Singapore, Nov 21 (AP/UNB) — Asian markets fell on Wednesday after a trade dispute between the U.S. and China stalled a weekend meeting, dimming hopes that it could be resolved once their leaders meet.
KEEPING SCORE: Japan’s benchmark Nikkei 225 dropped 0.6 percent to 21,447.53 and the Kospi in South Korea was down 0.9 percent at 2,064.34. Hong Kong’s Hang Seng index slipped 0.4 percent to 25,745.55. The Shanghai Composite lost 0.3 percent to 2,638.77. Australia’s S&P/ASX 200 fell 0.6 percent to 5,636.50. Shares fell in Taiwan, Indonesia and the Philippines but rose in Singapore.
WALL STREET: Broad losses by the world’s largest technology companies pulled U.S. indexes lower on Tuesday and into the red for the year. They were reacting to new national security regulations proposed by the Trump administration, which could limit exports of high-tech products in fields like quantum computing, machine learning and artificial intelligence. Apple plunged 4.8 percent, Microsoft lost 2.8 percent and IBM gave up 2.6 percent. The S&P 500 index fell 1.8 percent to 2,641.89 and the Dow Jones Industrial Average tumbled 2.2 percent to 24,465.64. The tech-heavy Nasdaq composite shed 1.7 percent to 6,908.82. The Russell 2000 index of smaller-company stocks dropped 1.8 percent to 1,469.01.
US-CHINA TENSIONS: Over the weekend, a meeting of 21 nations at the Asia-Pacific Economic Cooperation summit in Papua New Guinea ended without a final communique. That put the spotlight on a trade dispute between China and the U.S. that shows no signs of abating. Draft versions of the communique showed that the U.S. wanted strong language against what it says are unfair Chinese trade practices, while China wanted clear opposition to protectionism and unilateralism. U.S. President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet at Group of 20 summit later this month, but it is unclear if the talks will spur a reduction in tensions.
ANALYST’S TAKE: Attempts by the U.S. to condemn certain trade practices were a “surprise” as many expected that “the heat may have come out of the issue” after the midterm elections, Michael McCarthy, chief market strategist at CMC Markets in Sydney, said in an interview. “The simultaneous pressure on industrial commodities and shares points to an escalation of global growth concerns,” he added.
ENERGY: Oil prices rebounded Wednesday after plunging on worries of rising supplies and softening global growth. Benchmark U.S. crude added 65 cents to $54.08. The contract dropped $3.77 to close at $53.43 in New York, its lowest price in more than a year. Brent crude, the international standard, rose 71 cents to $63.24. It fell $4.26 to $62.53 in London.
CURRENCIES: The dollar rose to 112.91 yen from 112.76 yen late Tuesday. The euro strengthened to $1.1372 from $1.1367.
Hanoi, Nov 20 (AP/UNB) — Vietnam and India have agreed to boost their trade while expanding their cooperation in defense and security, among other areas.
Speaking to reporters at a joint press briefing in Vietnam's capital, Hanoi, Indian President Ram Nath Kovind said Tuesday that he believes the bilateral trade volume will reach $15 billion by 2020, up from $12.8 billion last year.
"We agreed to encourage our industry to tap into the growing economic opportunities in our own countries and in the region," Kovind said. "India-Vietnam economic relations are on an upswing."
"We committed to further deepen our defense and security cooperation. I reiterated India's commitment to provide training support for Vietnam's armed forces," he added.
Kovind said he and Vietnamese President Nguyen Phu Trong also reviewed the implementation of an Indian credit line of $100 million to build high-speed patrol vessels for Vietnam's coast guard.
Trong, who is also head of the Communist Party, said the two countries will find ways to boost their modest investment.
Currently, India has 182 investment projects worth $816 million in Vietnam, while Vietnamese businesses have a mere seven projects worth some $6 million in India.
Kovind is on a three-day visit to Vietnam, where he is scheduled to meet with Prime Minister Nguyen Xuan Phuc later Tuesday before departing.
Yokohama, Nov 20 (AP/UNB) — Nissan Chairman Carlos Ghosn, who became one of the auto industry's most powerful executives by engineering a turnaround at the Japanese manufacturer, was arrested Monday and will be fired for allegedly underreporting his income and misusing company funds, the automaker said.
The scandal reverberated across the globe and abruptly threw into question Ghosn's future as leader of the Renault-Nissan-Mitsubishi alliance, which sold 10.6 million cars last year, more than any other manufacturer.
Nissan CEO Hiroto Saikawa said Ghosn was taken into custody after being questioned by prosecutors upon arriving in Japan earlier in the day. Ghosn is of French, Brazilian and Lebanese background and lives in both France and Japan.
Nissan said Ghosn, 64, and another senior executive, Greg Kelly, were accused of offenses involving millions of dollars that were discovered during a monthslong investigation set off by a whistleblower. Kelly was also arrested.
"Beyond being sorry I feel great disappointment, frustration, despair, indignation and resentment," Saikawa said, apologizing for a full seven minutes at the outset of a news conference.
Yokohama-based Nissan Motor said it is cooperating with prosecutors in their investigation.
Saikawa said Nissan's board will vote Thursday on dismissing Ghosn and Kelly, whom he described as the mastermind of the alleged abuses.
"This is an act that cannot be tolerated by the company," he said. "This is serious misconduct."
Saikawa said three major types of misconduct were found: underreporting income to financial authorities, using investment funds for personal gain and illicit use of company expenses.
He said that because of the continuing investigation, he could not disclose many details. But he promised to tighten internal controls, saying the problems may have happened because too much power was concentrated in one person.
"We need to really look back at what happened, take it seriously and take fundamental countermeasures," he said.
Ghosn officially still leads the Renault-Nissan-Mitsubishi alliance as CEO and chairman. But experts said it is unlikely he will be able to stay on there or at Renault, where he is also CEO. Renault said its board will hold an emergency meeting soon.
"The last thing one of the world's biggest automakers needs is the disruption caused by an investigation into the behavior of a man who has towered over the global auto sector," said Michael Hewson, chief market analyst at CMC Markets in London.
The companies in the alliance own parts of each other and share investments in new technologies, among other things. Renault owns 43 percent of Nissan, which owns 15 percent of Renault and 34 percent of Mitsubishi.
Renault SA stock plunged more than 8 percent in France. Japanese markets had already closed when the scandal broke.
Ghosn was at Nissan for 19 years and signed a contract this year that would have run through 2022. His compensation, high by Japanese standards, has been a source of controversy over the years.
According to NHK and the Kyodo News Service, Nissan paid Ghosn nearly 10 billion yen ($89 million) over five years through March 2015, including salary and other income, but he reported receiving only about half that amount.
The allegations are a serious blow at a time when Nissan is still getting over a scandal in which it admitted altering the results of emission and fuel economy tests on vehicles sold in Japan.
Ghosn is credited with helping bring about a remarkable turnaround at Nissan, resuscitating it from near bankruptcy by cutting thousands of jobs and shutting plants. His triumph made him something of a national hero in a country where foreign CEOs of major Japanese companies are relatively rare.
He also looms large in France, where he previously turned Renault around and made it into a global player, notably in electric vehicles. He led the French carmaker through major job cuts and an expensive and contentious bailout, earning the nickname "Le Cost Cutter."
Ghosn became a nemesis of French unions and left-wing politicians, who saw him as a symbol of capitalism's excesses, particularly its rich executive pay packages.
Renault shareholders in 2016 voted against Ghosn's pay package as too generous, but the board ignored the move.
That angered then-President Francois Hollande. Hollande's socialist government imposed limits on executive pay at state-run companies and tried to do the same in the private sector but backed down amid concerns such action would scare away foreign investment.
Ghosn served as Nissan's chief executive from 2001 until last April. He became chief executive of Renault in 2005, leading the two major automakers simultaneously. In 2016, he became Mitsubishi Motors' chairman.
Saikawa said the scandal was a "negative outcome of the long regime of Mr. Ghosn."
Tokyo, Nov 19 (AP/UNB) — Japan recorded a trade deficit in October but a recovery in exports after getting slammed by natural disasters in September, according to government data released Monday.
Exports grew 8.2 percent from the same month the previous year, the Finance Ministry said. In September, exports fell 1.2 percent from the previous year in the first decline for the world's third-largest economy since 2016. Imports in October grew 19.9 percent on-year.
Worries are continuing over trade tensions after President Donald Trump imposed penalty tariffs on billions of dollars' worth of Chinese exports.
Weaker U.S.-China trade generally hurts the export-dependent Japanese economy. Trump has also complained about Japanese auto imports. Bilateral trade talks are expected next year.
Monday's data showed Japan racked up a trade deficit of 449 billion yen ($4 billion).
Japan's imports from the U.S. jumped 34 percent, including imports of food, oil, steel and other metals and machinery, while exports to the U.S. grew nearly 12 percent, mostly in autos, machinery, medical products and rubber.
Cabinet Office data released last week showed a contraction for the Japanese economy, at an annualized rate of 1.2 percent in July-September, as consumer spending, investment and exports slipped.
Natural disasters have hurt Japan recently, including the closure of a major airport in the western Kansai area after a typhoon. A major earthquake that hit the northernmost island of Hokkaido, causing fatal landslides and widespread blackouts, has also weighed on the economy.
Prime Minister Shinzo Abe has been pushing for growth with his "Abenomics" policies based on a deflation-fighting stimulus program of cheap lending.
Papua New Guinea, Nov 17 (AP/UNB) — China's leader Xi Jinping and U.S. Vice President Mike Pence traded barbs in speeches to a summit of world leaders Saturday, outlining competing visions for global leadership.
Pence said there would be no letup in President Donald Trump's policy of combating China's mercantilist trade policy and intellectual property theft that has erupted into a trade war between the two world powers this year.
He harshly criticized China's global infrastructure drive, calling many of the projects low quality and saddling developing countries with loans they can't afford.
Pence also announced the U.S. would be involved in a plan by its ally Australia to jointly develop a naval base in Papua New Guinea, where the summit is being held. China has been intensely wooing Papua New Guinea with aid and loans for infrastructure.
Xi, who spoke before Pence, said countries are facing a choice of cooperation or confrontation as protectionism and unilateralism spreads.
Xi expressed support for the global free trading system that has underpinned his country's rise to world's second-biggest economy after the U.S.
"Mankind has once again reached a crossroads," he said. "Which direction should we choose? Cooperation or confrontation? Openess or closing doors. Win-win progress or a zero sum game?"
Leaders of Pacific Rim countries that make up 60 percent of the world economy are meeting in the capital of Papua New Guinea for an annual Asia-Pacific Economic Cooperation summit.