Asia Eyes Cautious Open on Tariff Deals, Oil Falls: Markets Wrap
The dollar was steady against major peers in early trading while US equity futures slipped. Contracts for Asian equities indicated Australian, Japanese and Hong Kong markets may open steady when trading resumes Monday.
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Yahoo
10 minutes ago
- Yahoo
Asian markets drop as Trump's tariff deadline looms
Most Asian markets fell Monday as countries fought to hammer out trade deals days before Donald Trump's tariff deadline, though investors took heart after he said the levies would not kick in until the start of next month. While the White House has said several deals were in the pipeline, only two have been finalised ahead of the July 9 cut-off set by the US president. Governments from major trading partners including Japan, India, the European Union and South Korea have fought for the past three months to get agreements. But Trump said he will send his first tariff letters at 1600 GMT Monday, setting out what Washington will charge for doing business with the United States. He said an extra 10 percent would be added to any country "aligning themselves with the Anti-American policies of BRICS", an 11-member alliance including Brazil, Russia, India and China. The announcement came after leaders of the group warned Trump's "indiscriminate" import tariffs risked hurting the global economy. The deadline for a deal is Wednesday, but Treasury Secretary Scott Bessent confirmed on Sunday that the measures would not be applied until August 1. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," Bessent told CNN. He said the rates will then "boomerang back" to the sometimes very high levels Trump announced on April 2, before the president suspended the levies to allow for trade talks. "I would expect to see several big announcements over the next couple of days," Bessent said. The president told reporters Sunday on Air Force One that "I think we'll have most countries done by July 9, either a letter or a deal", adding that some deals have already been made. Tariff uncertainty weighed on equity markets, with Tokyo, Hong Kong, Shanghai, Sydney, Wellington and Taipei all down, though there were small gains in Singapore, Seoul, Manila and Jakarta. Wall Street was closed Friday for a holiday. "Whether deadlines get extended remains uncertain given Trump's unpredictable style," said IG market analyst Fabien Yip. "Our base case expects several important trade partners to agree on a high-level basis before the deadline. "This would provide more time for detailed discussions over the following two months. The other risk factor is sector-specific tariffs covering semiconductors, pharmaceuticals, and materials may also be announced in due course." Oil prices sank after Saudi Arabia, Russia and other major producers in the OPEC+ alliance said they would boost output far more than expected in August, fuelling demand worries just as Trump's tariffs are about to begin. The group said "a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" led to the decision to further hike output. - Key figures at around 0230 GMT - Tokyo - Nikkei 225: DOWN 0.5 percent at 39,628.41 (break) Hong Kong - Hang Seng Index: DOWN 0.3 percent at 23,842.39 Shanghai - Composite: DOWN 0.1 percent at 3,467.81 West Texas Intermediate: DOWN 1.8 percent at $65.81 per barrel Brent North Sea Crude: DOWN 1.0 percent at $67.61 per barrel Euro/dollar: DOWN at $1.1773 from $1.1783 on Friday Pound/dollar: DOWN at $1.3634 from $1.3641 Dollar/yen: DOWN at 144.51 yen from 144.53 yen Euro/pound: DOWN at 86.34 pence from 86.37 pence New York: Closed for a public holiday London - FTSE 100: FLAT at 8,822.91 (close) dan/rsc 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
Bloomberg
30 minutes ago
- Bloomberg
Germany's $40 Billion Pension Gives Mandate to China Stock Fund
A German pension fund has tapped a Chinese firm's Hong Kong arm to help it invest in local stocks, in a rare move among global allocators that have been cautious about gaining exposure to the nation's equities. KZVK, which manages €34.1 billion ($40 billion), gave $50 million to Fullgoal Asset Management (HK) Ltd. in the second quarter, according to people with knowledge of the matter. The mandate is to invest in Chinese equities listed in Hong Kong, the mainland and the US, the people said, asking not to be identified as the information is private.
Yahoo
an hour ago
- Yahoo
China wants AI in expanded trade deal with Australia
Strengthening ties between Chinese and Australian artificial intelligence researchers could be on the agenda when the prime minister visits China this week, as Beijing seeks to capitalise on trade tensions with the US. With President Donald Trump's tariffs straining relations with Australia's traditionally closest ally, China's top diplomat in Australia Xiao Qian has called for greater collaboration in fields like AI, healthcare and green energy under a revised free-trade deal between the two nations. Prime Minister Anthony Albanese's visit to China on Saturday comes as the Sino-Australian relationship continues to build following a downturn in relations under former Liberal prime minister Scott Morrison. "China and Australia are natural partners with complementary economic strengths," Mr Xiao wrote in an opinion piece published in the Australian Financial Review on Monday. "Standing at a new historical starting point, now is the time to advance bilateral relations with steady progress." Trade volumes between the two nations have bounced back after China lifted sanctions on Australian exports. The ambassador believes Mr Albanese's visit marks an opportunity to broaden the terms of the 10-year-old free-trade agreement. "We are willing to review the agreement with a more open attitude and higher standard, further consolidate co-operation in traditional areas such as agriculture and mining, and actively explore new growth areas in emerging fields like artificial intelligence, healthcare, green energy, and the digital economy, elevating practical co-operation to new heights," Mr Xiao wrote. The promotion of AI ties, amid the Albanese government's agenda to boost productivity, follows similar provisions in recently signed trade deals between Australia and partners such as Singapore, the UK and the UAE. These clauses encourage sharing AI research and commercialisation opportunities between the countries, as well as promoting its responsible use. There are attractive opportunities to deepen research collaboration in the fundamental science of AI, even though there are challenges to expanding the use of Chinese AI programs in Australia, said UNSW Professor Toby Walsh. "It's going to be very hard for us to have too deep relationships within terms of AI, because you can touch upon things like data sovereignty and various other things that we value," the AI expert told AAP. "It's not like just sending them gold and they take it, and that's the end of the partnership. "Sharing technologies like AI could pose significant national security and other risks." Allowing Chinese tech companies access to the Australian market has been a sore spot in the bilateral relationship. In 2018, then-Liberal prime minister Malcolm Turnbull banned the Chinese tech giant Huawei from developing 5G infrastructure in Australia over concerns the Chinese government could force the company to hand over Australians' data or interfere with the network. The decision prompted strenuous protests from Beijing and was a factor behind a subsequent diplomatic fallout. Prof Walsh said there were still areas where collaboration could be beneficial without forfeiting Australian security. "It's about exchanging people, it's training, it's us going to work with them and them coming to work with us," he said. "So it's things that we've always done in terms of scientific exchange, supercharging our science, supercharging their science, and then building our own business off the back of that scientific knowledge. "China will be interested in partnering with us. "We have wonderful medical data, and we have a joined-up healthcare system. "There's huge value in those national data sets we have that no one else has." As the US drives a wedge through a fragmenting global order, Mr Xiao framed China as a like-minded partner for Australia - one that shares Australia's interests in pushing back against unilateralism and protectionism. China is willing to work with Australia to strengthen multilateral organisations like the United Nations and ASEAN, safeguard regional peace and the international rules-based order, and advocate for free trade, the ambassador said. Assistant Trade Minister Matt Thistlethwaite said the government was seeking to strengthen access to China - Australia's largest trading partner - in the best interests of Australians.
