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Stock markets diverged Monday, with Paris dropping as France plunged further into political crisis after the prime minister’s resignation, while Tokyo surged on new leadership of its ruling party.Gold pushed on with its rise close to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal’s attractiveness.The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu resigned after less than a month in office and shortly after unveiling a largely unchanged cabinet. France’s “fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit”, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.”With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,” he added.Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed more than four percent in midday trading.Elsewhere, London and Frankfurt stock markets edged higher nearing the half-way mark, after Hong Kong closed lower.Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan’s ruling party will loosen monetary policy to kickstart the economy.Sanae Takaichi, likely to become Japan’s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.The yen weakened more than one percent against the dollar and hit a record low against the euro.Yields on 30-year Japanese bonds rose sharply reflecting fears the country’s already colossal debt will balloon further.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.”She has said that the Bank of Japan should not raise interest rates, which is feeding demand for stocks and weighing on long term bond yield,” said Kathleen Brooks, research director at trading group XTB.”The decline in the yen is also a sign that the market is pricing out the prospect of BoJ rate hikes this year,” she added.US futures were all up on Monday, even as the closure of parts of the US government dragged into a second week.Federal agencies have been out of money since Wednesday — with several public services crippled — as a result of deadlocked talks over funding.The row meant key jobs data used by the Federal Reserve to guide it on monetary policy was not released as normal on Friday.Still, observers said recent reports indicating the labour market is slowing would likely be enough to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. Bitcoin hit a new peak of $125,689 on Sunday. Oil jumped more than one percent after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 1100 GMT -London – FTSE 100: UP 0.1 percent at 9,502.54 pointsParis – CAC 40: DOWN 1.3 percent at 7,975.29Frankfurt – DAX: UP 0.2 percent at 24,423.01Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)Shanghai – Composite: Closed for a holidayNew York – Dow: UP 0.5 percent at 46,758.28 points (close)Euro/dollar: DOWN at $1.1662 from $1.1742 on FridayPound/dollar: DOWN at $1.3423 from $1.3482Dollar/yen: UP at 150.29 yen from 147.45 yenEuro/pound: DOWN at 86.88 pence from 87.09 penceWest Texas Intermediate: UP 1.4 percent at $61.70 per barrelBrent North Sea Crude: UP 1.4 percent at $65.40 per barrel

Tokyo stocks surged almost five percent to a record high Monday and the yen sank on bets that the new leader of Japan’s ruling party will embark on a new era of loose monetary policy to kickstart the country’s economy.The gains, however, came on a mixed day for the rest of Asia, while Paris tumbled more than two percent on news that France’s newly appointed prime minister had stepped down, compounding a political crisis in the country.News of the victory for Sanae Takaichi — who is expected to become prime minister this month — fanned a fresh wave of optimism on Japanese trading floors as she has previously backed aggressive monetary easing and expanded government spending.Expectations the Federal Reserve will cut interest rates this month continue to support risk assets, with the S&P 500 and Dow both hitting peaks along with bitcoin and gold.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries.Takaichi “looks more inclined than the others to juice the economy”, said Taro Kimura at Bloomberg Economics.”Still, with inflation rising and long-term (bond) yields climbing, she will have to balance her stance with reality, in order not to accelerate cost-of-living squeeze and jolt the rate market,” Kimura added.The Nikkei 225’s surge came as the yen weakened more than one percent to top 150 per dollar, while it hit a record low against the euro, touching 176.25 to the single currency.”An immediate market reaction is likely to be a return of a so-called ‘Takaichi trade’, which means higher equity prices (except banks), yen depreciation, and higher super-long bond yields,” said Masamichi Adachi, UBS Securities chief economist for Japan.Yields on 30-year Japanese bonds also rose sharply, reflecting fears the country’s already colossal debt will balloon further.Takaichi’s win also raised questions about the chances of more Bank of Japan rate hikes, adding to downward pressure on the yen.There were also gains in Singapore and Mumbai, but Hong Kong, Sydney, Wellington, Manila and Bangkok were all in the red.Sentiment remains up, though, as bitcoin hit a new peak of $125,689 on Sunday.Gold pushed past $3,945 and closer to $4,000 Monday, with the US shutdown and expected rate cuts boosting its attractiveness.The plunge in Paris’s CAC 40 index came after France’s President Emmanuel Macron accepted Prime Minister Sebastien Lecornu’s resignation, plunging the country further into political deadlock.Macron appointed Lecornu last month but the largely unchanged cabinet lineup he unveiled late Sunday was met with fierce criticism across the political spectrum.London’s FTSE dipped in the morning, after ending last week at a record, while Frankfurt also sank.US futures were all up.The closure of parts of the US government dragged into a second week after senators voted for a fourth time to reject a funding fix proposed by Republicans.Federal agencies have been out of money since Wednesday — with several public services crippled — as a result of deadlocked talks.The row meant key jobs data used by the Fed to guide it on monetary policy was not released when due on Friday.Still, observers say recent reports indicating the labour market is slowing would likely be enough to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. “It’s still likely that the shutdown will end in relatively short order, allowing for the release of the September jobs report before the October (policy) meeting,” said economists at Bank of America.”But even if the first print of September payrolls is solid, doves on the committee will likely point to the recent trend of downward revisions to make the case to keep cutting. “And given (Fed chief Jerome) Powell’s recent dovish pivot, that argument is likely to carry the day.”Oil jumped more than one percent after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 4.8 percent at 47,944.76 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,957.77 (close)London – FTSE 100: DOWN 0.1 percent at 9,477.95Shanghai – Composite: Closed for a holidayDollar/yen: UP at 150.01 yen from 147.45 yenPound/dollar: DOWN at $1.3445 from $1.3482Euro/pound: DOWN at 86.75 pence from 87.09 penceEuro/dollar: DOWN at $1.1664 from $1.1742 on FridayWest Texas Intermediate: UP 1.3 percent at $61.66 per barrelBrent North Sea Crude: UP 1.3 percent at $65.34 per barrelNew York – Dow: UP 0.5 percent at 46,758.28 points (close)

Tokyo stocks surged more than four percent to a record high Monday and the yen sank on bets that the new leader of Japan’s ruling party will embark on a new era of loose monetary policy to kickstart the country’s economy.News of the victory for Sanae Takaichi — who is expected to become prime minister this month — fanned a fresh wave of optimism on Japanese trading floors as she has previously backed aggressive monetary easing and expanded government spending.But the rally in Tokyo was not matched in the rest of Asia, where markets were mixed following last week’s healthy advances and as investors keep tabs on lawmakers’ attempts to end a US government shutdown.However, expectations that the Federal Reserve will cut interest rates again this month continue to provide support to risk assets, with the S&P 500 and Dow both hitting peaks along with bitcoin and gold.After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan’s economy, rural areas and primary industries such as farming and fisheries.Takaichi “looks more inclined than the others to juice the economy”, said Taro Kimura at Bloomberg Economics.”Still, with inflation rising and long-term (bond) yields climbing, she will have to balance her stance with reality, in order not to accelerate cost-of-living squeeze and jolt the rate market,” Kimura added.The Nikkei 225’s surge came as the yen tumbled more than one percent to almost 150 per dollar, while it hit its lowest ever against the euro, sitting at 175.69 to the single currency.”An immediate market reaction is likely to be a return of a so-called ‘Takaichi trade’, which means higher equity prices (except banks), yen depreciation, and higher super-long bond yields,” said Masamichi Adachi, UBS Securities chief economist for Japan.Yields on 30-year Japanese bonds also rose sharply, reflecting fears that the country’s already colossal debts will balloon further under Takaichi.There were also gains in Singapore and Manila, but Hong Kong, Sydney and Seoul were all in the red. Shanghai is closed for a holiday.Sentiment remains up, though, after bitcoin hit a new peak of $125,689 on Sunday.Gold pushed past $3,924 and closer to $4,000 an ounce on Monday, with the US shutdown and expected rate cuts boosting its attractiveness.London’s FTSE also ended last week at a record. US futures were all up.The closure of parts of the government dragged into this week after senators voted for a fourth time to reject a funding fix proposed by President Donald Trump’s Republicans.Federal agencies have been out of money since Wednesday — with a wide range of public services crippled — as a result of deadlocked talks in Congress on how to keep the lights on.The row meant key jobs data that is used by the Fed to guide it on monetary policy was not released when it was due on Friday.Still, observers say recent reports indicating the labour market is slowing would likely be enough to allow officials to cut rates at the next meeting at the end of the month, with other readings on inflation due beforehand. “It’s still likely that the shutdown will end in relatively short order, allowing for the release of the September jobs report before the October (policy) meeting,” said economists at Bank of America.”But even if the first print of September payrolls is solid, doves on the committee will likely point to the recent trend of downward revisions to make the case to keep cutting. “And given (Fed chief Jerome) Powell’s recent dovish pivot, that argument is likely to carry the day.”Oil jumped more than one percent, extending Friday’s gains, after OPEC+ agreed at the weekend to boost supplies by 137,000 barrels a day — less than initially expected.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 4.5 percent at 47,835.36 (break)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 26,995.12Shanghai – Composite: Closed for a holidayDollar/yen: UP at 149.84 yen from 147.45 yenPound/dollar: DOWN at $1.3455 from $1.3482Euro/pound: UP at 87.17 pence from 87.09 penceEuro/dollar: DOWN at $1.1728 from $1.1742 on FridayWest Texas Intermediate: UP 1.5 percent at $61.78 per barrelBrent North Sea Crude: UP 1.4 percent at $64.45 per barrelNew York – Dow: UP 0.5 percent at 46,758.28 points (close)London – FTSE 100: UP 0.7 percent at 9,491.25 (close) 

China’s push to develop top-end artificial intelligence microchips is gaining momentum, but analysts say it will struggle to match the technical might of US powerhouse Nvidia within the current decade.Ramping up its chip industry is a way for Beijing to beat restrictions imposed by Washington on exports of the most advanced chips — used to power AI systems — to China.The United States cites national security concerns, such as the risk of giving China a military advantage, for the block, a geopolitical bind that shows no sign of easing.”China wants chips that policy cannot take away,” said Stephen Wu, a former AI software engineer and founder of the Carthage Capital investment fund.However, “full end-to-end parity with Nvidia’s best chips, memory packaging, networking and software is not guaranteed” by 2030 or even beyond, Wu told AFP.Announcements of computing upgrades by Chinese companies and reports of plans to dramatically increase output of advanced semiconductors have driven up chip-related shares in the country.But to catch up with Nvidia, China needs to make fast progress on high-bandwidth memory and packaging — “the hardest and most complex parts of the chip”, Wu said.Other challenges include building the right software to harness the chips’ power, and upgrading manufacturing tools.”These chips are extremely advanced and tiny, so imagine carving a stone sculpture with a hammer instead of a chisel,” Wu said.- ‘Only way’ to succeed -“The industry consensus is China at least needs five to ten years to catch up,” said George Chen of The Asia Group, a view reflected by Dilin Wu, research strategist at Pepperstone.”The future is bright, but not yet,” she told AFP.”It’s maybe a 2030 story”, as “significant gaps remain in terms of performance, and also in terms of energy efficiency and ecosystem maturity”.Public demand for AI services is booming in China, and while government support for new chips is “substantial”, the investment required is “immense”, she added.Shares in Alibaba, the e-commerce titan ploughing billions of dollars into AI tech, have more than doubled since January.And Chinese chip industry leader Huawei will reportedly double output of its top Ascend 910C chip in the next year.The hype has also sharply driven up stocks in the smaller chipmaker Cambricon, sometimes dubbed “China’s Nvidia”.”I think this rally can be sustained”, partly because it is driven by Chinese government policy, Pepperstone’s Wu said.Even Xiaomi, whose 2014 venture into chip design was a self-confessed flop, is turning back to semiconductors.”Chips are the only way for Xiaomi to succeed,” the company’s CEO Lei Jun said in Beijing last month, referring to the production of high-end smartphone chips.- ‘Best in China’ -China, the world’s biggest consumer of semiconductors, is a huge market for California-based Nvidia.Nvidia chips are still “the best… to train large language models”, the systems behind generative AI, said Chen Cheng, general manager for AI translation software at tech firm iFLYTEK.Faced with US restrictions, “we overcame that difficulty” by shifting to Chinese-made tech, she said in a group interview.”Now our model is trained on Huawei chips” — currently the best in China, Cheng said.Meanwhile Nvidia, the world’s largest company by market capitalisation, is under pressure from both sides.The Financial Times reported last month that Beijing had barred major Chinese firms from buying a state-of-the-art Nvidia processor made especially for the country.And the company must now pay the US government 15 percent of revenue from certain AI chip sales in China.Nvidia boss Jensen Huang has warned that restrictions on exporting his most cutting-edge semiconductors to China will only fuel the country’s rise.”They’re nanoseconds behind us,” the leather jacket-clad Huang said on a tech business podcast.”So we’ve got to go compete.”

Conservative Sanae Takaichi hailed a “new era” Saturday after becoming head of Japan’s ruling party, putting her on course to become the country’s first woman prime minister.The 64-year-old, whose hero is Margaret Thatcher, said that a “mountain of work” lay ahead to restore the fortunes of her ailing Liberal Democratic Party (LDP).The LDP has governed Japan almost uninterrupted for decades but it has been haemorrhaging support as backing grows for smaller parties, including the anti-immigration Sanseito.Takaichi, a heavy metal drummer as a student, will almost certainly be approved by parliament later this month as Japan’s fifth prime minister in as many years.She is set to face a host of complex issues including an ageing population, geopolitical upheaval, a faltering economy and growing unease about immigration.”Together with so many of you, we have carved a new era for the LDP,” Takaichi said at LDP headquarters after winning a run off vote against the telegenic and more socially progressive Shinjiro Koizumi.”We must all pull together across all generations and work as one to rebuild (the LDP)… Everyone will have to work like a horse,” she said to applause.Koizumi, 44, would have been Japan’s youngest prime minister in the modern era and represented a generational change for the LDP.One of Takaichi’s first official duties as premier will be receiving US President Donald Trump, who is reportedly set to make a stopover in Japan in late October.Takaichi said Saturday that she had no plans to overturn Tokyo’s recent trade deal — over which questions remain — with Washington.Takaichi has been a strident critic of China’s military build-up, and as a regular visitor to the Yasukuni war shrine her appointment may irk Beijing as well as Seoul.Beijing’s foreign ministry reacted to her win by saying “it is hoped that Japan will abide by… its political commitments on major issues such as history and Taiwan, (and) pursue a positive and rational policy toward China.”- Immigrant ‘invasion’ -Primarily for LDP members, however, Takaichi’s task will be to restore the fortunes of the party, which has governed almost non-stop since 1955.Outgoing premier Shigeru Ishiba took the reins last year but his LDP-led coalition lost its majority in both houses of parliament, in part because of voter anger at inflation and an LDP slush fund scandal.One party on the up is Sanseito, which echoes other populist movements in calling immigration a “silent invasion” and blames newcomers for a host of ills.Japan should “reconsider policies that allow in people with completely different cultures and backgrounds”, Takaichi said during the LDP campaign.People born abroad make up just three percent of the population, and with an ageing population is in dire need of foreign workers.”As the Japanese population is declining we need to accept foreigners, but I hope (politicians) will think about how to accept them,” said Tomoyuki Mishina, 39, a real estate company employee.- Abenomics 2.0 -On the economy, Takaichi has in the past backed aggressive monetary easing and big fiscal spending, echoing her mentor, former premier Shinzo Abe.Coming from the traditionalist wing of the LDP, celebrations that finally a woman is leading Japan may soon turn to disappointment.Takaichi “has no interest in women’s rights or gender equality policies,” Yuki Tsuji, a professor specialising in politics and gender at Tokai University, told AFP.Takaichi is against revising a 19th-century law obliging married couples to share the same surname, and also opposes same-sex marriage.”An exclusive, reactionary and discriminatory political approach will persist,” said Soshi Matsuoka from the LGBTQ campaign group Fair.

Conservative Sanae Takaichi hailed a “new era” Saturday after winning the leadership of Japan’s ruling party, putting her on course to become the country’s first woman prime minister.The 64-year-old, whose hero is Margaret Thatcher, said that a “mountain of work” lay ahead to restore the fortunes of her ailing Liberal Democratic Party (LDP).The LDP has governed Japan almost uninterrupted for decades but it has been haemorrhaging support as backing grows for smaller parties, including the anti-immigration Sanseito.Takaichi, an arch-conservative who tempered her rhetoric in the LDP contest, will almost certainly be approved by parliament later this month as Japan’s fifth prime minister in as many years.”Together with so many of you, we have carved a new era for the LDP,” Takaichi said at LDP headquarters after winning a run off vote against the telegenic and more moderate Shinjiro Koizumi, 20 years her junior.”Rather than feeling happy right now, (I feel) real challenge lies ahead. I am convinced that there is a mountain of work we must tackle together, pooling our efforts,” she said.”We must all pull together across all generations and work as one to rebuild (the LDP)… Everyone will have to work like a horse,” she said to applause.Koizumi, son of a former premier and who was seen as more progressive on social issues, would have been Japan’s youngest prime minister in the modern era and represented a generational change for the LDP.He and Takaichi went into the run off after the moderate and highly experienced Yoshimasa Hayashi, dubbed “Mr. 119″ after Japan’s emergency phone number, was knocked out along with two other candidates.Takaichi now faces a host of complex issues including an ageing population, geopolitical upheaval, a faltering economy and growing unease about immigration.First, however, she will have to ensure that the LDP, which has governed almost non-stop since 1955, can rally voters again.”The LDP must regain trust, and an overhaul is needed for us to start afresh,” Koizumi had said in the campaign, calling the state of the party a “crisis”.- Immigrant ‘invasion’ -Outgoing premier Shigeru Ishiba took the reins last year but his LDP-led coalition lost its majority in both houses of parliament and he threw in the towel.One party on the up is Sanseito, which echoes other populist movements in calling immigration a “silent invasion” and blames newcomers for a host of ills.Takaichi and Koizumi in the LDP campaign sought to appeal to voters attracted by Sanseito’s messaging about foreigners, whether immigrants or the throngs of tourists.Japan should “reconsider policies that allow in people with completely different cultures and backgrounds”, said Takaichi.Such alarmism from mainstream politicians is rare in Japan, where people born abroad make up just three percent of the population.”I think tolerance in society towards foreigners is weakening,” pensioner Kimiko Tamura, 66, told AFP in Kawaguchi, one of Japan’s most multicultural cities.Still, 33-year-old Nguyen Thu Huong, who arrived from Vietnam 14 years ago, said “differences in culture are difficult to learn… but Japan is a nice place to live”.- Abenomics 2.0 -On the economy, Takaichi has in the past backed aggressive monetary easing and big fiscal spending, echoing her mentor, former premier Shinzo Abe.But she tempered her stance on the campaign trail, and the regular visitor to the Yasukuni war shrine has also sounded more moderate on China.Coming from the traditionalist wing of the LDP, celebrations that finally a woman is leading Japan may soon turn to disappointment.Takaichi “has no interest in women’s rights or gender equality policies,” Yuki Tsuji, a professor specialising in politics and gender at Tokai University, told AFP.”I too shall cast aside the idea of work-life balance. Work, work, work, work, work I shall,” Takaichi said Saturday.

Stock markets struck fresh records Friday, driven by investor optimism over artificial intelligence and hopes of US interest rate cuts, which overshadowed concerns about an ongoing government shutdown.Wall Street’s main indices were mixed at the end of the day, although the Dow and S&P 500 notched fresh records.”That’s a stock market that continues to be pretty resilient to selling interest for any number of reasons, probably the most supportive of which is the expectation for multiple rate cuts before year-end,” said Patrick O’Hare of Briefing.com.In Europe, London’s FTSE 100 set an all-time high, led by banks and mining stocks. In Paris, the CAC 40 also rose and was close to its March peak, while the DAX 40 dipped in Frankfurt but nevertheless remains close to its record level.The rally in tech stocks was given another lift on Friday by an agreement between Japan’s Hitachi and ChatGPT developer OpenAI to work on AI and energy.Shares in Hitachi jumped more than 10 percent, with other Japanese tech firms and investment giant SoftBank following suit. The advance helped push Tokyo’s Nikkei 1.9 percent higher.Hong Kong retreated, while Shanghai was closed for a holiday.A surge in AI investment this year has helped push the valuations of some of the sector’s biggest names to eye-watering levels — with US chip titan Nvidia topping $4 trillion — and several stock markets to record highs.Shares in Nvidia pulled back slightly on Friday.This week has seen extra momentum after South Korean semiconductor giants Samsung and SK hynix said they had struck a preliminary deal with OpenAI to supply chips and other equipment for its Stargate project.Positive sentiment has also been supported by data in recent months pointing to a slowdown in the US labor market, which led the Federal Reserve to cut borrowing costs and indicate more easing could come.Traders brushed off a standoff in Washington that has seen the government partially shut down, leading to the closure of some services and the delay of key monthly jobs figures that would normally have been published on Friday.While the readings on non-farm payrolls is a major guide for the Fed when deciding monetary policy, analysts said the shutdown was unlikely to deter the Fed from an expected second rate cut this month.”Markets seem to have taken this political impasse in their stride, showing little sign of stress,” said Joshua Mahony, chief market analyst at Scope Markets.”The lack of market reaction highlights how little investors believe the shutdown will matter for the medium-term outlook on growth or interest rates,” he added.But US senators voted Friday to reject a stopgap Republican funding fix to reopen the government, meaning the federal shutdown will extend into the next week.- Key figures at around 2020 GMT -New York – Dow: UP 0.5 percent at 46,758.28 points (close)New York – S&P 500: UP less than 0.1 percent at 6,715.79 (close)New York – Nasdaq Composite: DOWN 0.3 percent at 22,780.51 (close)London – FTSE 100: UP 0.7 percent at 9,491.25 (close) Paris – CAC 40: UP 0.3 percent at 8,081.54 (close)Frankfurt – DAX: DOWN 0.2 percent at 24,378.80 (close)Tokyo – Nikkei 225: UP 1.9 percent at 45,769.50 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 27,140.92 (close)Shanghai – Composite: Closed for a holidayEuro/dollar: UP at $1.1742 from $1.1720 on ThursdayPound/dollar: UP at $1.3482 from $1.3446Dollar/yen: UP at 147.45 yen from 147.19 yenEuro/pound: DOWN at 87.09 pence from 87.17 penceWest Texas Intermediate: UP 0.7 percent at $60.88 per barrelBrent North Sea Crude: UP 0.7 percent at $64.53 per barrelburs-rl-tmc-bys/jgc

Stock markets mostly rose Friday driven by investor optimism over AI and US rate-cut hopes, which overshadowed concerns about a government shutdown dragging on. A rally in tech stocks was given another lift on Friday by an agreement between Japan’s Hitachi and ChatGPT developer OpenAI to work on AI and energy.  Shares in Hitachi jumped more than 10 percent, with other Japanese tech firms and investment giant SoftBank following suit. The advance helped push Tokyo’s Nikkei 1.9 percent higher.European markets also advanced, led by banks and mining stocks. Hong Kong retreated, while Shanghai was closed for a holiday.A surge in AI investment this year has helped push the valuations of some of the sector’s biggest names to eye-watering levels — with US chip titan Nvidia topping $4 trillion — and several stock markets to record highs.This week has seen extra momentum after South Korean semiconductor giants Samsung and SK hynix said they had struck a preliminary deal with the OpenAI to supply chips and other equipment for its Stargate project.Wall Street stocks finished at fresh records again Thursday.Positive sentiment has also been supported by data in recent months pointing to a slowdown in the US labour market, which led the Federal Reserve to cut borrowing costs and indicate more to come.Traders brushed off a standoff in Washington that has seen the government partially shut down, leading to the closure of some services and the likely delay of the release of key jobs figures later in the day.While the readings on non-farm payrolls (NFPs) is a major guide for the Fed when deciding monetary policy, analysts said the shutdown was unlikely to deter the bank from an expected second rate cut this month.”Markets seem to have taken this political impasse in their stride, showing little sign of stress,” said Joshua Mahony, chief market analyst at Scope Markets.”The lack of market reaction highlights how little investors believe the shutdown will matter for the medium-term outlook on growth or interest rates,” he added.A Senate vote is expected Friday on a House-passed resolution to keep the government funded at current levels through November 21.In company news, Japanese beer titan Asahi fell more than one percent after a cyberattack that hit its ordering and delivery system this week forced it to stop production at some factories.Its shares have fallen around seven percent this week. Officials at the firm said they did not know when they would be back up and running.The positive mood on trading floors has also helped bitcoin regain some of its mojo, striking back above $120,000 for the first time since mid-August when it hit a record 124,515.- Key figures at around 1100 GMT -London – FTSE 100: UP 0.7 percent at 9,464.95 pointsParis – CAC 40: UP 0.3 percent at 8,079.64Frankfurt – DAX: UP 0.1 percent at 24,431.87Tokyo – Nikkei 225: UP 1.9 percent at 45,769.50 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 27,140.92 (close)Shanghai – Composite: Closed for a holidayNew York – Dow: UP 0.2 percent at 46,519.72 (close)Euro/dollar: UP at $1.1736 from $1.1720 on ThursdayPound/dollar: UP at $1.3453 from $1.3446Dollar/yen: UP at 147.33 yen from 147.19 yenEuro/pound: UP at 87.25 pence from 87.17 penceWest Texas Intermediate: UP 0.5 percent at $60.76 per barrelBrent North Sea Crude: UP 0.5 percent at $64.37 per barrel

The Carrefour name has disappeared from storefronts in some Arab countries, with pro-Palestinian shoppers and activists hailing the shift as a victory for their boycott of brands perceived as being linked to Israel.The French multinational has long been in the crosshairs of Palestinian supporters, who accuse it of selling products from Israeli settlements and partnering with Israeli firms operating there.The group has denied operating in the settlements in the occupied West Bank, which are considered illegal under international law.But in the past year Majid Al Futtaim, the group that operates the Carrefour franchise in the Middle East, has closed the brand’s supermarkets in Jordan, Oman, Kuwait and Bahrain.It has since reopened under the new name HyperMax, citing “growing demand for locally sourced products and services in a number of our markets”.It did not explicitly link the rebranding to the boycotts, and experts are divided over how much of a role they played in the closures.But pro-Palestinian shoppers have nonetheless claimed victoryHuda Ahmed, a 45-year-old mother of three, said she stepped into the Carrefour-turned-HyperMax store in Manama, Bahrain last week for the first time in almost two years.”I am glad they actually listened to their customers and disengaged from the Carrefour brand. Things can’t be business as usual with a genocide going on at our doorsteps,” Ahmed told AFP.”We still made sure not to buy the products that are on the boycott lists… but the company deserves credit for making the move,” she added.- ‘Broader scaling down’ -The Boycott, Divestment, Sanctions (BDS) campaign, which began two decades ago, has accused Carrefour of “profiting from Israel’s illegal settlements” through its franchise partnership with Israeli retailer Electra Consumer Products and its subsidiary, supermarket chain Yenot Bitan.According to BDS, Yenot Bitan has stores in settlements and both firms are “directly involved in a number of projects fostering Israel’s illegal settlements enterprise”.It has accused Carrefour-Israel of supporting Israeli soldiers “partaking in the unfolding genocide of Palestinians in Gaza with gifts of personal packages”.It also demanded that Carrefour stop selling products from the settlements.Carrefour chief executive Alexandre Bompard has said previously that no Carrefour stores are operating in West Bank settlements and has denied having any “partisan or political ties”.The Israeli government accuses supporters of the BDS movement of being antisemitic.In Bahrain, which has ties to Israel, activists have held weekly protests and vigils for Gaza.According to a HyperMax employee in the country, foot traffic slowed noticeably after the start of the Gaza war, when the store was still operating under the Carrefour brand.”Almost all our customers stopped coming,” he said, requesting anonymity to discuss the sensitive matter. Since the rebranding, “I am seeing more customers coming in, particularly Bahrainis and Arabs.”For M.R. Raghu, who heads the Marmore Mena Intelligence consulting firm, the Carrefour closures are part of a “broader scaling down of operations by the retailer, amid weakening financial health” as its stores also shut elsewhere in the world.And Majid Al Futtaim has maintained Carrefour franchises elsewhere in the Middle East, including in the Gulf’s two biggest economies, Saudi Arabia and the United Arab Emirates.- ‘Brand concerns’ -Ghassan Nasaif, a pro-Palestinian activist in Bahrain, called Majid Al Futtaim’s decision a “great victory” for the movement, saying “this is exactly what we were asking” from the group.Majid Al Futtaim saw its retail revenue, which includes Carrefour, drop 10 percent last year following a four percent decline in 2023, with the company citing “geopolitical tensions” affecting consumer sentiment, among other factors.In the first half of this year, retail revenues have softened one percent from the same period a year earlier.”Consumer demand is currently strong and growing across the Gulf, and the fact that the regional franchise holder, MAF, has been rebranding many Carrefour stores as HyperMax does seem to imply a link to boycott-related brand concerns,” according to Justin Alexander, director of Khalij Economics, a consulting firm.For Musab al-Otaibi, an activist in Kuwait, people have “no other weapon than boycotts” as the death toll climbs in Gaza. Bader al-Saif, an assistant professor at Kuwait University, called the Carrefour closures “a microcosm of a bigger story”. “It shows that the voices of people in the Gulf do matter… that there are ways to express yourself even if you’re in a restricted space,” he said.strs-aya/ds/smw/ser

A surge in tech firms helped Tokyo’s Nikkei lead most Asian equities higher on Friday as investors headed into the weekend on a broadly positive note, with US rate-cut hopes out-muscling concerns about a government shutdown.The rally across world markets this year has largely been fuelled by companies ploughing billions of dollars into all things artificial intelligence, and traders not wanting to miss out on the action.That has helped push the valuations of some of the biggest names to eye-watering levels — with US chip titan Nvidia topping $4 trillion — and several markets to record highs.This week has seen extra momentum after South Korean semiconductor giants Samsung and SK hynix said they had struck a preliminary deal with the ChatGPT developer OpenAI to supply chips and other equipment for its Stargate project.And on Friday, it was the turn of Japan’s Hitachi, which said it had joined into a strategic partnership with OpenAI to work on AI and energy, among other things.Hitachi jumped more than 10 percent, while other Japanese tech firms followed suit with Renesas up 7.3 percent, Sony gaining 2.3 percent and Advantest rising more than four percent. Tech investment giant SoftBank piled on more than three percent.The advance helped push Tokyo’s Nikkei 1.9 percent higher, while there were also gains in Sydney, Singapore, Bangkok, Wellington, Taipei, Jakarta and Manila.London, Paris and Frankfurt all rose in the morning.Hong Kong retreated after jumping more than four percent in the previous three trading days. Shanghai was closed for a holiday.The rally — which saw all three main Wall Street indexes to all-time peaks Thursday — has also been stoked by data in recent months pointing to a slowdown in the US labour market.That has led the Federal Reserve to cut borrowing costs and indicate more to come.The positive sentiment has overshadowed the standoff in Washington that has seen the government partially shut down, leading to the closure of some services and the likely delay of the release of key jobs figures later in the day.While the readings on non-farm payrolls (NFPs) is a major guide for the Fed when deciding monetary policy, analysts said the shutdown was unlikely to deter the bank from an expected second rate cut this month.”The general vibe is that the government shutdown could potentially shave $15–$20 billion off of US GDP, but it will largely be backfilled and therefore should have only a negligible lasting impact on economic activity,” said Pepperstone’s Chris Weston.”That said, there are reasons to think Trump’s threat to permanently furlough certain government workers could spill over into more of a market risk event.”Still, he added that the US government could still “reopen in time for the NFP and possibly even the (consumer price) reports to be released” before the next Fed policy meeting on October 29.A Senate vote is expected Friday on a House-passed resolution to keep the government funded at current levels through November 21.In company news, Japanese beer titan Asahi fell more than one percent after a cyberattack that hit its ordering and delivery system this week forced it to stop production at some factories. Its shares have fallen around seven percent this week.Officials at the firm said they did not know when they would be back up and running.The positive mood on trading floors has also helped bitcoin regain some of its mojo, striking back above $120,000 for the first time since mid-August when it hit a record 124,515.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 1.9 percent at 45,769.50 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 27,140.92 (close)London – FTSE 100: UP 0.4 percent at 9,464.95 Shanghai – Composite: Closed for a holidayEuro/dollar: UP at $1.1735 from $1.1720 on ThursdayPound/dollar: UP at $1.3463 from $1.3446Dollar/yen: UP at 147.41 yen from 147.19 yenEuro/pound: UP at 87.19 pence from 87.17 penceWest Texas Intermediate: UP 0.9 percent at $61.01 per barrelBrent North Sea Crude: UP 0.8 percent at $64.61 per barrelNew York – Dow: UP 0.2 percent at 46,519.72 (close)