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Reuters
35 minutes ago
- Automotive
- Reuters
Bank of Korea sees auto, steel, chip exports falling when tariffs hit
SEOUL, May 29 (Reuters) - South Korea's exports of automobiles, steel and semiconductors are expected to fall as the impact of U.S. President Donald Trump's tariffs take effect later this year, the central bank said on Thursday. Weaker car exports will drag down South Korea's exports by 0.6%, and U.S.-bound exports by 4.0%, posing the biggest risk, the Bank of Korea projected in a report, adding automakers so far have responded to 25% U.S. tariffs with existing stocks. Steel products are also estimated to lower the country's exports by 0.3%, with a decline of 1.4% in U.S.-bound shipments, as 25% tariffs on the sector start to weigh from the third quarter after a time lag in shipments, the central bank said. The BOK saw semiconductors lowering the country's exports by 0.2%, assuming 10% U.S. duties on the sector, although there have so far been positive effects from advance orders ahead of Trump's planned tariffs.
Reuters
39 minutes ago
- Business
- Reuters
Nepal takes game to new heights with T20 league
May 29 (Reuters) - Glamorgan all-rounder Dan Douthwaite was not alone among the foreign players in being unsure what to expect when he headed to the Himalayas to take part in the inaugural Nepal Premier League (NPL) late last year. Taking up a playing contract in the mountainous nation of 30 million was always going to be a novel challenge for the Englishman, not least because the Twenty20 league was staged at a ground some 1,350 metres above sea level. "I thought I was going to be constantly out of breath or struggling, but it wasn't actually as bad as I thought it was going to be," the 28-year-old recalled of his time playing for the Kathmandu Gurkhas. "I think I noticed it more so with sixes. When they got the ball it absolutely went miles. A lot of balls ... kept going and going and going. "When you think you've hit one straight up and it's a 70-metre six." Apart from the extra flight of the ball at the Tribhuvan University International Cricket Ground near Kathmandu, Douthwaite's other big takeaway from the experience was the enthusiasm of the Nepali fans. "Cricket in Nepal is probably like the Premier League in England ... there's a kind of almost Indian cricket feel about the way people appreciate and love the game," he told Reuters. This was the third attempt by Nepal, which became an ICC associate member in 1996 and has qualified for the T20 World Cup twice, to follow in the path of the Indian Premier League (IPL) by launching its own Twenty20 league. The NPL hopes the passion of the fans, combined with the country's unique geography and society, will carve out a niche in a landscape dominated by the likes of the IPL and Australia's Big Bash League. "We're rich in terms of nature," said Sandesh Katwal, the chief executive of the Gurkhas, one of eight NPL franchises. "It's a beautiful country and we're a friendly, welcoming people. The weather, the hospitality suits international players." Former England batting all-rounder and IPL veteran Ravi Bopara, who turned out for Chitwan Rhinos, said it was a great experience, even if he turned down the offer of a helicopter trip to Everest Base Camp. A modest budget meant the NPL could not attract the really big names in the sport. All eight NPL franchises fetched a combined price of under 169 million Nepali rupees ($1.23 million) at an auction held last September. Prize money for the champions, Janakpur Bolts, was around $81,000. By contrast, India's Rishabh Pant, the highest-paid player in the IPL, commanded over $3 million in the league's player auction for the 2025 edition. A rushed first season also made it difficult to recruit international players, Katwal said. "Everything happened within a one to two-month period ... most international players were already occupied. Many didn't know about this tournament," he added. "Since Christmas was near, many overseas players were in a hurry to return. From the second season I think we can plan to start a bit earlier, October or November." Nevertheless, the NPL proved to be an effective proving ground for Nepal's domestic talent, Bopara said. "There was a group of players who were full of potential but lacked experience," he added. Katwal said he hoped the NPL would provide that valuable competitive experience, as the IPL has done for young Indian talents. "It's a dream come true for Nepali players ... sharing practice sessions with the foreign players, they definitely learned a lot. We also had coaches from India, Sri Lanka, England and elsewhere," he said. "Since the IPL has started, you can see young players getting opportunities and it has paid off. The NPL is also an opportunity for Nepali players, a starting point."
Reuters
an hour ago
- Business
- Reuters
Bullish bets surge on Asian currencies as US-China thaw, trade deals rattle dollar
May 29 (Reuters) - Investors piled up bullish bets on Asian currencies, including the yuan, as easing U.S.-China tariff tensions, new trade deals and a growing unease with U.S. policies prompted them to pull out of dollar assets, a Reuters poll showed on Thursday. Investors sought long positions across the board, with those in the Taiwanese dollar and Philippine peso climbing to their highest since the end of 2020, according to the fortnightly poll of 10 respondents. All responses were collected before a U.S. trade court on Wednesday blocked President Donald Trump's sweeping tariffs, ruling he overstepped his authority by imposing duties on countries with trade surpluses against the United States. Long bets on the Chinese yuan were the highest since October last year - a month before Donald Trump was re-elected as the President of the United States - buoyed by signs of renewed dialogue on trade between Washington and Beijing after months of posturing and threats. The yuan rose 1% this month. Trump's tariff flip-flops and the mounting worries over a ballooning U.S. deficit have dented confidence in American assets, piling pressure on the dollar and driving investors toward Asian currencies. "Asian currencies are likely to stay firm against the U.S. dollar (USD) due to diversification outflows from USD assets into Asia, with investors being concerned over U.S. trade policy and its fiscal trajectory given proposed tax cuts", said Wei Liang Chang, market strategist at DBS Bank. Southeast Asian leaders have also reached an understanding that any bilateral agreements they might strike with the United States on trade tariffs would not harm the economies of fellow members. Parisha Saimbi, an FX strategist at BNP Paribas, said Asian currencies would remain somewhat supported, helped by the U.S.-China de-escalation and bilateral trade deals being reached. Meanwhile, the Taiwanese dollar has gained more than 6% in May to record its best ever monthly gain. Taiwan's president dismissed "false" claims of currency talks with Washington earlier in May, after the Taiwan dollar spiked on speculation the U.S. had pushed for its appreciation, fuelling market jitters over potential FX policy shifts. The South Korean won has also jumped more than 4% this month amid a broad dollar selloff, with Seoul officials confirming currency policy was on the table during recent talks with U.S. counterparts in Milan, fuelling speculation of joint FX moves. Bullish bets returned to the Indonesian rupiah for the first time since October 2024, as some investors looked past ongoing fiscal concerns and bet on policy direction stabilising. Elsewhere, bullish bets on the Malaysian ringgit and Thai baht rose to their strongest levels since October 2024. The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht. The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars. The figures include positions held through non-deliverable forwards (NDFs). The survey findings are provided below (positions in U.S. dollar versus each currency):
Reuters
an hour ago
- Business
- Reuters
EUROPE Markets hope Trump tariffs stay 'unlawful'
May 29 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole Who knew the three judges at the rather obscure United States Court of International Trade had the power to spark a rally in global stock markets and shove the dollar higher against its safe-haven peers? Early in the Asian trading day, news broke the court had declared President Donald Trump's April 2 tariffs to be "invalid as contrary to law", sending risk assets surging. And this wasn't a narrow judgment. All three judges - one appointed by Trump, one by Obama and one by Reagan - agreed Trump had overstepped his authority by declaring an emergency to slap tariffs on the rest of the world. It's worth a read, opens new tab if you have the time. The White House quickly said it would appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, and will surely go to the Supreme Court if needed. Higher courts are usually reluctant to overturn unanimous rulings like this one, so this could be an extended process. In the meantime, the tariffs are up in the air and any country negotiating with the White House on trade will be tempted to stall. The chance of quick "beautiful deals" is out the window. With Trump's ability to arbitrarily declare emergencies in doubt, investors are hoping policy-making will be a little less chaotic. S&P 500 futures jumped 1.6% while Nasdaq futures are up around 2%, having already got a boost from Nvidia earnings guidance that lifted its shares 4.4% after the bell. Most Asian markets and European stock futures are up 1% or more, while the dollar gained on the Swiss franc, euro and yen. Treasury yields are up just a little, and Fed fund futures have only slightly pared back expectations for rate cuts, given a lasting block of the April 2 tariffs has mixed implications. On the one hand it would brighten the economic outlook and greatly lessen the risk of recession, but it would also mute the coming inflationary pulse. And it was inflation that was very much on the minds of Fed officials in their last meeting. Oh, and in secondary news it seems Elon Musk is no longer on the government payroll. Key developments that could influence markets on Thursday: - US second reading on GDP, weekly jobless claims - Bank of England Gov Bailey speaks - Fed speakers include Bank of Richmond President Barkin, Fed Bank of Chicago head Goolsbee, Bank of San Francisco head May and Bank of Dallas head Logan.
Reuters
an hour ago
- Automotive
- Reuters
Toyota global output, sales rise for the fourth straight month in April
TOKYO, May 29 (Reuters) - Toyota (7203.T), opens new tab said on Thursday its worldwide output and sales rose for a fourth consecutive month in April on strong demand for hybrid vehicles and rush buying in the United States over U.S. President Donald Trump's import tariffs. The world's biggest automaker's global sales for April increased 10% year-on-year to 876,864 vehicles, with U.S. sales climbing just as much, fuelled by strong demand, including rush-buying over the tariffs, according to Toyota. Hybrid vehicle sales made up about 44% of Toyota's total worldwide sales for the first four months of the year. In April, the Japanese company's global vehicle production rose 8% year-on-year to 814,787 vehicles, lifted by higher production in Japan and markets in North America, South America and China. The production and sales figures include its luxury Lexus brand.
