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Asian markets are set for a  choppy session Thursday , tracking Wall Street’s rollercoaster performance as  US-China trade tensions intensify  and investors brace for policy and earnings-driven swings. Futures Signal Mixed Open Across the Region Equity futures in  Shanghai  and  Tokyo  pointed higher, while  Hong Kong  looked weaker and  Sydney  remained flat. The uneven setup follows a volatile overnight session in the US, where the  S&P 500 Index (.SPX.US)  swung more than 2% intraday before closing modestly higher. Traders in Asia will be watching how far the renewed  US-China trade conflict  will escalate after US President  Donald Trump  declared,  “We’re in a trade war now.” Wall Street Swings Wildly as Fed Bets Build After climbing as much as 1.2% early in the session, the S&P 500 briefly turned negative before rebounding. Treasuries : Two-year yields steadied near  3.50% , clos...

Top U.S. and Chinese economic officials met in Stockholm on Monday for a crucial round of trade negotiations aimed at extending the tariff truce between the two nations. The meeting, lasting over five hours, signals both sides are racing to strike a deal before the  August 12 deadline . What Happened: Key attendees:  U.S. Treasury Chief Scott Bessent and Chinese Vice Premier He Lifeng. Venue: Rosenbad, the Swedish prime minister’s office. Negotiators left without comment; talks will resume Tuesday. The aim: Extend the truce by another  three months  to avoid U.S. tariffs snapping back to higher levels. President Donald Trump, speaking separately, urged China to further open its economy. Without an agreement, analysts warn of major disruptions to global supply chains. Why It Matters: The U.S. temporarily paused tech export restrictions to China to keep talks alive and pave the way for a potential  Trump-Xi meeting later this year . Semiconductor giants like ...

Singapore has downgraded its  2025 GDP growth forecast to just 0% to 2% , warning that  US President Donald Trump's sweeping tariffs  and the intensifying trade war are set to hit global trade and economic momentum hard. 🔻 What’s Behind the Downgrade? The  Ministry of Trade and Industry (MTI)  cited the  US’s 10% baseline tariff  on all imports and  even higher reciprocal tariffs  for some countries. The  US-China trade war  has worsened, with  China now imposing up to 125% tariffs  on US goods. These moves are expected to  weigh heavily on global trade , hurt business confidence, and slow down investment. Economic Impact: Singapore's Q1 GDP grew 3.8% , but this was  down from 5% in Q4 2024 . On a  quarterly basis , the economy  contracted 0.8% , mainly due to declines in  manufacturing and financial services . Monetary Authority of Singapore (MAS)  has also  eased policy  for the s...

Key Developments Massive Tariff Escalation Chinese goods now face  104% total tariffs  (up from 54% last week) EU hit with  20% , Vietnam  46% , Japan  24% , among others Tariffs apply to new imports arriving after  May 27  (those already in transit exempt) Market Impact S&P 500 fell below 5,000 , nearing bear market territory $5.8 trillion  in market cap wiped out from S&P 500 firms in four days Nikkei fell over 3% , Korean won hits 16-year low US stock futures point to a  fifth straight day of losses White House Position Trump says tariffs are  “permanent” , but also calls them  “pressure tools”  to drive trade negotiations Talks scheduled with  South Korea ,  Japan , and  Italy’s PM  next week China has vowed retaliation, accusing US of  “blackmail” Consumer Impact Economists warn of  higher prices on goods  like wine, sneakers, electronics Reuters/Ipsos poll:  Nearly 75% of Am...

Tech Giant Calls for Revisions to US Trade Policies Microsoft will push the Trump administration to ease AI chip export restrictions  for key US allies, including  India, Switzerland, and Israel , according to a report by  The Wall Street Journal  on Thursday. The proposal, expected to be published in a  Microsoft blog post , argues that  current curbs could drive allies toward China for AI infrastructure needs . Microsoft did not immediately respond to requests for comment. US-China AI Battle Intensifies Washington’s expanded AI chip export restrictions—introduced during Joe Biden’s final days in office—aim to limit China’s access to advanced computing power. These measures have  hurt US chipmakers and Big Tech companies  that rely on China as a major market for semiconductors. China is  capitalizing on US export restrictions , promoting itself as a  more reliable AI technology partner  for other countries, Microsoft President...

Market Overview US equity futures bounced back on Wednesday , as investors  shifted focus to Nvidia's highly anticipated Q4 earnings  and  evaluated the impact of Trump’s evolving trade policies . The rebound follows a volatile session , where major indices  extended their declines  amid concerns over  rising tariffs and inflationary risks . Nvidia Earnings in Focus Nvidia (NVDA) , a  key driver of AI sector growth , is set to  report earnings later today . Key expectations : Revenue surge fueled by AI demand Guidance on next-gen GPU launches Competition with China's DeepSeek and regulatory challenges Investors will assess CEO Jensen Huang's comments on AI infrastructure and potential market risks . Tech Stock Movers Super Micro Computer (SMCI)  and  Palantir (PLTR)  saw  pre-market gains , reflecting  positive sentiment toward AI-linked stocks . Tesla (TSLA) continued its slide , with Elon Musk’s wealth  taking a maj...

China-Taiwan Tensions Escalate Over Semiconductor Industry China claims Taiwan is giving away its semiconductor industry to the U.S.  in exchange for political support. Reports suggest Taiwan Semiconductor Manufacturing Co. (TSMC) is in talks for a stake in Intel,  though neither company has confirmed this. Taiwan’s government denies knowledge of any overseas investment application from TSMC. U.S. and Taiwan's Semiconductor Dispute President Donald Trump has criticized Taiwan  for taking U.S. semiconductor business and has pushed for  more domestic chip production. China's Taiwan Affairs Office accused Taiwan's ruling party (DPP) of 'selling out' TSMC  to gain favor with the U.S. Beijing claims Taiwan is using its chip industry as leverage for political independence. Taiwan Responds to China's Allegations Taiwan’s Mainland Affairs Council reaffirmed TSMC’s importance  and vowed to  collaborate with the industry to maintain leadership in advanced techno...

An expanded US-China trade war under President-elect Donald Trump could reduce China’s GDP growth by two percentage points, according to Macquarie Group Ltd. Trump’s proposed 60% tariffs on Chinese goods could shrink the nation’s exports by 8%, pushing Beijing to stimulate domestic demand with a projected three trillion yuan (US$420 billion) in stimulus. Economists Larry Hu and Yuxiao Zhang from Macquarie suggest this “Trade War 2.0” might end China’s export-driven growth model, shifting focus back to domestic demand and consumption as key growth drivers. The US economy would feel the effects too : Bloomberg Economics forecasts a maximal tariff scenario would lower US GDP by 0.8% and raise inflation by 4.3% by 2028 if only China retaliates. Broader global retaliation could reduce US GDP by 1.3%, though inflation would increase by just 0.5%. During Trump’s previous term, US tariffs on Chinese exports jumped to 19.3% in 2020. In response, Chinese exporters diversified markets an...