Morning brief: Asian factory data splits on US tariffs; a key US-Africa trade pact expires
A day of significant global developments is underway, as a fresh wave of economic data reveals a deepening divergence in Asia’s manufacturing sector, a landmark US trade pact with Africa expires, and the top trade negotiator in Japan moves to calm fears about a colossal investment fund.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Asian factory activity is split as US tariffs begin to bite
The punishing impact of President Donald Trump’s global trade levies is becoming clear, with the latest manufacturing data from across Asia painting a deeply divided picture.
Private surveys on Wednesday showed that activity in South Korea improved and held steady in Vietnam, a major US supplier.
However, the tariffs appeared to bite into demand in the semiconductor hubs of Taiwan and Japan, as well as in Malaysia, with all three holding below the critical 50-mark that separates contraction from expansion.
The September report marks the first full month of data since the new tariffs came into force on August 7, and it underscores the immense challenge facing the region’s export-oriented economies.
Japan says a 550 billion dollar US investment fund won’t weaken the yen
Japan’s top trade negotiator, Ryosei Akazawa, has stated that the massive 550 billion dollar investment fund that is a central pillar of the new US-Japan trade deal will not weaken the yen or disrupt currency markets.
His comments are a direct attempt to soothe fears that the sheer size of the fund could have unintended consequences.
Akazawa explained that Tokyo will fund the vehicle using methods that draw on the U.S. dollar holdings it already possesses.
“We will operate with caution to make sure that the yen doesn’t weaken, causing a rise in import prices for Japan,” he said.
“We’d calculated that 550 billion dollars is a scale where we can operate without impacting foreign exchange.”
A key US duty-free trade pact with dozens of African nations has expired
A landmark US accord that has for decades granted more than 1,800 products from 32 African nations duty-free access to the world’s largest market expired on Tuesday night.
The African Growth and Opportunity Act (AGOA), a Clinton-era program aimed at promoting development and democracy on the continent, has been halted because the US Congress failed to pass an extension before the deadline.
It is unclear when lawmakers, who have been consumed by a government funding standoff, will take action to resuscitate the pact, leaving a critical trade stimulant in limbo.
India’s Russian oil imports dip in September amid sustained US pressure
India’s oil imports from its leading supplier, Russia, dipped in September but held firm at about a third of the nation’s overall shipments, a sign of quiet defiance in the face of a sustained US pressure campaign.
Cargoes to the world’s third-largest consumer totaled 1.61 million barrels a day, down from 1.72 million the month before, according to Kpler Ltd.
The slight dip comes as Washington continues to single out New Delhi for its Russian crude purchases, which the White House says are helping to fund Moscow’s war in Ukraine. Indian officials have consistently stated that their purchases are price-driven and will continue.
“Russian barrels remain central to India’s crude slate, but volumes are stabilizing at a lower plateau,” said Sumit Ritolia, an analyst at Kpler.
The post Morning brief: Asian factory data splits on US tariffs; a key US-Africa trade pact expires appeared first on Invezz
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US digest: US govt shutdown continues, manufacturing slows, Intel AMD deal
The Emperor’s new clothes
Morning brief: Asian factory data splits on US tariffs; a key US-Africa trade pact expires
A day of significant global developments is underway, as a fresh wave of economic data reveals a deepening divergence in Asia’s manufacturing sector, a landmark US trade pact with Africa expires, and the top trade negotiator in Japan moves to calm fears about a colossal investment fund.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Asian factory activity is split as US tariffs begin to bite
The punishing impact of President Donald Trump’s global trade levies is becoming clear, with the latest manufacturing data from across Asia painting a deeply divided picture.
Private surveys on Wednesday showed that activity in South Korea improved and held steady in Vietnam, a major US supplier.
However, the tariffs appeared to bite into demand in the semiconductor hubs of Taiwan and Japan, as well as in Malaysia, with all three holding below the critical 50-mark that separates contraction from expansion.
The September report marks the first full month of data since the new tariffs came into force on August 7, and it underscores the immense challenge facing the region’s export-oriented economies.
Japan says a 550 billion dollar US investment fund won’t weaken the yen
Japan’s top trade negotiator, Ryosei Akazawa, has stated that the massive 550 billion dollar investment fund that is a central pillar of the new US-Japan trade deal will not weaken the yen or disrupt currency markets.
His comments are a direct attempt to soothe fears that the sheer size of the fund could have unintended consequences.
Akazawa explained that Tokyo will fund the vehicle using methods that draw on the U.S. dollar holdings it already possesses.
“We will operate with caution to make sure that the yen doesn’t weaken, causing a rise in import prices for Japan,” he said.
“We’d calculated that 550 billion dollars is a scale where we can operate without impacting foreign exchange.”
A key US duty-free trade pact with dozens of African nations has expired
A landmark US accord that has for decades granted more than 1,800 products from 32 African nations duty-free access to the world’s largest market expired on Tuesday night.
The African Growth and Opportunity Act (AGOA), a Clinton-era program aimed at promoting development and democracy on the continent, has been halted because the US Congress failed to pass an extension before the deadline.
It is unclear when lawmakers, who have been consumed by a government funding standoff, will take action to resuscitate the pact, leaving a critical trade stimulant in limbo.
India’s Russian oil imports dip in September amid sustained US pressure
India’s oil imports from its leading supplier, Russia, dipped in September but held firm at about a third of the nation’s overall shipments, a sign of quiet defiance in the face of a sustained US pressure campaign.
Cargoes to the world’s third-largest consumer totaled 1.61 million barrels a day, down from 1.72 million the month before, according to Kpler Ltd.
The slight dip comes as Washington continues to single out New Delhi for its Russian crude purchases, which the White House says are helping to fund Moscow’s war in Ukraine. Indian officials have consistently stated that their purchases are price-driven and will continue.
“Russian barrels remain central to India’s crude slate, but volumes are stabilizing at a lower plateau,” said Sumit Ritolia, an analyst at Kpler.
The post Morning brief: Asian factory data splits on US tariffs; a key US-Africa trade pact expires appeared first on Invezz
Read More
US digest: US govt shutdown continues, manufacturing slows, Intel AMD deal