international

Asian markets rallied on Tuesday as a temporary pause in the US-China trade war boosted investor sentiment, easing fears of a global recession. The positive market response followed an agreement between the two economic giants to reduce tariffs for at least 90 days, prompting a shift in tone from recent confrontational rhetoric to one of “mutual respect” and “dignity”. Japan’s Nikkei surged 2%, reaching its highest level since 25 February, while Taiwan’s tech-heavy index also rose by 2%. Chinese stocks saw moderate gains in early trading. Singapore’s Straits Times Index climbed more than 1.5% in morning trade, pushing the MSCI’s broadest index of Asia-Pacific shares outside Japan to a six-month peak. In the US, the S&P 500 advanced over 3%, while the Nasdaq jumped 4.3%. The US agreed to cut tariffs on Chinese imports from 145% to 30%, while China reduced duties on US goods from 125% to 10%. This easing of trade tensions bolstered risk appetite across global markets. The US dollar, which had initially surged against the yen, euro, and Swiss franc, held on to most of its gains on Tuesday, although it weakened slightly as the trading session progressed. Despite the positive momentum, analysts remained cautious. Christopher Hodge, chief US economist at Natixis, noted that while de-escalation was expected, tariffs would still be significantly higher, continuing to impact US economic growth. Fitch Ratings reported that the effective US tariff rate had dropped to 13.1% from 22.8% prior to the agreement, although it remained historically elevated. Attention is now shifting to US inflation data, set to be released later on Tuesday. Soft consumer price index (CPI) figures could refocus market sentiment on Federal Reserve policy, potentially reducing expectations of further rate cuts. Traders are currently pricing in 57 basis points of cuts this year, down from over 100 basis points during the peak of tariff-related concerns in mid-April. US Treasury yields reached a one-month high on Monday and remained near that level on Tuesday, with the two-year yield at 3.99% and the benchmark 10-year yield at 4.45%. Oil prices slightly declined after hitting a two-week high, driven by trade deal optimism, while gold prices remained stable after falling 2% on Monday as some investors moved away from safe-haven assets. In the cryptocurrency market, bitcoin slipped 0.5% to $102,146, remaining above the key $100,000 mark it breached last week. Investors remain watchful as they assess the long-term impact of the trade truce and upcoming economic data. -Reuters

SEOUL: Korea Zinc Co Ltd, the world’s largest refined zinc smelter, has announced plans to cancel ₩1.82 trillion (US$1.29 billion) worth of its own shares this year, in a move aimed at enhancing shareholder value and reinforcing management stability. The company confirmed on Thursday that it will retire a total of 2.04 million treasury shares—representing 9.85% of its total issued shares—over three phases scheduled for June, September, and December 2025. The announcement follows an extensive buyback conducted in 2024, during which Korea Zinc repurchased 2.08 million shares to fend off a takeover attempt led by its largest shareholder, Young Poong Group, in alliance with private equity firm MBK Partners. The corporate struggle escalated in September 2024, when the Young Poong-led group launched a tender offer to increase its stake in the zinc producer. In response, Korea Zinc secured backing from Bain Capital and proceeded with a large-scale buyback to consolidate its control. In a critical development in March this year, a Seoul court ruled to restrict the voting rights of Young Poong in appointing new board members, allowing Korea Zinc’s CEO to retain his position and secure the board’s composition at the company’s annual general meeting. The share cancellation programme reflects Korea Zinc’s strategy to streamline its capital structure, support its share price, and reinforce its autonomy in the face of external shareholder pressure. –Yonhap

Thailand’s solar rooftop sector is poised for heightened competition as falling costs, an expanding array of suppliers, and regulatory support from the government converge to accelerate adoption across residential and commercial segments. EnergyLIB, a solar energy solution provider, has launched a new solar system specifically designed for townhouses, while  JJ-LAPP, the cable and connectivity solutions joint venture of diversified industrial conglomerate Jebsen and Jessen Group and LAPP Holding Asia, is partnering with Chinese solar panel manufacturer Deye to launch new products in Thailand. Chatchai Wajakiet, General Manager of JJ-Lapp – a joint venture between Jebsen & Jessen and Lapp Holding Asia – noted that recent easing of installation regulations and the increasing affordability of solar technology are key drivers behind growing consumer interest. “Entrepreneurs such as office and factory owners have traditionally led demand, but we expect to see increased adoption within the household sector in the coming years,” said Chatchai. “Lower prices for solar panels and energy storage systems are making clean energy more accessible.” The shift in cost dynamics is significant. In 2010, photovoltaic (PV) panels capable of generating 1 megawatt (MW) of electricity cost around 150 million baht. Today, the same capacity can be installed for just 15 million baht, according to Prapunt Harnchai, a consultant at Deye Thailand. Similarly, battery energy storage systems (BESS), which are essential for managing the intermittent nature of solar power, have seen substantial price reductions. A 5-kilowatt-hour BESS that previously cost 250,000 baht now retails for approximately 200,000 baht. While the domestic market outlook remains robust, broader geopolitical developments may also reshape regional dynamics. Industry analysts have indicated that Chinese solar manufacturers may increase exports to Asian markets amid trade tensions with the United States. President Donald Trump has proposed significant tariffs on solar panel imports from Southeast Asia, following allegations that Chinese firms operating in Malaysia, Cambodia, Thailand, and Vietnam are selling products below production cost due to state subsidies. A final decision from the US International Trade Commission on the proposed tariffs is expected in June. As solar technology becomes more affordable and policy frameworks more supportive, Thailand’s solar rooftop market is expected to expand further, underpinned by growing demand from both commercial and residential sectors. –Bangkok Post

BEIJING: China’s export performance surpassed expectations in April, despite a significant decline in shipments to the United States following the imposition of aggressive new tariffs by the Biden administration. The latest trade data offer an early snapshot of the shifting global trade landscape as tensions between the world’s two largest economies intensify. According to figures released by China’s General Administration of Customs on Friday, total exports rose by 8.1% year-on-year, significantly above economists’ forecast of a 2% increase. Imports, however, edged down by 0.2%, resulting in a robust trade surplus of US$96 billion (RM414.03 billion). The headline growth in exports masks stark divergences in regional performance. Shipments to the US plunged by 21% year-on-year following the early April rollout of tariffs exceeding 100% on a wide range of Chinese goods. In contrast, exports to Southeast Asian nations within the ASEAN bloc surged 21%, while those to the European Union climbed 8%, underscoring China’s accelerating pivot towards other key markets. China’s own retaliatory tariffs led to a 14% drop in imports from the US during the same period, further reflecting the deepening disruption in bilateral trade flows. The April data provide the first official insight into the tangible effects of the latest escalation in trade tensions, though analysts warn that the full economic impact may not become apparent until the coming months. Many experts predict that, barring a de-escalation, trade volumes between China and the US — which reached nearly US$690 billion in 2024 — could shrink dramatically, with widespread implications for global supply chains and pricing pressures on businesses and consumers alike. Efforts to defuse the standoff are set to resume this weekend, as US and Chinese officials convene for the first round of high-level trade talks since President Trump’s departure and President Biden’s administration adopted a more assertive trade stance. US Treasury Secretary Scott Bessent, who has described the current tariff regime as “unsustainable,” will lead the American delegation in discussions with a Chinese team headed by Vice Premier He Lifeng. Despite hopes from the business community that progress can be made, both sides have reiterated firm negotiating positions. President Biden recently ruled out lowering tariffs as a precondition for broader dialogue, while Beijing maintains that any resolution must begin with a full rollback of existing duties. With the talks scheduled to begin on Saturday, markets and industry stakeholders will be closely monitoring for any signs of compromise — though expectations for a breakthrough remain muted. –Bloomberg