Latest News
-
China and Taiwan prepare for Typhoon Bavi - possibly the strongest storm ever.
Typhoon Bavi, which blew near 124 mph and had winds of?200 kph on Thursday in the southeast of Taiwan, was causing havoc for China and Taiwan. Parts of China are still recovering from Typhoon Maysak. Authorities in Taiwan warned residents to prepare for the strongest typhoon since 2024. According to China's National Meteorological Centre, Bavi will pass north of Taiwan and skirt the eastern Fujian Province before landing in China on Saturday night. China is still in shock after Typhoon Maysak ravaged the southwest region of Guangxi. Local officials said that the flooding in Guangxi caused by the storm killed at least 39 people. They added that nine people remain missing in the entire region. Taiwan's Central Weather Administration Forecaster Jason Chang said that Bavi will be the biggest storm to hit Taiwan by size since 1987. He added that storms this size are "fairly uncommon in recent years". Scientists attribute climate change to the increasing frequency and intensity of destructive weather events in China, Japan, and Taiwan. This year, the emergence of El Nino is expected to increase temperatures and fuel more intense and frequent typhoons. According to AccuWeather's commercial weather forecast service, if Bavi keeps its predicted intensity, it will be the strongest typhoon (as hurricanes are called) in the Asia-Pacific since Super Typhoon Kong Rey, which hit the region in 2024. According to AccuWeather's international forecasting expert Jason Nicholls: "Some loss in wind intensity will be expected starting Thursday. However, Bavi is still a dangerous storm that will impact Taiwan and eastern China later on Friday or Monday." SEEKING SHADOWS FROM THE STORM Residents queued up for sandbags and farmers harvested rice as the weather remained good. Chen Ming-hui (60), captain of a 3 metric ton fishing vessel, expressed his hope that the typhoon will track further north, avoiding a direct strike. He recalled how storms in the past had sunk vessels and flooded a fishing town. Don't be fooled now by the calm and pleasant weather. Chen, looking at the ropes on his boat, said that a storm such as this one could be terrifying. The Japanese Meteorological Agency warned residents in the Okinawa Prefecture about 111 km (68 mi) southwest of Suao to be on high alert for violent winds, landslides and flooding on Friday and Saturday. In central Hubei Province, China, the remnants of Typhoon Maysak caused at least two inland typhoons and major flooding. According to Chinese state media, during the floods, more than 100 animals, including two zebras and four porcupines as well as dozens of parrots of various types, a few North American raccoons and eight pheasants, were able to escape from Guigang Zoo. Global Times reported that three lions died at the zoo in floodwaters caused by Maysak. Wang Liyuan was quoted by the zoo operator as saying that a sika deer had been rescued from drowning in floodwaters. Brown bears and wolves were also rescued, but they were in poor shape after almost drowning. BRACING for?IMPACT Japan Airlines announced that it cancelled 48 domestic flights for Friday due to the typhoon. This affected an estimated 7,610 people. ANA announced that it would cancel 34 domestic flights on Friday, affecting approximately 1,800 people. We should pay attention to Bavi, as it has?spent a very long time intensifying in the open Pacific. It is absorbing energy from the warm ocean, and accumulating a large amount of moisture," Xiangbo, Xiangbo, Xiangbo, Xiangbo, Xiangbo, a research scientist at Imperial College London, specializes in tropical cyclones. The damage that could occur if it made landfall, or got close to coastal areas, would be catastrophic. Feng said that a small change in Bavi’s track could have an important impact.
-
Palm oil falls due to continued uncertainty in Indonesia biodiesel allocation
Malaysian palm oil futures declined on Thursday as a result of the?uncertainty about Indonesia's allocation of biodiesel, but the stronger crude oil prices capped the losses. By midday, the benchmark?palm-oil contract on Bursa Derivatives Exchange for September delivery had shed 20 ringgit (0.43%) to 4,589 Ringgit ($1,125.58). Anilkumar bagani, commodity researcher at Mumbai-based Sunvin Group, says that the lack of clarity regarding Indonesia's B50 allocation has caused palm oil to lose its upward momentum. The allocations of participants who are subsidised or not, and the volumes involved in total, will be key factors for determining the increased demand for palm oil from the B50 program. Bagani said that a surge in energy prices, linked to renewed tensions in Middle East, and some 'palm oil purchasing interest' from India and China in this week helped cushion losses. Dalian's palm oil contract, which is the most active contract, increased by 0.33%. Chicago Board of Trade soyoil prices rose 0.04%. As it competes to gain a share in the global vegetable oil market, palm oil closely tracks the price fluctuations of competing edible oils. Oil prices rose by more than 1% following the U.S.'s?new strikes against Iran. This has dented hopes for talks that would?end the?war, and the full reopening of Strait of Hormuz - a chokepoint of one-fifth of global oil supplies before the war. Palm oil is a more attractive feedstock for biodiesel due to the stronger crude oil futures. The palm ringgit's currency has weakened by 0.07% compared to the dollar. This makes?the commodity more affordable for buyers who hold foreign currencies. Technical analyst Wang Tao stated that palm oil could extend its?gains up to 4,664 Ringgit per metric tonne, riding a wave c.
-
Malaysia's Perak mills are overwhelmed by palm production, despite fears of El Nino.
Malaysia has seen a rise in palm oil production as mills struggle to process the influx of fresh fruit bunches. The surge has?commenced despite earlier concerns that?El Nino might curb production in the country. A survey predicts that June production will increase 8.9% compared to the previous month to reach 1.65 million tons. The highest June inventory level ever recorded is likely to be reached. Sin Chew Daily reported earlier that the palm oil mills in Perak could not absorb the bumper harvest of the state because the crude?palm?oil storage tanks were full. David Lim Lian Keong is the president of the Palm Oil Millers Association. He said that the issue in Perak was caused by a seasonal, localised spike in FFB production, which?temporarily surpassed the processing and logistical capacity of mills within that catchment area. He stated that the state "doesn’t have many refineries" to begin with. Lim stated that some mills in Perak were temporarily congested, with trucks queuing up. Some mills also limited the purchase of FFB from smallholders?in specific areas. Lim, however, said that this was only a local problem and did not occur across the entire country. He said that "other?key regions" such as Kedah and Selangor have not yet reached their peak production cycle and their mills have enough excess capacity at the moment to process all FFB incoming. Malaysia's crude oil palm production amounted to 20.28 millions metric tonnes last year, with Perak accounting for 2,030,201 tons or 10% of the total. He said that once the 'local peak' passes and the FFB volumes normalise, he believes things will return to normal. (Reporting and editing by Thomas Derpinghaus; Ashley Tang)
-
Gold drops as Middle East hostilities resurrect inflation woes
Gold?fell? on Thursday and hovered?near a?one-week-low set in 'the?previous?session, as renewed U.S. - Iran hostilities raised oil prices, reigniting concerns about inflation, and longer-term interest rates. Gold spot fell by 0.4%, to $4,060.46 an ounce, at 0343 GMT. It had dropped to its lowest level since July 1, on Wednesday. U.S. Gold futures for delivery in August were down?0.3% to $4,069.80. The U.S. Military said Wednesday that it had launched new strikes against Iran in order to keep the Strait of Hormuz accessible to shipping. This triggered Iranian attacks on Kuwait, Bahrain and Kuwait as the latest escalation of the war. The oil price continued to rise on Thursday. The Federal Reserve is expected to reprice a second interest rate hike as soon as the first quarter of next year. Kelvin Wong is a senior analyst at OANDA. After yesterday's skirmishes, the temporary ceasefire between U.S.A. and Iran could be in a weakened position right now. Things could become very fluid again. The CME FedWatch tool shows that the markets are pricing in a 68% probability of an interest rate increase in September and an 87% likelihood of one in January 2027. The U.S. Central Bank's last meeting was also marked by concern about 'high inflation'. Officials followed Fed Chairman Kevin Warsh to issue a more streamlined policy statement despite concerns that prices were increasing and might require an interest rate increase. Gold is often viewed as an inflation hedge. However, high interest rates can weigh down on this non-yielding investment. Bank of America has reduced its 2026 gold average forecast by 14%, to $4360 per ounce. This is due to a more hawkish Fed. The price of spot silver dropped 0.9%, to $57.77 an ounce. Meanwhile, platinum increased 0.8%, to $1591.13, and palladium rose 0.8%, to $1223.95. (Reporting and editing by Subhranshu Sahu, Harikrishnan Nair and Swati verma from Bengaluru)
-
China's Xiaomi unveils SUV series dubbed Sky Nomad
China's Xiaomi unveiled a new SUV series on Thursday called Sky?Nomad. This is a move to expand the company's reach into automobiles, as its smartphone market continues to slow. Lei Jun, the CEO of Xiaomi, announced on his Weibo account that the extended-range electric vehicle (EREV) will include "smart and versatile" SUVs. He also posted a poster teaser of one of these vehicles. EREVs, or plug-in hybrids, are vehicles that fall between petrol-electric hybrids (PEVs) and battery-only cars. They use a combustion motor as a generator to increase the battery's driving range. Xiaomi's announcement marks an expansion beyond battery powered sedans and cross-overs?into a popular category of models such as Li Auto. Xiaomi's EV division has grown to be a major revenue generator in the last two years with its SU7 sedan and YU7 cross-over. As growth in the smartphone and home appliances markets slowed, the consumer electronics firm looked for new revenue sources. The auto industry is still expensive for the tech company due to high investment costs and low profit margins. Xiaomi's SU7 and YU7 EV lines are positioned as a Chinese high-tech alternative to Tesla Model 3 and Model Y. Data from the auto information and trading site DCar showed that by the end of June Xiaomi had sold 258,232 YU7 crossovers since the launch of the model in June 2025, compared to the 470,207 Model Y vehicles in China over the same time period. Xiaomi has locked in orders for its existing models, but the domestic market is slowing down. It also hasn't exported any vehicles yet unlike other domestic competitors. The company is planning to launch cars in Europe next year. "They (car-owners) want their cars to be a?second home. Lei stated that for them, the car is more than just a vehicle. It's a moving home. (Reporting and editing by Christopher Cushing; Qiaoyi Li and Ju-min Park)
-
Iron ore is in short supply as fears of a possible disruption to the supply counteracts a weakening demand
Iron ore prices were range bound on Thursday as investors weighed the potential supply risks arising from a strike threat by some BHP iron ore employees against a seasonally weakened demand in China, the world's largest consumer. As of 0304 GMT, the most-traded contract for?iron?ore on China's Dalian Commodity Exchange increased 0.27% from 745.5 Yuan ($109.66), a metric tonne. As of 0254 GMT, the benchmark August iron ore contract on Singapore Exchange fell 0.18% to $98.85 per ton. BHP's Port Hedland Iron?ore operation in Western Australia may see hundreds of workers walk off their jobs next week. This would be the largest industrial action in recent decades. Steelmakers and traders are among those who have expressed concern about a possible disruption of supply in the world's biggest bulk export port. Analysts also expected that the supply from major producers would decline as the rush to ship to meet quarterly guidance came to an end. Some mills began equipment maintenance due to a seasonal decline in steel demand. This led to a reduction in steel production and reduced feedstock demand. China's daily crude-steel output fell 3.6% in the last 10 days of June from the previous ten-day levels to?2,66 million tons. The price of coking coal, another steelmaking ingredient, rose by 0.39% and 0.45% respectively. This was due to the rising energy prices, which were a result of renewed supply concerns after the United States' recent strikes against Iran. The benchmarks for steel on the Shanghai Futures Exchange were mixed. Rebar edged up?0.1%. Hot-rolled coil edged down 0.12%. Wire rod dropped 0.24. Stainless steel fell 1.47%.
-
Oil jumps on Gulf hostilities, Asian shares rise as chips rally
Asian shares rose on Thursday, as semiconductors saw a reprieve from heavy selling. However, gains were capped off by an?increase in oil prices due to a resumption in hostilities in Gulf which reignited inflation fears and hammered bonds. Oil prices rose for the third consecutive session after President Donald Trump announced that the interim agreement between Iran and the United States to end the war is "over". U.S. forces also conducted fresh attacks on Iran to open up the Strait of Hormuz for a second consecutive day. Trump, however, later stated that he didn't expect a full-blown war to return, which helped calm fears. Brent crude futures increased 0.8%, to $78.65 per barrel. They were up 9.1% this week to reach $80 per barrel for the very first time since June 22, 2016. This shook global bond markets, and increased bets on the Federal Reserve raising interest rates to combat inflation this year. Fed funds futures are now implying a policy tightening of 38 basis points this year. Wall Street fell initially on Trump's remarks, but recovered from session lows. The Nasdaq managed a 0.2% gain. Nvidia, the chip?giant, rallied by 3.6% following media reports that China will allow its top AI companies to purchase a limited number of Nvidia's H200 processors. The broadest MSCI index of Asia-Pacific stocks outside Japan rose by 0.8%. Japan's Nikkei gained 2.3%, ending a three-day loss streak. South Korea's KOSPI jumped by 3.8%. This was driven by a rise of 3.6% in Samsung, and a surge of 7.5% in SK Hynix. Investors bought into the recent sale-off in chips. Wall Street futures in Asia were flat, but pan-regional stock futures in Europe rose 0.9%. Chris Weston is the head of research for Pepperstone. "At this point, the market appears to be skewed in favor of the view that (Iran's) conflict will de-escalate and negotiations around the Memorandum?of Understanding resume," he said. "Traders understand that they must remain open-minded." The situation is fluid and it's difficult to predict the timing. The minutes released by the Fed show that policymakers are concerned about rising inflation. Some participants even said it was time to increase borrowing costs. Asia has been hit by the global bond crisis. The yield on Japanese 10-year government bonds increased 1.5 basis points to 2.880%. This is the highest yield since September 1996. Meanwhile, Australia's 10-year bond yields rose 4 basis points to 4.924%. After a 4 basis point increase overnight, the benchmark 10-year U.S. Treasury bond yields rose another 2 basis points on Thursday to 4.5852%. The yields have risen 10 basis points so far this year. The currency markets were a bit'muted.' The dollar failed to hold onto its 'yield support, and ended the day down by 0.2% at 162.38 yen. The dollar was only 0.2% away from its 40-year high of 162.84 yen, as speculators remained wary of Japanese interventions. The euro rose by 0.1%, to $1.1428. Sterling also gained 0.1%, to $1.3401, which is just below the three-week high of $1.341. Gold's price remained flat at $4.079 per ounce. Reporting by Stella Qiu, Sydney; Editing and proofreading by Lincoln Feast.
-
Oil prices rise after US strikes on Iran
Oil prices rose on Thursday, after the U.S. launched new?strikes in Iran. This dented hopes of an end to the Iran war, and the full reopening of the Strait of Hormuz. The Strait of Hormuz is a chokepoint that supplies one-fifth of the world's oil supply before the war. Brent crude futures were up 78 cents or 1% at $78.8 per barrel as of 0054 GMT. U.S. West Texas Intermediate Crude Futures rose 74 cents or 1.01% to $74.26 per barrel by 0054 GMT. WTI and Brent crude prices rose by more than $1 in the post-settlement trading on Wednesday, after the U.S. began to launch new strikes against Iran. The benchmarks were at their highest level in more than two weeks before that after U.S. president Donald Trump threatened to launch new strikes against Iran as early as Wednesday night. The U.S. Military?said that it would launch?fresh attacks on Iran to keep the Strait of Hormuz, which is critical to the flow of traffic through the Strait of Hormuz, open for traffic. This comes after President Donald Trump announced an interim agreement ending the war as "over". Tony Sycamore, IG's analyst, said that the rush of oil through the strait is now over. Shipowners are expected to be more cautious, he added. The U.S. claimed that?its latest attacks were in response to the Tuesday's attack?on three??tankers? transiting through the strait. The U.S. attack rattled cities along Iran's south coast, and some areas were left without power. Iran claimed on Wednesday that it had attacked U.S. military sites in Bahrain, Kuwait and Yemen in response to previous U.S. attacks on infrastructure. Insurance industry sources reported on Wednesday that some war underwriters had 'advised' shipping companies to pause their voyages through the Strait of Hormuz and others were reviewing their policies after Iran's renewed vessel attack.
London copper firms' market gauges the macro impact of Mideast strikes
The price of copper in London rose on Thursday as the market assessed the impact of the latest threats to calm in the Persian Gulf on macroeconomic conditions.
Benchmark three-month copper on the London Metal Exchange rose 0.62% to $13,247.5 per metric ton at 0300 GMT.
The Shanghai Futures Exchange's most traded copper contract fell by 0.78%, to 102200 yuan (about $15,035.38) per ton. This was a reduction from the 1.32% drop earlier in the day.
In a recent note, Chinese broker Everbright Futures stated that the resurgence in Middle East conflict had?led to short term trading based upon inflation and interest rates logic.
Copper prices fell on Wednesday, after U.S. president Donald Trump declared that the Memorandum of Understanding?signed with Iran for the end of the Gulf Conflict was "over", and the two countries exchanged attacks.
The fighting has pushed up oil prices and raised concerns about macroeconomic conditions, particularly inflation and the possibility of higher interest rates in the U.S. for a longer period.
Metals dependent on growth have been impacted by fears that interest rates will rise, reducing economic activity.
The manufacturers have been squeezed by higher input costs. Data released on Thursday revealed that the?inflation rate of Chinese producers reached a record high in June.
Minutes of the U.S. Federal Reserve meeting in June, released overnight, showed that policymakers were increasingly concerned about inflation.
Aluminium prices fell slightly in other places. The price of aluminium on the LME fell by 0.11% while the price on the SHFE dropped by 0.76%.
Aluminum was supported by a waning inventory and fears about disruptions to the return of supply from Middle East. This region accounts for around 9 percent of global aluminum refining capacity.
Zinc?added 0.4 %, lead fell 0.19%, Nickel?lost 0.72 % and Tin gained 0.72%.
On the SHFE, tin fell 1.56%, while lead dropped 0.34%. Nickel also lost 0.77%. $1 = 6.7973 Chinese Yuan Renminbi (Reporting and editing by Ronojoy Mazumdar).
(source: Reuters)