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The G20’s role in fixing economic crises is threatened by geopolitical fractures, leaders warned Saturday at a summit in South Africa boycotted by the United States.European leaders attending the G20 summit — the first held in Africa — huddled on its sidelines to push back at a unilateral plan by US President Donald Trump aimed at ending the war in Ukraine on terms favouring Russia.In a joint statement issued with Canada and Japan, they said Trump’s plan needs “additional work” as it would leave Ukraine “vulnerable”. They added that some of its points required “the consent of EU and NATO members”.Speaking at the opening of the summit, one of the statement’s signatories, French President Emmanuel Macron, said: “We are struggling to resolve major crises together around this table.”He warned that, given fissures in international cooperation, “the G20 may be coming to the end of a cycle”.”There’s no doubt, the road ahead is tough,” agreed British Prime Minister Keir Starmer — who also signed the statement — adding: “We need to find ways to play a constructive role again today in the face of the world challenges.”Chinese Premier Li Qiang said “unilateralism and protectionism are rampant” and “many people are pondering what exactly is happening to global solidarity.”But the summit’s host, President Cyril Ramaphosa, argued the G20 remained key for international cooperation.”The G20 underscores the value of the relevance of multilateralism. It recognises that the challenges that we face can only be resolved through cooperation, collaboration and partnership,” Ramaphosa said.- Concern for Ukraine -The G20 comprises 19 countries plus the European Union and the African Union, and accounts for 85 percent of the world’s GDP and two-thirds of its population.The Johannesburg summit was undermined by the American boycott, and China’s Li stood in for an absent President Xi Jinping, while Russia sent a Kremlin official, Maxim Oreshkin, instead of President Vladimir Putin, who is wanted under an International Criminal Court warrant. The leaders present adopted a summit declaration covering climate, energy, debt sustainability and a critical-minerals pact — along with a joint call for a “just” peace in Ukraine, the Democratic Republic of Congo, Sudan and the “Occupied Palestinian Territory”.Following the opening ceremony, Starmer, Macron and German Chancellor Friedrich Merz rushed into a meeting to discuss Trump’s plan for Ukraine, joined soon after by other leaders from Europe, Australia, Canada and Japan.Afterwards all of them, except Australian Prime Minister Anthony Albanese, issued a statement saying the “draft” US plan had some “important elements” but “will require additional work”.”Borders must not be changed by force,” they said, adding they were “also concerned by the proposed limitations on Ukraine’s armed forces, which would leave Ukraine vulnerable to future attack”.- ‘Progress’ sought -European Council President Antonio Costa said on X the leaders of all 27 EU nations would hold a follow-up meeting on Monday, on the sidelines of a European Union-African Union summit in Angola.Security officials from Britain, France and Germany were to meet US and Ukrainian counterparts on Sunday in Switzerland to seek “progress” on the US plan, both Starmer and Macron said. Macron, speaking to journalists, said a “coalition of the willing” of some 30 nations backing Ukraine would on Tuesday follow up with a video call to coordinate and “to take new initiatives”.Trump has said he wants Kyiv to accept his 28-point proposals — which involve ceding territory to Russia and cutting the size of Ukraine’s military — by Thursday.The United States said it skipped the Johannesburg summit because it viewed its priorities — including on trade and climate — as running counter to its policies.But it said it would send the US charge d’affaires at its embassy in South Africa on Sunday to accept the handover of the next G20 presidency.Trump has said he intends to hold the 2026 summit at a Florida golf club that he owns.

The G20’s role in fixing economic crises is threatened by geopolitical fractures, leaders warned Saturday at a summit in South Africa boycotted by the United States.European leaders attending the G20 summit — the first held in Africa — huddled on its sidelines to push back at a unilateral plan by US President Donald Trump aimed at ending the war in Ukraine on terms favouring Russia.In a joint statement issued with Canada and Japan, they said Trump’s plan needs “additional work” and some of its points required “the consent of EU and NATO members”.Speaking at the opening of the summit, one of the statement’s signatories, French President Emmanuel Macron said: “We are struggling to resolve major crises together around this table.”He warned that, given fissures in international cooperation, “the G20 may be coming to the end of a cycle”.”There’s no doubt, the road ahead is tough,” agreed British Prime Minister Keir Starmer — who also signed the statement — adding: “We need to find ways to play a constructive role again today in the face of the world challenges.”Chinese Premier Li Qiang said “unilateralism and protectionism are rampant” and “many people are pondering what exactly is happening to global solidarity”.But the summit’s host, South African President Cyril Ramaphosa, downplayed Trump’s absence and argued the G20 remained key for international cooperation.”The G20 underscores the value of the relevance of multilateralism. It recognises that the challenges that we face can only be resolved through cooperation, collaboration and partnership,” Ramaphosa said.The G20 comprises 19 countries plus the European Union and the African Union, and accounts for 85 percent of the world’s GDP and two-thirds of its population.- ‘Just’ peace in Ukraine -The Johannesburg summit was undermined by the American boycott, and China’s Li stood in for an absent President Xi Jinping, while Russia sent a Kremlin official, Maxim Oreshkin, instead of President Vladimir Putin, who is wanted under an International Criminal Court warrant. The leaders present adopted a G20 summit declaration early in their meeting that covered climate, energy, debt sustainability and a critical-minerals pact — along with a joint call for a “just” peace in Ukraine,  the Democratic Republic of Congo, Sudan and the “Occupied Palestinian Territory”.Argentina’s Foreign Minister Pablo Quirno — standing in for absent President Javier Milei, a Trump ally — objected to “how certain geopolitical issues are framed in the document”, specifically the Israel-Palestinian conflict. But Ramaphosa said that did not block the declaration’s adoption by the participants, who also included Indian Prime Minister Narendra Modi, Brazilian President Luiz Inacio Lula da Silva and Turkish President Recep Tayyip Erdogan.As soon as the opening ceremony was over, Starmer, Macron and German Chancellor Friedrich Merz rushed into a meeting to discuss Trump’s plan for Ukraine, and were soon joined by other leaders from Europe, Australia, Canada and Japan, an EU official said.After the meeting all of them, except Australian Prime Minister Anthony Albanese, issued a statement calling the US plan a “draft” with some “important elements” but that it “will require additional work”.”Borders must not be changed by force,” they said, adding they were “also concerned by the proposed limitations on Ukraine’s armed forces, which would leave Ukraine vulnerable to future attack”.European Council President Antonio Costa said on X the leaders of all 27 EU nations would hold a follow-up meeting on Monday, on the sidelines of a European Union-African Union summit in Angola. Several sources at the G20 summit, speaking on condition of anonymity, said security officials from Britain, France and Germany would meet US counterparts on Sunday in Switzerland, where US-Ukraine talks were to be held.Trump has said he wants Kyiv to accept his 28-point proposals — which involve ceding territory to Russia and cutting the size of Ukraine’s military — by Thursday.- Next G20 summit in US -While the United States skipped the Johannesburg summit because it said it viewed its priorities — including on trade and on climate — as running counter to its policies, it still intended to take up the G20 baton for the next gathering.Trump plans to stage that summit in 2026 at a Florida golf club he owns.Washington has said it will send the US charge d’affaires from its embassy in South Africa only for the handover ceremony on Sunday.

A US-European rift over the future of Ukraine threatened to overshadow a G20 summit that started in South Africa on Saturday marked by the absence of Donald Trump. The Johannesburg gathering was attended by a host of world leaders including French President Emmanuel Macron, Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, Brazilian President Luiz Inacio Lula da Silva and Turkish President Recep Tayyip Erdogan.But it was boycotted by the US president, with his government saying South Africa’s priorities — which include boosting global cooperation on trade and climate action — run counter to US policy.South African President Cyril Ramaphose, opening the event, implicitly rebuffed Trump’s absence by stressing that “multilateralism” was needed to help solve global challenges, including from “escalating geopolitical tensions”.The US president nonetheless loomed large at the first summit of the group of major economies to be held in Africa after he produced a surprise unilateral US plan to end the war in Ukraine largely in line with Russia’s goals.Leaders from Europe, Canada, Japan and Australia were to huddle on the sidelines of the summit on Saturday to “discuss the way ahead on Ukraine”, an EU official said.A European diplomatic source told AFP: “We are working on making the US plan something more able to be applied, based on previous dialogue.”Macron, German Chancellor Friedrich Merz and UK Prime Minister Keir Starmer on Friday, after a call with Ukrainian President Volodymyr Zelensky, stressed that any such plan needed the “joint support and consensus of European partners and NATO allies”.But Ukraine and its allies have only a few days to try to influence Washington’s 28-point proposal.Trump has warned that “Thursday is, we think, an appropriate time” for Ukraine to accept it.- Climate impasse -Another issue dogging the G20 summit was a deadlock at COP30 climate negotiations taking place in Brazil.Friday was meant to be the last day of those talks, which had gone on for nearly two weeks. But they have spilled into overtime because petro-states were accused of resisting any reference to a fossil fuel phaseout in the final text.Despite the headwinds, host South Africa stressed that international cooperation was key.”The G20 underscores the value of the relevance of multilateralism. It recognises that the challenges that we face can only be resolved through cooperation, collaboration and partnership,” Ramaphosa said.He said that a joint G20 summit leaders’ declaration, adopted at the start of the summit, “sends an important signal to the world that multilateralism can and does deliver”.The US boycott echoes Trump’s decision not to send an official delegation to the COP30, and reflects a general American withdrawal from international forums.Washington has said it would send its charge d’affaires from its embassy at the end of the Johannesburg meeting only for a handover ceremony, as the United States will host next year’s G20 summit at a golf club owned by Trump in Florida.The G20 is a grouping of 19 countries plus the European Union and the African Union. It represents 85 percent of global GDP and around two-thirds of the world’s population.

Shiina Ito has had fewer Chinese customers at her Tokyo jewellery shop since Beijing issued a travel warning in the wake of a diplomatic spat, but she said she was not concerned.A souring of Beijing-Tokyo relations this month, following remarks by Japanese Prime Minister Sanae Takaichi about Taiwan, has fuelled concerns about the impact on the ritzy boutiques, noodle joints and hotels where holidaymakers spend their cash.But businesses in Tokyo largely shrugged off any anxiety.”Since there are fewer Chinese customers, it’s become a bit easier for Japanese shoppers to visit, so our sales haven’t really dropped,” shop manager Ito told AFP.Chinese buyers normally make up half of the clientele at her business in the capital’s traditional Asakusa district, where crowds of tourists stroll through shop-lined alleys.Many tourism and retail businesses in Japan rely heavily on Chinese visitors, who spend more on average than other foreign tourists on everything from sushi to skincare.Some hotels, designer clothes shops and even pharmacies have Mandarin-speaking assistants, while department stores often have signs in Chinese.In Tokyo’s upscale Ginza district, Yuki Yamamoto, the manager of an Instagram-famous udon noodle restaurant, said he had not noticed any immediate impact on sales in the days since China warned its citizens to avoid Japan.”I don’t think there’s been any sudden, dramatic change,” he said, despite estimating that on a normal day around half the hungry diners who queue outside his door are Chinese.”Of course, if customers decrease, that’s disappointing for the shop. But Japanese customers still come regularly, so we’re not extremely concerned.”China is the biggest source of tourists to the archipelago, with almost 7.5 million visitors in the first nine months of 2025 — a quarter of all foreign tourists, according to official Japanese figures.Attracted by a weak yen, they splashed out the equivalent of $3.7 billion in the third quarter.Last year, each Chinese tourist spent on average 22 percent more than other visitors, according to the Japan National Tourism Organization.However, a record 36.8 million arrivals from across the globe last year has also led to fears of overtourism affecting the daily lives of many in Japan.- ‘Economic coercion’ -On November 7, Takaichi implied Tokyo could intervene militarily in any attack on Taiwan, a self-ruled island which China claims as part of its territory.Beijing then advised Chinese citizens to avoid travelling to Japan, and retail and tourism stocks subsequently plunged. Most have yet to recover.In response, Kimi Onoda, Japan’s hawkish minister of economic security, warned of the danger of “relying too heavily on a country that resorts to economic coercion whenever it is displeased”.That “poses risks not only to supply chains but also to tourism”, she said.Wu Weiguo, the manager of a travel agency in Shanghai, said that “the biggest impact is on group travel”, with 90 percent of his clients requesting refunds for planned Japan itineraries.But according to the national tourism board, only around 12 percent of Chinese visitors last year came to the archipelago as part of organised tours, down from almost 43 percent in 2015.Transport Minister Yasushi Kaneko said the issue was not “something to get all worked up about”, noting an increase in arrivals from other countries.- ‘Take time’ -Nevertheless, hotels in Japan that heavily depend on Chinese customers are feeling the effects.”Cancellations from travel agencies in China are coming one after another,” said Keiko Takeuchi, who runs the Gamagori Hotel in central Japan. “About 50 to 60 percent of our customers are Chinese nationals.”I hope the situation calms down quickly, but it seems it will take time,” she fretted.Beijing has made clear it was furious with Takaichi, summoning Tokyo’s ambassador and, according to Chinese state media, postponing the release of at least two Japanese movies.But travel agency manager Wu said that the spat would not stop holidaymakers dreaming of Tokyo.”They believe the service is high-quality and shopping is reasonably priced,” he said.”Chinese people will continue to want to visit Japan.”mac-kh-tjx-aph/ami/lb

A US-European rift over the future of Ukraine is set to overshadow a G20 summit starting in South Africa on Saturday further marked by Donald Trump’s pointed absence. The Johannesburg gathering is being attended by a host of world leaders including French President Emmanuel Macron, Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, Brazilian President Luiz Inacio Lula da Silva and Turkish President Recep Tayyip Erdogan.But Trump is boycotting, with his government saying South Africa’s priorities — notably boosting global cooperation on trade and climate action — run counter to US policy.The US president nevertheless loomed large at the event, the first summit of the group of major economies to be held in Africa, after producing a surprise unilateral US plan to end the war in Ukraine largely in line with Russia’s goals.Following an urgent call with Ukrainian President Volodymyr Zelensky, Macron, German Chancellor Friedrich Merz and UK Prime Minister Keir Starmer stressed that any such plan needed the “joint support and consensus of European partners and NATO allies”.On Saturday, European leaders are to meet on the sidelines of the summit to make it clear “that there should be nothing about Ukraine without Ukraine”, European Commission chief Ursula von der Leyen said.She said a follow-up meeting would be held at an EU-Africa Union summit in Angola on Monday and Tuesday.Trump has warned Ukraine it has a limited window to accept his administration’s 28-point plan, telling Fox News Radio that “Thursday is, we think, an appropriate time”.- Climate impasse -Another issue dogging the G20 summit was a deadlock at COP30 climate negotiations taking place in Brazil.Friday was meant to be the last day of those talks, which had gone on for nearly two weeks. But they threatened to drag on because petro-states were accused of resisting any reference to a fossil fuel phaseout in the final text.Despite the headwinds, host South Africa was projecting optimism that it would get backing for its G20 aims to reduce economic inequalities, shrink debt for low-income countries, secure help for clean-energy transitions and establish a critical minerals pact.”As South Africa, we are hoping that we will have the leaders’ declaration adopted, which will set a new and continuing agenda for the world, particularly the G20,” President Cyril Ramaphosa said late Friday.Political negotiators from the participating countries finalised on Friday a final draft joint text for the leaders to agree on, sources told AFP. They were not authorised to divulge the draft’s contents.It was uncertain the document would be a traditional summit statement, given the US boycott and a warning from Washington that no declaration in the name of the G20 should be issued.Ramaphosa, who has bristled at the US absence and the Trump government’s unfounded allegations of a “white genocide” in South Africa, has been joined by other leaders in stressing that the G20 was an important platform for multilateral cooperation. “Multilateralism is our best, maybe our only defence against disruption, violence and chaos. And South Africa put multilateralism to work,” Antonio Costa, European Council president, told a pre-summit press conference. The US boycott echoes Trump’s decision not to send an official delegation to the COP30.Washington has said it would send its charge d’affaires from its embassy at the end of the Johannesburg meeting only for a handover ceremony, as the United States will host next year’s G20 summit at a golf club owned by Trump in Florida.The G20 is a grouping of 19 countries plus the European Union and the African Union. It represents 85 percent of global GDP and around two-thirds of the world’s population.

Afghanistan is scrambling to diversify its trade partners after a deadly border clash with Pakistan last month brought ties to their lowest point in years, affecting people on both sides of the frontier.The South Asian neighbours have been locked in an increasingly bitter dispute since the Taliban took over Kabul in 2021, with Islamabad accusing Afghanistan of harbouring the militants behind cross-border attacks — charges the Taliban government denies.Abdul Ghani Baradar, Afghanistan’s deputy prime minister for economic affairs, urged traders last week to “redirect their trade toward other alternative routes instead of Pakistan”. Pakistan is landlocked Afghanistan’s top trading partner, supplying rice, pharmaceuticals and raw materials, while taking in 45 percent of Afghan exports in 2024, according to the World Bank. More than 70 percent of those exports, worth $1.4 billion, are perishable farm goods such as figs, pistachios, grapes and pomegranates. Dozens of Afghan trucks were stranded with rotting produce when the frontier shut on October 12 due to deadly cross-border fire, which was followed by a fragile truce. Losses have topped $100 million on both sides, and up to 25,000 border workers have been affected, according to the Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), which seeks to promote bilateral trade.Baradar warned traders that Kabul would not intervene if they kept relying on Pakistan.Wary of further disruptions, the Taliban government is now hedging its bets with Iran, Central Asia — and beyond.- Pomegranates to Russia -Trade with Iran and Turkmenistan has jumped 60–70 percent since mid-October, said Mohammad Yousuf Amin, head of the Chamber of Commerce in Herat, in western Afghanistan.Kabul also sent apples and pomegranates to Russia for the first time last month. Russia is the only country to have officially recognised the Taliban administration.Taliban leaders crave wider recognition and foreign investment, but sanctions on senior figures have made investors wary.The vast market in India is a prime attraction. On Sunday, state-owned Ariana Afghan Airlines cut freight rates to the country of 1.4 billion people.Two days later, Kabul sent its commerce and industry minister to New Delhi.”Afghanistan has too many fruits and vegetables it cannot store because there are no refrigerated warehouses,” said Torek Farhadi, an economic analyst and former IMF adviser. “Exporting is the only way,” he told AFP. And quickly, before the products spoil.Kabul touts Iran’s Chabahar port as an alternative to Pakistan’s southern harbours, but Farhadi noted it is farther, costlier and hampered by US sanctions on Tehran.- ‘Distraught’ -“It’s better for both countries to end this trade war… They need each other,” Farhadi said.Afghanistan relies on Pakistan’s market of 240 million people and its sea access, while Islamabad wants Afghan transit to reach Central Asia for textile and energy trade. Pakistan says the closure curbs militant infiltration, but its economy is also feeling the pinch.The spokesman for Pakistan’s foreign ministry said on Friday that Islamabad had reached its “threshold of patience” after recent attacks.”Either we get ourselves killed or we undertake very risky trade… This is a difficult choice that we have made,” spokesman Tahir Hussain Andrabi told a weekly briefing.”Can you put a price tag on a human life, on a Pakistani life?” he said.In Peshawar, near the frontier, Afghan produce has all but vanished from markets. Grapes cost four times more and tomatoes have more than doubled to over 200 rupees (70 cents) a kilogram, an AFP correspondent found.On Monday, the PAJCCI urged Islamabad to act, warning of mounting costs as shipping containers bound for Afghanistan and Central Asia remain stuck in Pakistan.Each container is racking up $150–$200 in daily port charges, the group said, adding: “With thousands of containers stuck, the collective economic burden has become unbearable and continues to grow with each passing day.”Truck driver Naeem Shah, 48, has been waiting at the Pakistani border town of Chaman with sugar and cooking oil bound for Afghanistan.”I haven’t been paid for a month. No matter who I call, they say there is no money because the border is closed,” he told AFP.”If it doesn’t reopen, we will be distraught.”

Japanese brewing giant Asahi aims to restore its systems after a major cyberattack that disrupted its operations by February, media reports said on Friday.The maker of Asahi Super Dry, one of Japan’s most popular beers, started experiencing system troubles on September 29, stopping its ability to receive orders and to ship products. It has blamed a ransomware attack.The brewer has informed its business partners of plans to return to normal product orders and shipments as early as February, public broadcaster NHK reported, citing unnamed sources.A source familiar with the issue, speaking to AFP on condition of anonymity, said that “the company is explaining to its business partners it aims to restore the system in February.”Asahi plans to hold a press conference next week to explain the cyberattack’s impact on business and to what extent personal information was leaked, and to share information about restoring its systems, NHK said.The business daily Nikkei reported similar details.Output at Asahi’s 30 domestic factories was not directly affected by the system shutdown but production had to stop due to the company-wide problem.The brewer said early last month production at six beer factories resumed, while it was processing orders by hand in an effort to swerve potential drinks shortages.

Japanese local authorities approved the restart of the world’s biggest nuclear plant on Friday for the first time since the 2011 Fukushima disaster.Hideyo Hanazumi, governor of Niigata province where the Kashiwazaki-Kariwa plant is located, told a news conference he “would approve” the resumption, which will need final permission by Japan’s nuclear regulator.The plant was taken offline when Japan pulled the plug on nuclear power after a colossal earthquake and tsunami sent three reactors at the Fukushima atomic plant into meltdown in 2011.However, the resource-poor nation now wants to revive atomic energy to reduce its heavy dependence on fossil fuels, achieve carbon neutrality by 2050 and meet growing energy needs from artificial intelligence.Fourteen reactors, mostly in western and southern regions, have resumed operation since the post-Fukushima shutdown under strict safety standards.The 400-hectare (1,000-acre) Kashiwazaki-Kariwa plant on the Sea of Japan coast facing the Korean peninsula would be the first restart for Fukushima operator Tepco since the disaster.The huge facility in central Japan has been fitted out with a 15-metre (50-foot) wall in case of tsunamis, new power backup systems on higher ground and other measures.Before the 2011 quake and tsunami, which killed around 18,000 people, nuclear power generated about a third of Japan’s electricity, with fossil fuels contributing most of the rest.Yoko Mulholland of climate think-tank E3G said that Prime Minister Sanae Takaichi, who came to power last month, is more focused than previous leaders on restarting nuclear power.”Takaichi places nuclear power capacity build-out and energy self-sufficiency more centrally in energy policy, without much emphasis on renewables expansion,” she said.Power company Kansai Electric said in July it was taking an initial step towards building the nation’s first new nuclear reactor since the Fukushima disaster.- Rising wind costs -Japan is the world’s fifth-largest single-country emitter of carbon dioxide, after China, the United States, India and Russia, and is heavily dependent on imported fossil fuels.Nearly 70 percent of Japan’s power needs in 2023 were met by power plants burning coal, gas and oil — a figure Tokyo wants to slash to 30-40 percent over the next 15 years.Almost all these fossil fuels must be imported, at a cost of around $500 million per day.Tokyo aims to make renewables its top power source by 2040.Under a plan approved by the government in February, nuclear power will account for around 20 percent of Japan’s energy supply by fiscal year starting in April 2040 — up from 8.5 percent in 2023/24.The country has also laid out ambitious new targets that should see wind’s contribution to the energy mix rise to between four and eight percent by the 2040 fiscal year — up from around one percent today.But costs for wind power are rising sharply; at the end of August Japanese conglomerate Mitsubishi pulled out of three key wind power projects deemed no longer profitable.Japan still faces the daunting task of decommissioning the Fukushima plant, a project that is expected to take decades.In August, Japanese technicians sent in remote-controlled robots to one of the damaged reactor buildings as part of preparations to remove radioactive debris.Dangerously high radiation levels make removing melted fuel and other debris a particularly tough challenge.

Japanese Prime Minister Sanae Takaichi insisted that a $135-billion stimulus package approved Friday was fiscally responsible and that she would reduce the country’s colossal debt burden.The 21.3-trillion yen outlay comes as the government looks to kickstart growth in the world’s number-four economy, ease the pain of inflation for households and restore the ruling party’s flagging popularity.However, expectations that the new premier would embark on a big-spending spree have pushed yields on Japanese government bonds to record highs this week and put pressure on the yen.”Responsible proactive fiscal policy means a forward-looking fiscal strategy and does not aim to pursue scale recklessly or expansively,” Takaichi said.”By thoroughly implementing the concept of wise spending, we will strategically deploy fiscal measures to protect the lives of our citizens and build a strong economy,” she added.”While fostering a strong economy and increasing the growth rate, we will reduce the government debt-to-GDP ratio, achieve fiscal sustainability and secure trust from the market.”Japan’s current debt amounts to around 250 percent of gross domestic product ratio, the highest among major economies.The bundle of measures from Japan’s fifth premier in as many years includes a one-off 20,000-yen ($127) cash handout per child and 7,000 yen per household for energy bills.Takaichi came to power last month pledging to fight inflation after anger over rising prices helped undo her predecessor, Shigeru Ishiba, who was in office barely a year.”Ordinary people are having it tough these days,” financial services employee Kazuo Kaitsuka, 75, told AFP on Friday near the Tokyo stock exchange.”I worry future generations might have to deal with the consequences of (the size of the stimulus). So I think a more moderate scale would have been better,” he said.A weaker yen raises prices of imports for resource-poor Japan, which relies heavily on foreign food, energy and raw materials to power its economy. “Japan has been engaged in expansionary economic policies for so long without being able to stimulate the economy,” said Margarita Estevez-Abe, an analyst at Syracuse University’s Maxwell School.”Meanwhile, Japan’s public debts increased. We are already seeing the negative reactions from the market… Further depreciation of the yen will hit ordinary Japanese households with higher prices,” she told AFP.Finance Minister Satsuki Katayama on Friday dropped the strongest hint yet that the government may intervene to support the yen, saying it will take “appropriate action against disorderly (foreign exchange) moves”.- Diplomatic spat -Official data earlier showed core inflation, which excludes fresh food, rose 3.0 percent year-on-year in October from 2.9 percent in September.Illustrating the strain on consumers, rice prices were 40 percent higher than last year, although the rate of inflation for the staple has slowed considerably in recent months.The reading came days after figures showed the economy shrinking 0.4 percent in the third quarter, the first contraction since the first three months of 2024.Further concern for the economy comes from Japan’s ongoing diplomatic spat with China following comments by Takaichi about Taiwan.Takaichi, seen as a China hawk, suggested earlier this month that Japan could intervene militarily in the event of any attack on Taiwan.China has summoned Tokyo’s ambassador and advised its citizens against travel to Japan, where Chinese account for the largest number of foreign tourists.China claims democratic Taiwan as part of its territory and has threatened to use force to bring the self-ruled island under its control.Takaichi on Friday insisted Tokyo’s stance on Taiwan was “unchanged” and that she wanted “constructive and stable” relations with Beijing.”(The) erroneous remarks made by… Takaichi regarding Taiwan, which imply the possibility of military intervention in the Taiwan Strait, have aroused public outrage and condemnation among the Chinese people,” China’s foreign ministry said in response on Friday.Japan should “immediately retract its erroneous remarks, and earnestly demonstrate its commitments to China through concrete actions”, said spokeswoman Mao Ning.burs-hih-tmo-stu/dan

Tech firms led more steep losses across Asian markets Friday as investors struggled to shake off fears about an AI bubble and after a sell-off on Wall Street sparked by jobs data dealt a further blow to hopes for a US interest rate cut.A blockbuster earnings report from chip bellwether Nvidia on Wednesday seemed to settle nerves that vast investments in the artificial intelligence sector may have been overdone.But the euphoria was short-lived as warnings grow that the tech-led rally across equities — which has seen several markets hit records and companies clock eye-watering capitalisations — may have run its course, and a correction could be in hand.In unveiling Nvidia’s forecast-topping report, boss Jensen Huang dismissed fears of a bubble that has caused global equities to wobble. “From our vantage point, we see something very different,” he said.After his firm sparked an Asia rally on Thursday, Wall Street began on a strong note, but later went into sharp reverse, with selling compounded by worries over the US labour market.Data showed that while more jobs were created in September, the unemployment rate crept higher. The reading did little to alter investors’ belief that the Federal Reserve will stand pat on borrowing costs when it meets next month, with officials more focused on stubbornly high inflation.Expectations had already been dampened by recent comments from decision-makers, including boss Jerome Powell, that were on the hawkish side.Tracking New York, Asian markets were a sea of red, with tech giants leading the way.Seoul-listed Samsung Electronics sank nearly five percent and rival SK hynix more than nine percent — the firms are two of the world’s leading memory chip makers.Another chip titan, TSMC, tanked nearly four percent in Taiwan, while Japan’s SoftBank plunged more than 10 percent in Tokyo.That led broader markets lower.Tokyo, Hong Kong, Seoul, Sydney and Taipei were all down between 1.6 percent and 3.2 percent. There were also losses in Shanghai, Singapore and Wellington.The rush from risk assets also saw bitcoin fall below the $93,000 mark for the first time since April, extending a sell-off suffered since its record high above $126,200 touched just last month.”The price action across markets has been prolific, and we’ve seen some truly impressive reversals in risk assets,” said Chris Weston at Pepperstone.”Sentiment in so many markets remains highly challenged, and we’ve seen new evidence that managers are dumping their 2025 winners — raising expectations that the path of least resistance is for risk to trade lower in the near-term.”The market seems far more sensitive and ready to de-risk on emerging news, almost seeking reasons to take positioning down when that news could easily be seen as a positive in a more bullish set-up.”Eyes are also on Tokyo, where there is talk that Japanese Prime Minister Sanae Takaichi will unveil a huge stimulus package worth around $130 billion to boost the stuttering economy.But government bond yields have soared in recent days on warnings that the spending will likely need even more borrowing, fanning concerns about the country’s fiscal state and putting huge pressure on the yen.The Japanese currency has fallen this week to its lowest level against the dollar since January, though it got a little support from data showing core inflation ticked up last month, giving the Bank of Japan some room to hike interest rates.- Key figures at around 0200 GMT -Tokyo – Nikkei 225: DOWN 1.8 percent at 48,947.66Hong Kong – Hang Seng Index: DOWN 1.7 percent at 25,393.93Shanghai – Composite: DOWN 1.0 percent at 3,892.76Dollar/yen: DOWN at 157.38 yen from 157.55 yen on ThursdayEuro/dollar: UP at $1.1535 from $1.1525Pound/dollar: UP at $1.3083 from $1.3070Euro/pound: DOWN at 88.15 from 88.18 penceWest Texas Intermediate: DOWN 1.1 percent at $58.36 per barrelBrent North Sea Crude: DOWN 1.0 percent at $62.73 per barrelNew York – Dow: DOWN 0.8 percent at 45,752.26 (close)London – FTSE 100: UP 0.2 percent at 9,527.65 (close)