Asia stocks edge up as US-Canada trade talks resume, dollar dips ahead of jobs data
Canada on Sunday said it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from President Donald Trump.
The talks aim to finalise a deal by July 21, extending Trump's original July 9 deadline for his 'reciprocal' tariffs. Officials have suggested most deals could be done by the September 1 Labor Day holiday.
Investors are also keeping a wary eye on the progress of a massive US tax-cutting and spending bill slowly making its way through the Senate, with signs it may not meet Trump's preferred July 4 deadline.
The Congressional Budget Office estimated the bill would add US$3.3 trillion (RM13.9 trillion) to the country's debt, testing foreign appetite for US Treasuries.
There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.4 per cent, while S&P 500 e-minis added 0.3 per cent.
Eurostoxx 50 futures rose 0.2 per cent, while FTSE futures were flat and DAX futures gained 0.3 per cent.
The bullish sentiment spilled over into Japan's Nikkei, which rose 1.6 per cent, while South Korean stocks gained 0.8 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent.
Chinese blue chips edged up 0.2 per cent, as surveys showed manufacturing improved slightly in June while service activity picked up.
A holiday on Friday means US payrolls are a day early, with analysts forecasting a rise of 110,000 in June and the jobless rate ticking up to the highest in almost a year at 4.3 per cent.
The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September.
'While initial jobless claims retreated somewhat from their recent high, continuing claims jumped higher yet again,' noted Michael Feroli, head of US economics at JPMorgan. 'Consumers' assessment of labour market conditions also deteriorated in the latest confidence report.'
'Both of these developments suggest that the unemployment rate in June should tick up to 4.3 per cent, with a significant risk of reaching 4.4 per cent.'
The latter outcome would likely see futures push up the chance of a July easing from the current 18 per cent and price in more than the present 63 basis points of cuts for this year.
Dollar coldrums
Fed Chair Jerome Powell will have an opportunity to repeat his cautious outlook when he joins several other central bank chiefs at the European Central Bank forum in Sintra on Tuesday.
The prospect of an eventual policy easing has helped Treasuries weather worries about the US budget deficit and the huge amount of borrowing it entails.
Yields on 10-year Treasuries were steady at 3.28 per cent, having fallen 9 basis points last week.
The dollar has not fared as well, partly due to concerns that tariffs and chaotic policies from the White House will drag on economic growth and erode the country's claim to exceptionalism.
The euro hovered near its highest since September 2021 at US$1.1727, having climbed 1.7 per cent last week, while sterling stood near a similar peak at US$1.3722.
The dollar was down 0.3 per cent on the yen at 144.14, and slipped 0.1 per cent on the Canadian dollar to 1.3665 following the trade news. The dollar index eased to 97.146.
James Reilly, a senior markets economist at Capital Economics, noted the dollar had fallen more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973.
'At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move,' he added.
'So, we suspect that this could be a pivotal period for the greenback — either it turns around here or there is another 5 per cent or so fall around the corner.'
Commodities
In commodity markets, the general revival in risk sentiment has undermined gold, which hovered at US$3,279 an ounce and further away from April's record top of US$3,500.
Oil prices continued to struggle on concerns about plans for increased output from Opec+, which contributed to a 12 per cent slide last week.
Brent dropped a further 27 cents to US$67.50 a barrel, while US crude eased 43 cents to US$65.09 per barrel. — Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
4 minutes ago
- Free Malaysia Today
O&G consultant loses RM2.7mil to ‘Nova 88' investment scam
The victim realised he had been duped when each attempt to withdraw his purported profits required additional payments. PETALING JAYA : An oil and gas consultant in Perak lost over RM2.7 million to a non-existent investment scheme advertised on a website. Perak police chief Noor Hisam Nordin said the 37-year-old man lodged a report on June 29 at the Ipoh police headquarters, claiming he had been scammed through an online investment platform known as 'Nova 88'. He said preliminary investigations found the victim had registered an account on the website in April 2023 through a contact, now the main suspect, whom he had met via WhatsApp. The victim made an initial deposit of RM30,000 and was then given a user ID and password to monitor the supposed investment. 'Between Jan 5, 2024, and May 20, 2025, the victim made 136 fund transfers to seven different accounts, totalling RM2,701,687. 'The funds came from his savings and contributions from family members,' Bernama reported Noor Hisam as saying. He said the victim realised he had been duped when each attempt to withdraw his purported profits required additional payments. To date, he has been unable to access any returns, with the suspect having offered numerous excuses before eventually becoming unreachable. The case is being investigated under Section 420 of the Penal Code for cheating. Noor Hisam advised the public to avoid any form of investment offered through unlicensed, unregistered or unregulated websites. 'Such investments carry high risks and can lead to significant financial losses. Always verify the background of any investment company with recognised authorities such as Bank Negara Malaysia or the Securities Commission,' he said.
New Straits Times
14 minutes ago
- New Straits Times
Republicans push ahead with Trump's US$4.5 trillion 'mega-bill' amid backlash
WASHINGTON: US senators raced towards a final vote Tuesday on President Donald Trump's mammoth domestic policy bill, as Republicans voiced lingering misgivings over deep welfare cuts it proposes and the US$3 trillion it will pile onto the national debt. Republican leaders had struggled to corral support during a record 24-hour "vote-a-rama" amendment session on the Senate floor, as Democrats offered dozens of challenges to the most unpopular aspects of the divisive package. But Republican Senate Majority Leader John Thune voiced tentative confidence mid-morning that he had achieved a breakthrough. Asked if Republican leaders had a deal to move ahead in the coming hours with a vote on final passage, Thune told reporters: "I believe we do." "I'm of Scandinavian heritage, so always a bit of a realist," he added. "So we'll see what happens." Trump's "One Big Beautiful Bill" proposes a US$4.5 trillion extension of his first term tax cuts, contentiously offset with US$1.2 trillion in cuts mainly to health care coverage for low-income Americans that will leave an estimated 12 million uninsured. It also rolls back billions of dollars in green energy tax credits while providing a US$350 billion infusion for border security and Trump's mass deportation program. The president made clear that the goal remains to sign the package into law by Friday's Independence Day holiday, although he acknowledged that the self-imposed deadline could slip. "It's going to get in, it's going to pass, and we're going to be very happy," he told reporters as arrived in Florida for trip to view migrant detention facilities. Polls show the bill is among the most unpopular ever considered across multiple demographic, age and income groups, and Democrats hope to leverage public anger ahead of the 2026 midterm elections when they aim to retake the House. Backed by extensive independent analysis, they say the bill's tax cuts would disproportionately benefit the wealthy at the expense of social safety net programs for the poorest Americans. "It's bad legislation," Arizona senator Mark Kelly told MSNBC. "If this passes, this is a political gift for Democrats." A handful of senators in the Republican majority had also threatened to upset the apple cart, echoing Democratic concerns that the bill would add more than US$3.3 trillion to the nation's already yawning budget deficits over a decade. The most high-profile opposition has come from outside Congress, however, in the shape of tech billionaire and estranged former Trump aide Elon Musk, who balked at the bill's debt implications and stripping of clean energy subsidies. In a dramatic reignition of his feud with Trump, Musk vowed to launch a new political party to challenge lawmakers who campaigned on reduced federal spending only to vote for the bill. Musk – whose businesses include rocket company and government contractor SpaceX, which has about US$22 billion in federal contracts – has been campaigning against the bill since quitting as a Trump advisor in May. A furious Trump on Tuesday said he would consider deporting Musk and ending federal funds for his companies. "Elon may get more subsidy than any human being in history, by far," Trump posted in a retort on social media, "and without subsidies, Elon would probably have to close up shop and head back home to South Africa." Although the House of Representatives has already passed their own version of the bill, it will have to come back to the lower chamber for a final rubber stamp before it reaches Trump's desk. House Republicans were watching anxiously from the sidelines to see if their Senate colleagues would adopt changes that would be hard for Speaker Mike Johnson to sell to his lawmakers. Fiscal hawks in the lower chamber are furious at what they say is US$651 billion of extra deficit spending in the Senate's tweaks. A House vote could come as early as Wednesday but even with full attendance, House Republicans can only afford to lose three votes.
Malay Mail
an hour ago
- Malay Mail
CyCraft Launches XecGuard: LLM Firewall for Trustworthy AI
CyCraft Co-Founders (from left to right): Benson Wu (CEO), Jeremy Chiu (CTO), and PK Tsung (CISO) are leading the mission to build the world's most advanced AI security platform. Even small models gain enterprise-level defenses, approaching large commercial-grade performance. TAIPEI, TAIWAN - Media OutReach Newswire - 1 July 2025 - CyCraft, a leading AI cybersecurity firm, today announced the global launch of XecGuard, the industry's first plug-and-play LoRA security module purpose-built to defend Large Language Models (LLMs). XecGuard's introduction marks a pivotal moment for secure, trustworthy AI, addressing the critical security challenges posed by the rapid adoption of transformative power of Large Language Models (LLMs) brings significant security uncertainty, requiring enterprises to urgently safeguard their AI models from malicious attacks like prompt injection, prompt extraction, and jailbreak attempts. Historically, AI security has been an "optional add-on" rather than a fundamental feature, leaving valuable AI and data exposed. This oversight can compromise sensitive data, undermine service stability, and erode customer trust. CyCraft emphasizes that "AI security must be a standard feature—not an optional add-on," believing it's paramount for delivering stable and trustworthy intelligent need for immediate and effective AI security is more critical than ever before. As AI becomes increasingly embedded in core business operations, the attack surface expands exponentially, making proactive defenses an absolute necessity. CyCraft has leveraged its extensive "battle-tested expertise across critical domains—including government, finance, and high-tech manufacturing" to precisely address these emerging AI-specific threats. The development of XecGuard signifies a shift from "using AI to tackle cybersecurity challenges" to now "using AI to protect AI" , ensuring that security and resilience are embedded from day one."AI security must be a standard feature—not an optional add-on," stated Benson Wu, CEO, highlighting XecGuard's resilience and integration of experience from defending critical sectors. Jeremy Chiu, CTO and Co-Founder, emphasized, "In the past, we used AI to tackle cybersecurity challenges; now, we're using AI to protect AI," adding that XecGuard enables enterprises to confidently adopt AI and deliver trustworthy services. PK Tsung, CISO, concluded, "With XecGuard, we're empowering enterprises to embed security and resilience from day one" as part of their vision for the world's most advanced AI security leads with the global launch of XecGuard, the industry's first plug-and-play LoRA security module purpose-built to defend LLMs. XecGuard provides robust protection against prompt injection, prompt extraction, and jailbreak attacks, ensuring enterprise-grade resilience for AI models. Its seamless deployment allows instant integration with any LLM without architectural modification, delivering powerful autonomous defense out of the box. XecGuard is available as a SaaS, an OpenAI-compatible LLM firewall on your cloud (e.g., AWS or Cloudflare Workers AI), or an embedded firewall for on-premises, NVIDIA-powered custom LLM servers. Rigorously validated on major open-source models like Llama 3B, Qwen3 4B, Gemma3 4B, and DeepSeek 8B, it consistently improves security resilience while preserving core performance, enabling even small models to achieve protection comparable to large commercial-grade validation through collaboration with APMIC, an NVIDIA partner, integrated XecGuard into the F1 open-source model, demonstrating an average 17.3% improvement in overall security defense scores and up to 30.1% in specific attack scenarios via LLM Red Teaming exercises. With XecGuard and the Safety LLM service, CyCraft delivers enterprise-grade AI security, accelerating the adoption of resilient and trustworthy AI across industries, empowering organizations to deploy AI securely, protect sensitive data, and drive innovation with learn more about how XecGuard can protect your LLMs and to request a demo, visit: Hashtag: #CyCraft #LLMFirewall #AISecurity The issuer is solely responsible for the content of this announcement. About CyCraft Technology CyCraft is a leading AI-driven cybersecurity company in the Asia-Pacific region. Trusted by hundreds of organizations in defense, finance, and semiconductor industries, our AI is designed to prevent, preempt, and protect against cyber threats. Our expertise has been recognized by top-tier institutions like Gartner and IDC and showcased at prestigious global conferences, including Black Hat, DEFCON, EMNLP, and Code Blue.
