Latest news with #tradeTariffs
Forbes
2 days ago
- Business
- Forbes
China Market Update: Stocks Celebrate Free Markets After Tariff Court Loss
CLN KraneShares Li Auto (LI US, 2015 HK) reported Q1 financial results after the Hong Kong close. According to management, Q1 is 'typically a seasonally slow period for auto sales'. Asian equities cheered the Court of International Trade's decision that President Trump's use of the International Emergency Economic Powers Act of 1977 was not legal. Japan, Hong Kong, and South Korea outperformed, Taiwan and the Philippines underperformed, and Indonesia was closed for Ascension Day, a major Christian holiday commemorating Jesus Christ's ascension into heaven. The Trump Administration is appealing the decision and could implement tariffs under Section 301 of the Trade Act of 1974, as he did in his first term. It does highlight the ability to challenge DC in the courts, as we saw with TikTok. We'll enjoy the moment while it lasts, though one would hope 1600 Pennsylvania Avenue notices the strong market response. The Financial Times, which clearly receives Trump 'leaks' over the Wall Street Journal, reported 'the US Department of Commerce had told so-called electronic design automation groups – which include Cadence, Synopsys and Siemens Eda – to stop supplying their technology to China' according to 'several people familiar with the move'. Cadence fell by 10.67%, destroying $9.411B of investor capital based on their market cap decline, while Synopsys fell by 9.64%, destroying $7.381B of investor capital. The Administration's foreign student visa ban has evolved into a China student visa ban based on comments from Secretary of State Rubio. All pressure points are being applied to China trade negotiations, though President Trump's June 14th and President Xi's June 15 birthdays are coming, which many have speculated would result in a meeting. Hong Kong growth stocks, other than electric vehicles and hybrids, which continue to face competition concerns, responded with a rip in response led by Meituan, which gained +6.62% on strong liquor sales at the start of the 618 e-commerce event, Tencent, which gained +0.89%, and Alibaba, which gained +2.07%. Meanwhile, Xiaomi fell -0.10%, CATL fell -1.09%, and BYD fell -0.25%. gained +4.19% on a partnership with popular app provider Xiao Hong Shu, commonly known as Little Red Book. Zhongan Online P&C Insurance +31.56% bringing recent gains to over +70% following Hong Kong passing a stablecoin Bill as the company is 'Hong Kong's first digital bank to provide reserve-banking service for stablecoin issuers' according to Bloomberg. As one of their largest ten shareholders, we'll take it! Again, this proves how hard it is to pick the winners. Healthcare and the Apple ecosystem stocks Sunny Optical and AAC Technologies ripped higher on the tariff news by +4.54% and +3.11%, respectively, while Wuxi Biologics gained +10.04%, and CSPC Pharmaceuticals +11.73% after strong Q1 results. XPeng bucked the downward trend for EV stocks, gaining +5.17% after releasing a new autonomous driving feature. The tariff news did something the government has not been able to accomplish: raise the Mainland markets! Technology and growth stocks led the way higher versus value plays, as banks slipped. The Hang Seng Index is well above its Liberation Day Gap, Shanghai is just above it, Hang Seng Tech, and Shenzhen closed right at it. Hopefully, a little positive momentum allows for another push higher. A Mainland media source reported that fifty cities announced home purchase subsidies, including Hefei, Taizhou, Jiangsu, Foshan, Lanzhou, and Wuhan. What is interesting is that several cities are providing subsidies for families with two or three children. In Wuhan, families with two children receive a discount of RMB 60,000 and those with three children a discount of RMB 120,000. An incentive to have more kids while addressing the housing crisis. Two birds, one stone! Interesting, right?! Random thought: If the US government implemented tariffs due to the national crisis caused by the trade deficit, shouldn't there be a similar response to the US government's budget deficit? Live Webinar Join us Friday, May 30, at 11 am EDT for: Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
Bloomberg
3 days ago
- Business
- Bloomberg
BOK Cuts Rate to Cushion Economy From Tariffs, Political Turmoil
The Bank of Korea delivered a widely expected interest-rate cut Thursday to help buffer the export-driven economy from Donald Trump's sweeping trade tariffs and revive domestic activity after months of political turmoil eroded growth. The central bank lowered its seven-day repurchase rate by a quarter percentage point to 2.5% on Thursday. The rate cut, the fourth since the BOK began its easing cycle in October, was forecast by all 21 polled economists.
Reuters
5 days ago
- Business
- Reuters
Traders to look out for rupee extending rally; bond yields may see uptick
MUMBAI, May 26 (Reuters) - Traders will gauge likelihood of the Indian rupee extending its rally this week as reignited worries about U.S. trade tariffs, alongside lingering fiscal concerns hurt the dollar, while bond yields may move up after the central bank's surplus transfer. The rupee closed at 85.2125 on Friday, posting its biggest single-day gain in more than two years, and strengthened 0.3% week-on-week. Alongside a rally in Asian currencies, heavy dollar sales from foreign banks and cutting of speculative bearish bets against the rupee contributed to the rally, traders said. The dollar, meanwhile, weakened against most currencies on Friday after U.S. President Donald Trump recommended 50% tariffs on European Union imports from June 1 and said he was considering a 25% tariff on smartphones made outside the U.S. The fresh tariff threats roiled global markets and deepened the dollar's losses which ended down by about 1.8% on the week against major peers. "Escalation – de-escalation and now re-escalation of President Trump's war on trade is going to be the theme that drives markets next week," ING Bank said in a note. Back home, India's January-March growth data, due on Friday, will be in focus. Year-on-year gross domestic product growth is expected to come in at 6.7%, per a Reuters poll. In the near-term, the rupee is expected to face resistance to further gains near 84.94, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. U.S. Personal Consumption Expenditure (PCE) inflation data for April, due on Friday as well, may offer cues on the impact Trump's tariff policies are having on prices in the world's largest economy. India's 10-year benchmark 6.33% 2035 bond yield eased marginally last week, and ended at 6.2107% on Friday. Traders anticipate the yield to move in the range of 6.18%-6.26% this week. The yield on the 6.79% government bond maturing in 2034 ended at 6.2520% on Friday. The Reserve Bank of India's board approved the transfer of 2.69 trillion rupees ($31.58 billion) as surplus for the fiscal year ended March, up from 2.11 trillion rupees last year. Analysts' estimates, however, had ranged between 2.7 trillion rupees and 4 trillion rupees. In fiscal year 2024, the RBI had transferred a surplus of 2.11 trillion rupees. "We could see some upward move in the immediate aftermath on Monday, but major focus would shift on growth data," a trader with a private bank said. The RBI is largely expected to cut its key interest rate for a third consecutive time to 5.75% at its monetary policy meeting on June 6. "With growth below potential and inflation durably aligned to target, we expect policy rates to be lowered into the accommodative zone. We expect an additional 100 bps of rate cuts to a terminal policy rate of 5.00% by end-2025, more than consensus," Nomura economists said. KEY EVENTS: India ** April industrial output - May 28, Wednesday (4:00 p.m. IST)(Reuters poll - 2%) ** April fiscal deficit - May 30, Friday (3:30 p.m. IST) ** January-March GDP growth - May 30, Friday (4:00 p.m. IST)(Reuters poll - 6.7%) U.S. ** April durable goods - May 27, Tuesday (6:00 p.m. IST) ** May consumer confidence - May 27, Tuesday (7:30 p.m. IST) ** January-March GDP second estimate - May 29, Thursday (6:00 p.m. IST)(Reuters poll -0.3%) ** Initial weekly jobless claims for week to May 19 - May 29, Thursday (6:00 p.m. IST) ** April personal consumption expenditure index, core PCE index - May 30, Friday (6:00 p.m. IST) ** May U Mich sentiment final - May 30, Friday (7:30 p.m. IST) ($1 = 85.1720 Indian rupees)
News.com.au
23-05-2025
- Business
- News.com.au
RBA focusing on the trade ‘disruptions' made by Trump's tariffs
Now Playing Judo Bank Chief Economist Warren Hogan discusses the Reserve Bank's decision to cut interest rates by 25 basis points to 3.85 per cent. 'The RBA has had a big shift this week – they've had really started to worry about the global scene and the disruptions to trade from these tariffs that the Trump administration announced,' Mr Hogan told Sky News Australia. 'Although financial markets and trade negotiations all seem to be sort of stabilising and moving in a more settled way, they remain focused on this as the big risk.
Reuters
21-05-2025
- Business
- Reuters
Two-thirds of Japanese firms want BOJ to pause rate hikes amid Trump tariffs, Reuters poll shows
TOKYO, May 22 (Reuters) - Nearly two-thirds of Japanese firms want the Bank of Japan to temporarily pause interest rate hikes as U.S. President Donald Trump's tariff policies raise pressure on earnings, a Reuters poll showed on Thursday. Japan's economy contracted for the first time in a year in the first quarter, underscoring the fragile nature of its recovery now under threat from U.S. trade policies. About 65% of respondents want the BOJ to pause interest rate increases and 10% would like to see rates lowered, while 25% are of the view that the central bank should proceed with rate hikes, the survey showed. "No one knows how negotiations over the Trump tariffs will be settled and what their impact will be. Any rate action should be taken only after visibility has been regained," a manager at a company in the service sector wrote in the survey. An official at an electronics company said the tariffs on Japanese goods, coupled with a firmer yen on the back of higher interest rates, would be a "double whammy" for the nation's all-important export-oriented industries. The survey was conducted by Nikkei Research for Reuters from May 7-16. Nikkei Research reached out to 504 companies and 224 responded on condition of anonymity. On April 2, Trump imposed 10% tariffs on all countries except Canada, Mexico and China, along with higher tariff rates for many big trading partners, including Japan, which faces a 24% tariff rate starting in July unless it can negotiate a deal with the United States. Washington has also imposed 25% levies on cars, steel and aluminium, dealing a huge blow to Japan's economy, which relies heavily on automobile exports to the United States. Among those respondents who want the BOJ to carry on with rate increases, 42% picked the last quarter of 2025 as desirable timing for the next hike, while 36% chose July-September this year. A separate Reuters poll showed last week that most economists expected the BOJ to hold interest rates through September as it pauses to assess the effects of the U.S. tariffs. On U.S. tariffs' earnings impact, 9% of respondents expect a significant negative effect and 54% anticipate a moderate adverse impact, while 34% see little unfavourable effect, the survey showed. No company expected a positive impact. "We expect a drop in exports of cars made in Japan to the United States, and our sales to the auto industry will likely fall as well," a manager at a chemical company said. Asked how they would respond to the tariff-related downside risks to earnings, more than half of respondents said they planned to pass on the added costs to consumers. However, despite the widely anticipated earnings impact of the Trump tariffs, most Japanese companies are determined to stick to their plans to raise wages amid chronic labour shortages. About 83% of respondents intend not to let the new U.S. tariffs affect their wage hike plans, the survey showed. "We need to raise wages regardless of U.S. policies. Otherwise, we cannot obtain human resources," an official at a machinery maker said. Japanese companies have agreed to raise pay by 5.32% this year, the fifth tally of annual labour talk results from the country's largest union umbrella group, Rengo, showed this month, staying on course to deliver the biggest pay hike in 34 years. The Reuters survey also showed nearly half of respondents saw the yen trading between 140-145 yen to the dollar in the current business year to March 2026, while 26% expected the Japanese currency to be weaker at 145 to 150 yen. On Wednesday, the yen was trading around 144 yen to the dollar.
