Weekend News Roundup - Newsquawk Asia-Pac Market Open

US President Trump said there was a very good meeting with China on Saturday and many things were discussed and much agreed to, while he stated a total reset was negotiated in a friendly but constructive manner. Trump also said they want to see for the good of both China and the US, an opening up of China to American business, as well as noted that great progress was made. Furthermore, Trump posted on Truth that his next TRUTH will be one of the most important and impactful he has ever issued.
Chinese Vice Premier He Lifeng said trade talks were constructive and they made substantive progress, while both sides reached an important consensus and agreed to establish a China-US trade consultation mechanism with a joint statement to be issued on May 12th. Furthermore, He said the atmosphere was candid, in-depth and constructive, as well as noted that the nature of relations is mutual win-win, and they are going to provide more certainty and stability in the world economy.
Hamas said it will release the last US hostage in Gaza as part of efforts to reach a Gaza ceasefire and allow humanitarian aid.
The fourth round of Iran-US nuclear talks was conducted in Oman which Iran’s Foreign Minister Araqchi said were more serious compared to previous rounds and talks are moving forward.
Ukraine and European leaders said they agreed to an unconditional 30-day ceasefire on sea, land and air starting on May 12th and peace negotiations will start in that period if there is a ceasefire, while Ukrainian President Zelensky said he will meet with Russian President Putin on Thursday in Turkey.
Looking ahead, highlights include Japanese Current Account, Bank Lending & Eco Watchers Survey, Holiday Closures in Singapore, Indonesia & Thailand.

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LOOKING AHEAD

Highlights include Japanese Current Account, Bank Lending & Eco Watchers Survey, Holiday Closures in Singapore, Indonesia & Thailand.
Click for the Newsquawk Week Ahead.

US TRADE

US stocks were little changed as markets awaited US-China trade talks over the weekend with price action choppy in both stocks and Treasuries chopped after US President Trump floated the idea of a reduction in the China tariff to 80% from 145% but said it's up to the US Treasury Secretary Bessent, while the upside at the US cash open was short-lived qne gains pared in equities with trading largely sideways for the remainder of the day.
SPX -0.07% at 5,660, NDX -0.01% at 20,061, DJI -0.29% at -0.29% at 41,249, RUT -0.16% at 2,023.
Click here for a detailed summary.

TARIFFS/TRADE

US President Trump said there was a very good meeting with China on Saturday and many things were discussed and much agreed to, while he stated a total reset was negotiated in a friendly but constructive manner. Trump also said they want to see for the good of both China and the US, an opening up of China to American business, as well as noted that great progress was made.
USTR Greer said differences are not as great as previously thought, and Treasury Secretary Bessent said he looks forward to sharing details on Monday morning.
Chinese Vice Premier He Lifeng said trade talks were constructive and they made substantive progress, while both sides reached an important consensus and agreed to establish a China-US trade consultation mechanism with a joint statement to be issued on May 12th. Furthermore, He said the atmosphere was candid, in-depth and constructive, as well as noted that the nature of relations is mutual win-win, and they are going to provide more certainty and stability in the world economy.
Chinese Vice Commerce Minister Li Chenggang said any deal to be reached will be in China’s development interest and that they reached an important consensus with the two sides to have regular contact, while Li added that they are not in a position to release more substance on what they agreed on and declined to answer when asked about the timing of the statement but said it will be good news for the world.
US President Trump said he will increase trade substantially with both India and Pakistan, while he said he will work with both to see if a solution can be reached concerning Kashmir.
US President Trump’s administration opened a Section 232 investigation on whether imports of aircraft, engines and components are a threat to national security, while the Commerce Department is also investigating the impact of imported medium-duty and heavy-duty trucks on national security.
White House Economic Adviser Hassett said the Chinese are ‘very, very eager’ to engage in trade talks and rebalance trade relations with the US, while he added that more trade deals could be coming as soon as this week. Furthermore, he said Commerce Secretary Lutnick briefed him about 24 deals that Lutnick and USTR Greer are working on, according to Fox News Sunday Morning Futures.

NOTABLE HEADLINES

US President Trump posted on Truth Social “IN JUST THREE MONTHS, TRILLIONS OF DOLLARS (and therefore, record numbers of JOBS!) HAVE BEEN POURING INTO THE USA. THIS IS BECAUSE OF MY TARIFF POLICY, and our great November 5th Election WIN!”, while he also posted that his next TRUTH will be one of the most important and impactful he has ever issued.
Fed’s Cook (voter) said a less productive economy could need higher interest rates to contain inflation and that tariff policies could lower productivity, limit potential output and increase inflationary pressure, while Cook said less investment and higher costs could lower the economy’s potential output.
Fed’s Musalem (2025 voter) said economic activity has moderated and sentiment has declined, while he added that they should not commit to rate cuts until the impact of tariffs on inflation becomes clear and rate cuts are still possible if increased inflation proves short-lived, expectations remain anchored, and the economy becomes meaningfully weaker.
Fed’s Hammack (2026 voter) said on Friday that it is reasonable to take a wait and see approach and she would rather be slow and move in the right direction than be fast and wrong, while she said they will be ready to move on rates when there is clear and convincing evidence. Furthermore, she would like to be pre-emptive and action-oriented when possible, but noted it is hard given uncertainty over tariffs and other policies.
US Treasury Secretary Bessent urged Congress to raise the debt limit by mid-July and expects the debt limit to be hit in August.

COMMODITIES

Saudi Aramco reported Q1 (USD) profits fell 4.6% Y/Y to 26bln, and rev. rose to 108.1bln (prev. 107.2bln Y/Y), while it stated that global trade dynamics affected energy markets in Q1 with economic uncertainty impacting oil prices.

GEOPOLITICAL

MIDDLE EAST

Senior Palestinian official said Hamas was in talks with the US administration regarding a Gaza ceasefire and aid. It was later reported that Hamas said it will release the last US hostage in Gaza as part of efforts to reach a Gaza ceasefire and allow humanitarian aid.
Israeli PM Netanyahu’s office said the US informed Israel of Hamas’s intention to release Edan Alexander without any compensation or conditions and the US informed Israel that the move is expected to lead to negotiations for the release of further hostages, while Israel’s policy is that negotiations will be conducted under fire with a continued commitment to achieving all war objectives.
Israel’s military issued evacuation warnings to people present in three Yemeni ports of Ras Isa, Hodeidah and Salif, while the Houthi interior minister said that Israel conducted an attack on Hodeidah.
The fourth round of Iran-US nuclear talks was conducted in Oman which Iran’s Foreign Minister Araqchi said were more serious compared to previous rounds and talks are moving forward, while he stated that “now both sides have a better understanding from each others’ views” but added that Tehran’s uranium enrichment program is non-negotiable.
Iran’s Foreign Minister Araqchi said Tehran continues nuclear talks with the US in good faith and Iran will not back down from and of its rights if the US goal of talks is to deprive Iran of its nuclear rights, while he added a nuclear agreement is possible if the US aim is non-proliferation of nuclear weapons and Oman’s Foreign Minister noted that the next round of talks will take place after both sides have consulted with their respective capitals.
US envoy Witkoff held direct and indirect talks with Iran in Oman and an agreement was reached to move forward with talks to continue working through technical elements, according to a senior administration official.

RUSSIA-UKRAINE

Ukraine and European leaders said they agreed to an unconditional 30-day ceasefire on sea, land and air starting on May 12th and peace negotiations will start in that period if there is a ceasefire, while they said if Russia fails to comply, they will respond with massive sanctions and increased military aid.
Ukrainian President Zelensky said it is a positive sign that the Russians have finally begun to consider ending the war and the very first step in truly ending the war is a ceasefire. It was separately reported that Zelensky said Ukraine is ready to meet and he expects Russia to confirm a ceasefire beginning May 12th. Furthermore, Zelensky said Ukraine awaits a full ceasefire starting on Monday to provide a necessary basis for diplomacy and he will meet with Russian President Putin on Thursday in Turkey, as well as noted that the ceasefire beginning on Monday remains on the table and that Ukraine is awaiting a response from Russia but also noted that Ukraine will be ready to respond symmetrically if Russia violates the ceasefire.
Ukraine’s Foreign Minister said President Zelensky and visiting European leaders had a phone call with US President Trump on Saturday, which was constructive and they discussed peace efforts.
Russian President Putin offered Ukraine to resume direct negotiations and talks will begin on May 15th in Istanbul with no pre-conditions. It was also reported that Kremlin aide Ushakov said proposed peace talks in Turkey will take into account the situation on the ground and 2022 negotiations.
Russian President Putin held a call with Turkish President Erdogan and they discussed in detail an initiative to resume direct Russian-Ukrainian talks in Istanbul, while Turkish President Erdogan told French President Macron in a phone call that Turkey is ready to host negotiations for a ceasefire and permanent peace between Russia and Ukraine.
Russian Defence Ministry said Russian troops continued the special military operation after the Victory Day ceasefire ended and Ukrainian troops made five attempts to break through the border in Kursk and Belgorod regions during the ceasefire. It was also reported that Russia launched an air attack on Kyiv and that a Ukrainian missile attack injured three in the town of Rylsk in Russia’s Kursk region.
US President Trump posted on Truth that Ukraine should agree to meet with Russian President Putin on Thursday to negotiate, while he stated that he was starting to doubt that Ukraine would make a deal with Russian President Putin.
Polish PM Tusk said the Russian secret service was behind the fire that almost completely destroyed a Warsaw shopping centre in May 2024.

INDIA-PAKISTAN

India’s Foreign Ministry said Pakistan’s Director General of military operations called on Saturday and it was agreed that both sides would stop firing, while Pakistan’s Foreign Minister said this is not partial and it is a full-fledged ceasefire understanding between the two countries.
India’s Foreign Secretary said Pakistan violated the ceasefire and that Indian armed forces responded, while the official said they call on Pakistan to halt the violence and India’s armed forces have been given the instruction to deal with violations along the border.
Pakistan’s military said dozens of its armed drones hovered over major Indian cities including Delhi and 26 military targets and facilities were hit in India during operations carried out on Saturday.
Pakistan’s Foreign Minister Dar spoke with Chinese Foreign Minister Wang and China reaffirmed it will continue to stand by Pakistan in upholding its sovereignty and territorial integrity.

ASIA-PAC

DATA RECAP

Chinese CPI MM (Apr) 0.1% vs. Exp. 0.0% (Prev. -0.4%)
Chinese CPI YY (Apr) -0.1% vs. Exp. -0.1% (Prev. -0.1%)
Chinese PPI YY (Apr) -2.7% vs. Exp. -2.8% (Prev. -2.5%)

EU/UK