Asian equities edged down as talks between President Donald Trump and Xi Jinping failed to boost sentiment and investors stayed on the sidelines ahead of the US jobs data. The MSCI Asia-Pacific Index slipped 0.1% Friday, but is still on course for its seventh gain in eight weeks. Hong Kong shares fell 0.2% while mainland Chinese stocks dipped 0.1%. Treasuries and the dollar were steady after dropping in the prior session. Shares of some Tesla Inc. suppliers declined in Asia amid differences between Trump and Elon Musk. Indian shares fluctuated after the Reserve Bank of India changed its monetary policy stance to neutral. Stocks had turned positive after the RBI cut its key rate by more than expected. Investors have refrained from making big bets ahead of the key payrolls report, which may provide clues on whether the Fed will be able to meet market expectations for two interest rate cuts in 2025. Traders are also disappointed that the Xi-Trump call didn’t provide any significant breakthroughs. Trump only said talks would begin shortly at a location to be determined as the countries aimed to resolve disputes over tariffs and rare earth minerals. Later Friday, nonfarm US payroll growth probably decelerated to 125,000 last month after handily beating expectations for a second month in April, according to the median estimate in a Bloomberg survey of economists. Anything below the 100,000 mark could reignite recession fears while a stronger-than-expected print could perversely be negative for risk assets as it would likely put upward pressure on yields, according to Julien Lafargue, chief market strategist at Barclays Private Bank. On trade, Trump acknowledged Thursday the relationship with China had gotten “a little off track” but said now “we’re in very good shape with China and the trade deal.” Additional negotiations, Trump said, would occur “shortly” at “a location to be determined.”
Whether the call will unlock lasting trade peace, and crucially, shipments of critical minerals needed by US companies, remains to be seen.
Meanwhile, Tesla’s shares slumped 14% on Thursday as Trump proposed ending Elon Musk’s government contracts and subsidies after his onetime adviser attacked the Republican’s tax-policy bill. Musk also called for Trump’s impeachment. The billionaire tweeted he won’t decommission Space Exploration Technologies Corp.’s Dragon spacecraft, walking back his earlier comments saying he would end its use. Musk signaled he would move to cool tensions with Trump, after differences between the two exploded Thursday into an all-out public feud. Shares of some Tesla suppliers declined in Asia amid the meltdown between Trump and Musk. Japanese ultra long bond yields fell 5 basis points, extending a move from Thursday. Expectations in the market are intensifying that the country may adjust debt issuance as soon as next month. Japanese shares rose 0.4% after the yen weakened 0.2%. In commodities, silver held near a 13-year high, supported by a technical breakout that also drove platinum to the highest level since 2022, signaling growing investor appetite for precious metals used by the industrial sector. US After Hours AVGO -4.5%, LULU -22.3%, DOCU -17.7%, IOT -12.9%, TTAN -12% lower on earnings; NX +6.6%, AVO +5.2%, GES +1.5% higher on earnings.
Nikkei +0.38% Hang Seng -0.40% CSI -0.12% Shanghai -0.06% Shenzen -0.25%
Eur$ 1.1440 CNH 7.1805 CNY 7.1822 JPY 143.88 GBP 1.3573 CHF 0.8205 RUB 78.7350 TRY 39.2853 WTI$ 63.16 -0.33% Gold 3,375 +0.65% BTC 102,954 +2.44% ETH 2,465 +2.74%
S&P 0.39% Nasdaq +0.37% EuroStoxx -0.16% FTSE -0.10% Dax -0.09% SMI -0.05%
Macro :
- Musk Says Trump Tariffs to Cause Recession in 2nd Half of Year
- Brazil Govt to Defend Bill Cutting Tax Breaks by 10%: Reuters
- Japan Says Closely Watching US-China Talks, Assessing Impact
- Japan Says Closely Watching US-China Talks, Assessing Impact
- Trump Threat to Pull Musk Contracts Imperils US Space Ambitions
- Musk Walks Back Threat to Decommission SpaceX Dragon Spacecraft
Keep an eye on :
Keep an eye on :
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