Asian stocks were mixed on Tuesday as investors grappled with the weak economic data from China and waited to see the outcome of a top Communist Party policy meeting in Beijing.
U.S. futures rose while oil prices fell.
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People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person in traditional Japanese "kimono" walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
People walk near an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person in traditional Japanese "kimono" walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
FILE - People pass the New York Stock Exchange July 10, 2024, in New York. World shares began trading mixed on Monday, July 15, 2024, after China reported that its economy expanded at a lower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Peter Morgan, File)
A currency trader walks near the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
FILE - The Fearless Girl statues faces the New York Stock Exchange on July 2, 2024, in New York. Global stocks are mixed on Friday, July 12, 2024, with the Japanese yen losing some of its gains after the latest U.S. update on inflation bolstered Wall Street's belief that relief on interest rates may come as soon as September. (AP Photo/Peter Morgan, File)
A currency trader walks near the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
Currency traders watch computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), center, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
Japan’s benchmark Nikkei 225 rose 0.6% to 41,399.72 after reopening from a holiday.
Hong Kong’s Hang Seng index declined 1.5% to 17,747.65 and the Shanghai Composite index fell 0.4% to 2,963.25.
Markets were still digesting the set of weaker economic data of China released Monday, when the government reported that annual economic growth had fallen from 5.3% in the first quarter to 4.7% in the April to June quarter.
This led some economists to cut their growth forecasts. Goldman Sachs revised its forecast for China’s annual economic growth to 4.9% from a previous estimate of 5.0%. JP Morgan cut their full-year outlook for China’s 2024 GDP growth to 4.7% from an earlier projection of 5.2%.
Further policies were expected to be released during this week’s four-day economic meeting, a closed-door plenary meeting of the ruling Communist Party. It is expected to set strategies and policies for the coming decade, in line with leader Xi Jinping's push to pursue advances in future technologies.
South Korea’s Kospi added 0.3% to 2,869.15 and Australia’s S&P/ASX 200 edged 0.1% lower to 8,011.10.
On Monday, Wall Street’s momentum kept driving it upward.
The S&P 500 rose 0.3% to 5,631.22, finishing just shy of its all-time high set last week. It’s coming off its 10th winning week in the last 12, lifted in large part by expectations that inflation is slowing enough to convince the Federal Reserve to ease interest rates soon.
The Dow Jones Industrial Average climbed 0.5% to 40,211.72 and set its own record, while the Nasdaq composite added 0.4% to 18,472.57 and ended a bit short of its high.
Some of the market’s best performing areas were ones that do best when former President Donald Trump’s chances for election look better. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, leaped 31.4%. Bitcoin rose above $64,000 after Trump, who has painted himself as a crypto-friendly candidate, survived an assassination attempt over the weekend.
Trump could get an immediate bump in his support in polls, as President Ronald Regan did in 1981, according to Isaac Boltanksy, director of policy research at BTIG, and “Trump’s defiance following the attack could be the defining image of this election cycle.”
Yields for longer-term Treasurys also pushed higher than shorter-term ones, and the 10-year Treasury yield climbed to 4.22% from 4.19% late Friday. Something similar happened after last month’s debate between Trump and President Joe Biden, when traders maneuvered in anticipation of a Republican sweep in November that could ultimately mean policies that would raise the U.S. government’s debt.
Stocks of big financial companies, which could benefit from a lighter regulatory touch from a Republican administration, also helped lead the market. JPMorgan Chase climbed 2.5% and was one of the strongest forces pushing the S&P 500 higher.
Investment bank Goldman Sachs rose 2.6% after reporting stronger profit and revenue for the latest quarter than analysts expected. BlackRock, the asset manager behind the iShares exchange-traded funds, slipped 0.6% after topping forecasts for profit but coming up a bit shy for revenue.
For roughly a year, the Fed has been keeping its main interest rate at the highest level in more than two decades. Lower rates would release pressure that’s built up on the economy because of how expensive it’s become to borrow money to buy houses, cars, or anything on credit cards. Fed officials, though, have been saying they want to see “more good data” on inflation before making a move.
In remarks before the Economic Club of Washington, Federal Reserve Chair Jerome Powell said again on Monday he won’t send any signals about when the Fed may cut interest rates. But he also said Fed officials understand the risks of waiting both too long and not long enough. Too-late cuts could push the U.S. economy into a recession, while too-aggressive cuts could allow inflation to reaccelerate.
In other dealings, U.S. benchmark crude oil lost 23 cents to $81.68 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, gave up 21 cents to $84.64 per barrel.
The U.S. dollar rose to 158.56 Japanese yen from 158.01 yen. The euro fell to $1.0891 from $1.0894.
AP Business Writer Stan Choe contributed.
People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person in traditional Japanese "kimono" walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
People walk near an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person in traditional Japanese "kimono" walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, July 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
FILE - People pass the New York Stock Exchange July 10, 2024, in New York. World shares began trading mixed on Monday, July 15, 2024, after China reported that its economy expanded at a lower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Peter Morgan, File)
A currency trader walks near the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
FILE - The Fearless Girl statues faces the New York Stock Exchange on July 2, 2024, in New York. Global stocks are mixed on Friday, July 12, 2024, with the Japanese yen losing some of its gains after the latest U.S. update on inflation bolstered Wall Street's belief that relief on interest rates may come as soon as September. (AP Photo/Peter Morgan, File)
A currency trader walks near the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
Currency traders watch computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), center, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, July 15, 2024. Asian shares began the week trading mixed as China reported that its economy expanded at a slower-than-forecast 4.7% annual pace in the last quarter. (AP Photo/Lee Jin-man)
WASHINGTON (AP) — President Donald Trump signed an executive order Monday directing the United States to again withdraw from the landmark Paris climate agreement, dealing a blow to worldwide efforts to combat global warming and once again distancing the U.S. from its closest allies.
Trump's action, hours after he was sworn in to a second term, echoed his directive in 2017, when he announced that the U.S. would abandon the global Paris accord. The pact is aimed at limiting long-term global warming to 2.7 degrees Fahrenheit (1.5 degrees Celsius) above pre-industrial levels or, failing that, keeping temperatures at least well below 3.6 degrees Fahrenheit (2 degrees Celsius) above pre-industrial levels.
Trump also signed a letter to the United Nations indicating his intention to withdraw from the 2015 agreement, which allows nations to provide targets to cut their own emissions of greenhouse gases from the burning of coal, oil and natural gas. Those targets are supposed to become more stringent over time, with countries facing a February 2025 deadline for new individual plans. The outgoing Biden administration last month offered a plan to cut U.S. greenhouse gas emissions by more than 60% by 2035.
Trump's order says the Paris accord is among a number of international agreements that don't reflect U.S. values and “steer American taxpayer dollars to countries that do not require, or merit, financial assistance in the interests of the American people."
Instead of joining a global agreement, “the United States’ successful track record of advancing both economic and environmental objectives should be a model for other countries,'' Trump said.
Laurence Tubiana, CEO of the European Climate Foundation and a key architect of the Paris accord, called the planned U.S. withdrawal unfortunate but said action to slow climate change “is stronger than any single country’s politics and policies."
The global context for Trump's action is “very different to 2017,'' Tubiana said Monday, adding that “there is unstoppable economic momentum behind the global transition, which the U.S has gained from and led but now risks forfeiting."
The International Energy Agency expects the global market for key clean energy technologies to triple to more than $2 trillion by 2035, she said.
“The impacts of the climate crisis are also worsening. The terrible wildfires in Los Angeles are the latest reminder that Americans, like everyone else, are affected by worsening climate change,” Tubiana said.
Gina McCarthy, who served as White House climate adviser under President Joe Biden, a Democrat, said that if Trump, a Republican, “truly wants America to lead the global economy, become energy independent and create good-paying American jobs," then he must “stay focused on growing our clean energy industry. Clean technologies are driving down energy costs for people all across our country."
The world is now long-term 2.3 degrees Fahrenheit (1.3 degrees Celsius) above mid-1800s temperatures. Most but not all climate monitoring agencies said global temperatures last year passed the warming mark of 2.7 degrees Fahrenheit, and all said it was the warmest year on record.
The withdrawal process from the Paris accord takes one year. Trump’s previous withdrawal took effect the day after the 2020 presidential election, which he lost to Biden.
While the first Trump-led withdrawal from the landmark U.N. agreement — adopted by 196 nations — shocked and angered nations across the globe, “not a single country followed the U.S. out the door,” said Alden Meyer, a longtime climate negotiations analyst with the European think tank E3G.
Instead, other nations renewed their commitment to slowing climate change, along with investors, businesses, governors, mayors and others in the U.S., Meyer and other experts said.
Still, they lamented the loss of U.S. leadership in global efforts to slow climate change, even as the world is on track to set yet another record hot year and has been lurching from drought to hurricane to flood to wildfire.
“Clearly America is not going to play the commanding role in helping solve the climate crisis, the greatest dilemma humans have ever encountered,″ said climate activist and writer Bill McKibben. “For the next few years the best we can hope is that Washington won’t manage to wreck the efforts of others.”
About half of Americans “somewhat” or “strongly” oppose U.S. action to withdraw from the climate accord, and even Republicans aren’t overwhelmingly in favor, according according to a poll from The Associated Press-NORC Center for Public Affairs Research. Only about 2 in 10 U.S. adults “somewhat” or “strongly” in favor of withdrawing from the Paris agreement, while about one-quarter are neutral.
Much of the opposition to U.S. withdrawal comes from Democrats, but Republicans display some ambivalence as well. Slightly less than half of Republicans are in favor of withdrawing from the climate accord, while about 2 in 10 are opposed.
China several years ago passed the United States as the world's largest annual carbon dioxide emitting nation. The U.S. — the second biggest annual carbon polluting country — put 4.9 billion metric tons of carbon dioxide in the air in 2023, down 11% from a decade earlier, according to the scientists who track emissions for the Global Carbon Project.
But carbon dioxide lasts in the atmosphere for centuries, so the United States has put more of the heat-trapping gas that is now in the air than any other nation. The U.S. is responsible for nearly 22% of the carbon dioxide put in the atmosphere since 1950, according to Global Carbon Project.
While global efforts to fight climate change continued during Trump's first term, many experts worry that a second Trump term will be more damaging, with the United States withdrawing even further from climate efforts in a way that could cripple future presidents’ efforts. With Trump, who has dismissed climate change, in charge of the world’s leading economy, those experts fear other countries, especially China, could use it as an excuse to ease off their own efforts to curb carbon emissions.
Simon Stiell, the U.N. climate change executive secretary, held out hope that the U.S. would continue to embrace the global clean energy boom.
“Ignoring it only sends all that vast wealth to competitor economies, while climate disasters like droughts, wildfires and superstorms keep getting worse," Stiell said. “The door remains open to the Paris Agreement, and we welcome constructive engagement from any and all countries.”
Associated Press writer Linley Sanders contributed to this report.
The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
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