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Asia-Pacific markets traded mixed Tuesday after China's manufacturing activity in May shrank at the fastest pace since September 2022, a private survey showed.
The Caixin/S&P Global manufacturing purchasing managers' index came in at 48.3, missing Reuters' median estimate of 50.6 and dropping sharply from 50.4 in April, as a sharper decline in new export orders highlighted the impact of prohibitive U.S. tariffs.
China on Monday pushed back against the U.S.' accusations that it had violated a temporary trade agreement. Instead, the Asian powerhouse blamed Washington for failing to uphold the deal — a sign that negotiations between the world's two largest economies are deteriorating.
Meanwhile, the European Union criticized U.S. President Donald Trump's intention to double steel tariffs to 50%, saying that such a move "undermines" its own negotiations with the U.S. An EU spokesperson said that the bloc was "prepared to impose countermeasures."
Hong Kong's Hang Seng Index led gains in the Asia-Pacific region, ending the day 1.53% higher at 23,512.49 while Mainland China's CSI 300 added 0.31% in choppy trade to close at 3,852.01.
Over in Japan, the Nikkei 225 benchmark pared gains to end the day flat at 37,446.81, while the broader Topix index fell 0.22% to 2,771.11.
Australia's S&P/ASX 200 benchmark advanced 0.63% to end the day at 8,466.70, after briefly hitting a near four-month high earlier in the session.
The country's seasonally adjusted current account balance for the first quarter of 2025 came in at a deficit of 14.7 billion Australian dollars ($9.53 billion), exceeding the AU$13.1 billion deficit forecast by economists polled by Reuters, but an improvement from the AU$16.3 billion deficit in the previous quarter's revised reading.
Meanwhile, India's benchmark Nifty 50 moved down 0.64%, while the BSE Sensex lost 0.88% as at 1.33 p.m. Indian Standard Time.
South Korean markets were closed for polling day.
— CNBC's Lisa Kailai Han and Sean Conlon contributed to this report.
Asia-Pacific steelmakers trade mixed ahead of Trump's fresh levies
Shares of Asia-Pacific steelmakers traded mixed Tuesday ahead of U.S. President Donald Trump's fresh levies.
Trump had said that tariffs on steel and aluminum exports to the U.S. would double to 50% starting Wednesday.
Shares of Chinese state-owned steel manufacturers Chongqing Iron & Steel, Angang Steel and Maanshan Iron & Steel were down 1.56%, 0.85% and 3.51% respectively as at 2.46 p.m. Singapore time.
Over in Japan, Kobe Steel shares were flat, while JFE Holdings bucked the trend by moving up 0.42%.
Meanwhile, India's JSW Steel had moved down 0.12%, while Tata Steel was last seen flat and Jindal Steel and Power had added 0.8%.
— Amala Balakrishner
Ola Electric shares fall 7% following $86 million block deals
Shares of Ola Electric Mobility tumbled as much as 7% on Tuesday, after a series of block deals worth 7.31 billion Indian rupees ($85.52 million) took place in the initial minutes of the trading day.
According to CNBC-TV18, 142.2 million shares — or 3.23% of the company's total outstanding equity — changed hands as part of the large transactions.
While buyers and sellers involved in the transaction could not be immediately ascertained, CNBC-TV18, citing sources familiar with the matter, noted that South Korean automaker Hyundai Motor Company was likely among the sellers in the deal.
— Amala Balakrishner
U.S. probe into violation of Iran sanctions pushes most Adani shares down
Shares of companies under the Adani Group fell in early trade Tuesday following reports from the Wall Street Journal that U.S. prosecutors were investigating whether the companies violated sanctions on Iran.
Adani Enterprises was trading 1.79% lower as at 10.00 a.m. Indian Standard Time, while Adani Power had fallen 1.03%. Shares in Adani Ports and Special Economic Zone and Adani Energy Solutions also fell and were last seen 1.19% and 0.64% lower.
Meanwhile, Adani Green shares bucked the trend and were up 0.84%.
The report highlighted that several Iranian liquefied petroleum gas, or LPG tankers which traveled between Adani's Mundra port and the Persian Gulf, had often displayed behaviors seen by ships seeking to evade sanctions.
The latest developments come as Gautam Adani - the man behind Adani Enterprises and Asia's second-richest man - is already fighting the U.S.' foreign bribery charges against him.
— Amala Balakrishner
Iron ore and other base metals fall after China's Caixin PMI slows to 32-month low
Iron ore fell Tuesday, as investors turned cautious on China's economic outlook after the Caixin PMI index for May shrank at its fastest pace since September 2022 and well below the 50 mark which separates an expansion from a contraction.
As at 11.41 a.m. Singapore time, iron ore futures fell 0.74% to $95.35 a ton.
Other base metals were also seen trading lower. Copper was down 0.72% on the London Metal Exchange to $9,547, while aluminum moved down 0.87%, and zinc lower by 0.76%.
— Amala Balakrishner
U.S. Commerce Secretary Lutnick 'very optimistic' of trade deal with India
U.S. Commerce Secretary Howard Lutnick is reportedly "very optimistic" about the U.S. striking a trade deal with India.
"You should expect a deal between the United States and India in the not-too-distant future," Lutnick said at the U.S.-India Strategic Partnership Forum's Leadership Summit in Washington, Bloomberg reported.
He also noted that trade negotiators have "found a place that really works for both countries."
Lutnick's comments come as India — which is poised to become the world's fourth-largest economy — has been vying for a trade deal with the U.S for some months.
The U.S. is India's largest trading partner, with bilateral trade hitting $129 billion in 2024. India had a $45.7 billion surplus.
— Amala Balakrishner
Several Asian currencies weaken as the dollar swings between gains and losses
Several Asia-Pacific currencies weakened Tuesday as the greenback swung between gains and losses on seesawing U.S. trade policies and investors turning defensive ahead of key developments slated later in the week.
The U.S. dollar index had increased by 0.27% to 98.85 as at 11.05 a.m. Singapore time, after hitting a six-week low earlier in the session.
The Japanese yen weakened 0.29% against the dollar to 143.10, after Bank of Japan Governor Kazuo Ueda indicated his intention to continue to raise interest rates if the central bank is convinced that economic and price growth will re-accelerate after a period of price stagnation.
Similarly, the offshore Chinese yuan was last seen 0.17% weaker than the greenback at 7.1959.
Meanwhile, the Singapore dollar depreciated by 0.15% against the greenback to 1.2869, while the Thai baht weakened by 0.28% to 32.59.
Conversely, the Malaysian ringgit appreciated by 0.21% against the dollar to 4.2440.
— Amala Balakrishner
Correction: This post has been updated to correctly reflect that several Asian currencies weakened.
China’s May factory activity unexpectedly shrinks, clocking its worst drop since 2022: Caixin
China's manufacturing activity in May shrank at its fastest pace since September 2022, a private survey showed on Tuesday, reinforcing calls for stronger stimulus to prop up growth in the tariff-hit economy.
The Caixin/S&P Global manufacturing purchasing managers' index came in at 48.3, missing Reuters' median estimate of 50.6. It fell below of 50, the mark that separates growth from contraction, for the first time since September last year.
Read the full story, here.
— Anniek Bao
Spot gold posts volatile trade after hitting four-week high in previous session
Spot gold swung between gains and losses on Tuesday amid fluctuations in the dollar and mounting global trade tensions.
As at 9.48 a.m. Singapore time, the bullion had fallen 0.16% to trade at $3,374.16 per ounce.
Spot gold
The precious metal — which is a traditional hedge against political and financial instability — had surged 2.8% on Monday, its biggest daily jump in four weeks, on the back of a weaker dollar.
Deteriorating relations between Washington and Beijing as well as the intensifying Russia-Ukraine war pushed investors to the safe haven asset.
— Amala Balakrishner
Australian stocks rise to near four-month high
Australian stocks rose Tuesday, trailing gains on Wall Street despite brewing global trade tensions.
The 200-stock benchmark S&P/ASX 200 rose 0.73% to 8,475.60 as at 11.21 a.m. Australian Eastern Standard Time, its highest level since Feb. 18.
S&P/ASX
Gains were seen in gold stocks after the precious metal hit a fresh high on the back of a weaker dollar.
Genesis Minerals was last seen up 6.09%, making it the top gainer in the sector. Strong moves were also seen in Evolution Mining and Perseus Mining which were up 3.95% and 3.99% respectively.
Shares in major miners also moved higher, with Rio Tinto moving up 0.15%, BHP Group adding 0.57% and Fortescue advancing 0.15%.
Energy stocks also rose on the back of higher oil prices as wildfires in Canada raised concerns over supply.
Shares in Woodside Energy and Santos, two of Australia's top oil and gas companies, increased 1.68% and 1%, respectively.
— Amala Balakrishner
Oil prices jump as rig count falls, OPEC+ keeps production increase steady
Logo of the Organization of the Petroleum Exporting Countries (OPEC)
Andrey Rudakov | Bloomberg | Getty Images
U.S. crude oil futures rose more than 3% in afternoon trading after OPEC+ increased production at a steady rate, easing investor fears that the group will boost output at a faster rate.
The West Texas Intermediate contract for July rose $2.06, or 3.39%, to $62.85 per barrel, while the global benchmark Brent contract for August was up $2.05, or 3.27%, to $64.83 per barrel. Prices are also finding support as the U.S. rig count fell every week in May and has hit its lowest level since 2021.
Eight producers in OPEC+, led by Saudi Arabia, agreed Saturday to increase production by 411,000 barrels per day in July, the third consecutive month the group will boost output at that rate.
"There were market concerns of a faster unwind process," Giovanni Staunovo, commodity analyst at UBS, told clients in a note Saturday. "For now, the oil market remains tight, indicating it can absorb additional barrels."
— Spencer Kimball
English (US) ·