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Simple Summary Rupee posts its biggest gain in over three years Indian stocks jump the most since 2021 US slashes tariffs on Indian goods to 18% Deal removes a major overhang on Indian markets What Happened Indian markets roared higher after US President  Donald Trump  announced a sharp  tariff cut on Indian goods to 18% , down from 25%, while also  scrapping an additional 25% levy  tied to India’s purchases of Russian crude. Market Reaction Nifty 50 Index:   +5% intraday  (biggest jump since 2021) Indian rupee:   +1.2% to 90.46/USD , its strongest move in more than three years The deal delivered  much-needed relief  to the rupee, which had been  Asia’s worst-performing currency in January . Why It Matters India sends a  large share of exports to the US Tariffs had weighed on  equities, currency and foreign inflows The agreement  lifts a key source of uncertainty  for investors “The deal finally provides some rel...

  Key Takeaways US President Donald Trump  arrived in  South Korea , the final stop of his Asia tour, with optimism for a  trade breakthrough with China . Talks with  Chinese President Xi Jinping  are expected to produce a  tariff pause and fentanyl export curbs , lifting  global market sentiment . Despite optimism,  US–South Korea investment negotiations remain deadlocked , and  North Korea’s missile test  added geopolitical tension to the backdrop. Trump’s Asia Tour Reaches Its Climax President Trump touched down in  Busan, South Korea , on Wednesday morning, following stops in  Malaysia  and  Japan . He will meet  South Korean President Lee Jae Myung  in Gyeongju before holding crucial trade talks with  China’s Xi Jinping  on Thursday — a meeting investors are watching closely as a potential turning point in the ongoing  US–China trade war . Trump struck an upbeat tone en route: 💬...

 Malaysia’s benchmark  FTSE Bursa Malaysia KLCI (FBM KLCI)  closed higher on Monday, supported by optimism surrounding the  ASEAN Summit  and improved regional sentiment. The index gained  5.11 points (+0.32%)  to finish at  1,618.38 , with trading volume rising to  3.44 billion units worth RM2.91 billion . Market breadth was balanced, with  543 gainers and 543 losers . Positive sentiment came as investors digested encouraging developments from the ongoing  ASEAN Summit , which reinforced confidence in Malaysia’s leadership role in the region. Top Gainer:  SDG (5285.MY) — RM5.40 (+2.86%) Top Loser:  99SMART (5326.MY) — RM3.11 (–2.81%) USD/MYR:  4.21 (–0.31%) Wall Street Recap Major US indices hit fresh record highs on Monday amid  renewed optimism over US-China trade talks . Presidents  Donald Trump  and  Xi Jinping  are expected to meet during a South Korean economic summit this week, raising...

Asean and China have officially signed the  Asean-China Free Trade Area 3.0 (ACFTA 3.0) , marking a major milestone in bilateral trade relations between the regional bloc and the world’s second-largest economy. The  signing ceremony  took place on the final day of the  47th Asean Summit and Related Summits , witnessed by  Prime Minister Datuk Seri Anwar Ibrahim  and  Chinese Premier Li Qiang . The agreement was signed by  Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz  and  China’s Minister of Commerce Wang Wentao . Expanding a Two-Decade Partnership The ACFTA 3.0 builds on more than  20 years of cooperation  under the Asean-China Free Trade Area framework. The original ACFTA agreement was inked in  2002  and fully implemented in  2010 , making it the  first FTA established between Asean and an external partner . Since then, the pact has been a cornerstone for trade growth, in...

US President  Donald Trump  said Indian Prime Minister  Narendra Modi  has pledged to stop buying oil from Russia, marking a potential shift that could reshape global crude trade and intensify pressure on  Moscow’s energy revenues . India and China are currently the  two largest buyers of Russian seaborne crude , taking advantage of steep discounts since Western sanctions on Russia began in 2022 following its invasion of Ukraine. “I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia,” Trump told reporters. “That’s a big step. Now we’re going to get China to do the same thing.” India Under Pressure to Pivot India’s Russian oil imports averaged  1.62 million barrels per day in September , about  one-third of its total oil imports . For months, New Delhi defended the purchases as essential for  energy security , but the latest development suggests a policy turnaround. Trump recent...

Key Takeaway:  U.S. President Donald Trump signaled a softer stance toward Canada in tariff negotiations but gave no firm commitment on the future of the US-Mexico-Canada Agreement (USMCA), keeping trade uncertainty elevated ahead of the 2026 review. Overview U.S. President  Donald Trump  on Tuesday said he intends to treat  Canada “fairly”  in talks over U.S. tariffs on Canadian goods but stopped short of endorsing the current  USMCA  trade pact. “I think they are going to walk away very happy,” Trump told reporters ahead of a meeting with Canadian Prime Minister  Mark Carney  at the White House. Carney, in Washington for the second time in five months, faces growing domestic pressure to resolve tariffs on steel, autos, and other key exports. Progress but No Breakthrough Canadian Trade Minister  Dominic LeBlanc  described the meeting as “positive and substantive” but said no deal was imminent. “I am happy because we have momentum n...

Sweeping Import Duties Effective Oct 1 President Donald Trump announced a fresh round of tariffs that will take effect on  Oct 1 , targeting a wide range of imported goods including pharmaceuticals, building materials, furniture, and heavy trucks. Pharmaceuticals Face 100% Tariff Unless Produced in U.S. Under the new measures,  branded and patented drugs  will face  100% duties  unless their manufacturers have already started or are in the process of building production facilities in the United States. Companies with U.S. facilities under construction will be exempt from the new levy. Trump did not specify under which authority the tariffs are being imposed. Building Materials and Furniture Hit With 50%–30% Tariffs Imported  kitchen cabinets, bathroom vanities, and related products  will face  50% tariffs , while  upholstered furniture  will be subject to  30% tariffs . Trump claimed that foreign suppliers have been “flooding” the U...

 Key Takeaways NODX slump:  Fell  11.3% YoY  in August, missing consensus forecast of +1%. Electronics:  Down  6.5% , led by disk media (-28.1%), integrated circuits (-7.4%), and PC parts (-36.9%). Non-electronics:  Down  13% , with steep falls in food preparations (-51.4%) and petrochemicals (-23.2%). Markets hit:  Exports to  US (-28.8%) ,  China , and  Indonesia  fell sharply; gains seen in EU, Taiwan, and South Korea. Bright spot:   Non-oil re-exports +12.3% , with electronics re-exports up 21.8% on demand for PCs, ICs, and telecoms equipment. Outlook:  Authorities expect growth to slow in 2H25 as tariff headwinds bite, despite front-loading earlier in the year. Breakdown of August Trade Data Singapore’s  non-oil domestic exports (NODX)  registered their sharpest fall in over a year, reflecting broad-based weakness in both electronics and non-electronics shipments. Electronics exports fell on a high...

Key Takeaway:  Canadian aluminium producers are diverting shipments from the U.S. to Europe after  President Trump reinstated and later doubled tariffs  on imports, pushing U.S. aluminium prices to record premiums. Export Shift Quebec aluminium exports (Q2 2025): U.S.:  Fell to  78%  of shipments (vs.  95%  in Q1) Europe:  Jumped to  18%  of shipments (vs. just  0.2%  in Q1) Quebec accounts for  ~90% of Canada’s aluminium capacity , making the U.S. its traditional main buyer due to proximity. Producer Responses Alcoa Corp:  Diverted  100,000 metric tons  of Canadian aluminium away from the U.S. in Q2, sending more to Europe. Aluminerie Alouette (40% Rio-owned):  Sent  57% of Q2 output to Europe , compared with  4% in Q1 . Rio Tinto:  Declined shipment data but has reportedly curbed U.S. exports, instead  reselling rivals’ supplies  to American buyers to bypass tariffs. Mark...

Key Takeaway: China’s legislature is reviewing its first foreign trade law revision in 21 years, aimed at bolstering legal authority for countermeasures in escalating trade conflicts. The update signals Beijing’s readiness to deploy a wider toolkit — from trade bans to supply-chain support — as global tariff barriers intensify. Stronger Countermeasure Powers The draft revision would allow restrictions on foreign individuals or firms deemed a threat to China’s sovereignty and security. It also proposes a “trade adjustment assistance” system to cushion supply-chain disruptions. Analysts note that open-ended language could formalize tools China has already used, such as export controls and investigations into foreign companies. Rising Trade Frictions The move comes as trade tensions flare globally. Washington and Beijing extended a 90-day tariff truce in August, but frictions remain after the U.S. imposed sweeping duties on Chinese goods. Separately, Beijing introduced anti-dumping duties...

 Key Takeaway The Trump administration’s largest-ever worksite raid—detaining  475 workers at Hyundai’s EV battery plant in Georgia —has sparked diplomatic tensions with South Korea. About  300 South Korean workers will be flown home this week , while Washington signals more immigration crackdowns ahead. What Happened The Raid:  U.S. federal agents raided Hyundai’s $4.3B car battery plant in Ellabell, Georgia, arresting  475 workers , including  300 South Koreans , over alleged illegal employment practices. Scale:  Officials called it the  biggest single-site enforcement operation  in DHS history, using armored vehicles in the sweep. Aftermath:  South Korea expressed regret, criticizing the public footage of shackled workers. A chartered flight will bring the detained Koreans home once paperwork clears, likely by  Wednesday . Trump’s Stance Tough Talk:  Border czar Tom Homan vowed more workplace raids, saying firms exploit undo...

Key Takeaway The US has officially cut tariffs on Japanese cars and auto parts from 25% to 15% under a new trade deal with Japan. In return, Tokyo will lower tariffs on US goods and commit  US$550 billion  to US infrastructure projects. What Happened President Trump signed an  executive order  Thursday, finalizing last month’s trade pact. The new auto tariff rates are  retroactive to Aug. 7 . This marks a significant shift in US-Japan trade relations, aiming to reduce tension and strengthen economic ties. Market Impact Japanese automakers rallied : Toyota (TM): +2.40% Honda (HMC): +1.91% US carmakers also gained modestly: Ford (F): +0.52% EV stocks like Lucid (LCID) slipped, reflecting competitive concerns. Investor Angle Lower tariffs should: Boost competitiveness of Japanese automakers in the US. Open opportunities for US exporters gaining improved access to Japan. Channel massive Japanese capital into  US infrastructure  — potentially lifting relate...

Effective Date and Scope The U.S. will implement  higher tariffs on dozens of nations effective Aug. 7 , following an executive order signed by President Trump. The move ends the temporary pause granted in April to allow for negotiations and gives U.S. Customs time to update the Harmonized Tariff Schedule. Tariff Structure Major Economies:  15% tariffs on the European Union, Japan and South Korea. Small Deficit Nations:  15% tariffs also applied to countries where the U.S. runs a small trade gap. Trade Surplus Nations:  10% tariffs imposed on partners where the U.S. runs a surplus. Southeast Asia:  Indonesia and the Philippines face 19%; Vietnam at 20%. China-Linked Goods:  Items containing Chinese content may face  higher unspecified levies . Market Implications The across-the-board hike signals a  broad-based protectionist shift , with potential ripple effects on  global supply chains and emerging-market exports . Southeast Asian exporters ...

There’s a new twist in global trade that might actually be good news for your wallet. A recent European Central Bank (ECB) blog post says if China starts selling more products to Europe instead of the US,  prices in the eurozone could drop next year . Why would this happen? Right now, China is negotiating a trade deal with the US. If those talks don’t work out and the US raises tariffs on Chinese goods (possibly up to a huge  135% ), China would likely send more of its products to Europe. When more goods hit the market,  supply goes up . And when supply goes up, prices often come down. How much could prices fall? The ECB blog estimates eurozone inflation could dip by  0.15% next year , when it’s already expected to be lower at around 1.6%. Everyday items like electronics, home appliances, and other non-energy goods might see the biggest price drops. The full effect could take  about a year or so  before you notice it in stores. If Europe imports around...

The  US dollar index  slipped  0.13% to 98.77  on Wednesday, ending a four-day winning streak as traders turned cautious before the  Federal Reserve’s policy meeting . The pullback comes after a sharp rally driven by the US-EU trade deal earlier this week. Markets Await Powell and Jobs Data Investors are focused on  Fed Chair Jerome Powell’s remarks  amid ongoing tensions with the White House. A  September rate cut remains the base case , but upcoming economic data, including Friday’s US jobs report, will be critical in shaping expectations. The Fed is widely expected to keep rates unchanged at this meeting. “Markets will be paying attention to Powell’s tone and any signs of internal dissent within the committee,” said Julien Lafargue of Barclays Private Bank. Euro and Yen Move The  euro rose 0.15% to US$1.1562 , bouncing from a one-month low. Despite gaining  11.9% year-to-date , it is on track for its  first monthly decline since ...

South Korean Finance Minister  Koo Yun-cheol  vowed Tuesday to secure a “mutually beneficial” trade agreement with the United States as the Aug. 1 tariff deadline nears. Koo departs for Washington to meet U.S. Treasury Secretary  Scott Bessent  in a last-minute push to avert punitive tariffs on South Korea’s key industrial exports. The planned talks were postponed last week due to Bessent’s scheduling conflict. “We will make the best effort to derive an agreement based on our national interest, that would allow South Korea and the United States to co-exist,” Koo told reporters before leaving Seoul. Koo will join  Industry Minister Kim Jung-kwan  and  Minister for Trade Yeo Han-koo , who are already in Washington holding discussions with U.S. officials, including Commerce Secretary  Howard Lutnick , as part of an “all-out response.” President  Donald Trump  has threatened to impose steep tariffs unless bilateral deals are finalized before...

European auto shares tumbled Monday even after the U.S. and European Union agreed on a new trade framework that slashes threatened tariffs on EU goods. The deal, announced Sunday in Scotland, reduces import duties on European automobiles from a potential 30% to  15% . While the cut avoids a full-scale trade war, the market response was anything but celebratory. Auto Stocks Take a Hit Volkswagen (VWAGY)  dropped 2.9% BMW  slid 3.2% Mercedes-Benz (MBGYY)  fell 2.4% U.S.-listed  Stellantis (STLA)  sank 5.3% Ford (F)  and  GM (GM)  eased 1.1% and 0.3%, respectively The declines came despite European industry leaders calling the agreement a “relief.” German Automotive Association President Hildegard Müller said the framework prevented “further escalation” but warned the 15% levy would still  cost German automakers billions annually . Investor Sentiment: Relief or Reality Check? The muted market reaction suggests investors were hoping for more...

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 ...

The  S&P 500  and  Nasdaq Composite  opened at fresh record highs Monday after the US and European Union struck a trade pact slashing tariffs, setting a bullish tone for a week filled with megacap earnings, a Fed meeting, and a looming tariff deadline. S&P 500:  +0.08% Nasdaq Composite:  +0.28% Dow Jones:  -0.10% at 44,855.92, roughly 215 points from its record. Trade Deal Boosts Confidence President Donald Trump and European Commission President Ursula von der Leyen agreed to cut EU import tariffs to  15% , half the initially threatened 30%. The move follows a series of deals with Japan, Indonesia, and the Philippines last week, fueling hopes that a global trade war may be avoided. Markets Brace for Key Earnings & Fed Meeting The rally faces a critical test as  Meta, Microsoft, Amazon, and Apple —four of the “Magnificent Seven”—report earnings this week. Alphabet recently sparked AI optimism with a major capex boost. Tesla edged ...