Last week, China unveiled new export restrictions on critical minerals, prompting a fierce response from US President Donald Trump, who said he would impose new 100 percent tariffs on Beijing in response.
The news, delivered just after US stock markets closed on Friday, sent shares plunging after hours, as investors digested the prospect of a reinvigorated trade war.
But Trump dialed back his rhetoric over the weekend, and by Monday morning traders appeared to have settled somewhat, with all three major Wall Street indices opening higher on the news.
Both IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga are due to speak in Washington on Monday, with more substantial events scheduled for later in the week.
- Economy, jobs in spotlight -
Ahead of the meetings, Georgieva told an event in Washington that the world economy was doing "better than feared, but worse than we need."
She added that the Fund now expects global growth to slow "only slightly this year and next," propped up by better-than-expected conditions in the United States, and among some other advanced economies, emerging markets and developing countries.
The annual meetings will take place at the IMF and World Bank's headquarters, a short distance from the White House.
For the World Bank, the focus is likely to remain on job creation, with Banga set to take part in several events aimed at boosting labor market participation in countries facing a surge in population growth.
The IMF will hold press conferences to discuss its regular trio of reports focused on the health of the global economy, fiscal policy, and global financial stability.
There will be another roundtable on Ukraine this week, a country still facing near-daily drone and missile attacks more than three years after the start of Russia's full-scale invasion.
The event will be an opportunity to discuss "the needs for ongoing support to Ukraine and efforts needed for its reconstruction," according to the IMF.
There will also be meetings of finance ministers from the G7 group of advanced economies, and a gathering of the G20 group of nations, a forum that includes both the United States and China.
- Ongoing trade tensions -
Even before the most recent trade spat broke out, Trump's tariff plans had raised US import taxes on goods to the highest level in decades, cooling growth and pushing up prices.
So far, however, "all signs point to a world economy that has generally withstood acute strains from multiple shocks," Georgieva said in Washington last week.
"The world has avoided a tit-for-tat slide into trade war -- so far," she added.
The White House continues to insist that the long-term effect of tariffs will be positive for the United States, pointing to their relatively muted economic impact thus far.
Asian stocks pare tariff-led losses, Tokyo hit by political turmoil
Hong Kong (AFP) Oct 14, 2025 -
Most Asian stocks rose Tuesday, tracking a rally on Wall Street, after Donald Trump tempered his rhetoric against China, which he has threatened with 100 percent tariffs, while Tokyo struggled amid Japanese political turmoil.
Still, safe-haven metals continued to push higher -- helping silver join gold in touching records -- fuelled by expectations for more US interest rate cuts, worries about rising debt and warnings that an AI-stoked global rally could be overdone.
The US president sent shivers through markets Friday when he lashed out at Beijing over its curbs on rare earths, which fuelled fears he was reigniting their trade war after months of a tentative truce.
But he shifted his tone by Sunday, insisting in a social media post that "it will all be fine", and adding that he wanted to "help" China.
That was enough for traders to return to the market, with the Nasdaq soaring more than two percent and S&P 500 and Dow each up more than one percent Monday, taking a huge bite out of Friday's losses.
Asia tried to follow suit following Monday's retreat, which had been tempered by Trump's more conciliatory comments.
Hong Kong, Shanghai, Singapore, Seoul, Sydney, Taipei and Manila all rose, though Wellington and Jakarta dropped.
"Given the recent rally, positioning was stretched (and) any bad news is a cue to sell risk...which indicates the market is looking for an excuse for a selloff," said Neil Wilson of Saxo markets.
"The extent of the selling could be the cue for the last bears to throw in the towel."
Still, tech firms remain in high demand, with the latest impetus for buying coming after chip giant Broadcom formed a partnership with OpenAI to provide 10 gigawatts in computing power.
The deal came after OpenAI signed deals involving huge investments in data centres and AI chips with US companies Nvidia, AMD and Oracle, as well as with South Korea's Samsung and SK Hynix.
Tokyo returned from a long weekend with losses, as lingering tariff worries compound political uncertainty in Japan where the ruling coalition collapsed Friday as junior partner Komeito quit the alliance.
The move raised questions about whether Sanae Takaichi -- who became the ruling party's leader this month -- will be able to take the reins as the country's first woman prime minister.
Stocks had surged after her election on hopes she will unveil fresh stimulus measures and push for looser monetary policies.
It was reported at the weekend that Komeito will seek to support a unified candidate with other groups in a bid to block Takaichi -- who needs approval from parliament -- from becoming premier.
In commodity trade, silver struck a record $52.90 as investors sought other safe havens as gold continued to chalk up successive peaks of its own. The yellow metal hit a new high of nearly $4,150.
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