Asian markets rally again as rate cut hopes bring Christmas cheer

Equities extended a global rally Tuesday, while gold and silver hit fresh records as optimism for more US interest rate cuts and an easing of AI fears helped investors prepare for the festive break on a positive note.Data showing US unemployment rising and inflation slowing gave the Federal Reserve more room to lower borrowing costs and provided some much-needed pep to markets after a recent swoon.That was compounded by a blockbuster earnings report from Micron Technologies that reinvigorated tech firms.The sector has been the key driver of a surge in world markets to all-time highs this year owing to huge investments into all things artificial intelligence but that trade has been questioned in recent months, sparking fears of a bubble that could pop.With few catalysts to drive gains on Wall Street, tech was again at the forefront of buying Monday, with chip titan Nvidia and Tesla leading the way.”The amount of money being thrown towards AI has been eye-watering,” wrote Michael Hewson of MCH Market Insights.He said the vast sums pumped into the sector “has inevitably raised questions as to how all of this will be financed, when all the companies involved appear to be playing a game of pass the parcel when it comes to cash investment”.”These deals also raise all manner of questions about how this cash will generate a longer-term return on investment,” he added.”With questions now being posed… we may start to get a more realistic picture of who the winners and losers are likely to be, with the losers likely to be punished heavily.”Asian markets enjoyed more buying, with Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington and Jakarta all comfortably higher.Precious metals were also pushing ever higher on the back of expectations for more US rate cuts, which makes them more attractive to investors.Bullion was within a whisker of $4,500 per ounce, while silver was just short of $70 an ounce, with the US blockade against Venezuela and the Ukraine conflict adding a geopolitical twist.”The structural tailwinds that have driven both of these to record highs this year persist, be it central bank demand for gold or surging industrial demand for silver,” said Neil Wilson at Saxo Markets.”The latest surge comes after soft inflation and employment readings in the US last week, which reinforced expectations around the Fed’s policy easing next year. Geopolitics remains a factor, too.”Oil prices dipped, having jumped more than two percent Monday on concerns about Washington’s measures against Caracas.The United States has taken control of two oil tankers and is chasing a third, after President Donald Trump last week ordered a blockade of “sanctioned” tankers heading to and leaving Venezuela.- Key figures at around 0230 GMT – Tokyo – Nikkei 225: UP 0.1 percent at 50,442.12 (break)Hong Kong – Hang Seng Index: UP 0.2 percent at 25,850.32Shanghai – Composite: UP 0.1 percent at 3,922.71Dollar/yen: DOWN at 156.42 yen from 156.99 yen on MondayEuro/dollar: UP at $1.1776 from $1.1756Pound/dollar: UP at $1.3481 from $1.3458Euro/pound: UP at 87.36 pence from 87.35 penceWest Texas Intermediate: DOWN 0.1 percent at $57.94 per barrelBrent North Sea Crude: DOWN 0.1 percent at $62.00 per barrelNew York – Dow: UP 0.5 percent at 48,362.68 (close)London – FTSE 100: DOWN 0.3 percent at 9,865.97 (close)

Trapped under Israeli bombardment, Gazans fear the ‘new border’

When her children, trembling with fear, ask where the family can go to escape Israel’s continued bombardment in southern Gaza’s Khan Yunis area, Umm Ahmed has no answer.In her small, devastated village near Khan Yunis city, recent Israeli strikes shattered the tenuous sense of peace delivered by a ceasefire that has largely held since October 10.Residents say the attacks have targeted neighbourhoods east of the so-called Israeli-controlled Yellow Line — a demarcation established under the truce between Israel and Hamas.More than two years after a devastating war, tens of thousands of Gazans still live in tents or damaged homes in these areas, where the Israeli army maintains control and operates checkpoints.Now, many fear being forced from their homes, compelled to move west of the Yellow Line.”We don’t sleep at night because of fear. The bombardments in the east are relentless,” said Umm Ahmed, 40.”My children tremble at every explosion and ask me, ‘Where can we go?’ And I have no answer.”Her home in Bani Suheila has been completely destroyed, yet the family has stayed, pitching a tent beside the ruins.”Staying close to our destroyed home is easier than facing the unknown,” Umm Ahmed said.Crossing the Yellow Line to Al-Mawasi, west of Khan Yunis, is not an option for them.There, makeshift camps stretch as far as the eye can see, housing tens of thousands of Palestinians who fled the fighting.”There is no place left for anyone there, and not enough food or water,” Umm Ahmed said, as Gaza remains trapped in a catastrophic humanitarian crisis.- ‘We will not leave’ -The war in Gaza began on October 7, 2023, following an unprecedented attack by Hamas on Israel that resulted in the deaths of 1,221 people, according to an AFP tally based on official Israeli figures.Since the war began, more than 70,000 people have been killed in Gaza, according to the territory’s health ministry. The vast majority of the territory’s more than two million residents have been displaced, many multiple times.A fragile ceasefire has been in place since October 10, though both sides regularly accuse each other of violations.Under the truce, Israeli forces withdrew to positions east of the Yellow Line.Earlier this month, Israeli army chief Lieutenant General Eyal Zamir described the Yellow Line as the “new border” with Israel.”The Yellow Line is a new border line — serving as a forward defensive line for our communities and a line of operational activity,” he said to reserve soldiers in Gaza.For Palestinian officials, the line is seen as a tool for permanent displacement.”The objective is to frighten residents, expel them from their areas, and force them west,” said Alaa al-Batta, mayor of Khan Yunis, denouncing the bombardments as “violations of the ceasefire agreement”.The Israeli military did not respond to AFP but has regularly reported strikes near the Yellow Line on what it described as suspected militants.Mahmud Baraka, 45, from Khuzaa, east of Khan Yunis, described constant artillery fire and home demolitions in the area.”It feels like we are still living in a war zone,” he said.”Explosions happen as if they are right next to us. The objective of the occupation is clear: to intimidate us and drive us out, so the region is emptied.”For now, residents feel trapped between bombardment and displacement, uncertain how long they can endure.Despite the danger, Abdel Hamid, 70, refuses to leave his home located north of Khan Yunis, where he lives with his five children.”We will not leave… this is our land,” he said.”Moving would not be a solution, but yet another tragedy.”bur-az-tgg-jd-glp/jsa

Min Aung Hlaing: Myanmar’s military ruler overseeing election

Myanmar’s top general Min Aung Hlaing was months from retirement when he made a dictatorial about-face nearly five years ago, deposing the democratic government and promoting himself to leader.The bespectacled and diminutive officer became military chief in 2011, as Myanmar broke with its history of iron-fisted martial rule and began its latest experiment with democracy.The 69-year-old soldier spent a decade jostling with civilian leaders before overturning them in a coup, jailing Nobel Peace Prize laureate Aung San Suu Kyi and triggering a vicious civil war that is still ongoing.He is now presiding over a poll due to start Sunday, promising it will return peace and democracy despite scepticism at home and abroad.- General non grata -Min Aung Hlaing was born in Dawei city in Myanmar’s elongated southern reach, studying at university before enrolling into officer training school — albeit on his third attempt.He rose through the ranks, burnishing his credentials by leading a campaign battling an ethnic rebel insurrection around crucial trade crossings with China.His predecessor Than Shwe directly ruled Myanmar for nearly two decades, but it was Min Aung Hlaing’s rare fate to be a top general under civilian command.A military-drafted constitution still gave him a central role in politics, though, with a quarter of parliamentary seats and essential cabinet positions reserved for his officers.Before the coup, Min Aung Hlaing was already persona non grata in many countries for commanding a 2017 military crackdown on the Rohingya minority that drove around 750,000 people into Bangladesh.He was banned from Facebook for stoking hate speech, heavily sanctioned, and the International Criminal Court’s chief prosecutor is seeking his arrest for crimes against humanity.Min Aung Hlaing has said military operations were justified to root out insurgents and steadfastly denies allegations of human rights abuses.He also embarked on an ambitious and expensive programme to outfit the army with modern equipment, sourcing weapons and hardware from China, Russia and Israel.Every March 27 he oversees a parade of troops and materiel in the capital Naypyidaw for Armed Forces Day, standing on an open-top jeep and festooned with his many military and civilian awards.His official title in state media is “State Security and Peace Commission Chairman Commander-in-Chief of Defence Services Senior General Thadoe Maha Thray Sithu Thadoe Thiri Thudhamma Min Aung Hlaing”.But as his nomenclature has become longer, the number of soldiers assembled for inspection has shrunk each year with embattled forces deployed to frontlines elsewhere.- Reinforced rule -In 2021 Min Aung Hlaing was about to turn 65 — mandatory military retirement age at the time — when he toppled Suu Kyi’s democratically elected government and jailed her.He claimed her National League for Democracy party had swept a landslide electoral victory over pro-military parties by means of voter fraud.Analysts at the time said he was probably anxious about the military’s waning power.Security forces crushed pro-democracy protests, but activists quit the cities to fight as guerrillas alongside ethnic rebels — including those Min Aung Hlaing battled earlier in his career.There is no official death toll for Myanmar’s civil war and estimates vary widely.According to non-profit organisation Armed Conflict Location & Event Data (ACLED), which tallies media reports of violence, 90,000 have been killed on all sides since the coup.That number almost certainly includes conscripts the military has begun forcibly recruiting to bolster its ranks.Min Aung Hlaing ruled by fiat as military chief over four years of emergency rule after the coup.He ended the state of emergency this summer and handed back power to the president’s office — which he also occupies.Many analysts, democracy monitors and Myanmar citizens believe the election is most likely to see a power transfer from Min Aung Hlaing to himself.