-expected inflation figures could trigger market declines. National Australia Bank's Ray Attrill noted tariff impacts on inflation may only emerge in August or September. Upcoming US wholesale prices and retail sales data will also shape market sentiment. Tokyo's rally was attributed to easing trade tensions and speculation of US rate cuts. Hong Kong, Shanghai, Sydney, Taipei, Mumbai, Jakarta, and Manila also posted gains. London, Paris, and Frankfurt followed the positive trend in early trading. Seoul, Singapore, and Wellington were among the few markets to decline. Traders returned from a long weekend, boosting activity in several Asian exchanges. The Fed's next policy decision in mid-September remains a key focus for global markets. - AFP
Malay Mail
12 hours ago
- Business
- Malay Mail
Asia stocks mostly rise as Tokyo hits record on US-China tariff truce, investors eye US inflation data
HONG KONG, Aug 12 — Asian markets mostly rose Tuesday, with Tokyo hitting a record, as investors welcomed the extension of a China-US tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day. Donald Trump's widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff. In an executive order, the White House reiterated its position that there are 'large and persistent annual US goods trade deficits' and they 'constitute an unusual and extraordinary threat to the national security and economy of the United States'. However, William Yang, an analyst at the International Crisis Group, said: 'Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions.' With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of Trump's trade war. First up is the US consumer price index (CPI) later in the day, which could play a major role in the Federal Reserve's decision-making with regard to interest rates. Bets on a cut have ramped up in recent weeks owing to signs that the world's number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months. Expectations are for CPI to come slightly above June's reading, but analysts warned investors were walking a fine line with a forecast-topping print likely to dent rate cut hopes and a too-weak read stoking economic fears. 'I'd imagine, for equities at least, given the comfort blanket that the surge in September cut expectations has provided recently, that a hotter-than-expected figure could see some fairly sizeable downside,' said Pepperstone's Michael Brown. While there have been warnings that the tariffs will stoke inflation, National Australia Bank's Ray Attrill said: 'The larger tariff impacts... probably will not be felt until August/September, with firms now only gaining some clarity on the degree of reciprocal tariffs. 'The current profit reporting season has noted firms on the whole were waiting for greater clarity on final tariff rates before adjusting prices.' Also on the agenda this week are wholesale prices and retail sales, with the Fed's favoured gauge of inflation at the end of the month. Bank officials are then set to make their decision in the middle of September. Forecasts are for a reduction at that gathering and one more before the end of the year. Asia's markets rally was led by Tokyo's Nikkei 225, which briefly soared almost three per cent to hit a record high of 42,999.71 on renewed optimism over the Japanese economy after officials reached a deal to avert the worst of Trump's tariffs. IwaiCosmo Securities said in a market commentary that 'easing tensions over US-China trade talks, as well as speculation about the US's imminent lowering of (interest) rates' had helped boost investors' hopes about the recovery of Japanese companies. The gains came as traders returned to work after a long weekend. Hong Kong, Shanghai, Sydney, Taipei, Mumbai, Jakarta and Manila also advanced with London, Paris and Frankfurt. Seoul, Singapore and Wellington dropped. — AFP
Sharjah 24
13 hours ago
- Business
- Sharjah 24
Trump signs order to extend China tariff truce by 90 days
The White House's halt on steeper tariffs will be in place until November 10. "I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days," Trump wrote on his Truth Social platform. The truce on steeper levies had been due to expire Tuesday. While the United States and China slapped escalating tariffs on each other's products this year, bringing them to prohibitive triple-digit levels and snarling trade, both countries in May agreed to temporarily lower them. As part of their May truce, fresh US tariffs targeting China were reduced to 30 percent and the corresponding level from China was cut to 10 percent. Those rates will now hold until November -- or whenever a deal is cut before then. Around the same time that Trump confirmed the new extension, Chinese state media Xinhua news agency published a joint statement from US-China talks in Stockholm saying it would also extend its side of the truce. China will continue suspending its earlier tariff hike for 90 days starting August 12 while retaining a 10-percent duty, the report said. It would also "take or maintain necessary measures to suspend or remove non-tariff countermeasures against the United States, as agreed in the Geneva joint declaration," Xinhua reported. In the executive order posted Monday to its website, the White House reiterated its position that there are "large and persistent annual US goods trade deficits" and they "constitute an unusual and extraordinary threat to the national security and economy of the United States." The order acknowledged Washington's ongoing discussions with Beijing "to address the lack of trade reciprocity in our economic relationship" and noted that China has continued to "take significant steps toward remedying" the US complaints. Trump-Xi summit? "Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions," warned William Yang, an analyst at the International Crisis Group. He believes China sees its leverage over rare earth exports as a strong one, and that Beijing will likely use it to pressure Washington. US-China Business Council president Sean Stein said the current extension is "critical to give the two governments time to negotiate an agreement" providing much-needed certainty for companies to make plans. A trade deal, in turn, would "pave the way for a Trump-Xi summit this fall," said Asia Society Policy Institute senior vice president Wendy Cutler. But Cutler, herself a former US trade official, said: "This will be far from a walk in the park." Since Trump took office, China's tariffs have essentially boomeranged, from the initially modest 10 percent hike in February, followed by repeated surges as Beijing and Washington clashed, until it hit a high of 145 percent in April. Now the tariff has been pulled back to 30 percent, a negotiated truce rate. Even as both countries reached a pact to cool tensions after high level talks in Geneva in May, the de-escalation has been shaky. Key economic officials convened in London in June as disagreements emerged and US officials accused their counterparts of violating the pact. Policymakers met again in Stockholm last month. Trump said in a social media post Sunday that he hoped China will "quickly quadruple its soybean orders," adding this would be a way to balance trade with the United States. China's exports reached record highs in 2024, and Beijing reported that their exports exceeded expectations in June, climbing 5.8 percent year-on-year, as the economic superpower works to sustain growth amid Trump's trade war. Separately, since returning to the presidency in January, Trump has slapped a 10-percent "reciprocal" tariff on almost all trading partners, aimed at addressing trade practices Washington deemed unfair. This surged to varying steeper levels last Thursday for dozens of economies. Major partners like the European Union, Japan and South Korea now see a 15-percent US duty on many products, while the level went as high as 41 percent for Syria. The "reciprocal" tariffs exclude sectors that have been targeted individually, such as steel and aluminum, and those that are being investigated like pharmaceuticals and semiconductors. They are also expected to exclude gold, although a clarification by US customs authorities made public last week caused concern that certain gold bars might still be targeted. Trump said Monday that gold imports will not face additional tariffs, without providing further details. The president has taken separate aim at individual countries such as Brazil over the trial of former president Jair Bolsonaro, who is accused of planning a coup, and India over its purchase of Russian oil. Canada and Mexico come under a different tariff regime.
