Japanese shares slide
The Nikkei 225 Index of shares closed 1.25% lower, its steepest one-day slide since June 2. At one point, the gauge was down as much as 2.3%.
The broader Topix declined 1.1%, with a sub-index of bank stocks sliding 3.2%.
US shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July, while June's job growth was revised sharply lower, and a new round of punishing tariffs cast a shadow on global trade.
Tariffs that US President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, US Trade Representative Jamieson Greer said.
The tariffs include a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland.
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Business Recorder
5 minutes ago
- Business Recorder
Trump again threatens India with harsh tariffs over Russian oil purchases
WASHINGTON: U.S. President Donald Trump again threatened on Monday to raise tariffs on goods from India over its Russian oil purchases, while New Delhi called his attack 'unjustified' and vowed to protect its economic interests, deepening the trade rift between the two countries. In a social media post, Trump wrote, 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine.' 'Because of this, I will be substantially raising the Tariff paid by India to the USA,' he added. A spokesperson for India's foreign ministry said in response that India will 'take all necessary measures to safeguard its national interests and economic security.' 'The targeting of India is unjustified and unreasonable,' the spokesperson added. Trump has said that from Friday he will impose new sanctions on Russia as well as on countries that buy its energy exports, unless Moscow takes steps to end its 3-1/2 year war with Ukraine, opens new tab. Russian President Vladimir Putin has shown no public sign of altering his stance despite the deadline. Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats. India has faced pressure from the West to distance itself from Moscow since Russia invaded Ukraine in early 2022. New Delhi has resisted, citing its longstanding ties with Russia and economic needs, opens new tab. Trump had already in July announced 25% tariffs on Indian imports, and U.S. officials have cited a range of geopolitical issues standing in the way of a U.S.-India trade accord. Trump has also cast the wider BRICS group of developing nations as hostile to the United States. India's biggest refiner buys US, Middle East crude as Trump slams Russia purchases Those nations have dismissed his accusation, saying the group promotes the interests of its members and of developing countries at large. Crude buyer India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. India began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian spokesperson said, calling it a 'necessity compelled by global market situation.' The spokesperson also noted the West's, particularly the European Union's, bilateral trade with Russia: 'It is revealing that the very nations criticizing India are themselves indulging in trade with Russia.' Despite the Indian government's defiance, the country's main refiners paused buying Russian oil last week, sources told Reuters. Discounts to other suppliers narrowed after Trump threatened hefty tariffs on countries that make any such purchases. Indian government officials denied any policy change. The country's largest refiner, Indian Oil Corp, has bought 7 million barrels of crude from the United States, Canada and the Middle East, four trade sources told Reuters on Monday. India also has been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media in May, which halted days of hostilities between the nuclear-armed neighbors. The unpredictability of the Trump administration creates a challenge for Delhi, said Richard Rossow, head of the India program at Washington's Center for Strategic and International Studies. 'India's continued energy and defense purchases from Russia presents a larger challenge, where India does not feel it can predict how the Trump administration will approach Russia from month to month,' he said.
Business Recorder
35 minutes ago
- Business Recorder
Shares in Asia rally, dollar lower against yen on Fed rate cut bets
TOKYO: Shares in Asia rose for a second consecutive session and the U.S. dollar held most of its losses on Tuesday as investors increased bets the Federal Reserve will act to prop up the world's largest economy. U.S. shares rallied on Monday on generally positive earnings reports and increasing bets for a September rate cut from the Fed after disappointing jobs data on Friday. Oil remained lower after output increases by OPEC+ and threats by U.S. President Donald Trump to raise tariffs on India over its Russian petroleum purchases. Japan's Nikkei rallied, with data showing a jump in the nation's service sector activity in July. 'There are signs of weakness in parts of the U.S. economy, that plays to the view that maybe not in September, but certainly this year that the Fed's still on course to ease potentially twice,' said Rodrigo Catril, senior currency strategist at National Australia Bank. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6% in early trade. The Nikkei climbed 0.5% after falling by the most in two months on Monday. The dollar dropped 0.1% to 146.96 yen . The euro was unchanged at $1.1572, while the dollar index , which tracks the greenback against a basket of major peers, edged up 0.1% after a two-day slide. Odds for a September rate cut now stand at about 94%, according to CME Fedwatch, from a 63% chance seen on July 28. Market participants see at least two quarter-point cuts by the end of this year. The disappointing nonfarm payrolls data on Friday added to the case for a cut by the Fed, and took on another layer of drama with Trump's decision to fire the head of labor statistics responsible for the figures. News that Trump would get to fill a governorship position at the Fed early also added to worries about politicisation of interest rate policy. Trump again threatened to raise tariffs on goods from India from the 25% level announced last month, over its Russian oil purchases, while New Delhi called his attack 'unjustified' and vowed to protect its economic interests. Second-quarter U.S. earnings season is winding down, but investors are still looking forward to reports this week from companies including Walt Disney and Caterpillar. Tech heavyweights Nvidia, Alphabet and Meta surged overnight, and Palantir Technologies raised its revenue forecast for the second time this year on expectations of sustained demand for its artificial intelligence services. 'Company earnings announcements continue to spur market moves,' Moomoo Australia market strategist Michael McCarthy said in a note. In Japan, the S&P Global final services purchasing managers' index climbed to 53.6 in July from 51.7 in June, marking the strongest expansion since February. Oil prices were little changed after three days of declines on mounting oversupply concerns, with the potential for more Russian supply disruptions providing support. Brent crude futures were flat at $68.76 per barrel, while U.S. crude futures dipped 0.02% to $66.28 a barrel. Spot gold was slightly higher at $3,381.4 per ounce. The pan-region Euro Stoxx 50 futures were up 0.2%, while German DAX futures were up 0.3% and FTSE futures rose 0.4%. U.S. stock futures, the S&P 500 e-minis , were up 0.2%. Bitcoin was little changed at $114,866.06 after a two-day rally.
Business Recorder
35 minutes ago
- Business Recorder
Indian rupee at risk of lifetime low after Trump ups tariff threat on India
MUMBAI: The Indian rupee may drop past 88 to the U.S. dollar to an all-time low on Tuesday after U.S. President Donald Trump threatened steeper tariffs on Indian goods, worsening fragile sentiment and stoking concerns of more foreign outflows. The 1-month non-deliverable forward indicated the rupee will open in the 88.00 to 88.04 range versus the U.S. dollar, down from 87.6550 on Monday. The rupee's previous record low was 87.95, touched in February. Trump again threatened to substantially raise tariffs on Indian goods, citing India's continued purchases and resale of Russian oil. India's foreign ministry responded, saying it will take all necessary steps to protect its national interests and economic security. 'Whether these barrage of comments are mainly negotiating tactics against India to partly prod for changes in the Russia-Ukraine war remains to be seen,' MUFG Bank said in a note. Trump had already imposed higher-than-expected 25% tariffs on Indian imports last week, while U.S. officials continue to highlight multiple hurdles that are delaying a trade deal with India. Sentiment on the rupee has been fragile due to the hefty tariffs on Indian goods. On Monday, the pressure intensified, with the rupee falling despite the dollar weakening broadly. On Monday, the rupee failed to hold on to an intraday recovery to near 87.20. 'Today was already shaping up to be a difficult session (for the rupee), and Trump's latest tariff threat only amplified the pressure,' a senior trader at a private bank said. 'I'd fully expect the Reserve Bank of India to step in — they won't want to let the rupee depreciate unchecked, especially in the face of U.S. rhetoric.' He warned that overseas outflows from Indian equities may gather pace in response to rising trade tensions with the U.S.
