Japanese markets end lower after gaining for two days
Industrial robot maker Yaskawa Electric slumped 6 percent to snap a three-day winning streak. Mitsubishi Motors plummeted almost 8 percent after first-quarter operating profit fell short of projections.
The yen declined as data showed Tokyo CPI inflation eased more than expected in July, complicating the Bank of Japan's interest-rate hike prospects.
Producer prices in Japan were up 3.2 percent on year in June, the Bank of Japan said on Friday. On a monthly basis, producer prices slipped 0.1 percent for the second straight month.
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Business Standard
4 minutes ago
- Business Standard
'Asia must open up': ADB president says world won't return to pre-Trump era
Asian economies must embrace openness and reform like never before, Masato Kanda, president of the Asian Development Bank (ADB) said in an interview with Nikkei. The former Japanese currency chief took charge of the Manila-headquartered multilateral lender in February, shortly after Donald Trump returned to the White House for a second term—an event Kanda described as having 'completely changed the world'. Since taking office, Kanda has held discussions with leaders including Prime Minister Narendra Modi, Chinese Premier Li Qiang, and Italian Prime Minister Giorgia Meloni. 'Those leaders all agree that we must use this crisis as an opportunity for reform to build more resilient domestic and regional economies,' he said. 'There will never be a return to a world before Trump,' Kanda said, stressing that Asian economies must diversify away from over-reliance on the US market and global supply chains. 'Strengthening the domestic markets of Asian countries and regions is an important task.' $10 billion investment in Asean grid, Indian metros To support regional resilience and integration, the ADB has pledged up to $10 billion for the Asean Power Grid—an initiative aimed at enhancing cross-border electricity connectivity and energy security in Southeast Asia. Kanda also confirmed the bank's proposal to invest another $10 billion in urban infrastructure projects across India, including metro systems. 'You don't see such a project at that scale in other regions,' he noted, citing India's demographic dividend and its rising role as a regional investment hub. Beyond 'China plus one' While global supply chains have already begun shifting away from China, Kanda cautioned that Southeast Asia, previously buoyed by the 'China Plus One' strategy, is now itself vulnerable, particularly under the weight of fresh US trade barriers. 'The concept still holds, but it must evolve,' he said. 'Diversification must extend beyond final goods markets to include raw material sources and intermediate suppliers.' Asia must not turn inward: ADB president Kanda warned that in the face of growing protectionism in the West, Asia cannot afford to become inward-looking. He urged countries in the region to deepen trade integration not just within Asia but with Europe as well. Speaking on the sidelines of the ADB's annual meeting in Italy earlier this year, Kanda said European leaders had expressed strong interest in strengthening economic ties with Asia, which they view as the world's primary growth engine. 'Reform momentum is building across Asia,' he said, highlighting efforts by regional leaders to dismantle structural barriers such as land-use restrictions and capital controls. 'They understand that survival cannot come from relying on gimmicks.' Kanda also called for prudent macroeconomic policies, warning that without sustainable public finances and a normalised monetary stance, governments may lack the flexibility to respond to future crises. US relations and China lending Despite political changes in Washington, the ADB maintains what Kanda described as a "constructive relationship" with the United States. He pointed to the bank's ability to increase lending by 50 per cent since 2009 without expanding its capital base, calling it an efficient use of donor funds. On US pressure to halt lending to China, Kanda said discussions were ongoing among shareholders. Current ADB loans to China have declined sharply and are now focused on global public goods such as environmental sustainability and biodiversity. ADB trims India forecast amid US tariff pressure The ADB's latest Asian Development Outlook, released last week, revised India's GDP growth forecast for the financial year 2025–26 (FY26) down to 6.5 per cent from the previous 6.7 per cent, citing the impact of US tariff policy and broader global slowdown. Despite this downward revision, the ADB noted that India remains one of the fastest-growing major economies globally. 'This revision is primarily due to the impact of US baseline tariffs and associated policy uncertainty,' the report said. It warned that beyond lower export demand, investment flows may also be affected by heightened uncertainty. Inflation forecasts have also been revised downward to 3.8 per cent for FY26, following a faster-than-expected decline in food prices.
Hans India
34 minutes ago
- Hans India
Tech Titans Slash Jobs Amid AI Shift: TCS, Microsoft, Intel Lead Major Layoff Wave
A fresh wave of layoffs is sweeping across the global tech landscape as major firms including TCS, Microsoft, Intel, Meta, and Panasonic restructure their operations amid the growing influence of artificial intelligence (AI) and shifting market demands. TCS Layoffs Rooted in Skill Mismatch Tata Consultancy Services (TCS), India's largest IT services company, is reducing its workforce by approximately 12,000 employees, or around 2 percent of its global staff. Interestingly, the company clarified that this move is not directly linked to AI advancements. In an interview with Money Control, CEO K Krithivasan stated, 'The layoffs are happening because of limited options to redeploy employees who do not match current project requirements.' He emphasized that the company remains committed to hiring and training talent. However, he acknowledged that placing some roles, particularly mid- to senior-level professionals, remains a challenge. TCS has invested in upskilling its workforce, training over 550,000 employees in foundational digital skills and about 100,000 in advanced technologies. Yet, Krithivasan admitted that some experienced professionals are struggling to progress beyond the initial levels of training, making redeployment difficult. Microsoft Cuts Jobs Despite Strong Earnings Microsoft has also been trimming its workforce, letting go of more than 15,000 employees in 2025. An additional 2,000 staff, considered underperformers, have also exited the company. This move comes despite Microsoft's strong financial performance and record-high stock prices. In a company-wide memo, CEO Satya Nadella acknowledged the emotional toll on employees, noting, 'I understand how difficult this period has been for everyone.' He explained that the restructuring is essential for long-term alignment as Microsoft invests nearly $80 billion into AI infrastructure. Intel's Massive Workforce Reduction Intel is implementing one of the largest job cuts this year, with plans to eliminate around 24,000 roles — nearly 25 percent of its workforce. Announced during its quarterly earnings, the layoffs are part of a larger strategy to streamline operations following miscalculations in demand forecasting. New CEO Lip-Bu Tan stated that the company is aiming to become 'leaner and more efficient.' Alongside the job cuts, Intel is also cancelling planned factory developments in Germany and Poland and shifting some operations from Costa Rica to Vietnam, impacting 2,000 employees in Costa Rica alone. Meta Scales Down Reality Labs Meta has made new cuts within its Reality Labs division, affecting teams behind products like the Supernatural fitness app. Though the company didn't disclose numbers, it confirmed the layoffs are aimed at focusing more sharply on future mixed reality experiences. Earlier this year, Meta also reduced its global headcount by 5 percent, primarily targeting underperformers. Panasonic Joins the Trend Japanese electronics giant Panasonic is eliminating 10,000 jobs globally, half of which are in Japan. CEO Yuki Kusumi explained that the decision is part of a strategy to reduce costs and shift resources toward future technologies such as AI. 'We're moving away from slower segments like TVs and certain industrial products,' Kusumi said, expressing regret over the layoffs but stressing their necessity for long-term growth.
Economic Times
4 hours ago
- Economic Times
Stocks cheer the art of Trump's trade deals after EU agreement
Global stocks rose and the euro firmed on Monday after a trade agreement between the United States and the EU lifted sentiment and provided clarity in a pivotal week headlined by the Federal Reserve and the Bank of Japan policy meetings. ADVERTISEMENT The U.S. struck a framework trade agreement with the European Union, imposing a 15% import tariff on most EU goods - half the threatened rate, a week after agreeing to a trade deal with Japan that lowered tariffs on auto imports. Countries are scrambling to finalise trade deals ahead of the August 1 deadline, with talks between the U.S. and China set for Monday in Stockholm amid expectation of another 90-day extension to the truce between the top two economies. "A 15% tariff on European goods, forced purchases of U.S. energy and military equipment and zero tariff retaliation by Europe, that's not negotiation, that's the art of the deal," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities. "A big win for the U.S." S&P 500 futures rose 0.4% and the Nasdaq futures gained 0.5% while the euro firmed across the board, rising against the dollar, sterling and yen. European futures surged nearly 1%. In Asia, Japan's Nikkei slipped after touching a one-year high last week while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.27%, just shy of the almost four-year high it touched last week. ADVERTISEMENT While the baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal, it is better than the threatened 30% rate. The deal with the EU provides clarity to companies and averts a bigger trade war between the two allies that account for almost a third of global trade. ADVERTISEMENT "Putting it all together, what we've seen with Japan, with the EU, with the talks which are due to be held in Stockholm between the U.S. and China, it really does negate the risk of a prolonged trade war," said Tony Sycamore, market analyst at IG. "The importance of the August tariff deadline has significantly been diffused." ADVERTISEMENT The Australian dollar, often seen as a proxy for risk sentiment, was 0.12% higher at $0.65725 in early trading, hovering around the near eight-month peak scaled last week. In an action-packed week, investors will watch out for the monetary policy meetings from the Fed and the BOJ as well as the monthly U.S. employment report and earnings reports from megacap companies Apple, Microsoft and Amazon. ADVERTISEMENT While the Fed and the BOJ are expected to stand pat on rates, comments from the officials will be crucial for investors to gauge the interest rate path. The trade deal with Japan has opened the door for the BOJ to raise rates again this year. Meanwhile, the Fed is likely to be cautious on any rate cuts as officials seek more data to determine if tariffs are worsening inflation before they ease rates further. But tensions between the White House and the central bank over monetary policy have heightened, with Trump repeatedly denouncing Fed Chair Jerome Powell for not cutting rates. Two of the Fed Board's Trump appointees have articulated reasons for supporting a rate cut this month. ING economists expect December to be the likely starting point for rate cuts, but it "may be a 50 basis point cut, if the evidence on weaker jobs and GDP growth becomes more apparent as we anticipate." "This would be a similar playbook to the Federal Reserve's actions in 2024, where it waited until it was completely comfortable to commit to a lower interest rate environment," they said in a note. (You can now subscribe to our ETMarkets WhatsApp channel)
