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By Hyunjoo Jin and Joyce Lee SEOUL (Reuters) -Battery maker LG Energy Solution (LGES) said on Monday its third-quarter operating profit likely rose 34% as U.S. consumers rushed to buy electric vehicles to take advantage of government incentives that expired on September 30. The South Korean company, which supplies EV batteries to General Motors and Tesla, estimated its operating profit was 601 billion won ($420 million) during the July to September period, up from 448 billion won in profit a year earlier. The preliminary figure beat a 528 billion won profit forecast compiled by LSEG SmartEstimate that was weighted toward analysts who are more consistently accurate. Its profit may have been boosted by the surge in U.S. EV sales ahead of the end of a $7,500 federal tax credit in September, analysts said. LGES warned in July of a further slowdown in EV demand by early next year due to the elimination of the tax credits as well as U.S. import tariffs imposed by President Donald Trump's administration. LGES shares were up 1.5% in a wider market that was down 1.4%. The company would have made a 236 billion won operating profit excluding U.S. battery manufacturing incentives it received under the U.S. Inflation Reduction Act, the company said in a regulatory filing. LGES will release detailed earnings on October 30. ENERGY STORAGE, GEORGIA RAID LGES has tried to boost production of batteries for energy storage systems (ESS) to offset sluggish EV demand and improve profits in the second half of this year. The company has signed a $4.3 billion deal to supply Tesla with energy storage system batteries, as the U.S. automaker looks to reduce reliance on Chinese imports due to tariffs. In September, LGES suffered a setback with its joint battery factory with Hyundai Motor in the United States. Construction has been suspended in the wake of an immigration raid on the Georgia facility in early September that led to the arrest of hundreds of South Korean workers. Hyundai Motor CEO Jose Munoz said last month the factory was facing a minimum startup delay of two to three months after the raid. LGES said early this month that it would gradually resume U.S. business trips for its employees and subcontractors, a day after the Trump administration agreed to allow South Koreans to work on equipment at U.S. sites under existing temporary visas. ($1 = 1,429.9300 won) (Reporting by Hyunjoo Jin and Joyce Lee; Editing by Kim Coghill and Jamie Freed)

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HONG KONG/SHANGHAI (Reuters) -China stocks fell sharply on Monday as a renewed trade war between Washington and Beijing hit risk appetite and spurred profit-taking in a share market hovering near its highest level in a decade. The blue-chip CSI300 Index and the Shanghai Composite Index fell nearly 2% in early trading. Hong Kong's Hang Seng benchmark was down more than 2%. Defying the broader selloff, China's strategic sectors including rare earths and semiconductors were up in early trade. However, investors and analysts believe the sell-off will be less severe than the panic-selling seen in April, when U.S. President Donald Trump kicked off a global tariff war. Bond prices are expected to rise on Monday. Trump on Friday unveiled additional levies of 100% on China's U.S.-bound exports, along with new export controls on critical software by November 1, in a reprisal against China curbing its critical rare earth exports. The threats, made after Asian markets closed, sent U.S. and European markets sharply lower. An index tracking Nasdaq-listed China stocks tumbled 6%, while the U.S.-listed KraneShares CSI China Internet ETF plunged 7%. TRADE WAR WORRIES RETURN "In the short term, the revived trade war will weigh on China's stock market," said Wang Yapei, a Shanghai-based hedge fund manager. But he expects the turbulence to be short-lived, betting China and the U.S. will eventually work through negotiations, as "the cost of large-scale conflict is too high for both powers." Investors also expect policy support from Beijing to help soothe investor nerves while betting that Trump may back down slightly. China described Trump's latest tariffs on Chinese goods as hypocritical on Sunday and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products. Trump appeared to seek to ease tensions in a social media post overnight, saying "The U.S. wants to help China." Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management Co, said growing geopolitical uncertainty means China will likely further ease monetary policy to aid economic growth, boding well for stocks. A correction could also create buying opportunities in Chinese tech stocks, which would benefit from Beijing's stepped-up self-sufficiency drive amid growing threats of "a Sino-U.S. tech decoupling," he said. In addition, investors are inspired by signs that China is proactively restricting rare earth exports before the U.S. has time to build its own supply chains, he said. Not using this leverage now is "like saving your trump card for too long and missing your chance to use it." TACO AGAIN? China Merchants Securities said geopolitical tensions benefit Chinese sectors including artificial intelligence, robots, defence, innovative drugs and chipmaking. "Any correction would give long-term investors a chance to buy the stocks at lower prices," the brokerage said. But Trump's proposed 100% tariff hike will torpedo export-oriented sectors including electric motors, electrical equipment, nuclear reactors, boilers, machinery, furniture and bedding, according to Xiangcai Securities.  If the increase materialises, "it will wipe out profit at most Chinese exporters," the brokerage said in a note.  Many analysts, however, think the chance of triple-digit tariff is slim. "This statement is more of Trump's signature negotiation tactic—applying maximum pressure to bolster bargaining leverage and force concessions during trade talks," Changjiang Securities said in a report.  "It will likely again play out as TACO (Trump Always Chickens Out)." Lu Ting, Nomura's Chief China Economist, said continued economic and trade clashes between the two superpowers are inevitable. "However, in the near term, both sides are still reliant on one another…so we believe this latest escalation is more about posturing for incoming negotiations and meetings," he said, seeing "a decent chance" of a Xi-Trump in-person meeting during the APEC annual summit in South Korea later this month. (Reporting by Summer Zhen in Hong Kong and Samuel Shen in Shanghhai; Editing by Sam Holmes)

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(Reuters) -Several cargoes of BHP iron ore were put up for sale in China on Thursday and at least one was sold to a local trader, potentially defusing concerns in Australia that Beijing had imposed a ban on iron ore sales from the world's biggest miner. BHP sold a 170,000-metric-ton cargo to a Chinese trader on Thursday, the first day of trading after China's week-long national holiday, according to two traders with direct knowledge of the matter. The cargo was paid for in dollars, they said. The same day, the Shanghai branch of China Mineral Resources Group (CMRG) – set up in 2022 to centralise iron ore purchasing and win better terms from miners – offered eight cargoes of BHP iron ore totaling 1.14 million tons to steelmakers, according to an offer sheet reviewed by Reuters. AUSTRALIAN FEARS OF CHINESE BAN ON ITS IRON EXPORTS Bloomberg reported last month that CMRG had told major steelmakers and traders to temporarily halt purchases of all new BHP cargoes, escalating an earlier pause on purchases of BHP's Jimblebar fines product, a type of iron ore, during a standoff in negotiations over new term contracts. That news triggered fears in Canberra that China was preparing a ban on Australia's most profitable export, much as it did with coal and other commodities in 2020. While CMRG told steelmakers last month during negotiations with BHP not to buy BHP's Jimblebar fines, purchases of other grades of iron ore can be made with permission from CMRG, two other sources with direct knowledge of the matter told Reuters. TRADE IN BHP'S JIMBLEBAR FINES STILL FROZEN None of the cargoes sold or offered on Thursday were Jimblebar fines, whose trade remains frozen according to all four sources. Reuters could not determine when CMRG bought its cargoes from BHP or how many cargoes have been sold.  CMRG did not respond to Reuters' emailed request for comment. A BHP spokesperson said that BHP does not comment on commercial negotiations. Jimblebar is a small but liquid product, with roughly 40 million tons a year produced, for which a limited shortage would be unlikely to trigger a rally in iron ore prices, the two trader sources said. Rio Tinto's flagship Pilbara fines product could also act as a substitute, they added. Last week, BHP CEO Mike Henry doused concerns about CMRG's decision in talks with Australian Treasurer Jim Chalmers, according to local media, saying the move was part of commercial negotiations. The Treasurer's office did not respond to a request for comment.  (Reporting by Reuters staff in Beijing and Melbourne; Editing by Joe Bavier)

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By Gregor Stuart Hunter SINGAPORE (Reuters) -The U.S. dollar recovered from a selloff in early trade on Monday as investors hoped Washington may temper its latest escalation of the trade war with Beijing, while political developments in France and Japan undermined the euro and the yen. The dollar index, which measures the greenback's strength against a basket of six currencies, edged higher to 99.002, retracing some losses sustained after U.S. President Trump announced 100% tariffs on China. That revived fears of Trump's Liberation Day rollout of sweeping tariffs in April, sparking a selloff in stocks and cryptocurrencies on Friday. "Certainly it's pretty nervous out there," said Tim Kelleher, head of institutional FX Sales at Commonwealth Bank in Auckland. "If you look at the U.S. and China stuff, it looks like Trump has done a bit of a TACO again and softened his tone," he added, referring to a trading rule of thumb that "Trump always chickens out." Earlier in the day, Trump said: "Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment," he posted on the Truth Social network. "He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!" Market liquidity may be affected by holidays as the U.S. observes Columbus Day/Indigenous Peoples’ Day today, while Japan is also closed to mark Health and Sports Day. Against the yen, the dollar fetched 151.985 yen, up 0.5% as markets assessed the path ahead for new Liberal Democratic Party leader Sanae Takaichi after Komeito quit the ruling coalition on Friday, dealing a blow to her hopes to become the first female prime minister of the world's fourth largest economy. The euro stood at $1.1609, down 0.1%, after the French presidency announced Prime Minister Sebastien Lecornu's new cabinet line-up on Sunday, reappointing Roland Lescure, a close ally of Emmanuel Macron, as finance minister. Cryptocurrency markets fluctuated between gains and losses after a sharp selloff on Friday, with bitcoin last trading up 0.4% at $115,486.04. Gold hit a fresh record of $4,059.30 and was last up 0.8%. The offshore yuan traded at 7.137 yuan per dollar, tacking on 0.1% in early Asian trade. The Australian dollar fetched $0.6513, rising 0.6% in early trade, while the kiwi traded at $0.57345, up 0.3%. Sterling changed hands at $1.33415, up 0.1% so far on the day. (Reporting by Gregor Stuart HunterEditing by Shri Navaratnam)

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By Gregor Stuart Hunter SINGAPORE (Reuters) -The U.S. dollar recovered from a selloff in early trade on Monday as investors hoped Washington may temper its latest escalation of the trade war with Beijing, while political developments in France and Japan undermined the euro and the yen. The dollar index, which measures the greenback's strength against a basket of six currencies, edged higher to 99.002, retracing some losses sustained after U.S. President Trump announced 100% tariffs on China. That revived fears of Trump's Liberation Day rollout of sweeping tariffs in April, sparking a selloff in stocks and cryptocurrencies on Friday. "Certainly it's pretty nervous out there," said Tim Kelleher, head of institutional FX Sales at Commonwealth Bank in Auckland. "If you look at the U.S. and China stuff, it looks like Trump has done a bit of a TACO again and softened his tone," he added, referring to a trading rule of thumb that "Trump always chickens out." Earlier in the day, Trump said: "Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment," he posted on the Truth Social network. "He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!" Market liquidity may be affected by holidays as the U.S. observes Columbus Day/Indigenous Peoples’ Day today, while Japan is also closed to mark Health and Sports Day. Against the yen, the dollar fetched 151.985 yen, up 0.5% as markets assessed the path ahead for new Liberal Democratic Party leader Sanae Takaichi after Komeito quit the ruling coalition on Friday, dealing a blow to her hopes to become the first female prime minister of the world's fourth largest economy. The euro stood at $1.1609, down 0.1%, after the French presidency announced Prime Minister Sebastien Lecornu's new cabinet line-up on Sunday, reappointing Roland Lescure, a close ally of Emmanuel Macron, as finance minister. Cryptocurrency markets fluctuated between gains and losses after a sharp selloff on Friday, with bitcoin last trading up 0.4% at $115,486.04. Gold hit a fresh record of $4,059.30 and was last up 0.8%. The offshore yuan traded at 7.137 yuan per dollar, tacking on 0.1% in early Asian trade. The Australian dollar fetched $0.6513, rising 0.6% in early trade, while the kiwi traded at $0.57345, up 0.3%. Sterling changed hands at $1.33415, up 0.1% so far on the day. (Reporting by Gregor Stuart HunterEditing by Shri Navaratnam)

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By Scott Murdoch SYDNEY (Reuters) -Australia's ANZ Group said it would stop the remaining A$800 million ($520 million) of a share buyback but maintain its dividend as CEO Nuno Matos moves to build cash levels, simplify the bank and win back market share from its rivals. ANZ on Monday also outlined plans for A$800 million of pre-tax cost savings this financial year that would come from previously announced job cuts as well as team restructurings and exiting non-core businesses like online shopping cashback platform Cashrewards. "Our company has become too complex and at times disintermediated from our customers and we clearly need to improve how we manage our non-financial risks," Matos told an investor briefing. Shares in Australia's fourth-largest bank fell in early trading but turned positive, up 0.3% by 0017 GMT. The S&P/ASX200 was down 0.6%. Investors had expected the bank would announce plans to cut its dividend or stop the share buyback to help conserve cash. "For the bank to come out that it is not cutting the dividend is a positive result for shareholders and confirms that the bank is in reasonable shape," said Michael Haynes, analyst at Atlas Funds Management, which holds ANZ shares. Matos said the lender said it would increase its mortgage and business banker numbers by up to 50% in each division as it bids to win back market share it has lost to major rivals. The bank will also reduce reliance on mortgage brokers and aim to write more loans directly to boost its revenue from home lending. ANZ's shares had underperformed its major rivals but have risen nearly 20% since Matos took over on June 1. The bank's year-to-date gains of 24% outrank the share price rises of its "Big Four" Australian bank rivals Commonwealth Bank of Australia, National Australia Bank and Westpac. ANZ last month unveiled plans to slash 3,500 jobs at a one-off cost of A$560 million. Matos said on Monday about 60% of the job cuts would come from the retail bank and technology division. The former top HSBC executive has launched the reset at ANZ at a time when it is tackling major reputational issues and regulatory wrangles. The agency in charge of issuing Australian government debt said last week it would not work with ANZ until the bank improved its risk culture, after a 2023 bond trading scandal. ANZ agreed with Australia's corporate regulator to a A$125 million penalty after it was accused of acting "unconscionably" during a syndicated government bond deal in 2023. The fine was part of a A$240 million penalty the bank agreed to pay after it was also accused charging fees to thousands of dead customers and miscalculating bonus interest payments. The bank said on Monday it expected its final dividend to be in line with its half-year payout and it would apply a 1.5% discount on its next two dividend reinvestment plans. ANZ unveiled a new A$2 billion share buyback in May 2024 after the bank's first-half cash earnings largely met analyst estimates, but it had only completed about A$1.2 billion of share purchases before cancelling the buyback on Monday. ($1 = 1.5389 Australian dollars) (Reporting by Rishav Chatterjee in Bengaluru and Scott Murdoch in Sydney; Editing by Diane Craft, Jamie Freed and Sonali Paul)

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