2025-06-06 07:03
June 6 (Reuters) - Asian equities attracted strong foreign inflows in May as concerns over an immediate economic hit from higher U.S. tariffs eased, prompting a return by investors who had previously exited large and concentrated positions in the region. The inflows marked a sharp reversal after four consecutive months of net foreign selling. Sign up here. According to data from LSEG, foreign investors bought approximately $10.65 billion worth of equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines, registering their largest monthly net purchase since February 2024. U.S. President Donald Trump’s announcement of reciprocal tariffs in early April stoked concerns over the impact on Asian exports, exporter margins, and regional supply chains, but a subsequent 90-day pause for most countries later in the month helped ease investor fears and revive interest in regional assets. Goldman Sachs said it has revised its earnings growth forecast for MSCI Asia Pacific ex-Japan (MXAPJ) to 9% for both 2025 and 2026, raising estimates by 2 and 1 percentage points, respectively, citing stronger macro growth in China and U.S.-exposed markets. The upgrade was also supported by $600 billion in AI-related investments from Saudi Arabia to U.S. firms, which are expected to benefit Taiwan and Korea, though the impact may be partially offset by a weaker dollar, the brokerage said. Taiwan equities witnessed $7.28 billion worth of foreign inflows, the largest monthly cross-border net purchase since November 2023. Foreigners also acquired a significant $2.34 billion worth of Indian stocks in their largest monthly net purchase since September 2024. South Korean, Indonesian and Philippine stocks also saw foreign inflows worth a net $885 million, $338 million and $290 million, respectively, while Thai stocks suffered $491 million of net selling. Despite heightened market volatility in the first half of the year driven by concerns over President Trump’s trade policies, the MSCI Asia-Pacific Index (.MIAP00000PUS) , opens new tab has risen about 8.8% year-to-date, outperforming both the MSCI World Index (.MIWD00000PUS) , opens new tab, which is up 5.4%, and the S&P 500 Index (.SPX) , opens new tab, which has gained 0.98%. https://www.reuters.com/business/asian-equities-see-largest-monthly-foreign-inflow-15-months-2025-06-06/
2025-06-06 06:59
NEW DELHI, June 6 (Reuters) - India's incentive scheme for recycling of critical minerals is in the final stages of getting approvals, as the country strives to meet its clean energy goals, according to a mines ministry government document. The scheme, which will includes lithium-ion batteries, will give capex subsidy to eligible recyclers, according to the document shared with reporters at an event. Sign up here. India is planning to launch incentives for the recycling of 24 critical minerals this year, including lithium and cobalt, Reuters reported in April. https://www.reuters.com/sustainability/boards-policy-regulation/india-incentives-critical-minerals-recycling-final-stages-approval-government-2025-06-06/
2025-06-06 06:42
ZURICH, June 6 (Reuters) - The Swiss National Bank said on Friday it would intervene in foreign currency markets where necessary to keep inflation on track after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. The SNB denied being a currency manipulator after the publication of the U.S. Treasury Report on Thursday, but said it would continue to act in Switzerland's interests as the strong franc helped push inflation into negative terrain last month. Sign up here. "The SNB does not engage in any manipulation of the Swiss franc," it said. "It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy." The SNB said it was in contact with U.S. authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions if necessary to pursue its inflation target of 0-2%. Swiss inflation hit a four-year low in May, with prices falling by 0.1%. The SNB declined to say whether further talks with the United States were planned, but said its monetary policy was "geared towards the needs of Switzerland." Switzerland met two of the U.S. Treasury's concerns regarding trade flows and its current account, but not on foreign currency interventions. SNB forex exchange purchases in 2024 were "minimal," Treasury said. In 2024, the SNB bought only $1 billion in foreign currencies, equivalent to only 0.1% of Swiss GDP, well below the Treasury's threshold of 2% of economic output. EFG Bank economist GianLuigi Mandruzzato said the SNB would be mindful of the Treasury report, but still pursue its mandate. "My feeling is that there should be little reason for concern from a Swiss perspective," he said. "However, with the Trump administration, anything can happen." https://www.reuters.com/business/finance/swiss-national-bank-denies-currency-manipulation-after-being-put-us-watch-list-2025-06-06/
2025-06-06 06:38
Brent, WTI poised to finish the week higher U.S. jobs report shows unemployment steady at 4.2% Trade negotiations continue with China U.S. oil, gas rigs hit lowest level since November 2021 HOUSTON, June 6 (Reuters) - Crude rose more than $1 a barrel on Friday, posting its first weekly gain in three weeks after a favorable U.S. jobs report and resumed trade talks between the U.S. and China, raising hopes for growth in the world's two largest economies. Brent crude futures settled at $66.47 a barrel, up $1.13, or 1.73%. U.S. West Texas Intermediate crude finished at $64.58, up $1.21 or 1.91%. Sign up here. Both benchmarks settled with weekly gains after declining for two straight weeks. Brent has advanced 2.75% this week, while WTI is trading 4.9% higher. "I think the jobs report was Goldilocks," said Phil Flynn, senior analyst with the Price Futures Group. "It was not too hot, not too cold but just right to increase the chances for an interest rate cut by the Federal Reserve." The U.S. Labor Department's monthly employment report showed the unemployment rate held steady at 4.2% last month. Employers added 139,000 jobs, which combined with downward revisions to prior months' estimates showed a cooling in labor demand but nothing abrupt; by comparison, monthly job gains averaged 160,000 last year. A rate cut by the U.S. central bank, much desired by President Donald Trump, could boost economic growth and demand for petroleum. "This market had priced in a lot of bad options," said John Kilduff, partner with Again Capital. "None of it has come to pass. OPEC+ held the line. There have been talks between China and the U.S., though the details are sketchy, at least they didn't fly apart like Elon (Musk) and Donald (Trump)." China's official Xinhua news agency said trade talks between Xi and Trump took place at Washington's request on Thursday. Trump said the call had led to a "very positive conclusion", adding the U.S. was "in very good shape with China and the trade deal". The oil market continued to swing with news on tariff negotiations and data showing how trade uncertainty and the impact of the U.S. levies are flowing through into the global economy. On Saturday, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, agreed to ramp up output by a previously announced 411,000 barrels per day (bpd) in July. The group rejected a Saudi recommendation for a bigger output hike, part of a broader strategy to win back market share for OPEC+. "The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+," HSBC said in a note. The U.S. oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021, energy services firm Baker Hughes said on Friday. Oil rigs fell by nine to 442 this week, while gas rigs rose by five to 114, Baker Hughes said. https://www.reuters.com/business/energy/oil-prices-track-solid-weekly-gains-china-us-resume-trade-talks-2025-06-06/
2025-06-06 06:18
Trump and Xi agree to more talks as trade disputes brew US non-farm payroll data due at 1230 GMT Silver hits over 13-year high June 6 (Reuters) - Gold firmed on Friday and was poised for a weekly rise after U.S. data this week boosted hopes of interest rate cuts by the Federal Reserve, while silver hit a more than 13-year high. Spot gold was up 0.2% at $3,359.26 an ounce, as of 1151 GMT. Bullion has gained 2.1% for the week so far. Sign up here. U.S. gold futures climbed 0.2% to $3,382.70. "The disappointing jobless claims data, indicating potential labour market weakness, has had a more substantial impact on gold prices than the optimism stemming from President Trump's call with President Xi," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. U.S. President Donald Trump and Chinese leader Xi Jinping held a rare call on Thursday amid trade tensions and a dispute over critical minerals. The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week, the Labor Department showed Thursday. Markets are now eyeing the upcoming U.S. non-farm payroll report, due at 1230 GMT, after a series of data releases this week signalled softness in the labour market. Economists polled by Reuters forecast non-farm payrolls increased by 130,000 jobs in May, while the unemployment rate is expected to remain steady at 4.2%. "A softening U.S. labour market would likely increase pressure on the Fed to ease monetary policy, especially if payrolls disappoint," Zumpfe added. Gold, traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment. Meanwhile, spot silver fell 0.1% to $36.11 per ounce, after hitting a more than 13-year high earlier in the session, propelled by robust industrial demand and ongoing supply deficits. Platinum rose 2.4% to $1,157.11, its highest level since March 2022, while palladium was up 1.5% at $1,020.75. Gold is struggling really to break higher in the short term, driving investors toward undervalued silver and platinum, said Ole Hansen, head of commodity strategy at Saxo Bank. https://www.reuters.com/world/china/gold-rises-weak-us-data-offsets-optimism-trump-xi-call-2025-06-06/
2025-06-06 06:13
US payrolls data tops forecasts Dollar up against peers Tesla claws back ground after Musk-Trump feud Crude prices register weekly advance amid renewed U.S.-China trade talks NEW YORK, June 6 (Reuters) - U.S. stocks closed sharply higher on Friday and U.S. Treasury yields jumped as a generally upbeat employment report and bounce-back in Tesla (TSLA.O) , opens new tab shares helped the indexes notch weekly advances. All three major U.S. stock indexes surged, while bitcoin jumped and crude prices settled at their highest level since mid-April. Sign up here. "Stocks bounced back nicely today," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "It's a recent theme we've been seeing; the day after a red day has been pretty strong. That's another clue that the bulls are in charge." The U.S. economy added 139,000 jobs in May, topping analysts' expectations, while the unemployment rate held firm at 4.2%, the Labor Department said. The report also showed hotter-than-anticipated wage growth, which is unlikely to convince the U.S. Federal Reserve to cut its key policy rate in the near term. "The headline number was solid, but clearly there is some deterioration and slowing when you peel back the onion," Detrick added. "The reality, though, is the labor market is still growing and the overall economy is still on fairly firm footing. That led to the relief rally to close out a solid week." Tesla stock (TSLA.O) , opens new tab rebounded 3.8% a day after a very public spat between U.S. President Donald Trump and his top advisor, billionaire Elon Musk, sent shares of Musk-helmed Tesla tumbling, which helped drag the indexes decisively lower. The falling out between the erstwhile allies revived concerns over Trump's "Big Beautiful Bill" of tax and spending plans and its effect on the growing deficit. Tariff negotiations between the U.S. and its trading partners remain fluid, with the European Union and India working toward ironing out deals, and further U.S.-China talks promised after Trump's phone call on Thursday with Chinese President Xi Jinping. China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers amid emerging supply chain snags due to Beijing's export curbs on the materials. On the flip side, the United States has suspended licenses for nuclear equipment suppliers to sell to Chinese power plants, according to people familiar with the matter. The Dow Jones Industrial Average (.DJI) , opens new tab rose 443.13 points, or 1.05%, to 42,762.87. The S&P 500 (.SPX) , opens new tab climbed 61.06 points, or 1.03%, to 6,000.36 and the Nasdaq Composite (.IXIC) , opens new tab advanced 231.50 points, or 1.20%, to 19,529.95. European shares followed their U.S. counterparts higher after the jobs report, notching their second consecutive weekly gains, buoyed by upbeat U.S. employment data and waning worries over trade disputes. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 5.27 points, or 0.59%, to 892.10. The pan-European STOXX 600 (.STOXX) , opens new tab index rose 0.32%, while Europe's broad FTSEurofirst 300 index (.FTEU3) , opens new tab rose 7.10 points, or 0.32%. Emerging market stocks (.MSCIEF) , opens new tab rose 0.12 points, or 0.01%, to 1,182.80. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed lower by 0.1%, to 622.63, while Japan's Nikkei (.N225) , opens new tab rose 187.12 points, or 0.50%, to 37,741.61. The dollar rose against major currencies in the wake of the better-than-expected employment data. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.51% to 99.18, with the euro down 0.42% at $1.1396. Against the Japanese yen , the dollar strengthened 0.87% to 144.77. The report also prompted a rally in cryptocurrencies. Bitcoin gained 3.80% to $104,334.11. Ethereum rose 3.7% to $2,487.77. U.S. Treasury yields also rode the wave of the upbeat jobs data. The benchmark U.S. 10-year note yield rose 11.1 basis points to 4.506% from 4.395% late on Thursday. The 30-year bond yield rose 8.2 basis points to 4.9655% from 4.884% late on Thursday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 11.7 basis points to 4.041%, from 3.924% late on Thursday. U.S. crude rose 1.91% to settle at $64.58 per barrel, while Brent settled at $66.47 per barrel, up 1.73% on the day. Gold prices dipped in opposition to the strengthening greenback, as the jobs report clouded the outlook for rate cuts from the Federal Reserve. Spot gold fell 1.27% to $3,310.58 an ounce. U.S. gold futures fell 1.23% to $3,309.50 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-06-06/
