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US President Donald Trump on Wednesday played up prospects of a “fair deal” on trade with China, but his top officials offered few details of how Washington might de-escalate its damaging tariff war with Beijing.Trump told reporters his country would have a “fair deal with China,” adding that “everything’s active” when asked if Washington was talking to Beijing.But how soon the tariffs can be lowered “depends on them,” Trump said, referring to Beijing, even as he maintained that he gets along “very well” with Chinese President Xi Jinping and hopes they can reach an agreement.Trade tensions between the world’s two biggest economies have soared as Trump ramped up levies on imports from China this year, imposing an additional 145 percent tariff on many products over practices Washington has deemed unfair, and other issues.Beijing in turn has countered with new 125 percent tariffs on US goods.Despite signals that Washington is looking towards a fair agreement, the state of discussions remains murky.Asked if there is direct US contact with China on trade, Trump said: “Every day.”But earlier Wednesday, US Treasury Secretary Scott Bessent told reporters that the two countries are “not yet” talking when it comes to lowering tariffs.”I think both sides are waiting to speak to the other,” he said at an event on the sidelines of the International Monetary Fund and World Bank’s spring meetings in Washington.He added that there is no unilateral offer from Trump to slash duties on Chinese goods.- ‘An embargo’ -Bessent said the staggeringly high tariffs both countries have imposed on each other’s goods have to come down before negotiations can occur.”I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way,” he added on the sidelines of an Institute of International Finance forum.”This is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interest,” Bessent said, stressing that “de-escalation by both sides is possible.”But he had no timeframe on how soon bilateral talks could take place.”It’s both a blessing and a curse that the strongest relationship is at the very top,” Bessent said, referring to Trump’s ties with Chinese counterpart Xi. But with “any de-escalation, the talks would not begin at the very top.”Joseph Grieco, professor of political science at Duke University, told AFP that Trump may continue to chase China for a deal “to keep the financial markets off his back.””I worry Trump will eventually offer President Xi a favorable deal, one that doesn’t address the serious economic problems the US actually has with China,” he said.While Trump has swiftly rolled out sharp tariffs on different countries and sectors, he has also been quick to introduce certain exemptions — most recently some temporary reprieve for tech products like smartphones and chipmaking tools.And he could widen the carveouts, the Financial Times reported Wednesday, saying Trump could exempt car parts from some tariffs on Chinese imports — alongside those on steel and aluminum.On Wednesday afternoon, Trump said he was not considering changes to US auto tariffs but noted that levies on Canada could rise in terms of cars.Separately, Bessent said he did not have a stance on whether the president had the authority to fire Federal Reserve Chair Jerome Powell if he wanted to.He suggested Trump’s previous comment that the “termination” of Powell could not come fast enough might also refer to the end of the Fed chief’s term.Earlier Wednesday, Bessent said in a speech that Beijing’s export-reliant economic model is “unsustainable” and “not only harming China but the entire world.”He stressed US concerns around trade imbalances that the Trump administration says it hopes to address through sweeping tariffs.But Bessent maintained that “America first does not mean America alone.”He insisted the administration’s moves are broadly a call for deeper collaboration and mutual respect among trading partners, while taking aim at policy choices by other countries that he said have hollowed out US manufacturing and put its security at risk.

A coalition of 12 American states filed a lawsuit Wednesday to challenge the Trump administration’s tariffs, saying the president cannot institute the levies without the approval of Congress.”President Trump’s insane tariff scheme is not only economically reckless — it is illegal,” Arizona Attorney General Kris Mayes said in a statement. The southwestern state is joined by Democratic-led Minnesota, New York, Oregon and others in the filing. Separately, California filed a similar suit a week ago.President Donald Trump has sent markets into tumult in his second term, turning decades of free trade policy on its head with his “Liberation Day” announcements of new tariffs against numerous countries.Trump has imposed an additional 145 percent import duties on China, and Beijing responded with its own 125 percent tariffs on US goods. On Wednesday, Trump told reporters he’s working on a “fair deal with China.”Meanwhile he has imposed 10 percent tariffs on other trade partners — and he is threatening more punishing levies.In the lawsuit filed Wednesday, the states argue that the 1977 law invoked by Trump does not allow him to use emergency measures to impose tariffs, a power constitutionally reserved for Congress.”By claiming the authority to impose immense and ever-changing tariffs on whatever goods entering the United States he chooses, for whatever reason he finds convenient to declare an emergency, the President has upended the constitutional order and brought chaos to the American economy,” the lawsuit alleges.Trump has said his protectionist policy will return manufacturing jobs to the United States. “No matter what the White House claims, tariffs are a tax that will be passed on to Arizona consumers,” Mayes said.On Wednesday, The New York Times reported that Trump’s approval rating has fallen steadily during his first three months in office, hitting a low of 44 percent this week. Democrats are seizing the opportunity to illustrate how his policies are hurting pocketbooks.Last week, California Governor Gavin Newsom called Trump’s tariff policy “the worst own-goal in the history of this country.”

Boeing’s CEO confirmed Wednesday that China had stopped accepting new aircraft due to the US-China trade war, as the company’s shares surged following a smaller than expected loss.In a televised interview with CNBC, Boeing Chief Executive Kelly Ortberg said Chinese customers had “stopped taking delivery of aircraft due to the tariff environment,” adding that if the halt continued, the aviation giant would soon market the jets to other carriers.President Donald Trump’s trade conflicts with China and other countries loom as a question mark for Boeing, a major US exporter, despite Wednesday’s solid results.Boeing had planned to deliver around 50 aircraft to China in 2025, said Ortberg, adding that the company wouldn’t “wait too long” to send the jets to other customers.”I’m not going to let this derail the recovery of our company, so we’ll give the customers an opportunity if they want to take the airplanes,” Ortberg said.”That’s what we prefer to do. But if not, we’re gonna remarket those airplanes.”The comments came as Trump and top administration officials have, over the last day, spoken more optimistically about a trade accord with China. But Treasury Secretary Scott Bessent told reporters Wednesday that Washington is “not yet” speaking with Beijing on tariffs.Boeing’s engagement with the White House on trade has been “very dynamic,” Ortberg said on a conference call with analysts.”I can’t predict” the course of trade talks, Ortberg said. “We do hear signs that indicate that there will be negotiated settlements… I just don’t know the timing.”A priority is “to make sure we don’t see more countries in a similar boat as where we are with China,” Ortberg said.Boeing downplayed the impact of Trump’s tariffs, saying steel and aluminum make up only one or two percent of aircraft costs, with most of the raw material supplied domestically anyway. Under a US duty drawback program, Boeing can recover custom duties on certain goods when they export the taxed item.- Smaller loss -The aviation giant reported a loss of $123 million in the first quarter, smaller than the $343 million loss in the year-ago period. Revenues rose 18 percent to $19.5 billion.In its earnings release, Boeing confirmed targets to raise commercial plane production as it bolsters its safety efforts following deadly crashes and other major incidents.The company reaffirmed that production of its 737 MAX will hit 38 per month in 2025, while output of the 787 Dreamliner will climb to seven per month from five per month.Boeing said it still expects first delivery of the 777-9 in 2026.Boeing also reported a cash burn of $2.3 billion, “much better” than the expected $3.7 billion hit to free cash flow, according to analysts at TD Cowen.Boeing on Tuesday announced plans to sell portions of its digital aviation solutions business to software-focused investment firm Thoma Bravo for $10.6 billion as it seeks to bolster its financial position.Ortberg told analysts that he is considering some other divestments of assets “smaller” than those in the Thoma Bravo deal, which includes Jeppesen, an 81-year-old aviation navigation company.Ortberg joined Boeing last summer following a leadership shakeup in the wake of a January 2024 Alaska Airlines flight that made an emergency landing after a panel blew out mid-flight.Before that, there were deadly plane crashes on the 737 MAX in 2018 and 2019 in Indonesia and Ethiopia.To win back the confidence of lawmakers and customers, Boeing has been implementing quality control enhancements under close scrutiny of federal regulators.”Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality,” Ortberg said in a press release. Boeing led the Dow index Wednesday, rising six percent.

A relief rally swept global equity markets Wednesday as comments by US President Donald Trump that he had “no intention” of firing the head of the Federal Reserve and his signals of possible tariff cuts for China reassured investors.Global markets, already upended by Trump’s trade war, were hit at the start of the week by fears he was looking to remove central bank boss Jerome Powell for not cutting interest rates, with the US president calling him a “major loser” and “Mr. Too Late”.Experts warned such a move would deal a blow to the Fed’s independence and spark a crisis of confidence in the world’s top economy.However, Trump tempered those fears on Tuesday. “I have no intention of firing him,” he said.Further comments by Trump on Tuesday indicating a more conciliatory approach to the trade war with China added to the positive market sentiment.”These comments have given markets a sense of optimism that recent chaos might have peaked and we’re heading towards calmer waters,” said AJ Bell investment director, Russ Mould. Wall Street’s main equity indices, which had already gained more than two percent on Tuesday, rose again Wednesday. The broad-based S&P 500 finished 1.7 percent higher.Markets are climbing on “any headline that’s less negative on trade,” said Art Hogan of B. Riley Wealth Management. “We’ve moved into a slightly more positive position but we still don’t know what the endgame will be on trade,” Hogan saidEuropean stock markets also rallied, with Frankfurt gaining more than three percent.Meanwhile, data showed that business activity in the eurozone remained “broadly unchanged” in April as manufacturing held up in the face of US tariffs despite waning confidence for the year ahead. In Britain, however, the purchasing managers’ index tumbled more than expected to a two-and-a-half-year low. On trade, Washington has imposed additional tariffs of 145 percent on a range of products from China, while Beijing has replied with 125 percent duties on imports from the United States.Trump acknowledged that the US levies were at a “very high” level and that it would “come down substantially”.On Wednesday, Treasury Secretary Scott Bessent told reporters Washington is “not yet” speaking with Beijing on tariffs, calling today’s prohibitively high levies from both countries not “sustainable.” Gold, which had hit a record high above $3,500 Tuesday on a rush to safety, retreated to around $3,300 an ounce, while the dollar clawed back some of its recent losses against the pound, euro and yen.”Looking at the dollar’s more muted reaction, you get the feeling that it is more of a reluctant view that Trump is slowly backing down on trade tariffs. It is actions that count,” said City Index and FOREX.com analyst Fawad Razaqzada.In Asia, Hong Kong stocks surged on the back of a rally in tech firms including Alibaba and Tencent, and Tokyo’s stock market also gained.Taipei jumped more than four percent, helped by a seven percent surge in chip titan TSMC.- Key figures at 2030 GMT -New York – Dow: UP 1.1 percent at 39,606.57 (close)New York – S&P 500: UP 1.7 percent at 5,375.86 (close)New York – Nasdaq Composite: UP 2.5 percent at 16,708.05 (close)London – FTSE 100: UP 0.9 percent at 8,403.18 (close) Paris – CAC 40: UP 2.1 percent at 7,482.36 (close)Frankfurt – DAX: UP 3.1 percent at 21,961.97 (close)Tokyo – Nikkei 225: UP 1.9 percent at 34,868.63 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 22,072.62 (close)Shanghai – Composite: DOWN 0.1 percent at 3,296.36 (close)Euro/dollar: DOWN at $1.1317 from $1.1421 on TuesdayPound/dollar: DOWN $1.3257 at $1.3332Dollar/yen: UP at 143.49 yen from 141.57 yen Euro/pound: DOWN at 85.34 pence from 85.67 penceBrent North Sea Crude: DOWN 2.0 percent at $66.12 per barrelWest Texas Intermediate: DOWN 2.2 percent at $62.27 per barrelburs-jmb/md

The world’s largest auto expo opened its doors Wednesday in Shanghai, showcasing the new electric world order even as mounting trade barriers risk dampening China’s global ambitions.With nearly 1,000 exhibitors present, foreign carmakers are raring to show they can keep pace with the ultra-competitive Chinese firms that dominate the sector’s electric frontier.Beijing’s historic backing of EV and hybrid development has seen the domestic market flourish, with firms on Wednesday taking the opportunity to demonstrate cutting edge technology and sophisticated design. “(Chinese brands) are really on the forefront of pushing the technology now, and have been for a few years,” said Stefan Rosen, the head of design for Lynk & Co, a joint venture between China’s Geely and Volvo. “I know that (foreign firms) are trying to catch up… but I would say still the industry is led through China,” he told AFP. Huge crowds gathered at domestic champion BYD’s booth as it unveiled five new Ocean series cars, as well as a luxury SUV under its sub-brand Yangwang, and a concept sports car under another, Denza. BYD has enjoyed a giddy few months of surging sales after annual revenue surged in 2024, eclipsing its rival, US titan Tesla, which is not present at the show.Others exhibiting range from state-owned behemoths, startups such as Nio and Li Auto, tech giants with skin in the game such as Huawei, and consumer electronics-turned-car company Xiaomi.Blaring press conferences touted advancements in fast charging, intelligent driving systems, and personalised luxury as influencers, journalists and business people wandered through the vast exhibition centre.- ‘In China for China’ -Vying to shore up sliding sales in a market they used to dominate, German companies on Wednesday pitched themselves as building cars “in China for China”.Volkswagen, the largest foreign group operating in the country, unveiled a series of new electric vehicles and a driver assistance system developed especially for the Chinese digital ecosystem. The group says it will launch more than 20 electric and hybrid models for the country by 2027. At the BMW booth, a foreign executive conducted a conversation in Mandarin with an AI assistant, before CEO Oliver Zipse rolled onstage in a futuristic white SUV from the upcoming “Neue Klasse” series.A separate version specifically tailored for China will be launched next year. “At BMW we will continue to advocate for… open markets,” Zipse said, adding that “global challenges require global cooperation” in an apparent reference to the current trade turmoil set in motion by the administration of US President Donald Trump.Ola Kallenius, CEO of Mercedes-Benz, told media that in 32 years of working in the auto industry, “I don’t think I’ve experienced a higher level of complexity”. He blamed “the mix between being in the middle of a transformation, and… a shifting geopolitical and economic and trade landscape”. – Tricky tariff terrain -Beijing and Washington are at an impasse after Trump’s tariff policy triggered a tit-for-tat escalation between the world’s two largest economies, leading to staggeringly high levies on both sides.Since last year, Chinese carmakers have also faced extra duties from the European Union. “The tariff is having an impact on our business, mostly on profitability,” said Xpeng’s co-president Brian Gu.”But, you know, we have a long-term commitment. We need to find a way to compete.”Nio’s president Qin Lihong told AFP that for now, the firm had not tariff-adjusted European retail prices, meaning it had “essentially given up the majority of the margins”.  Long-term planning, patience and letting go of “unrealistic expectations of significant short-term growth” was key, he added. For the market as a whole, exports to Russia and the Middle East have helped cushion the tariff impacts, consultancy AlixPartners said Tuesday. And several carmakers told AFP on Wednesday that North America was not a target for them. “We want to prioritise the most important markets, which we have already entered,” Xin Tianshu, CEO of Leapmotor International, said. However, there are other, internal speedbumps ahead. The cutthroat domestic market is likely to eventually defeat many of the country’s dozens of carmakers. More broadly, China’s post-pandemic recovery remains wobbly. Low domestic consumption is a persistent issue, while concerns have been raised about overcapacity.

Dozens of cutting-edge Chinese carmakers displayed their prowess at the world’s largest auto show in Shanghai on Wednesday — but not all will survive the country’s brutal domestic market, executives said.Beijing’s historic backing of EV and hybrid development has seen over a hundred Chinese brands emerge in a relatively short space of time, all jostling for a piece of the world’s largest auto market. That fray is credited with fostering speed and innovation, but the effect on individual companies can be harsh.  “It’s a very competitive field,” Xpeng’s co-president Brian Gu told AFP at the startup’s booth, where as well as cars, a humanoid robot and a concept flying car were on display. “Not every player here will ultimately survive because the criteria to succeed is much higher than before.”As well as mastering hardware, engineering and manufacturing at scale, companies now need to be pioneers in the fields of AI, software and predicting the future — “how to build a car for the next generation”, Gu said.Some startups have already gone bust, while brands including SAIC Motor, BYD and Geely are engaged in a brutal price war.”We’ve gone through a survival of the fittest phase,” Zhu Jiangming, chairman of Leapmotor, told media. “The preliminary round is now over,” he said. “In the next stage, competition will intensify even further, entering what you might call the finals.” Of the startups that entered the market around 10 years ago, Zhu said, Leapmotor, Xpeng, Nio and Li Auto were in the strongest position. But new competitors had since entered the fray, he added, such as consumer electronics giant-turned-carmaker Xiaomi, as well as international rivals. The market was “extremely intense”, Nio’s president Qin Lihong told AFP. Companies had to make sure they excelled in all areas — technology, marketing and long-term thinking. “I believe there’s no single silver bullet for any company to guarantee victory in this race,” he said.All three men, though, insisted their company had what it took to come out on top.”I would think that the industry will continue to consolidate,” said Gu. “The top five to seven players will have the lion’s share of the market, whereas now you have dozens of brands here. And in that process, the company that truly possesses the full stack capability will thrive.”  

Donald Trump’s tariff plans have increased the risks to public finances, the International Monetary Fund said Wednesday, warning countries to get their spending plans under control and prepare for “sharper” trade-offs.The US president’s on-again, off-again introduction of levies against top trading partners has sent market volatility soaring and unnerved investors, who are attempting to chart a path through the increased uncertainty.Over the past six months, “global economic prospects have significantly deteriorated, and risks to the economic output are elevated and tilted to the downside” Vitor Gaspar, the head of the IMF’s Fiscal Affairs department, told reporters on Wednesday at the launch of the Fund’s Fiscal Monitor report. The forecast for public finances was published as part of the Fund and the World Bank’s Spring Meetings of global financial leaders currently under way in Washington.Under its new projections, which incorporate some — but not all — of the recently announced tariffs, the IMF now expects global general government debt to rise to more than 95 percent of economic output this year, and to approach 100 percent of GDP by 2030.In the forecasts, the IMF expects public debt to rise by about the same amount as the combined increases seen in 2023 and 2024, Gaspar told AFP in an interview ahead of the report’s publication.”There is a pronounced trend in public debt around the world,” he said.- ‘Heightened uncertainty’ -The IMF warned in its report that the “heightened uncertainty” about tariffs and economic policy, combined with rising bond yields in major economies, widening spreads in emerging markets, foreign aid cuts, and increased defense spending in Europe had all complicated the global debt outlook.”Fiscal policy now faces a sharper trade-off between reducing debt, building buffers against uncertainties and accommodating spending pressures, all amidst weaker growth prospects, higher financing costs, and heightened risks,” it added. While public spending levels may pose political challenges, the right policy can also “be a source of confidence and support in potentially very demanding macroeconomic circumstances,” Gaspar told AFP. “Communities may be severely affected by trade dislocations, and targeted and temporary support… could be a way forward,” he added. – Different paths -The IMF expects that more than a third of the world’s economies, who collectively account for 75 percent of global GDP, will see a rise in indebtedness this year. This includes many of the world’s largest economies, including the United States, China, Germany, Britain, and France. But these countries will face very different realities when it comes to handling that debt, Gaspar said in the interview.”Both China and the United States are continental economies,” he said. “They have a space that other economies don’t have.””The United States has an ample set of options, both on the revenue side and on the spending side, that it can deploy to control the deficit, stabilize the level of public debt and decrease the level of public debt, if it chooses to do so,” he added. “How it’s going to happen depends on… the choices made in the context of the US political system,” he said. For China, Gaspar noted that the authorities would “eventually” need to tackle its public debt, but should focus their attention at this moment in time on providing targeted support to transform the economy. “Fiscal support in China is welcome right now,” he said. “It is something that helps rebalancing China growth towards the domestic economy.””By doing so, it helps reduce the external imbalance.” 

Japanese auto giant Nissan on Wednesday announced the launch of two models aimed at picking up speed in its key market of China, where it has been outpaced by local rivals.At industry show Auto Shanghai, the group announced an investment of 10 billion yuan ($1.4 billion) into China, and said it would increase the number of new models it planned to launch by summer 2027 to 10, up from eight.The group’s China chief Stephen Ma told a press conference the aim was to match Chinese competitors, and that Nissan had been slow in approaching the market with new models. “We were not at the same speed, mainly because the Chinese brands were exceptional with speed,” Ma said.With fewer than 800,000 vehicles sold, in the 2023 financial year Nissan’s sales fell by 24.1 percent in China, the world’s leading car market. The company is struggling on several fronts, with fragile accounts and an aborted merger attempt with Honda exacerbated by the tariff turmoil affecting its biggest market, the United States.The group’s renewed China offensive was on display at its booth on Wednesday, in the hulking form of the Frontier Pro truck. It is Nissan’s first plug-in hybrid vehicle, and designed to appeal to Chinese consumers’ tastes.The N7 electric sedan, meanwhile, produced with local partner Dongfeng, promises a range of up to 635 kilometres (395 miles), customisable lighting and advanced driving assistance systems.Nissan also plans to export the two models outside of China “in less than a year”, Ma said, without specifying where — other than not to the United States. 

Equities rallied with Wall Street on Wednesday after Donald Trump said he had “no intention” of firing the head of the Federal Reserve and that eye-watering tariffs on China would be slashed drastically.Global markets, already upended by a trade war, were battered further at the start of the week by fears the US president was looking to remove central bank boss Jerome Powell for not cutting interest rates, calling him a “major loser” and “Mr. Too Late”.Observers warned such a move would have dealt a blow to the Fed’s independence and sparked a crisis of confidence in the world’s top economy, sparking a sell-off of US assets and another global crisis.However, Trump looked to temper those fears on Tuesday, saying: “I have no intention of firing him.””I would like to see him be a little more active in terms of his idea to lower interest rates — it’s a perfect time to lower interest rates,” he said.”If he doesn’t, is it the end? No.”The remarks gave a much-needed shot of relief to investors, helped by the president’s comments later indicating a more conciliatory approach to the trade war with China.Washington has imposed tariffs of 145 percent on a range of products from China, while Beijing has replied with 125 percent duties on imports from the United States.But Trump acknowledged on Tuesday that the US levies were at a “very high” level, and that this will “come down substantially”.”They will not be anywhere near that number,” he said, but added that “it won’t be zero”. That came after Treasury Secretary Scott Bessent told a closed-door event in Washington that he expected a de-escalation soon in the United States’ tariff standoff with China, which he said was not sustainable.White House Press Secretary Karoline Leavitt said later, “the president and the administration are setting the stage for a deal”, noting that “the ball is moving in the right direction”.Chinese President Xi Jinping also warned on Wednesday that tariff and trade wars “undermine the legitimate rights and interests of all countries, hurt the multilateral trading system, and impact the world economic order”.However, foreign ministry spokesman Guo Jiakun said later in the day that “the door for talks is wide open”.Investors welcomed the developments from Washington with open arms.Hong Kong surged on the back of a rally in tech firms including Alibaba and Tencent.Tokyo, Sydney, Seoul, Wellington, Singapore, Mumbai, Manila, Jakarta and Bangkok also advanced, while London, Paris and Frankfurt were also sharply higher.Taipei jumped more than four percent, helped by a seven percent surge in chip titan TSMC.However, Shanghai edged down.Gold, which had hit a record high above $3,500 Tuesday on a rush to safety, retreated to sit around $3,300, while the dollar clawed back some of its recent losses against the pound, euro and yen.Oil prices were also boosted more than one percent, having taken a recent hit by fears over the economic fallout from the tariffs standoff.The gains followed rallies of more than two percent for all three main indexes in New York.”While it is still early days, the mood in the market is evidently shifting and what was a strong ‘sell America’ vibe flowing through markets… has in part reversed,” said Chris Weston at Pepperstone.He added that Trump’s comments on Powell “should go some way to allaying fears of a major policy mistake”. Investors were unmoved by the International Monetary Fund’s decision to slash its global economic growth outlook by 0.5 percentage points to 2.8 percent this year, citing the effect of Trump’s tariff policies.In company news, Japan’s Sumitomo Rubber, which recently bought the Dunlop brand, rose 3.7 percent after it said it would hike tyre prices for US and Canadian cars and small trucks by up to 25 percent.- Key figures at 0810 GMT -Tokyo – Nikkei 225: UP 1.9 percent at 34,868.63 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 22,072.62 (close)Shanghai – Composite: DOWN 0.1 percent at 3,296.36 (close)London – FTSE 100: UP 1.4 percent at 8,445.62 Euro/dollar: DOWN at $1.1385 from $1.1420 on TuesdayPound/dollar: DOWN $1.3305 at $1.3330Dollar/yen: UP at 141.85 yen from 141.56 yen Euro/pound: DOWN at 85.56 pence from 85.67 penceWest Texas Intermediate: UP 1.5 percent at $64.63 per barrelBrent North Sea Crude: UP 1.4 percent at $68.41 per barrelNew York – Dow: UP 2.7 percent at 39,186.98 (close)

Asian stocks rallied with Wall Street on Wednesday after Donald Trump said he had “no intention” of firing the head of the Federal Reserve and that eye-watering tariffs on China would be slashed drastically.Global markets, already upended by a trade war, were battered further at the start of the week by fears the US president was looking to remove central bank boss Jerome Powell for not cutting interest rates, calling him a “major loser” and “Mr. Too Late”.Observers warned such a move would have dealt a blow to the Fed’s independence and sparked a crisis of confidence in the world’s top economy, sparking a sell-off of US assets and another global crisis.However, Trump looked to temper those fears Tuesday, saying: “I have no intention of firing him.”He added: “I would like to see him be a little more active in terms of his idea to lower interest rates — it’s a perfect time to lower interest rates.”If he doesn’t, is it the end? No.”The remarks gave a much-needed shot of relief to investors, helped by the president’s comments later indicating a more conciliatory approach to the trade war with China.Washington has imposed tariffs of 145 percent on a range of products from China, while Beijing has replied with 125 percent duties on imports from the United States.But the president on Tuesday acknowledged that the US levies were at a “very high” level, and that this will “come down substantially”.”They will not be anywhere near that number,” he said, but added that “it won’t be zero”. That came after Treasury Secretary Scott Bessent told a closed-door event in Washington that he expected a de-escalation soon in the United States’ tariff standoff with China, which he said was not sustainable.White House Press Secretary Karoline Leavitt later said “the president and the administration are setting the stage for a deal”, noting that “the ball is moving in the right direction”.Investors welcomed the comments with open arms, pushing Tokyo, Hong Kong, Sydney, Seoul and Wellington more than one percent higher, while Taipei rallied more than three percent.Singapore and Jakarta also rose though Shanghai and Manila edged down.Gold, which had hit a record high above $3,500 Tuesday on a rush to safety, retreated to sit around $3,370, while the dollar clawed back some of its recent losses against the pound, euro and yen.The gains followed rallies of more than two percent for all three main indexes in New York.”While it is still early days, the mood in the market is evidently shifting and what was a strong ‘sell America’ vibe flowing through markets… has in part reversed,” said Chris Weston at Pepperstone.He added that the president’s comments on Powell “should go some way to allaying fears of a major policy mistake”. Investors were unmoved by the International Monetary Fund’s decision to slash its global economic growth outlook by 0.5 percentage points to 2.8 percent this year, citing the effect of Trump’s tariff policies.- Key figures at 0230 GMT -Tokyo – Nikkei 225: UP 1.7 percent at 34,808.80 (break)Hong Kong – Hang Seng Index: UP 1.7 percent at 21,928.58Shanghai – Composite: DOWN 0.1 percent at 3,295.44Euro/dollar: DOWN at $1.1392 from $1.1420 on TuesdayPound/dollar: DOWN $1.3305 at $1.3330Dollar/yen: UP at 142.10 yen from 141.56 yen Euro/pound: DOWN at 85.61 pence from 85.67 penceWest Texas Intermediate: UP 1.0 percent at $64.28 per barrelBrent North Sea Crude: UP 0.9 percent at $68.04 per barrelNew York – Dow: UP 2.7 percent at 39,186.98 (close)London – FTSE 100: UP 0.6 percent at 8,328.60 (close)