Asian shares are mixed as Trump's tariffs deadline looms
U.S. futures edged higher and oil prices were little changed.
Shares fell in Japan, hit by jitters over a lack of progress in trade talks with the U.S., but they recovered much of their lost ground, trading 0.5% lower at 39,790.85.
Stephen Innes, managing partner at SPI Asset Management, pointed to President Donald Trump's declaration that there will be no extension of his tariff pause, which is just a week away from ending.
'The message was blunt: if Tokyo won't yield, it will pay. Tariffs of 30%, 35% or 'whatever number we determine' are now openly back on the table,' he said. 'The negotiating table just became a pressure cooker.'
Hong Kong's Hang Seng advanced 0.8% to 24,271.15 and the Shanghai Composite index edged 0.1% lower to 3,453.89.
South Korea's KOSPI fell 0.6% to 3,072.63 after the government reported that inflation rose in June.
Australia's S&P ASX 200 climbed 0.8% to 8,605.40. Taiwan's Taiex edged up 0.1% while the Sensex in India lost 0.2%.
On Tuesday, the S&P 500 dipped 0.1% to 6,198.01 for its first loss in four days. The Dow Jones Industrial Average rose 0.9% to 44,494.94, and the Nasdaq composite fell 0.8% to 20,202.89.
Tesla tugged on the market as the relationship between its CEO, Elon Musk, and President Donald Trump soured even further. Once allies, the two have clashed recently, and Trump suggested there's potentially 'BIG MONEY TO BE SAVED' by scrutinizing subsidies, contracts or other government spending going to Musk's companies.
Tesla fell 5.3%. It has lost just over a quarter of its value so far this year, 25.5%, in large part because of Musk's and Trump's feud.
Drops for several darlings of the artificial-intelligence frenzy also weighed on the market. Nvidia's decline of 3% was the heaviest weight on the S&P 500.
But more stocks within the index rose than fell, led by several casino companies. They rallied following a report showing better-than-expected growth in overall gaming revenue in Macao, China's casino hub. Las Vegas Sands gained 8.9%, Wynn Resorts climbed 8.8% and MGM Resorts International rose 7.3%.
Automakers outside of Tesla were also strong, with General Motors up 5.7% and Ford Motor up 4.6%.
Monday Mornings
The latest local business news and a lookahead to the coming week.
The U.S. stock market has made a stunning recovery from its springtime sell-off of roughly 20%. But challenges still lie ahead for Wall Street, with one of the largest being the continued threat of Trump's tariffs.
Many of Trump's stiff proposed taxes on imports are currently on pause, and they're scheduled to kick into effect in about a week. Depending on how big they are, they could hurt the economy and worsen inflation.
Washington is also making progress on proposed cuts to tax rates and other measures that could send the U.S. government's debt spiraling higher, which could raise inflation. That in turn could mean higher interest rates, which would hurt prices for bonds, stocks and other investments.
Despite such challenges, strategists at Barclays say they see signals of euphoria among some investors. The strategists say a measure that tries to show how much 'excess optimism' is in the market is not far from the peaks seen during the 'meme stock' craze that sent GameStop to market-bending heights or to the dot-com bubble at the turn of the millennium. In other dealings early Wednesday, benchmark U.S. crude lost 8 cents to $65.37 per barrel. Brent crude, the international standard, lost 3 cents to $67.08 per barrel.
The U.S. dollar rose to 143.70 Japanese yen from 143.41 yen. The euro slid to $1.1787 from $1.1808.
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Toronto Star
an hour ago
- Toronto Star
In a country where alcohol is banned, Pakistan's top brewery is betting on soft drinks
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Winnipeg Free Press
an hour ago
- Winnipeg Free Press
In a country where alcohol is banned, Pakistan's top brewery is betting on soft drinks
RAWALPINDI, Pakistan (AP) — A pungent fug of malt and yeastiness hangs over Murree Brewery, Pakistan 's biggest and oldest producer of alcoholic drinks. The company is an outlier in a country where alcohol is outlawed for everyone except non-Muslims, who make up some 9 million people out of 241 million. Pakistan, an Islamic republic, banned booze for Muslims in the 1970s. Murree Brewery has strong financials despite the prohibition, thanks to its history, scant competition and a small, thirsty and predominantly elite consumer base. But the government exerts significant control over the sale and marketing of alcoholic beverages through red tape and high taxes, pushing brewery chairman Isphanyar Bandhara to expand the company's footprint in Pakistan's non-alcoholic drinks industry, which, although bigger, is more crowded and less lucrative. 'Even I tell my staff of about 2,200 that we cannot sit on our laurels by selling alcohol,' said Bandhara, the third generation of his family to run the 165-year-old business that was founded by the British. 'It's a restricted market, so we have to rely and focus more on the non-alcoholic side. That's where I think I would like to flex my muscles and take credit, rather than being a liquor baron.' The brewery already manufactures energy drinks, juices and malted beverages, but they are not as well known as products from big international brands. However, this part of the business is registering double-digit growth, and Bandhara wants to cash in on the country's youth bulge. Around 64% of the population is under 30. The state has a lot of say Pakistan's government determines the brewery's alcohol prices, points of sale and customer base. Last year it took $35 million from the brewery's revenue in taxes. The company cannot advertise its alcoholic beverages or expand that part of the business inside Pakistan. Online shopping is unavailable. The brewery is permitted to export beer to countries outside the Organization of Islamic Cooperation, a 57-member bloc, even though there is a 'big demand for liquor and beer' in Muslim-majority countries, Bandhara said. Meanwhile, more Pakistanis drink far more sodas and juices, with billions of dollars in sales every year. PepsiCo and Coca-Cola dominate, but there are also homegrown brands. 'The multinationals are thriving in Pakistan,' Bandhara said. 'It's a rewarding market. There might be less money (in non-alcoholic drinks), but it's more secure.' Murree Brewery's malted drinks line is packaged in a way that strongly resembles its beery counterparts. The taste, while not unpleasant, is distinctive, sweet and slightly yeasty. How to drink in Pakistan Alcohol is a niche item in Pakistan. 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'It's not expensive to buy beer,' said Faisal, a Pakistani Muslim drinker who is in his 30s and lives in the province of Sindh. He only gave his first name because he is breaking the law. 'A local beer will cost 500 rupees ($1.76), but you can save 50 rupees if you don't want it chilled.' He added: 'Beer is cheaper than coffee in Pakistan, but you only need one coffee whereas you need a lot of beer.' Minorities and the booze market Non-sanctioned alcohol drinking in Pakistan is punishable by 80 lashes of a whip, although the Federal Shariat Court deemed the penalty un-Islamic in a 2009 ruling. Alcohol is considered haram, or forbidden, in Islam. Although a sin and not a crime, scholars and religious authorities typically point to a verse in the Quran that calls intoxicants 'the work of Satan' and tells believers to avoid them. They also cite sayings of the Prophet Muhammad and the effects of alcohol. Nonetheless, stacked on pallets at Murree Brewery on a recent day were boxes of booze. The beer was heading to government-authorized retailer Pearl Continental Hotel in the eastern city of Lahore. The whiskey was going to Sindh, home to religious minorities including Hindus and Parsis. Bandhara, who is Parsi, is one of the brewery's leading tasters. Only non-Muslims can sample the company's alcoholic products. 'We can't just force someone to drink an inferior drink, so it has to be quality,' Bandhara said. 'If the German Embassy, the Chinese Embassy and a lot of European embassies are my customers for beer, I'm comfortable on my quality.' Competition from the Chinese Hundreds of Pakistani distilleries produce the intoxicating agent ethanol, which is mostly exported. Home brewers are another source of alcoholic beverages. But homemade liquor containing poisonous methanol has proved fatal, and dozens of people have died over the years. Monday Mornings The latest local business news and a lookahead to the coming week. Murree Brewery's closest competition for alcohol is the Chinese-run Hui Coastal Brewery and Distillery Limited, which began making beer in southwestern Balochistan in 2021, largely for the thousands of Chinese workers there. Nobody from Hui was available to comment. The granting of a licence to Hui in conservative Balochistan took Bandhara aback. He said he was unafraid of competition but wanted a level playing field. Decades ago, his family wanted to set up a brewery in Punjab, Pakistan's most populous province. Bandhara said authorities told the family to keep their heads down because they were in a Muslim country. 'If the Islamic lecture is for me, why was the license given to the Chinese brewery?' he asked. 'We are a liquor company, and we are the easiest to throw stones at and to criticize.'
Globe and Mail
2 hours ago
- Globe and Mail
US stocks hit another record as Tesla and Nike rally
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