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Asian markets rise as US stock indexes near records amid easing trade tensions

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Asian markets rise as US stock indexes near records amid easing trade tensions

Shares rose early Tuesday in Asia after U.S. stock indexes drifted closer to records, while oil prices extended gains.

Beijing and Washington dialed back trade friction as the U.S. extended exemptions for tariffs on some Chinese goods, including solar manufacturing equipment, that U.S. industries rely on for their own production.

The U.S. Trade Representative extended those exemptions, which were due to expire on May 31, by three months through Aug. 31.

Still, China criticized the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas.

Hong Kong’s Hang Seng gained 1.1% to 23,417.39, while the Shanghai Composite index added 0.3% to 3,356.36.

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In Tokyo, the Nikkei 225 advanced 0.6% to 37,683.19.

South Korean markets were closed for a snap presidential election triggered by the ouster of Yoon Suk Yeol, a conservative who now faces an explosive trial on rebellion charges over his short-lived imposition of martial law in December.

Australia’s S&P/ASX 200 was up 0.7% to 8,475.50.

In Taiwan, the Taiex gained 1.4%.

On Monday, U.S. stock indexes drifted closer to their records following a stellar May, Wall Street’s best month since 2023.

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The S&P 500 rose 0.4% to 5,935.94 after erasing an early loss from the morning. The Dow Jones Industrial Average added 0.1% to 42,305.48. The Nasdaq composite climbed 0.7% to 19,242.61.

Indexes had fallen close to 1% in the morning following some discouraging updates on U.S. manufacturing. President Donald Trump has been warning that U.S. businesses and households could feel some pain as he tries to use tariffs to bring more manufacturing jobs back to the country, and their on-and-off rollout has created lots of uncertainty.

But stocks rallied back as the day progressed. Nvidia climbed 1.7%, and Meta Platforms rose 3.6%, for example.

Oil prices have gained as attacks by Ukraine in Russia raise uncertainty about the flow of oil and gas around the world.

Early Tuesday, U.S. benchmark crude oil was up 62 cents at $63.14 per barrel. Brent crude, the international standard, picked up 57 cents to $65.19 per barrel.

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Markets took in stride fresh salvos between the world’s two largest economies, just a few weeks after the United States and China had agreed to pause many of their tariffs that had threatened to drag the economy into a recession.

That followed President Donald Trump’s accusation at the end of last week, where he said China was not living up to its end of the agreement that paused their tariffs against each other.

Trump on Friday told Pennsylvania steelworkers he’s doubling the tariff on steel imports to 50% to protect their industry, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. That helped stocks of U.S. steelmakers climb. Nucor jumped 10.1%, and Steel Dynamics rallied 10.3%.

On the losing side of Wall Street were automakers and other heavy users of steel and aluminum. Ford fell 3.9%, and General Motors reversed by 3.9%.

Lyra Therapeutics soared nearly 311% for one of the market’s biggest gains after reporting positive late-stage trial results of an implant to treat chronic sinus inflammation in some patients.

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In the bond market, Treasury yields rose as worries continue about how much debt the U.S. government will pile on due to plans to cut taxes and increase the deficit.

The yield on the 10-year Treasury climbed to 4.44% from 4.41% late Friday and from just 4.01% roughly two months ago. That’s a notable move for the bond market.

Besides making it more expensive for U.S. households and businesses to borrow money, such increases in Treasury yields can deter investors from paying high prices for stocks and other investments.

Yields had dipped briefly in the morning, before rallying back, following the updates on manufacturing, which suggested that effects of Trump’s tariffs are taking root in the economy.

A report from S&P Global on manufacturing came in better than expected, though uncertainty caused by tariffs has worries high about supplier delays and rising prices.

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Also early Tuesday, the dollar rose to 143.10 Japanese yen from 142.71 yen. The euro slipped to $1.1438 from $1.1443.

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AP Business Writers Stan Choe and Matt Ott contributed.

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How Cheap Drones Are Changing Wars Like the Ones in Ukraine and Iran

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How Cheap Drones Are Changing Wars Like the Ones in Ukraine and Iran

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A 3-D rendering of an Iranian Shahed-136 drone, a device with two triangle-shaped wings attached to a central fuselage. It has an engine the size of a small motorcycle’s and carries 110 pounds of explosives.

Engine the size of a small motorcycle’s

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Carries 110 pounds of explosives

One of the biggest takeaways of the war with Iran is that it has proven itself to be a surprisingly capable adversary against the United States. In addition to its willingness to go on the offensive, Iran has forced the U.S. and its regional allies to confront the rise of cheap drones on the battlefield.

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Iranian drones, made with commercial-grade technology, cost roughly $35,000 to produce. That is a fraction of the cost of the high-tech military interceptors sometimes used to shoot them down.

Note: Estimated price of munitions per unit. In practice, multiple interceptors are fired when targeting a drone. For instance, with the $80 bullet fired by the Centurion Counter-Rocket, Artillery, and Mortar (C-RAM), 75 rounds are fired in a second. Sources: Department of Defense, Lockheed Martin, Northrop Grumman, Open Source Munitions Portal, SRC Inc, U.S. Army and U.S. Navy.

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Cheap drones changed the war in Ukraine, and they have enabled Iranians to exploit a gap in American defense investments, which have historically prioritized accurate but expensive solutions.

Countering drones has been a major priority for the Pentagon for years, according to Michael C. Horowitz, who was a Pentagon official in the Biden administration. “But there has not been the impetus to scale a solution,” he said.

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In just the first six days, the U.S. spent $11.3 billion on the war with Iran. The White House and Pentagon have not provided updated estimates, but the American Enterprise Institute, a conservative-leaning think tank, estimated in early April that the U.S. had spent approximately between $25 and $35 billion on the war, with interceptors driving much of the cost. Many missile defense experts also fear interceptor stockpiles are now running dangerously low.

Here is a breakdown of some of the ways the U.S. and its allies have countered Iran’s drones, and why it can be so costly.

Air-based strikes

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In an ideal scenario, an early warning aircraft spots a drone when it is still several hundred miles out from a target, and a fighter jet, like an F-16, is dispatched from a military base. The F-16 can then use Advanced Precision Kill Weapon System (APKWS) II rockets to shoot a drone from about six miles away.

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A 3-D rendering of an F-16 fighter jet firing an APKWS II rocket from under one wing. Two to three rockets are fired per drone, as per air defense protocol. Two APKWS II rockets and an hour of F-16 flight cost approximately $65,000, a little less than twice that of the Iranian Shahed-136.

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Two to three interceptors fired per drone

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Source: U.S. Navy, Department of Defense

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These types of defensive air patrols are cost-efficient, but haven’t always been available because of the vast scope of the conflict. Iran has also targeted early warning aircraft that the U.S. needs to detect a drone from that distance, according to NBC News.

The other option for detecting and shooting down drones is a variety of different ground-based detection systems, but these systems are all at a disadvantage, as their ability to spot low-flying drones is limited by the curvature of the earth.

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Anti-drone defense systems

One ground-based defense system the U.S. and its allies have built specifically to counter drones at a shorter range is the Coyote. It can intercept drones up to around nine miles away.

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A 3-D rendering of a Coyote Block 2 interceptor, which looks like a three-foot tube with small rockets at one end. Two Coyotes cost approximately $253,000 or about seven times that of the Iranian Shahed-136.

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The Coyote is significantly cheaper than many of the other ground-based defense systems available to the U.S. and its allies and historically effective at defending important assets. But despite being both effective and cost-efficient, relatively few Coyotes have been procured by the U.S. military in recent years.

When Iran-backed militias launched attacks on U.S. ground troops in the region in 2023 and 2024, there were so few Coyotes available that troops had to shuffle the systems between eight different bases in the region almost daily, according to a report from the Center for a New American Security, a Washington think tank.

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Ship-based anti-missile defenses

Many of the longer-range ground-based defense systems the U.S. and its allies can use to combat drones are more expensive, as they are designed to shoot down aircraft and ballistic missiles, not drones. A Navy destroyer’s built-in radar system, for instance, can detect drones from 30 miles away and shoot it down with Standard Missile 2 (SM-2) interceptors. As in the air-based strikes, military protocol stipulates that at least two missiles be fired.

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A 3-D rendering of the deck of a Navy destroyer firing an SM-2 missile from a built-in launcher, which looks like a 15-foot missile launching from a grid of openings on the ship’s surface. Two SM-2 missiles cost approximately $4.2 million, about 120 times that of the Iranian Shahed-136.

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This misalignment between America’s defense systems and current warfighting tactics started after the Cold War, when the anticipated threats were fewer, faster, higher-end projectiles, not mass drone raids.

Iran often launches multiple Shahed-136 drones at a time, given their low price tag. The drones are also programmed with a destination before launch and can travel roughly 1,500 miles, putting targets all across the Middle East within reach.

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“This category of lower-cost precision strike just didn’t exist at the time that most American air defenses were developed,” said Mr. Horowitz.

Ground-based anti-missile defenses

The Army’s standard air-defense system is the Patriot. Typically stationed at a military base, it can shoot down a drone from up to around 27 miles away with PAC-3 Missile Segment Enhancement interceptors. Military protocol stipulates that at least two missiles be fired.

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A 3-D rendering of a Patriot launcher loaded with 17-foot PAC-3 MSE missiles, which looks like a tilted shipping container with scaffolding. Two PAC-3 MSE missiles cost approximately $8 million, about 220 times that of the Iranian Shahed-136.

Patriot missile defense system

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Air defense training teaches service members to prioritize using longer-range defense systems first to “get as many bites at the apple as you can,” but those are the most expensive, said Stacie Pettyjohn, a senior fellow and director of the defense program at the Center for a New American Security.

But a costly defense can still make economic sense to protect a valuable target, especially those that are difficult to repair or replace, such as the nearly $1.1 billion radar at a military base in Qatar and the $500 million air defense sensor at a base in Jordan that were damaged early in the conflict.

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Ground-based guns

Finally, there is what one might call a last resort: a ground-based gun. When a drone is about a mile away or less than a minute from hitting its target, something like the Centurion C-RAM can begin rapidly firing to take down the drone.

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A 3-D rendering of a Centurion C-RAM, which looks like a gun mounted to a rotating, cylindrical stand. The gun fires 75 rounds of ammunition per second. Five seconds of firing the gun costs $30,000, slightly less than a single Iranian Shahed-136.

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Centurion Counter-Rocket, Artillery and Mortar

Fires 375 rounds of ammunition in 5 seconds

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Even though it is fairly cost-effective, the Centurion C-RAM is not the best option because it has such a short range.

Interceptor drones

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There’s also what one might call the future of fighting drones: A.I.-powered interceptor drones. Interceptor drones like the Merops Surveyor can theoretically hunt and take down enemy projectiles from a short range.

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A 3-D rendering of a Surveyor drone, which looks like a three-foot tube with wings and a tail. The Merops drone costs approximately $30,000, a little less than a single Iranian Shahed-136.

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Merops system: Surveyor drone

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Eric Schmidt, the former Google chief executive, founded a company to develop the Merops counter-drone system in conjunction with Ukrainian fighters, who have already been combatting Iranian drones in the war with Russia for years.

The U.S. sent thousands of Merops units to the Middle East after the conflict began, but it is unclear whether they have been deployed. The military set up training on the system in the middle of the war, as reported by Business Insider.

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Other attempts to lower the cost-per-shot ratio of taking out a drone have failed.

The Pentagon invested over a billion dollars in fiscal year 2024 researching directed energy weapons, or lasers, that would cost only $3 per shot and have a range of 12 miles. Those systems have yet to be used in the field.

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Despite the cost imbalance, the real fear for many in the defense community is the depleted stockpile of munitions.

“What scares me is that we will run out of these things,” said Tom Karako, the director of the Missile Defense Project at the Center for Strategic and International Studies in Washington. “Not that we can’t afford them, but that we’ll run out before we can replace them.”

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Moscow-born gunman dead after Kyiv shooting rampage leaves at least 6 dead, 14 wounded: Zelenskyy

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Moscow-born gunman dead after Kyiv shooting rampage leaves at least 6 dead, 14 wounded: Zelenskyy

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A Russian gunman was killed by special forces Saturday in Ukraine after opening fire at a supermarket in Kyiv, killing six people and wounding 14 others — including a 12‑year‑old boy.

The 58-year-old shooter long resided in the Donetsk region and was born in Moscow, according to Ukrainian President Volodymyr Zelenskyy and Interior Minister Ihor Klymenko.

He took at least four hostages, killed one of them, and fatally shot four others on the street, Zelenskyy said. Another woman died at a hospital from her injuries.

Graphic video captured by witnesses showed the gunman shooting at a victim within close range on the street. Other bodies were seen lying on the pavement and in courtyards.

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The gunman was seen walking with a weapon on the street. (Obtained by Will Stewart)

MANHUNT UNDERWAY AFTER GUNMEN STORM CHICK-FIL-A LEAVING 1 DEAD

Ukranian special forces stormed the convenience store after 40 minutes of failed negotiations, according to Klymenko.

At least fourteen people were wounded in the attack, though officials cautioned the number may rise as people continue to seek medical assistance.

Among the injured is a 12‑year‑old boy and a supermarket security guard, according to Kyiv Mayor Vitali Klitschko.

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The gunman was pictured dead in the convenience store. (Obtained by Will Stewart)

NINE DEAD, 13 WOUNDED IN SECOND TURKISH MASS SHOOTING IN TWO DAYS

Zelenskyy said the shooter also set fire to an apartment prior to the attack, though it is unclear if any injuries resulted from the arson.

“My condolences to the families and loved ones of the victims,” Zelenskyy wrote in an X post. “…We wish all the wounded a swift recovery.”

The gunman had previously been prosecuted for criminal offenses, but held a valid weapons permit, according to authorities. Investigators from the National Police and the Security Service of Ukraine are investigating.

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The gunman was seen holding and shooting a weapon in the street. (Obtained by Will Stewart)

GUNMAN OPENS FIRE AT HIGH SCHOOL IN TURKEY, WOUNDING AT LEAST 16

Ukraine’s security service labeled the attack an act of terrorism.

“All available information about him and the motives behind his actions is being thoroughly investigated,” Zelenskyy said. “Every detail must be verified.”

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One of the shooter’s neighbors, Hanna Kulyk, 75, described him as an “educated, refined man,” who lived alone and did not socialize often.

“You’d never guess he was some kind of criminal,” Kulyk told The Associated Press.

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Iran navy says any ship trying to pass Strait of Hormuz will be targeted

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Iran navy says any ship trying to pass Strait of Hormuz will be targeted

Top negotiator Mohammad Bagher Ghalibaf says US naval blockade of Iran’s ports is ‘a clumsy and ignorant decision’.

Iran’s Islamic Revolutionary Guard Corps Navy (IRGC) says the Strait of Hormuz is closed and that any ship that attempts to pass through the waterway will be targeted, a dramatic reversal less than 24 hours after the critical shipping lane was reopened.

In a statement carried by Iran’s Student News Agency, the IRGC navy said on Saturday the strait will be closed until the United States lifts its naval blockade on Iranian vessels and ports. It said the blockade was a violation of the ongoing ceasefire agreement in the US-Israel war on Iran.

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“We warn that no vessel of any kind should move from its anchorage in the Persian Gulf and the Sea of Oman, and approaching the Strait of Hormuz will be considered cooperation with the enemy, and the offending vessel will be targeted,” it said.

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Mohammad Bagher Ghalibaf, Iran’s parliament speaker and a senior negotiator in talks between Washington and Tehran on ending the war, said in a television interview that “the Strait of Hormuz is under the control of the Islamic Republic”.

“The Americans have been declaring a blockade for several days now. This is a clumsy and ignorant decision,” he added.

The reassertion of control came just hours after Iran had briefly reopened the strait, in line with a 10-day ceasefire between Israel and Lebanon. Oil prices dropped on global markets after Iranian Foreign Minister Abbas Araghchi said on Friday that the waterway was “completely open for all commercial vessels.”

More than a dozen commercial ships passed through the waterway before the IRGC reversed course.

Iranian gunboats reportedly fired on two commercial ships on Saturday, according to United Kingdom Maritime Trade Operations (UKMTO). India’s Ministry of External Affairs also said that two Indian-flagged ships were involved in a “shooting incident” in the strait.

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Some merchant vessels in the region received radio messages from the IRGC Navy, warning that no ships were being allowed through the strait.

US President Donald Trump said Tehran could not blackmail Washington by closing the waterway and warned that he would put an end to the ceasefire if a deal before its expiry on Wednesday is not reached. Trump added that the naval blockade would “remain in full force”.

Iranian Supreme Leader Mojtaba Khamenei, meanwhile, said the navy was ready to inflict “new bitter defeats” on its enemies.

‘Two competing blockades’

Al Jazeera correspondent Zein Basravi said that Iran and the US are back where they were the previous day.

“Less than 24 hours ago, world leaders were praising what they thought was a breakthrough in this conflict, hoping Iran was signalling a confidence-building measure by opening the Strait of Hormuz, potentially leading to a ceasefire deal and a permanent end to the war,” he said.

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“As disappointed as people may be, this isn’t entirely surprising. What we’re seeing now is a return to square one,” he added, saying there are now “two competing blockades in place”.

Al Jazeera’s Ali Hashem, reporting from Tehran, said Iran was using the strait to send a message.

“It’s clear that Iran is dealing with a situation in which they are not sure what’s on the table. So the Strait of Hormuz is once again the only space for engagement, even if it’s a negative engagement. And it’s the space where they are sending and conveying messages to the Americans, showing their leverage,” he said.

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