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May 13, 2025

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US-China trade truce lifts China’s economic outlook and equities: these Chinese stocks could benefit

4 Mins Read

Asian equities climbed sharply on Tuesday, extending a global rally after the United States and China agreed to pause their trade war for at least 90 days.

Japan’s Nikkei jumped 2% to reach its highest level since February 25, while Taiwan’s tech-heavy index also gained 2 per cent.

Chinese shares moved higher in early trading, and the MSCI’s broadest index of Asia-Pacific shares outside Japan touched a six-month peak.

On Wall Street, the S&P 500 advanced over 3 per cent and the Nasdaq surged 4.3 per cent, driven by gains in technology and consumer stocks.

The rally followed news that the US would reduce its baseline tariff rate on most Chinese imports to 30% from 145%.

China responded by slashing its own tariffs to 10% from 125%.

A separate White House order also cut the “de minimis” tariff on shipments from China to 54% from 120%, effective May 14, while maintaining a $100 flat fee.

Firms revise outlook for China’s economy

The trade reprieve has prompted several institutions to revise their outlooks for China’s economy.

UBS said in a note that China’s GDP growth in 2025 could reach between 3.7% and 4%, up from a prior estimate of 3.4%, citing a “smaller shock” to trade-related activity.

Morgan Stanley has also upgraded its near-term GDP forecasts for China.

The bank expects second-quarter growth to exceed its current 4.5% projection, driven by front-loaded exports as companies look to benefit from the reduced tariffs.

Third-quarter growth could also display temporary resilience, now expected to come in above 4%.

Nomura has upgraded Chinese equities to “tactical Overweight” and shifted some of its allocation from India into China.

Citi, meanwhile, lifted its target for the Hang Seng Index to 25,000 by year-end, with a forecast of 26,000 by mid-2026.

Baidu, Tencent, TSMC among technology, consumer and internet stocks in focus

The sectors expected to benefit the most from the trade truce include technology, consumer, and communication services, according to several analysts.

Citi strategist Pierre Lau, while remaining cautious on exporters, also prefers domestic-facing sectors, especially consumer and technology.

Morningstar’s Kai Wang said the current recovery may come faster than the last trade war cycle, which saw markets bounce back within a month of tariff relief.

Wang cited Baidu, Tencent and NetEase as attractive picks in China’s communication services sector.

Baidu and Tencent stand out for their investment in artificial intelligence, while NetEase offers exposure to the growing domestic gaming market.

He also highlighted TSMC as a key beneficiary due to its dominant position in advanced semiconductor manufacturing.

Citi Research flagged sectors highly sensitive to tariff changes, including communications infrastructure, tech hardware, and solar equipment.

Companies such as Innolight, JCET, Eoptolink, TFC Optical and JA Solar generate a large portion of their revenues from the US, making them likely beneficiaries of easing trade friction.

Citi is overweight on internet, technology, and consumer sectors, with top picks including Tencent, BYD, AIA, Huaneng Power, Atour and Anta.

The bank also prefers Hong Kong-listed H-shares over mainland A-shares, expecting US rate cuts to support the Hong Kong dollar.

Citi also upgraded PDD Holdings to “Buy,” viewing the trade truce as a boost for its Temu cross-border platform.

The firm expects improved profits in the second quarter as sellers benefit from preloaded inventory and better pricing leverage.

ETFs offer exposure, with caveats

Investors seeking broader exposure to Chinese markets without taking single-stock risk may consider exchange-traded funds such as the KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI), and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR).

However, analysts caution that these funds are prone to sharp price swings, reflecting the volatile nature of Chinese equities.

William Ma, chief investment officer of GROW Investment Group, said the rebound in Chinese stocks could mark the start of a sustained re-rating.

“Policy easing and targeted consumption support from Beijing could deliver an additional boost,” he said, adding that valuations remain undemanding.

Maybank’s CIO Eddy Loh echoed the view, highlighting opportunities in communication services and consumer discretionary stocks as markets reposition for a post-tariff landscape.

The post US-China trade truce lifts China’s economic outlook and equities: these Chinese stocks could benefit appeared first on Invezz

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In World news

Rae Copper Project delivers further high-grade mineralisation with 63m @ 2.23% Copper

3 Mins Read

White Cliff Minerals Limited (“WCN” or the “Company”) (ASX: WCN; OTCQB: WCMLF) is pleased to announce further assay results from the recent reverse circulation drilling campaign at the Company’s 100% owned Rae Copper Project in Nunavut, Canada.

  • Further assays from Danvers confirm a shallow, high grade copper system that remains open at depth and along strike
  • Drilling continues to prove, previously unknown and untested, extensions to high grade mineralisation
  • Highlights from DAN25002:
    • 63m @ 2.23% Cu & 7.1g/t silver (Ag) from 9.14m, including a high-grade intercept of 15m @ 5% Cu & 16.9g/t Ag from 18.29m
  • DAN25004 returned two significant copper intervals:
    • 38m @ 1% Cu & 1.89g/t Ag from 7.62m, and
    • 72m @ 1.08% Cu & 4.22g/t Ag from 62.48m, including a high-grade intercept of 14m @ 2.32% Cu from 106.68m
  • Pre collar drilling at Hulk is complete, ready for an upcoming diamond drilling campaign
  • The Company is advancing discussions with its contracting partners to undertake targeted airborne geophysical surveys at Danvers across the 9.1km target fault zone and to also utilise the proven down hole electromagnetic survey across the broader Rae project which will support and help target these future campaigns
  • Further assays to come pending release from the laboratory

“Assays from Rae continue to exceed expectations: 175m @ 2.5% Cu, 58m @ 3.08% Cu, 52m @ 1.16% Cu and now further significant intercepts of 63m @ 2.23% Cu and 72m @ 1.08%. These high-grade intercepts from surface are rare in the exploration world as explorers over recent times have had to go deeper and deeper to identify additional copper resources.

Being the first mover into this highly prospective location, after more than a decade of inactivity due to political constraints – securing the licences organically and now having undertaken our first drill program, positions us well both for future work programmes and facilitate further discoveries.

We are not surprised by the increased attention into the broader region by many players. Infrastructure enhancements at Yellowknife and increased activity along the north-west passage provide far easier access than in previous decades when the last serious exploration was undertaken.

More recently we have seen increased state and federal conversations around road and port infrastructure development in this area to support regional development. Logistics that will positively impact the Rae Project. Given the project area is less than 80km by road to the deep-water port of Kugluktuk, these results will surely focus the spotlight on the development opportunities and benefits to the local and regional stakeholders.

The Rae Project area has the potential to help meet the global production void through proper systematic assessment of this underexplored copper landholding and we continue to look forward to updating shareholders with the next round of results as they come to hand over the coming weeks.”

Troy Whittaker – Managing Director

Click here for the full ASX Release

This post appeared first on investingnews.com

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In Business

Fortnite applies to launch on Apple’s App Store after Epic Games court win

2 Mins Read

Epic Games said on Friday that it submitted Fortnite to Apple’s App Store, the month after a judge ruled in favor of the game maker in a contempt ruling.

Fortnite was booted from iPhones and Apple’s App Store in 2020, after Epic Games updated its software to link out to the company’s website and avoid Apple’s commissions. The move drew Apple’s anger, and kicked off a legal battle that has lasted for years.

Last month’s ruling, a victory for Epic Games, said Apple was not allowed to charge a commission on link-outs or dictate if the links look like buttons, paving the way for Fortnite’s return.

Apple could still reject Fortnite’s submission. An Apple representative did not respond to CNBC’s request for comment. Apple is appealing last month’s contempt ruling.

The announcement by Epic Games is the latest salvo in the battle between it and Apple, which has taken place in courts and with regulators around the world since 2020. Epic Games also sued Google, which operates the Play Store for Android phones.

Last month’s ruling has already shifted the economics of app development for iPhones.

Apple takes between 15% and 30% of purchases made using its in-app payment system. Linking to the web avoids those fees. Apple briefly allowed link-outs under its system but would charge a 27% commission, before last month’s ruling.

Developers including Amazon and Spotify have already updated their apps to avoid Apple’s commissions and direct customers to their own websites for payment.

Before last month, Amazon’s Kindle app told users they could not purchase a book in the iPhone app. After a recent update, the app now shows an orange “Get Book” button that links to Amazon’s website.

Fortnite has been available for iPhones in Europe since last year through Epic Games’ store. Third-party app stores are allowed in Europe under the Digital Markets Act. Users have also been able to play Fortnite on iPhones and iPads through cloud gaming services.

This post appeared first on NBC NEWS

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In Politics

Trump targets massive investments in first Middle East trip

5 Mins Read

Former President Donald Trump is embarking this week on a high-stakes tour of the Persian Gulf region, targeting business deals and strategic partnerships with three oil-rich nations: Saudi Arabia, the United Arab Emirates and Qatar.

The trip marks Trump’s first major foreign visit of his new term and comes as nuclear negotiations with Iran drag on and as war continues between Israel and the Palestinian terror organization, Hamas, in the Gaza Strip. While business is the official focus, the backdrop is anything but calm.

White House press secretary Karoline Leavitt described the mission as part of Trump’s broader vision that ‘extremism is defeated [through] commerce and cultural exchanges.’

Under President Joe Biden, U.S. relations with Gulf states cooled, particularly after Biden vowed to make Saudi Crown Prince Mohammed bin Salman a ‘pariah’ over the 2018 killing of journalist Jamal Khashoggi. But Trump has reversed course, embracing a more transactional approach that has warmed ties with regional leaders.

‘The overall goal here is that the United States is reminding our Middle East allies that we’re here to stay,’ said Gregg Roman, executive director of the Middle East Forum. ‘We’re here to promote our joint interests rather than the abandonment policies under the previous administration.’

Big money, big expectations

Saudi Arabia has already pledged $600 billion in U.S. investments, spanning weapons purchases, technology transfers, artificial intelligence and the stock market. Trump has said he believes the Saudis may ultimately commit up to $1 trillion.

While Saudi leaders aim to diversify their economy away from oil, those massive investments still depend on oil revenues, which could be threatened by Trump’s push to lower global energy prices.

In addition to economic deals, Trump and bin Salman are expected to discuss a possible civil nuclear program and expanded defense cooperation. Such agreements were once linked to a potential Abraham Accords-style normalization between Saudi Arabia and Israel.

But Riyadh has made clear it won’t recognize Israel unless Palestinian statehood is on the table, something Israeli Prime Minister Benjamin Netanyahu has staunchly opposed. No stop in Israel is scheduled during Trump’s tour.

‘Israeli normalization in any Saudi-U.S. project is an outdated option,’ said Saudi geopolitical analyst Salman Al-Ansari. ‘The second Trump administration is doubling down on its strategically autonomous Middle East policy.’

In a possible goodwill gesture ahead of the trip, Hamas released Israeli-American hostage Edan Alexander, a move Trump called ‘monumental’ in the push to end the Gaza conflict.

And as the UAE seeks to boost its ties with the U.S. and become a global AI leader by 2030, it’ll need American microchips. The UAE has gone even further than the Saudis, promising $1.4 trillion in U.S. investments over the next decade focused on AI, semiconductors, manufacturing and energy. 

Biden had tightened curbs on AI exports to keep such technologies out of the hands of adversaries at a time when China drew closer to Middle Eastern states, especially the UAE. 

On Thursday, the U.S. announced Trump would rescind the Biden-era restrictions. 

Itinerary: Three days, three power centers

Trump’s whirlwind Gulf visit begins Tuesday in Riyadh, Saudi Arabia, where he’ll headline the U.S.-Saudi Investment Forum alongside Saudi ministers, White House crypto czar David Sacks and other business leaders.

On Wednesday, he’ll attend a Gulf Cooperation Council meeting before flying to Qatar for talks with Emir Tamim bin Hamad Al Thani and a visit to the U.S. military’s Al Udeid Air Base.

Thursday’s final stop is Abu Dhabi, where Trump will meet UAE President Sheikh Mohammed bin Zayed Al Nahyan.

The Qataris are pulling out all the stops to impress: They’ve offered Trump the use of a royal Boeing 747-8, typically reserved for the Qatari royal family, to serve as Air Force One.

Since being named a major non-NATO ally by Biden in 2022, Qatar has deepened its ties with the U.S., hosting American troops and mediating sensitive negotiations, including ongoing back-channel talks between Israel and Gaza.

Doha also maintains close contact with Syria’s new president, Ahmed al-Sharaa, who ousted Bashar al-Assad and is now seeking sanctions relief and normalized ties with the West.

‘Regional leaders will have an opportunity to address the situation directly with the president,’ said regional expert Jonathan Bass. ‘Trump is the only man that can lead the way.’

Iran watching closely

While a fourth round of Iran nuclear talks in Oman over the weekend failed to produce a breakthrough, Tehran is expected to keep a close eye on Trump’s Gulf meetings.

Iranian Foreign Minister Abbas Araghchi made unannounced visits to both Saudi Arabia and Qatar ahead of Trump’s arrival, likely in hopes of passing messages through those governments to Washington.

But all three of Trump’s host nations, Saudi Arabia, the UAE and Qatar, remain wary of Iran’s ambitions.

‘The region needs to openly address the problem of the IRGC,’ said Bass, referring to Iran’s elite Islamic Revolutionary Guard Corps. ‘The IRGC is trying to undermine every single country in the region.’

This post appeared first on FOX NEWS

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