Afp Business Asia

Senior US and Chinese officials will travel to Switzerland later this week to kickstart stalled trade talks following President Donald Trump’s sweeping tariff rollout, according to statements from both countries.The talks mark the first official public engagement between the world’s two largest economies to resolve a trade war escalated by Trump shortly after his return to office in January.Treasury Secretary Scott Bessent and US Trade Representative (USTR) Jamieson Greer will attend the talks on behalf of the United States, their offices said.Bessent told Fox News that the sides would hold meetings on Saturday and Sunday intended to lay the groundwork for future negotiations. “We will agree what we’re going to talk about. My sense is that this will be about de-escalation, not about the big trade deal,” Bessent told “The Ingraham Angle” show.”We’ve got to de-escalate before we can move forward,” he added.Vice Premier He Lifeng will attend for Beijing, China’s Ministry of Foreign Affairs announced.”Vice Premier He, as the Chinese lead person for China-U.S. economic and trade affairs, will have a meeting with the U.S. lead person Treasury Secretary Scott Bessent,” the Chinese foreign ministry said.The USTR announced that Greer would also meet with “his counterpart from the People’s Republic of China to discuss trade matters,” without naming He. Since Trump returned to the White House in January, his administration has levied new tariffs totaling 145 percent on goods from China, with some sector-specific measures stacked on top.Beijing retaliated by slapping 125 levies on US imports to China, along with more targeted measures.The tit-for-tat tariffs have left the two nations with cripplingly high levies that have shocked financial markets and reportedly caused a sharp slowdown in bilateral trade.”This isn’t sustainable, as I have said before, especially on the Chinese side. 145 percent, 125 percent is the equivalent of an embargo. We don’t want to decouple. What we want is fair trade,” Bessent said.

Stock markets mostly dropped on Tuesday as investors awaited a Federal Reserve interest-rate decision while anticipating US trade deal breakthroughs that have yet to materialize.Stocks had risen most of the last two weeks in anticipation of progress on the trade front as US President Donald Trump and top appointees play up the negotiations. But major US indices spent the entire Tuesday session in the red, with the Dow Jones Industrial Average finishing down one percent.The market “seems to be disappointed over the fact that we’re not hearing any trade deal news,” said Art Hogan of B. Riley Wealth Management.Investors are also monitoring the Fed, which is expected to hold interest rates steady on Wednesday, even as Trump pushes for more cuts. “Traders appear to be taking profits and moving to the sidelines ahead of the Federal Reserve’s FOMC meeting, which kicks off today,” said David Morrison, senior market analyst Trade Nation, referring to the monetary policy branch of the reserve, the Federal Open Market Committee.While data last week showed the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.”It’s a big week for central bank interest rate decisions,” noted AJ Bell investment director Russ Mould.”The key focus will be on forward-looking commentary and whether the Fed is getting worried about Trump’s tariffs,” Mould added.On Thursday, the Bank of England is expected to cut its key rate by a quarter point to 4.25 percent amid concerns of weak growth in Britain.In Europe, Frankfurt’s stock market shed 0.4 percent after German conservative leader Friedrich Merz was confirmed as chancellor following an initial setback.Paris also ended the day down 0.4 percent while London finished flat.The US dollar was lower against major rival currencies, while oil prices shot higher in what analysts called a technical rebound following Monday’s selloff.US pharmaceutical and biotech stocks took a beating due to the appointment of oncologist Vinay Prasad to a top post at the US Food and Drug Administration. Prasad has been an outspoken critic of the agency’s prior approach to Covid-19 vaccines and other key decisions.Merck and Pfizer both fell more than four percent while Moderna sank more than 12 percent. In company news, US food delivery service DoorDash agreed to buy Deliveroo in a £2.9-billion ($3.9-billion) deal that values the UK group at less than half of its initial public offering price. Shares in Deliveroo rose 2.1 percent on London’s second-tier FTSE 250 index, while DoorDash shares dropped 7.4 percent in New York.Danish wind turbine maker Vestas jumped nine percent in Copenhagen after it stuck to its annual earnings forecasts despite geopolitical uncertainty and US tariffs.- Key figures at around 2050 GMT -New York – Dow: DOWN 1.0 percent at 40,829.00 (close)New York – S&P 500: DOWN 0.8 percent at 5,606.91 (close)New York – Nasdaq Composite: DOWN 0.9 percent at 17,689.66 (close)London – FTSE 100: FLAT at 8,597.42 (close)Paris – CAC 40: DOWN 0.4 percent at 7,696.92 (close)Frankfurt – DAX: DOWN 0.4 percent at 23,249.65 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 22,662.71 (close)Shanghai – Composite: UP 1.1 percent at 3,316.11 (close)Tokyo – Nikkei 225: Closed for holidayEuro/dollar: UP at $1.1373 from $1.1315 on MondayPound/dollar: UP at $1.3370 from $1.3296Dollar/yen: DOWN at 142.44 yen from 143.70 Euro/pound: DOWN at 85.04 pence from 85.09Brent North Sea Crude: UP 3.2 percent at $62.15 per barrelWest Texas Intermediate: UP 3.4 percent at $59.09 per barrel burs-jmb/sla

Britain on Tuesday struck a free trade agreement with India, its biggest such deal since leaving the European Union, after negotiations relaunched in February following US tariff threats.Britain has sought to bolster trade ties across the world since it left the EU at the start of the decade under Brexit, a need that became more pressing after the United States unleashed tariffs that risk causing weaker economic growth.”Today we have agreed a landmark deal with India — one of the fastest-growing economies in the world, which will grow the economy and deliver for British people and business,” UK Prime Minister Keir Starmer said in a statement. His Labour government said it is “the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU”. India’s Prime Minister Narendra Modi described the deal as “ambitious and mutually” beneficial.The pact will help “catalyse trade, investment, growth, job creation, and innovation in both our economies”, Modi said in a post on social media platform X.His office said in a statement that the deal will “unlock new potential for the two nations to jointly develop products and services for global markets”. It added that Modi had invited Starmer to visit India at an unspecified date.- Whisky and shoes -The accord will slash tariffs on imports of UK goods into India, including whisky, cosmetics and medical devices.Whisky and gin tariffs will be halved to 75 percent, while automotive tariffs will be slashed from more than 100 percent to 10 percent. In exchange, the UK will cut tariffs on imports of clothes, footwear and food products, including frozen prawns, from India. The deal comes after US President Donald Trump hiked tariffs on trading partners and launched sector-specific levies on steel, aluminium and cars.The UK and India are the sixth and fifth largest global economies respectively, with a trade relationship worth around £41 billion ($54.8 billion) and investment supporting more than 600,000 jobs across both countries.The sides hope the free-trade agreement will increase trade between the two countries by £25.5 billion, as well as boosting the British economy and wages.The UK called it “the best deal India has ever agreed”.Talks were relaunched between the two countries in February after stalling under Britain’s previous Conservative administrations.In previous negotiations, India pushed for more UK work and study visas for its citizens in exchange for lowering tariffs.The Federation of Indian Export Organisations welcomed Tuesday’s announcement, saying that the deal “eliminates or significantly reduces tariffs on a wide range of Indian goods, giving our exporters preferential access to one of the world’s most affluent and consumption-driven markets”. Mike Hawes, chief executive of British automotive lobby group SMMT also praised the outcome.”While the agreement will likely feature compromises, and might not offer unfettered market access to all UK automotive goods, we appreciate the considerable effort British negotiators have devoted to secure the first partial liberalisation of the Indian automotive market.”- UK trade deals -Britain has secured other trade deals since exiting the EU, including with Australia, New Zealand and Singapore. However, a much sought-after agreement with the United States remains elusive.The European Union remains Britain’s biggest trading partner, and Starmer has sought to bring the UK and the EU closer together since his Labour party won re-election last July.A landmark EU-UK summit is due this month, but Starmer has ruled out Britain rejoining the neighbouring bloc.Britain joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in December.The CPTPP alliance comprises fellow G7 members Canada and Japan, plus long-standing allies Australia and New Zealand, alongside Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam. burs-ajb/bcp/rlp

A Czech court said Tuesday it blocked a multi-billion-dollar deal between Prague and South Korea’s KHNP on the construction of two nuclear units following a complaint by France’s EDF.KHNP won the contract last July after beating EDF in the tender, but the French giant filed an appeal with the Czech antitrust watchdog UOHS.When the UOHS rejected the appeal last week, EDF filed a lawsuit.The regional court in the second Czech city of Brno said it had “issued a pre-emptive ruling banning the signature” originally scheduled for Wednesday.It added that if the deal were signed, EDF would lose a chance to compete for the contract for good even if the court ruled in its favour later on.The deal cannot be signed until the court passes a verdict on the case.KHNP is due to build the two units at the southern Czech nuclear plant of Dukovany run by the state-run CEZ group.The Czech Republic, an EU member of 10.9 million people, relies on nuclear power — produced by Dukovany and the Temelin plant also in the south — for 40 percent of its electricity consumption.With the two new units and small modular reactors due to be built by 2050, the share of nuclear energy is expected to rise to 50 percent as the country shifts from burning fossil fuels.EDF hailed the postponement, saying it “provides the necessary time for a thorough assessment of any potential infringement of its rights”.It also told AFP it was ready for “all legal actions”.EDF said earlier its appeal was designed to make sure the selection process was fair and transparent.It also insists it can offer 60 percent of the value of the contract to Czech companies, while the share offered by KHNP is lower.The Czech news agency CTK quoted KHNP as saying it acknowledged the postponement but was sure the tender was correct, and that it was ready to go to court too. Czech Prime Minister Petr Fiala said after the tender that KHNP’s bid was “better in all criteria assessed”.CEZ insisted on Tuesday that the tender was “fully transparent in all phases” and called on EDF to make its bid public to “rule out any doubt” that KHNP’s bid was better.The UOHS also earlier rejected an appeal by US-based Westinghouse, eliminated from the tender in January 2024 over flaws in its bid.KHNP has offered to build the two new units for around 200 billion Czech koruna ($9 billion) each.Prague expected to finalise the deal with KHNP by March this year, but the EDF appeal delayed the process.CEZ expects construction to begin in 2029 and the first new reactor launched in trial operation in 2036.

Stock markets diverged Tuesday as investors awaited a US Federal Reserve interest-rate meeting for signs of the outlook for the tariffs-hit economy.Oil prices staged a comeback after tanking on news of an output hike by key OPEC+ producers that came despite growing concerns over a slowdown in the global economy, which could hit demand. In Europe, Frankfurt’s stock market shed around one percent after German conservative leader Friedrich Merz failed to win a majority in the first parliament vote for chancellor, in an unexpected setback.Paris dropped while London was flat in early afternoon deals. “It’s a big week for central bank interest rate decisions,” noted AJ Bell investment director Russ Mould.The US Federal Reserve is expected to hold interest rates steady on Wednesday, even as President Donald Trump pushes for more cuts. While data last week showed that the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.”The key focus will be on forward-looking commentary and whether the Fed is getting worried about Trump’s tariffs,” Mould added.Elsewhere, the Bank of England is Thursday expected to cut its key rate by a quarter point to 4.25 percent amid concerns of weak growth in Britain.In Asia Tuesday, stock markets benefited from some renewed optimism that governments are making progress in agreements to temper Trump’s levies, which have roiled global markets in recent months.US Treasury Secretary Scott Bessent told CNBC that the Trump administration had been approached by 17 countries and offered “very good” trade proposals.He also said there could be “substantial progress in the coming weeks” with China, which has been hit with tariffs of 145 percent. Hong Kong and Shanghai stock markets closed higher Tuesday as investors returned from a long weekend. Traders brushed off losses on Wall Street, with the S&P 500 snapping a nine-day winning streak and film studios hit by Trump’s warning of new tariffs on all films made outside the United States.Oil prices rose more than two percent, clawing back Monday’s losses that came after Saudi Arabia, Russia and six other members of the OPEC+ cartel agreed to boost output by 411,000 barrels a day in June.The move came a month after a similar announcement that caused prices to fall.In company news, US food delivery service DoorDash agreed to buy Deliveroo in a £2.9-billion ($3.9-billion) deal that values the UK group at less than half of its initial public offering price. Shares in Deliveroo rose around two percent on London’s second-tier FTSE 250 index. Danish wind turbine maker Vestas rose five percent in Copenhagen after it stuck to its annual earnings forecasts despite geopolitical uncertainty and US tariffs.- Key figures at around 1100 GMT -London – FTSE 100: FLAT at 8,593.68 pointsParis – CAC 40: DOWN 0.4 percent at 7,695.11Frankfurt – DAX: DOWN 0.9 percent at 23,139.69Hong Kong – Hang Seng Index: UP 0.7 percent at 22,662.71 (close)Shanghai – Composite: UP 1.1 percent at 3,316.11 (close)Tokyo – Nikkei 225: Closed for holidayNew York – Dow: UP 0.2 percent at 41,218.83 (close)Euro/dollar: UP at $1.1326 from $1.1319 on MondayPound/dollar: UP at $1.3350 from $1.3296Dollar/yen: DOWN at 143.11 yen from 143.72Euro/pound: DOWN at 84.84 pence from 85.10Brent North Sea Crude: UP 2.1 percent at $61.48 per barrelWest Texas Intermediate: UP 2.1 percent at $58.34 per barrel

The dollar rose in Asia on Tuesday fuelled by hopes for trade deals to avert Donald Trump’s sweeping tariffs, while equities were mixed as investors await the Federal Reserve’s latest policy decision.Oil also staged a comeback after tanking on news of an output hike by key producers that came despite growing concerns about demand and the outlook for the global economy.While no agreements have yet been reached with the White House, there is optimism that governments are making progress in averting or tempering the US president’s eye-watering levies, which have sent shivers through world markets.Sentiment was given a lift by US Treasury Secretary Scott Bessent, who told CNBC that the administration had been approached by 17 countries and offered “very good” trade proposals.He also said there could be “substantial progress in the coming weeks” with China, which has been hit with tariffs of 145 percent.Trump has imposed lower duties of 10 percent on goods from most other countries, along with 25 percent levies on specific items like steel, automobiles and aluminium.Hopes for deals have seen Asian currencies rally against the dollar, with Taiwan’s unit up around seven percent this month, while South Korea’s won, the Malaysian ringgit, Indian rupee and Thai baht have also seen healthy gains.The greenback was barely moved against the yen, euro and pound.The gains have led some to speculate governments are allowing for an appreciation of their currencies as part of negotiations with Washington.”The factor many talk about is whether these countries with historically ‘weak’ and heavily managed currencies are now appealing to Trump through the currency channels and are now allowing for an appreciation of the currency as part of the trade negotiations,” said Pepperstone’s Chris Weston.”If these Asian nations are indeed opting for a currency revaluation, it could be a significant development not just in driving the dollar lower, but also in the trade negotiation process and accelerate the idea of trade deals.”Equities were mixed, with Hong Kong and Shanghai advancing as investors returned from a long weekend.Singapore, Manila and Jakarta also rose along with London.But Sydney, Taipei, Mumbai, Bangkok, Paris and Frankfurt slipped. Wellington was flat.Traders brushed off losses on Wall Street, with the S&P 500 snapping a nine-day winning streak and film studios hit by Trump’s warning of new tariffs on all films made outside the United States.Focus turns to the Fed’s policy announcement Wednesday, with expectations it will stand pat on interest rates, even as Trump continues to push for more cuts.While data last week showed that the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.”Soft data had baked in a Fed pivot, but the ensuing hard data prints got bond desks slashing their rate-cut tickets,” said SPI Asset Management’s Stephen Innes.”So long as the real economy hums and fresh levies are expected to spark a second inflation wave, Powell’s hawkish brace stays locked in,” he said in reference to Fed chairman Jerome Powell.Oil prices rose more than two percent, clawing back Monday’s losses that come on the back of a decision by Saudi Arabia, Russia and six other members of the OPEC+ cartel to boost output by 411,000 barrels a day for June.The move came a month after a similar announcement that also caused prices to fall.- Key figures at around 0810 GMT -Hong Kong – Hang Seng Index: UP 0.7 percent at 22,662.71 (close)Shanghai – Composite: UP 1.1 percent at 3,316.11 (close)London – FTSE 100: UP 0.2 percent at 8,617.32Tokyo – Nikkei 225: Closed for holidayEuro/dollar: UP at $1.1344 from $1.1319 on MondayPound/dollar: UP at $1.3327 from $1.3296Dollar/yen: DOWN at 143.25 yen from 143.72Euro/pound: UP at 85.12 pence from 85.10West Texas Intermediate: UP 2.3 percent at $58.43 per barrelBrent North Sea Crude: UP 2.3 percent at $61.59 per barrelNew York – Dow: UP 0.2 percent at 41,218.83 (close)

Hollywood reacted with skepticism on Monday to US President Donald Trump’s announcement of 100 percent tariffs on foreign films, with movie insiders calling it a policy made up on the fly by a president who fails to understand how the industry works.”It makes no sense,” entertainment lawyer Jonathan Handel said of Trump’s idea.Handel told AFP that many US productions, from James Bond flicks to the “Mission Impossible” franchise, are filmed abroad for obvious creative reasons.”If the stunt is Tom Cruise climbing up the Eiffel Tower, what are we supposed to do, shoot at the replica Eiffel Tower in Las Vegas?” Handel said. “I mean, it’s just nonsensical.”Writing on his platform Truth Social platform on Sunday, Trump said: “I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.””WE WANT MOVIES MADE IN AMERICA, AGAIN!” he wrote.His words plunged the movie industry into uncertainty as entertainment companies saw their stock prices fall, unions struggled to understand if the bombshell also applies to TV series and everyone wondered if the policy could even be enforced.Handel said movies involve intellectual property.”You can buy a movie ticket, but you don’t buy a movie the way you buy a piece of clothing or an automobile,” which can be taxed as they cross a border into the United States, he said.Even if a system could be devised to impose tariffs on movies filmed outside the United States, such levies would do more harm than good to the US industry, Handel said.”The result of that would be to reduce production, to increase the cost of movies, to reduce the number of movies available for movie theaters and streamers to show, which would damage the distribution side of the business,” he said.California Governor Gavin Newsom called on Monday for a partnership with the Trump administration to “Make America Film Again”.”We’ve proven what strong state incentives can do. Now it’s time for a real federal partnership to Make America Film Again,” he wrote on social media platform X.- ‘Confusion’ -Unions for actors and other media and entertainment workers said they awaited more details of Trump’s plan but supported the goal of increasing production of movies, TV and streaming in the United States. “We will continue to advocate for policies that strengthen our competitive position, accelerate economic growth and create good middle-class jobs for American workers,” said one such guild, SAG-AFTRA.Many movie studios and other industry organizations had yet to officially react by Monday but Trump’s announcement triggered crisis meetings, Hollywood news outlets reported, publishing skeptical comments from insiders speaking on condition of anonymity.”I can’t see his target here other than confusion and distraction,” the showbiz news outlet Deadline quoted a top distribution executive as saying.”Let’s hope this only encourages desperately needed increases in US state tax incentives being implemented ASAP,” the person said.Such incentives offered by other countries — such as Britain, Canada and Ireland, among others — are a lure for US movie studios to film outside the country.Australia, which for years used generous tax breaks and other cash incentives to lure foreign filmmakers, said it still wants to make “great films” with the United States.With Trump’s tariffs threatening the home of Hollywood hits including “The Matrix”, “Elvis” and “Crocodile Dundee”, Australian Foreign Minister Penny Wong said on Tuesday that “collaboration is a good thing.”While Trump’s idea is divisive, there is widespread agreement that the US movie industry is in dire straits.Hollywood has struggled to get back on its feet since the historic strikes by actors and writers that shut it down in 2023.The number of filming days in Los Angeles hit a record low in 2024, excluding the total shutdown in 2020 because of the Covid pandemic.This is in part because many movies are now filmed in a growing number of countries that offer incentives such as tax rebates.Deadline quoted a Hollywood movie financier as saying he agreed with Trump’s goal of having more movies filmed in the United States.”But obviously the need is for rebates, not tariffs. Tariffs will just choke the remaining life out of the business,” they were quoted as saying.As Hollywood fretted over Trump’s announcement, the White House said no decision on foreign film tariffs has been made. “The Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again,” the White House said in a statement.Trump told reporters Monday: “I’m not looking to hurt the industry. I want to help the industry. But they’re given financing by other countries.”That seemingly conciliatory remark stopped short of walking back the film tariff announcement, as Trump criticized Newsom, who is pushing for his state to double the tax credits it grants to the movie industry.”Our film industry has been decimated by other countries taking them out, and also by incompetence,” Trump said of Newsom.”He’s just allowed it to be taken away from, you know, Hollywood.”

Australia still wants to make “great films” with the United States, Foreign Minister Penny Wong said Tuesday, as new tariffs threaten the home of Hollywood hits like The Matrix, Elvis and Crocodile Dundee.US President Donald Trump on Sunday announced 100 percent tariffs for all films produced in “foreign lands”, saying struggling Tinsel Town would be better served by “movies made in America”. So-called “Aussiewood” has for years used generous tax breaks and other cash incentives to lure foreign filmmakers Down Under, producing a string of hits for major Hollywood studios. Although little is known about how the tariffs might work, Australia’s top diplomat Wong said they risk ultimately proving a flop with filmgoers. “Our message is we make great films together,” she told national broadcaster ABC. “We have films, American films, which are filmed here in Australia. The collaboration is a good thing. So, let’s not get in the way of that.” “Crocodile Dundee”, a 1986 comedy about an Australian bushman transplanted to New York City, helped put Australia’s fledgling film industry on the map in America. Since then, some of Hollywood’s hottest directors have used Australia to film Marvel blockbusters, Mission Impossible instalments, and box office winners like Elvis. The tariffs could also trouble neighbouring New Zealand, which famously lent its spectacular scenery to the beloved Lord of the Rings trilogy. New Zealand Film Commission boss Annie Murray said they were still trying to untangle how the tariffs might work.”We’re mindful, however, this is an evolving situation and it’s too early to speculate on what this could mean,” she told AFP. The tariffs appear to target a business model favoured by American studios who obtain tax breaks to film in countries such as Britain, Canada, Ireland and Australia. A recent survey of studio executives found that their top five favoured production locations were all outside the United States. At the start of this year, Trump appointed veteran stars Sylvester Stallone, Mel Gibson and Jon Voight to bring Hollywood back “bigger, better and stronger than ever before”.

Dutch medical device maker Philips reported a net profit for the first time in three quarters Tuesday despite weak sales in China but warned of “intensified” uncertainties due to tariffs.Net profits came in at 72 million euros ($82 million), compared to a net loss of 998 million euros in the same quarter last year and 333 million euros in the fourth quarter of 2024.”It’s an encouraging start to the year,” the firm’s chief executive Roy Jakobs told reporters.Jakobs predicted that the second half of the year would be stronger for the firm than the first half.”In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control,” he added.The company estimated a hit of between 250-300 million euros from tariffs over the year.Philips maintained its forecast for between one and three percent growth in sales for 2025, but slightly cut its projection for earnings before special items (EBITA).The firm pointed to a two-percent growth in orders globally, with China again proving a drag. Without China, the order growth would have been four percent, Philips said.However, global sales were down two percent compared to the same quarter last year due to a “double-digit decline” in China, the firm said.Philips has previous warned that a slowing Chinese economy was hurting consumer demand for products and the government’s anti-corruption drive was hitting procurement.Once famous for making lightbulbs and televisions among other products, Amsterdam-based Philips in recent years has sold off subsidiaries to focus on medical care technology.Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foams and fears it could potentially cause cancer.In April 2024, it announced it had reached a $1.1 billion deal to settle US lawsuits over the faulty machines.

The dollar rose in Asia on Tuesday fuelled by hopes for trade deals to avert Donald Trump’s sweeping tariffs, while equities mostly rose as investors await the Federal Reserve’s latest policy decision.Oil also staged a comeback after tanking on news of an output hike by key producers that came despite growing concerns about demand and the outlook for the global economy.While no agreements have yet been reached with the White House, there is optimism that governments are making progress in averting or tempering the US president’s eye-watering levies, which have sent shivers through world markets.Sentiment was given a lift by US Treasury Secretary Scott Bessent, who told CNBC that the administration had been approached by 17 countries and offered “very good” trade proposals. He also said there could be “substantial progress in the coming weeks” with China, which has been hit with tariffs of 145 percent.Trump has imposed lower duties of 10 percent on goods from most other countries, along with 25 percent levies on specific items like steel, automobiles and aluminium.Hopes for deals have seen Asian currencies rally against the dollar, with Taiwan’s unit up around seven percent this month, while South Korea’s won, the Malaysian ringgit, Indian rupee and Thai baht have also seen healthy gains.The gains have led some to speculate governments are allowing for an appreciation of their currencies as part of negotiations with Washington. “The factor many talk about is whether these countries with historically ‘weak’ and heavily managed currencies are now appealing to Trump through the currency channels and are now allowing for an appreciation of the currency as part of the trade negotiations,” said Pepperstone’s Chris Weston.”If these Asian nations are indeed opting for a currency revaluation, it could be a significant development not just in driving the dollar lower, but also in the trade negotiation process and accelerate the idea of trade deals.”Equities mostly rose, with Hong Kong and Shanghai leading the way as investors returned from a long weekend.Wellington, Taipei, Manila and Jakarta also rose, though Sydney and Singapore edged down.Traders brushed off losses on Wall Street, with the S&P 500 snapping a nine-day winning streak, with film studios hit by Trump’s warning of new tariffs on all films made outside the United States.Focus turns to the Fed’s policy announcement Wednesday, with expectations it will stand pat on interest rates, even as Trump continues to push for more cuts.While data last week showed that the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.”Soft data had baked in a Fed pivot, but the ensuing hard data prints got bond desks slashing their rate-cut tickets,” said SPI Asset Management’s Stephen Innes.”So long as the real economy hums and fresh levies are expected to spark a second inflation wave, Powell’s hawkish brace stays locked in,” he said in reference to Fed chairman Jerome Powell.Oil prices rose more than one percent after sinking around two percent Monday following the decision by Saudi Arabia, Russia and six other members of the OPEC+ cartel to boost output by 411,000 barrels a day for June, a month after a similar move had already caused prices to fall.- Key figures at around 0230 GMT -Hong Kong – Hang Seng Index: UP 0.5 percent at 22,616.26Shanghai – Composite: UP 0.7 percent at 3,302.24 Tokyo – Nikkei 225: Closed for holidayEuro/dollar: DOWN at $1.1308 from $1.1319 on MondayPound/dollar: DOWN at $1.3288 from $1.3296Dollar/yen: UP at 143.81 yen from 143.72Euro/pound: DOWN at 85.08 pence from 85.10West Texas Intermediate: UP 1.2 percent at $57.83 per barrelBrent North Sea Crude: UP 1.2 percent at $60.92 per barrelNew York – Dow: UP 0.2 percent at 41,218.83 (close)London – FTSE 100: Closed Monday for holiday