logo
Asia stocks slip amid US tariff confusion, oil skids

Asia stocks slip amid US tariff confusion, oil skids

The Star10 hours ago
SYDNEY: Stock markets slipped in Asia amid much confusion as U.S. officials flagged a delay on tariffs but failed to provide any detail or paperwork on the change, while oil prices slid as OPEC+ opened the supply spigots more than expected.
The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1.
"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level," U.S. Treasury Secretary Scott Bessent told CNN.
Trump in April announced a 10% base tariff rate on most countries and higher "reciprocal" rates ranging up to 50%, with an original deadline of this Wednesday.
However, Trump also said levies could range in value from "maybe 60% or 70% tariffs to 10% and 20%", further clouding the picture.
With very few actual trade deals done, analysts had suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some.
"This renewed escalation in trade tensions comes at a time when major trade partners, including the EU, India and Japan, are believed to be at crucial stages of bilateral negotiations," analysts at ANZ said in a note.
"If reciprocal tariffs are implemented in their original form or even expanded, we believe it will intensify downside risks to U.S. growth and increase upside risks to inflation."
Investors have grown somewhat used to the uncertainty surrounding U.S. trade policy and the initial market reaction was cautious. S&P 500 futures and Nasdaq futures both eased 0.3%.
Japan's Nikkei lost 0.3%, while South Korean stocks fell 0.7%. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1%.
DOLLAR DOLDRUMS
Safe-haven bonds were better bid, with 10-year Treasury yields down almost 2 basis points at 4.326%.
Major currencies were little changed as the dollar index continued to languish near four-year lows at 96.913. The euro held at $1.1787, just off last week's top of $1.1830, while the dollar dipped to 144.38 yen.
The dollar has been undermined by investor concerns about Trump's often chaotic tariff policy and what that might do to economic growth and inflation. The same worries have kept the Federal Reserve from cutting rates and minutes of its last meeting should offer more colour on when the majority of members might resume easing.
It is a relatively quiet week for Fed speakers with only two district presidents on the docket, while economic data is also sparse. The Reserve Bank of Australia is widely expected to cut its rates by a quarter point to 3.60% at a meeting on Tuesday, the third easing this cycle, and markets imply an eventual destination for rates of 2.85% or 3.10%.
New Zealand's central bank meets on Wednesday and is likely to hold rates at 3.25%, having already slashed by 225 basis points over the past year.
In commodity markets, gold slipped 0.3% to $3,324 an ounce , though it did gain almost 2% last week as the dollar fell.
Oil prices slid anew after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by a larger-than-expected 548,000 barrels per day in August.
The group also warned that it could hike by a similar amount in September, leaving analysts with the impression it was trying to squeeze lower margin producers and particularly those pulling oil from U.S. shale.
Brent dropped 52 cents to $67.78 a barrel, while U.S. crude fell $1.01 to $65.99 per barrel. - Reuters
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Malaysia prioritises national interest in multilateral ties, says MITI
Malaysia prioritises national interest in multilateral ties, says MITI

The Sun

time28 minutes ago

  • The Sun

Malaysia prioritises national interest in multilateral ties, says MITI

KUALA LUMPUR: Malaysia's participation in multilateral platforms is driven by trade facilitation and sustainable development, with national interest as the guiding principle rather than ideological alignment, according to the Ministry of Investment, Trade and Industry (MITI). The ministry reaffirmed Malaysia's commitment to maintaining an independent foreign and economic policy. This statement follows reports of US President Donald Trump's warning that countries aligning with BRICS' 'Anti-American policies' could face an additional 10 per cent tariff. 'The United States remains one of Malaysia's key economic partners, not only through trade but also through the multi-billion-dollar American investments that have been established in Malaysia for more than 50 years,' MITI said. BRICS leaders are currently meeting in Brazil for their annual summit. Prime Minister Datuk Seri Anwar Ibrahim arrived in Brazil on Saturday to attend the 17th BRICS Leaders' Summit, invited by Brazilian President Luiz Inácio Lula da Silva. This visit marks the final leg of Anwar's official three-country tour, which included stops in Italy and France from July 1 to 7. – Bernama

Malaysia reaffirms independent trade policy amid Trump's tariff threat
Malaysia reaffirms independent trade policy amid Trump's tariff threat

The Star

time42 minutes ago

  • The Star

Malaysia reaffirms independent trade policy amid Trump's tariff threat

PETALING JAYA: Malaysia has reaffirmed its commitment to an independent foreign and economic policy, following a warning from US President Donald Trump to impose an additional 10% tariff on countries perceived to be aligned with the BRICS bloc's policies. In a statement, the Investment, Trade, and Industry Ministry said the country's engagement with any multilateral platform would focus on trade facilitation, sustainable development and national ideology. ALSO READ: Trump says nations aligning with BRICS' 'anti-American policies' will face additional 10% tariff "Our engagement with any multilateral platform is focused on trade facilitation and sustainable development, guided by national interest, not ideological alignment," it said in a statement on Monday (July 7). Earlier, Trump posted on his social media that "Any country aligning itself with the anti-American policies of Bricks, will be charged an additional 10% tariff. There will be no exceptions to this policy," Miti stressed that the US remains one of Malaysia's key economic partners, not only through trade but also through the multi-billion-dollar American investments that have been established in Malaysia for over 50 years. ALSO READ: Trump says US nears trade deals as tariff deadline delayed The US had set a July 9 deadline for countries to agree to a trade deal, but US officials now say tariffs would begin on Aug1. Trump said he would send letters to countries informing them of the proposed tariff rate if an agreement is not reached. Anwar arrived in Rio de Janeiro on Saturday to attend the Brics summit hosted by Brazil at the invitation of President Luiz Inácio Lula da Silva. Malaysia officially became a Brics partner country on Jan 1 this year.

Stocks and dollar subdued as US shifts tariff goalposts
Stocks and dollar subdued as US shifts tariff goalposts

New Straits Times

timean hour ago

  • New Straits Times

Stocks and dollar subdued as US shifts tariff goalposts

LONDON: Stocks drifted and the US dollar held near multi-year lows on Monday, in market uncertainty after US officials flagged a delay on tariffs but failed to provide specifics on the changes. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1. "President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level," US Treasury Secretary Scott Bessent told CNN. Trump in April announced a 10 per cent base tariff rate on most countries and higher "reciprocal" rates ranging up to 50 per cent, with an original deadline of this Wednesday. However, he also said levies could range in value from "maybe 60 per cent or 70 per cent", and threatened an extra 10 per cent on countries aligning themselves with the "Anti-American policies" of the BRICS group of Brazil, Russia, India and China. With very few actual trade deals done, analysts had always suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some of them. Investors have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures fell 0.30 per cent and Nasdaq futures were down 0.45 per cent in early European trading hours. Europe's benchmark STOXX index rose 0.30 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.50 per cent. The muted market reaction to the latest tariff twist showed that investors were becoming more attuned to the cycle of dramatic lurches in US trade policy under Trump, analysts said. "The market now feels as if it has a handle on which countries or types of products will be most affected," said Scott Chronert, investment strategist for Citigroup. "That doesn't mean every scenario is priced in – it's still set up for episodes of volatility. As always, people will sell first and ask questions later." OPEC+ SQUEEZE SHRUGGED OFF Safe-haven bonds were better bid, with 10-year Treasury yields down almost two basis points at 4.34 per cent. Major currencies were mixed as the dollar index nudged up 0.40 per cent to 97.29. The euro held at US$1.1726, just short of last week's top of US$1.1830, while the dollar was 0.50 per cent firmer at 145.38 yen. The export-exposed Australian dollar was again used as a proxy for trade risk and fell 0.80 per cent to US$0.6500. The US dollar has been undermined by investor concerns about Trump's often chaotic tariff policy and what that might do to economic growth and inflation. The same worries have kept the US Federal Reserve from cutting rates and minutes of its last meeting should offer more colour on when the majority of members might resume easing. It is a relatively quiet week for Fed speakers, with only two district presidents on the docket, while economic data is also sparse. The Reserve Bank of Australia is widely expected to cut its rates by a quarter point to 3.60 per cent at a meeting on Tuesday, the third easing this cycle, and markets imply an eventual destination for rates of 2.85 per cent or 3.10 per cent. New Zealand's central bank meets on Wednesday and is likely to hold rates at 3.25 per cent, having already slashed by 225 basis points over the past year. In commodity markets, gold slipped 0.90 per cent to US$3,303 an ounce, though it did gain almost two per cent last week as the dollar fell. Oil prices shrugged off the impact of output hikes from the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+. Brent reversed earlier losses and was up 0.70 per cent to US$68.77 a barrel, while US crude recovered 0.10 per cent to US$67.08 per barrel.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store