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Japanese stocks rose Thursday as the central bank kept its key interest rates steady as expected, in thin trade with most Asian markets shut for the May 1 holiday.Tokyo’s main Nikkei 225 index closed 1.1 percent higher after the bank’s decision caused the yen to fall against the dollar, boosting Japanese exporters.Several markets were shut in Asia for holidays on Thursday, including in Hong Kong and mainland China.Among open indexes, Sydney edged up 0.2 percent while New Zealand jumped two percent.The Bank of Japan warned that trade tariffs are fuelling global economic uncertainty and revised down its growth forecasts for the world’s fourth-largest economy.US President Donald Trump has imposed hefty levies on trading partners and imports including steel and automobiles to rectify what he says are unfair trade imbalances.”Heightened uncertainties regarding policies including tariffs are likely to have a large impact on business and household sentiment around the world and on the global financial and capital markets,” the BoJ said.Its policy decision sent the yen lower, with one dollar buying 144.41 yen compared to 143.13 yen Thursday morning.”On the back of the US rally on Wednesday and strong earnings results from Microsoft and other US companies, major AI-related stocks including Advantest were bought across the board,” IwaiCosmo Securities said.”In the afternoon, the yen weakened… following the downward revision of the Bank of Japan’s Outlook Report and other factors, which led to a broadening of the rally.”Markets are looking ahead to Friday’s US jobs data for April, which will be the first tangible reading of economic conditions after the Trump administration’s sweeping April 2 tariffs — many of which have been suspended. Wall Street stocks opened sharply lower on Wednesday after US government data showed the economy shrank by an annual rate of 0.3 percent in the first quarter, amplifying recession worries.But they moved gradually higher through the day, rising after mid-morning data showed personal spending in March topped estimates.As more companies pull back from earnings forecasts in the face of the uncertainty regarding US tariffs, tech giants Meta and Microsoft reported quarterly profits that were above expectations.Shares in Meta — which owns Facebook, Instagram and WhatsApp — rose more than four percent in after-market trades.”Strong earnings reports from US IT companies are expected to drive gains, led by the electronics sector,” strategist Takashi Ito of Nomura Securities told Bloomberg.- Key figures at around 0800 GMT -Tokyo – Nikkei 225: UP 1.1 percent at 36,241.70 (close)Hong Kong – Hang Seng Index: closed for holidayShanghai – Composite: closed for holidayEuro/dollar: DOWN at $1.1323 from $1.1342 on WednesdayPound/dollar: DOWN at $1.3314 from $1.3328Dollar/yen: UP at 144.32 yen from 143.18 yenEuro/pound: UP at at 85.01 pence from 84.97 penceWest Texas Intermediate: DOWN 1.2 percent at $57.50 per barrelBrent North Sea Crude: DOWN 1.02 percent at $60.44 per barrelNew York – Dow: UP 0.4 percent at 40,669.36 (close)London – FTSE 100: UP 0.4 percent at 8,494.85 (close)

United States officials have reached out to their Chinese counterparts for talks on vast tariffs that have hammered markets and global supply chains, a Beijing-backed outlet said on Thursday citing sources.Punishing US tariffs that have reached 145 percent on many Chinese products came into force in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.And on Thursday Yuyuan Tantian, a Chinese outlet linked to state broadcaster CCTV, said citing sources that Washington was “proactively” reaching out to China via “multiple channels” for talks on the tariffs.”From a negotiation standpoint the US is currently the more anxious party,” the outlet, which blends analysis with news reporting, said on the X-like platform Weibo.”The Trump administration is facing multiple pressures,” it added.AFP has reached out to China’s foreign ministry for comment.US President Donald Trump has repeatedly claimed that China has reached out for talks on the tariffs.And on Wednesday Trump reiterated there was a “very good chance we’re going to make a deal”.”But we’re going to make it on our terms and it’s got to be fair,” he told a NewsNation “town hall”.Beijing has vehemently denied any talks are taking place while repeatedly urging the United States to engage in dialogue in a “fair, respectful and reciprocal” manner.But it has also said it will fight a trade war to the bitter end if needed, with a video posted on social media this week by its foreign ministry vowing to “never kneel down!”

Rich in solar and wind power, and bulging in critical minerals for renewable energy technology, Australia touts itself as a leader in the race to net zero carbon emissions. But a political battle is being waged ahead of Saturday’s elections over whether to change Australia’s trajectory and add nuclear reactors to the mix for the first time.The row is reminiscent of the “climate wars” — a years-long political face-off over the need to slash carbon emissions — that Prime Minister Anthony Albanese vowed to end when he took power three years ago.Australia sits on some of the world’s largest uranium reserves but it has legally banned nuclear power generation for a quarter of a century.In the run-up to Saturday’s vote, conservative opposition leader Peter Dutton announced a US$200 billion plan to build seven large-scale nuclear reactors by 2050.His proposal would ramp up gas production, slow the rollout of solar and wind projects, and ditch the clean energy goals set by Albanese’s centre-left government.Dutton says nuclear power would be cheaper and more reliable than renewable energy.”I haven’t committed to nuclear energy for votes. I committed to it because it’s in the best interest of our country,” he said in a televised leaders’ debate.Interest in nuclear power is growing internationally as nations struggle to cut their dependence on fossil fuels. Thirty-one countries including the United States, France and Britain have signed up to a pledge to triple nuclear energy capacity by 2050.- Slow, costly -Australia is a fossil fuel powerhouse with vast reserves of coal and gas but it is also drenched in sun, with a broad landscape to accommodate wind turbines and solar panels.The national science agency CSIRO estimates that the nuclear option would be 50 percent more expensive for Australia than renewable energy and take at least 15 years to become operational.”The total development lead time needed for nuclear means it cannot play a major role in electricity sector emission abatement,” it said.Even countries with decades of experience in nuclear power generation struggle to get plants running on time and on budget.France started its latest reactor Flamanville 3 in December — 12 years behind schedule and about 10 billion euros (US$11 billion) beyond its original three-billion-euro budget.Albanese has embraced the global push towards decarbonisation, pouring public money into the renewable sector.The share of renewable energy in Australia’s electricity generation has increased to record highs in recent years, contributing 35 percent in 2023, government data shows.- ‘Dislocation and rupture’ -The energy industry has largely backed a renewables-first pathway as ageing coal-fired plants are retired.”We are in a position now where coal-fired power stations are closing — and they have done a great job for a long time. But they are old and need to be replaced by something,” said Clean Energy Council spokesperson Chris O’Keefe. “The best economic response for Australia right now is to continue on the path we are on. That is, building batteries, solar farms, wind farms,” he told AFP.”What we are seeing is a situation where nuclear energy is being used as an idea to placate the fossil fuel industry and the people they have been traditionally aligned with, but the problem is it will not deliver a single electron for close to two decades,” he said.Dave Sweeney, nuclear power analyst at the Australian Conservation Foundation, said switching the energy strategy now would cause “economic dislocation and rupture”. “Why change horses from renewables when you are halfway there?” Sweeney said. “This is a 1950s piece of policy that is promoting a 1950s sense of technology.”- ‘Outdated prohibitions’ -If Dutton’s conservative coalition wins the election there would be strong community, local government and stakeholder pushback to nuclear reactors being built, Sweeney predicted.”It would cause uncertainty, contest, fights and a lack of action around secure and clean energy. We would be back to hostile and conflict-fuelled and unproductive climate and energy wars,” Sweeney said.Still, nuclear supporters say the spotlight on the issue is long overdue. “Our decades-old nuclear ban no longer reflects the realities of modern reactor technology or the shifting attitudes of Australians,” said Kirsty Braybon, a university academic and nuclear law expert at the Nuclear for Australia lobby group. While other countries were moving ahead with nuclear, Australia was “held back by outdated prohibitions that stifle innovation, jobs and the chance to power a cleaner future”, she said.

The Bank of Japan on Thursday left its key interest rate unchanged but revised down its growth forecasts, warning that US trade tariffs are fuelling economic uncertainty.”The introduction of wide-ranging tariffs is expected to impact global trade activity,” the central bank said.”Heightened uncertainties regarding policies including tariffs are likely to have a large impact on business and household sentiment around the world and on the global financial and capital markets.”Since coming to office in January, US President Donald Trump has embarked on a hardball campaign to rectify what he says are unfair trade imbalances.His administration has imposed hefty levies on multiple trading partners and imports including steel and automobiles.The BoJ said Thursday it now expects Japan’s gross domestic product (GDP) to rise 0.5 percent in fiscal 2025 — down from its previous estimate of 1.1 percent.In fiscal 2026, it expects GDP in the world’s fourth largest economy to expand 0.7 percent, down from 1.0 percent previously forecast.”Japan’s economic growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors,” the bank added.However for growth “factors such as accommodative financial conditions are expected to provide support” and “thereafter, Japan’s economic growth rate is likely to rise”, it said.– Market fragility –The BoJ’s decision to stand pat on interest rates — holding them at around 0.5 percent — following a two-day policy meeting had been widely expected.Bank officials began lifting borrowing costs last year after nearly two decades of ultra-loose monetary policies aimed at kickstarting torpid economic growth in Japan.Masamichi Adachi and Go Kurihara of UBS said ahead of the BoJ policy meeting that “market fragility and uncertainty in the global economy due to the US tariff/trade policies” would lead the BOJ to hold rates.Japanese tariff talks envoy Ryosei Akazawa will hold a second round of negotiations later Thursday in Washington, seeking to secure relief from the trade levies.”We still believe there will be an interest hike later this year,” Katsutoshi Inadome, Senior Strategist at SuMi TRUST, said before the BoJ’s decision.”Fruitful negotiations between Washington and Tokyo to mitigate the impact of tariffs on exporters may help Japanese policy makers in hiking interest rates,” he said.

Global stocks rose for the most part Wednesday, digesting mixed economic data as more companies pull back from earnings forecasts amid uncertainty over US President Donald Trump’s fast-changing trade policy.Wall Street stocks opened sharply lower after government data showed the US economy shrank by an annual rate of 0.3 percent in the first quarter, amplifying worries about a recession. But US equity markets moved gradually higher throughout the day, rising after mid-morning data showed personal spending in March topped estimates. The same report also showed benign inflation data.Both the Dow and S&P 500 finished higher.”The stock market initially gave back some of its recent gains today,” said a summary of the session from Briefing.com. “The rebound mentality was still present, however, leading major equity indices to close well off session lows.”European stocks had broadly advanced earlier following data that showed the eurozone economy expanded more than expected in the first quarter, despite the uncertainty over tariffs.The EU’s official data agency said the 20-country single currency area recorded growth of 0.4 percent over the January-March period from the previous quarter, better-than-expected data that appears to be linked to advance purchases in the United States, before Trump’s tariffs came into effect. But shares in German auto giants Volkswagen and Mercedes-Benz slumped after they reported big drops in the first-quarter net profit.Mercedes-Benz and US-European auto giant Stellantis also suspended their annual financial guidance due to uncertainty over Trump’s 25-percent tariffs on car imports.”Most companies are pulling guidance,” said Jack Ablin of Cresset Capital. “They can’t navigate an economy where they don’t know the rules.”In Asia, data on Wednesday showed that tit-for-tat tariffs between the United States and China began to bite in April, as Chinese manufacturing activity contracted at its fastest pace since July 2023.That came after Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swinging tariffs.”Tariffs are a lose-lose proposition, and the PMI data is our first official look at how it’s affecting China. Our take is that there’s a clear negative shock taking place,” said Lynn Song, chief economist for Greater China at ING.Hong Kong’s stock market advanced, but Shanghai slipped.Markets are looking ahead to Friday’s US jobs data for April, which will be the first tangible reading of economic conditions after Trump’s sweeping “Liberation Day” tariffs, much of which has been suspended. Ablin said Friday’s jobs data for April will be “one of the most important jobs reports we’ve seen for a while” in light of uncertainty about the economy.- Key figures at 2030 GMT -New York – Dow: UP 0.4 percent at 40,669.36 (close)New York – S&P 500: UP 0.2 percent at 5,569.06 (close)New York – Nasdaq DOWN 0.1 percent at 17,446.34 (close)London – FTSE 100: UP 0.4 percent at 8,494.85 (close)Paris – CAC 40: UP 0.5 percent at 7,593.87 (close)Frankfurt – DAX: UP 0.3 percent at 22,496.98 (close)Tokyo – Nikkei 225: UP 0.6 percent at 36,045.38 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 22,119.41 (close)Shanghai – Composite: DOWN 0.2 percent at 3,279.03 (close)Euro/dollar: DOWN at $1.1342 from $1.1387 on TuesdayPound/dollar: DOWN at $1.3328 from $1.3409 Dollar/yen: UP at 143.18 yen from 142.33 yenEuro/pound: UP at 84.97 pence from 84.92 penceWest Texas Intermediate: DOWN 3.7 percent at $58.21 per barrelBrent North Sea Crude: DOWN 1.8 percent at $63.12 per barrel

Stocks slid on Wall Street on Wednesday, pulling European indexes off earlier highs after the US economy contracted in the first quarter, heightening fears about the fallout of President Donald Trump’s tariffs blitz on the world’s largest economy.Instead of increasing slightly as analysts expected, US GDP fell 0.3 percent — a stark reversal from the 2.4 percent growth seen in the fourth quarter of last year.In particular, consumer spending slowed to 1.8 percent, while a later report by the Commerce Department showed the Federal Reserve’s preferred inflation gauge rose 2.3 percent in March, down from 2.7 percent in February but still slightly higher than most analysts expected.”This puts the Fed in an uncomfortable position: Inflation risks are rising even as growth slows” — a perfect recipe for “stagflation”, said Christopher Boucher, investment director at ABN AMRO Investment Solutions.”This uncertainty is likely to weigh on consumer spending, which has supported the American economy up to now,” he said.The report also bodes ill for US labour market data on Friday, which could reveal a larger-than-expected slowdown in hiring as firms brace for tariff turmoil.”Although the precise extent to which tariffs will dampen growth remains unclear, the prevailing view is that the trajectory will be downward rather than upward,” said Jochen Stanzl, chief market analyst at CMC Markets.European stocks had broadly advanced earlier following data that showed the eurozone economy expanded more than expected in the first quarter, despite the uncertainty over tariffs.But shares in German auto giants Volkswagen and Mercedes-Benz slumped after they reported big drops in the first-quarter net profit.Mercedes-Benz and US-European auto giant Stellantis also suspended their annual financial guidance due to uncertainty over Trump’s 25-percent tariffs on car imports, though the US leader softened the levies on Tuesday.In Asia, data on Wednesday showed that tit-for-tat tariffs between the United States and China began to bite in April, as Chinese manufacturing activity contracted at its fastest pace since July 2023.That came after Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.”Tariffs are a lose-lose proposition, and the PMI data is our first official look at how it’s affecting China. Our take is that there’s a clear negative shock taking place,” said Lynn Song, chief economist for Greater China at ING.Hong Kong’s stock market advanced, but Shanghai slipped.Tokyo rose, boosted by a 7.1 percent surge in Sony fuelled by a report that it is considering spinning off its chip unit — a move investors hope will unlock value in the Japanese entertainment and electronics company.Equities had clawed back much of the losses suffered in early April as Trump has shown more flexibility on some issues and as governments hold talks with Washington.US Commerce Secretary Howard Lutnick said he had reached a deal with a country but did not name it, while Treasury Secretary Scott Bessent said progress had been made with India, South Korea and Japan. Oil prices extended losses on concerns that the trade war will slow growth and reduce demand, and as traders expect a stronger increase in oil production by OPEC+.- Key figures at 1540 GMT -New York – Dow: DOWN 0.6 percent at 40,279.72 pointsNew York – S&P 500: DOWN 0.9 percent at 5,510.05New York – Nasdaq DOWN 1.4 percent at 17,224.20London – FTSE 100: UP 0.4 percent at 8,494.85 (close)Paris – CAC 40: UP 0.5 percent at 7,593.87 (close)Frankfurt – DAX: UP 0.3 percent at 22,496.98 (close)Tokyo – Nikkei 225: UP 0.6 percent at 36,045.38 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 22,119.41 (close)Shanghai – Composite: DOWN 0.2 percent at 3,279.03 (close)Euro/dollar: DOWN at $1.1342 from $1.1390 on TuesdayPound/dollar: DOWN at $1.3338 from $1.3399 Dollar/yen: UP at 142.82 yen from 142.22 yenEuro/pound: DOWN at 85.00 pence from 85.08 penceWest Texas Intermediate: DOWN 0.8 percent at $59.91 per barrelBrent North Sea Crude: DOWN 1.0 percent at $62.62 per barrel

Stock markets mostly rose Wednesday ahead of key US economic and earnings reports that could offer fresh insights into the health of the world’s largest economy amid Donald Trump’s tariffs.Investors are awaiting the release of closely watched US inflation and economic growth data due later in the day, along with results from tech titans Microsoft and Meta, which owns Facebook and Instagram.”Earnings reports and recession risks are chunky issues for investors to deal with,” Kathleen Brooks, research director at trading group XTB.”Market sentiment is quick to change direction in the current climate, so expect Wednesday’s key economic and corporate releases to have a big impact on markets,” she added.Most European stocks advanced following data that showed the eurozone economy expanded more than expected in the first-quarter, despite uncertainty over tariffs.Paris and Frankfurt both climbed 0.6 percent as data showed the French economy returned to growth and the German economy grew fast than expected at the start of the year. Shares in German auto giants Volkswagen and Mercedes-Benz fell after they reported big drops in the first-quarter net profit.Mercedes-Benz and US-European auto giant Stellantis also suspended their annual financial guidances due to uncertainty over Trump’s 25-percent tariffs on car imports, though the US leader on Tuesday softened the levies.London made more modest gains, held back by losses in oil and mining stocks amid concerns over weaker Chinese demand. Data on Wednesday showed that tit-for-tat tariffs between the United States and China began to bite in April, as Chinese manufacturing activity contracted at its fastest pace since July 2023.That came after Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.”Tariffs are a lose-lose proposition, and the PMI data is our first official look at how it’s affecting China. Our take is that there’s a clear negative shock taking place,” said Lynn Song, chief economist for Greater China at ING.Hong Kong’s stock market advanced, but Shanghai slipped.Tokyo rose, boosted by a 7.1 percent surge in Sony fuelled by a report that it is considering spinning off its chip unit — a move investors hope will unlock value in the Japanese entertainment and electronics company.Equities have clawed back a lot of the huge losses suffered at the start of the month as Trump has shown a little more flexibility on some issues and as governments hold talks with Washington.US Commerce Secretary Howard Lutnick said he had reached a deal with a country but did not name it, while Treasury Secretary Scott Bessent said progress had been made with India, South Korea and Japan. Oil prices extended losses on concerns that the trade war will slow growth and reduce demand, and as traders expect a stronger increase in oil production by OPEC+.- Key figures at 1045 GMT -London – FTSE 100: UP 0.2 percent at 8,476.28 points Paris – CAC 40: UP 0.6 percent at 7,598.46Frankfurt – DAX: UP 0.6 percent at 22,552.08Tokyo – Nikkei 225: UP 0.6 percent at 36,045.38 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 22,119.41 (close)Shanghai – Composite: DOWN 0.2 percent at 3,279.03 (close)New York – Dow: UP 0.8 percent at 40,527.62 (close)Euro/dollar: DOWN at $1.1364 from $1.1390 on TuesdayPound/dollar: DOWN at $1.3360 from $1.3399 Dollar/yen: UP at 143.03 yen from 142.22 yenEuro/pound: DOWN at 85.06 pence from 85.08 penceWest Texas Intermediate: DOWN 1.0 percent at $59.84 per barrelBrent North Sea Crude: DOWN 1.0 percent at $62.71 per barrel

Stocks mostly rose Wednesday ahead of key US economic and earnings reports, while traders took in their stride data showing Chinese factory activity contracted at its fastest pace for nearly two years as Donald Trump’s trade war kicked in.While markets have recovered some of the losses suffered after the US president’s “Liberation Day” tariffs announcement on April 2, uncertainty still rules as countries look to cut deals to avert the worst of Washington’s duties.China has pointedly not flown to the United States in a bid to pare back the levies of up to 145 percent imposed on its goods, instead hitting back with 125 percent tolls of its own.But the effect of the measures began to shine through in April, with data Wednesday showing manufacturing activity contracted at its fastest pace since July 2023 — a month after expanding at its quickest rate for 12 months.That came after Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.And observers fear things will only worsen.”The weak manufacturing PMI in April is driven by the trade war,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.”The macro data in China and the US will weaken further… as the trade policy uncertainty delays business decisions,” he added.The figures saw fresh calls for Beijing to introduce new stimulus measures, though Zichun Huang, China economist at Capital Economics, warned in a note that more fiscal support “is unlikely to fully offset the drag”, predicting the economy to expand just 3.5 percent this year.Still, Lynn Song, chief economist for Greater China at ING, said: “Tariffs are a lose-lose proposition, and the PMI data is our first official look at how it’s affecting China. Our take is that there’s a clear negative shock taking place.”But, all things considered, survey data suggests the shock may be less than what the more bearish market participants feared.”Shares mostly fell in early trade but some bounced back as the day wore on.Hong Kong, Sydney, Singapore, Taipei, Manila, Mumbai, Bangkok and Jakarta all rose but Shanghai, Seoul and Wellington fell.Tokyo rose thanks to a 7.1 percent surge in Sony fuelled by a report that it is considering spinning off its chip unit, raising expectations that such a move would unlock value in the Japanese entertainment and electronics company.London, Frankfurt and Paris also rose.Equities have clawed back a lot of the huge losses suffered at the start of the month as Trump has shown a little more flexibility on some issues and as governments hold talks with Washington.US Commerce Secretary Howard Lutnick said he had reached a deal with a country but did not name it, while Treasury Secretary Scott Bessent said progress had been made with India, South Korea and Japan.But Saxo chief investment strategist Charu Chanana warned economic data will likely worsen.”We’ve probably seen peak tariff rates, but not peak tariff uncertainty,” she said in a commentary. “The hard data still reflects the impact of front-loaded demand, as companies and consumers rushed to buy goods ahead of expected tariff increases. “We haven’t yet seen the real data showing the drag from sustained uncertainty and elevated tariff costs. As that uncertainty filters through business decisions, we expect a more meaningful slowdown in real economic activity — in production, hiring, and investment.”In short, the rate shock may be behind us, but the real growth damage is just starting to unfold.”Investors are awaiting the release of key US inflation and economic growth data due later in the day, while jobs figures are lined up for Friday.This week also sees the release of earnings from Wall Street titans including Microsoft, Apple, Meta and Amazon, which observers hope will provide an insight into how corporate America is dealing with the tariffs crisis, and how they expect to fare.- Key figures at 0810 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 36,045.38 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 22,119.41 (close)Shanghai – Composite: DOWN 0.2 percent at 3,279.03 (close)London – FTSE 100: UP 0.1 percent at 8,470.17 Euro/dollar: DOWN at $1.1372 from $1.1390 on TuesdayPound/dollar: DOWN at $1.3380 from $1.3399 Dollar/yen: UP at 142.81 yen from 142.22 yenEuro/pound: DOWN at 85.00 pence from 85.08 penceWest Texas Intermediate: DOWN 1.7 percent at $59.41 per barrelBrent North Sea Crude: DOWN 1.5 percent at $63.28 per barrelNew York – Dow: UP 0.8 percent at 40,527.62 (close)

Tokyo’s tariffs envoy departed Wednesday for a second round of negotiations in Washington, where Japan could offer concessions such as tweaking vehicle import procedures to secure relief from Donald Trump’s trade levies.Ryosei Akazawa may also reportedly offer to buy more US corn and soybeans, or continue discussions on developing liquefied natural gas (LNG) fields in Alaska.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most countries plus steeper levies on cars, steel and aluminium.Trump also announced “reciprocal” tariffs on Japan of 24 percent, but later put them on pause for 90 days along with those on other nations except China.Akazawa will hold talks Thursday with US Treasury Secretary Scott Bessent and other officials, following an initial meeting in mid-April.”There has been no change to our stance of strongly demanding that all the tariffs be scrapped. The main goal is to achieve that, and we can’t budge,” he said Monday.He told reporters at the airport on Wednesday that “Japanese companies are losing money each and every day” because of US tariffs.”When I spoke to the head of an automaker, the person told me that a million dollars is being lost every hour,” he said.”I hope to make progress, whether it is one or two steps forward,” by targeting a “win-win relationship”.Trump has complained about Japan’s safety testing rules for US vehicle imports, and local media said simplified screening processes could be a bargaining chip for Tokyo.LNG and agricultural imports could also be on the table.But buying more US rice — another expected option — could be “politically difficult” because Japanese farmers are a strong support base for the ruling party, Norihiro Yamaguchi of Oxford Economics told AFP.Trump has repeatedly said he wants a stronger yen to make US exports more competitive, although Akazawa said the Japanese currency was not discussed at the first talks.However, “I don’t really read a lot from it, because especially on the currency market, to make a big surprise makes things bigger”, Yamaguchi said.The yen has risen significantly since Trump’s tariffs were announced — it was trading at 142 for a dollar on Wednesday, compared with 158 in mid-January.

China’s factory activity shrank this month, official data showed Wednesday, with Beijing blaming a “sharp shift” in the global economy as it fights a mounting trade war with the United States.Punishing US tariffs that have reached 145 percent on many Chinese products came into force in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.And the impact of the measures began to show through in April, with the Purchasing Managers’ Index — a key measure of industrial output — falling to 49 in April, according to the National Bureau of Statistics (NBS), below the 50-point mark that separates growth and contraction.The reading for April was down from March’s 50.5, which was the highest in 12 months, and represented a steeper decline than the 49.7 forecast in a Bloomberg survey.”In April, affected by factors such as a high base from earlier rapid manufacturing growth and a sharp shift in the external environment, the manufacturing PMI fell,” NBS statistician Zhao Qinghe said in a statement.The non-manufacturing PMI, which measures activity in the services sector, came in at 50.4, down from 50.8 in March.Economists have warned that the disruption in trade between the tightly integrated US and Chinese economies could threaten businesses, increase prices for consumers and cause a global recession.Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.”The weak manufacturing PMI in April is driven by the trade war,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.”The macro data in China and the US will weaken further… as the trade policy uncertainty delays business decisions,” he added.China’s economy, the world’s second-largest, has struggled to fully recover since the Covid-19 pandemic and is also grappling with sluggish domestic demand and a protracted property sector crisis.”China’s economy is coming under pressure as external demand cools,” said Zichun Huang, China Economist at Capital Economics, in a note.”Although the government is stepping up fiscal support, this is unlikely to fully offset the drag, and we expect the economy to expand just 3.5 percent this year,” Huang added.Authorities last year announced a slew of aggressive stimulus measures aimed at boosting growth including rate cuts and the easing of some home purchasing restrictions.And in March, leaders at a key political meeting vowed to create 12 million new urban jobs in 2025.They also said they would aim for growth this year of five percent — the same as 2024 and a goal considered ambitious by many economists.