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Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation programme said Thursday.Earlier this week the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China’s dominance in resources vital to new technologies.Rare earths — 17 metals difficult to extract from the Earth’s crust — are used in everything from electric vehicles to hard drives, wind turbines and missiles.China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.A Japanese deep-sea scientific drilling boat called the Chikyu will from January conduct a “test cruise” to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan’s Cross-ministerial Strategic Innovation Promotion Programme.”The test to retrieve the sediments from 5,500 metres (3.4 miles) water depth is the first in the world,” he told AFP.”Our goal… of this cruise is to test the function of all mining equipment,” so the amount of sediment extracted “doesn’t matter at all”, Ishii added.The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific — the easternmost point of Japan, also used as a military base.Japan’s Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks.Each tonne is expected to contain around two kilograms (4.4 pounds) of rare earth minerals, which are often used to make magnets that are essential in modern electronics.Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters.Beijing has since April required licences to export rare earths from China, a move seen as retaliation for US curbs on the import of Chinese goods.Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor.The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting later this month to discuss a global code to regulate mining in the ocean depths.

Stocks mostly rose Thursday and the dollar fell as investors eye US jobs data that could play a key role in the Federal Reserve’s interest rate policy, while investors gave a lukewarm reception to the US-Vietnam trade deal.Attention was also on Washington as Republicans struggled to push Donald Trump’s tax-slashing budget bill through the House of Representatives amid warnings it will inflate an already ballooning national debt.Investors are keenly awaiting the non-farm payrolls figures due later Thursday as they increase bets on Fed rate cuts.The report comes a day after news that the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening.Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting.”Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 percent,” said National Australia Bank’s Taylor Nugent.”It would take more than that to dent (policy board) members’ comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook.”Bets on rates coming down — possibly this month but more likely in September or October — lifted most equities.Tokyo, Shanghai, Singapore, Seoul, Taipei, Manila, Mumbai, Bangkok and Jakarta edged up with London, Paris and Frankfurt.But Hong Kong and Wellington fell while Sydney was flat.There was a muted response to the US-Vietnam trade deal.While the pact provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that Vietnam must still pay tolls of as much as 40 percent for certain exports.With less than a week left until the US president’s July 9 deadline to avoid his “reciprocal” levies, only Britain has signed a deal with the United States while China has agreed a framework that slashed sky-high tit-for-tat levies.The news means Hanoi will avoid paying the 46 percent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.The stock exchanges in Ho Chi Minh City and Hanoi both dipped.Trump said this week he will not push back his deadline to make more deals, though he and some of his officials have said a number were in the pipeline.South Korean President Lee Jae Myung said Thursday his administration was doing its “utmost” to secure an agreement but warned “it’s certainly not easy, that much is clear”.”I can’t say with confidence that we’ll be able to wrap everything up” by the deadline. Still, firms that make goods in Vietnam to ship to the United States enjoyed gains, with Seoul-listed packaged food giant Daesang in the green along with the Hong Kong shares of Nike supplier Yue Yuen. Glover-maker Ansell also edged up in Sydney.US Treasury yields rose amid fresh worries in the bond market over Trump’s “Big, Beautiful Bill” that aims to cut taxes and spending on programmes such as Medicaid.Independent analysis suggests it will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world’s top economy.Still, with some Republicans in the House of Representatives holding out over certain features of the bill, there is talk that lawmakers will not be able to get it to Trump’s desk by the July 4 deadline he has set.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 39,785.90 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)Shanghai – Composite: UP 0.2 percent at 3,461.15 (close)London – FTSE 100: UP 0.5 percent at 8,817.65Euro/dollar: UP at $1.1802 from $1.1801 on WednesdayPound/dollar: UP at $1.3655 from $1.3634Dollar/yen: UP at 143.90 yen from 143.65 yenEuro/pound: DOWN at 86.42 pence from 86.52 penceWest Texas Intermediate: DOWN 0.9 percent at $66.85 per barrelBrent North Sea Crude: DOWN 0.8 percent at $68.54 per barrelNew York – Dow: FLAT at 44,484.42 (close)

Vietnam’s trade deal with the United States averts the most punishing of Donald Trump’s “reciprocal” levies but analysts warned it could provoke a fresh standoff between Washington and Beijing.The Southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president’s “Liberation Day” tariff blitz on April 2.The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords.The 46 percent rate due to take effect next week has been averted, with Vietnam set to face a minimum 20 percent tariff in return for opening its market to US products including cars.But a 40 percent tariff will hit goods passing through the country to circumvent steeper trade barriers — a practice called “transshipping”.Washington has accused Hanoi of relabelling Chinese goods to skirt its tariffs, but raw materials from the world’s number two economy are the lifeblood of Vietnam’s manufacturing industries.”From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China,” said Capital Economics.It said the terms on transshipment “will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over coming days”.- ‘The looming question’ -Shares in clothing companies and sport equipment manufacturers — which have a large footprint in Vietnam — rose on news of the deal in New York.But they later declined sharply as details were released.”This is a much better outcome than a flat 46 percent tariff, but I wouldn’t celebrate just yet,” said Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates.”Everything now depends on how the US decides to interpret and enforce the idea of transshipment,” he added.”If the US takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules.”Vietnam’s government said in a statement late on Wednesday that under the deal the country had promised “preferential market access for US goods, including large-engine cars”.But the statement gave scant detail about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the United States in the medium term, endangering more than two percent of its gross domestic product as a result of the agreement.Uncertainty over how transshipping will be “defined or enforced” is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi.”The looming question now is how China will respond,” she said. “Beijing has made clear that it would respond to deals that came at the expense of Chinese interests.””The decision to agree to a higher tariff on goods deemed to be ‘transshipped’ through Vietnam may fall in that category,” added Sajedi. “Any retaliatory steps could have an outsized impact on Vietnam’s economy.”  

Stocks struggled in Asia on Thursday as investors gave a lukewarm reception to the US-Vietnam trade deal, while the dollar eased ahead of key US jobs data that could impact Federal Reserve interest rates plans.Attention was also on Washington as Republicans struggled to push Donald Trump’s tax-slashing budget bill through the House of Representatives amid warnings it will inflate an already ballooning national debt.While the Vietnam agreement provided hope that other governments can reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40 percent for certain exports.With less than a week left until the US president’s July 9 deadline to hammer out pacts to avoid his “reciprocal” levies, just three countries have done so — stoking worries his “Liberation Day” measures will kick in and spark fresh market turmoil.In a post on his Truth Social platform, Trump wrote: “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam.”He said that under the “Great Deal of Cooperation”, imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers — so-called “transshipping” — will see a 40 percent tariff.The news means Hanoi will avoid paying the 46 percent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.Hanoi traders were unimpressed, with the Vietnamese capital’s stock market down in early trade.A third record close in four days for Wall Street’s S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Shanghai, Tokyo, Sydney and Wellington all falling.Singapore, Seoul, Taipei, Manila and Jakarta edged up.Trump said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the pipeline.South Korean President Lee Jae Myung said Thursday his administration was doing its “utmost” to secure an agreement. However, he warned that “it’s certainly not easy, that much is clear. And to be honest, I can’t say with confidence that we’ll be able to wrap everything up” by the deadline. The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening.The reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide policy.Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting.”Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 percent,” said National Australia Bank’s Taylor Nugent.”It would take more than that to dent (policy board) members’ comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook.”Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump’s “Big, Beautiful Bill” that cuts taxes as well as spending on programmes such as Medicaid.Independent analysis suggests it will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world’s top economy.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.1 percent at 39,732.63 (break)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 23,948.73Shanghai – Composite: DOWN 0.1 percent at 3,450.80Euro/dollar: UP at $1.1808 from $1.1801 on WednesdayPound/dollar: UP at $1.3650 from $1.3634Dollar/yen: DOWN at 143.58 yen from 143.65 yenEuro/pound: DOWN at 86.50 pence from 86.52 penceWest Texas Intermediate: DOWN 0.9 percent at $66.85 per barrelBrent North Sea Crude: DOWN 0.9 percent at $68.48 per barrelNew York – Dow: FLAT at 44,484.42 (close)London – FTSE 100: DOWN 0.1 percent at 8,774.69 (close)

Major US stock indices closed at fresh records Wednesday following a US-Vietnam trade deal, while oil prices jumped after Iran suspended cooperation with the UN nuclear watchdog.Both the S&P 500 and Nasdaq finished at records for the third time in four days after Trump reached an accord with Vietnam. “Little by little, we are coming to agreements,” said Sam Stovall of CFRA Research. This “should be regarded as positive.”The Vietnam announcement bolsters hopes about additional US trade accords and helped offset a report that showed private-sector US employers shed 33,000 jobs in June. The strong performance in US stocks also came in spite of a rise in US Treasury yields that suggests unease in the bond market as Congress weighs Trump’s massive tax and spending package that has been projected to swell US debt.Optimism over the bill’s extension of deep tax cuts has been offset by concerns it will add around $3 trillion to the US national debt.”It’s driven a wedge between stocks and bonds,” said Jack Ablin of Cresset Capital Management. “Equity markets are applauding the tax cuts… bond markets are concerned about the long-term effects.”In Europe, London’s FTSE 100 ended the day down 0.1 percent and the pound lost around one percent against the dollar on speculation over the future of British finance minister Rachel Reeves.Reeves appeared visibly upset in parliament a day after Prime Minister Keir Starmer’s Labour government U-turned over key welfare reforms, wiping out a multibillion-pound boost to public finances and triggering speculation that she could lose her job.”The prospect of political turmoil is causing bond yields to rise. The market is pricing in the possibility of a replacement chancellor with a more left-leaning agenda, which is spooking the bond market and waking up the bond vigilantes from their slumber,” said Kathleen Brooks, research director at XTB.Brooks added that axing Reeves would be “a strange choice” from a market perspective.Oil prices jumped about three percent as analysts cited a revived chance of fighting between Iran and Israel.On June 25, a day after a ceasefire took hold between the two countries, Iranian lawmakers voted overwhelmingly to suspend cooperation with the Vienna-based IAEA. State media confirmed on Wednesday the legislation had now taken effect.Washington, which has been pressing Tehran to resume the negotiations that were interrupted by Israel’s military action on June 13, said the Iranian decision was “unacceptable.””We’ll use the word unacceptable, that Iran chose to suspend cooperation with the IAEA at a time when it has a window of opportunity to reverse course and choose a path of peace and prosperity,” State Department spokeswoman Tammy Bruce said.- Key figures at around 2040 GMT -New York – Dow: FLAT at 44,484.42 (close)New York – S&P 500: UP 0.5 percent at 6,227.42 (close)New York – Nasdaq: UP 0.9 percent at 20,393.13 (close)London – FTSE 100: DOWN 0.1 percent at 8,774.69 (close)Paris – CAC 40: UP 1.0 percent at 7,738.42 (close)Frankfurt – DAX: UP 0.5 percent at 23,790.11 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 39,762.48 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 24,221.41 (close)Shanghai – Composite: DOWN 0.1 percent at 3,454.79 (close)Euro/dollar: DOWN at $1.1801 from $1.1806 on TuesdayPound/dollar: DOWN at $1.3634 from $1.3746Dollar/yen: UP at 143.65 yen from 143.42 yenEuro/pound: UP at 86.52 pence from 85.88 penceBrent North Sea Crude: UP 3.0 percent at $69.11 per barrelWest Texas Intermediate: UP 3.1 percent at $67.45 per barrelburs-jmb/acb

President Donald Trump announced Wednesday that he had struck a trade deal with Vietnam under which the country would face a minimum 20 percent tariff and open its market to US products.The deal comes less than a week before Trump’s self-imposed July 9 deadline for steeper tariffs on US trade partners to take effect if agreements are not reached.Shares in clothing companies and sport equipment manufacturers — which have a large footprint in Vietnam — rose on the news, but later declined sharply after the president released details including the continued tariffs, which were higher than expected.If confirmed, the terms of the agreement will significantly increase the price of shoes and clothing that Vietnam exports to the United States, but Hanoi escapes the threat of the more severe 46 percent tariff threatened by Trump in April.”It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,” Trump wrote on his Truth Social platform.He said that under the “Great Deal of Cooperation,” imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers — so-called “transshipping” — will see a 40 percent tariff.- ‘Total Access’ -Trump’s trade advisor Peter Navarro has called Vietnam a “colony of China,” saying that one third of Vietnamese products are in fact relabelled Chinese goods.Trump said that “in return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” he said.”In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that we will be able to sell our product into Vietnam at ZERO Tariff.”The president said he believed US-made SUVs, “which do so well in the United States, will be a wonderful addition to the various product lines within Vietnam.”In a government statement, Vietnam confirmed that negotiating teams had come to an agreement to address the reciprocal tariff issue, but did not detail any tariff terms.Trump “affirmed that the US will significantly reduce reciprocal taxes for many Vietnamese export goods and will continue to cooperate with Vietnam in resolving difficulties affecting bilateral trade relations, especially in areas prioritized by both sides,” the statement said.Trump’s announcement comes a week before the threatened US reimposition of steep tariffs on dozens of economies, including the European Union and Japan, many of which are still scrambling to reach deals that would protect them from the measures.Those higher tariffs are part of a package Trump initially imposed in April, citing a lack of “reciprocity” in trading relationships, before announcing a temporary lowering to 10 percent.Without a deal, Vietnam’s “reciprocal tariff” would have risen from the baseline 10 percent to 46 percent.Since April, Washington had so far only announced a pact with Britain and a deal to temporarily lower retaliatory duties with China.Both involve the United States maintaining some of Trump’s tariffs on the trading partners.The terms of the UK deal are more narrowly focused than those announced by Trump with Vietnam, with London and Washington agreeing to cut US tariffs on cars from 27.5 percent to 10 percent, with a limit of 100,000 vehicles a year.It also fully eliminated the 10 percent tariff on goods such as engines and aircraft parts. In return, Britain agreed to further open its market to US ethanol and beef.

Wall Street on Wednesday largely shrugged off data showing an unexpected drop in US private sector jobs and US President Donald Trump ruling out a fresh tariffs delay.Meanwhile, the pound fell around one percent against the dollar amid speculation about the future of British finance minister Rachel Reeves.The S&P 500 and Nasdaq Composite were both higher in late morning trading despite data showing the US private sector unexpectedly losing 33,000 jobs in June, a potential sign of labour market weakness due to the prospect of high tariffs on key US trading partners snapping into place next week.It was the first such decline in recent years, in data that will be scrutinised ahead of government data on the US jobs market due to be released on Thursday.A week before the 90-day pause on the imposition of stiff new US tariffs ends, few governments have struck deals to avert the levies, though White House officials say several are in the pipeline.And while the administration had set July 9 as the deadline to finalise pacts, investors largely expect that to be pushed back or countries given extra time.However, the president said Tuesday he was “not thinking about the pause” and again warned he would end negotiations or hike some duties.”While markets suspect another last-minute climbdown, any renewed trade tension still poses a headwind for the dollar,” said Fawad Razaqzada, market analyst with City Index and FOREX.com.Investors were also tracking Trump’s signature budget bill, which faces an uncertain final vote in the US House of Representatives.Optimism over an extension to deep tax cuts has been offset by concerns it add around $3 trillion to the US national debt.In Europe, London’s FTSE-100 ended the day down 0.1 percent and the pound lost around one percent against the dollar on speculation over the future of British finance minister Rachel Reeves.Reeves appeared visibly upset in parliament a day after Prime Minister Keir Starmer’s Labour government U-turned over key welfare reforms, wiping out a multibillion-pound boost to public finances and triggering speculation that she could lose her job.”The prospect of political turmoil is causing bond yields to rise. The market is pricing in the possibility of a replacement chancellor with a more left-leaning agenda, which is spooking the bond market and waking up the bond vigilantes from their slumber,” said Kathleen Brooks, research director at XTB.Brooks added that axing Reeves would be “a strange choice” from a market perspective.Oil prices rose around one percent as crude-producer Iran suspended cooperation with the United Nations’ nuclear watchdog, days after a ceasefire in a war that saw Israeli and US strikes on nuclear sites in the Islamic republic.On the corporate front Wednesday, shares in Tesla rose 4.4 percent despite reporting another hefty drop, of 13.5 percent, in auto sales, extending a difficult period amid intensifying electric vehicle competition and backlash over CEO Elon Musk’s political activities.- Key figures at around 1530 GMT -New York – Dow: FLAT at 44,508.53 pointsNew York – S&P 500: UP 0.2 percent at 6,210.65New York – Nasdaq: UP 0.7 percent at 20,340.77London – FTSE 100: DOWN 0.1 percent at 8,774.69 (close)Paris – CAC 40: UP 1.0 percent at 7,738.42 (close)Frankfurt – DAX: UP 0.5 percent at 23,790.11 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 39,762.48 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 24,221.41 (close)Shanghai – Composite: DOWN 0.1 percent at 3,454.79 (close)Euro/dollar: DOWN at $1.1783 from $1.1806 on TuesdayPound/dollar: DOWN at $1.3614 from $1.3740Dollar/yen: UP at 143.85 yen from 143.41 yenEuro/pound: UP at 86.53 pence from 85.87 penceBrent North Sea Crude: UP 1.0 percent at $67.77 per barrelWest Texas Intermediate: UP 0.8 percent at $65.98 per barrelburs-rl/cw

Stock markets diverged and the dollar rose Wednesday as US President Donald Trump ruled out a fresh delay to reciprocal tariffs.Tokyo-listed equities took a hit from Trump’s threats to ramp up Japanese levies, Hong Kong closed higher and Europe’s main indices were up around midday.Stocks trading was “taking a relatively positive tone despite the tech-led weakness seen in the US” on Tuesday, noted Rostro chief market analyst Joshua Mahony.Oil prices jumped more than one percent as crude-producer Iran suspended cooperation with the United Nations’ nuclear watchdog, days after a ceasefire in a war that saw Israeli and US strikes on nuclear sites in the Islamic republic.Market watchers reacted also to Trump’s signature budget bill that scraped through the Senate.Optimism over an extension to deep tax cuts helped to offset warnings it could add around $3 trillion to the national debt.A week before Trump’s 90-day pause on reciprocal tariffs ends, few governments have struck deals to avert the taxes, though White House officials say several are in the pipeline.And while the administration had set July 9 as the deadline to finalise pacts, investors largely expect that to be pushed back or countries given extra time.However, the president said Tuesday he was “not thinking about the pause” and again warned he would end negotiations or hike some duties.Among those in his sights was Japan, which he slammed this week over US rice and auto exports to the country.Asia Society Policy Institute vice president, Wendy Cutler, told AFP that “Japan’s refusal to open its rice market, coupled with the US resistance to lowering automotive tariffs, may lead to the reimposition of Japan’s 24 percent reciprocal tariff”.In Washington senators passed Trump’s “Big, Beautiful Bill” he says will boost the economy by extending tax cuts and slashing spending on programmes such as Medicare.The legislation now faces a tough passage through the House of Representatives, where some Republicans have raised concerns about its cost amid already heightened fears over the country’s finances.On the corporate front Wednesday, shares in Qantas dropped more than two percent after the Australian airline said it was probing a “significant” cyberattack where hackers infiltrated a system containing sensitive data on six million customers.Hong Kong-listed Chinese tech titan Alibaba dipped after saying it would issue US$7 billion in subsidies for certain purchases.Hong Kong is expected to lead the world in IPO financing this year despite uncertainty from geopolitical tensions and trade tariffs, accountancy giant PwC said.- Key figures at around 1045 GMT -London – FTSE 100: UP 0.2 percent at 8,806.21 pointsParis – CAC 40: UP 1.1 percent at 7,750.11Frankfurt – DAX: UP 0.4 percent at 23,758.79Tokyo – Nikkei 225: DOWN 0.6 percent at 39,762.48 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 24,221.41 (close)Shanghai – Composite: DOWN 0.1 percent at 3,454.79 (close)New York – Dow: UP 0.9 percent at 44,494.94 (close)Euro/dollar: DOWN at $1.1770 from $1.1806 on TuesdayPound/dollar: DOWN at $1.3703 from $1.3740Dollar/yen: UP at 143.92 yen from 143.41 yenEuro/pound: UP at 85.88 pence from 85.87 penceBrent North Sea Crude: UP 1.2 percent at $67.88 per barrelWest Texas Intermediate: UP 1.2 percent at $66.22 per barrelburs-bcp/ajb/cw

Hong Kong is expected to lead the world in IPO financing this year despite uncertainty from geopolitical tensions and trade tariffs, accountancy giant PwC said on Wednesday.The Chinese financial hub’s capital market has rebounded strongly this year, with dozens of Chinese companies piling into the city to raise overseas capital despite regulatory pressure from Beijing and uncertainty over its national security laws.PricewaterhouseCoopers (PwC) said its statistics suggest nearly 100 companies will raise at least HK$200 billion ($25.5 billion) in Hong Kong this year.It said Hong Kong’s IPO wave has benefited largely from policy support from the Chinese government and optimised listing rules by Hong Kong regulators that include streamlining approval processes.”The improved market liquidity and rising international investor demand for core Chinese assets also drove market activity,” PwC’s Hong Kong capital markets leader Eddie Wong said in a note.The Hong Kong stock exchange welcomed 44 IPOs by the end of June, according to PwC.”We expect 2025 to be the most active fundraising year for IPOs in the past four years,” said Diamantina Leong, PwC’s Hong Kong capital markets services partner.PwC said total proceeds raised in Hong Kong jumped 701 percent to HK$107.1 billion (US$13.7 billion) compared to the same period last year.In comparison, the New York Stock Exchange and Nasdaq have raised HK$55.3 billion ($7.0 billion) and HK$71.9 billion ($9.2 billion) in IPOs respectively so far this year, it said.Hong Kong’s IPO boom is expected to continue into the first half of next year, Wong told reporters at a presentation.Data from the Hong Kong stock exchange showed it is processing more than 170 listing applications.”We expect strong momentum to continue, supported by several mega deals,” Wong said.Many of the world’s biggest fund-raisings by Chinese companies, including battery giant CATL, pharmaceutical firm Jiangsu Hengrui and soy sauce maker Foshan Haitian, kept up the buzz in Hong Kong’s capital markets.Consulting firm Deloitte also forecast in a June report that Hong Kong would be the IPO leader this year, although its analysts warned that “adverse geopolitical or macroeconomic disruptions” could constrain optimism.Chinese e-commerce titan Shein is switching to Hong Kong to complete its debut after failing to list in New York and London, Bloomberg reported this year.Hong Kong hopes to become the preferred listing platform for international companies, “especially those that find it challenging to access capital markets in the US or Europe”, the city’s financial secretary Paul Chan said last month.

Asian markets swung Wednesday amid trade war worries after Donald Trump said he would not push back next week’s tariff deadline, with Tokyo taking a hit from threats to ramp up Japanese levies.Sentiment was also mixed after the US president’s signature budget bill scraped through the Senate, with optimism over the extension of deep tax cuts offset by warnings it could add around $3 trillion to the national debt.A week before Trump’s 90-day pause on “reciprocal” tariffs ends, few governments have struck deals to avert the taxes, though White House officials say several are in the pipeline.And while the administration had set July 9 as the deadline to finalise pacts, investors largely expect that to be pushed back or countries given extra time.However, the president said Tuesday he was “not thinking about the pause” and again warned he would end negotiations or hike some duties.Among those in his sights was Japan, which he slammed this week over US rice and auto exports to the country.”I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled,” he said Tuesday.He added that Tokyo had “ripped us off for 30, 40, years”.It could pay a tariff of “30 percent, 35 percent, or whatever the number is that we determine, because we also have a very big trade deficit with Japan”, he warned.The remarks, which follow several visits by Japanese officials to Washington, jolted hopes that deals can be cut.Tokyo stocks fell, extending Tuesday’s losses of more than one percent.”With domestic elections around the corner, Tokyo can’t easily open the rice market,” said Stephen Innes at SPI Asset Management. “But without concessions on autos, the lifeblood of its export economy, Japan stands exposed.”He added: “The auto sector, nearly a tenth of Japan’s (gross domestic product), is directly in the crosshairs. It’s not just about tariffs — it’s about visibility.”Japan is being made an example of, and markets are watching who’s next.”Asia Society Policy Institute vice president Wendy Cutler told AFP that “Japan’s refusal to open its rice market, coupled with the US resistance to lowering automotive tariffs, may lead to the reimposition of Japan’s 24 percent reciprocal tariff”.Elsewhere in Asia, Seoul, Shanghai, Manila, Mumbai, Bangkok and Jakarta fell while Hong Kong, Sydney, Singapore, Taipei and Wellington edged up.London, Paris and Frankfurt were all up in the afternoon.In Washington senators passed Trump’s “Big, Beautiful Bill” he says will boost the economy by extending tax cuts and slashing spending on programmes such as Medicare.The legislation now faces a tough passage through the House of Representatives, where some Republicans have raised concerns about its cost amid already heightened fears over the country’s finances.The dollar remained under pressure as bets on a Federal Reserve interest rate cut intensify ahead of US jobs data this week.While most traders see a reduction in September, speculation is growing that a weak non-farm payrolls reading could boost the chances of a move this month.The Dollar Index, which compares the greenback to a basket of major currencies, fell 10.8 percent in the first half of the year, its steepest decline since it became the global benchmark currency.In company news Australian flag-carrier Qantas sank more than two percent in Sydney after saying it was probing a “significant” cyberattack where hackers infiltrated a system containing sensitive data on six million customers.And Hong Kong-listed Chinese tech titan Alibaba dipped after saying it will issue US$7 billion in subsidies for certain purchases.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.6 percent at 39,762.48 (close)Hong Kong – Hang Seng Index: UP 0.6 percent at 24,221.41 (close)Shanghai – Composite: DOWN 0.1 percent at 3,454.79 (close)London – FTSE 100: UP 0.1 percent at 8,979.91Euro/dollar: DOWN at $1.1774 from $1.1806 on TuesdayPound/dollar: DOWN at $1.3707 from $1.3740Dollar/yen: UP at 143.92 yen from 143.41 yenEuro/pound: UP at 85.90 pence from 85.87 penceWest Texas Intermediate: UP 0.1 percent at $65.53 per barrelBrent North Sea Crude: UP 0.2 percent at $67.25 per barrelNew York – Dow: UP 0.9 percent at 44,494.94 (close)