Asian shares start cautiously, dollar edges down
had a cautious open Tuesday as investors awaited fresh
trade news
that may define the appetite for
US assets
.
The MSCI Asia Pacific Index opened flat with marginal declines in Japan and South Korea. The
dollar
edged down in early Asian trade with a gauge of the greenback's strength hovering near its lowest level in almost two years on weak demand for US assets. The yield on the 10-year US Treasury fell two basis points while yields on Japan's
40-year
sovereign slumped ahead of a bond auction.
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Contracts for the S&P 500 and Nasdaq 100 jumped over 1%, holding their gains from a Monday holiday, after the European Union agreed to accelerate trade negotiations with the US. Markets were closed in the US for a holiday Monday.
Tariff headlines are once again dominating the market and investors are closely watching how President Donald Trump's administration is dealing with Japan and India after talks with China earlier this month boosted optimism. Trade tensions and concerns of US fiscal position has weakened demand for US assets and are showing up the most in the dollar.
'Any further
tariff news
could inject more volatility into currency markets and pull the dollar down,' Kristina Clifton, a senior economist and currency strategist at Commonwealth Bank of Australia wrote in note.
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Bloomberg's dollar spot index was track for its lowest close since July 2023, while the greenback is at or approaching key levels against a host of currencies including the euro, British pound, yen and Swiss franc.
In Japan, yields on Japanese super-long bonds fell ahead of an auction Wednesday that is expected to test demand following a recent sale that sent jitters through global markets.
Yields on 40-year and 30-year maturities slid 10 basis points in Tokyo on Tuesday, adding to drops in recent days. These moves followed sharp gains in yields to record highs last week.
Elsewhere, China's central bank asked its major lenders to raise the share of yuan when facilitating cross-border trade, in its latest push for the use of the currency as the world grapples with the onslaught of tariffs by the US. Trump's plan to bring more factories back to the US has President Xi Jinping's government also considering options to boost production of high-end technological goods.
There will be close attention on the nation's electric vehicle sector, after BYD Co. introduced sweeping price cuts. Shares of China's No. 1 selling car brand tumbled 8.6% in Hong Kong on Monday, sending shares of peers Li Auto Inc., Great Wall Motor Co. and Geely Automobile Holdings Ltd. also down amid investor concern about intensifying competition in the sector.
A key event this week will be
Nvidia Corp.
's results on Wednesday. The chip-making giant is seen as a bellwether for so called growth stocks and the sustainability of the artificial intelligence boom. Its outlook will be crucial given macro risks and tariff uncertainty.
Investors are also gearing up for the Federal Reserve's preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1% based on consensus expectations.
In commodities, oil slipped on Tuesday after fluctuating in the previous session as the market weighed easing trade tensions against the outlook for rising OPEC+ supply. Gold traded steady.
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Business Standard
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- Business Standard
Trump's Vietnam deal signals China tariffs unlikely to ease further
Chinese goods face 55% tariffs, likely through August. Under the Vietnam deal, the US will impose 20% tariffs on Vietnamese exports and 40% on transshipped goods to curb Chinese tariff evasion Bloomberg President Donald Trump's new trade deal with Vietnam sends a clear signal about where US tariffs on Chinese goods might ultimately land, as talks between Washington and Beijing continue following their recent truce. Chinese goods currently face tariffs of around 55 per cent, a level expected to remain through August. But under the latest Vietnam agreement, the US will slap a 20 per cent tariff on Vietnamese exports to the US and a steeper 40 per cent levy on goods deemed to be transshipped — the latter targeting a well-worn backdoor used by Chinese exporters since the first China-US trade war to dodge American tariffs. By closing the loopholes, the Trump administration is signaling what any future deal with China might look like. The 40 per cent tariff on transshipped goods suggests that even if tariffs on China are eventually reduced, they're unlikely to fall significantly below that threshold. 'The 40 per cent figure in the Vietnam deal might reflect a broader conviction in the Trump administration about the appropriate tariff level on China, which would be similarly reflected in other bilateral deals,' said Gabriel Wildau, a managing director at Teneo focused on political risk analysis in China. 'However, I am skeptical that Trump has a specific red line for minimum tariffs on China.' Beijing and Washington reached a trade framework last month following talks in London, which remains in effect through mid-August. As part of the deal, China agreed to resume shipments of rare earths — key inputs for wind turbines, electric vehicles and military hardware. In return, the US offered to ease some export restrictions on ethane, chip-design software and jet engine components. US tariffs on Chinese goods have been cut back to around 55 per cent, down from as high as 145 per cent in early April. But 20 per cent tariffs tied to fentanyl remain in place. Beijing has since tightened controls on two precursor chemicals used to make the drug — one of the few obvious avenues it has to win further tariff relief. 'The 20 per cent is really the focal point where all the attention is centered right now,' said Christopher Beddor, deputy China research director at Gavekal Research. 'The thinking is that the Chinese government is very willing to do a deal on something related to fentanyl. They've been telegraphing that for months.'' Still, those efforts are unlikely to bring Chinese tariffs below the 40 per cent rate now applied to Vietnam. If China's duties were to fall to 35 per cent, for instance, it would restore a competitive edge to China and encourage firms to shift operations back, running counter to the Trump administration's broader objectives. 'If China ends up with a lower tariff level than Vietnam that would certainly shift the competitiveness calculations somewhat, but keep in mind that moving production facilities is not as easy as flipping a light switch on and off,' said Stephen Olson, a former US trade negotiator now with the ISEAS-Yusof Ishak Institute. 'From the perspective of Chinese companies, there is zero confidence that once Trump sets a tariff level that it will remain at that level.' For now, there are signs both sides are following through on the terms of the London agreement and displaying signs of goodwill. The Trump administration has lifted recent export license requirements for chip design software sales in China, and approved US ethane exports to China without additional approvals. Treasury Secretary Scott Bessent said Chinese rare earth magnets are flowing, although they haven't yet bounced back to the levels seen before China imposed export curbs in early April. The US remains hopeful that China will further ease restrictions on those exports after their London deal, he said in an interview Tuesday on Fox News. Meanwhile, a senior Chinese official on Thursday delivered one of Beijing's most positive messages about his nation's ties with the US in weeks. Liu Jianchao, head of the Communist Party's International Department, said at the World Peace Forum that he was 'optimistic' about future relations. China is keenly aware of what it's gained from China-US cooperation,' Liu said 'Our cooperation is mutually beneficial. The act of putting up barriers will hurt the other and ourselves as well.' Other negotiations Apart from Vietnam, Beijing is growing increasingly cautious about US efforts to strike trade deals that could isolate China. With a July 9 deadline approaching, when Trump's higher 'reciprocal' tariffs are set to take effect, American officials are ramping up negotiations with key partners in Asia and Europe. 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'If such a situation arises, China will firmly strike back to protect its own legitimate rights and interests,' she added, repeating a familiar warning. Olson cautioned against relying too much on the US-Vietnam trade agreement as a blueprint for assessing Washington's approach to China. The stakes in US-China negotiations are significantly higher, shaped by strategic rivalry and a wider set of geopolitical considerations. There is also much less of a power discrepancy in the US-China discussions. 'One important takeaway for China from both the Vietnam deal and the previous deal with the UK is that the US intends to use these negotiations to apply pressure on China,' Olson said. 'This could lead China to a much more sober assessment of what it might be possible to achieve with the US in these negotiations.'
Time of India
20 minutes ago
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CUET UG 2025 results to be announced today on cuet.nta.nic.in for over 13 lakh students
CUET UG 2025 scores to guide admissions in 243 universities including DU and JNU CUET UG 2025 results: The results of the Common University Entrance Test for undergraduate admissions (CUET UG) 2025 are expected to be released today on the official website – More than 13 lakh students across India are awaiting their results, which will determine their eligibility for admission to numerous undergraduate courses in over 240 universities. The CUET UG 2025 is a centralised entrance examination conducted by the National Testing Agency (NTA) to streamline undergraduate admissions across various institutions. This year, 243 universities—including central, state, private, deemed, and other government institutions—will use CUET scores for counselling and admissions. Among the top institutions accepting CUET UG 2025 scores are the University of Delhi, Banaras Hindu University, Jawaharlal Nehru University, and Aligarh Muslim University. CUET UG 2025 to follow normalisation for fairness Due to the large number of applicants, the CUET UG 2025 was held in multiple shifts using different sets of question papers. To ensure fairness, NTA will apply a normalisation method based on percentiles. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Each candidate's performance will be assessed in relation to their peers from the same shift, and all results will be compiled into a common percentile-based ranking. The exam covered 37 subjects, including 13 languages, 23 domain-specific subjects, and one general aptitude test. This marked a significant change from the previous year when students had more flexibility in selecting papers. In CUET UG 2025, candidates were limited to choosing a maximum of five papers, regardless of their Class 12 subject combinations. Exam format revised and cities reduced This year also saw changes in the examination pattern and logistics. All papers were conducted in computer-based test (CBT) mode, with 50 mandatory questions in each paper. The number of exam centres was also reduced from 354 cities last year to 285 cities across India. These adjustments aimed to improve operational efficiency and reduce logistical challenges faced during the examination. Delayed subject papers included in results The final CUET UG 2025 results will include the accountancy/book keeping paper and the Tamil and Urdu language papers, which were initially postponed and later rescheduled by NTA. This ensures that no student is left behind due to administrative delays and that all subject scores are considered in the final rankings. Limited use of CUET scores in certain institutions While CUET UG is being adopted widely, a few institutions continue to use alternative admission methods. For instance, Jamia Millia Islamia (JMI) only accepts CUET scores for select undergraduate courses. Programmes such as B.A. (Hons.) Political Science, BBA, and BSc Mathematics at JMI still rely on other entrance examinations or Class 12 results for admission. Students are advised to regularly check the official website for updates and detailed scorecards. TOI Education is on WhatsApp now. Follow us here. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
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First Post
21 minutes ago
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Rubio delays Japan, S Korea visits to focus on Israel-Hamas ceasefire ahead of Netanyahu's White House visit
Instead of his planned trip to the Asian nations, Rubio will now attend a meeting between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, slated for Monday, as pressure mounts on Israel and Hamas to reach a ceasefire in Gaza read more US Secretary of State Marco Rubio attends a Senate Foreign Relations Committee hearing on US President Donald Trump's State Department budget request for the Department of State, on Capitol Hill in Washington, DC, US, on Tuesday. Reuters file US State Secretary Marco Rubio has postponed his upcoming visits to Japan and South Korea to focus on the Israel-Hamas war as Washington draws up plans for a ceasefire in Gaza. According to a report by Nikkei, Rubio, who was supposed to kick-start his Asia tour from next week by travelling to Japan, has informed the governments in Tokyo and Seoul that his trips will be pushed back. During his visit to Japan, Rubio was scheduled to meet with Prime Minister Shigeru Ishiba and Foreign Minister Takeshi Iwaya. Discussions were expected to cover US tariff policies, developments in West Asia, and regional issues involving China, Russia, and North Korea. STORY CONTINUES BELOW THIS AD The development comes after the US cast doubt on reaching a trade deal with Japan and South Korea ahead of the expiration of a pause on retaliatory tariffs. Why has the tour been pushed back? Instead of his planned trip to the Asian nations, Rubio will now attend a meeting between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, slated for Monday, as pressure mounts on Israel and Hamas to reach a ceasefire in Gaza. Sources told Nikkei that top State Department officials decided to cancel the meeting during a discussion held on Wednesday. Meanwhile, efforts toward securing a temporary ceasefire in Gaza appear to be gaining traction, with the potential for Hamas to release 10 living hostages and the remains of 18 others over a 60-day period. While two State Department officials have confirmed the cancellation of Rubio's trip to Japan and South Korea, he is still expected to visit Malaysia for the ASEAN Foreign Ministers' Meeting on July 10 and July 11. Is Asia not a priority for Trump? Derek Grossman, a professor of international relations at the University of Southern California, said, 'The Trump administration is leaving key US allies, Japan and South Korea, hanging out to dry when some shoring up of ties is needed, especially with ongoing trade tariffs and whispers that Washington plans to withdraw troops from bases in these allied nations.' Trump's foreign policy had been shifting towards transactional diplomacy, economic deals, and recalibrating alliances away from costly military entanglements in West Asia, looking to Gulf states for security and economic partnerships instead of traditional commitments to Israel. The administration's new focus on West Asian crises undermines its ability to prioritise Asia, particularly efforts to deter China and reinforce alliances in the Indo-Pacific. STORY CONTINUES BELOW THIS AD
