Nintendo Q1 profit grows 4%, beating estimates
The Kyoto-based gaming company said it sold 5.82 million units of the Switch 2, which went on sale on June 5, during the quarter.
The successor to the hit home-portable Switch gaming device launched in the midst of U.S Donald Trump's trade war, testing Nintendo's supply chain management.
Nintendo maintained its full-year sales forecast of 15 million Switch 2 units.
($1 = 150.5800 yen)
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Business Times
an hour ago
- Business Times
World economies reel from Trump's tariffs punch
[WASHINGTON] Global markets reeled on Friday (Aug 1) after US President Donald Trump's tariffs barrage against nearly all US trading partners as governments looked down the barrel of a seven-day deadline before higher duties take effect. Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41 per cent. However, implementation will be on Aug 7 rather than on Friday as previously announced, the White House said. This gives governments a window to rush to strike deals with Washington, setting more favourable conditions. Neighbouring Canada, one of the biggest US trade partners, was hit with 35 per cent levies, up from 25 per cent, effective Friday, but with wide-ranging, current exemptions remaining in place. The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports. But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries. Trump's actions come as debate rages over how best to steer the US economy, with the US Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut. Data Friday showed US job growth missing expectations for July, while unemployment ticked up to 4.2 per cent from 4.1 per cent. On Wall Street, the S&P 500 dropped 1.6 per cent, while the Nasdaq tumbled 2.2 per cent. Political goals Trump raised duties on around 70 economies, from a current 10 per cent level imposed in April when he unleashed 'reciprocal' tariffs, citing unfair trade practices. The new, steeper levels listed in an executive order vary by trading partner. Any goods 'transshipped' through other jurisdictions to avoid US duties would be hit with an additional 40 per cent tariff, the order said. But Trump's duties also have a distinctly political flavour, with the president using separate tariffs to pressure Brazil to drop the trial of his far-right ally, former president Jair Bolsonaro. He also warned of trade consequences for Canada, which faces a different set of duties, after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September. In targeting Canada, the White House cited its failure to 'cooperate in curbing the ongoing flood of fentanyl and other illicit drugs', although Canada is not a major source of illegal narcotics. By contrast, Trump gave more time to Mexico, delaying for 90 days a threat to increase its tariffs from 25 to 30 per cent. But exemptions remain for a wide range of Canadian and Mexican goods entering the United States under an existing North American trade pact. Carney said that his government was 'disappointed' with the latest rates hike but noted that with exclusions, the US average tariff on Canadian goods remains one of the lowest among US trading partners. 'Tears up' rule book With questions hanging over the effectiveness of bilateral trade deals struck, including with the EU and Japan, the outcome of Trump's overall plan remains uncertain. 'No doubt about it, the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II,' said Wendy Cutler, senior vice president of the Asia Society Policy Institute. On Friday, Trump said that he would consider distributing a tariff 'dividend' to Americans. Notably excluded from Friday's drama was China, which is in the midst of negotiations with the United States. Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but have agreed to temporarily lower these duties and are working to extend their truce. Those who managed to strike deals with Washington to avert steeper threatened levies included Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union. Among other tariff levels adjusted in Trump's latest order, Switzerland now faces a higher 39 per cent duty. AFP
Business Times
2 hours ago
- Business Times
Trump momentum drives stablecoin urgency in Asian financial hubs
[MUMBAI] Asian markets are hurriedly updating their stablecoin rules as US President Donald Trump's embrace of US dollar-pegged cryptocurrencies instils a fresh sense of urgency among the region's authorities. Recent developments in South Korea, Hong Kong, Malaysia, Thailand and the Philippines point to a proliferation of stablecoins pegged to Asian currencies, even as authorities raise concerns about capital outflows. Regional heavyweights including and Ant Group plan to capitalise by applying to become issuers. Shares in Kakaopay ballooned on expectations that it would do the same. Even China, which has for years imposed a sweeping crypto ban, appears to be warming to the notion of tokens that serve as yuan surrogates. It all stems from the US, where lawmakers recently passed legislation that will promote wider use of digital tokens that seek to maintain a 1:1 peg with the US dollar. The White House earmarked US dollar stablecoins as a priority in a January executive order, days after Trump's inauguration. 'The Genius Act has opened the floodgates for stablecoin adoption,' said Benjamin Grolimund, General Manager for the UAE at crypto exchange Flipster. 'Whether you support it or not, stablecoins are now unavoidable.' Overhanging Asia's flurry of activity is the fear of capital flight. The US dollar reigns supreme in today's stablecoin market, with US$256 billion in tokens pegged to the greenback. These maintain their price by managing reserves of cash-like assets, such as US Treasuries. By contrast, there's just US$403 million of euro-backed stablecoins in circulation, despite a well established regulatory framework covering such products in the form of the Markets in Crypto-Assets Regulation regime. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The crypto-curious nation of South Korea offers a case in point. South Koreans are already trading piling into dollar-pegged stablecoins. Transactions involving USDT, USDC and USDS, three of the largest US dollar proxies, on five domestic exchanges reached 57 trillion won (S$53 billion) in the first quarter, Yonhap News reported, citing Bank of Korea data. Local lawmakers in recent weeks clashed with the central bank over whether to allow Korean companies to issue won-based stablecoins. President Lee Jae-myung's ruling Democratic Party on Jun 10 proposed the Digital Asset Basic Act, creating a pathway for local firms to become issuers. Two weeks later, Ryoo Sangdai, senior deputy governor at the Bank of Korea, warned that stablecoins may shift the country's longstanding policy stance on capital liberalisation and the won's internationalisation. Central bank governor Rhee Chang Yong went further, arguing that non-bank stablecoins would 'cause big chaos like in the 19th century', when currencies issued by the private sector flooded the market. 'Local stablecoins, while offering regulatory visibility at the point of issuance, carry the risk of becoming efficient bridges to global markets through seamless crypto-to-crypto swaps on decentralised exchanges,' said John Park, head of Korea at Arbitrum Foundation. Asian central banks need to find ways to channel the momentum, rather than fighting it, Park said. Regulatory frameworks should aim to preserve sovereignty while staying competitive, he added. Streamlined trading For digital-asset trading firms, a more diverse stablecoin market is a no-brainer. 'Capital controls are a challenge,' said Yoann Turpin, co-founder of crypto market maker Wintermute. 'But stablecoins could provide a vetted, more efficient on-chain system.' Such a setup could streamline arbitrage trades across venues or between markets without the constraint of foreign exchange market hours, said Le Shi, Hong Kong managing director at market making firm Auros. 'There's a real use case for local currency stablecoins, particularly for enabling weekend liquidity and smoother capital movement.' Another possibility is that the growth of local stablecoins could enliven crypto economies in Asia. In South Korea, an estimated 18 million people, over a third of the country's population, are engaged in digital assets. Sam Seo, chairman of the Kaia DLT Foundation, said a won-backed stablecoin would serve different needs than US dollar alternatives. 'In the short term, swaps between the won and USDT will dominate. But longer term, we will need stablecoins from other countries to support direct pairings and faster settlement,' Seo said. Hong Kong, meanwhile, has quickly become the region's stablecoin laboratory. The Hong Kong Monetary Authority is particularly focused on 'viable and practical use cases', not just capital buffers, Clara Chiu, founder of QReg Advisory, said. Many of the issuers that have taken an interest in yuan-backed stablecoins are trading and payment firms that are already using the yuan in cross-border settlement. 'That's where the practical demand lies,' Chiu added. Mainland interest While China's next steps are far from certain, crypto firms including brokers are already preparing for the prospect of yuan-pegged stablecoins. Kennix Chan, vice-president at Victory Securities, said the firm is in active talks with a range of would-be issuers in Hong Kong. The firm's affiliate, VDX, is close to securing a license to operate a digital-asset exchange, according to Chan, allowing it to offer new trading pairs – such as Bitcoin against stablecoins pegged to the Hong Kong dollar – and eventually yuan-backed equivalents. 'When a yuan-stablecoin is born, the market will definitely be exponentially bigger,' Chan said. Despite its blanket crypto trading ban, China appears to be warming to blockchain as a financial tool. People's Bank of China governor Pan Gongsheng said in June that stablecoins could revolutionise international finance, as rising geopolitical tensions highlight the fragility of traditional payment systems. A recent licensing upgrade granted for a major Chinese state-owned brokerage to deal in digital assets through Hong Kong has also stirred optimism among Chinese players. 'It gave hope that there's a way,' Chiu said. Still, few expect Beijing to open its doors to crypto trading anytime soon. Lily King, chief operating officer at digital-asset custodian Cobo, said that Hong Kong will continue to serve as a testing ground for Chinese enterprises looking to build overseas. 'China may not feel the need to open itself,' she added. BLOOMBERG
Straits Times
3 hours ago
- Straits Times
‘Not chickened out': Trump stakes reputation as dealmaker with tariff policy
Sign up now: Get ST's newsletters delivered to your inbox US President Donald Trump boarding Air Force One on his way to New Jersey on Aug 1. WASHINGTON - Donald Trump is staking his reputation as a tough negotiator and slick dealmaker – that has served him well throughout his life – with his ultra-muscular, protectionist tariffs policy. On Aug 1, the White House released a picture of the US president seen with a smartphone pressed to his ear, with the caption: 'Making calls. Making deals. MAKING AMERICA GREAT AGAIN!' Every trade deal announced by the president, who is convinced that tariffs are both a tool and manifestation of America's economic might, is celebrated by his supporters as a show of his negotiating prowess. This week's flurry of rate changes was no different. On July 31, with the stroke of a black marker, the former real estate developer slapped fresh tariffs on dozens of US trade partners . They will kick in on Aug 7 instead of Aug 1, which had previously been touted as a hard deadline. The Republican leader's backtracking, frequently setting trade deadlines only to rescind or extend them – he most recently granted Mexico a 90-day extension – has given rise to the mocking acronym 'Taco' ('Trump always chickens out'). Top stories Swipe. Select. Stay informed. Singapore New vehicular bridge connecting Punggol Central and Seletar Link to open on Aug 3 Singapore Tengah facility with over 40 animal shelters, businesses hit by ticks Singapore 60 years of building Singapore Asia 'Every day, we think about how to upgrade': China's factories see rise in robot adoption Singapore Sheng Siong to open first store in Orchard by end-August Sport Spurs captain Son Heung-min says he is leaving the English Premier League club Life Tastemakers: Burnt-out serial entrepreneur cooks up $16m success with Lau Wang Claypot Delights Asia 'This isn't some concubine selection': Why matchmaking events for rich Chinese have drawn flak The jokes implying Mr Trump is all talk and no action on trade have previously struck a nerve for the president. 'Not chicken' But analysts believe there will be no going back this time. Mr Trump has 'not chickened out,' according to Mr Josh Lipsky, an international economics expert at the Atlantic Council think tank. He told AFP the president is 'following through, if not exceeding' what he vowed during his campaign in respect to tariffs. Mr Matthew Aks, a public policy analyst at Evercore ISI, said he did not anticipate a 'massive shift' on the latest order, aside from some economies like Taiwan or India striking deals during the seven-day buffer. Following crunch negotiations leading up to the tariffs announcement, Mr Trump struck a series of compromises, notably with the European Union, Japan, and South Korea, setting varying tax rates and touting high investments in the United States. The details of these agreements remain vague and leave the door open to key questions: Are exemptions possible? What will become of key sectors like automobiles, pharmaceuticals, semiconductors? And what of China? The US president and leaders of other countries 'have reasons to avoid going into detailed agreements' explained Mr Aks, allowing all sides to present the deals in the most positive, or least negative, way possible to their public. The ability to conclude deals – often with or without crucial detail – is, for the 79-year-old Republican, an integral part of his political signature. 'Art form' In his book The Art Of The Deal, the billionaire wrote: 'Deals are my art form. Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals. That's how I get my kicks.' He explained in his book that he always 'protects' himself 'by being flexible'. 'I never get too attached to one deal or one approach.' But despite comments about his trade policy reversals, Mr Trump has hardly budged from his trade strategy, and that could prove politically painful. In a survey conducted by Quinnipiac University published in mid-July, only 40 per cent of respondents said they supported the president's trade policy, while 56 per cent criticised it. The latest employment figures bear the marks of Mr Trump's protectionist offensive, according to experts. Job creation in May and June was revised sharply downward, falling to levels not seen since the Covid-19 pandemic. AFP
