Asian shares are mostly higher, tracking US rally into record heights
U.S. futures and oil prices were lower.
Japan's Nikkei 225 fell 1.2% to 40,003.24 despite positive results of the central bank's quarterly Tankan survey of large manufacturers, which showed an better than expected improvement in business sentiment.
The Shanghai Composite index added 0.2% to 3,451.69 after China's official manufacturing purchasing managers index, or PMI, rose to a three-month high of 49.7 in June while the PMI for services and other non-manufacturing businesses also rose to a three-month high of 50.5.
Hong Kong's stock market was closed on Tuesday.
South Korea's KOSPI Composite Index surged 1.5% to 3,117.17 after the government reported that exports bounced back in June, helped by strong demand for semiconductors, ships and health products.
'Automobile and automotive parts exports also gained. Strong electric vehicle exports to the EU and solid used-car exports partially offset the decline of U.S. exports. However, we expect auto exports to remain soft due to tariffs and increased production in the U.S.,' Min Joo Kang of ING Economics said in a report.
Australia's S&P/ASX 200 edged up 0.1% to 8,550.80.
The PSEi in Manila, Philippines, rose 0.2%.
On Monday, Wall Street resumed its upward climb.
The S&P 500 rose 0.5% to 6,204.95. It has staged a stunning recovery from its springtime sell-off of roughly 20%. The Dow Jones Industrial Average added 0.6% to 44,094.77, and the Nasdaq composite gained 0.5% to 20,369.73.
Stocks got a boost after Canada said it would rescind a planned tax on U.S. technology firms and trade talks with the United States resumed. On Friday, U.S. President Donald Trump had said he was suspending those talks to retaliate for the tax, calling it 'a direct and blatant attack on our country.'
U.S. stocks have bounced back on hopes that Trump will reach deals with other countries to lower his painful high tariffs and avert trade wars that could stifle the economy and send inflation higher.
Many of Trump's announced tariffs have been postponed and are due to kick back into effect on July 9.
The U.S. stock market recovery could raise the risk Trump will resume escalating tariffs, similar to what happened in 2018-2019, according to strategists at Deutsche Bank led by Parag Thatte and Binky Chadha.
On Wall Street, Oracle's 4% rise was one of the strongest forces lifting the S&P 500. CEO Safra Catz said the tech giant 'is off to a strong start' in its fiscal year and that it signed multiple large cloud services agreements, including one that could contribute over $30 billion in annual revenue two fiscal years from now.
GMS' stock jumped 11.7% after the supplier of specialty building products said it agreed to sell itself to a Home Depot subsidiary in a deal that would pay $110.00 per share in cash. That would give it a total value of roughly $5.5 billion, including debt.
Less than two weeks ago, another company, QXO, said it was offering to buy GMS for $95.20 per share in cash. After the announcement of the Home Depot bid, QXO's stock rose 3.9%, and Home Depot's stock slipped 0.6%.
Hewlett Packard Enterprise rallied 11.1% and Juniper Networks climbed 8.4% after saying they had reached an agreement with the U.S. Department of Justice that could clear the way for their merger go through, subject to court approval. HPE is trying to buy Juniper in a $14 billion deal.
Bank stocks were also solid after the Federal Reserve said on Friday that they are financially strong enough to survive a downturn in the economy. JPMorgan Chase climbed 1%, and Citigroup gained 0.9%.
In the bond market, Treasury yields fell ahead of several major economic reports later in the week. The highlight will be Thursday's jobs report. It's often the most anticipated economic data of each month, and it will come a day earlier than usual because of Friday's Fourth of July holiday.
In other dealings early Tuesday, benchmark U.S. crude oil lost 37 cents to $64.74 per barrel, while Brent crude, the international standard, fell 35 cents per barrel to $66.39.
The U.S. dollar dipped to 143.86 Japanese yen from 144.04 yen. The euro rose to $1.1792 from $1.1789.
___
AP Business Writer Stan Choe contributed.
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Yahoo
22 minutes ago
- Yahoo
Trump slams Elon Musk as megabill drops AI protections and hits snags in Senate
President Trump slammed Elon Musk's subsidies, and Republican senators struck down a plan to shield artificial intelligence from state regulations. These two middle-of-the-night developments on Tuesday reinforced a growing schism between Trump and Silicon Valley supporters over his "big, beautiful bill." The first development came at 12:44 a.m. ET, when Trump responded to Tesla (TSLA) CEO Musk's ongoing critiques of the package, focusing on the government grants that Musk's companies receive. "Without subsidies, Elon would probably have to close up shop and head back home to South Africa," wrote the president in a Truth Social post, adding, "perhaps we should have DOGE take a good, hard, look at this?" The president was referring to the government efficiency group that Musk ran until recently. The president's missive came after Trump's signature legislation underwent key changes in recent days that set off many in the tech industry, Musk most of all, with new measures to tax green energy companies and further support for fossil fuels, as well as a growing price tag. The divide between many in Silicon Valley and the "big, beautiful bill" has been evident for over a month. It appeared set to deepen further when, a few hours later, a closely watched artificial intelligence provision was stripped from the bill itself. This plan, which had many Silicon Valley supporters, was meant to shield the quickly growing AI industry from state and local regulations. But the idea now appears to be dead after Sen. Marsha Blackburn of Tennessee turned against a compromise plan Monday evening and stripped it from the bill. It wasn't close in the end, with the Senate voting 99-1 to adopt Blackburn's subsequent amendment in a count that wrapped up a little after 4:00 a.m. ET. Trump's overall package also appears to be teetering Tuesday morning after a series of overnight developments saw two key Republican senators — Lisa Murkowski of Alaska and Susan Collins of Maine — uncommitted to vote yes. Those two senators could join two Republicans already committed to voting no, which would be enough to sink the package. The drama between the president and the world's richest man has been up and down for weeks, but it escalated Monday afternoon when Musk offered new electoral threats against Republicans. Musk had already amplified Democrats' critiques and talked about the need for a new political party. He offered a striking promise Monday afternoon that lawmakers who vote for the bill "will lose their primary next year if it is the last thing I do on this Earth." Musk, of course, was the biggest donor during the 2024 campaign, spending at least $288 million, most of which was offered in support of Trump. Trump reiterated his critiques of Musk Tuesday morning, speaking to reporters and saying of Musk's objection to losing EV subsidies, "Elon can lose a lot more than that." The president also called the Department of Government Efficiency (DOGE) a "monster that might have to go back and eat Elon." And when asked by a reporter if he would consider deporting Musk, he demurred: "We'll have to take a look." What is unclear for the days ahead is how much the Trump-Musk fight will impact the actual chances of the bill's passage, with Senate amendment votes ongoing. Musk is clearly focused on a debate likely coming later this week, when the House is set to take up the amended measure if it passes. The House is where a vocal bloc of fiscal conservatives — who often vote as part of the "Freedom Caucus" — warily supported a previous version of the bill, saying a previous smaller price tag was too big. Musk even tagged some of these House Republican lawmakers in some of his latest posts, which continued throughout the night with dozens of messages. Musk also responded to Trump's comments about his subsidies by saying his companies like Tesla and SpaceX ( would be fine and that oil and gas subsidies should be removed as well. The back-and-forth over AI also came to a head overnight after the House passed a plan in May that included a complete ban on state regulations of AI for a decade. The little-noticed measure gained wider attention in the weeks that followed, with many of Trump's most loyal supporters opposing it. Rep. Marjorie Taylor Greene even admitted that she hadn't been aware of the provision when she voted yes. The Georgia lawmaker then announced her opposition and plans to vote no if this "violation of state rights" stayed in the bill. Trump himself doesn't appear to have taken a position on the measure, but it had the backing of his Silicon Valley-aligned aides, most notably the vocal support of AI and crypto czar (and longtime venture capitalist) David Sacks. But Republican opposition grew, and Sen. Blackburn of Tennessee became a leading voice of opposition in the Senate. She entered into negotiations over the issue and appeared to have found a compromise in recent days around the idea that instead of a decade-long ban, the provision would be amended to be a "temporary pause" of five years. States would be strongly discouraged from regulating AI, as lawmakers linked it to access to millions of dollars in AI infrastructure and deployment funding. But even that wasn't enough. Blackburn renounced the compromise, said a moratorium "could allow Big Tech to continue to exploit kids, creators, and conservatives," and teamed with a top Democrat to strike the provision entirely. Arkansas Gov. 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Forbes
23 minutes ago
- Forbes
China + Trump's Abraham Accords Remake Middle Eastern Energy
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The Abraham Accords, the first Trump administration's most significant foreign policy accomplishments, sought to normalize relations between Israel and various Muslim-majority states. In doing so, it was hoped that outside influence and economic ties could slowly unravel the Gordian Knot that is Israeli-Palestinian relations and cool tensions. Iran's disruption of this process was both ideological and strategic, in escalation of its hegemonic ambitions and its 'ring of fire' strategy, designed to surround and attack Israel through numerous proxies, an approach which would be threatened by Trump's one believes a broken clock tells time twice a day, or the result was due to great strategic insight, Trump seems to have succeeded in his 'splendid little war'. Iran's nuclear and military capacity has been reduced, its network of proxies largely smashed, the friendly Assad regime in Syria gone, a quagmire resulting from regime change in Tehran avoided. The global economy dodged recession because the Strait of Hormuz was not closed, possibly with the assistance of China. America's position, both geopolitically and in the energy sector, has been strengthened following the strikes on Iran, to wit Brent oil prices hovering at a healthy $67 a barrel at the time of this writing. While doubts about the success of attacks against Iran's nuclear capabilities persist, and confusion about the feasibility of Iran's nuclear ambitions endures, there is less doubt about the results for Iran's patrons and Accords ExpandThe expansion of the Abraham Accords is the most likely immediate result of Iran's humiliation, and it heralds the erosion of Iranian power. One obvious candidate for expansion, in both my estimation and per the Israeli media, is Azerbaijan, a majority Shi'a Muslim secular state that already has an exemplary relationship with Israel, making it the perfect antithesis to Iran. Should Azerbaijan join the Accords, the European energy market would be the most significant immediate beneficiary, since Azeri energy could flow westwards without its existing cooperation with Israel acting as a Iran, being unable to confront Israel and the U.S., is picking a fight with Azerbaijan, spreading deepfakes and threats to 'retaliate' for Baku's alleged assistance to Jerusalem during the war. Azerbaijan's ascension to the Abraham Accords will prevent Iran from aggressive moves towards its independent neighbor, thus actively denying Tehran's strife to control the energy-rich Caucasus are other promising candidates for the Abraham Accords. Syria, assuming it opts to join, would serve as a dramatic example of a nation's ability to exit the Axis of Evil camp and embark on a path toward development. It would be a powerful way for Syria's President Ahmed al-Shaara to demonstrate that his claims of being a changed man in charge of a changing country are not simply rhetoric. 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Russia, bogged down in Ukraine, refused to act. Beijing could have credibly supported Iran in defense of its strategic partnership. Instead, China opted for low energy prices amid fears that further escalation would damage its economy. Now, in the aftermath of Trump's victory and China's difficult decision, the Middle East is in flux, and Beijing has both hard choices and opportunities ahead of abandonment of Iran at the first inconvenience isn't a total loss. While this action may convince some that China is a paper tiger, for others, especially Iran's Arab rivals, it is seen as a sign of prudence. China is far more reliant on Arab states for energy than it is on Iran. Furthermore, Beijing's only hope of expanding engagement with the Middle East now lies with the Arab states; and the Arab states, which are increasingly likely to join the Abraham Accords, are the key for China to normalize contacts with the region and sidestep Iranian aspirants to the accords, China already has close relations with Central Asian states and expressed an interest in investing in Syria. In Azerbaijan, China maintains a pragmatic, growing strategic partnership rooted in energy, infrastructure, and regional connectivity. Thus, China may even find strategic utility in supporting the Accords, not just for its Middle Eastern objectives, but also to mitigate against the controversies concerning Beijing's repression of the Muslim Uyghurs in China's Xinjiang Abraham Accords now transcend mere peacekeeping in the Middle East. They may become a coalition of nations with which the United States can reliably deal. Within this framework, Israel is a capstone asset. Still, also a litmus test: a Muslim country's ability to maintain harmonious relations with Israel is seen as indicative of its potential for constructive engagement with America. This strategic vision positions the Abraham Accords as a cornerstone of U.S. foreign policy, leveraging Israel's role to foster a network of allied states, thereby enhancing American influence and energy security on the global stage. Ironically, this strategic vision is more recognized in Beijing and Tehran than in Washington, D.C.
Fox News
24 minutes ago
- Fox News
'We're ignoring him': GOP senators react to Musk's threat to primary supporters of Trump's 'beautiful' bill
Tesla and SpaceX CEO Elon Musk threatened to support primary challenges of GOP senators who vote in favor of President Donald Trump's "big, beautiful bill," prompting pushback from some senators who spoke to Fox News Digital. "I'll take President Trump's endorsement over Elon's any day of the week back home," Kansas GOP Sen. Roger Marshall told Fox News Digital. "Look, we need to pass this bill because it helps fulfill President Trump's agenda. His priorities were to secure the border, bring back prosperity and security. I think if we do those things, if we bring back the prosperity and the security, we're going to get re-elected. Elon's continuing his little spat, we are ignoring him. Let's get this bill across the finish line." GOP Sen. Tommy Tuberville of Alabama told Fox News Digital that the "bottom line" is that "51 of us are going to vote for this tonight." "I saw some of the things he's upset over, the subsidies that we're cutting out of energy, you know, the wind and solar. He thinks that we need to do more with energy, and I agree with that, but we can't keep funding it through the federal government. We've got to go out there and do it the right way through private enterprise like he's done it." Missouri GOP Sen. Schmitt praised Musk's work at DOGE, saying he has a "ton of respect" for the former DOGE chief and said he should be congratulated for the "incredible thing" he did for the country, finding waste, fraud and abuse in the federal government. "Everybody's entitled to their opinions," Schmitt said. GOP Tennessee Sen. Bill Hagerty told Fox News Digital that by the time primary elections come up in 2026, the country will "already be seeing the benefits of the bill." "We're going to see more growth and more tax benefits, more revenue benefits, I should say, so, I don't think that the doom and gloom being predicted by many is actually going to manifest itself," Hagerty explained. "In fact, I think we're opening the door to a new golden era, as President Trump likes to say." South Dakota GOP Sen. Jon Hoeven pushed back on the criticism that the bill would increase the deficit by arguing the deficit would be reduced via revenue growth and savings. "I think people understand that he, you know, didn't like the one big, beautiful bill," Hoeven said. "So I don't know that people have paid, you know, nearly as much attention to it this time around." Marshall, when asked if he thought Musk's primary threats would hurt Republicans in the midterms, said, "I haven't given it a second thought today." "It would be a big speed bump in certain states, in Kansas, probably not so much. I think President Trump was wildly popular in most of these states. I think we need to find a way to get Elon back on board. He's a smart person, brings a lot to our economy. Let's figure out how to bring Elon back into the fold here." Musk intensified his ongoing feud with Trump and his allies this week in a political warning to lawmakers that he would work to unseat them if they voted in support of Trump's bill. "Anyone who campaigned on the PROMISE of REDUCING SPENDING, but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year," Musk posted to X Monday evening. The message was accompanied by an image of Pinocchio sitting on fire and the caption, "LIAR Voted to increase America's DEBT by 5,000,000,000.00" "Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth," Musk declared in a post on X on Monday. On Tuesday morning, as the bill was being debated in the Senate, Trump warned that the Department of Government Efficiency (DOGE) is a "monster that might have to go back and eat Elon." "DOGE is the monster that might have to go back and eat Elon. Wouldn't that be terrible?" Trump told the media Tuesday morning as he departed for a trip to the Florida Everglades to visit a new migrant detention center. "He gets a lot of subsidies. But, Elon was very upset that the EV mandate is going to be terminated." His response followed a question regarding whether he would deport Musk, who is originally from South Africa. Trump responded, "I don't know, we'll have to take a look."
