CNA938 Rewind - Stock take today: Market wipes out rally on downbeat forecasts
Australian Prime Minister Anthony Albanese said on Tuesday (Jul 15) that "dialogue" must be at the heart of ties between Canberra and Beijing as he met with President Xi Jinping. Xi, in turn, hailed the "benefits" of improved ties between China and Australia, saying the relationship had "risen from the setbacks and turned around". Andrea Heng and Hairianto Diman assess the relationship between the two countries against the wider geopolitical context with Professor Carlyle Thayer, Emeritus Professor at the University of New South Wales Canberra, at the Australian Defence Force Academy.
CNA938 Rewind - Can China sustain its 5% GDP growth target as US tariff risks mount?
China's GDP grew 5.2 per cent in the April to June quarter from a year earlier, slowing from 5.4 per cent in the first quarter, but just ahead of analysts' expectations in a Reuters poll for a rise of 5.1 per cent. Andrea Heng and Hairianto Diman speak with Sarah Tan, Assistant Director Economist at Moody's Analytics, to examine the factors that have contributed to this unexpected growth and whether China would be able to maintain its 5% GDP growth target in the face of a trade war.
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CNA
an hour ago
- CNA
Asian shares follow Wall Street higher, yen weak ahead of Japan vote
SYDNEY :Asian shares tracked Wall Street higher on Friday as still-strong U.S. economic data and robust corporate earnings offset tariff worries, while the yen headed toward a second successive week of loss ahead of Japan's upper house election. Overnight, the S&P 500 and the Nasdaq again closed at record highs as U.S. data including retail sales and jobless claims beat forecasts, indicating a modest improvement in the economy that should give the Federal Reserve time to gauge the inflation impact from higher U.S. tariffs. Streaming giant Netflix beat Wall Street's lofty expectations for second-quarter earnings in part due to a weaker U.S. dollar. Its share price, however, fell 1.8 per cent in after-hours trading, with analysts saying much of the growth had already been priced in. European share markets are set for a higher open, with EUROSTOXX 50 futures 0.4 per cent higher. Wall Street futures were up 0.2 per cent. On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent to its highest since late 2021, bringing the weekly gain to 1.5 per cent. Japan's Nikkei, however, slipped 0.2 per cent, and the yen slipped 0.1 per cent to 148.77 per dollar and was down about 0.7 per cent this week after polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed beyond the central bank's 2 per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Chinese blue-chips rose 0.4 per cent while Hong Kong's Hang Seng index gained 0.8 per cent. The Tapei-listed shares of TSMC, the world's main producer of advanced AI chips, rose 1.3 per cent after posting record quarterly profit, though it said future income might be affected by U.S. tariffs. In the foreign exchange market, U.S. the dollar was on the back foot on Friday, having bounced 0.3 per cent overnight against major peers on the strong economic data. For the week, it is headed for a second successive gain of 0.7 per cent, bouncing further from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. Fed funds futures imply next to no chance of a move on July 30, while a September rate cut is just about 62 per cent priced in. Treasury yields were slightly lower in Asia. Benchmark 10-year U.S. Treasury yields slipped 3 basis points to 4.4375 per cent, having moved little overnight. Two-year yields also edged 2 bps lower to 3.8944 per cent. Oil prices extended gains on Friday, after drones strikes on Iraqi Kurdistan oil fields fuelled supply concerns. U.S. crude rose 0.4 per cent to $67.79 per barrel and Brent also rose 0.4 per cent to $69.77 a barrel. They, however, lost about 0.7 per cent for the week.
CNA
an hour ago
- CNA
China mulls economy-boosting measures to counter 'severe situation'
Asked specifically about China's reliance on exports, Wang suggested the government was preparing policies to "further stimulate the momentum of our consumption development". "China's economy is improving, and the long-term fundamentals have not changed, the consumption market's characteristics of great potential, strong resilience and vitality have not changed," he said. Wang also namechecked Beijing-based toymaker Pop Mart, whose Labubu monster dolls have become a must-have item internationally, adorning the handbags of celebrities such as Rihanna and Dua Lipa. "We are also promoting new forms of consumption ... for example, Pop Mart, these kinds of new trends, new fashions and styles ... the Labubu phenomenon has swept the world," he said. US DECOUPLING "IMPOSSIBLE" Beijing is battling to shift towards a growth model propelled more by domestic demand than the traditional key drivers of infrastructure investment, manufacturing and exports. That desired transformation has become more urgent since Donald Trump came to office. The US president has imposed tariffs on China and most other major trading partners, upending trade norms and endangering Beijing's exports at a time it needs them more than ever to stimulate economic activity. The two superpowers have sought to de-escalate their row after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty. Wang said on Friday that despite "storms and rain", Washington remained an important trading partner. Even though China-US trade has declined proportionally for each country, overall bilateral trade has remained stable, Wang said. The firm economic and popular basis for US-China cooperation "makes artificial decoupling and severing supply chains impossible", he said. Yet an inconsistent tune has "severely impacted and disrupted normal trade cooperation between China and the US".
CNA
2 hours ago
- CNA
Indian Apple reseller Ample to grow revenue by a third as it expands presence, portfolio, CEO says
Indian Apple reseller Ample is banking on store expansion and adding more brands and clients to achieve 35 per cent revenue growth in fiscal year 2026, its chief executive said. The Bengaluru-based firm, which supplies tech products such as Apple computers to over 1,500 clients including SAP, Broadcom, Infosys, and Wipro, operates more than 120 stores across India. Nearly 50 of these sell Apple products, while others showcase brands like Under Armour and ASICS. The firm plans to expand its footprint to approximately 175 stores across brands within three years, Ample founder and CEO Rajesh Narang said on Monday, though he declined to specify a target for Apple-only stores. Ample's revenue stood at 17 billion rupees ($197.33 million) for the fiscal year ended March 31. The company is focusing on partnerships with global capability centers, hubs that manage operations, finance, and research for large multinational firms, to drive growth, Narang added. Apple, which reported nearly $8 billion in sales in India for the year through March 2024, operates its own stores in New Delhi and Mumbai. Other resellers in the market include Aptronix and iPlanet. While Apple also plans to expand its presence in India, Narang said that would benefit partners like Ample, as the market tends to grow with the brand's presence. The firm plans to list on stock exchanges within five years to fund its growth strategy. "With our growth ambition, there will be a need for capital," Narang said.
