Asian shares are mixed after Wall Street sets more records for US stocks
U.S. futures and oil prices were higher ahead of trade talks in Stockholm between U.S. and Chinese officials.
European futures rose after the European Union forged a deal with the Trump administration calling for 15% tariffs on most exports to the U.S.
The agreement announced after President Donald Trump and European Commission chief Ursula von der Leyen met briefly at Trump's Turnberry golf course in Scotland staves off far higher import duties on both sides that might have sent shock waves through economies around the globe.
Tokyo's Nikkei 225 index lost 1% to 41,056.81 after doubts surfaced over what exactly the trade truce between Japan and U.S. President Donald Trump, especially the $550 billion pledge of investment in the U.S. by Japan, will entail.
Terms of the deal are still being negotiated and nothing has been formalized in writing, said an official, who insisted on anonymity to detail the terms of the talks. The official suggested the goal was for a $550 billion fund to make investments at Trump's direction.
Hong Kong's Hang Seng index gained 0.4% to 25,490.45 while the Shanghai Composite index lost 0.2% to 3,587.25. Taiwan's Taiex rose 0.3%.
CK Hutchison, a Hong Kong conglomerate that's selling ports at the Panama Canal, said it may seek a Chinese investor to join a consortium of buyers in a move that might please Beijing but could also bring more U.S. scrutiny to a geopolitically fraught deal. CK Hutchison's shares fell 0.6% on Monday in Hong Kong.
Elsewhere in Asia, South Korea's Kospi was little changed at 3,195.49, while Australia's S&P/ASX 200 rose 0.3% to 8,688.40. India's Sensex slipped 0.1%.
Markets in Thailand were closed for a holiday.
On Friday, the S&P 500 rose 0.4% to 6,388.64, setting an all-time for the fifth time in a week. The Dow Jones Industrial Average climbed 0.5% to 44,901.92, while the Nasdaq composite added 0.2%, closing at 21,108.32 to top its own record.
Deckers, the company behind Ugg boots and Hoka shoes, jumped 11.3% after reporting stronger profit and revenue for the spring than analysts expected. Its growth was particularly strong outside the United States, where revenue soared nearly 50%.
But Intell fell 8.5% after reporting a loss for the latest quarter, when analysts were looking for a profit. The struggling chipmaker also said it would cut thousands of jobs and eliminate other expenses as it tries to turn around its fortunes. Intel, which helped launch Silicon Valley as the U.S. technology hub, has fallen behind rivals like Nvidia and Advanced Micro Devices while demand for artificial intelligence chips soars.
Companies are under pressure to deliver solid growth in profits to justify big gains for their stock prices, which have rallied to record after record in recent weeks.
Wall Street has zoomed higher on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. Trump has recently announced deals with Japan and the Philippines, and the next big deadline is looming on Friday, Aug. 1.
Apart from trade talks, this week will also feature a meeting by the Federal Reserve on interest rates. Trump again on Thursday lobbied the Fed to cut rates, which he has implied could save the U.S. government money on its debt repayments.
Fed Chair Jerome Powell has said he is waiting for more data about how Trump's tariffs affect the economy and inflation before making a move. The widespread expectation on Wall Street is that the Fed will wait until September to resume cutting interest rates.
In other dealings early Monday, U.S. benchmark crude oil gained 24 cents to $65.40 per barrel. Brent crude, the international standard, also added 24 cents to $67.90 per barrel.
The dollar rose to 147.72 Japanese yen from 147.71 yen. The euro slipped to $1.1755 from $1.1758.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
TSX futures edge higher ahead of Bank of Canada's rate decision
(Reuters) -Futures tied to Canada's main stock index nudged higher on Wednesday ahead of the Bank of Canada's policy decision, while investors awaited trade updates as the August 1 tariff deadline drew closer. Futures on the S&P/TSX index were up 0.2% at 1,639.80 points by 06:05 a.m. ET (1005 GMT). The benchmark index rose to a record high on Tuesday. The BoC is expected to hold the rates at 2.75% for a third time, reflecting a softer-than-expected impact on the Canadian economy from the trade war with the U.S., economists predict. The U.S. Federal Reserve's rate decision, due later on Wednesday, will also be in focus. The deadline for Canada to reach a trade deal with the U.S. to avoid facing a 35% tariff on its goods imported to the south of the border is set for August 1. U.S. ambassador to Canada Pete Hoekstra said on Tuesday he hoped the trade deal would be reached "very soon". Meanwhile, two days of U.S.-China talks ended with both sides agreeing to seek an extension of their tariff truce, set to expire August 12. U.S. officials said it would be up to President Donald Trump to approve the plan. In commodities, gold prices inched up, while oil and copper prices edged lower on Wednesday. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report [.TO] Canadian dollar and bonds report [CAD/] [CA/] Reuters global stocks poll for Canada Canadian markets directory Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 minutes ago
- Yahoo
Weak rouble, higher oil may help Russia if Trump's tariffs hit, analysts say
By Elena Fabrichnaya MOSCOW (Reuters) -Russian markets reacted cautiously to U.S. President Donald Trump's threat to impose new sanctions, with analysts saying on Wednesday a weaker rouble and higher oil prices as a result of his measures may support the economy in the short term. Trump said on Tuesday the United States would start imposing tariffs and other measures on Russia "10 days from today" if Moscow showed no progress toward a peaceful settlement in Ukraine. Oil prices gained more than 3% on his remarks. The rouble has dropped 4.3% since July 24 to 81.9 to the U.S. dollar on Wednesday. Russia's stock market has fallen by 3.4% since July 24. A weaker rouble boosts export competitiveness by making Russian goods cheaper globally and increases revenue from oil exports priced in dollars. "The uncertainty of new U.S. sanctions will continue to weigh on the sentiment of Russian investors," said Alexei Antonov from Alor brokerage. The rouble has rallied by up to 45% against the dollar this year, thanks to the central bank's tight monetary policy and hopes for easing tensions between Russia and the U.S. after talks held in Saudi Arabia in February. The rouble's appreciation lowered the revenue of Russian commodity firms from oil and gas majors to metals and fertilizer exporters. Such firms make up about 60% of the stock market, which is off-limits to Western investors because of sanctions. FUNDAMENTAL SUPPORT Shares in some exporting companies rose after the rouble started sliding, with oil firm Rosneft, Russia's biggest, gaining over 2% since the start of the week, and nickel producer Nornickel rising by over 5% on July 29. "Fundamental support for the Russian exporters' stocks is provided by soaring oil prices and a significantly weakened rouble," said BCS brokerage analyst Mikhail Zeltser. The central bank's decision on July 25 to cut its key interest rate as inflation eased also helped the rouble's fall. A weaker rouble will support the state budget, the main target of Trump's measures, by increasing the rouble-denominated value of Russia's energy revenue even if that shrinks due to new sanctions. Energy made up 27% of Russia's state budget revenue in the first half, down from around 30% in 2023 and 2024. Although some weakening of the rouble to around 90 to the dollar is welcomed by the market, a more significant slide towards 100 and beyond is seen as harmful for the economy. Some analysts recalled November 2024, when the rouble weakened sharply after the U.S. imposed new sanctions. The rouble lost 11% between November 22 and November 27. Finam analysts said Russian investors were lining up to buy foreign currency to hedge the risk of falling export revenues in case Trump imposes secondary sanctions on buyers of Russian oil, such as China and India. "In part, the concerns are not unfounded. It was precisely (former U.S. President Joe) Biden's farewell sanctions package at the end of last year that caused the rouble to plummet," Finam analysts wrote in their research note. (Writing by Gleb Bryanski; Editing by Bernadette Baum) Sign in to access your portfolio
Yahoo
15 minutes ago
- Yahoo
World shares are mixed after China-US talks end without a trade deal
BANGKOK (AP) — World shares were mixed on Wednesday after the U.S. and China ended their latest round of trade talks without a deal. The latest data showed Europe's economy barely grew in the April-June quarter as frantic earlier efforts to ship goods ahead of new U.S. tariffs went into reverse and Germany's economy contracted. The outlook for coming months is mediocre given the 15% tariff imposed on European goods in the U.S. under a EU-U.S. trade deal announced Sunday. The higher tariff will burden European exports with higher costs to either be passed on to U.S. consumers or swallowed in the form of lower profits. Germany's DAX rose 0.2% to 24,274.40, while the CAC 40 in Paris gained 0.6% to 7,907.33. Britain's FTSE 100 shed 0.3% to 9,114.09. The future for the S&P 500 gained nearly 0.1% while that for the Dow Jones Industrial Average was barely changed. Beijing's top trade official said China and the United States agreed during two days of talks in Stockholm, Sweden, to work on extending an Aug. 12 deadline for imposing higher tariffs on each other. The U.S. side said an extension was discussed, but not decided on. Treasury Secretary Scott Bessent said President Donald Trump would make that call. If there is no extension, tariffs could 'boomerang' back to higher levels, he said. China's powerful Politburo met Wednesday and promised help for companies hit by trade shocks, but held back on any specific large government spending commitments. 'It did leave the door open to more support being introduced in future, but the urgency around stimulus appears to have diminished as trade tensions have eased,' Julian Evans-Pritchard of Capital Economics said in a report. A Friday deadline is looming for many of Trump's proposed tariffs on other countries. Several highly anticipated economic reports are also on the way, including the latest monthly update on the job market. 'Markets had been floating on a cloud of trade optimism — first Japan, then the EU — but the sugar high is wearing off. Now, with U.S.-China talks dragging on in Stockholm, there's a growing sense that the momentum is stalling,' Stephen Innes of SPI Asset Management said in a commentary. Hong Kong's Hang Seng index shed 1.4% to 25,176.93, while the Shanghai Composite index gained 0.2% to 3,615.72. Tokyo's Nikkei 225 index fell less than 0.1% to 40,654.70. Gains for electronics companies were offset by losses for major exporters like Toyota Motor Corp. and Honda Motor Co. Australia's S&P/ASX 200 climbed 0.6% to 8,756.40 and in South Korea, the Kospi gained 0.7% to 3,254,47. Taiwan's Taiex rose 1.1%. In India, the Sensex added 0.2%. On Tuesday, U.S. stock indexes edged back from their record levels as a busy week for Wall Street picked up momentum. The S&P 500 fell 0.3% and the Dow lost 0.5%. The Nasdaq composite was down 0.4%. Treasury yields sank as the Federal Reserve began a two-day meeting on interest rates. Despite pressure from President Donald Trump for lower rates, which would give the economy a boost, the widespread expectation is that the Fed will wait for more data about how Trump's tariffs are affecting inflation and the economy before making its next move. The U.S. economy appears to be slowing. One report Tuesday said that U.S. employers were advertising fewer job openings at the end of June than a month before, though still more than economists expected. A separate report said confidence rose among U.S. consumers, but a measure of their expectations about the near term remains below the level that typically signals a recession ahead. In other dealings early Wednesday, U.S. benchmark crude oil shed 57 cents to $68.64 per barrel, while Brent crude, the international standard, gave up 58 cents to $71.10 per barrel. The dollar fell to 148.20 Japanese yen from 148.48 yen. The euro slipped to $1.1542 from $1.1546. Elaine Kurtenbach, The Associated Press
