Data impacting Asia April 14 - 18 and highlights from the weekend press. China releases loans data on Sunday evening.

Much of the news is focused on tariffs. China trade data due Monday morning.

Overview

Holiday shortened week for many with Khmer New Year, Songkran in Thailand and the Easter weekend starting Friday

After markets closed the US exempted smartphones and other consumer electronics from ‘reciprocal’ tariffs. according to a notice posted late on Friday night by Customs and Border Patrol. Also on the list were routers, chipmaking equipment and certain computers and laptops. It is another sign of Trump blinking. A White House official said on Saturday that the US would launch a separate probe that could lead to a tariff on chips “soon”. Asked later on Saturday about the possibility of putting tariffs on chip imports, Trump said: “I’ll give you that answer on Monday. We’ll be very specific.”

China said it was evaluating the impact of the exclusions. In a statement on Sunday, the Ministry of Commerce called the move a "small step by U.S. to correct its wrong practice of unilateral 'reciprocal tariffs’." "The bell on a tiger's neck can only be untied by the person who tied it," the ministry said, urging the U.S. to make a major step in correcting what it called its wrongdoing and cancelling the tariffs completely.

In a notice to shippers on Friday, the U.S. Customs and Border Protection agency published a list of tariff codes excluded from the import taxes, with retroactive effect from 12:01 a.m. EDT (0401 GMT) on April 5.

It featured 20 product categories, including the broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays.

In hope of avoiding punishing US tariffs, Vietnam is prepared to crack down on Chinese goods being shipped to the US via its territory, and is to tighten controls on sensitive exports to China, said a person familiar with the matter and a government document seen by Reuters showed. The offer came as senior US officials, including US President Donald Trump’s trade advisor Peter Navarro, raised concerns about Chinese goods being sent to the US with “Made in Vietnam” labels that draw lower duties. Vietnam has for weeks been offering sweeteners that it hoped would persuade Trump’s administration to take a benign view of its huge trade surplus with the US. Instead, it was hit with a 46 percent tariff as part of Trump’s “liberation day” salvo. While the tariff has been suspended for 90 days, the two countries agreed to start talks after Vietnamese Deputy Prime Minister Ho Duc Phoc met with US Secretary of the Treasury Scott Bessent on Wednesday. Export-reliant Vietnam is hoping to get the duties reduced to a range of 22 percent to 28 percent, if not lower, three people with knowledge of the matter said.

The Kremlin said on Sunday contacts with U.S. President Donald Trump's team were moving ahead very well but that it was too early to expect instant results due to the level of damage done to relations under Trump's predecessor Joe Biden. Trump, who says he wants to be remembered as a peacemaker, has repeatedly said he wants to end the "bloodbath" of the three-year war in Ukraine - which his administration now casts as a proxy conflict between the United States and Russia, echoing Moscow's stance. As Witkoff held talks with Putin on Friday in the former Russian imperial capital St. Petersburg about the search for a peace deal for Ukraine, Trump told Russia to "get moving”. Putin was shown on state TV greeting Witkoff, who held his hand to his heart in greeting, at the start of the talks and state news agencies later said they lasted over four hours.

Asked if a Putin-Trump meeting was getting nearer, the Kremlin's Peskov said the two powers were "walking along this path together very patiently" but that trying to restore relations took serious and painstaking work.

The Trump administration is drafting an executive order to enable the stockpiling of deep-sea metals to counter China's dominance in battery minerals and rare earth supply chains, the Financial Times reported on Saturday, citing people familiar with the matter. Under the plans, the stockpile would "create large quantities ready and available on U.S. territory to be used in the future", in case of a conflict with China that might constrain imports of metals and rare earths, the report added. Last week, China placed some rare earth elements under export restrictions as part of its response to President Donald Trump's tariff package, potentially cutting the U.S. off from minerals vital to everything from smartphones to electric car batteries. The stockpile is being considered as part of a broader push to fast-track deep-sea mining applications under U.S. law, and to create onshore processing capacity, the report added. China produces around 90% of the world's refined rare earths, a group of 17 elements used across the defense, electric vehicle, clean energy and electronics industries. The U.S. imports most of its rare earths, and most come from China. The White House and China's foreign ministry did not immediately respond to Reuters requests for comments.

Housekeeping

Monday morning I will be on RTHK’s Money Talk. With host Chloe Feng and Mark Michelson Chairman as Asia CEO Forum. If you want to ask a question or just listen to the show you can find it here

https://www.rthk.hk/radio/radio3/programme/money_talk

On Thursday afternoon I was on RTHK’s The Close, with host Nitin Dialis and Mark To Director of Asset Management at Wing Fung Financial Group talking about Trump’s tariffs If you want to listen to the show you can find the show here:

https://www.rthk.hk/radio/radio3/programme/the_close

Looking for insightful independent research, to try and make sense of the current environment or have specific questions then click on http://ERI-C.com it is a great platform where independent research vendors list their research and trading analysis. ERI-C is free to access, you can browse different independent research providers, most offer free trials; so worth a look; Recent highlights include

Sean Maher of Entext ‘AI led Structural Deflationary Shock - Incoming from 2026?’ ,

Gerard Minack of Minack Advisors ‘2025 could be the top for US outperformance’ and

James Burgas of Commodity Intelligence ’The New World Order for Commodities’

Mark Tinker recently posted the Latest thoughts from Market Thinker - challenging the narrative. It's not a cock-up, it IS a conspiracy. This is the great Reset. He gives an alternative way of looking at what Trump is doing. Rather that going through the legislators he is using tariffs as a way of taxing US multinationals who produce off-shore and then import into America. The question is whether the courts or congress will stand up and stop him abusing the system ….

DATA impacting Asia 14 - 16 April

New Zealand
Monday Composite PCI & Services PSI, Electronic Retail Card Spending, Visitor Arrivals
Tuesday Food Inflation, 1 year Bill Auction, 3 & 6 month Bill Auction, Global Dairy Trade Price Index.
Wednesday Balance of Trade, Exports, Imports
Thursday Inflation Rate
Friday No Data Due

Australia
Monday No Data Due
Tuesday RBA Meeting Minutes
Wednesday Leading Index
Thursday Employment Change, Full & Part Time Employment Change, Unemployment Rate, Participation Rate.
Friday No Data Due

Japan
Monday Capacity Utilisation, Industrial Production
Tuesday 2O Year JGB Auction
Wednesday Reuters Tankan Index, Machinery Orders
Thursday Balance of Trade, Exports, Imports, Foreign Bond & Stock Investment, BoJ Nakagawa Speaks, 52 Week Bill Auction
Friday Inflation Rate, Core Inflation Rate, Inflation Rate Ex Food & Energy, 3 month Bill Auction.

S Korea
Monday 10 year KTB Auction
Tuesday No Data Due
Wednesday Export & Import Prices
Thursday Interest Rate Decision
Friday No Data Due

Taiwan
Monday No Data Due
Tuesday Export Orders, Unemployment Rate
Wednesday Industrial Production, Retail Sales, M2 Money Supply
Thursday No Data Due
Friday No Data Due

China
After Market Friday
Vehicle Sales Oct YoY vs -1.7% Sept (F/cast is -2%
Out Sunday Evening
New Yuan Loans Mar CNY 3640B vs 1010B Feb (F/cast was 4000B)
M2 Money Supply Mar 7% vs 7% Feb (F/cast was 7%)
Outstanding Loan Growth Mar 7.4% YoY vs 7.3% Feb (F/cast was 7.4%)
Total Social Financing Mar CNY 5890B vs 2230B revised Feb (F/cast was 4810B)
Monday Balance of Trade, Exports, Imports,
Tuesday No Data due
Wednesday House Price Index, GDP Growth Rate, Industrial Production, Retail Sales, Fixed Asset Investment, Industrial Capacity Utilisation, Unemployment Rate
Thursday No Data Due
Friday FDI
Sunday Loan Prime Rate 1 yr & 5 yr.

Hong Kong
Monday No Data Due
Tuesday Unemployment Rate
Wednesday Inflation Rate
Thursday No Data Due
Friday Business Confidence

Macau No data scheduled this week.

Singapore
Monday GDP Growth Rate
Tuesday MAS 12 & 4 Week Bill Auction
Wednesday 1 year T Bill Auction
Thursday Non Oil Exports, Balance of Trade,
Friday No Data Due

Indonesia
Monday Foreign Exchange Reserves, Motorbike Sales, Car Sales
Tuesday Consumer Confidence, Tourist Arrivals
Wednesday Retail Sales
Thursday No Data Due
Friday No Data Due

Philippines
Monday No Data Due
Tuesday Consumer Confidence, Cash Remittances
Wednesday No Data Due
Thursday No Data due
Friday No Data Due

Malaysia
Monday No Data Due
Tuesday No Data Due
Wednesday No Data Due
Thursday No Data Due
Friday Balance of Trade, Exports, Imports, GDP Growth Rate

Thailand No data scheduled this week.
Monday Market closed for Songkran
Tuesday Market closed for Songkran
Wednesday Market closed for Songkran
Thursday No Data Due
Friday No Data Due

Cambodia No Data Due this week and market closed Monday to Wednesday for Cambodian New Year

Myanmar No data scheduled this week.

Vietnam No Data Due this week

India
Monday No Data Due
Tuesday WPI data (Food Index, Fuel, Inflation and Manufacturing), Inflation Rate, Balance of Trade, Exports, Imports
Wednesday M3 Money Supply, Passenger Vehicle Sales
Thursday No Data Due
Friday Foreign Exchange Reserves, Passenger Vehicle Sales

Eurozone
Monday No Data Due
Tuesday Industrial Production, ZEW Economic Sentiment Index
Wednesday Current Account, Core Inflation Rate, CPI Final, Inflation Rate
Thursday ECB Interest Rate Decision, Deposit Facility Rate, Marginal Lending Rate, ECB Press Conference
Friday No Data Due

Germany
Monday 12 year Bubill Auction
Tuesday Wholesale Prices, ZEW Economic Sentiment Index & Current Conditions, 5 year Bobl Auction
Wednesday 30 year Bund Auction
Thursday PPI
Friday No Data Due

France
Monday 12, 3 & 6 month BTF Auction
Tuesday Inflation Rate, IEA Oil Market Report
Wednesday Unemployment Rate
Thursday 3, 6 and 7 Year OAT Auction, 11 Year Index Linked OAT Auction, 14 Year OATi Auction, 28 Year Index Linked OAT Auction, 9 Year Index Linked OAT Auction,
Friday No Data Due

United Kingdom
Monday No Data due
Tuesday BRC Retail Sales, Unemployment Rate, Average Earnings (Incl & Ex Bonuses), Employment Change, Claimant Count Change, HMRC Payrolls Change, 10 year Treasury Gilt Auctions
Wednesday Inflation Rate, Core Inflation Rate, Retail Price Index, 3 year Treasury Gilt Auctions
Thursday No Data Due
Friday No Data Due

United States
Monday Consumer Inflation Expectations, 3 & 6 month Bill Auction, Fed’s Barkin Speaks

Tuesday Feds Waller, Harker and Bostic speak ,Export & Import Prices, NY Empire Sate Manufacturing Index, Redbook, 52 Week Bill Auction, Feds Barkin Speaks, NOPA Crush Report, API Crude Oil Stock Change, Fed’s Cook speak.

Wednesday MBA Data (30 yr Mortgage Rate, Applications, Market Index, Refinance Index, Purchase Index), Retail Sales, Retail Sales Control Group, Retail Sales Ex Auto, Retail Sales Ex Gas & Auto’s, Industrial Production, Capacity Utilisation, Manufacturing Production, NAHB Housing Market Index, Retail Inventories Ex Auto, EIA Oil Stocks Change, 17 week Bill Auction, Feds Hammack speaks, 20 Year Bond Auction, Feds Powell speaks, Net Long Term TIC Flows, Foreign Bond Investment, Feds Schmid speaks.

Thursday Building Permits, Housing Starts, Initial & Continuing Initial Claims, Jobless Claims 4 week average,

Philadelphia Fed Manufacturing Index, Philly Fed (Business Conditions, CAPEX Index, Employment, New Orders, Prices Paid, EIA Natural Gas Stocks Change, 4 & 8 week Bills Auction, Fed’s Barr speaks, 15 & 30 year Mortgage Rate, 5 Year TIPS Auction, Baker Hughes Rig Count, Feds Balance Sheet, Fed’s Daly speaks

Friday Feds Daly speaks

Much of the weekend press is focused on tariffs and US policy; it is a major concern for most and whilst we can all have our views it seems that it will be up to the US courts in the first instance to challenge Trump whereas it should really be Congress. It will also be interesting to see if the public support for Trump continues.

FT Weekend

Trump chaos prompts top Canadian and Danish pension funds to cool on US. Saying that some of the world’s biggest pension funds are halting or reassessing their private market investments into the US, saying they will not resume until the country stabilises after Donald Trump’s erratic policy blitz.

Highlights how Trump’s power grab and use of executive orders is upsetting investors because he is not going through the legislative system, which is worrying people. Investors like the legislative system because it takes time for policy to change and it gives interested parties time to influence the changes. The fact Trump’s actions have caused the US bond and equity markets to both see weakness is worrying. It has raised questions over the reliability of the USD.

Trump tar­iffs poised to drive US infla­tion to 4%, Fed’s warns

▸ Hint at action if needed ▸ Offi­cial sees gloom ahead ▸ Growth to fal­ter ▸ Bond sell-off per­sists

European trav­el­lers shun Amer­ica as policy tur­moil takes toll on tour­ism. Another fall out from Trump’s onslaught on norms

Amer­ic­ans’ reli­ance on Chinese goods to be tested

Trump levies on Beijing likely to raise prices of everything from Bar­bies to microwaves

US con­sumers warned prices will increase swiftly

Retail­ers to pass on higher duties for some products from middle of this month

China’s export­ers con­fid­ent of sur­vival and vow to defy the White House ‘paper tigers’. Stoic response in ‘trinket town’ echoes Beijing’s insist­ence that nation can pre­vail against tar­iff blitz

Xi fires senior gen­eral in latest army purge. Ana­lysts say removal of num­ber-two officer shows pres­id­ent’s determ­in­a­tion.

Gen­eral He Weidong, the junior of two vice-chairs of the six-mem­ber Cent­ral Mil­it­ary Com­mis­sion, which is led by Xi, was removed from his post in recent weeks, accord­ing to five people famil­iar with the mat­ter. As well as his role as the PLA’s second-ranked officer, He is third in com­mand of the Chinese mil­it­ary and a mem­ber of the Com­mun­ist party’s polit­buro. His removal is the latest in a long line of officers purged from office by Xi for alleged cor­rup­tion.

Rus­sian state steps up post-inva­sion asset grab. Rus­sian bil­lion­aire Dmitry Kamen­shchik last year was approached by people close to the gov­ern­ment and secur­ity ser­vices with an offer they hoped he could not refuse. But when Kamen­shchik balked at gift­ing the state 25 per cent in Moscow’s second-largest air­port, a per­son close to him recalled, he was met with the full force of the Rus­sian legal sys­tem. Tar­geted busi­nesses range from Rus­sia’s largest mag­nesium pro­du­cer to its biggest car dealer. Recently, the state has pro­ceeded with con­fis­cat­ing assets of top ware­house owner Raven Rus­sia and major grain exporter Rodnye Polya. The cases illus­trate the open sea­son on Rus­sia’s eco­nomy, which is being reshaped at a speed not seen since the years after the col­lapse of the Soviet Union.

The Big Read The global dash to diver­sify trade. Offi­cials from Asia to Europe to South Amer­ica are seek­ing new agree­ments to main­tain the free flow of goods. But the US and China, locked in an escal­at­ing tar­iff war, cast long shad­ows.

Musk’s Doge fired self-drive car safety experts at agency that reg­u­lates Tesla. Redund­an­cies espe­cially affected work­ers over­see­ing tech crit­ical to the suc­cess of the bil­lion­aire’s busi­ness. Of roughly 30 National High­way Traffic Safety Admin­is­tra­tion work­ers dis­missed in Feb­ru­ary as part of Musk’s cam­paign to shrink the fed­eral work­force, many were in the “office of vehicle auto­ma­tion safety”, people famil­iar with the situ­ation told the Fin­an­cial Times.

Asia’s emer­ging nations squeezed by Trump tar­iffs and China retali­ation. Taiwan, Thai­l­and and Viet­nam stocks deep in the red this year des­pite boost of levies reprieve

US ris­kier debt funds see his­toric out­flows. Investors fled US funds that hold ris­kier bonds and loans at a his­toric pace over the past week as fears that Pres­id­ent Don­ald Trump’s tar­iffs will deal a heavy blow to the eco­nomy rico­cheted across asset mar­kets. Investors yanked $9.6bn from US high-yield bond funds and $6.5bn from lever­aged loan funds in the week to Wed­nes­day, accord­ing to data pro­vider LSEG Lip­per. Both fig­ures rep­res­ent record out­flows, accord­ing to JPMor­gan data.

The Economist Weekly

Asia reels—will China pounce? Xi Jinping may try to woo the victims of Donald Trump’s tariffs

America’s chaos is a chance for China to wield influence in the region

A sticky situation Japan faces a reckoning over rice. A crisis over its staple reveals cracks in the country’s food system

Democracy rising South Korea’s democracy has passed one big test But it faces several more

Banyan Where new talks between Donald Trump and Kim Jong Un might go. A crisis is more likely than a genuine breakthrough

Reweaving the Silk Road. To secure exports to Europe, China reconfigures its rail links. A new line will bypass its best friend, Russia

A load of cobblers. China’s shoemakers seem more sanguine than its politicians A trade war will cause a lot of damage, but many have weathered storms before

Soldiers of misfortune. Why are Chinese soldiers fighting in Ukraine? They have been showing up on both sides of the battlefield throughout the war

A new Red Scare. Donald Trump wants to deport foreign students merely for what they say. He says his power over immigration overrides the First Amendment

Duty calls Trump’s tariff blitz faces strong legal challenges. The president has drawn fire from some conservative legal scholars

Grumbling, not governing. With tariffs paused, Republicans dodge a fight with Trump. Many are reluctant to challenge the president absent deep economic pain

Burn the tapes DOGE is coming for American officials’ magnetic tape. But more modern methods of data storage are not necessarily better

Lexington The unbearable lightness of being Donald Trump His trade war will test his trademark indifference to charges of incompetence and sowing chaos

Advantage, defence Ukraine thinks it can hold off Russia as long as it needs to Russia may have Chinese volunteers, but Ukraine has drones

Humans in the loop There is a vast hidden workforce behind AI Will they become redundant as the technology develops?

The Telegram The dangers of Donald Trump’s instinct for dealmaking Trade wars are alarming, but so are might-makes-right deals

Once bitten, twice shy Despite the rally, Apple still faces a trade-war nightmare The rest of corporate America has to live with uncertainty too

Counting costs Tariffs will send costs soaring. Which firms will raise prices? Brand, customer profile and the availability of alternatives all play a part

On the edge America’s financial system came close to the brink. Chaotic markets threatened to trigger a full-blown crisis

The T-day landing Can China fight America alone? The world’s two biggest economies begin an almighty trade clash

Trump’s U-turn The tariff madness of King Donald, explained As his policy turns on a dime, pity those tasked with justifying his actions

Courting chaos How to charm Donald Trump. Over the next 90 days, countries must work out what America’s president wants

Pit for tat China has a weapon that could hurt America: rare-earth exports. It has only just begun to use it

Free exchange Despite the pause, America’s tariffs are the worst ever trade shock Reed Smoot, eat your heart out

Cyber in space Could data centres ever be built in orbit? A startup called Starcloud has plans to do just that

Market opening indications and data

New Zealand
Market likely to open lower
Data Due after the open
Composite PCI Mar vs 50.7 Feb (F/cast was 50.5)
Services PSI Mar vs 49.1 Feb (F/cast was 49.5)
Electronic Retail Card Spending Mar MoM vs 0.3% Feb (F/cast was 0.2%)
Electronic Retail Card Spending Mar YoY vs -4.2% Feb (F/cast was 0.1%)
Visitor Arrivals Feb YoY vs 13.4% Jan (F/cast was 14%)

Australia - No Data Due
ASX200 market to open higher as Trump pulls back on some tariffs

Japan
Market to open higher although the strength in the Yen likely to limit the upside for exporters.
Yen closed 143.51 in US having touched 142.3 intra day
Data Due Lunchtime
Capacity Utilisation Feb MoM vs 4.5% Jan (F/cast is -0.6%)
Industrial Production Final Feb MoM vs -1.1% Jan (F/cast is 2.5%)
Industrial Production Final Feb YoY vs 2.2% Jan (F/cast is 0.3%)

S Korea
Kospi to open higher after Trump reverses the tariffs on some items.
On Friday trade volume was moderate at 361 million shares worth 7.61 trillion won ($5.25 billion). Winners, however, beat losers 536 to 340. Foreigners net sold while retail and institutions net bought.
Data Due
10 year KTB Auction

Taiwan - No Data Due
Market to open higher after US closed higher and Trump reverses policy on some tariffs.

China
Markets were indicating to open lower after the Golden Dragon Index closed up 111pts 1.73% at 6,516

But then China released New Loans data Sunday evening which was mainly in line. But expect caution ahead of the trade data 30 minutes after the market opens.
Data Due
Balance of Trade Mar vs $170.52B Feb (F/cast is $84B)
Exports Mar YoY vs 2.3% Feb (F/cast is 5.2%)
Imports Mar YoY vs -8.4% Feb (F/cast is -1%)
Data out Sunday
New Yuan Loans Mar CNY 3640B vs 1010B Feb (F/cast was 4000B)
M2 Money Supply Mar 7% vs 7% Feb (F/cast was 7%)
Outstanding Loan Growth Mar 7.4% YoY vs 7.3% Feb (F/cast was 7.4%)
Total Social Financing Mar CNY 5890B vs 2230B revised Feb (F/cast was 4810B)
Data Out Friday
Vehicle Sales Mar YoY vs 34.4% Feb (F/cast is 12%

Hong Kong - No Data Due

HSI to open higher ADR’s closed up 277 pts 1.31% at 21,191 but expect some caution after the China loans data and ahead of the Chinese trade data.

IPO Zenergy Battery Tech(03677.HK), which will be listed Monday, opened up 0.5% to $8.31 on gray market. Peaking/ bottoming at $9/7.94, it closed at $8.28, up 0.1% or $0.01 from the listing price, on volume of 423,000 shares and turnover of $3.56 million, according to PhillipMart data. Excluding handling fee, the book gain was $3 per board lot size of 300 shares. On the Futu platform it opened flat at $8.27 on gray market, on volume of 287,700 shares and turnover of $2.47 million. Excluding handling fee, the book gain was $18 per board lot size of 300 shares.
Turnover on Friday $276.426bn vs $395.534bn Thursday down from $412.385bn Wednesday, it was $433.157bn Tuesday and $620.898 bn Monday

Macau - No Data Due

Singapore - Data Due
GDP Growth Rate

Malaysia - No Data Due

Thailand - Data Due Market closed for Songkran

Myanmar - No Data Due

Indonesia - Data Due
Foreign Exchange Reserves, Motorbike Sales, Car Sales

Philippines - No Data Due
Cambodia - Market Closed No Data Due
Vietnam - No Date Due
India - No Data due

Europe
Eurozone No Data Due
Germany 12 year Bubill Auction
France 12, 3 & 6 month BTF Auction
United Kingdom No data due

United States
Data due Consumer Inflation Expectations, 3 & 6 month Bill Auction, Fed’s Barkin Speaks

HEADLINES & NEWS

JAPAN

The Osaka Expo opened its doors Sunday to the first of what organizers hope will be 28.2 million visitors over the next six months. A day after Prime Minister Shigeru Ishiba expressed hopes that the expo can bring together a world that he called “divided,” the general public got its first look at the massive Grand Ring, designed to symbolize unity, and the roughly 160 pavilions by participating nations, regions and organizations. A marching band welcomed the first people through the gates alongside a group that included Osaka Gov. Hirofumi Yoshimura and Dimitri S. Kerkentzes, the secretary-general of the Bureau International des Expositions, which organizes World Expos.

Closer defense-industrial cooperation between Japan and NATO could prove critical in Asia’s tense security environment, Tokyo's first dedicated ambassador to the political and military alliance has said, as this will not only boost interoperability with partner forces but also result in “more robust” defense supply chains. “If we can achieve greater coordination with European industries — along with those in the United States and Canada — then this will be of great benefit for the Self-Defense Forces,” Ambassador Osamu Izawa said in a recent exclusive interview with The Japan Times. Tokyo and the 32-member alliance are aiming to take ties to the next level through “more practical” cooperation.

The policy chiefs of both the ruling Liberal Democratic Party (LDP) and the main opposition Constitutional Democratic Party of Japan (CDP) expressed caution over a possible consumption tax cut during a television program on Sunday. While calls for a consumption tax cut as a measure to deal with rising prices are growing in both the ruling and opposition camps, the LDP and CDP policy chiefs stressed the need to consider a tax cut along with ways to finance it. "The consumption tax is an important revenue source that largely covers social security costs," said the LDP's Itsunori Onodera. "We need to discuss reform of both the tax and social security systems in the Diet."

Japan must strengthen the yen, such as by helping boost the country's industrial competitiveness, as the currency's weakness has pushed up households' living costs, the ruling party's policy chief said on Sunday. Ahead of trade talks with the U.S., Itsunori Onodera, chair of the Liberal Democratic Party's Policy Research Council, also said Japan should not intentionally sell its U.S. Treasury holdings, the largest outside the United States, in retaliation against tariffs levied by President Donald Trump. By blaming the weak yen for accelerating inflation, Onodera could be signalling that Japanese policymakers consider the yen's downtrend, rather than its recent rebound, as the bigger problem for the economy. "The weak yen has been among factors pushing up prices," Onodera said. "To strengthen the yen, it's important to strengthen Japanese companies."

The bilateral trade negotiations this week will likely include the thorny topic of currency policy, with some officials privately bracing for Washington to call on Tokyo to prop up the yen. The slow pace at which the Bank of Japan is raising interest rates from ultra-low levels could also come under fire, sources have told Reuters.

Tokyo's top trade negotiator Ryosei Akazawa, the minister for economic revitalisation, will meet Treasury Secretary Scott Bessent on Thursday, two people familiar with the negotiations told Reuters. Selling in Treasuries - the linchpin safe asset in global markets - was the heaviest for decades. A massive wave of selling that hit U.S. government debt in Asia on Wednesday stoked market speculation China was among those unloading its holdings. The Treasury sell-off was among the factors that led Trump to announce a 90-day pause on his "reciprocal" tariff plan, with Bessent likely playing a key role.

Japan's core inflation probably accelerated in March from the previous month as rice prices rose, a Reuters poll showed, a sign of persistent cost pressure that is likely to encourage the central bank to proceed with monetary policy normalisation. Still, the Bank of Japan is facing the difficult task of timing its next interest rate hike as U.S. President Donald Trump's tariffs and a trade war with China raise fears of a global recession. The core consumer price index (CPI), which includes oil products but excludes fresh food prices, was expected to have climbed 3.2% in March from a year earlier, a poll of 17 economists showed on Friday. That figure compared with 3% in February. "While government subsidies for electricity bills would curb energy price growth, the year-on-year increase in prices is expected to widen from the previous month due to continued price rises in a wide range of items, including rice," said Shunpei Fujita, economist at Mitsubishi UFJ Research and Consulting. A separate index that strips away the effects of both fresh food and fuel costs and is closely watched by the Bank of Japan as a broader price trend indicator, was expected to pick up to 2.8% in March from 2.6% in February, SMBC analysts said. Stubbornly high food prices and rising wages have kept consumer inflation above the BOJ's 2% target for nearly three years, underpinning market expectations the central bank will continue increasing interest rates from the current 0.5%. Although Trump this week announced a 90-day postponement on plans for sweeping tariffs on goods imported into the U.S, he stepped up duties on China, while maintaining 25% tariffs on aluminium, steel and autos and a blanket 10% levy on imported goods. That has complicated the BOJ's rate-hike path by threatening to derail a moderate recovery in Japan's export-driven economy. The internal affairs ministry will release March CPI data at 8:30 a.m. on April 18 (2330 GMT on April 17).

Warren Buffett's Berkshire Hathaway has priced a 6-tranche yen denominated bond totalling 90 billion yen ($626.70 million), according to a term sheet reviewed by Reuters. The sale comes as debt deals are being shelved because of the fallout from U.S President Donald Trump's tariffs, which investors fear could spark a global recession. It is the smallest yen-denominated bond sale by Buffett's conglomerate. Tenors ranged from 3 years to 30 years. Japanese companies including Asahi and Suntory have shelved the sale of yen-denominated bonds because of market turmoil, Reuters has reported. Berkshire Hathaway has also invested in Japanese trading houses, helping shine a spotlight on a market that has been overlooked by many overseas investors.

Dai-ichi Life Holdings Inc will take a 15.1 percent stake in an Australian life insurer, aiming to expand its overseas reach to offset the shrinking domestic market constrained by Japan's declining birthrate and aging population. The Japanese life insurer said in a statement that it will acquire a stake in Challenger Ltd worth 80 billion yen from Tokyo-based MS&AD Insurance Group Holdings Inc. Challenger is a major provider of personal pension products in Australia. MS&AD has been gradually increasing its position in the firm since 2017. Recently, Japanese life insurance giants have been trying to improve profitability by capitalizing on economic growth in other countries, as the country's population is expected to continue decreasing. In December, Nippon Life Insurance Co announced that it would make Resolution Life Group Holdings Ltd, which operates life insurance businesses in the United States and other countries, a wholly owned subsidiary.

PM Ishiba is scheduled to hold talks with the head of Japan's biggest labor union umbrella group on Monday, as he has pledged to take measures to achieve wage hikes at smaller companies and in regional areas. The planned face-to-face meeting, announced by the government on Friday, would be the first between a prime minister and a leader of the Japanese Trade Union Confederation in 16 years, with the last held under then Prime Minister Taro Aso, a year after the global financial crisis. Ishiba and Tomoko Yoshino, president of the group better known as Rengo, are set to meet at the prime minister's office amid growing fears that the higher tariffs imposed by U.S. President Donald Trump will stifle the country's export-oriented economy.

SOUTH KOREA

Disgraced former President Yoon Suk Yeol is set to stand trial Monday on charges of orchestrating an insurrection through his declaration of martial law on Dec. 3, 2024, marking his first formal court appearance since being removed from office by the Constitutional Court early this month. The first hearing, at which Yoon is required to appear, is to take place at the Seoul Central District Court and has drawn criticism for shielding the ousted leader from public view — a departure from the manner in which former presidents were tried in criminal court.

Major political parties in South Korea are quickly gearing up for presidential primaries to nominate their respective candidates in early May, with candidacy registrations starting Monday. The conservative People Power Party — with which disgraced former President Yoon Suk Yeol was affiliated — will register candidates on Monday and Tuesday. They will then be narrowed down to four by April 22, with the party's presidential primary to be held on May 3. The liberal Democratic Party of Korea will also start receiving candidacy registrations on Monday, in hopes of an ultimate presidential nomination in early May. Those vying for the nomination of the ruling party will likely include former Labor Minister Kim Moon-soo and former Daegu Mayor Hong Joon-pyo — both of whom recently resigned after the Constitutional Court upheld Yoon's impeachment — as well as North Gyeongsang Province Gov. Lee Cheol-woo, Incheon Mayor Yoo Jeong-bok and Reps. Ahn Cheol-soo, Na Kyung Won and Yoon Sang-hyun. A day before candidacy registration, Ahn, one of only a few conservative lawmakers who defied the party and voted for a motion to impeach Yoon in December, announced presidential pledges including the adoption of a parliamentary system to curb presidential power. Yet to be seen among the conservative bloc is whether acting President and Prime Minister Han Duck-soo will express intention to run for president and participate in the party's nominating process. Following Saturday's decision by Seoul Mayor Oh Se-hoon — considered a popular center-right figure — not to run for president in the June election, Han is receiving renewed requests from inside the conservative party to run for president.

Volatility in South Korea's foreign exchange market surged to its highest level last week since the country extended trading hours for the won–US dollar market, data showed Sunday. The weekly fluctuation in the won–dollar exchange rate reached 67.6 won during the second week of April, which marked the highest level since July 2024, when Seoul expanded FX trading hours from a 3:30 p.m. close to 9 a.m.–2 a.m. the following day. When compared to records prior to the extended trading hours, last week's fluctuation was the largest since the second week of November 2022, when the weekly fluctuation reached 101 won. The Korean won was quoted at 1,421 against the US dollar in after-hours trading Friday, up 40 won from a week earlier. It marked the strongest level since Dec. 5. The local currency dipped well below the 1,450-won level and has fluctuated near the mark since December amid heightened uncertainty stemming from US tariff threats and a domestic political crisis triggered by then President Yoon Suk Yeol's shocking imposition of martial law.

The recent market volatility was driven by US President Donald Trump's decision to pause the implementation of "reciprocal" tariffs for 90 days while applying a baseline 10 percent tariff on imports from South Korea and other countries. But Washington raised tariffs on Chinese goods to 125 percent following Beijing's retaliatory measures, fueling concerns over an escalating global trade war and its impact on South Korea's export-driven economy and the global economy. The on-hold decision was announced shortly after reciprocal tariffs went into effect, with dozens of countries striving to negotiate deals over new levies. Last week, the Trump administration unveiled 25 percent tariffs on South Korea, 24 percent on Japan and 20 percent on the European Union, among others.

Shinhan Financial Group Chair Jin Ok-dong has completed a three-day visit to Kazakhstan and Uzbekistan to tap deeper into the Central Asian markets, the banking conglomerate said Sunday. Starting Wednesday, the Shinhan chairperson held meetings with senior officials from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the Central Bank of Uzbekistan to discuss opportunities for collaboration and financial sector development. With Central Asia emerging as a strategic market, Jin’s visit focused on assessing local operations and promoting financial cooperation.

US President Donald Trump announced Tuesday that his administration will soon impose tariffs on imported pharmaceuticals, which had previously been exempt from major "reciprocal" tariff measures, raising alarm across Korea’s pharmaceuticals and biotech industries. According to multiple foreign news outlets, Trump made the statement during a dinner hosted by the National Republican Congressional Committee in Washington. There, he suggested that pharmaceuticals companies would likely "relocate operations" to the US, given the size and importance of the American market. The US is Korea’s largest export destination for pharmaceutical products, making the industry particularly sensitive to such policy changes. Data from the Korea Customs Service shows that Korean pharmaceutical exports to the US reached $1.51 billion last year, a 50 percent increase from $1 billion the year before. The US accounted for 18 percent of Korea’s total pharmaceutical exports during this period. Industry experts believe any new pharmaceutical tariffs are likely to be phased in gradually rather than implemented abruptly.

The US has expressed a willingness to handle the tariff negotiations with South Korea and Japan as smoothly as possible, Seoul's Trade Minister Cheong In-kyo said Friday, describing the US' openness as a key outcome of his visit to Washington. "We held various discussions aimed at ensuring smooth trade relations with the Trump administration," Cheong told reporters at Incheon International Airport upon returning from his two-day visit to Washington. Cheong's trip marked the first of its kind by a senior South Korean trade official since the Donald Trump administration announced country-by-country reciprocal tariffs, including 25 percent duties for South Korea, that took effect this week.

Krafton is looking to strengthen its partnership with Nvidia, as the Korean game-maker continues to secure a lead in the artificial intelligence and gaming sectors while exploring potential collaboration with the US chip designer in robotics. According to Krafton, its CEO Kim Chang-han visited the Nvidia headquarters in Santa Clara, California, on Thursday to meet with Nvidia CEO Jensen Huang and discuss ways to bolster their existing partnership, which was first unveiled when Krafton announced the development of co-playable character technology in collaboration with Nvidia at the CES 2025 tech trade show in Las Vegas in January. Krafton said the two leaders exchanged wide-ranging views on the future direction of technological cooperation, focusing on driving innovation in developing games through agentic AI and exploring the potential to expand into robotics, such as humanoids powered by embodied AI.

LS Electric, a Korean producer of power solutions, announced Friday that it has secured a 36 billion won ($20.7 million) energy storage project in Japan, reinforcing its position in the country’s clean energy market. As part of the project, LS Electric will build a 90-megawatt-hour energy storage facility in Miyagi prefecture in northeastern Japan. The company is part of a consortium that includes local construction firms. Scheduled for completion in April 2027, the facility will store electricity generated from local power plants and supply it to the regional grid operated by Tohoku Electric Power, the sole power distributor in the region. According to LS Electric, this is the largest energy storage project undertaken by a Korean company in Japan.

LS Eco Energy, a Vietnam-based cable manufacturer under Korea’s LS Cable & System, announced Friday that it will supply electric cables for a $150 million wind farm project in the Philippines. The company’s Vietnamese subsidiary, LS-VINA, will supply medium- and low-voltage cables for the Kalayaan 2 wind farm, a 100-megawatt project located in Laguna province, about 100 kilometers southeast of Manila. Scheduled for completion in 2026, the wind farm is expected to provide clean energy to up to 85,000 households, the company said.

TAIWAN

Taiwan and the US would hold additional talks on tariffs after representatives of the two sides held their first meeting on Friday, the Office of Trade Negotiations said. The two sides exchanged views on “reciprocal” tariffs imposed by US President Donald Trump and other issues, such as non-tariff trade barriers and export controls, the office said. It did not disclose other details about the negotiations, citing a mutual tacit understanding. President William Lai on Friday said Taiwan was among the first group of countries to enter into tariff negotiations with the US following the tariff announcement that sent ripples through global financial markets. Taiwan has no intention of launching retaliatory measures, Lai said, adding that the government has sought negotiations with the Trump administration with a goal of “zero tariffs,” modeled after the US-Mexico-Canada Agreement. Speaking at a Rotary International conference in Taipei yesterday, Lai said Taiwan has officially begun negotiations with the United States on reciprocal tariffs, describing the process as "smooth."

The “high” tariff scenario was a 20 percent to 30 percent duty, which would have had a high risk of impacting manufacturing sectors such as machinery and electronics, and the exports of agricultural and fishery products, which would have needed a support plan of about NT$57.6 billion, he said. The “reciprocal” tariffs for countries the US has a trade deficit with were scheduled to take effect on Wednesday last week, but Trump announced a 90-day pause on the new measures, while retaining the 10 percent duties imposed last Saturday on nearly all countries and territories.

The 32 percent tariff for Taiwan is higher than the 24 percent and 25 percent duty set for Japan and South Korea respectively. The nation is expected to see a drop of at least 21 percent in the value of goods shipped to the US, as US buyers are to see higher prices for products from Taiwan. To avoid US clients placing orders with competitors in other countries, Taiwanese businesses would have to consider moving manufacturing to locations abroad to stay competitive in the global market, Cho said. The local manufacturing sector is likely to see a 5 percent drop in production value, and 125,000 jobs could be at stake, he said. The agricultural sector would also be hit by the sweeping 32 percent tariff, because of the added cost of exporting products to the US, estimated at NT$320 million for orchids, NT$460 million for tilapia and NT$110 million for mahi-mahi, or dolphin fish, Cho said. Cho hoped to obtain lawmakers’ support for the administration’s NT$88 billion proposal, which aimed to mitigate the tariff’s impact over a four-year period. The support plans would be funded through a special budget and requires legislative approval.

Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not previously been reported — highlight the challenges for LVMH as it attempts to build its production footprint in the US to avoid Trump’s threatened tariffs on European-made goods. “The ramp-up was harder than we thought it would be, that’s true,” Louis Vuitton industrial director Ludovic Pauchard said in an interview on Friday. The Texas site, situated on a 101-hectare ranch, has struggled due to a lack of skilled leather workers able to produce at the brand’s quality standards, the three former workers said. “It took them years to start making the simple pockets of the Neverfull handbag,” one source familiar with operations at the plant said, referring to the classic Louis Vuitton shoulder tote bag. Errors made during the cutting, preparation and assembly process led to the waste of as many as 40 percent of the leather hides, said one former employee with detailed knowledge of the factory’s performance. Industry-wide, typical waste rates for leather goods are generally 20 percent, a senior industry source said.

Vanguard International Semiconductor Corp, a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now with the tariffs in play, all those forecast should be put behind,” Vanguard chairman Fang Leuh told reporters in Taipei yesterday. “Before the tariff war ends, it will be very difficult to make a forecast about the global economy and the global semiconductor industry. The short-term impact will be negative.” Despite the new US tariffs, Vanguard International Semiconductor Corp said the direct impact on its operations would be minimal, as only about 1 percent of its total chip production is shipped to the US.

Taiwan’s insurance companies are more vulnerable to market volatility triggered by US tariffs due to their smaller capital buffers, while the nation’s banks remain well-capitalized and able to absorb potential economic shocks, two major international ratings agencies said. Key equity markets across the Asia-Pacific region have fallen by more than 10 percent on average since US President Donald Trump announced sweeping tariff hikes on April 2, Moody’s Ratings said. The sweeping import tariff regime is credit negative for regional insurers, it said, citing the immediate impact of heightened capital market volatility, as well as medium-term risks such as weaker insurance demand and higher claims costs resulting from slower economic growth and inflationary pressures. Among the markets, insurers in Taiwan are the most exposed to market volatility, while Chinese insurers could face heightened negative spread risks, as Beijing’s central bank responds with easing policies, Moody’s Ratings said. Taiwanese insurers are particularly vulnerable to falling equity prices due to their relatively lower capital buffers, the agency said.

CHINA

Chinese President Xi Jinping vowed to deepen his country's strategic partnership with Indonesia in a call with President Prabowo Subianto on Sunday, China's official Xinhua News Agency reported. Xi told Prabowo the bilateral partnership had strategic significance and impact globally, as the two exchanged congratulations over the 75th anniversary of diplomatic ties, Xinhua said. Beijing is trying to persuade other nations to hew to a common line against U.S. import tariffs announced by President Donald Trump. Xi will visit Indonesia's fellow Southeast Asian nations Vietnam, Malaysia and Cambodia from Monday, aiming to consolidate ties with some of China's closest neighbours as trade tension escalates with the United States.

China's National Financial Regulatory Administration (NFRA) has issued guiding opinions on promoting the high-quality development of financial asset management companies as well as enhancing the quality and efficiency of supervision. The opinions emphasized strengthening and optimizing the acquisition and disposal of non-performing assets to help mitigate risks in small and medium-sized financial institutions and the real estate sector. Meanwhile, under the premise of controllable risks and commercial sustainability, efforts should be made to actively increase the acquisition, management, and disposal of non-performing assets from commercial banks and non-bank financial institutions, serving the reform and risk mitigation of local small and medium-sized financial institutions. The opinions also stressed the prohibition of financial asset management companies from increasing local government implicit debts in any form and called for bolstered regulation of related-party transactions to prevent the transfer of benefits and regulatory arbitrage.

Tesla Inc’s Web site in China has removed the ‘order now’ option for Model S and Model X electric vehicles (EV), which are both imported, just days after China retaliated against US President Donald Trump’s tariffs by raising levies of its own. Tesla’s China Web site was offering an “order now” option for the two models as of the end of last month, an archived screen shot by Wayback Machine showed, but that had been removed as of yesterday. Existing inventory, such as a white Model S for 759,900 yuan (US$103,890), is still available. Representatives for Tesla in China did not immediately respond to a request for comment. Trump is imposing a 125 percent charge designed to counter the US’ trade deficit with China and punish Beijing for retaliating against US import taxes. The number, published in a White House memo on Thursday, comes in addition to a 20 percent levy put in place earlier this year over China’s role in fentanyl trafficking, taking total tariffs on China to 145 percent. China has hit back at the US, raising levies on all US goods to 84 percent. Beijing has also said it would reduce the number of US films allowed to enter the country. Tesla’s Shanghai factory only makes Model 3 and Model Y cars and most of them are either sold in China or exported to other parts of Asia. Anyone wanting to buy a Model S or Model X in China needs to get them imported. However, the Model S and Model X only make a fraction of Tesla’s sales in China, at just less than 2,000 vehicles last year compared to about 661,820 for both the Model 3 and Model Y, data from the China Automotive Technology and Research Center showed. Even though that would mean a huge hit to Tesla’s sales in the world’s biggest automobile market, Elon Musk’s EV maker has not been going well in China regardless.

China has put civilian government officials in Beijing on “wartime footing” and ordered a diplomatic charm offensive aimed at encouraging other countries to push back against U.S. President Donald Trump’s tariffs, according to four people familiar with the matter. Communist Party propaganda officials have played a leading role in framing China’s response, one of the people said, with government spokespeople posting defiant clips on social media featuring former leader Mao Zedong saying “we will never yield.” As part of the “wartime” posture, the details of which are being reported by Reuters for the first time, bureaucrats in the foreign affairs and commerce ministries have been ordered to cancel vacation plans and keep mobile phones switched on around the clock, two of the people said. Departments covering the U.S. have also been beefed up, including with officials who worked on China’s response to Trump’s first term, they said.

The combative all-of-government approach after Trump’s “Liberation Day" salvo marked a hard turn for Beijing, which had tried to avoid a spiralling trade war. For months, Chinese diplomats had tried to establish a high-level channel of communication with Trump’s administration to defend what China’s cabinet has described in state media campaigns as a “win-win” trading relationship. Optimistic Chinese observers even held out hope for a grand bargain with Trump over trade, TikTok – and perhaps even Taiwan. This account of how China shifted from seeking a deal to punching back with retaliatory tariffs and threatening all-out defiance is based on interviews with more than a dozen people, including U.S. and Chinese government officials, as well as other diplomats and scholars briefed on bilateral exchanges. Four of them also described how Beijing's diplomats have been engaging other governments targeted by Trump tariffs, including sending letters seeking cooperation to several countries. Longstanding U.S. allies in Europe, Japan and South Korea have also been contacted, two people said. Most of the people spoke on condition of anonymity to describe confidential government deliberations. China's ministry of foreign affairs did not return a request for comment. A spokesperson for China’s embassy in Washington said in response to Reuters' questions that Beijing did not want to fight trade wars “but is not scared of them. “If the U.S. puts its own interests over the public good of the international community and sacrifices all countries’ legitimate interests for its own hegemony, it will for sure meet stronger opposition from the international community,” the official said.

China is no longer welcome in Britain's steel sector after the government had to pass emergency legislation on Saturday to ensure control of Chinese-owned British Steel, business minister Jonathan Reynolds said on Sunday. Reynolds said the refusal of China's Jingye Group (600768.SS) to accept a roughly 500 million pound ($654 million) government aid package last week to stop irrevocable damage to blast furnaces left the government with no alternative to intervening directly. Against a backdrop of global overcapacity in much of the steel industry and challenges from U.S. tariffs, Jingye wanted to import steel from China for further processing in Britain, Reynolds said in an interview with Sky News.

But the closure of blast furnaces at the British Steel plant in Scunthorpe - which need to be constantly fuelled and are losing 700,000 pounds a day - would have left Britain as the only major economy unable to produce so-called virgin steel from iron ore, coke and other inputs. Previous British governments had been "naive" to allow Chinese companies to be involved in the steel sector, Reynolds said. Large industrial companies such as Jingye Group had direct links to the Chinese Communist Party and China's government would understand why Jingye's proposal was unacceptable to Britain, he added. "You've got to be clear about what is the sort of sector where we can promote, cooperate; and ones, frankly, where we can't. I wouldn't personally bring a Chinese company into our steel sector. I think steel is a very sensitive area," he said. Jingye bought British Steel from the government in 2020 after the company became insolvent. Since coming to office in 2024, the Labour government has stepped up engagement with China after tensions under previous Conservative governments over human rights, Hong Kong and latterly restrictions on investment over security concerns. Reynolds said he viewed other sectors such as car making, life sciences and agricultural products as less sensitive areas for Chinese investment.

China's capital hunkered down on Saturday as rare typhoon-like gales swept northern regions, forcing the closure of historic sites and disrupting travel while bringing late snowfalls and hailstone showers in some areas. Windows shook and trees crashed onto footpaths and cars, rocked by gusts of wind driven by a cold vortex from neighbouring Mongolia that sent temperatures plunging. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable The winds, which started on Friday, are set to continue over the weekend, packing gusts of up to 150 kph (90 mph), the official Xinhua news agency said. They brought late snowfalls in Inner Mongolia and hailstones in southern China. Beijing issued its second-highest gale alert this weekend, for the first time in a decade, warning 22 million residents to avoid non-essential travel as winds could potentially break April records dating from 1951. After earlier warnings, some residents said they were very nervous but still managed to get around.

White House officials confirmed this morning (April 11, Hong Kong time) that an extra 145% tariff will be imposed on imported Chinese goods. Following an SCMP report on Thursday (10th) about Chinese exporters abandoning shipments en route to the U.S. and handing containers over to shipping companies, Willy Lin, Chairman of Hong Kong Shippers' Council, warned that such behavior wreaks severe consequences, while he has not heard of local exporters engaging in similar actions. Lin urged exporters not to abandon cargo mid-transit to evade the White House’s steep tariffs, calling it "irrational" behavior that would not only incur massive costs but also damage the reputation of both the companies involved and the nation. He described such actions as highly irrational and irresponsible, noting that abandoning cargo at sea would leave exporters with a total loss - losing both the goods and any insurance compensation due to unfulfilled contract obligations - while potentially facing lawsuits from importers or prospective clients. He highlighted that this not only severely damages corporate reputations, deterring overseas buyers and slashing orders, but also tarnishes China’s trade image, ultimately resulting in a lose-lose situation.

The Shanghai Municipal People's Government organized a press conference to explain relevant information on “Certain Measures of Shanghai Municipality to Promote the Development and Growth of Specialized and New Small and Medium-Sized Enterprises”. Pu Yapeng, Deputy Director of the Shanghai Municipal Commission of Economy and Informatization, said that the measures include 20 specific measures in six areas. In terms of promoting high growth development, the measure proposes to support enterprises in “upgrading from small and micro size to a size above designated scale, and even list on the stock market”, with the goal of doubling the number of specialized and new SMEs in Shanghai to about 20,000 by the end of the Fifteenth Five-Year Plan. In terms of lowering financing costs, RMB400 billion of “specialized and new loans” will be set up. Of which, the total size of credit loans will exceed RMB200 billion, and enterprises will be provided with interest subsidies of up to 30%. In addition, in order to encourage and support the specialized and new private enterprises to actively cope with the fluctuations and challenges in the international market, Shanghai introduced relevant support policies, including the establishment of a coordination mechanism for service enterprises to go global, the enhancement of support for the internationalization of professional services and the support for the specialized and new private enterprises to make good use of the exhibition resources, etc..

HONG KONG

National Security

Hong Kong's last remaining major opposition party took a key step towards disbanding itself on Sunday after a special meeting approved arrangements to do so in the face of pressure from China, amid a national security crackdown. Five senior members of the Democratic Party had earlier told Reuters that Chinese officials or middlemen had warned it in recent months to disband or face serious consequences, including possible arrests. The party, founded three years before Hong Kong's return to Chinese rule from Britain in 1997, has been the Asian financial hub's flagship opposition, uniting democratic forces to push Beijing on democratic reforms, and to uphold freedoms. Party head Lo Kin-hei told reporters that 90 percent of 110 members had voted at Sunday's meeting for a three-person committee to start making arrangements for disbandment, including resolving legal and accounting matters.

Britain's foreign minister David Lammy said he was seeking answers from Hong Kong and Chinese authorities on Sunday after an opposition member of parliament, Wera Hobhouse, was denied entry to the Chinese territory and former British colony. "It is deeply concerning to hear that an MP on a personal trip has been refused entry to Hong Kong," Lammy said in a statement. "We will urgently raise this with the authorities in Hong Kong and Beijing to demand an explanation.” Hobhouse, a member of the opposition Liberal Democrat party, said on social media that she was the first British member of parliament to be refused entry to Hong Kong since Beijing regained control of the territory in 1997. "Authorities gave me no explanation for this cruel and upsetting blow," she said. Speaking to Britain's Sunday Times newspaper, Hobhouse said she flew to Hong Kong on Thursday to visit her newborn grandson and her son, who works in the territory. Hobhouse has previously criticised China's ruling Communist Party for restricting civil liberties in Hong Kong, and over human rights abuses in the Chinese regions of Xinjiang and Tibet and its approach to Taiwan and the South China Sea. Hong Kong's Security Bureau and immigration authorities and China's embassy in London had no immediate comment on why Hobhouse was not allowed entry. Hobhouse is the third British lawmaker to have been denied entry to a foreign country in recent weeks. Israel blocked two members of the governing Labour Party who attempted to visit the West Bank on a fact-finding trip on the grounds they intended to provoke anti-Israel activities, the Israeli embassy in Britain said.

An Australian judge became the latest foreigner to resign from Hong Kong's highest court before the end of his term on Friday as a security crackdown fans international criticism of a perceived erosion of the rule of law in the financial hub. Robert French, a former Chief Justice of Australia's High Court, said he respected Hong Kong and the "integrity and independence" of the remaining foreign judges but that the "role of the non permanent justices on the Court of Final Appeal has become increasingly anachronistic and arguably cosmetic.” The government confirmed the resignation in a statement, saying it was grateful to French for his valuable contributions and his "support for the rule of law in Hong Kong.” Last year, another non-permanent judge, Britain's Jonathan Sumption, quit the court shortly after a landmark verdict in which 14 prominent democratic activists were convicted for subversion, part of a national security crackdown on dissent. Sumption said Hong Kong's rule of law had been "profoundly compromised" and the city was "slowly becoming a totalitarian state.” The number of foreign judges on Hong Kong's Court of Final Appeal (CFA) has fallen from around 13 to five in recent years, with some raising concerns at the imposition of a sweeping national security law. In his statement to Reuters, French said he rejected any suggestion that foreign judges serving on the CFA were "somehow complicit in the application ... of national security laws or somehow confer on them a spurious legitimacy.” Hong Kong's chief justice is allowed to select one foreign judge - typically retired top jurists from Britain, Australia and Canada - to serve on the five-person Court of Final Appeal at any one time.

Buybacks
The Li Ka Shing Foundation increased its stake in CK ASSET (01113.HK) on April 7, 8 and 9, acquiring 1.15 million shares, 1.762 million shares and 450,000 shares, respectively, according to equity disclosures from the Hong Kong Stock Exchange. The average on-market prices were HKD29.8141, HKD29.3062 and HKD28.4556 per share, involving a total of approximately HKD98.73 million. Its shareholding elevated from 10.7% to 10.8% in aggregate.

HSI Short Selling Friday 19.1% vs 22.3% Thursday
Top shorts Sinopahrm (1099) 45%, Bud APAC (1876) 40%, Anta Sports (2020) 38%, Hang Seng Bank (11) 38%, CKI (1038) 34%, Wharf REIC (1997) 33%, Galaxy Ent (27) 32%, Xinyi Solar (968) 32%, Hansoh Pharma (3692) 32%, Trip com (9961) 32%, Bidu (9888) 32%, Chow Tai Fook (1929) 32%, HSBC (5) 31%, Baba (9988) 31%, OOIL (316) 30%, BYD (1211) 29%, China Overseas (688) 29%, Xinyi Glass (868) 29%, Sunny Optical (2382) 29%, MTRC (66) 29%, Haidilao (6862) 28%, CSPC Pharma (1093) 28%, Tingyi (322) 26%, Shenzhou (2313) 26%, Li Auto (2015) 25%.

WATCH

SHIMAO GROUP (00813.HK) Aggregated contracted sales for the first quarter ended 31 March 2025 amounted to approx. RMB7.07 billion, corresponding to an aggregated contracted sold area of 579,700 sq.m.. The average selling price for the period was RMB12,188 per sq.m..

JD-SW (09618.HK) (JD.US) has announced the launch of a support plan for the domestic sales of products originally intended for export, under which the company will make large-scale purchases of goods transitioning from export to domestic sales over the next year with a dedicated procurement fund of no less than RMB200 billion. This support plan is expected to help foreign trade enterprises quickly expand into the domestic market.

R&F PROPERTIES (02777.HK)'s total contracted sales for March 2025 amounted to approx. RMB1.19 billion, up 10.19% YoY, with 118,400 sq.m. of GFA, according to R&F PROPERTIES’ announcement. For 3M25, its cumulative total contracted sales were approx. RMB2.77 billion, up 2.21% YoY, with 254,800 sq.m. sold.

CKH HOLDINGS (00001.HK) 's proposed sale of its assets containing the Panama ports to a BlackRock-led consortium remains uncertain, as the Chinese government has approached a number of Chinese and Hong Kong billionaires, as well as SOEs, to see if they are interested in acquiring these ports, the Wall Street Journal quoted sources as saying. Earlier, a top auditor of Panama said that CKH HOLDINGS owed hundreds of millions of dollars in unpaid fees, and had failed to obtain the necessary permits for two key ports on the Panama Canal. Chinese state-owned shipping giants such as COSCO Container Lines Co., Ltd. and China Merchants Group (CMG) have begun informal talks with CKH HOLDINGS to potentially take over some of the ports if the BlackRock deal fails, the sources added. The Chinese government has also been striving to find an alternative buyer for BlackRock's deal with CKH HOLDINGS if it is pulled down, the report quoted another insiders as saying.

Several banks in Beijing, including Ping An Bank (000001.SZ) , CEB BANK (06818.HK) (601818.HK) and Bank of Nanjing (601009.SH) have recently lowered their fixed deposit interest rates, with some also raising the minimum deposit thresholds, according to China Securities Journal. The current three-year fixed deposit rate stands at 1.65%, reflecting a recent adjustment. Ping A Bank’s three-year fixed deposit rate saw a reduction of 40 bps in this round. Following the rate cut, the bank is experiencing an inversion where short-term deposit rates exceed long-term rates.

EUROPE & US RECAP for Thursday

DAX -0.92%, CAC -0.3%, FTSE 0.64%
European markets opened higher but sold down initially. FTSE then worked better through the day as data showed the economy grew by more than expected at 0.5% in February. Trading was choppy. DAX and CAC then traded sideways into the close. Euro strengthened vs the USD. Energy weak as the EIA cut its forecasts for demand and price of oil and BP weak after it warned in an update that it expected “weak” gas trading earnings in the first quarter along with higher net debt. Sentiment remains cautious with industrials, technology and energy weak while safe havens utilities and consumer durables firmer. Trade tensions remain elevated as China raised tariffs on US goods to 125% from 84%. Whilst the US raised tariffs on Chinese goods to 145%. America would be hit much harder than Europe in a trade war, said Valdis Dombrovskis, European Commissioner for Economy and Productivity on Friday. Dombrovskis said that the EU’s new GDP simulations did not account for a loss of investor and business confidence in the economy, which would exacerbate the slowdown. “Europe did not start this confrontation, and Europe does not want this confrontation,” he told officials and reporters. “Tariffs go against the political and economic logic of deep and longstanding transatlantic trading partnership, valued at 1.6 trillion euros ($1.8 trillion) in 2023. This is the largest trade and investment partnership in the world.” Meanwhile, the European Union said its trade representative was flying to Washington on Sunday to “try and sign deals.”

Novartis rallied after Swiss pharmaceutical giant pledged to invest $23 billion to build and expand 10 facilities in the U.S. over the next five years amid fresh threats of industry-wide tariffs from U.S. President Donald Trump.

DOW 1.56%, NDX 2.06%, S&P 1.81%, Russel 2K 1.57%
US markets opened around flat and traded sideways for the first coupled of hours before working better for the rest of the day. Ending what has been a tumultuous week. Friday afternoon the White House commented that President Donald Trump is “optimistic” China will seek a deal with the US. Having raised tariffs on US goods the Chinese said “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,”. The index closed higher for the week but remain sharply lower since April 2, when the White House announced so-called reciprocal tariffs on goods from other countries. Since then, the S&P 500 is down more than 5%.

The latest consumer sentiment numbers for April came in worse than expected. The expected inflation level also surged to its highest level since 1981, according to the University of Michigan survey on consumers. Boston Federal Reserve President Susan Collins said Friday that despite the tumult this week on Wall Street, markets are operating properly and the central bank stands ready to step in should that change. Apple rallied after a steep selloff earlier in the week as tariffs against China were ratcheted higher. Shipping stocks rallied.

Frontier Group plunged after it cut its Q1 outlook and pulled its full-year outlook, citing weaker-than-expected demand and economic uncertainty.

Stellantis weak after the company said its global shipments fell to 1.2 million vehicles in Q1 -9% YoY. The drop was primarily due to lower North American production, extended holiday downtime in January, product transitions and lower van sales in Europe.

JPMorgan rallied after revenue beat for Q1. It reported revenue of $46.01 billion for the quarter, while analysts surveyed by LSEG had penciled in $44.11 billion. CEO Jamie Dimon also cautioned that the U.S. economy is facing “considerable turbulence.”

Wells Fargo rallied after reporting a 16% YoY increase in Q1earnings on the back of stable income from investment banking and wealth management. Net interest income, fell 6% YoY to $11.50 billion. Non-interest income, which includes investment banking fees, brokerage commissions and advisory fees, rose 1% to $8.65 billion from last year’s $8.54 billion CEO Charlie Scharf highlighted the uncertainty in the economy brought on by the Trump administration’s actions to reorient global trade, calling for a timely resolution.

Morgan Stanley reported Q1 results that beat analyst expectations, it earned $2.60 per share on revenue of $17.74 billion. Analysts polled by LSEG expected a profit of $2.20 per share on revenue of $16.58 billion.

President Donald Trump’s 90-day pause on reciprocal tariffs isn’t going to help most retailers, particularly those in electronics, sporting goods and home furnishings, according to JPMorgan. Fed president Neel Kashkari said that he thinks we are “quite aways away” from the level of stress on the financial system that was seen during the Covid crisis in March 2020. “I’m not seeing big dislocations yet. I’m seeing some stresses, but markets seem to be adjusting okay so far,” Kashkari said. The central banker added that, if things worsen, the Fed could help smooth out the financial markets but would not try to keep Treasury yields at a certain level.

Banks JPMorgan Chase 4%, Citigroup 0.08% Wells Fargo -0.95%, Amex 1.72%
Ecommerce Meta -0.5%, Apple 4.06%, Amazon 2.01%, Netflix -0.31%, Disney -0.4%, Zoom Video 2.49%, Alphabet 2.59% and Microsoft 1.86%,
Tech NXP Semi 1.93%, Nvidia 3.12%, Micron -0.71%, AMD 5.3%, Skyworks 5.01%
Industrial/Discretionary Boeing 0.85%, Caterpillar 1.48%, Simon Property 0.35%, Kohl’s -1.75%, Nordstrom -0.21%, Gap -2.05%, United Airlines 4.54%, Carnival 0.23%, Wynn Resorts 1.23%
Energy Chevron 0.48%, Exxon Mobil 3.21%,
Consumer Staples Campbell Soup 1.4% General Mills 1.37%, JM Smucker 1.37%

DAILY DATA
USD under pressure, Bitcoin -0.5% at 84,524.28 (Sunday afternoon), VIX -7.76% at 37.56,
US T10 up 9 bpts to 4.486% and T2 up 12 bpts at 3.97%
OIL Brent 2.26%, WTI 2.38%
Gold 2.44%, Silver 4.67%, Copper 4.98% Platinum 1.61%, Palladium 0.79%.