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Asia markets reach new records due to AI euphoria; yen rises again
The dollar fell, stocks soared, and oil prices dropped after U.S. president Donald Trump announced "great progress" in reaching a "final deal" with Tehran. Meanwhile, momentum accelerated for AI-driven trading. Trump announced that he would temporarily halt an operation escorting vessels through the?Strait?of Hormuz. This area, which carries a fifth or more of the world's oil, has been blocked by Iran since late Febuary, triggering a worldwide energy crisis. Brent crude fell 1.6%, to $108.07 a barrel. S&P 500 futures rose 0.3%. MSCI's All-Country World Index climbed 0.4%, a new record. It was followed by similar milestones in its Emerging Markets index and its broadest Asia-Pacific share index outside Japan which rose 2.8%. South Korea's Kospi led the share rally with a 6.6% surge, as it cleared the 7,000-mark for the first. The yen gained as much as 1.8% in the afternoon on foreign exchange markets. Traders were alert for any new intervention from Tokyo to support the currency. Thomas Mathews is the head of markets at Capital Economics, Wellington. "There is a lot of optimism about a U.S. - Iran 'deal' right now; it could be that the authorities thought this was the perfect time to give the yen a little extra nudge." It could be that the holiday season has affected trade. Best to wait and see what happens towards the end of this week. Wall Street stocks?recorded new highs on Tuesday, as the S&P 500 gained 0.8% and Nasdaq Composite grew 1%. Chris Weston is the head of research for Pepperstone Group Ltd. in Melbourne. He said that investors continue to buy and add to their positions in 2026 winners. There has been some purchasing in S&P500 materials stocks. However, it is tech that continues attracting the majority of flows. Especially in Apple and memory plays. Samsung Electronics' stock price soared 14.8% as the Seoul market opened after a long holiday. The company now has a market cap of $1 trillion, surpassing Berkshire Hathaway, and is closing in on Walmart. The earnings growth trajectory in Asia for sectors like semiconductors, tech, hardware, industrials, and materials is the highest I've seen in years, according to?Rushil Khanna. He is the head of equity investments in Asia for Ostrum, a Natixis Investment Managers affiliate. He said that "this capex will lead to material value creation in Asia as the provider of picks and shovels for the AI ecosystem." The shares of Advanced Micro Devices rose 16.5% during extended trading on Tuesday as the company predicted second-quarter revenue that was above Wall Street's expectations. This was aided by the strong demand for their dead-centre chip as cloud computing companies increase spending on AI infrastructure. The U.S. Dollar Index, which measures greenback strength against a basket six currencies, fell 0.3% to 98.02 on the foreign exchange markets. Sterling is at $1.3588 and the euro at $1.1736, both of which are up around 0.4% on this day. The Australian dollar rose to $0.7246 and reached its highest level since June 2022. This was boosted by an improved risk appetite, as well as a third consecutive interest rate hike the day before. New Zealand's dollar rose 1% to $0.5947. The yield on 10-year Treasury bonds in the United States was unchanged at 4,424%. Gold rose 2.1% to $4,651.84. Bitcoin fell 0.5% to $81,264.67, while ether dropped 0.8% to $2,364.40. (Reporting and editing by Shri Navaratnam, Sam Holmes, and Gregor Stuart Hunter)
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Equinor's first-quarter profits rise more than expected
The company reported on Wednesday a higher-than-expected increase in profits for the first quarter, boosted by a record production and the fact that oil and gas prices rose in March because of the Middle East war. Equinor's poll of 23 analysts predicted $9.0 billion for the Norwegian energy group. This quarter, we?deliver exceptional performance in the field and record-high output... "We present strong financial results, combined with higher prices," said?CEO Anders Opedal in a press release. Equinor has maintained its decision to reduce share buybacks this year by 70%, despite the possibility of windfall profits resulting from Middle East supply disruptions. It also kept its regular quarterly cash dividends at $0.39. Equinor, a majority-owned state company, has seen its shares rise 62% in the past year, outperforming an increase of 37% among European energy stocks. This is due to Equinor's position as Europe's largest supplier of oil, gas and natural gases, with no direct exposure to Middle East. The downstream division, which includes trading in energy, posted a profit exceeding analysts' expectations of $693 million and surpassing the $400 million quarterly guidance. Brent crude futures are now trading well above $100 a barrel, after trading in the $60-$70 range for most of the last 12 months. The spot price for physical delivery is even higher. The European benchmark gas price has also increased sharply. It is now around 50% higher as Qatar cannot deliver liquefied gas (LNG). Equinor has produced a record 2,31 million barrels of oil equivalent per day in the first quarter. This is up from the previous year's 2.12 million and beat the analysts' forecast of 2.22 million.
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Gold prices jump on dollar weakness and Middle East peace hopes
The gold price rose by 2% Wednesday due to a weaker dollar. Meanwhile, lower oil prices eased concerns about inflation and interest rates that would be higher for longer, in anticipation of an agreement between the U.S. and Iran. As of 0415 GMT, spot gold was up by 2% to $4,647.09 an ounce. U.S. Gold Futures for June Delivery rose 2% to $4 658. U.S. president Donald Trump said Tuesday that he will temporarily halt an operation to help escort vessels through the Strait of Hormuz. He cited progress towards a comprehensive deal with Iran. The gold price rose as oil prices fell on the back of a reduction in the geopolitical risks premium after the U.S. confirmed the fragile ceasefire that has been ongoing between Iran and the United States is still intact despite the "skirmish" that occurred at the beginning of this week, said Kelvin Wong, senior analyst?at OANDA. After Trump suggested that a peace agreement could be reached with Iran to end the conflict, crude oil and U.S. dollars prices fell. Marco Rubio, the U.S. Secretary for State, told reporters Tuesday that "operation Epic Fury has concluded." He added that "we don't cheer on an additional situation." Wong said that if there are signs of tensions between the two countries, gold prices will be affected by profit-taking or a move to reduce short-term speculators' net long positions in gold. The dollar is weaker, and metals priced in dollars are cheaper for holders of other currencies. The dollar price of metals is cheaper for holders other currencies. ]USD/] Increased crude oil prices can cause inflation and increase interest rates. Gold is seen as an inflation hedge, but high interest rates can make other assets that yield more attractive. This reduces its appeal. Investors are waiting for the U.S. Non-farm Payrolls to be released later this week. This will determine if the economy is resilient enough to keep the Federal Reserve's policy on hold. Silver spot rose by 3.4%, to $75.62 an ounce. Platinum gained 2.4%, to $1,999.95. Palladium was 2.6% higher, at $1,524.59. (Reporting and editing by Rashmi Dhaniwala and Mrigank Aich in Bengaluru)
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Lynas CEO: US and European rules influence buyers away from Chinese rare Earths
The chief executive of Australia's Lynas Rare Earths?said that new government?regulations?in the U.S.and Europe?are helping to?push customers?to buy rare earth products?from suppliers?outside China?. China has been the world's leading and cheapest producer of metals and magnets, which are used in industries ranging from automotive to defense. It is also the default supplier for many years. Last year, China's restrictions on some exports in response to U.S. Tariffs left automakers and other industries vulnerable. Washington has since pledged to support higher?earths prices for its top rare?earths producers to spur non-Chinese supplies, but convincing customers to pay more, when there are cheaper Chinese alternatives, has proven difficult. Next year, the U.S. will introduce new procurement?regulations that include restrictions on the purchase of certain magnets and tantalum, while the European Union is bringing in sourcing restrictions for these supplies under its framework of critical raw materials, Lynas' CEO Amanda Lacaze stated. She said that in both cases we're observing consumers making different purchasing decisions to comply with regulations. Lynas of Perth, with a processing facility in Malaysia, is world's largest producer of rare Earths outside of China. Lacaze called on governments to intervene more to help the rare earths industry flourish outside of China. This included?for countries other than the U.S. or Japan to set floor prices. The Australian Resources Minister said in March that the country is revising policies regarding building a strategic reserves, which "no doubt," will have an element of a?floor?price. This comes as Australia looks to cement its position as a major supplier to its allies. Reporting by Melanie Burton, Melbourne Editing done by Alasdair pal and Lincoln Feast.
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BHP CFO: New investors are buying into copper exposure and AI demand
Vandita Pant, BHP's Chief Finance Officer, said on Wednesday that generalist investors are buying into the company as AI demand makes its exposure to copper more valuable. BHP shares, the largest listed copper miner in the world, reached a new record on March 2, but then dropped amid a sector-wide selloff when the war with Iran began. They have since recovered some of their losses. She told the Macquarie Australia Conference that she has seen a?growing?interest since half results. We also see more generalist international investors in our register. BHP Group reported a ?stronger-than-expected half-year underlying profit driven ?by copper, which for the first time surpassed iron ore in the company's earnings, as prices for the red metal surged on AI-fuelled demand. They don't like to choose winners. They're?going downstream and asking where the bottleneck is? Copper is a bottleneck. We want to invest in companies where we can reduce the downside risk, but still have exposure to this upside. BHP is a good option for them." Investors told last month that major fund managers were 'heralding' a sustained rally for mining and metals as the money poured into the sector in the fastest rate in years. This was driven by a buildout of AI infrastructure, increasing defence spending, and a shift away expensive tech stocks.
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Iron ore prices jump as China resumes trade after the holiday
Iron ore futures rose on Wednesday, as China returned from its May Day holiday break. Demand for steelmaking feedstock is expected to increase in the summer when construction activities will re-start and blast furnaces will resume production. As of 0221 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was up 2.33% to 812 yuan (US$119.08) per metric ton. The benchmark June Iron Ore at the Singapore Exchange is 1.19% higher, $109.8 per ton. Galaxy Futures, a Chinese broker, said that after the five-day holiday, steel demand will likely pick up in China. After completing maintenance over the holidays, blast furnaces are expected to restart operations. Galaxy Futures reported that iron ore prices were 'also supported by an increase in volatility of coking coal and?coke?prices as summer approaches. This was driven by a higher?energy?demand, Galaxy Futures added. However, high ore imports, and a weaker overall steel demand, weighed down on price gains. According to Mysteel, the number of iron ore arriving at Chinese ports has increased from April 27 to may 3, by 2,15 million tonnes week-on-week. Liu Huifeng is the chief researcher for ferrous metals and futures at Donghai Futures. He said that although steel prices have "rebounded", surging energy prices and raw materials are putting pressure on the "already decreasing steel mill margins". Coke and coal, which are used in steelmaking, both grew by 2.57% and 2.04% respectively. The benchmark steel prices on the Shanghai Futures Exchange increased. Rebar jumped 1.25%. Hot-rolled coil climbed 1.9%. Wire rod soared 5.26%. Stainless steel grew 1.49%. ($1 = 6.8187 yuan) (Reporting by Ruth Chai; Editing by Subhranshu Sahu)
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Gold prices jump on dollar weakness and Middle East peace hopes
Gold prices increased by more than 1% on Tuesday, boosted by a weaker dollar. Meanwhile, lower oil prices eased concerns about inflation and interest rates that would continue to rise, in anticipation of an agreement between the U.S. and Iran. As of 0225 GMT, spot gold rose 1.7% to $4,633.31 an ounce. U.S. Gold Futures for June Delivery rose 1.7% to $ 4,643.20. U.S. president Donald Trump announced on Tuesday that he will temporarily pause an operation in order to help escort vessels through the Strait of Hormuz. He cited?progress towards a comprehensive deal with Iran. According to Kelvin Wong of OANDA, senior market analyst, "oil prices declined on reduction in the geopolitical risks premium" after the U.S. confirmed the fragile ceasefire that has been ongoing between Iran and the United States is still intact despite the skirmishes that were seen at the start of this past week. After Trump's announcement that a peace agreement could be reached with Iran to end the conflict, both the U.S. Dollar and crude oil prices fell. Dollar-priced materials become cheaper for holders of currencies other than the U.S. dollar. ]USD/] While crude oil prices are rising, they can also increase the probability of interest rates increasing. Gold is considered a hedge against inflation, but high interest rates can make other assets with higher yields more appealing, which reduces its appeal. Marco Rubio, the U.S. secretary of state, told reporters that "operation Epic?Fury" is over. He added that "we don't cheer for another situation to occur." Wong explained that if there are any signs of a resurgence of tension, gold prices will be affected by profit-taking or short-term traders unwinding their net long positions in 'gold'. Investors are now awaiting the U.S. Non-farm Payrolls Release later this week. This will test whether or not the economy is resilient enough to maintain the Federal Reserve's monetary policies on hold. Silver spot rose by 2.7%, to $74.80 an ounce. Platinum gained 1.7%, to $1,986.25, while palladium increased 2.1%, to $1,516.44. (Reporting and editing by Rashmi aich in Bengaluru)
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Rivian develops variants of the R2 EVs that are more affordable
Rivian's CEO revealed that the company is developing undisclosed versions of its R2 electric vehicle, just days after it began mass production of "the smaller, more affordable SUVs". Rivian is known for its R1 SUVs and pickup trucks. The company plans to begin delivering R2 SUVs in June. Analysts say that a successful launch will be critical to the expansion of the company's mass market. When asked about the pickup version of R2, CEO RJ scaringe replied in an interview, "There are other variations of R2, that we haven't showed." "What we are building in Georgia allows different variations," said he, referring to a new factory where Rivian plans to expand production of R2 cars. Scaringe didn't disclose any details on what the other variations would look like. The demand for EVs in the United States has been hit by the elimination of 'key tax credits,' although the high price of gasoline has sparked some interest in battery powered vehicles. Affordable EVs have been hailed as a bright spot for the electric vehicle sector, since borrowing costs are still high. Rivian announced in March various trims for the?R2 crossover. The launch will start with a R2 priced at $58,000, and then other versions that are cheaper will be released later this year or in 2027. By late 2027, Rivian will release a $45,000 trim that has a range of over 275 miles. This trim is expected to broaden the customer base for Rivian. Rivian launched first its R1T pick-ups in 2021, followed by the R1S SUVs. Rivian announced R2 SUVs with the mid-size platform. They also have a smaller R3 crossover and the R3X performance variant. Scaringe stated that "clearly?there could possibly be an R2X." He continued: "There will be combinations." "I want to be careful not to announce the program." Rivian’s forecast for a 53% increase in deliveries this is due to the rollout of?R2 cars and implies approximately 22,000-23,000 R2 deliveries assuming steady demand and a smooth ramp up. Cantor Fitzgerald's?Andres?Sheppard wrote in a note to clients following?Rivian’s quarter earnings last week that the R2 will "materially boost" sales and "capture more EV market shares," thanks to its lower price point and autonomy features. Uber will also deploy 10,000 R2 fully autonomous vehicles in 2028 as part of a $1.25 billion robotaxi agreement with Rivian. (Reporting and editing by Christopher Cushing in San Francisco, Abhirup Roy from San Francisco)
Dsm-firmenich achieves core profit forecasts thanks to scent and beauty demand
On Wednesday, European chemical manufacturer dsm - firmenich reported an adjusted core 'profit' that was broadly in line with market expectations. This was largely due to the strong demand for their perfumery and beauty product.
The adjusted EBITDA of the group was 434 million euro ($509m), which is slightly higher than analysts' expectations, who had forecast 431 million euro in a "company-provided" consensus.
The adjusted EBITDA grew 4% in the first quarter on a comparable basis, but fell on a reported base. The margin fell to?19.1%, down from 19.7%, due to negative currency effects, higher freight and energy costs, and dsm firmenich. Due to currency effects and portfolio changes after the sale of Agro Ingredients, reported sales decreased 3% over the past year.
Some customers also brought their orders forward to the end of the third quarter due to the uncertainty surrounding global supply chains, which is linked to the Middle East.
In a press release, CEO Dimitri de Vreeze stated that "we made a strong start to the new year with good (like for like) sales growth across all business while navigating an extremely?dynamic macroeconomic and geopolitical environment." Analyzing the actions taken by 175 companies in the first quarter of the financial year, it is clear that the chemical industry has been hit the hardest. Just over half of the '27 actions tracked by the sector involved financial pressure, guidance reductions or price increases in response to rising fuel costs and other petrochemicals.
(source: Reuters)