Key Takeaways
- The United States and Japan have solidified a major agreement to bolster critical minerals and rare earths supply chains, aiming to counter unfair trade practices and ensure product delivery within six months.
- China's 30-year Treasury futures rose 0.6%, reaching their highest point since September 8, while the Philippine currency depreciated 0.5% against the USD to 59.130/USD, marking its lowest value since December 19.
- U.S. tariff revenue in fiscal 2025 more than tripled, surging to an unprecedented $195 billion.
- Paramount (PARA) is slated to cut 1,000 jobs this week, even as the company reportedly plans to keep Warner Bros. largely intact following their merger.
US-Japan Strengthen Critical Minerals and Trade Ties
The United States and Japan have formalized a comprehensive agreement to strengthen critical minerals and rare earths supply chains, a move aimed at enhancing economic security and addressing unfair trade practices. U.S. President Donald Trump and Japan's Prime Minister Sanae Takaichi held extensive trade and security talks in Tokyo, culminating in the signing of this significant framework. President Trump hailed the new arrangement as a "fair deal".
The White House stated that the initiative will promote diversified, liquid, and fair markets for these essential materials through coordinated investment and economic policy. Projects backed by the U.S. and Japan are expected to deliver end products to buyers in the U.S., Japan, and allied countries within six months. This agreement is part of broader trade and critical minerals deals signed by President Trump during his visit to Southeast Asia.
Asian Markets and Currencies Show Mixed Performance
In China, 30-year Treasury futures saw a notable increase of 0.6%, hitting their highest point since September 8. The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.0856, compared to the previous 7.0881. The yuan opened at 7.1070 per dollar, slightly weaker than the last session's close of 7.1067.
Meanwhile, the Philippine currency experienced a downturn, slipping 0.5% to 59.130/USD, marking its lowest level since December 19. Despite this currency depreciation, free trade talks between the Philippines and the European Union are showing significant progress. In Singapore, the SGX climbed 0.7% to 4,469.92 points, reaching its highest level since October 8.
U.S. Trade Policy and Taiwan Relations
The United States saw its tariff revenue more than triple in fiscal 2025, surging to an unprecedented $195 billion. This substantial increase underscores the impact of current U.S. trade policies.
Separately, Taiwan's foreign minister reiterated the strong collaboration with the U.S. on security, trade, and related matters. The minister emphasized that Taiwan has "no fear of U.S. abandoning Taiwan," asserting that Taiwan-U.S. ties remain strong and stable.
Corporate Developments and Oil Outlook
Paramount (PARA) is preparing for significant workforce reductions, with plans to cut 1,000 jobs this week. This comes amidst reports that Paramount intends to keep Warner Bros. largely intact following their merger.
In other corporate news, thousands of Coca-Cola (KO) cans have been recalled due to a metal contamination alert. On the commodities front, OPEC production plans are reportedly weighing on oil prices, despite ongoing hopes for positive developments in U.S.-China trade relations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.