1. Asia markets trade mixed as tariff concerns weigh
Asia-Pacific markets traded mixed Wednesday as investors assessed rising global bond yields and the latest developments on the trade front. Chinese markets were in focus following President Xi Jinping’s speech at a military parade to commemorate the 80th anniversary of the end of World War II. The event was graced by 26 world leaders, including Russian President Vladimir Putin and North Korea’s leader Kim Jong Un. Hong Kong’s Hang Seng index increased by 0.86%, while mainland China’s CSI 300 ticked up 0.24% in early trade. Japan’s Nikkei 225 lost 0.41%, while the broader Topix index dropped by 0.53%.
2. Dow closes down about 250 points to kick off September on tariff worries, rising bond yields
U.S. stocks closed lower on Tuesday, with investors weighing the latest developments on the trade front to kick off a seasonally poor month for equities. Rising yields also worried investors. The Dow Jones Industrial Average ended down 249.07 points, or 0.55% to close at 45,295.81. The S&P 500 dropped 0.69% to settle at 6,415.54, while the Nasdaq Composite slid 0.82% to close at 21,279.63. Investors took profits on bull market winners with the unofficial end of the summer season. Nvidia shares, for example, closed down about 2%, while other Big Tech names like Amazon and Apple shed around 1%. Investors were also eying a surge in bond yields to start September. The 10-year Treasury yield jumped to 4.27%, while the 30-year yield topped 4.97%.
3. Gold extends record run on strong safe-haven inflows
Gold prices extended their record run on Wednesday, as persistent market uncertainty and growing investor confidence that the U.S. Federal Reserve will cut interest rates this month lifted demand for the safe-haven metal. Spot gold was up 0.1% at $3,537 per ounce, as of 0145 GMT, after hitting an all-time of $3,546.99 earlier in the session. U.S. gold futures for December delivery gained 0.3% to $3,602.50. Heightening uncertainty and potential trade tensions in the market, U.S. President Donald Trump’s administration said it will ask the Supreme Court for an expedited ruling on tariffs that a U.S. appeals court found illegal last week.
4. Oil prices hold on to gains from U.S. sanctions
Oil prices were steady in Asian trading on Wednesday, holding on to sanctions-driven gains from the previous session as the market looked ahead to an OPEC+ meeting over the weekend. Brent crude ticked down 1 cent, or 0.01%, to $69.13 a barrel by 0032 GMT. U.S. West Texas Intermediate crude rose 4 cents or 0.06% to $65.63 a barrel. Oil had settled up more than 1% in the previous trading session after the U.S. imposed new sanctions on a network of shipping companies and vessels led by an Iraqi-Kittitian businessman for smuggling Iranian oil disguised as Iraqi oil. Also supporting prices, U.S. crude oil stockpiles were expected to have fallen last week, along with distillate and gasoline inventories. But soft economic data kept prices capped. U.S. manufacturing contracted for a sixth straight month as President Donald Trump’s tariffs hit business confidence and economic activity, weighing on the demand outlook for oil.
5. China’s Xi says the world faces ‘peace or war’ as Trump claims Beijing conspiring against U.S.
Chinese President Xi Jinping said Wednesday that the world was facing a choice of “peace or war” and “dialogues or confrontation” as the country hosts its largest military parade commemorating the 80th anniversary of the end of World War II. The speech came as U.S. President Donald Trump in a post on Truth Social urged the Chinese leader to recognize U.S. contributions to helping secure China’s freedom, while alleging that Beijing was conspiring against Washington. “Please give my warmest regards to Vladimir Putin, and Kim Jong Un, as you conspire against The United States of America,” Trump said. Russian President Vladimir Putin and North Korea’s Kim Jong Un are among the leaders from more than 20 countries attending the “Victory Day” military parade in Beijing at Tiananmen Square.
6. Trump says stocks “want the tariffs” — but it might be Treasuries instead
Labour Day in the U.S., which took place Monday, marks the unofficial end of summer — which means saying goodbye to the promise of all life could be and once again squeezing it to fit the four walls of the office. But there was someone eager to get back to work: U.S. President Donald Trump. (Not that he appeared to take a summer vacation at all) Trump said Tuesday he will request an “expedited ruling” from the Supreme Court to overturn a federal appeals court decision that most of his tariffs were illegal. The White House leader blamed that ruling for the fall in stocks Tuesday. “The stock market’s down because of that, because the stock market needs the tariffs,” he said. “They want the tariffs.” It’s a debatable assertion, given that stocks sank after Trump announced his “reciprocal” tariffs on that fateful April day, and surged — in one of the biggest rallies in history — following a pause in the implementation of levies.
7. Trump calls India-U.S. trade relationship ‘a totally one-sided disaster’ after Modi visits China
U.S. President Donald Trump on Monday doubled down on his criticism of India, calling trade ties with the country “a totally one-sided disaster!” after Indian Prime Minister Narendra Modi visited China to attend the Shanghai Cooperation Organization summit. Trump in a post on Truth Social also said that India had offered to cut its tariffs to zero, but it was “getting late,” and that the country should have done so “years ago,” without elaborating on when such an offer was made. This comes against the backdrop of the U.S. imposing 50% tariffs on the country, including secondary duties of 25% last month for purchasing Russian oil, which India has called “unfair, unjustified and unreasonable.” Trump reiterated that India was buying oil and arms from Russia, and accused New Delhi of selling the U.S. “massive amounts of goods,” but imposing high tariffs on U.S. exports to India.
8. Australia’s GDP expands more than expected; fastest pace since September 2023
Australia’s economy expanded more than expected in the second quarter of the year, marking the fastest pace of growth since September 2023. The country’s GDP grew 1.8% year over year, higher than the 1.6% expected by economists polled by Reuters, and higher than the 1.3% seen in the previous quarter. On a quarter-over-quarter basis, Australia’s GDP grew 0.6%, compared to 0.5% forecast. Data from the Australian Bureau of Statistics said that the growth was driven by domestic spending, including household and government consumption. The GDP reading comes after the Reserve Bank of Australia cut rates by 25 basis points to 3.6% during its most recent monetary policy in August.
9. Fired Democratic FTC commissioner reinstated by U.S. appeals court
A divided U.S. appeals court on Tuesday allowed Democratic U.S. Federal Trade Commissioner Rebecca Slaughter to resume her role at the agency, as Republican President Donald Trump tries to remove her from office. In a 2-1 decision, the District of Columbia Circuit Court of Appeals allowed a lower court decision in favour of Slaughter to go into effect, rejecting the Trump administration’s request to delay the ruling during its appeal. The court said that FTC commissioners may not be fired by a president without cause, saying that the law on this point has been clear for nearly a century. “The government is not likely to succeed on appeal because any ruling in its favour from this court would have to defy binding, on-point, and repeatedly preserved Supreme Court precedent,” two judges wrote in the majority opinion.
10. Bessent expects Supreme Court to uphold legality of Trump’s tariffs but eyes Plan B
U.S. Treasury Secretary Scott Bessent on Monday expressed confidence that the Supreme Court will uphold President Donald Trump’s use of a 1977 emergency powers law to impose sweeping tariffs on most trading partners, but said the administration has a backup plan if it does not. Bessent told Reuters he was preparing a legal brief for the U.S. solicitor general, who will oversee the government’s appeal to the Supreme Court, that will underscore the urgency of addressing decades of trade imbalances and stopping the flow of deadly fentanyl into the United States. A divided U.S. appeals court ruled on Friday that most of Donald Trump’s tariffs are illegal, undercutting the Republican president’s use of the levies as a key economic policy tool.
11. Google stock jumps 8% after search giant avoids worst-case penalties in antitrust case
Alphabet shares popped 8% in extended trading as investors celebrated what they viewed as minimal consequences from a historic defeat last year in the landmark antitrust case. Last year, Google was found to hold an illegal monopoly in its core market of internet search. U.S. District Judge Amit Mehta ruled against the most severe consequences that were proposed by the Department of Justice, including the forced sale of Google’s Chrome browser, which provides data that helps its advertising business deliver targeted ads. “Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment,” the decision stated. “Plaintiffs overreached in seeking forced divestiture of these key assets, which Google did not use to effect any illegal restraints.”
12. Apple shares rise after judge rules Google can continue preload deals in antitrust case
Apple shares rose more than 3% in extended trading Tuesday after a federal judge ruled that Alphabet may continue making payments to preload Google Search onto the iPhone. Although Apple wasn’t a party in the search monopoly trial, the judge was considering remedies that would bar Google from paying billions per year to Apple to be the default search engine on the Safari browser on iPhones, Macs and iPads. “Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,” Judge Amit Mehta wrote in his decision. The landmark case focused on Google’s dominance of the general search market, Google’s violations of the Sherman Act and the barriers to entry that the search engine erected.
13. Disney to pay $10 million to settle US claim of allowing unlawful collection of children’s data
Walt Disney will pay $10 million to settle U.S. Federal Trade Commission allegations that the company unlawfully allowed personal data to be collected from children who viewed kid-directed videos on YouTube without notifying parents or obtaining their consent, the FTC said on Tuesday. Axios was the first to report the settlement that was also confirmed by a Disney spokesperson. The FTC had alleged that Disney did not designate some YouTube videos as being made for children when they were added to the platform. The U.S. complaint said the mislabelling allowed Disney, through YouTube, to collect personal data from viewers of child-directed videos who were under age 13 and use that data for targeted advertising to children. The complaint had alleged that Disney violated the U.S. Children’s Online Privacy Protection Rule.
14. Tesla’s China-made EV sales drop on year in August, but jump on month
Tesla’s China-made electric vehicle sales dropped 4% in August from a year earlier, following an 8.4% fall in July, as the U.S. automaker refreshed its aging lineup in China’s hyper-competitive market. However, deliveries of Model 3 and Model Y vehicles made at Tesla’s Shanghai factory, including exports to Europe and other markets, surged 22.6% from July to 83,192 units last month, data from the China Passenger Car Association showed on Tuesday. Top Chinese rival BYD extended a sales decline in its home market, which accounts for nearly 80% of its global shipments, for a fourth straight month in August. Amid intense competition and a backlash against Elon Musk’s politics, Tesla’s sales across Europe plunged 40.2% in July on the year and trailed BYD, despite an overall EV sales rise in the continent. To fire up sales, Tesla lowered the price for Model 3 rear-wheel drive with a range of 830 kilometres (516 miles) by 3.7% in China on Monday, less than a month after its China launch.