It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.673 million by the end of July, marking the lowest level since January 2021 as detailed by Reuters in a report. <o:p></o:p>

This decline was more pronounced than expected, with economists having forecast 8.100 million job openings. The job openings rate also dropped to 4.6 per cent, the lowest since December 2020, down from 4.8 per cent in June.<o:p></o:p>

Impact of these changes on the labor market sector wise<o:p></o:p>

The reduction in job openings was particularly noticeable in certain sectors. Healthcare and social assistance saw a decline of 187,000 unfilled positions, while state and local government, excluding education, experienced a decrease of 101,000. However, the professional and business services category witnessed an increase of 178,000 job openings.<o:p></o:p>

Despite the decline, the labor market remains robust. Hires increased by 273,000 to 5.521 million, with significant gains in accommodation and food services. Layoffs rose to 1.762 million, but this figure remains low by historical standards. The layoffs rate increased to 1.1 per cent from 1.0 per cent in June.<o:p></o:p>

Trade deficit widens amid strong imports<o:p></o:p>

In parallel with the labor market trends, the U.S. trade deficit widened in July due to a surge in imports. Data from the Commerce Department's Bureau of Economic Analysis showed that imports rose 2.1 per cent to $345.4 billion, with goods imports reaching $278.2 billion, the highest since June 2022. Capital goods imports hit a record high, driven by increased demand for computer accessories.<o:p></o:p>

The trade deficit increased 6.9 per cent to $97.6 billion, with the politically sensitive goods trade deficit with China rising to $27.2 billion. Exports, however, gained only 0.5 per cent to $266.6 billion.<o:p></o:p>

The combination of these economic indicators suggests a mixed picture for the U.S. economy. While the labor market is cooling, it remains in relatively good shape. "The labor market is still in pretty good shape, but it has cooled dramatically over the last year and a half," noted Bill Adams, chief economist at Comerica Bank.<o:p></o:p>

The strong domestic demand, as reflected by the high imports, indicates the economy's resilience. However, this could also lead to front-loading of imports in anticipation of higher tariffs, particularly on goods from China. The market reaction was cautious, with financial markets seeing less than a 50 per cent chance of a half-percentage-point interest rate cut in September.<o:p></o:p>

Hence, the U.S. economy is navigating a period of transition, with the labor market easing and the trade deficit widening. These trends will be closely watched by policymakers and investors as they assess the need for monetary policy adjustments and the overall health of the economy.<o:p></o:p>

<o:p>&nbsp;</o:p>

It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.

It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.673 million by the end of July, marking the lowest level since January 2021 as detailed by Reuters in a report. This decline was more pronounced than expected, with economists having forecast 8.100 million job openings. The job openings rate also dropped to 4.6 per cent, the lowest since December 2020, down from 4.8 per cent in June. Impact of these changes on the labor market sector wise The reduction in job openings was particularly noticeable in certain sectors. Healthcare and social assistance saw a decline of 187,000 unfilled positions, while state and local government, excluding education, experienced a decrease of 101,000. However, the professional and business services category witnessed an increase of 178,000 job openings. Despite the decline, the labor market remains robust. Hires increased by 273,000 to 5.521 million, with significant gains in accommodation and food services. Layoffs rose to 1.762 million, but this figure remains low by historical standards. The layoffs rate increased to 1.1 per cent from 1.0 per cent in June. Trade deficit widens amid strong imports In parallel with the labor market trends, the U.S. trade deficit widened in July due to a surge in imports. Data from the Commerce Department's Bureau of Economic Analysis showed that imports rose 2.1 per cent to $345.4 billion, with goods imports reaching $278.2 billion, the highest since June 2022. Capital goods imports hit a record high, driven by increased demand for computer accessories. The trade deficit increased 6.9 per cent to $97.6 billion, with the politically sensitive goods trade deficit with China rising to $27.2 billion. Exports, however, gained only 0.5 per cent to $266.6 billion. The combination of these economic indicators suggests a mixed picture for the U.S. economy. While the labor market is cooling, it remains in relatively good shape. "The labor market is still in pretty good shape, but it has cooled dramatically over the last year and a half," noted Bill Adams, chief economist at Comerica Bank. The strong domestic demand, as reflected by the high imports, indicates the economy's resilience. However, this could also lead to front-loading of imports in anticipation of higher tariffs, particularly on goods from China. The market reaction was cautious, with financial markets seeing less than a 50 per cent chance of a half-percentage-point interest rate cut in September. Hence, the U.S. economy is navigating a period of transition, with the labor market easing and the trade deficit widening. These trends will be closely watched by policymakers and investors as they assess the need for monetary policy adjustments and the overall health of the economy.

US job openings hit 3.5-year low as labor market cools, trade deficit widens

Donald Trump's shooting incident marks a pivotal moment in the history of the United States. It is the first major shooting incident on a key political figure since 1981.

Financial markets reacted swiftly, with the dollar strengthening and shift in US treasury yields. Bitcoin price surged to $60,000 as pro-market sentiment favours Trump's re-election following the attack. Analysts expect the reactions to amplify in coming days as uncertainty looms over the election rematch scheduled for November 5th. Meanwhile, Both gold and oil prices suffered losses following the attack.

According to recent polls, the attempted assassination has sparked market optimism for Trump. This mirrors historical trends seen after similar incidents involving political figures. Major industry leaders like Elon Musk and Bill Ackman have publicly endorsed Trump in the aftermath. Stock markets are also expected to surge amid growing investor confidence.

Economic issues such as immigration and fiscal policy continue to remain at the forefront of US voter concerns. However, Trump's perceived strength on economic matters, including extended tax cuts and potentially looser regulatory frameworks, ticks the scale in his favour.

Donald Trump's shooting incident marks a pivotal moment in the history of the United States. It is the first major shooting incident on a key political figure since 1981.

Donald Trump's shooting incident marks a pivotal moment in the history of the United States. It is the first major shooting incident on a key political figure since 1981. Financial markets reacted swiftly, with the dollar strengthening and shift in US treasury yields. Bitcoin price surged to $60,000 as pro-market sentiment favours Trump's re-election following the attack. Analysts expect the reactions to amplify in coming days as uncertainty looms over the election rematch scheduled for November 5th. Meanwhile, Both gold and oil prices suffered losses following the attack. According to recent polls, the attempted assassination has sparked market optimism for Trump. This mirrors historical trends seen after similar incidents involving political figures. Major industry leaders like Elon Musk and Bill Ackman have publicly endorsed Trump in the aftermath. Stock markets are also expected to surge amid growing investor confidence. Economic issues such as immigration and fiscal policy continue to remain at the forefront of US voter concerns. However, Trump's perceived strength on economic matters, including extended tax cuts and potentially looser regulatory frameworks, ticks the scale in his favour.

Market reactions to Trump Rally shooting

Asian stocks opened higher today, buoyed by gains on wall street. Japan’s Nikkei 225 rose 1%, while South Korea’s Kospi climbed 0.3%, driven by an increase in Samsung electronics despite ongoing union strikes. Hong Kong’s hang Seng Index futures were slightly up, reflecting cautious optimism in the region.

Global market roundup: Risk sentiment rises across markets

This past week, US markets closed with mixed results amid economic data indicating easing inflation pressures. The S&P 500 edged up to achieve its fourth consecutive record close. The Nasdaq composite also set a record high, marking its fifth straight all-time closing high. However, the dow jones industrial average slipped. The week saw the nasdaq posting its largest weekly gain since late April, bolstered by optimism over tech stocks.

Global markets in the week gone by

A day after the Trump administration effectively acknowledged the election of Joe Biden, investors showed their relief by pushing the two major stock market indexes to record highs on Tuesday.

It was a welcome party of sorts for Biden, but what investors were really embracing was the end of uncertainty. Biden has vowed to push for more stimulus to bolster the economy. His selection for Treasury secretary, Janet Yellen, is well known from her days as Federal Reserve chair. And several new coronavirus vaccine candidates mean that the pandemic could be under control in the months ahead.

President Donald Trump, who on the campaign trail had warned that Biden’s election would lead to stock market armageddon, on Tuesday implied that the day’s highs were his own doing, making an unscheduled stop at a White House briefing to play up the latest gains in the Dow Jones Industrial Average.

On Wall Street, the S&amp;amp;P 500 stock index rose 1.6% to a new high of 3,635.41, while the Dow rose 1.5%, closing above 30,000 for the first time.

“We have an enormous amount of certainty that we didn’t have just a few months ago,” said Kristina Hooper, chief global market strategist at Invesco, an investment management firm.

The good news about vaccines has bolstered stocks that had been hit hard by the outbreak. Stocks of airlines and oil companies have soared this month. United Airlines, American Airlines and Delta Air Lines have all climbed by more than 30 percent. The oil giant Chevron is up nearly 38 percent.

Markets also appeared to welcome the return of politics as usual under a future Biden administration, and were reassured by the news that Yellen will be Biden’s nominee to head the Treasury Department. She is a known quantity on Wall Street, well respected for her steady leadership at the head of the central bank, from 2014 to 2018.

“There had been some fear that Biden would pick a Treasury secretary with a strong anti-Wall Street bias,” wrote analysts with High Frequency Economics in a client note on Tuesday. “Janet Yellen isn’t that.”

A day after the Trump administration effectively acknowledged the election of Joe Biden, investors showed their relief by pushing the two major stock market indexes to record highs on Tuesday.

A day after the Trump administration effectively acknowledged the election of Joe Biden, investors showed their relief by pushing the two major stock market indexes to record highs on Tuesday. It was a welcome party of sorts for Biden, but what investors were really embracing was the end of uncertainty. Biden has vowed to push for more stimulus to bolster the economy. His selection for Treasury secretary, Janet Yellen, is well known from her days as Federal Reserve chair. And several new coronavirus vaccine candidates mean that the pandemic could be under control in the months ahead. President Donald Trump, who on the campaign trail had warned that Biden’s election would lead to stock market armageddon, on Tuesday implied that the day’s highs were his own doing, making an unscheduled stop at a White House briefing to play up the latest gains in the Dow Jones Industrial Average. On Wall Street, the S&amp;P 500 stock index rose 1.6% to a new high of 3,635.41, while the Dow rose 1.5%, closing above 30,000 for the first time. “We have an enormous amount of certainty that we didn’t have just a few months ago,” said Kristina Hooper, chief global market strategist at Invesco, an investment management firm. The good news about vaccines has bolstered stocks that had been hit hard by the outbreak. Stocks of airlines and oil companies have soared this month. United Airlines, American Airlines and Delta Air Lines have all climbed by more than 30 percent. The oil giant Chevron is up nearly 38 percent. Markets also appeared to welcome the return of politics as usual under a future Biden administration, and were reassured by the news that Yellen will be Biden’s nominee to head the Treasury Department. She is a known quantity on Wall Street, well respected for her steady leadership at the head of the central bank, from 2014 to 2018. “There had been some fear that Biden would pick a Treasury secretary with a strong anti-Wall Street bias,” wrote analysts with High Frequency Economics in a client note on Tuesday. “Janet Yellen isn’t that.”

Markets throw a welcome party of sorts for Biden

The Institute for Supply Management (ISM) said on Monday its index of national factory activity increased to a reading of 59.3 last month.

U.S. manufacturing near two-year high in October

Spot gold briefly touched a record high of $2000 an ounce on Tuesday amid a rally for the commodity

Gold tops $2000 for the first time in history of U.S | U.S Markets | Yellow Metal | WION

The drop in gross domestic product was the fastest the quarterly rate has fallen in modern record-keeping

U.S trade war with China impacts demand | US Economy | US Manufacturing activity

The Dow Jones Industrials slumped more than 1,000 points in intraday trading for the third time this week on Friday, as the <a href="https://www.wionews.com/business-economy/sensex-nifty-crash-as-global-markets-dive-over-spread-of-coronavirus-283314">rapidly spreading coronavirus outbreak raised fears of global recession</a>.

Over the week, virus fears have wiped nearly $3 trillion off the combined market value of S&amp;P 500 companies, putting the three main indexes on track their worst week since the 2008 global financial crisis.

As the world prepares for a likely pandemic, investors rushed to safe assets, deepening an inversion of the U.S. Treasury yield curve, a classic recession signal.

<a href="https://www.wionews.com/business-economy/carnage-on-dalal-street-stock-market-crash-wipes-off-rs-5-lakh-cr-investor-wealth-283262">Also Read: Carnage on Dalal Street - Stock market crash wipes off Rs 5 lakh cr investor wealth</a>

The benchmark S&amp;P 500 fell about 12% from its record closing high hit last week, confirming its fastest correction in history on Thursday.

At 10:03 a.m. ET, the Dow Jones Industrial Average was down 1,058.08 points, or 4.11%, at 24,708.56, the S&amp;P 500 was down 118.91 points, or 3.99%, at 2,859.85. The Nasdaq Composite was down 293.97 points, or 3.43%, at 8,272.51.

All the 11 S&amp;P sectors shed at least 2% and the defensive utilities, consumer staples and real estate sectors dropped more than 3%. The three sectors have outperformed the benchmark index this month.

"This selling is a bit extreme for something that we don't know enough about," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.

"What I do know is that the coronavirus is not going to lead us into a financial crisis that is long-lasting. It could put us in a technical recession, but the real concern is does that recession cause the US&nbsp;consumer to pare back on spending?"

While the magnitude of the economic damage from the containment measures, which have crippled supply chains and hit business investment, remained unclear, analysts have sharply downgraded their outlook for growth and corporate earnings.

Adding to worries, the Commerce Department's data on Friday showed US&nbsp;consumer spending rose less than expected in January, a loss of momentum that could be exacerbated by the virus outbreak.

Traders are now pricing in an interest rate cut by the Federal Reserve as soon as next month, but many have expressed doubts about how this would mitigate the impact of the outbreak.

Among individual stocks, Mylan NV dropped 6% after the drugmaker cautioned a financial hit from the coronavirus outbreak and warned of drug shortages in case of continued spread of the virus.

Declining issues outnumbered advancers for a 9.24-to-1 ratio on the NYSE and a 4.63-to-1 ratio on the Nasdaq.

The S&amp;P index recorded no new 52-week highs and 108 new lows, while the Nasdaq recorded 11 new highs and 386 new lows. 
&nbsp;

The Dow Jones Industrials slumped more than 1,000 points in intraday trading for the third time this week on Friday, as the rapidly spreading coronavirus outbreak raised fears of global recession.

The Dow Jones Industrials slumped more than 1,000 points in intraday trading for the third time this week on Friday, as the rapidly spreading coronavirus outbreak raised fears of global recession. Over the week, virus fears have wiped nearly $3 trillion off the combined market value of S&P 500 companies, putting the three main indexes on track their worst week since the 2008 global financial crisis. As the world prepares for a likely pandemic, investors rushed to safe assets, deepening an inversion of the U.S. Treasury yield curve, a classic recession signal. Also Read: Carnage on Dalal Street - Stock market crash wipes off Rs 5 lakh cr investor wealth The benchmark S&P 500 fell about 12% from its record closing high hit last week, confirming its fastest correction in history on Thursday. At 10:03 a.m. ET, the Dow Jones Industrial Average was down 1,058.08 points, or 4.11%, at 24,708.56, the S&P 500 was down 118.91 points, or 3.99%, at 2,859.85. The Nasdaq Composite was down 293.97 points, or 3.43%, at 8,272.51. All the 11 S&P sectors shed at least 2% and the defensive utilities, consumer staples and real estate sectors dropped more than 3%. The three sectors have outperformed the benchmark index this month. "This selling is a bit extreme for something that we don't know enough about," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. "What I do know is that the coronavirus is not going to lead us into a financial crisis that is long-lasting. It could put us in a technical recession, but the real concern is does that recession cause the US consumer to pare back on spending?" While the magnitude of the economic damage from the containment measures, which have crippled supply chains and hit business investment, remained unclear, analysts have sharply downgraded their outlook for growth and corporate earnings. Adding to worries, the Commerce Department's data on Friday showed US consumer spending rose less than expected in January, a loss of momentum that could be exacerbated by the virus outbreak. Traders are now pricing in an interest rate cut by the Federal Reserve as soon as next month, but many have expressed doubts about how this would mitigate the impact of the outbreak. Among individual stocks, Mylan NV dropped 6% after the drugmaker cautioned a financial hit from the coronavirus outbreak and warned of drug shortages in case of continued spread of the virus. Declining issues outnumbered advancers for a 9.24-to-1 ratio on the NYSE and a 4.63-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week highs and 108 new lows, while the Nasdaq recorded 11 new highs and 386 new lows.

Dow drops 1,000 points as pandemic fears heighten in early trade

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66.

The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown.

Market experts said the rupee's lower opening was largely due to weak global cues.&nbsp;

Both Asian and US markets crashed after the US-China trade war intensified.

Meanwhile, China`s yuan slumped to a fresh 11-year low against the dollar.&nbsp;

The offshore yuan fell to a record low of 7.1850, before regaining some ground to around 7.1595.

On Friday, US President Donald Trump announced an additional duty on 550 billion dollars of targeted Chinese goods after China unveiled retaliatory tariffs on 75 billion dollars worth of American goods.

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66. The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown.

The Indian rupee opened the week lower and slipped by 32 paise at 71.98 per dollar in early trade on Monday against its previous close 71.66. The Indian currency rose on Friday on hopes of revival measures from Finance Minister Nirmala Sitharaman who announced the first stimulus package for India Inc amid the domestic and global economic slowdown. Market experts said the rupee's lower opening was largely due to weak global cues. Both Asian and US markets crashed after the US-China trade war intensified. Meanwhile, China`s yuan slumped to a fresh 11-year low against the dollar. The offshore yuan fell to a record low of 7.1850, before regaining some ground to around 7.1595. On Friday, US President Donald Trump announced an additional duty on 550 billion dollars of targeted Chinese goods after China unveiled retaliatory tariffs on 75 billion dollars worth of American goods.

Rupee starts the week lower at 71.98 for a US dollar

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve.

The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.

The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38.

"The positive open follows mildly positive US markets on Monday and largely positive Asian markets this morning," said Deepak Jasani, senior vice president at HDFC Securities.

"Some beaten-down stocks of Monday are seeing some bounce."

Banks and financials led the gains, with the Nifty Bank index and the Nifty Finance index rising 0.5 per cent each. ICICI Bank was among the top gainers with a rise of 1.2 per cent.

State Bank of India, the country's biggest lender, tightened lending terms for auto dealers as it sought to reduce its exposure to the crisis-ridden sector, Reuters reported on Monday.

The move, however, did not dampen investor sentiment on the sector. The Nifty Auto index was up 0.4 per cent, after it touched an over three-year low on Monday.

Sector heavyweights Maruti Suzuki and Tata Motors were up 0.5 per cent and 0.8 per cent, respectively.

Dr Reddy's Laboratories, which reported better-than-expected earnings on Monday, saw its stock rise slightly over 1 per cent. Cipla Ltd was up nearly 2 per cent.

Among losers, Indiabulls Housing Finance Ltd extended its fall from Monday after a lawmaker alleged embezzlement by the company to the tune of 1 trillion rupees.

Meanwhile, shares of Coffee Day Enterprises Ltd plunged 20 per cent, after the founder and largest shareholder in the company went missing under mysterious circumstances on Monday.

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve. The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points.

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve. The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade. The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38. "The positive open follows mildly positive US markets on Monday and largely positive Asian markets this morning," said Deepak Jasani, senior vice president at HDFC Securities. "Some beaten-down stocks of Monday are seeing some bounce." Banks and financials led the gains, with the Nifty Bank index and the Nifty Finance index rising 0.5 per cent each. ICICI Bank was among the top gainers with a rise of 1.2 per cent. State Bank of India, the country's biggest lender, tightened lending terms for auto dealers as it sought to reduce its exposure to the crisis-ridden sector, Reuters reported on Monday. The move, however, did not dampen investor sentiment on the sector. The Nifty Auto index was up 0.4 per cent, after it touched an over three-year low on Monday. Sector heavyweights Maruti Suzuki and Tata Motors were up 0.5 per cent and 0.8 per cent, respectively. Dr Reddy's Laboratories, which reported better-than-expected earnings on Monday, saw its stock rise slightly over 1 per cent. Cipla Ltd was up nearly 2 per cent. Among losers, Indiabulls Housing Finance Ltd extended its fall from Monday after a lawmaker alleged embezzlement by the company to the tune of 1 trillion rupees. Meanwhile, shares of Coffee Day Enterprises Ltd plunged 20 per cent, after the founder and largest shareholder in the company went missing under mysterious circumstances on Monday.

Nifty, Sensex edge higher tracking broader Asia

Shares in Asia's major automakers and their suppliers sank on Friday after US&nbsp;President <a href="https://www.wionews.com/world/trump-plans-5-tariff-on-mexican-imports-over-illegal-immigration-222998">Donald Trump threatened to slap tariffs on Mexican imports</a> next month, potentially affecting vehicles made in Mexico and sold north of the border.

Trump, incensed by a surge of illegal immigrants across the southern border, said late on Thursday a tariff of 5% would be imposed on all goods coming from Mexico, increasing gradually each month until reaching 25% on October 1, unless Mexico takes immediate action.

The move is likely to hit a broad range of industries, but the auto industry looks particularly vulnerable as many global carmakers manufacture vehicles in Mexico to take advantage of its cheap labour, trade deals and its proximity to the United States, the world's second-largest auto market.

"Margins are so thin in the US market right now that there's no way that any automaker is not going to pass on these tariffs to their customers," said Janet Lewis, an analyst at Macquarie Securities.

"The unknown factor is the impact on suppliers, as components can move back and forth between Mexico, the United States and Canada up to 20 times before they make their way into assembled cars."

General Motors Co is the biggest car producer and exporter in Mexico, and its global peers Ford Motor Co, Volkswagen AG and Fiat Chrysler Automobiles NV also have manufacturing presence there.

In Japan, shares in Toyota Motor Corp fell 2% while Nissan Motor Co and Honda Motor Co fell about 3%. Mazda Motor Co took a bigger hit, tumbling nearly 7%. All four automakers operate vehicle assembly plants in Mexico, producing roughly one-third of the vehicles made in the country.

In South Korea, Hyundai Motor Co and affiliate Kia Motors Corp fell 1.1% and 4.2% respectively. Hyundai Wia Corp, which supplies auto components to the duo, fell 5.2%.

"Although we have to wait and see whether the US tariffs plan will be really implemented, this is negatively affecting investor sentiment," said Chang Moon-Su, an analyst at Hyundai Motor Securities in Seoul.

Japan's top automakers and their suppliers, including Denso Corp and Aisin Seiko Co, for decades, have been building vehicles in Mexico not only for the domestic market but also to export to the United States, taking advantage of previous free-trade agreements between the two countries.

Among them, Nissan produces the most vehicles in Mexico, and its exports to the United States account for roughly one-quarter of the firm's total vehicle sales in the country, industry experts say. Its Sentra and Versa models are made in Mexico for the US market.

Smaller rival Mazda exports about 30% of its Mexico-produced cars to the United States, while the figure for Toyota, which has been expanding US&nbsp;production of pick-up trucks, and Honda is less than 10% each.

Japanese automakers together produced about 1.25 million vehicles in Mexico in 2018.

But production in Mexico is dwarfed by the number of cars Japanese automakers produce in the United States, their single largest market, where the top three manufacturers alone produce roughly 4 million vehicles each year.

Shares in Asia's major automakers and their suppliers sank on Friday after US President Donald Trump threatened to slap tariffs on Mexican imports next month, potentially affecting vehicles made in Mexico and sold north of the border.

Shares in Asia's major automakers and their suppliers sank on Friday after US President Donald Trump threatened to slap tariffs on Mexican imports next month, potentially affecting vehicles made in Mexico and sold north of the border. Trump, incensed by a surge of illegal immigrants across the southern border, said late on Thursday a tariff of 5% would be imposed on all goods coming from Mexico, increasing gradually each month until reaching 25% on October 1, unless Mexico takes immediate action. The move is likely to hit a broad range of industries, but the auto industry looks particularly vulnerable as many global carmakers manufacture vehicles in Mexico to take advantage of its cheap labour, trade deals and its proximity to the United States, the world's second-largest auto market. "Margins are so thin in the US market right now that there's no way that any automaker is not going to pass on these tariffs to their customers," said Janet Lewis, an analyst at Macquarie Securities. "The unknown factor is the impact on suppliers, as components can move back and forth between Mexico, the United States and Canada up to 20 times before they make their way into assembled cars." General Motors Co is the biggest car producer and exporter in Mexico, and its global peers Ford Motor Co, Volkswagen AG and Fiat Chrysler Automobiles NV also have manufacturing presence there. In Japan, shares in Toyota Motor Corp fell 2% while Nissan Motor Co and Honda Motor Co fell about 3%. Mazda Motor Co took a bigger hit, tumbling nearly 7%. All four automakers operate vehicle assembly plants in Mexico, producing roughly one-third of the vehicles made in the country. In South Korea, Hyundai Motor Co and affiliate Kia Motors Corp fell 1.1% and 4.2% respectively. Hyundai Wia Corp, which supplies auto components to the duo, fell 5.2%. "Although we have to wait and see whether the US tariffs plan will be really implemented, this is negatively affecting investor sentiment," said Chang Moon-Su, an analyst at Hyundai Motor Securities in Seoul. Japan's top automakers and their suppliers, including Denso Corp and Aisin Seiko Co, for decades, have been building vehicles in Mexico not only for the domestic market but also to export to the United States, taking advantage of previous free-trade agreements between the two countries. Among them, Nissan produces the most vehicles in Mexico, and its exports to the United States account for roughly one-quarter of the firm's total vehicle sales in the country, industry experts say. Its Sentra and Versa models are made in Mexico for the US market. Smaller rival Mazda exports about 30% of its Mexico-produced cars to the United States, while the figure for Toyota, which has been expanding US production of pick-up trucks, and Honda is less than 10% each. Japanese automakers together produced about 1.25 million vehicles in Mexico in 2018. But production in Mexico is dwarfed by the number of cars Japanese automakers produce in the United States, their single largest market, where the top three manufacturers alone produce roughly 4 million vehicles each year.

Asian automaker shares hit as Trump threatens Mexico with tariffs

Wall Street stocks roared back to life on Wednesday, shaking off four straight routs following strong retail sales data and White House reassurances that Fed Chair Jay Powell won't be fired.

The Dow Jones Industrial Average finished up nearly 1,100 points, or about five per cent, at 22,878.45.&nbsp;

The broad-based S&amp;P 500 also surged five per cent to 2,467.70, while the tech-rich Nasdaq Composite Index advanced 5.8 per cent to 6,554.36.

The US gains were the biggest for a single session on Wall Street in nine years, a surge analysts attributed in part to technical factors after days of selling.

"It's coming off of oversold conditions and it was frankly due for a bounce," said Matt Miskin, market strategist at John Hancock Investments.

"Sentiment can be fickle in times like these, so it's important to not get whipsawed."

Still, the session was not without its shaky moments. After opening solidly higher, the Dow briefly sank into the red in mid-morning before recovering and gathering steam throughout the day.&nbsp;

Earlier, Tokyo closed higher on Wednesday, logging its first positive finish in six sessions. Chinese stocks closed slightly lower, while Seoul also dropped.

Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt.

More weakness ahead?

Many investors have been unnerved by a variety of factors, including the partial US government shutdown, the US-China trade war and Trump's ongoing criticism of Fed Chair Powell.

The sense of bearishness among investors is "just huge," said Karl Haeling of LBBW.

"From a tactical standpoint, you can expect a reflex rally," said Canaccord Genuity equity strategist Tony Dwyer in a note released ahead of Wednesday's session. "But it is hard to find an extreme oversold low that is not retested."

Yet some analysts have argued that the stock market's weakness in December has been disproportionate to economic conditions at a time when unemployment is low and growth is still solid.

"Our judgment is that the US economy remains solid at the moment," though investors need to pay attention to the possible impact of US trade rows with other countries on financial markets and business outlooks, said a report by Norio Miyagawa, senior economist at Mizuho Securities.

"As financial markets regain their calm, we expect US stocks and the dollar will track higher," he said.

Data from Mastercard SpendingPulse showed US holiday sales increased 5.1 per cent this holiday season to more than $850 billion, the biggest growth in the last six years.

White House economic advisor Kevin Hassett sought to reassure on Powell's prospects, telling ABC News the Fed chief is "100 per cent" safe. The remarks followed weekend media reports that US President Donald Trump has discussed firing Powell.

Analysts also took heart from a nearly nine per cent jump in US oil prices, the biggest in more than two years and another bounce back following recent weakness in petroleum markets.&nbsp;

Retailers were especially strong, with Amazon soaring 9.5 per cent after declaring that its notched new records in holiday sales, fueled by "tens of millions" of new subscriptions or free trials of its Prime service.

Petroleum-linked shares also had a good session, with Chevron winning 6.3 per cent and Halliburton 5.1 per cent following the rally in oil prices. 
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Wall Street stocks roared back to life on Wednesday, shaking off four straight routs following strong retail sales data and White House reassurances that Fed Chair Jay Powell won't be fired.

Wall Street stocks roared back to life on Wednesday, shaking off four straight routs following strong retail sales data and White House reassurances that Fed Chair Jay Powell won't be fired. The Dow Jones Industrial Average finished up nearly 1,100 points, or about five per cent, at 22,878.45. The broad-based S&P 500 also surged five per cent to 2,467.70, while the tech-rich Nasdaq Composite Index advanced 5.8 per cent to 6,554.36. The US gains were the biggest for a single session on Wall Street in nine years, a surge analysts attributed in part to technical factors after days of selling. "It's coming off of oversold conditions and it was frankly due for a bounce," said Matt Miskin, market strategist at John Hancock Investments. "Sentiment can be fickle in times like these, so it's important to not get whipsawed." Still, the session was not without its shaky moments. After opening solidly higher, the Dow briefly sank into the red in mid-morning before recovering and gathering steam throughout the day. Earlier, Tokyo closed higher on Wednesday, logging its first positive finish in six sessions. Chinese stocks closed slightly lower, while Seoul also dropped. Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt. More weakness ahead? Many investors have been unnerved by a variety of factors, including the partial US government shutdown, the US-China trade war and Trump's ongoing criticism of Fed Chair Powell. The sense of bearishness among investors is "just huge," said Karl Haeling of LBBW. "From a tactical standpoint, you can expect a reflex rally," said Canaccord Genuity equity strategist Tony Dwyer in a note released ahead of Wednesday's session. "But it is hard to find an extreme oversold low that is not retested." Yet some analysts have argued that the stock market's weakness in December has been disproportionate to economic conditions at a time when unemployment is low and growth is still solid. "Our judgment is that the US economy remains solid at the moment," though investors need to pay attention to the possible impact of US trade rows with other countries on financial markets and business outlooks, said a report by Norio Miyagawa, senior economist at Mizuho Securities. "As financial markets regain their calm, we expect US stocks and the dollar will track higher," he said. Data from Mastercard SpendingPulse showed US holiday sales increased 5.1 per cent this holiday season to more than $850 billion, the biggest growth in the last six years. White House economic advisor Kevin Hassett sought to reassure on Powell's prospects, telling ABC News the Fed chief is "100 per cent" safe. The remarks followed weekend media reports that US President Donald Trump has discussed firing Powell. Analysts also took heart from a nearly nine per cent jump in US oil prices, the biggest in more than two years and another bounce back following recent weakness in petroleum markets. Retailers were especially strong, with Amazon soaring 9.5 per cent after declaring that its notched new records in holiday sales, fueled by "tens of millions" of new subscriptions or free trials of its Prime service. Petroleum-linked shares also had a good session, with Chevron winning 6.3 per cent and Halliburton 5.1 per cent following the rally in oil prices.

Wall Street roars back to life in best session in 9 years

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday.&nbsp; 
 
Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data.&nbsp; 
 
Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. 
 
But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. 
 
&quot;It seems like every time the Fed places a rate hike &#39;on the table,&#39; the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September,&quot; said Pedro da Costa of the Peterson Institute for International Economics. 
 
The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands.&nbsp; 
 
&quot;We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year,&quot; said Jason Schenker of Prestige Economics in a client note. 
 
Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting.&nbsp; 
 
(WION with inputs from agencies) 
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Analysts say the tepid economic growth has left no room for changes in the Fed policy and the rates will likely remain at ultra-low level

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday. Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data. Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. "It seems like every time the Fed places a rate hike 'on the table,' the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September," said Pedro da Costa of the Peterson Institute for International Economics. The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands. "We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year," said Jason Schenker of Prestige Economics in a client note. Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting. (WION with inputs from agencies)

US Federal Reserve meeting opens, markets forecast no policy rate hike

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