As Gulf markets navigate mixed performances amid easing U.S.-China trade tensions and tepid earnings, investors are closely watching the impacts on regional indices. In this environment, dividend stocks can offer a measure of stability and income potential, making them an attractive option for those seeking to balance risk with steady returns.
Name
Dividend Yield
Dividend Rating
Turkiye Garanti Bankasi (IBSE:GARAN)
3.41%
★★★★★☆
Saudi Telecom (SASE:7010)
9.39%
★★★★★☆
Saudi Awwal Bank (SASE:1060)
6.23%
★★★★★☆
Riyad Bank (SASE:1010)
6.52%
★★★★★☆
National General Insurance (P.J.S.C.) (DFM:NGI)
7.54%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
6.41%
★★★★★☆
Emaar Properties PJSC (DFM:EMAAR)
6.94%
★★★★★☆
Computer Direct Group (TASE:CMDR)
8.09%
★★★★★☆
Commercial Bank of Dubai PSC (DFM:CBD)
5.34%
★★★★★☆
Banque Saudi Fransi (SASE:1050)
6.18%
★★★★★☆
Click here to see the full list of 68 stocks from our Top Middle Eastern Dividend Stocks screener.
We’re going to check out a few of the best picks from our screener tool.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Gulf Medical Projects Company (PJSC) operates hospitals in the United Arab Emirates and has a market cap of AED 1.44 billion.
Operations: Gulf Medical Projects Company (PJSC) generates revenue primarily from Health Services & Others, amounting to AED 711.55 million, and Investments, contributing AED 50.66 million.
Dividend Yield: 7.3%
Gulf Medical Projects Company offers a high dividend yield of 7.28%, placing it among the top 25% in the AE market. However, its dividends are not well covered by earnings, with a payout ratio of 106.2%. Despite recent earnings growth and cash flow coverage at an 84.6% cash payout ratio, dividend payments have been volatile over the past decade. The stock trades significantly below its estimated fair value but has experienced high price volatility recently.
ADX:GMPC Dividend History as at Oct 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Delek Group Ltd. is an energy company involved in the exploration, development, production, and marketing of oil and gas both in Israel and internationally, with a market cap of ₪15.12 billion.
Operations: Delek Group’s revenue segments include the development and production of oil and gas assets in the North Sea, generating ₪9.45 billion, and oil and gas exploration and production in Israel and its surroundings, contributing ₪3.36 billion.
Dividend Yield: 6.2%
Delek Group’s dividend yield of 6.22% ranks in the top 25% of the IL market, yet its dividends are unreliable and volatile over the past decade. Despite a low cash payout ratio of 26.1%, indicating coverage by cash flows, earnings do not cover dividends due to a high payout ratio of 107.5%. The company’s net income has declined despite increased sales, and it faces significant debt levels while trading below estimated fair value.
TASE:DLEKG Dividend History as at Oct 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: I.D.I. Insurance Company Ltd. offers a range of insurance products and services to both individual and corporate clients in Israel, with a market cap of ₪2.88 billion.
Operations: I.D.I. Insurance Company Ltd. generates its revenue through the provision of diverse insurance products and services to both individual and corporate clients in Israel.
Dividend Yield: 6.7%
I.D.I. Insurance’s dividend yield of 6.74% is among the top 25% in the IL market, but its dividends have been volatile and unreliable over the past decade. The low payout ratio of 35.3% suggests earnings cover dividends, yet a high cash payout ratio of 264.1% indicates insufficient cash flow coverage. Despite recent earnings growth—net income rose to ILS 94.62 million for Q2—the dividend sustainability remains questionable due to these financial constraints.
TASE:IDIN Dividend History as at Oct 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ADX:GMPC TASE:DLEKG and TASE:IDIN.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Indonesian stocks may suffer outflows, according to Citigroup Inc., as MSCI Inc. flags potential changes to its index weightings for companies with certain shareholding structures.
The benchmark Jakarta Composite Index fell 1.9% on Monday and fluctuated on Tuesday, after the index provider sought feedback on how to estimate the free float of Indonesian securities, or the portion of shares available for trading in the open market. The change might reduce some companies’ weightings in key MSCI indexes.
(Bloomberg) — The record-setting advance in global equities took a breather in Asian trading, as investors braced for a flurry of earnings from megacap technology companies and policy announcements from major central banks this week.
MSCI’s Asia Pacific gauge dipped 0.1% as indexes in Japan and South Korea retreated from their all-time highs. An index in Shanghai broke above the psychological barrier of 4,000 for the first time in a decade. The moves came after US indexes had closed at all-time highs as Chinese and US trade negotiators lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week.
“What we’re hoping is for some agreement with hard numbers,” Lorraine Tan, director of equity research for Asia at Morningstar, said in a Bloomberg TV interview. “We’re still going to be skeptical in effect that we do expect heightened risks from tariffs and geopolitics — there is no escape from that.”
Easing trade tensions have helped fuel a stock rally, while US companies have so far emerged largely unscathed by tariffs, protecting margins through price increases and cost cuts. That optimism faces a reality check this week as investors look to the Federal Reserve meeting for clues on the path of rate cuts, while major technology firms including Amazon.com Inc. and Microsoft Corp. reveal whether earnings momentum can be sustained.
On Wednesday and Thursday, five firms that account for about a quarter of the US benchmark — Microsoft Corp., Alphabet Inc., Meta Platforms Inc., Amazon.com and Apple Inc. — will report results. A gauge of the “Magnificent Seven” megacaps jumped 2.6% on Monday.
“With the Fed on track to cut rates, extending the run would appear to hinge on this week’s lineup of high-profile earnings releases,” said Chris Larkin at E*Trade from Morgan Stanley.
In other corners of the market, the yuan climbed to its strongest level in nearly a year, amid optimism over a potential China-US trade deal. A gauge of the dollar edged lower for a second day, while Treasuries were little changed. Gold held just below $4,000 an ounce as progress in trade talks sapped demand for haven assets.
The yen advanced to 152.24 a dollar Tuesday, outperforming its Group-of-10 peers, as markets welcomed supportive remarks from Japanese officials and cheered the outcome of a high-profile meeting between US and Japanese leaders in Tokyo.
What Bloomberg strategists say…
FX traders are reading it to be a reminder that the US administration would prefer a softer dollar. However, the Bank of Japan still needs to do their part this week and set up a rate hike for December. Otherwise USD/JPY could flip back to the 153 area, or higher.
— Mark Cranfield, Markets Live strategist. Click here for the full analysis.
Copper — a bellwether for global growth — advanced and traded roughly $60 shy of a record set last year as investors assessed the cooling of trade tensions between the US and China.
Technology stocks were in focus after Amazon.com planned to cut as many as 30,000 jobs, Reuters reported. Earlier, Qualcomm Inc. shares rose to their highest price in 15 months after unveiling chips and computers for the lucrative AI data center market, aiming to challenge Nvidia Corp. in the fastest-growing part of the industry.
On trade, Trump told reporters on Monday that “I really feel good” about a deal with China, after officials unveiled a slew of agreements to ease tensions.
While markets cheered the latest developments, some analysts cautioned the deal now teed up for Trump and Xi to sign in South Korea ignored thorny issues.
Fundamental fights over national security appeared untouched, they said, along with Trump’s stated core mission of rebalancing trade. Making that harder, Chinese investment into America remains heavily restricted.
“While these developments have lifted market spirits, analysts remain skeptical that the underlying issues — such as national security and tech competition — will be fully resolved,” said Fawad Razaqzada at City Index and Forex.com. “Nevertheless, traders have embraced the risk-on mood.”
Meanwhile, Trump hailed the US’s alliance with Japan, reaffirming ties with a longstanding partner and praising new Prime Minister Sanae Takaichi on her plans to ratchet up defense spending as the pair met in Tokyo. Trump and Takaichi signed a framework on critical minerals.
Takaichi is navigating implementation of a trade deal brokered under her predecessor that includes a nebulous pledge for Japan to fund $550 billion in US projects.
Corporate News:
Domino’s Pizza Enterprises Ltd. shares fell after the fast-food chain said it hasn’t received any takeover offer from buyout firm Bain Capital, refuting an earlier report that sent the stock surging. Nidec Corp. shares tumbled as much as their daily limit of 19% on Tuesday as the company was set to be removed from the Nikkei 225 Stock Average and was flagged for special oversight by the Tokyo Stock Exchange. CSL Ltd. plunged to the lowest in almost seven years after Australia’s biggest drugmaker postponed plans to spin off its vaccines business, as falling US flu immunizations deepen concern over a slowdown in its Seqirus unit. HSBC Holdings Ltd. reported third-quarter revenue that beat estimates, driven by its key wealth businesses, even as a $1.1 billion provision tied to the Bernard Madoff fraud cases weighed on earnings. Some of the main moves in markets:
Stocks
S&P 500 futures were unchanged as of 1:06 p.m. Tokyo time Nikkei 225 futures (OSE) fell 0.2% Japan’s Topix fell 0.6% Australia’s S&P/ASX 200 fell 0.3% Hong Kong’s Hang Seng was little changed The Shanghai Composite rose 0.2% Euro Stoxx 50 futures fell 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1661 The Japanese yen rose 0.4% to 152.26 per dollar The offshore yuan rose 0.2% to 7.0967 per dollar The Australian dollar was little changed at $0.6562 Cryptocurrencies
Bitcoin fell 0.5% to $113,860.86 Ether fell 0.9% to $4,092.4 Bonds
The yield on 10-year Treasuries was little changed at 3.98% Japan’s 10-year yield declined 1.5 basis points to 1.650% Australia’s 10-year yield declined two basis points to 4.17% Commodities
West Texas Intermediate crude fell 0.1% to $61.24 a barrel Spot gold rose 0.1% to $3,987.86 an ounce This story was produced with the assistance of Bloomberg Automation.
President and CEO of Saudi’s Aramco, Amin H. Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024.
Hamad I Mohammed | Reuters
Think of Saudi Arabia and the first thing that comes to mind might be its massive, oil-derived wealth.
While oil continues to drive Saudi Arabia’s economy, the kingdom is now expanding into areas such as artificial intelligence, tourism and sports to diversify its growth avenues.
According to Saudi Arabia’s Minister for Investment Khalid Al Falih, more than half — 50.6% — of the Saudi economy is now “completely decoupled” from oil.
“This percentage is growing,” Al Failh told CNBC’s Dan Murphy, adding that government revenue used to be almost completely derived from oil money, but now, 40% of its revenue comes from sectors and sources that “have nothing to do with oil.”
“We’re seeing great results, but we’re not satisfied. We want to do more. We want to accelerate the kingdom’s diversification and growth story,” he said.
Saudi Arabia is doubling down on fast-growing sectors such as artificial intelligence, naming it one of its new growth areas, with Al Failh saying the kingdom will be a “key investor” in developing AI applications and large language models. Saudi Arabia would also build data centers “at a scale and at a competitive cost not achieved anywhere else.”
“AI has emerged [in] the last three, four years, and it’s definitely going to define how the future economy of every nation. Those who invest will lead, and those who lag behind, unfortunately, will lose,” he pointed out.
On Monday, AI chip company Groq’s CEO, Jonathan Ross, told CNBC that for AI infrastructure thanks to its energy surplus. The country could see more than $135 billion in gains by 2030 thanks to AI, according to PwC.
Saudi Arabia’s quarterly budget performance report revealed that total government revenue for the first half of 2025 came in at 565.21 billion Saudi riyals ($150.73 billion), with oil making up 53.4% of the country’s overall revenue, down from 67.97% in the same period in 2019.
In 2024, the country reported a 1.3% rise in full-year GDP, mainly driven by a 4.3% increase in non-oil segments. Oil activity, on the other hand, fell 4.5% year on year.
The country’s sovereign wealth fund — the Public Investment Fund — has acquired stakes in tech giants, video game publishers and football clubs as it uses oil revenues to diversify into other sectors.
PIF has acquired stakes in video-game heavyweight Electronic Arts, establishing the SoftBank Vision Fund with Masayoshi Son’s SoftBank Group Corp in 2017, and a takeover of English Premier League club Newcastle United in 2021.
When asked if declining oil prices were piling pressure on Saudi Arabia’s economy and government revenue, Al Falih said that the country was not scaling back budgets and there were no cuts to public spending.
Oil prices have fallen in 2025, with Brent crude spot prices down 13.4% so far this year, according to FactSet. Saudi Arabia’s oil revenue slid 24% in the first half of 2025 from a year earlier.
The government will continue to address all activities that require government spending, Al Falih said, noting that the PIF has grown sixfold since its creation and that the country was approaching nearly $1 trillion in capital deployed across sectors of strategic interest.
Tourism has also been a key growth area for Saudi Arabia. Ahmed Al-Khateeb, the country’s tourism minister, told CNBC that the sector’s share in GDP had grown to 5% in 2024 from 3% in 2019.
“We are [opening] resorts, new airlines, new airports, and the numbers are growing, and we are focusing on countries and visitors that are coming from outside to experience our great culture,” Al-Khateeb highlighted.
The tourism minister also expressed confidence that the sector could contribute 10% of GDP by 2030, aiming to raise it to 20% eventually.
“This 20% will help Saudi Arabia to diversify the economy and make it more sustainable,” he added.
The Australian biotech company CSL has been delivered a “second strike” by shareholders over its executive pay plans, but has survived a push to spill its board.
Amid frustration over its depressed share price, the blood plasma therapy firm – a former commonwealth entity – saw more than 40% of votes cast against its executive pay plans at its annual general meeting in Melbourne on Tuesday.
The result was well above the 25% threshold required to trigger a “strike”, the company’s second in a row.
Despite hitting the two-strikes trigger – which opened the door for a board spill resolution – shareholders voted overwhelmingly against removing the board.
“We passed that hurdle,” said the CSL chair, Brian McNamee, in reaction to the spill vote.
The two-strikes rule is a federal government initiative, which began in 2011, designed to hold companies to account over excessive pay rates.
The shareholder unrest is linked to a perceived mismatch between the company’s performance and its high pay rates, with its shares down more than 35% this year. This includes a 15% sell-down on Tuesday after CSL reported an expected fall in US vaccination rates.
Guardian Australia reported earlier this month that CSL was among several major Australian companies that regularly spend more on bonuses for their chief executives than they pay in company tax in Australia.
The vaccine maker has been grappling with a decline in influenza vaccination rates in the US, which remain below pre-pandemic levels.
In the current flu season, CSL expects US vaccination rates to decline by 12% for the overall population, and by 14% for people over 65 years old, according to Morningstar.
McNamee said it was “remarkable” that flu vaccine rates were falling in the US after such a severe season last year.
“Remarkable, but it’s our reality,” McNamee said.
There has also been lingering shareholder resentment against CSL over the high price tag it paid for the Swiss iron deficiency group Vifor in 2022.
While CSL’s performance has wavered, the biotech continues to pay some of the highest executive rates in corporate Australia.
In its last 12-month reporting period, CSL’s chief executive, Paul McKenzie, earned $US6.06m ($9.2m). His predecessor, Paul Perreault, once earned more than $US45m in a single year due to various incentive schemes.
The company has consistently defended its pay rates, arguing that while it is headquartered in Australia, it must attract executives in a competitive global biotechnology market.
The dollar was weaker on Tuesday ahead of a slate of central bank meetings that will likely see a rate cut in the U.S. and as investors kept a wary eye on President Donald Trump’s Asia tour, hoping for a trade deal with China.
Nurphoto | Nurphoto | Getty Images
The dollar was weaker on Tuesday ahead of a slate of central bank meetings that will likely see a rate cut in the U.S. and as investors kept a wary eye on President Donald Trump’s Asia tour, hoping for a trade deal with China.
While early signs of easing trade tensions between the world’s top two economies led to a risk rally on Monday, with the dollar slipping against rivals, investors are apprehensive any real Sino-U.S. deal may offer far less to celebrate.
The spotlight will be on the meeting between Trump and Chinese President Xi Jinping in South Korea on Thursday. “I’ve got a lot of respect for President Xi and I think we’re going to come away with a deal,” Trump told reporters on Air Force One before landing in the Japanese capital, Tokyo.
Chinese officials have so far been circumspect about trade talks with U.S. counterparts and have said little on the potential outcome.
The anticipation has left currency markets fairly muted so far this week. The euro hit a one-week high of $1.1655 in early trading on Tuesday, while sterling last bought $1.3344.
The dollar index, which measures the U.S. currency against six other units, was steady at 98.786 in early Asian hours, having eased 0.15% in the previous session.
“I don’t think financial markets have high expectations that the Trump-Xi meeting will lead to a comprehensive trade deal,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.
Kong, though, said that signs that the two countries have made progress on issues and the prospect of the U.S. lowering tariffs on China are enough to lift sentiment and risk assets.
Fed meeting in focus
With a 25-basis-point rate cut from the Federal Reserve long priced in, markets will closely watch for any signs that the central bank may be preparing to wind down its quantitative tightening program.
Focus will also be on whether the central bank and Fed Chair Jerome Powell provide clarity on further rate cuts as the U.S. government shutdown continues, leaving policymakers without economic data. Traders are pricing in another cut in December.
“We do not expect formal guidance about the December meeting, but if Chair Powell is asked, he will likely be comfortable referencing the September dots, which imply a third cut in December,” said David Mericle, chief U.S. economist at Goldman Sachs. The Fed cut rates last month by 25 bps.
“A cut in December is likely because the labour market data, which will be affected by DOGE deferred resignations and the impact of the shutdown on data collection, are unlikely to send a convincing all-clear signal by then.”
The yen was stronger at 152.42 per U.S. dollar ahead of the Bank of Japan meeting later this week where the central bank is expected to stand pat on rates but the focus will be on whether they provide clues on when the next hike will come.
Attention will be on a meeting on Tuesday between Trump and Japan’s new Prime Minister Sanae Takaichi, where the two leaders will discuss trade issues.
Over in Europe, the European Central Bank is all but certain to keep rates on hold again on Thursday as traders waver on whether it will resume easing next year.
The Australian dollar, often seen as a proxy for risk appetite, was 0.11% firmer at $0.6563, a two-week high. The New Zealand dollar inched higher to $0.5778.
“There seems little in the global macro landscape that appears capable of derailing the current melt-up,” said Chris Weston, head of research at Pepperstone.
“With the ongoing government shutdown limiting the risk that would have come from the tier 1 economic data and when Fed rate cuts align with a still-resilient economy and a market skewed towards selling volatility, the outcome has simply been to buy risk.”
The initial positive sentiment around US-China trade talks faded as the oil market progressed through yesterday’s trading session, with ICE Brent settling almost 0.5% lower. Meanwhile, the market continues to digest the impact of US sanctions on Russian oil flows on Rosneft and Lukoil. And for now, a comfortable supply outlook continues to support the market.
However, one part of the oil market that continues to see strength is middle distillates. The ICE gasoil crack rallied above US$31/bbl, after trading around US$23/bbl mid-month. Meanwhile, the ICE gasoil Nov/Dec timespread surged to almost $20/t backwardation yesterday, though it’s given back some of those gains in early morning trading today.
The latest sanctions on Russia threaten diesel flows, as Russia exports around 1m b/d of diesel. So clearly, a significant amount of supply is at risk. Furthermore, there is also the risk that Indian refiners reduce run rates if they stop buying Russian oil. This would lead to lower middle distillate export volumes from India. In addition, the Ukrainian president has said that Ukraine will increase the scale of attacks on Russian refineries, posing further supply risks to the middle distillate market. There have been concerns about tightness in the middle distillate market for several months now, and the potential impact of these sanctions will do little to ease them.
Tokyo, October 28, 2025 – Mitsubishi Heavy Industries Machinery Systems (MHI-MS), a part of Mitsubishi Heavy Industries (MHI) Group, will exhibit at the “Japan Mobility Show 2025″(Note1) held at Tokyo Big Sight (Koto-ku, Tokyo) from October 30 to November 9. At East Hall 7, MHI-MS will present its autonomous parking robot, merging support system, and adverse weather automated-driving research environment demonstrating how these technologies and applications will help create a more comfortable and safer ‘mobility society’ in the near future.
■ Autonomous Parking Robot
This robot autonomously transports and parks vehicles on behalf of people. It is designed for use in finished vehicle automated transport(Note2) and automated valet parking(Note3).
Finished vehicle automated transport significantly improves working conditions for personnel engaged in vehicle transport, even in harsh environments such as severe weather or extreme heat. It also addresses logistics industry demands, including digital transformation (DX) and decarbonization.
Automated valet parking enables the robot to find and park vehicles in vacant spaces, effectively turning distant, underutilized parking spots into “close” ones. This reduces driver distraction caused by searching for parking spaces, thereby preventing accidents related to inattention. Moreover, by reducing vehicle circulation within parking facilities, it helps reduce CO2 emissions, contributing to a society that is good for both people and the environment.
At the venue, visitors will have the opportunity to experience the future of mobility firsthand with the first public display of the actual autonomous parking robot.
Autonomous Parking Robot
■ Merging Support System
This system supports safe and smooth merging onto main highways, one of the most challenging scenarios in autonomous vehicle demonstration tests. The mechanism will be introduced through video presentations at the show.
Merging Support System (Vehicle Detection Sensor)
■ Adverse Weather Automated-driving Research Environment
To ensure a safe and secure mobility society, this facility recreates harsh natural environments indoors, including rain, fog, snow, and glare, and combines these with various driving scenarios with high precision and repeatability. It allows efficient evaluation of the safety and reliability of advanced driver assistance systems and highly automated vehicles under any weather conditions, accelerating the social implementation of autonomous driving. The venue will feature videos of testing operations and exhibits explaining the facility.
Adverse Weather Automated-driving Research Environment
MHI-MS and the Mitsubishi Heavy Industries Group leverage their expertise in traffic system development, plant construction, and manufacturing of diverse machinery to support efficient development and verification of automated mobility. This is achieved through advanced monitoring and communication technologies, sophisticated environmental control, digital twin technologies, and mechatronics, all contributing to shaping the future of mobility.
1 See the following website regarding the Japan Mobility Show 2025. https://www.japan-mobility-show.com/en/
2 Finished vehicle automated transport: Systems that autonomously move finished vehicles within automobile factories, dealerships, inspection centers, and motor pools. They operate 24/7, addressing driver shortages while ensuring safe and cost-effective transport.
3 Automated valet parking: After the driver stops at a designated boarding/disembarking area near the destination, the vehicle transport robot moves the vehicle to a vacant parking space. When retrieving the vehicle, the robot returns it to the designated area at the pre-specified time via a smartphone app. This eliminates the inconvenience of searching for parking and reduces the risk of door dings and collisions with adjacent vehicles.
(Bloomberg) — The record-setting advance in global equities took a breather in Asian trading, as investors braced for a flurry of earnings from megacap technology companies and policy announcements from major central banks this week.
MSCI’s Asia Pacific gauge dipped 0.2% as indexes in Japan and South Korea retreated from their all-time highs. An index in Shanghai broke above the psychological barrier of 4,000 for the first time in a decade. The moves came after US indexes had closed at all-time highs as Chinese and US trade negotiators lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week.
Easing trade tensions have helped fuel a stock rally, while US companies have so far emerged largely unscathed by tariffs, protecting margins through price increases and cost cuts. That optimism faces a reality check this week as investors look to the Federal Reserve meeting for clues on the path of rate cuts, while major technology firms including Amazon.com Inc. and Microsoft Corp. reveal whether earnings momentum can be sustained.
“With the Fed on track to cut rates, extending the run would appear to hinge on this week’s lineup of high-profile earnings releases,” said Chris Larkin at E*Trade from Morgan Stanley.
In other corners of the market, the yuan climbed to its strongest level in nearly a year, amid optimism over a potential China-US trade deal. The yen also gained while a gauge of the dollar edged lower for a second day. Treasuries were little changed. Gold held near $4,000 an ounce as progress in trade talks sapped demand for haven assets.
Copper — a bellwether for global growth — advanced and traded roughly $60 shy of a record set last year as investors assessed the cooling of trade tensions between the US and China.
Technology stocks were in focus after Amazon.com planned to cut as many as 30,000 jobs, Reuters reported. Earlier, Qualcomm Inc. shares rose to their highest price in 15 months after unveiling chips and computers for the lucrative AI data center market, aiming to challenge Nvidia Corp. in the fastest-growing part of the industry.
On Wednesday and Thursday, five firms that account for about a quarter of the US benchmark — Microsoft Corp., Alphabet Inc., Meta Platforms Inc., Amazon.com and Apple Inc. — will report results. A gauge of the “Magnificent Seven” megacaps jumped 2.6%.
On trade, Trump told reporters on Monday that “I really feel good” about a deal with China, after officials unveiled a slew of agreements to ease tensions.
While markets cheered the latest developments, some analysts cautioned the deal now teed up for Trump and Xi to sign in South Korea ignored thorny issues.
Fundamental fights over national security appeared untouched, they said, along with Trump’s stated core mission of rebalancing trade. Making that harder, Chinese investment into America remains heavily restricted.
“While these developments have lifted market spirits, analysts remain skeptical that the underlying issues — such as national security and tech competition — will be fully resolved,” said Fawad Razaqzada at City Index and Forex.com. “Nevertheless, traders have embraced the risk-on mood.”
What Bloomberg strategists say…
USD/JPY is slipping on Tuesday amid a combination of President Trump’s arrival in Japan, lower Treasury yields and supportive chatter from Japanese officials. Yet, what FX traders really want to see is more than two dissenters at this week’s Bank of Japan meeting to turn aggressively bullish on the yen.
— Mark Cranfield, Markets Live strategist. Click here for the full analysis.
Meanwhile, Trump hailed the US’s alliance with Japan, reaffirming ties with a longstanding partner and praising new Prime Minister Sanae Takaichi on her plans to ratchet up defense spending as the pair met in Tokyo. Trump and Takaichi signed a framework on critical minerals.
Takaichi is navigating implementation of a trade deal brokered under her predecessor that includes a nebulous pledge for Japan to fund $550 billion in US projects.
Corporate News:
Domino’s Pizza Enterprises Ltd. shares soared after the Australian Financial Review reported Bain Capital is considering buying the fast-food chain in a deal worth as much as A$4 billion ($2.6 billion). Nidec Corp. shares tumbled as much as their daily limit of 19% on Tuesday as the company was set to be removed from the Nikkei 225 Stock Average and was flagged for special oversight by the Tokyo Stock Exchange. CSL Ltd. plunged to the lowest in almost seven years after Australia’s biggest drugmaker postponed plans to spin off its vaccines business, as falling US flu immunizations deepen concern over a slowdown in its Seqirus unit. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 12:01 p.m. Tokyo time Japan’s Topix fell 0.5% Australia’s S&P/ASX 200 fell 0.5% Hong Kong’s Hang Seng fell 0.2% The Shanghai Composite was little changed Euro Stoxx 50 futures fell 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1657 The Japanese yen rose 0.3% to 152.41 per dollar The offshore yuan rose 0.1% to 7.1016 per dollar Cryptocurrencies
Bitcoin fell 0.4% to $113,968.33 Ether fell 0.8% to $4,094.96 Bonds
The yield on 10-year Treasuries was little changed at 3.98% Japan’s 10-year yield declined 1.5 basis points to 1.650% Australia’s 10-year yield was little changed at 4.17% Commodities
West Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
