Asian shares mostly gain after big tech rally on Wall Street
Asian shares mostly gained on Thursday after a rally in U.S. tech stocks lifted the Nasdaq to an all-time high and helped Wall Street claw back most of its losses from earlier in the week.
South Korea's Kospi climbed 1% to 3,164.26 after the Bank of Korea kept its benchmark interest rate unchanged and as semiconductor shares rose following Nvidia's overnight rally on Wall Street.
Tokyo's Nikkei 225 fell 0.6 % to 39,583.78, while the Hang Seng in Hong Kong added 0.1% to 23,926.09.
The Shanghai Composite index rose 0.4% to 3,505.58 while Australia's S&P/ASX 200 climbed 0.6% to 8,589.70.
The dollar weakened against the Japanese yen and euro and oil prices dropped.
On Wall Street on Wednesday, the S&P 500 rose 0.6% for its first gain this week. The benchmark index remains near the record it set last week after a better-than-expected U.S. jobs report.
The Dow Jones Industrial Average added 0.5%. The Nasdaq composite, which is heavily weighted with technology stocks, closed 0.9% higher. The gain was good enough to nudge the index past the record high it set last Thursday.
Nvidia rose 1.8% and became the first public company to exceed $4 trillion in value after its share price briefly topped $164 each in the early going. Shares in the AI boom poster child were going for around $14 per share at the start of 2023.
The tech rally came as Wall Street continued to weigh the latest developments in President Donald Trump's renewed push this week to use threats of higher tariffs on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe, with the window for negotiations extended to Aug. 1.
In other dealings on Thursday, benchmark U.S. crude lost 6 cents to $68.32 per barrel. Brent crude, the international standard, shed 8 cents to $70.14 per barrel.
The dollar was trading at 146.21 Japanese yen, down from 146.26 yen. The euro rose to $1.1736 from $1.1723.
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Japan Times
25 minutes ago
- Japan Times
Trump tariffs not broached in two ASEAN-related meetings with U.S. officials
Days after Southeast Asian foreign ministers and officials expressed strong concerns over U.S. President Donald Trump's tariff moves, the same top diplomats were conspicuously mum on the issue following related meetings with the United States' top diplomat. In meetings in Kuala Lumpur on Friday of the Association of Southeast Asian Nations' (ASEAN) East Asian Summit (EAS) and the ASEAN Regional Forum (ARF), top diplomats did not touch on the sweeping U.S. tariffs — or even broach the issue of trade — according to summaries of the talks released by chair Malaysia the same day. According to the EAS summary, the ministers 'expressed support for deeper engagement across all pillars of the EAS, calling for continued focus on results-driven cooperation.' The 18-member EAS forum, established in 2005, plays 'a pivotal role in shaping the Indo-Pacific's strategic and economic landscape,' according to the chair. But while it said the meeting 'also served as a platform for candid exchanges on pressing regional and international issues,' the lack of any mention of trade concerns was glaring — especially after reports that both emerging and industrialized economies are now seeking to diversify partnerships to weather the U.S. tariff storm. The forum, which brings together not only Southeast Asian countries but also partners such as Japan, the U.S., Canada, Russia, Australia, South Korea and India, accounted for over half of the global economy with a combined nominal gross domestic product of about $68 trillion, according to Malaysian Foreign Minister Mohamad Hasan, who chaired the event. The issue was also not mentioned in the summary for the ARF meeting, which was attended by 26 members and has traditionally focused on 'political and security issues of common interest and concern.' It was not immediately clear if the tariff or trade issues would be mentioned in a final statement released by the meetings' chair. The gatherings took place on the second day of gatherings between ASEAN members and major political and trading partners, with the first day seeing the top diplomats of China and the United States vying for support in separate meetings with the 10-member bloc. This comes as Trump continues to send out letters to countries across the globe announcing new tariff rates that would go into effect on Aug. 1, a move that, if implemented, could represent a blow for the economic ambitions of many export-driven economies, particularly in Asia. Trump announced hefty unilateral levies of between 25% and 40% on six Southeast Asian countries, as well as 25% tariffs on Japan and South Korea. Among Southeast Asian nations, Vietnam has so far secured a deal, which lowers the levy from an initial 46% to 20%. Compounding the issue, though, is that Washington has already threatened an additional 10% on tariffs on countries aligned with the BRICS grouping of major emerging economies. Indonesia is a full member of BRICS, while Malaysia, Thailand and Vietnam are partner countries. Unlike at the EAS and ARF, which were both attended by U.S. Secretary of State Marco Rubio, ASEAN foreign ministers on Friday 'expressed concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs.' In a joint statement covering their meeting earlier this week, the ministers did not specifically mention the U.S., but called tariffs 'counterproductive,' saying they 'risk exacerbating global economic fragmentation and pose complex challenges to ASEAN's economic stability and growth.' 'We underscored the importance of a predictable, transparent, inclusive, free, fair, sustainable and rules-based multilateral trading system, with the World Trade Organization (WTO) at its core,' the joint statement said. 'We reaffirmed our commitment to work constructively with all partners to this end.' Rubio, who was on his first visit to Asia in his current role, had earlier said his visit was meant to highlight that the region remains a 'focal point' of U.S. foreign policy and that Washington will remain 'very committed.' Chinese Foreign Minister Wang Yi attends the ASEAN Regional Forum in Kuala Lumpur on Friday. | REUTERS On Friday, the top U.S. diplomat said he was not worried that the tariffs against ASEAN nations could backfire on Washington, including pushing those countries closer to U.S. rival China. 'No, I'm not concerned about that,' he said. 'That's not going to happen, because these tariffs are being applied on a global scale. These are not aimed at one country or one region. It's all around the world.' Defending his boss's tariff policy, Rubio said that 'the trade deficit the U.S. was running with too many countries was simply unsustainable. We had to address it.' Asked if the tariff campaign could create an opening for China to be seen as the stable economic partner, Rubio was dismissive. 'We don't view this as an opening for anyone. We don't view it that way. We view it as an opportunity to reset global trade in a way that's fair for Americans after two or three decades of unfairness,' he said. 'I think countries understand that,' he added. Chinese Foreign Minister Wang Yi, for his part, presented China as the 'most dependable partner' for ASEAN, aiming to conduct 'win-win cooperation' with the bloc and create a high-level free trade network, including through Beijing's Belt and Road initiative. China and ASEAN are each other's largest trading partners. The two sides have concluded talks on an upgraded free-trade deal that's ready to be signed later this year and will cover new areas such as digital and green economy and supply-chain connectivity. ASEAN has seen its role in the global economy grow, particularly as most member states have undergone a remarkable economic transformation over the past few decades. With a population of almost 700 million, the bloc — which has continuously sought to avoid choosing sides in the intensifying U.S.-China rivalry — is collectively already the world's fifth-largest economy, representing a vast market. But as Beijing seeks to capitalize on growing international concern over U.S. tariffs, the Trump administration is reportedly planning to urge countries to curb trade with China in exchange for reduced or exempted U.S. tariffs. Media reports suggest Washington may also ask nations to raise import tariffs on Chinese goods or reject surplus Chinese exports, in an apparent effort to pressure Beijing to change its trade practices or slow its economic growth. China has warned countries against striking any economic agreements with the U.S. at Beijing's expense. The rising trade tensions and the rivalry between the world's No. 1 and No. 2 economies are driving both developing and industrialized countries to expand and diversify their trading networks. For instance, Canada's top diplomat, Anita Anand, announced Thursday that Ottawa aims to finalize a free trade deal with ASEAN 'as soon as possible.' 'We are diversifying and we are establishing those trade relationships,' Anand told Bloomberg TV as Ottawa seeks to reduce its reliance on the U.S. market as Trump threatened Thursday to impose a 35% tariff on imports from Canada next month. Other countries are already working on similar strategies as the U.S. leader also said he planned to slap blanket tariffs of 15% or 20% on most other trading partners. In April, the six-member Gulf Cooperation Council launched negotiations on a separate free trade pact with ASEAN. The two sides also launched a new dialogue forum with China that could lay the groundwork for new economic and strategic cooperation models that give the Global South a bigger say in global affairs.
Asahi Shimbun
30 minutes ago
- Asahi Shimbun
Rubio and Wang stress cooperation after talks in Malaysia as US-China tensions simmer
US Secretary of State Marco Rubio, front second left, meets with China's Foreign Minister Wang Yi, second right, during the 58th ASEAN Foreign Ministers' meeting and related meetings at the Convention Centre in Kuala Lumpur on July 11. (Mandel Ngan/Pool Photo via AP) KUALA LUMPUR, Malaysia--U.S. Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi agreed Friday to explore 'areas of potential cooperation' between Washington and Beijing, and stressed the importance of managing differences, following their first in-person meeting as they wrapped up a two-day regional security forum in Malaysia. Rubio and Wang met Friday on the sidelines of the Association of Southeast Asian Nations, or ASEAN, regional forum in Kuala Lumpur, Malaysia, as tensions between the two global powers continue to rise over trade, security, and China's support for Russia's war in Ukraine. 'Look, we're two big, powerful countries, and there are always going to be issues that we disagree on,' Rubio told reporters after the meeting. "I think there's some areas of potential cooperation. I thought it was very constructive, positive meeting and a lot of work to do.' Both sides need to build better communications and trust, he said. Rubio also indicated that a potential visit to China by U.S. President Donald Trump to meet with President Xi Jinping was likely, saying: "The odds are high. I think both sides want to see it happen.' China's Foreign Affairs Ministry, in a statement later Friday, echoed Rubio's sentiment, calling the meeting 'positive, pragmatic and constructive.' The statement didn't provide details on specific topics such as tariffs or China's position on the Russia-Ukraine war, but it said that both countries agreed to 'increase communication and dialogue' and 'explore expanding areas of cooperation while managing differences.' Wang called for 'jointly finding a correct way for China and the U.S. to get along in the new era,' it said. While tariffs loomed in the background, Rubio said that trade wasn't a major focus of his talks because 'I'm not the trade negotiator.' 'We certainly appreciate the role trade plays in our bilateral relationships with individual countries. But the bulk of our talks here have been about all the other things that we cooperate on,' he said. The meeting with Wang was held less than 24 hours after Rubio met in Kuala Lumpur with another rival, Russian Foreign Minister Sergey Lavrov, during which they discussed potential new avenues to jumpstart Russia-Ukraine peace talks. The high-level meetings took place amid regional unease over U.S. policies — especially Trump's threats to impose sweeping new tariffs on both allies and adversaries. Southeast Asian leaders voiced concerns, but according to Rubio, many prioritized discussions on security issues, their concerns about Chinese domination and desire for cooperation with the U.S. 'Of course, it's raised. It's an issue,' Rubio said. 'But I wouldn't say it solely defines our relationship with many of these countries. There are a lot of other issues that we work together on, and I think there was great enthusiasm that we were here and that we're a part of this.' European Union foreign policy chief Kaja Kallas warned separately that the U.S.-led trade war could backfire. 'There are no winners in trade wars,' she told reporters. 'If you start a trade war with everyone, you make your partners weaker and China stronger.' Kallas said that the EU doesn't seek retaliation, but has tools available, if necessary. Trump sees China as the biggest threat to the United States in multiple fields, not least technology and trade, and like previous U.S. presidents has watched the country greatly expand its influence globally while turning increasingly assertive in the Indo-Pacific, notably toward its small neighbors over the South China Sea and Taiwan. His administration has warned of major tariffs on Chinese exports, though talks have made little progress. Since former U.S. President Joe Biden was in office, Washington has also accused China of assisting Russia in rebuilding its military industrial sector to help it execute its war against Ukraine. Rubio said the Trump administration shares that view. 'I think the Chinese clearly have been supportive of the Russian effort,' he said. 'They've been willing to help them as much as they can without getting caught.' Rubio and Wang had been shadowboxing during the two-day ASEAN meeting, with each touting the benefits of their partnership to Southeast Asian nations. Rubio has played up cooperation, including signing a civil-nuclear cooperation agreement with Malaysia, while Wang has railed against Trump's threatened tariffs and projected China as a stable counterweight in talks with ASEAN counterparts on the sidelines. 'The U.S. is abusing tariffs, wrecking the free trade system and disrupting the stability of the global supply chain,' Wang told Thai counterpart Maris Sangiampongsa, according to the Chinese Foreign Ministry. In a meeting with Cambodian Deputy Prime Minister Prak Sokhonn, Wang said that the tariffs are 'an attempt to deprive all parties of their legitimate right to development.' He said that 'China is willing to be Cambodia's trustworthy and reliable friend and partner.' Wang also met with Lavrov on Thursday, where the two offered a joint message aimed at Washington. 'Russia and China both support ASEAN's central role in regional cooperation ... and are wary of certain major powers creating divisions and instigating confrontation in the region,' Russia's Foreign Ministry said in a statement. Australian Foreign Minister Penny Wong sided with Rubio's call for a balanced Indo-Pacific, warning that 'no one country should dominate, and no country should be dominated.' But like Kallas, she said that engagement with China remains vital. 'We want to see a region where there is a balance of power ... where there is no coercion or duress,' Wong said. ___ Huizhong Wu in Bangkok, and Eileen Ng in Kuala Lumpur, contributed to this report.
Nikkei Asia
30 minutes ago
- Nikkei Asia
Choco Pie maker smells sweet opportunities in Indonesia
Halal-certified, marshmallow-filled Choco Pies are offered in Indonesia. (Photo by Yume Namekata) YUME NAMEKATA TOKYO -- Japanese dessert maker Lotte has increased production in Indonesia, eyeing a bigger slice of the fast-growing Asian market with products catered to local tastes. Indonesia "boasts the biggest potential of any ASEAN member" for Lotte, President Hideki Nakashima said Tuesday at an event in Indonesia, marking the construction of a factory wing.
