Latest news with #economicstimulus
Yahoo
2 days ago
- Business
- Yahoo
Asian stocks rise, dollar wobbles as trade uncertainty persists
By Ankur Banerjee SINGAPORE (Reuters) -Asian equities rose on Wednesday lifted by technology shares and the dollar drifted as higher U.S. duties on steel and aluminium took effect, marking the latest chapter in the trade war that has rattled the markets for much of the year. Investor focus has been on the pace of trade negotiations and the lack of significant progress. Wednesday is the deadline for U.S. trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks. European stock futures pointed to a higher open as the European Central Bank kicks off its two-day policy meeting where it is expected to cut rates on Thursday. In Asia, South Korea's stocks and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark KOSPI jumped more than 2% to its highest since August 2024. That left the MSCI's broadest index of Asia-Pacific shares outside Japan nearly 1% higher. Japan's Nikkei rose 0.8%, while Taiwan stocks jumped 2% after artificial intelligence behemoth Nvidia boosted U.S. stocks on Tuesday. [.N] Data showed U.S. job openings increased in April, but layoffs picked up, indicating a slowing labour market as tariffs impact the economic outlook. Investor attention has been on a possible call between U.S. President Donald Trump and Chinese leader Xi Jinping sometime this week as tensions between the world's top two economies simmer. Trump on Friday accused China of violating a Geneva agreement to roll back tariffs and trade restrictions. Beijing said it would safeguard its interests and that the accusation was groundless. Chinese stocks rose on Wednesday with the blue chip index up 0.58%, while Hong Kong's Hang Seng index rose 0.56%. "Markets may be desensitized to trade headlines, but Trump-Xi talks remain in focus. A grand deal looks unlikely, yet any escalation could still spark a bout of risk aversion," said Charu Chanana, chief investment strategist at Saxo in Singapore. Meanwhile, Trump signed an executive proclamation putting into effect from Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminium imports that had been in place since March to 50% from 25%. "We believe that the steel & aluminium tariffs are an exemplar of other strategic tariffs that are coming and likely to 'stick'," said Thierry Wizman, global FX & rates strategist at Macquarie. "With that, there's still little impetus for a U.S. dollar rally to take hold." DOLLAR WEAKNESS The on-again-off-again tariffs from Trump have led to investors fleeing U.S. assets looking for safe havens, including gold and other currencies, this year as they expect trade uncertainties to take a toll on the global economy. The Organisation for Economic Cooperation and Development said the global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, trimming its estimates from March, mainly on the fallout from the Trump administration's trade war. The dollar on Wednesday edged 0.18% higher against the yen at 144.225. The euro was flat at $1.1368. The dollar index, which measures the U.S. unit versus six other major currencies, was at 99.31, not far from the six-week low of 98.58 touched on Monday. The index is down 8.5% this year. In commodities, oil prices eased, weighed down by a loosening supply-demand balance following increasing OPEC+ output and lingering concerns over the global economic outlook due to tariff tensions. [O/R] Brent crude futures dipped 0.38% to $65.38 a barrel while U.S. West Texas Intermediate crude was at $63.15 per barrel, down 0.41%. Gold was little changed at $3,351.5 per ounce, taking its gains for the year to an eye-popping 28% on safe-haven flows. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
2 days ago
- Business
- Zawya
Asian stocks up, dollar soft as trade uncertainty mounts
SINGAPORE - Asian stocks inched higher on Wednesday and the dollar wobbled near six-week lows as traders braced for higher U.S. duties on steel and aluminium, the latest chapter in the trade war saga that has rattled the markets for much of the year. South Korea's stocks and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark KOSPI jumped more than 2% to its highest since August 2024. That left the MSCI's broadest index of Asia-Pacific shares outside Japan 0.6% higher. Japan's Nikkei rose 0.8%, while Taiwan stocks jumped 1.6% after artificial intelligence behemoth Nvidia boosted U.S. stocks overnight. Data on Wednesday showed U.S. job openings increased in April, but layoffs picked up, indicating a slowing labour market as tariffs impact the economic outlook. Investor attention has been on a possible call between U.S. President Donald Trump and Chinese leader Xi Jinping sometime this week as tensions between the world's top two economies simmer. Trump on Friday accused China of violating a Geneva agreement to roll back tariffs and trade restrictions. Beijing said it would safeguard its interests and that the accusation was groundless. Chinese stocks were little changed in early trading with the blue chip index up 0.09%. Hong Kong's Hang Seng index rose 0.27%. "Markets may be desensitized to trade headlines, but Trump-Xi talks remain in focus. A grand deal looks unlikely, yet any escalation could still spark a bout of risk aversion," said Charu Chanana, chief investment strategist at Saxo in Singapore. Also in focus has been the pace of trade negotiations and the lack of significant progress. Wednesday is the deadline for U.S. trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks. Trump signed an executive proclamation that puts into effect from 0401 GMT on Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminium imports that had been in place since March to 50% from 25%. "We believe that the steel & aluminium tariffs are an exemplar of other strategic tariffs that are coming and likely to 'stick'," said Thierry Wizman, global FX & rates strategist at Macquarie. "With that, there's still little impetus for a U.S. dollar rally to take hold." DOLLAR WEAKNESS The on-again-off-again tariffs from Trump have led to investors fleeing U.S. assets looking for safe havens, including gold and other currencies, this year as they expect trade uncertainties to take a toll on the global economy. The Organisation for Economic Cooperation and Development said the global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, trimming its estimates from March, mainly on the fallout from the Trump administration's trade war. The dollar on Wednesday was on the back foot, slipping 0.17% against the yen at 143.72 and 0.1% against the Swiss franc at 0.8227. The euro rose 0.15% to $1.1388. The dollar index, which measures the U.S. unit versus six other major currencies, was at 99.11, not far from the six-week low of 98.58 touched on Monday. The index is down 8.5% this year. In commodities, oil prices eased, weighed down by a loosening supply-demand balance following increasing OPEC+ output and lingering concerns over the global economic outlook due to tariff tensions. Brent crude futures dipped 0.06% to $65.59 a barrel while U.S. West Texas Intermediate crude was at $63.35 per barrel, down 0.09%. Gold rose 0.5% to $3,369.59 per ounce, taking its gains for the year to an eye-popping 28% on safe-haven flows.
Reuters
2 days ago
- Business
- Reuters
Asian stocks up, dollar soft as trade uncertainty mounts
SINGAPORE, June 4 (Reuters) - Asian stocks inched higher on Wednesday and the dollar wobbled near six-week lows as traders braced for higher U.S. duties on steel and aluminium, the latest chapter in the trade war saga that has rattled the markets for much of the year. South Korea's stocks (.KS11), opens new tab and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark KOSPI (.KS11), opens new tab jumped more than 2% to its highest since August 2024. That left the MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab 0.6% higher. Japan's Nikkei (.N225), opens new tab rose 0.8%, while Taiwan stocks (.TWII), opens new tab jumped 1.6% after artificial intelligence behemoth Nvidia (NVDA.O), opens new tab boosted U.S. stocks overnight. Data on Wednesday showed U.S. job openings increased in April, but layoffs picked up, indicating a slowing labour market as tariffs impact the economic outlook. Investor attention has been on a possible call between U.S. President Donald Trump and Chinese leader Xi Jinping sometime this week as tensions between the world's top two economies simmer. Trump on Friday accused China of violating a Geneva agreement to roll back tariffs and trade restrictions. Beijing said it would safeguard its interests and that the accusation was groundless. Chinese stocks were little changed in early trading with the blue chip index (.CSI300), opens new tab up 0.09%. Hong Kong's Hang Seng index (.HIS), opens new tab rose 0.27%. "Markets may be desensitized to trade headlines, but Trump-Xi talks remain in focus. A grand deal looks unlikely, yet any escalation could still spark a bout of risk aversion," said Charu Chanana, chief investment strategist at Saxo in Singapore. Also in focus has been the pace of trade negotiations and the lack of significant progress. Wednesday is the deadline for U.S. trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks. Trump signed an executive proclamation that puts into effect from 0401 GMT on Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminium imports that had been in place since March to 50% from 25%. "We believe that the steel & aluminium tariffs are an exemplar of other strategic tariffs that are coming and likely to 'stick'," said Thierry Wizman, global FX & rates strategist at Macquarie. "With that, there's still little impetus for a U.S. dollar rally to take hold." The on-again-off-again tariffs from Trump have led to investors fleeing U.S. assets looking for safe havens, including gold and other currencies, this year as they expect trade uncertainties to take a toll on the global economy. The Organisation for Economic Cooperation and Development said the global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, trimming its estimates from March, mainly on the fallout from the Trump administration's trade war. The dollar on Wednesday was on the back foot, slipping 0.17% against the yen at 143.72 and 0.1% against the Swiss franc at 0.8227. The euro rose 0.15% to $1.1388. The dollar index , which measures the U.S. unit versus six other major currencies, was at 99.11, not far from the six-week low of 98.58 touched on Monday. The index is down 8.5% this year. In commodities, oil prices eased, weighed down by a loosening supply-demand balance following increasing OPEC+ output and lingering concerns over the global economic outlook due to tariff tensions. Brent crude futures dipped 0.06% to $65.59 a barrel while U.S. West Texas Intermediate crude was at $63.35 per barrel, down 0.09%. Gold rose 0.5% to $3,369.59 per ounce, taking its gains for the year to an eye-popping 28% on safe-haven flows.
CNA
2 days ago
- Business
- CNA
South Korean shares rally on post-election policy hopes
SEOUL: South Korean shares rose more than 2 per cent on Wednesday (Jun 4) to their highest in 10 months, as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus policies and market reforms. The benchmark KOSPI rose as much as 2.3 per cent in early trade to 2,761.54, the highest since Aug 1, 2024. Lee began his term on Wednesday, just hours after his victory in Tuesday's snap election, who has vowed to bring corporate reform measures to boost the domestic stock market, raise investment in artificial intelligence, and revive an economy reeling from slowing growth. The securities sector was the top gainer, rising more than 6 per cent, while financial groups jumped more than 3 per cent. Analysts expect the sectors to gain most from market reform pushes. On capital markets, Lee vowed to revive legislation within a few weeks to curb abuses by controlling shareholders of chaebol conglomerates, as part of his "KOSPI 5,000" pledge to double the value of the domestic stock market. The revision to the Commercial Act is seen by market analysts as a fundamental change needed to resolve the so-called "Korea Discount", a tendency for local shares to be undervalued compared with global peers due to low dividend payouts and opaque corporate governance. "We expect to see meaningful progress in capital market and governance reform post-election," Morgan Stanley's analysts said in a note, setting their KOSPI target for June 2026 at 2,800 for the base case and 3,100 for the bullish case. Renewable energy stocks rallied on expectations of a reversal in energy policy away from nuclear energy. HD Hyundai Energy Solutions surged 12.5 per cent to the highest since March 2023, Hanwha Solutions climbed 6.4 per cent, Doosan Fuel Cell gained 5.7 per cent, and CS Wind added 4.9 per cent. As Lee has expressed more conciliatory plans for ties with North Korea and China, stocks with exposure to North Korea, including In The F and Namkwang Engineering & Construction, and those with exposure to China, such as beauty product makers and entertainment firms, advanced. Among major heavyweights, chipmaker SK Hynix gained 6.3 per cent, while rival Samsung Electronics rose 0.70 per cent. "A combination of aggressive industrial policies and expansionary fiscal policies could lead to faster economic growth, at least in the short term," said Kim Jin-wook, an economist at Citi. "The Democratic Party's strong position in the National Assembly may accelerate the implementation of election pledges in the coming years," Kim said. The won was quoted 0.11 per cent higher at 1,375.6 per dollar on the onshore settlement platform, as foreigners bought local shares. In the bond market, the benchmark 10-year treasury bond yield rose by 5.1 basis points to 2.852 per cent, the highest in two months, as Lee has said he would draft a second supplementary government budget of at least 30 trillion won (US$21.84 million) this year to boost economic growth, after a 13.8 trillion won budget passed in May.
Bloomberg
3 days ago
- Business
- Bloomberg
Emerging-Market Stocks Gain as China Data Refuel Stimulus Hopes
Emerging-market stocks advanced for the first time in three days as a slump in China's factory activity increased bets on more economic stimulus. The benchmark MSCI EM index rose 0.4% after data showing China's manufacturing sector had its worst slump since September 2022, with higher tariffs taking a toll on smaller exporters. The onshore CSI 300 Index gained 0.3%, while a gauge of Chinese stocks listed in Hong Kong jumped 1.9%.
