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Indonesia has banned the sale of Google Pixel phones over the tech giant’s failure to meet investment regulations, its industry ministry said, days after blocking sales of Apple’s iPhone 16.Jakarta is seeking to boost investment from foreign tech companies with restrictive measures that require their phones to be 40 percent sourced from parts in Indonesia.”We declared that as long as those products don’t… meet the scheme we have required, they cannot be sold in Indonesia,” industry ministry spokesperson Febri Hendri Antoni Arif told a press briefing Thursday.”For Google Pixel, they have not obtained the TKDN certificate,” he added, using the acronym of the scheme that imposes the 40 percent rule.Google Indonesia did not immediately respond to an AFP request for comment.Southeast Asia’s biggest economy has a young, tech-savvy population with more than 100 million people under the age of 30 that tech companies are seeking to capitalise on.Around 22,000 Google Pixel phones had entered Indonesia this year, according to industry ministry data.Indonesia’s smartphone market shipment share in the second quarter of the year was dominated by China’s Xiaomi, Oppo and Vivo, as well as South Korea’s Samsung, according to Counterpoint Research.The ministry said last week phones blocked from commercial sale could still be carried into Indonesia as long as they were not being traded.It said iPhone 16 phones had also not met the 40 percent local part requirement.Apple does not have an official store in Indonesia, but chief executive Tim Cook visited in April as the firm explores ways to invest in the country.

Global stocks slid Thursday as investors fretted over results from tech giants and remained risk-averse ahead of a coin-toss US election.Data showing the US Federal Reserve’s preferred inflation measure cooled further last month — and now sits just above its long-term target — failed to boost sentiment, despite being a positive sign for future interest-rate cuts.All three major US indices fell, with the tech-rich Nasdaq Composite Index falling nearly three percent.Both Microsoft and Meta topped earnings estimates, but saw their share prices tumble after signaling plans to ratchet up AI investments. Microsoft ended down 6.1 percent while Meta lost 4.1 percent.”Earnings expectations have been high and they’re meeting, but they’re not meeting to the same degree they were,” said Jack Ablin, chief investment officer at Cresset Capital Management.Analysts have also been monitoring the rise in US Treasury bond yields amid expectations the Federal Reserve may back off significant interest rate cuts, amid US economic data that has generally been solid. “With the US election just around the corner, many investors are adopting a more cautious stance, sparking speculation of a much-anticipated correction in the S&P 500,” said City Index and FOREX.com analyst Fawad Razaqzada.The uncertainty of whether Kamala Harris or Donald Trump will emerge victorious in Tuesday’s election buoyed safe haven gold, which touched a fresh high of $2,790.10 an ounce on Thursday. In Europe, both Frankfurt and Paris ended the day lower around one percent after official data showed the eurozone’s annual inflation rebounded more than expected in October due to rising food costs.Shares in French bank Societe Generale jumped over 11 percent after it reported better-than-expected results. Meanwhile its rival BNP Paribas saw its shares slump nearly five percent after results fell short of expectations.London shed 0.6 percent after the new center-left government unveiled major tax hikes, mainly targeted at businesses, in its maiden budget. “This was one of the largest increases in tax, spending and borrowing in the UK’s budget history,” said Kathleen Brooks, research director at XTB.”For a government that planned to boost growth, they have fallen spectacularly at the first hurdle,” she added.Tokyo fell by half a percent, weighed down by a stronger yen and a drop in stocks linked to the semiconductor industry, which also dipped on Wall Street.The Bank of Japan decided to leave its main interest rate unchanged, saying in an outlook report that there were “high uncertainties surrounding Japan’s economic activities and prices.”Mainland Chinese markets, however, made healthy gains following a forecast-beating manufacturing report — in a piece of rare good news for leaders struggling to boost activity in the world’s second-largest economy.Oil prices continued their rebound, fueled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply.- Key figures around 2030 GMT -New York – Dow: DOWN 0.9 percent at 41,763.46 (close)New York – S&P 500: DOWN 1.9 percent at 5,705.45 (close)New York – Nasdaq Composite: DOWN 2.8 percent at 18,095.15 (close)London – FTSE 100: DOWN 0.6 percent at 8,110.10 (close)Paris – CAC 40: DOWN 1.1 percent at 7,350.37 (close)Frankfurt – DAX: DOWN 0.9 percent at 19,077.54 (close)Tokyo – Nikkei 225: DOWN 0.5 percent at 39,081.25 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 20,317.33 (close)Shanghai – Composite: UP 0.4 percent at 3,279.82 (close)Euro/dollar: UP at $1.0883 from $1.0856 on WednesdayPound/dollar: DOWN at $1.2896 from $1.2981Dollar/yen: DOWN at 152.00 yen from 153.42 yenEuro/pound: UP at 84.38 from 83.63 penceBrent North Sea Crude: UP 0.8 percent at $73.16 per barrelWest Texas Intermediate: UP 1.0 percent at $69.26 per barrelburs-jmb/nro

Global stocks slid Thursday as investors digested disappointing tech results and remained risk-adverse ahead of a coin-toss US election.Data showing the US Federal Reserve’s preferred inflation measure cooled further last month and now sits just above its long-term target — a positive sign for future interest-rate cuts — failed to boost sentiment.Microsoft and Facebook-parent Meta reported expectations-beating results Wednesday following the closing bell, but saw their share prices fall.”Both Microsoft and Meta topped earnings expectations, yet the stocks are being victimized by high expectations, valuation angst, and festering concerns about the timing and scope of returns on their massive AI investment activity,” said Briefing.com analyst Patrick O’Hare.Microsoft shares fell five percent after the opening bell. Meta shares slid 1.6 percent.”The response to their reports has tempered investor enthusiasm for the reports from Apple and Amazon.com after today’s close,” he added.Wall Street’s three main indices slid at the start of trading, with O’Hare also pointing to an increase in US government bond yields as also weighing upon equities.Stephen Innes of SPI Asset Management said traders were “wary of taking on new risk as the US election countdown begins”.Uncertainty over the outcome of the upcoming US elections, meanwhile, buoyed safe haven gold, which touched a fresh high of $2,790.10 an ounce on Thursday. In Europe, both Frankfurt and Paris were lower after official data showed the eurozone’s annual inflation rebounded more than expected in October due to rising food costs.Shares in French bank Societe Generale jumped over 10 percent after it reported better-than-expected results. Meanwhile its rival BNP Paribas saw its shares slump over four percent after results fell short of expectations.London shed 0.8 percent after the new centre-left government unveiled major tax hikes, mainly targeted at businesses, in its maiden budget. “This was one of the largest increases in tax, spending and borrowing in the UK’s budget history”, said Kathleen Brooks, research director at traders XTB.”For a government that planned to boost growth, they have fallen spectacularly at the first hurdle,” she added.Tokyo fell by half a percent, weighed down by a stronger yen and a drop in stocks linked to the semiconductor industry, which also dipped on Wall Street.The Bank of Japan decided to leave its main interest rate unchanged, saying in an outlook report that there were “high uncertainties surrounding Japan’s economic activities and prices”.Mainland Chinese markets, however, made healthy gains following a forecast-beating manufacturing report — in a piece of rare good news for leaders struggling to boost activity in the world’s second-largest economy.Oil prices continued their rebound, fuelled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply.- Key figures around 1330 GMT -New York – Dow: DOWN 0.8 percent at 41,938.08 pointsNew York – S&P 500: DOWN 0.8 percent at 5,768.215New York – Nasdaq Composite: DOWN 1.8 percent at 18263.77London – FTSE 100: DOWN 0.8 percent at 8,092.36Paris – CAC 40: DOWN 0.7 percent at 7,376.98Frankfurt – DAX: DOWN 0.5 percent at 19,171.51Tokyo – Nikkei 225: DOWN 0.5 percent at 39,081.25 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 20,317.33 (close)Shanghai – Composite: UP 0.4 percent at 3,279.82 (close)Euro/dollar: UP at $1.0883 from $1.0861 on WednesdayPound/dollar: UP at $1.2989 from $1.2969Dollar/yen: DOWN at 152.69 yen from 153.35 yenEuro/pound: UP at 83.80 from 83.75 penceBrent North Sea Crude: UP 1.2 percent at $72.99 per barrelWest Texas Intermediate: UP 1.3 percent at $69.47 per barrelburs-rl/cw

The EU on Thursday hit Chinese-founded shopping platform Temu with a probe over concerns the site is doing too little to stop the sale of illegal products, in an investigation that could lead to large fines.Extremely popular in the European Union despite having entered the continent’s market only last year, Temu has on average around 92 million monthly active users in the bloc.The investigation will also look at dangers from the platform’s use of gamification and “potentially addictive design” that could hurt users’ “physical and mental well-being,” said the European Commission, the EU’s powerful digital watchdog.The probe is being launched under a mammoth law known as the Digital Services Act (DSA) that forces the world’s largest tech firms to do more to protect European consumers online.”We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers,” EU tech chief Margrethe Vestager said in a statement.The EU wants to know more about the systems Temu has in place to “limit the sale” and how it avoids the “reappearance” of illegal products — once removed — such as pharmaceuticals, chemicals and toys as well as counterfeit goods.The company said it “takes its obligations under the DSA seriously”.”We will cooperate fully with regulators to support our shared goal of a safe, trusted marketplace for consumers,” a Temu spokesperson said in a statement.Temu is in talks about joining a European agreement facilitated by the commission that brings shopping platforms and others together to stop the sale of fake products online.- ‘Promising step’ -The company will also have to explain what measures it is taking to address any risks from its service, including game-like reward programmes.The probe comes after Temu submitted a risk assessment report to the EU, as well as replies to several demands for information, the latest issued on October 11.The firm can avoid fines if it makes commitments during the investigation that the EU believes alleviates its concerns.European consumer groups have previously warned that Temu breaches EU law.They lodged a complaint in May with the commission, accusing Temu of using “manipulative techniques” to make users spend more and other violations.Europe’s BEUC umbrella consumer rights group on Thursday welcomed the probe.”This decision by the commission is a promising step, but only the first. Now, it’s important the commission keeps up the pressure on Temu and pushes the company to comply with the law as soon as possible,” said BEUC’s Fernando Hortal Foronda.- Multiple probes -The EU probe will also look at Temu’s systems and how they recommend content and products to users and analyse the platform’s data access to researchers.Temu will also have to provide more details about the “parameters” of its recommender systems, which are used by platforms to push more personalised content.The EU stressed that the “opening of formal proceedings does not prejudge its outcome” and there is no deadline for the probe’s completion.Temu is among 25 “very large” online platforms that must comply with the DSA or risk fines that could reach as high as six percent of their global turnover, or even a ban for serious and repeated violations.Other shopping platforms that must comply with the DSA include Chinese online retailer AliExpress, US giant Amazon and Chinese-founded Shein.Other DSA investigations have targeted AliExpress, social media platform X, which is owned by tech billionaire Elon Musk and used to be called Twitter, as well as Facebook and Instagram owned by Meta.

European and Asian stocks were mostly down Thursday following a weak lead from Wall Street, as investors digested mixed company earnings and remained risk-adverse ahead of a coin-toss US election.Investors will also be eyeing US personal consumption expenditures data — the Federal Reserve’s prefered inflation measure — released later in the day for signals about the pace of future interest-rate cuts.The three main US stock indices lost ground on Wednesday, with shares in Microsoft and Facebook-parent Meta dropping in after-hours trading. Despite both tech giants delivering upbeat results, investors “baulked at the expectation of increased AI spending”, said Joshua Mahony, chief market analyst at Scope Markets.Analyst said that tech losses, including losses for the semiconductor industry, also led declines in European indices. Frankfurt retreated 0.5 percent and Paris lost 0.9, as official data showed the eurozone’s annual inflation rebounded more than expected in October due to rising food costs.Shares in French bank Societe General jumped over eight percent after it reported better-than-expected results. Meanwhile its rival BNP Paribas saw its shares slump around six percent after results fell short of expectations.London shed 0.8 percent after the new centre-left government unveiled major tax hikes, mainly targeted at businesses, in its maiden budget. “This was one of the largest increases in tax, spending and borrowing in the UK’s budget history”, said Kathleen Brooks, research director at traders XTB.”For a government that planned to boost growth, they have fallen spectacularly at the first hurdle,” she added.Tokyo fell by half a percent, weighed down by a stronger yen and a drop in stocks linked to the semiconductor industry, which also dipped on Wall Street.The Bank of Japan decided to leave its main interest rate unchanged, saying in an outlook report that there were “high uncertainties surrounding Japan’s economic activities and prices”.Stephen Innes of SPI Asset Management attributed Asian markets’ wobble to pre-vote “jitters”, saying traders were “wary of taking on new risk as the US election countdown begins”.Mainland Chinese markets, however, made healthy gains following a forecast-beating manufacturing report — in a piece of rare good news for leaders struggling to boost activity in the world’s second-largest economy.Uncertainty over the outcome of the upcoming US elections, meanwhile, buoyed safe haven gold, which touched a fresh high of $2,790.10 an ounce on Thursday. Oil prices continued their rebound, fuelled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply.- Key figures around 1110 GMT -London – FTSE 100: DOWN 0.8 percent at 8,093.07 pointsParis – CAC 40: DOWN 0.9 percent at 7,359.92Frankfurt – DAX: DOWN 0.5 percent at 19,159.72Tokyo – Nikkei 225: DOWN 0.5 percent at 39,081.25 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 20,317.33 (close)Shanghai – Composite: UP 0.4 percent at 3,279.82 (close)New York – Dow: DOWN 0.2 percent at 42,141.54 points (close)Euro/dollar: UP at $1.0865 from $1.0861 on WednesdayPound/dollar: UP at $1.2986 from $1.2969Dollar/yen: DOWN at 152.69 yen from 153.35 yenEuro/pound: DOWN at 83.64 from 83.75 penceBrent North Sea Crude: UP 0.5 percent at $72.52 per barrelWest Texas Intermediate: UP 0.5 percent at $68.94 per barrel

Hong Kong’s economic growth in the third quarter missed analyst estimates as private consumption weakened, according to government figures released Thursday.Real gross domestic product (GDP) between July and September grew by 1.8 percent year-on-year, well down from a forecast of 3.1 percent growth from economists surveyed by Bloomberg.Hong Kong’s economic recovery after the pandemic has largely mirrored China’s trajectory, which has also saw slowing growth over the past year.For the first three quarters, Hong Kong’s real GDP increased by 2.6 percent on-year, according to advance estimates from the Census and Statistics Department.Hong Kong’s economy “continued to expand, though at a moderated pace, in the third quarter”, a government spokesperson said.The city’s economy should continue to grow in the remainder of the year, even though global economic uncertainties and trade conflicts may affect exports, the spokesperson said.”Monetary easing across major central banks and an improved outlook for the Mainland (Chinese) economy following the recent introduction of a wide range of stimulus measures would help support sentiment and activities in the domestic market.”Private consumption decreased by 1.4 percent in the third quarter, which authorities attributed to “the change in residents’ consumption patterns”.Total export of goods increased by 3.9 percent in the same period, which the government described as “decelerated year-on-year growth alongside softening economic growth in some major markets”.Increasing cross-border activities between Hong Kong and China contributed to a “mild increase” of 2.4 percent in export of services.Hong Kong leader John Lee announced a range of policies to bolster the city’s lacklustre economy this month, including a proposal to enhance international gold trading.Lee also slashed the import duty on strong liquor and laid out plans to attract foreign capital to Hong Kong.

South Korea’s Samsung Electronics said Thursday that its operating profits soared 277 percent on-year to $6.6 billion but missed expectations as it struggled to leverage demand for chips used in artificial intelligence servers.The world’s largest memory chip maker posted an operating profit of 9.18 trillion won ($6.6 billion) “largely due to one-off costs”.It also warned in a statement that “the strength of the Korean won against the US dollar resulted in a negative impact on company-wide operating profit”.Although operating profit nearly tripled compared with a year ago, it fell short of market expectations and was down 12 percent compared with the previous quarter. Revenue rose 17.35 percent to 79.1 trillion won ($57.2 billion), its highest quarterly record, Samsung said.The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the biggest of the family-controlled conglomerates that dominate business in Asia’s fourth-largest economy.Semiconductors are the lifeblood of the global economy, used in everything from kitchen appliances and mobile phones to cars and weapons.The company’s semiconductor division reported 3.86 trillion won in operating profit, a 40 percent decrease from last quarter.Samsung said its performance had decreased due to “a reduced reversal of inventory valuation loss compared to the previous quarter, one-off expenses such as the provision of incentives, and currency effects due to a weak dollar”.Samsung’s third quarter results “were weak although the company has maintained a strong balance sheet,” Gloria Tsuen, Moody’s Ratings vice president and senior credit officer told AFP. “The key for its earnings in the next 12 to 18 months will be progress and growth in high value-added products for AI, including HBM3E and high-density server memory chip products,” she said.  – Rare apology -Samsung has been lagging behind South Korean giant SK hynix when it comes to high-bandwidth memory (HBM) chips used in AI chipsets, which experts have blamed for the lacklustre results.Earlier this month, Samsung management issued a rare apology, acknowledging the company was facing a “crisis”.”Due to results that fell short of market expectations, concerns have arisen about our fundamental technological competitiveness and the future of the company, said the statement, which was signed by Jun Young-hyun, vice chairman of the company’s device solutions division.”Our management will take the lead in overcoming the crisis… We will make the serious situation we are currently facing an opportunity for a resurgence.”The apology came about a week after the tech giant said it intended to reduce staff in some of its Asia operations, describing the move as “routine workforce adjustments”.Bloomberg reported the layoffs could affect about 10 percent of the workforce in those markets.Samsung shares have dropped by 33 percent since their peak in July, and the company has lost over $120 billion in market value during that time.The market capitalization gap between Samsung Electronics and SK hynix reached its narrowest level in 13 years last week.Samsung Electronics shares rose 0.17 percent on Thursday, outperforming the benchmark KOSPI index, which fell by 1.45 percent.- Robust AI demand -For the next quarter, Samsung expects current demand for the memory business to continue and aims to “strengthen its business fundamentals” by normalising inventory levels.”In the fourth quarter, while memory demand for mobile and PC may encounter softness, growth in AI will keep demand at robust levels,” it added.Experts said falling prices in the memory sector could affect Samsung. However, Samsung is expected to increase shipments of its most advanced chips next quarter, according to Avril Wu, senior research vice president at TrendForce. “The company’s fourth-quarter profits will be sustainable,” she said.But if Samsung does not get the certification of its high-capacity HBM3E chips in time, “it will pressure Samsung’s gross profit performance”, she added. 

Asian stocks were mostly down on Thursday following a weak lead from Wall Street, though better-than-expected manufacturing data from China provided a glimmer of good news for local markets.The three main US stock indices lost ground on Wednesday, and Asian investors appeared to be in a risk-averse mood ahead of a coin-toss US election and after a widely expected decision by the Bank of Japan to leave its main interest rate unchanged.Tokyo fell by half a percent, weighed down by a stronger yen and a drop in stocks linked to the semiconductor industry, which also dipped on Wall Street.The Bank of Japan said in an outlook report accompanying its rate announcement that there were “high uncertainties surrounding Japan’s economic activities and prices”.Its decision to stand pat came after an election that saw the ruling coalition lose its majority in the lower house for the first time since 2009.Businesses and economists worry that Prime Minister Shigeru Ishiba will offer tax cuts and higher spending, and go slow on reforms needed to improve Japan’s competitiveness as he courts support from other parties.There are also concerns that the government may pressure the BoJ to take a break from its gradual normalisation of its ultra-loose monetary policy, even if it leads to a weaker yen.The bank raised borrowing costs in March for the first time since 2007, and did so again in July.It signalled Thursday that it would raise rates yet again if inflation developed as it expected, and noted it was paying “due attention” to other economies, particularly the United States, where the presidential election takes place on November 5.Seoul was well down on Thursday, with Hong Kong, Sydney, Wellington, Mumbai and Manila in the red as well.Stephen Innes of SPI Asset Management attributed Asian markets’ wobble to pre-vote “jitters”, saying traders were “wary of taking on new risk as the US election countdown begins”.”The fear? A Trump win could trigger fresh tariffs on Asian exports, sending ripples across the region,” he wrote.Paris, London and Frankfurt also began the day with losses.Mainland Chinese markets, however, bucked the trend, with healthy gains in Shanghai and Shenzhen following a forecast-beating manufacturing report from China.Factory output expanded this month for the first time since April, official data showed Thursday, rare good news for leaders struggling to boost activity in the world’s second-largest economy.The country is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt — all of which threaten Beijing’s official growth target of five percent for this year.”The PMIs have overstated the weakness in China’s economy during the past year,” Julian Evans-Pritchard of Capital Economics said in a note.”The good news is that, after turning a corner in September, the official surveys point to a further improvement in October, with an acceleration in manufacturing and services activity more than offsetting a further slowdown in construction.”Jakarta and Bangkok were also up, while Taipei was closed due to a typhoon.Uncertainty over the outcome of the upcoming US elections, meanwhile, buoyed safe haven gold, which touched a fresh high just shy of $2,790 an ounce on Thursday. And oil prices continued their rebound in Asian trade, fuelled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply.- Key figures around 0820 GMT -Tokyo – Nikkei 225: DOWN 0.5 percent at 39,081.25 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 20,317.33 (close)Shanghai – Composite: UP 0.4 percent at 3,279.82 (close)London – FTSE 100: DOWN 0.6 percent at 8,109.11Euro/dollar: DOWN at $1.0859 from $1.0861 on WednesdayPound/dollar: UP at $1.2988 from $1.2969Dollar/yen: DOWN at 152.05 yen from 153.35 yenEuro/pound: DOWN at 83.61 from 83.75 penceBrent North Sea Crude: UP 0.1 percent at $72.63 per barrelWest Texas Intermediate: UP 0.1 percent at $68.66 per barrelNew York – Dow: DOWN 0.2 percent at 42,141.54 points (close)

The Bank of Japan warned Thursday of “high uncertainties” following the ruling party’s worst election result in 15 years, as it kept interest rates unchanged.Prime Minister Shigeru Ishiba’s coalition lost its majority in Sunday’s snap vote, likely forcing him to head a minority government with support from other parties to pass legislation.Businesses and economists worry that as concessions to other parties, Ishiba, 67, will offer tax cuts and higher spending, and go slow on reforms needed to improve Japan’s competitiveness.There are also concerns that the government may pressure the BoJ to take a break from the gradual normalisation begun this year of its ultra-loose monetary policy, even if it leads to a weaker yen.Yuichiro Tamaki, head of the opposition Democratic Party for the People (DPP) — which Ishiba has been courting for support — on Tuesday urged the BoJ “to avoid making big policy changes now”.For a long time, the BoJ was an outlier among major central banks, sticking to its ultra-loose policy to spur inflation after the “lost decades” of stagnant or falling prices.The BoJ ditched negative rates in March, lifting borrowing costs for the first time since 2007 and then again in July — signalling more was to come.The BoJ on Thursday kept its main short-term policy rate at 0.25 percent, as widely expected, warning of “high uncertainties surrounding Japan’s economic activity and prices”.The bank also said it was paying “due attention” to other economies, particularly the United States ahead of presidential elections on November 5.The BoJ again signalled that it would raise borrowing costs if inflation develops as it expects, saying the Japanese economy “is likely to keep growing at a pace above its potential growth rate”.The central bank said it expected inflation of 2.5 percent for the current fiscal year to March 2025 before moderating to 2.0 percent in the following two years.- Outlier -Before becoming leader of the Liberal Democratic Party (LDP) in September, Ishiba openly backed the BoJ continuing to normalise its policy.But after the yen surged and stocks tumbled once he took office he rowed back, saying he did not believe Japan was “in the environment for further rate hikes”.The head of the LDP’s junior coalition partner Komeito, meanwhile, announced his resignation from the post on Thursday after his party lost eight seats in the election, including his own.The election left Komeito and the LDP, which has governed Japan almost non-stop since 1955, with a combined 215 seats, 18 short of a majority in the 465-lawmaker lower house.The centrist DPP, which won 28 seats, officially told the LDP on Thursday it would not join a coalition, but agreed to “cooperate on a case-by-case basis”.A special legislative session will convene on November 11 for a vote to name the next prime minister, with Ishiba lacking enough support to maintain his position in the first round.Whoever wins the most votes in a second round will become premier, even without a majority.The DPP said it will symbolically back its leader Yuichiro Tamaki, effectively blocking the main opposition leader Yoshihiko Noda from gathering enough support for his own bid.Former premier Noda is head of the Constitutional Democratic Party (CDP), which reinforced its position as the second-biggest with 148 seats, up from 96 at the last election.”As far as the vote for the premiership, we communicated (to the LDP) that for the first and second rounds, we will vote Yuichiro Tamaki,” DPP secretary general Kazuya Shimba said after meeting with LDP executives.Stefan Angrick, an economist at Moody’s Analytics, said that “abrupt policy shifts” were possible and that the longevity of Ishiba’s government was in doubt.”With the yen weakening, we expect another rate hike before the end of the year,” Angrick said.”Although some members of the LDP and opposition currently oppose rate hikes, we expect those voices to fade if the yen tumbles further.”

China’s manufacturing output expanded this month for the first time since April, official data showed Thursday, rare good news for leaders struggling to boost activity in the world’s second-largest economy.The country is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt — all of which threaten Beijing’s official growth target for this year.In October, China’s Purchasing Managers’ Index (PMI) — a key measure of industrial output — was 50.1, the National Bureau of Statistics (NBS) announced, up from 49.8 in September.A figure above 50 indicates an expansion in manufacturing activity, while a reading below that indicates a contraction.The key indicator had slid for six months, with the last positive PMI recorded in April, when it stood at 50.4.The October data also outperformed a forecast of 49.9 by analysts surveyed by Bloomberg.The NBS said Thursday’s data release showed the “business climate of the manufacturing industry has rebounded”.”The 50.1 level is the smallest possible expansion for the PMI but nonetheless bucks expectations for continued contraction,” wrote Lynn Song, chief economist for Greater China at ING.The latest data “is a positive sign that the small bounce back of industrial production that we saw in September could continue,” Song added.Beijing has in recent weeks unveiled a slew of measures to funnel cash into the economy, including several key rate cuts and looser restrictions on home-buying.Zhang Zhiwei, president and chief economist of Pinpoint Asset Management, said in a note Thursday that he expected “economic momentum to improve moderately… as monetary and fiscal policies loosened”.But many investors say they are still waiting to see official confirmation of a major fiscal stimulus plan, expected to come at a meeting of top officials next week.- ‘Further improvement’ -The standing committee of the National People’s Congress — China’s rubber-stamp parliament — will gather in Beijing from November 4 to 8 for deliberations that state media say will involve economic planning.”The PMIs have overstated the weakness in China’s economy during the past year,” wrote Julian Evans-Pritchard of Capital Economics in a note.”Official surveys point to a further improvement in October, with an acceleration in manufacturing and services more than offsetting a further slowdown in construction,” he added.Beijing is targeting annual growth this year of around five percent — a goal that officials have recently insisted is within reach.The International Monetary Fund revised its forecast for China’s growth this year down slightly to 4.8 percent in a report published last week.Zhang, of Pinpoint Asset Management, wrote that he thought Beijing’s growth goal has been “transmitted into actions”, adding that he expects “more hints” on China’s upcoming economic policy after next week’s election in the United States.