Asia shares helped by Nvidia high as investors unfazed by Trump's tariff moves
US copper futures widened their premium to the London benchmark overnight after Trump announced plans to impose a 50 per cent tariff on copper. He later said on Wednesday the levies would come into effect on August 1.
Trump also turned his trade ire against Brazil on Wednesday as he threatened a punitive 50 per cent tariff on exports to the US and issued tariff notices to seven minor trading partners.
The latest moves did little to rattle markets, leaving MSCI's broadest index of Asia-Pacific shares outside Japan up 0.2 per cent.
The Nikkei fell 0.56 per cent, while China's CSI300 blue-chip index rose 0.2 per cent and Hong Kong's Hang Seng Index added 0.1 per cent.
EUROSTOXX 50 futures gained 0.18 per cent and FTSE futures advanced 0.33 per cent.
Artificial intelligence chip designer Nvidia on Wednesday became the world's first company to hit a US$4 trillion market value, as it solidified its position as one of Wall Street's most favoured stocks.
US stock futures eased slightly in Asia on Thursday, with Nasdaq futures and S&P 500 futures both down about 0.2 per cent each, after both indexes closed higher in the cash session overnight.
The market reaction to Trump's tariff developments this week has been much less severe than the post "Liberation Day" selloff in April, with Jeff Ng, SMBC's head of Asia macro strategy, saying investors have grown somewhat "numb" to the ever-changing situation.
"They know that there is still room for negotiation. A lot of these announcements, they start off with eye-catching numbers, but they are not totally final, and they are still subject to changes. Even if they are implemented, they could also be reversed in the coming few months to year," he said.
Also keeping stocks supported were expectations of Federal Reserve rate cuts later this year.
Minutes released on Wednesday showed "most participants" at the Fed's meeting last month anticipated rate cuts would be appropriate later this year, with any price shock from tariffs expected to be "temporary or modest".
"Right now, markets are not pricing in a high chance of a full-blown recession at this stage, given that the labour market continues to be quite resilient, but they know that there's a lot of pressure to push policy rates lower, so that could lower the opportunity cost of holding equities," Ng said.
DOLLAR EASES
The dollar was on the back foot on Thursday, falling 0.4 per cent against the yen to 145.79 after a sharp rise earlier this week when Trump slapped Japan with 25 per cent tariffs.
The euro was up 0.17 per cent to US$1.1742 and sterling gained 0.11 per cent to US$1.3605.
An exception was the Brazilian real, which languished near a one-month low at 5.5826 per dollar owing to Trump's tariff threat on Latin America's largest economy.
"Despite the S&P 500's impressive rally, the US dollar continues to retreat, underscoring a shifting global macro narrative," said Julia Wang, global market strategist at J.P. Morgan Private Bank.
"We believe the greenback remains 5-15 per cent overvalued and expect continued weakness as cyclical convergence and capital reallocation trends play out."
In cryptocurrencies, bitcoin hovered near a record high and was last at US$111,234.63, while ether was up 1.3 per cent to US$2,775.54.
"We're seeing our clients take a more measured approach, making strategic allocations into cryptocurrencies with real utility instead of chasing short-term moves. Bitcoin remains the top pick on our platform," said Gracie Lin, OKX's Singapore CEO.
Elsewhere, oil prices fell on Thursday, with Brent crude futures down 0.16 per cent to US$70.08 per barrel, while US crude lost 0.22 per cent to US$68.23 a barrel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
33 minutes ago
- Malay Mail
Trump's addictive tariff doctrine: Pinching, pummelling, and the price of global compliance — Phar Kim Beng
JULY 12 — The leaked audio of former President Donald J. Trump during a 2024 fundraiser—recently revealed by CNN—should not be dismissed as mere campaign bravado. When Trump admitted that he had initially asked for one million dollars but walked away with twenty-five times that amount, he sounded both amused and amazed. More revealing, however, was his offhand remark: 'It's about getting into the mindset.' That moment of candour explains far more than his fundraising psychology—it offers a blueprint for his foreign economic policy. Indeed, Trump's second presidency has been shaped not just by tariffs as an economic tool, but by tariffs as psychological warfare. Whether allies or adversaries, all are subject to his self-proclaimed principle of 'maximum extraction.' Tariffs are no longer just about market correction or economic protectionism; they are a means of tribute, coercion, and ultimately submission to Trump's worldview of American primacy. The executive order that redefined trade On January 20, 2025—the very first day of his second term—President Trump signed a sweeping Executive Order instructing the Secretary of Commerce and the Treasury Secretary to ensure that every possible tool be used to extract maximum revenue from global trade. Section B of the second paragraph of that Executive Order makes the objective brutally clear: to increase tariffs, duties, levies, and restrictions to yield up to US$400 billion in revenue for the US government within the calendar year. This is not trading policy. It is economic conquest. Unlike the tariffs of previous administrations that targeted dumping or strategic industries, Trump's approach is indiscriminate. It is premised on the idea that friends are easier to squeeze than enemies because they are less likely to retaliate in kind. 'It's easier to get more from friends—they won't fight back,' he was heard saying in another portion of the leaked audio. This has led to punitive tariffs on countries like Japan, South Korea, Germany, and Malaysia—nations that have historically enjoyed stable ties with the United States. Tariffs as tools of tribute Trump's method of tariff pummelling has three consistent features: First, it begins with a shock tariff—a sudden, often unannounced imposition of duties. This was evident on July 8, 2025, when the White House abruptly imposed 25 percent tariffs on key sectors from Asean, Japan, and South Korea, well before the previously floated deadline of August 1. The idea is to throw diplomatic teams off balance and create maximum psychological leverage. Second, Trump offers exemptions or 'carve-outs' as bargaining chips. Malaysia, for example, found its exports of semiconductors and integrated circuits—making up the bulk of its US$80 billion two-way trade with the US—exempted from the new tariffs. But this was no accident. Malaysia had just announced the purchase of 30 Boeing aircraft. The pattern is unmistakable: pay tribute in kind (defence purchases, foreign direct investments, or public endorsements of Trump), and you might receive reprieve. Third, he escalates the pressure through vague threats of future penalties. These are often announced at rallies or in interviews, keeping the world perpetually guessing about what comes next. The unpredictability is intentional, a form of controlled chaos that he believes gives America the upper hand in negotiations. Why the addiction? Trump's use of tariffs is not simply strategic. It is compulsive. The psychological high he receives from watching countries scramble to adjust, to mollify, or to appease him, feeds into a cycle of economic brinkmanship. His personal satisfaction seems rooted not in policy outcomes but in submission rituals—press conferences by foreign leaders pledging allegiance to US supply chains, or headlines about retaliatory restraint from trading partners. As former National Security Adviser John Bolton once observed, Trump sees foreign policy as a series of transactions. But in his second term, it has evolved into something more primal. The leaked audio proves that Trump sees economic policy as theatre—and he, the self-appointed master of ceremonies. The world is a stage for his psychological dominance. The friends he loves to punish The irony of Trump's doctrine is that it targets allies far more often than adversaries. China, for all its geopolitical rivalry with the US, remains cautiously respected by Trump for 'playing hardball.' On the other hand, allies like Canada, Germany, and South Korea are routinely slapped with tariffs not because they are unfair traders—but because they are perceived as 'too comfortable' under the US umbrella. In Asean's case, Trump's tactics are creating deep anxiety. Malaysia, as Group Chair of Asean and Chief Coordinator of Asean-China relations, finds itself pulled in multiple directions. While attempting to chart a neutral and balanced foreign policy, it is simultaneously exposed to unilateral US economic coercion. Even though key exports like semiconductors remain exempted, the message is clear: exemptions today can become punishments tomorrow, unless political alignment is made explicit. Revenue as power, not policy The US$400 billion target is not just about balancing America's books. It is about transforming revenue into geopolitical leverage. Trump believes that with enough economic weight, the US can force the world to comply with its rules—whether on trade, technology standards, digital taxation, or military basing rights. The logic is rooted in power, not principle. For Trump, tariffs are not a bridge to negotiation; they are a test of fealty. Countries that comply may get exemptions or defence guarantees. Those that resist face tariffs, travel bans, or diplomatic snubs. This reconfiguration of trade as tribute has turned even America's closest allies into cautious participants in an asymmetric relationship. Asean's narrow path Asean now faces the challenge of balancing Trump's tariff addiction with its own strategic autonomy. The region must avoid being perceived as either too accommodating or too resistant. Countries like Malaysia, Indonesia, and Vietnam must reinforce intra-regional trade, accelerate digital transformation, and deepen supply chain resilience to avoid being trapped in Trump's tariff vise. Track 2 diplomacy, regional summits, and multilateral coalitions—whether through Brics+, Asean+3, or the East Asia Summit—must be mobilised not to oppose the US, but to insulate against its erratic policies. If Trump's first term taught the world about disruption, his second term is teaching them about addiction—to tariffs, tribute, and total control. In conclusion, the Trump Doctrine in 2025 is not just about 'America First.' It is about 'America Extracts.' And as long as this addiction goes unchecked, the world must brace itself—not for another trade war, but for a global system held hostage by a leader who equates economic pain with political gain. * Phar Kim Beng is a professor of Asean Studies and Director of the Institute of Internationalization and Asean Studies at the International Islamic University of Malaysia ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
BusinessToday
an hour ago
- BusinessToday
Safe-Haven Demand Strengthens Gold Prices
Gold prices climbed on July 11, buoyed by safe-haven demand amid ongoing geopolitical uncertainty and heightened volatility in global markets. Spot gold closed at US$3,354.76 per oz, marking a 0.9% gain from the previous session. The advance marks the third straight day of gains for the precious metal, as investors continue to seek shelter from mounting risks, including trade tensions and uncertain monetary policy trajectories. Front-month gold futures also saw a strong session, reaching an intraday high of US$3,381.60, up approximately US$43.50 from July 10's close. Trading ranged between US$3,332 and US$3,381 throughout the day. The rally came as US President Donald Trump's tariff threats rattled financial markets globally, adding to the appeal of gold as a hedge against political and economic shocks. Looking ahead, market participants will closely watch upcoming economic indicators and central bank commentary. Analysts caution that while gold could continue to benefit from risk-off sentiment, strong economic data or a shift in interest rate expectations could temper its momentum. Related
The Star
2 hours ago
- The Star
Top military chiefs meet to discuss regional security
The top military chiefs of South Korea, the United States and Japan met in Seoul, as US President Donald Trump piles pressure on Washington's allies over defence spending and trade. General Dan Caine, the top US military officer, held talks with his South Korean counterpart Kim Myung-soo, and Japan's General Yoshihide Yoshida, as part of an annual meeting on regional security yesterday. They discussed growing military ties between Moscow and Pyongyang, which has sent weapons and thousands of troops for Russia's war in Ukraine. The talks covered 'the potential transfer of military technology from Russia to the DPRK', the three military chiefs said in a statement which used North Korea's official name. Speaking at the start of the trilateral talks, Caine said that North Korea and China are both 'undergoing an unprecedented military build-up with a clear and unambiguous intent to move forward with their own agendas'. 'We need to be mindful of that, we need to be able to demonstrate resolve, to be entrepreneurial and proactive in our partnerships,' he added. Separately, the three countries conducted joint air drills yesterday over South Korea's Jeju island, involving a US B-52H strategic bomber, according to the defence ministry. Washington, Seoul's long-time security ally, stations around 28,500 troops in the South. The two countries signed a new five-year agreement in 2024 on sharing the cost of those troops, but this week Trump said South Korea is 'paying very little for the military'. South Korea's foreign ministry said this week that they were 'committed to faithfully implementing' the defence cost deal, 'which was validly concluded and has entered into force'. — AFP
