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Macron in Indonesia to deepen trade, defence ties

French President Emmanuel Macron met his Indonesian counterpart on Wednesday, seeking to deepen trade and defence ties with Southeast Asia’s largest economy on the second leg of a three-country tour promoting France as a balancing power between the US and China.Macron met Prabowo Subianto at the presidential palace in capital Jakarta, hailing their countries’ close relationship after being greeted by a guard of honour, gun salute and thousands of young Indonesians waving French flags.”Our partnership on all the fields, defence and security, economy, culture is already strong, but we are strengthening it,” Macron told Prabowo.”I think this is to the best way to… handle the business in challenging times. So thank you very much for your support, our friendship and your very special attachment to France.”Prabowo replied: “Merci beaucoup, monsieur!”The French president will later meet investors and students and attend a state dinner. On Thursday he will travel to Yogyakarta on Indonesia’s Java island to visit the world’s largest Buddhist temple, before heading to Singapore to conclude his six-day tour. Indonesian Defence Minister Sjafrie Sjamsoeddin said after welcoming Macron that the countries would “strengthen their strategic partnership in the defence sector” by signing a letter of intent on defence equipment, the presidency said in a statement.In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron is seeking to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He has indicated he will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the trip. “We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversify trade networks in the face of Trump’s tariffs.So Macron’s office is looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, was to be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

Nickel rush for stainless steel, EVs guts Indonesia tribe’s forest home

Sitting deep in east Indonesia’s lush jungle, Bokum, one of the country’s last isolated hunter-gatherers, has a simple message for the nickel miners threatening his home: “This is our land.”He belongs to the Hongana Manyawa Indigenous tribe, which includes around 3,000 “contacted” members like him, and another 500 who reject contact with the modern world.Their home on Halmahera Island was once a breathtaking kaleidoscope of nature that provided sanctuary and sustenance. But it is being eaten away by the world’s largest nickel mine, as Indonesia exploits vast reserves of the metal used in everything from electric vehicles to stainless steel.”I’m worried if they keep destroying the forest,” Bokum told AFP in a clearingin central Halmahera.”We have no idea how to survive without our home and food.” The plight of the Hongana Manyawa, or “People of the Forest”, started gaining attention in Indonesia last year after a video widely shared on Facebook showed emaciated, uncontacted members emerging from their rapidly changing forest home to beg for food. But the remote region — about 1,500 miles (2,414 kilometres) from capital Jakarta — mostly remains far from the public consciousness.AFP travelled into the Halmahera jungle to see how the sprawling Weda Bay Nickel concession has affected the once-pristine tribal lands that the Hongana Manyawa call home.During a three-day, 36-kilometre (22-mile) trek across parts of the 45,000-hectare concession, the mining operation’s impacts were starkly clear.Booms from controlled explosions to expose nickel shook birds from trees, while helicopters buzzing overhead shared the skies with green parrots, Moluccan owls, hornbills and giant bees.Tree stumps provided evidence of logging, and off-duty mine guards were seen hunting tropical birds with air guns.Throughout the night, the sound of excavators scratching the topsoil penetrated the thick vegetation, competing with frog calls and the drone of insects.Mud that locals say is stirred up by mining has stained rivers copper, and the water leaves skin irritated.In 22 river crossings, only a few fish were visible. Tribe members say they have mostly disappeared.AFP did not seek to meet uncontacted Hongana Manyawa.Bokum emerged from isolation earlier in his life, but still has very limited contact with the outside world.He and his wife Nawate agreed to meet AFP around 45 minutes from his home deeper in the jungle.But he could not stay long: en route, he spotted miners and wanted to return to ward them off.”The company workers have been trying to map our territory,” he told AFP, wearing a black cowboy hat, shirt and rolled-up jeans.”It’s our home and we will not give it to them.”- ‘Prevent their annihilation’ -Indonesia’s constitution enshrines Indigenous land rights, and a 2013 Constitutional Court ruling promised to give local communities greater control oftheircustomary forestsBut environmental groups say the law is not well enforced.With no land titles, the Hongana Manyawa have little chance of asserting their claims to stewardship of forest that overlaps with Weda Bay’s concession.According to Weda Bay Nickel (WBN), its mine on Indonesia’s Maluku islands accounted for 17 percent of global nickel production in 2023, making it the largest in the world. WBN is a joint venture of Indonesia’s Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.WBN told AFP it is “committed to responsible mining and protecting the environment”, and trains employees to “respect local customs and traditions”.It said there is “no evidence that uncontacted or isolated groups are being impacted by WBN’s operations”.Eramet told AFP it has requested permission from WBN’s majority shareholders for an independent review of “engagement protocols” with Hongana Manyawa, expected this year.Further review of how the tribe uses the area’s forests and rivers is also underway, it added, though it said there was currently “no evidence” of members living in isolation in its concession.The Indonesian government, which acknowledges most of the concession was previously protected forest, told AFP otherwise.There is “recognition of evidence of the existence of isolated tribes around Weda Bay”, said the directorate general of coal and minerals at Indonesia’s energy ministry.It said it was committed to “protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment”.Indigenous rights NGO Survival International said that was Jakarta’s first acknowledgement of uncontacted, or “isolated”, Hongana Manyawa in the area. It called the admission a “hammer blow” to Eramet’s claims and said a no-go area to protect the tribe was “the only way to prevent their annihilation”.Both WBN and Eramet said they work to minimise impact on the environment. Eramet’s new CEO will be in Indonesia this week, seeking permission to expand the mine’s capacity.Tsingshan and Antam did not respond to AFP requests for comment.Bokum said mining has driven away the wild pigs, deer and fish he once caught for food. Now, he looks for shrimp and frogs in less-affected smaller streams.”Since the company destroyed our home, our forest, we’ve been struggling to hunt, to find clean water,” he said in the Indigenous Tobelo language.”If they keep destroying our forest we cannot drink clean water again.”- ‘Go away’ -Nickel is central to Indonesia’s growth strategy. It banned ore exports in 2020 to capture more of the value chain.The country is both the world’s largest producer, and home to the biggest-known reserves.Mining — dominated by coal and nickel — represented nearly nine percent of its GDP in the first quarter of 2025, government data shows.Nickel mined in the Halmahera concession is processed at the Weda Bay Industrial Park.Since operations began in 2019, the area has transformed rapidly, into what some call a “Wild West”.At a checkpoint near the industrial park, men stopped AFP to demand cash and forced their vehicle to move elsewhere, before a local government official intervened.The towns on the mine edge — Lelilef Sawai, Gemaf and Sagea — form a chaotic frontier. Employees in hard hats crisscross muddy roads that back up with rush-hour traffic.Shops catering to labourers line the roadside, along with prostitutes looking for business in front of bed bug-infested hostels.The mining workforce has more than doubled since 2020 to nearly 30,000 people. Locals say these are mostly outsiders whose arrival has sparked tensions and coincided with rising cases of respiratory illness and HIV/AIDS.Smelter towers belch a manmade cloud visible from kilometres away.”Mining companies have not implemented good practices, have violated human rights and there is rarely any evaluation,” said Adlun Fiqri, spokesman for the Save Sagea campaign group.Inside the jungle, a similar story is playing out, said Hongana Manyawa member Ngigoro, who emerged from the uncontacted as a child.”Long before the mining, it was really quiet and good to live in the forest,” said the 62-year-old, as he marked his route by slicing pock-marks into trees with his machete.He remains at ease in the forest, using reeds for shade and bamboo shoots to boil water.”There was no destruction. They were not afraid of anything,” he said.He climbed nimbly down a steep slope by clinging to tree roots before crossing a riverbed peppered with garnierite — green nickel ore.”This land belongs to the Hongana Manyawa,” he said.”They existed living in the rainforest before even the state existed. So go away.”That sentiment echoes elsewhere on Halmahera. At least 11 Indigenous people were recently arrested for protesting mining activity in the island’s east, Amnesty International said Monday.- ‘We will not give our consent’ -Despite their “contacted” status, Bokum and Nawate have rarely met outsiders.They approached haltingly, with Nawate refusing to speak at all, instead surveying her visitors with a cautious smile.Bokum described moving at least six times to outrun encroaching miners. NGOs fear the mine operation risks wiping out the tribe.”They rely entirely on what nature provides for them to survive and as their rainforest is being devastated so too are they,” said Callum Russell, Asia research and advocacy officer at Survival International.”Any contact with workers in the forest runs the risk of exposing them to deadly diseases to which they have little to no immunity.”The government told AFP it has “conducted documentation” to understand isolated tribes near Weda Bay, and involved them “in the decision-making process”.Activists say this is impossible given most of the group do not use modern technology and limit contact with outsiders.Amid growing scrutiny, there have been rumblings of support for the tribe, including from some senior politicians.Tesla, which has signed deals to invest in Indonesian nickel, has mooted no-go zones to protect Indigenous peoples.And Swedish EV company Polestar last year said it would seek to avoid compromising “uncontacted tribes” in its supply chain. For Bokum however, the problem is already on his doorstep.A 2.5-kilometre-long (1.5 miles) open pit lies just over the hill from a plot where he grows pineapple and cassava.Bokum and Nawatereceived mobile phones from mine workers — in an unsuccessful attempt to convince them to approve mining operations.They and other tribe members use numerical codes to identify contacts and make calls.They must approach the concession to pick up signal, but when mine workers near his home, Bokum wields his machete to scare them off.”This is our land. Our home,” he said.”We will not give our consent to destroy it.”

Asian stocks track Wall St rally as trade fears ease, eyes on Japan debt

Asian equities rose Wednesday following a Wall Street rally as traders cheered forecast-beating US consumer confidence data and a drop in bond yields, with eyes now on a key sale of Japanese debt.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media saying progress with Brussels was being made.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.The lift in the Conference Board’s index was the first improvement after five months of decline and dragged it up from lows last seen at the onset of the Covid-19 pandemic. However, the report did warn that tariffs remained a key concern.Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all rose. Wellington was in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Tokyo was also on the front foot as investors eye the crucial sale of Japanese 40-year government bonds, after an auction of 20-year notes this month saw the worst take-up in more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.However, yields tumbled Tuesday after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the recent panic over the Japanese government bond (JGB) market may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”The drop in Japanese yields sent the yen lower Tuesday, and it held those losses in early trade Wednesday, sitting around 144.30 per dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37.918.86 (break) Hong Kong – Hang Seng Index: UP 0.2 percent at 23,421.96Shanghai – Composite: UP 0.2 percent at 3,346.13Euro/dollar: DOWN at $1.1323 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3502 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.8 percent at $61.36 per barrelBrent North Sea Crude: UP 0.7 percent at $64.56 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)

Macron in Indonesia seeks to deepen trade, defence ties

Emmanuel Macron will seek to deepen trade and defence ties on a visit to Indonesia Wednesday, the second leg of a three-country Southeast Asia tour promoting France as a balancing power between the US and China.The French president will be received by Indonesian counterpart Prabowo Subianto before meeting investors and students in Southeast Asia’s largest economy and attending a state dinner. “I’m really excited to meet again with my brother President Prabowo, a good friend of mine,” he said after arriving Tuesday evening in the capital Jakarta, where he was greeted by the foreign and defence ministers. “The relationship with your country is a very strategic and friendly one,” Macron said.On Thursday, he will travel to Yogyakarta on Indonesia’s main island Java where he will visit the world’s largest Buddhist temple before heading to Singapore to conclude his six-day tour. In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron will seek to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the tour.”We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that Trump’s “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversity trade networks in the face of Trump’s tariffs.So Macron’s office will be looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, will be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

China not trying to ‘replace’ US in Colombia: ambassador

China is not seeking to “replace” the United States as the top trading partner of Colombia, Beijing’s ambassador to Bogota, whose president has announced a pivot to China, told AFP on Tuesday.Until recently Colombia was one of the United States’ closest trade and security partners in Latin America. But the country’s first leftist president Gustavo Petro, who has crossed swords with his US counterpart Donald Trump, is trying to steer more trade towards China.China’s ambassador to Bogota denied that Beijing was seeking to topple the United States from its pole position in Latin America.”China is coming to offer our collaboration, not to replace anyone, nor seeking to take someone’s place,” Zhu Jingyang told AFP on the sidelines of a media briefing.Earlier this month, Colombia formally joined China’s vast Belt and Road (BRI) infrastructure program.Bogota’s accession boosted Beijing’s efforts to deepen ties with Latin America, a key battleground in its confrontation with the Trump administration.It came in the wake of a showdown between Trump and Petro over deportation flights which ended in humiliation for Colombia.After initially denying entry to US military planes carrying deported Colombians in January, Bogota sent its own planes to bring them home to avoid hefty US tariffs threatened by Trump.The business community in Latin America’s fourth-biggest economy has expressed fears that Petro’s rapprochement with China could damage Colombia’s trade with the United States.The State Department’s special envoy for Latin America, Mauricio Claver-Carone, warned recently that the United States might start buying flowers and coffee — two of Colombia’s top exports to the United States — from other Latin American countries instead.Zhu accused the Trump administration of using “intimidation” and “blackmail” to try keep Colombia in its orbit.Two-thirds of Latin American countries have already joined the Belt and Road Initiative.

Stocks climb as US-EU trade tensions ease

Wall Street shares bounced on Tuesday while Europe maintained a rally after US President Donald Trump delayed huge tariffs on imports from the EU over the long holiday weekend.New York’s main stock markets all rebounded vigorously as trading resumed after the Memorial Day weekend, with the broad-based S&P 500 finishing more than two percent higher and the tech-heavy Nasdaq rising 2.5 percent.Nvidia notably adding 3.2 percent ahead of its latest earnings.In Europe, Frankfurt hit a new record high before ending 0.8 percent in the green, while Paris finished flat and London closed up 0.7 percent.”UK and US investors returned from their respective long weekends with a spring in their step thanks to the abrupt decision to pause higher tariffs on the EU,” said Chris Beauchamp, chief market analyst at online trading platform IG.Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below five percent following reports Japan will temper its long-term bond issuance. “It is unwise to hope that all upcoming US data will be as encouraging as today’s confidence figure, but it is certainly a relief that US consumers have managed to maintain their sunny outlook,” Beauchamp added, as US data showed a confidence jump after five months of declines.Trump sent markets into a tailspin Friday when he threatened to hit EU goods with a 50 percent tariff from June 1, saying talks were “going nowhere.”But after a phone call Sunday with European Union chief Ursula von der Leyen, Trump delayed the levies until July 9 to give more time for negotiations.EU trade commissioner Maros Sefcovic said Monday that following calls with top American officials the bloc remained “fully committed” to reaching a trade agreement with the United States.”This postponement has helped soothe tensions following last week’s turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute,” said David Morrison, senior market analyst at Trade Nation.Analysts cautioned, however, that Trump’s trade policies have been erratic.”Donald Trump has rolled back so many times on tariffs, that the message does not hold as much weight these days,” said Kathleen Brooks, research director at trading platform XTB.The dollar, which has slumped since Trump launched his tariffs blitz last month, gained against other major currencies on Tuesday. In Asia, Hong Kong and Tokyo closed higher but Shanghai fell.Amid oversupply fears, oil prices slid on the eve of an OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia. – Key figures at around 2030 GMT -New York – Dow: UP 1.8 percent at 42,343.65 (close)New York – S&P 500: UP 2.1 percent at 5,921.54 (close)New York – Nasdaq Composite: UP 2.5 percent at 19,199.16 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)Paris – CAC 40: FLAT at 7,826.79 (close)Frankfurt – DAX: UP 0.8 percent at 24,226.49 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)Euro/dollar: DOWN at $1.1329 from $1.1387 on MondayPound/dollar: DOWN at $1.3504 from $1.3564Dollar/yen: UP at 144.34 yen from 142.85 yenEuro/pound: DOWN at 83.88 pence from 83.95 penceBrent North Sea Crude: DOWN 1.0 percent at $64.09 per barrelWest Texas Intermediate: DOWN 1.0 percent at $60.89 per barrelburs-jmb/mlm

SE Asian nations express ‘deep concern’ over US tariffs

Southeast Asian leaders expressed “deep concern” over US tariffs Tuesday, as they held a summit with China and Gulf states hailed as “a response to the call of the times” in a geopolitically uncertain world. The trade-dependent economies are looking to insulate themselves after US President Donald Trump blew up global trade norms by announcing a slew of levies targeting countries around the world, then paused most for 90 days.The Association of Southeast Asian Nations (ASEAN) released a statement on Tuesday night expressing “deep concern over… the imposition of unilateral tariff measures, which pose complex and multidimensional challenges to ASEAN’s economic growth, stability, and integration”. In another statement, the bloc stressed “our strongest resolve to stand together” in the face of the levies, and pledged to expand cooperation with other partners. Earlier in the day Malaysia, which holds the bloc’s rotating chairmanship, hosted the inaugural summit between ASEAN, China and the Gulf Cooperation Council (GCC) — a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.  Chinese Premier Li Qiang told the meeting that “against the backdrop of a volatile international situation”, the summit was “a pioneering work of regional economic cooperation”.”This is not only a continuation of the course of history, but also a response to the call of the times,” he said. ASEAN has traditionally served as “a middleman of sorts” between developed economies like the United States, and China, said Chong Ja Ian from the National University of Singapore (NUS).With Washington looking unreliable these days, “ASEAN member states are looking to diversify”.”Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification,” he said.- ‘Timely and calculated’ -China, which has borne the brunt of Trump’s tariffs, is also looking to shore up its other markets. China and ASEAN are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April — attributed to a re-routing of US-bound goods.Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya told AFP.”China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”ASEAN reiterated on Tuesday it would not impose retaliatory duties on the United States — in contrast to China. Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days.Chinese goods still face higher tariffs than most though. At dinner on Tuesday, Li urged ASEAN and the GCC to “persist in opening up”.- ‘Centrality’ -ASEAN has historically avoided choosing a side between the United States and China.China is only Southeast Asia’s fourth largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS’ Chong.At a press conference at the tail-end of the talks, Malaysian Prime Minister Anwar Ibrahim vowed ASEAN would continue engaging both Washington and Beijing.”The… ASEAN position is centrality,” Anwar said, adding “it makes a lot of sense to continue to engage and have reasonably good relations” with the United States”. Anwar said Monday he had written to request an ASEAN-US summit this year, with his foreign minister saying Washington had not yet responded.Closer alignment with Beijing presents problems of its own.On Monday, Philippines leader Ferdinand Marcos said there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea.Beijing has territorial disputes with five ASEAN member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters.Anwar raised the South China Sea with Li and the Philippines, saying: “I’m not saying all issues can be resolved now but there was real positive engagement.”

Stocks climb awaiting next moves in Trump trade war

European and Asian stock markets mostly gained Tuesday as investors continued to react positively to US President Donald Trump’s pausing of an EU tariff threat.London led the way in Europe, up one percent in midday deals, as trading resumed after Monday’s UK public holiday. The dollar gained solidly against main rivals, while Wall Street reopens later after US Memorial Day. “US futures point to a higher open on indices, as optimism spreads after the holiday break,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Trump once again has pressed the pause button, this time on proposed 50 percent tariffs on imports from the European Union, which caused nervousness at the end of last week.” Trump on Sunday delayed 50-percent tariffs on the European Union until July 9 to give more time for negotiations.The president had sent markets into a tailspin Friday when he threatened to hit EU goods with the huge tariff from June 1 as talks were “going nowhere”.EU trade commissioner Maros Sefcovic said Monday following calls with top US officials that the bloc remains “fully committed” to reaching a trade agreement with the United States.A key survey Tuesday showed that consumer sentiment in Europe’s biggest economy, Germany, inched up heading into June — but erratic US trade policy and a glum domestic economic outlook kept the gauge at low levels.The forward-looking indicator, published by pollsters GfK and the Nuremberg Institute for Market Decisions, came in at minus 19.9 points, a rise of 0.9 from the previous month.It was the third-straight increase for the regular survey of about 2,000 people, which has been boosted by a new German government vowing to kickstart the country’s economy following two years of recession.It was revealed Tuesday that Germany had overtaken Japan as the world’s top creditor, with the Asian nation losing top spot after a 34-year reign.Japan’s net external assets as of the end of last year stood at 533.05 trillion yen ($3.7 trillion), up almost 13 percent from a year earlier, according to finance ministry data.For Japan, a weaker yen contributed to increases in both foreign assets and liabilities, but assets grew at a faster pace, driven in part by expanded business investment abroad, the data added.Elsewhere on Tuesday, oil prices rose slightly on the eve of the latest OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia. – Key figures at around 1045 GMT -London – FTSE 100: UP 1.0 percent at 8,807.27 pointsParis – CAC 40: UP 0.4 percent at 7,855.88Frankfurt – DAX: UP 0.8 percent at 24,220.99Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)New York – Dow: Closed Monday for a holidayEuro/dollar: DOWN at $1.1349 from $1.1382 on MondayPound/dollar: DOWN at $1.3540 from $1.3563Dollar/yen: UP at 144.07 yen from 142.81 yenEuro/pound: DOWN at 83.88 pence from 83.91 penceBrent North Sea Crude: UP 0.3 percent at $64.30 per barrelWest Texas Intermediate: UP 0.3 percent at $61.69 per barrelburs-bcp/ajb/lth

Developing nations face ‘tidal wave’ of China debt: report

The world’s poorest nations face a “tidal wave of debt” as repayments to China hit record highs in 2025, an Australian think-tank warned in a new report Tuesday.China’s Belt and Road Initiative lending spree of the 2010s has paid for shipping ports, railways, roads and more from the deserts of Africa to the tropical South Pacific. But new lending is drying up, according to Australia’s Lowy Institute, and is now outweighed by the debts that developing countries must pay back. “Developing countries are grappling with a tidal wave of debt repayments and interest costs to China,” researcher Riley Duke said. “Now, and for the rest of this decade, China will be more debt collector than banker to the developing world.”Beijing’s foreign ministry said it was “not aware of the specifics” of the report but that “China’s investment and financing cooperation with developing countries abides by international conventions”.Ministry spokeswoman Mao Ning said “a small number of countries” sought to blame Beijing for miring developing nations in debt but that “falsehoods cannot cover up the truth”.The Lowy Institute sifted through World Bank data to calculate developing nations’ repayment obligations. It found that the poorest 75 countries were set to make “record high debt repayments” to China in 2025 of a combined US$22 billion. “As a result, China’s net lending position has shifted rapidly,” Duke said. “Moving from being a net provider of financing — where it lent more than it received in repayments — to a net drain, with repayments now exceeding loan disbursements.” Paying off debts was starting to jeopardise spending on hospitals, schools, and climate change, the Lowy report found. “Pressure from Chinese state lending, along with surging repayments to a range of international private creditors, is putting enormous financial strain on developing economies.”The report also raised questions about whether China could seek to parlay these debts for “geopolitical leverage”, especially after the United States slashed foreign aid. While Chinese lending was falling almost across the board, the report said there were two areas that seemed to be bucking the trend. The first was in nations such as Honduras and Solomon Islands, which received massive new loans after switching diplomatic recognition from Taiwan to China. The other was in countries such as Indonesia or Brazil, where China has signed new loan deals to secure battery metals or other critical minerals.

Stocks fluctuate as traders await next moves in Trump trade war

Equities in Asia and Europe were mixed Tuesday as investors awaited the latest developments in Donald Trump’s trade war.With Wall Street closed for a holiday, there were few major catalysts to drive business, though investors remain on their toes after the US president’s threat of 50 percent tariffs on European Union goods and subsequent delay reviving volatility.But analysts said the uncertainty caused by Trump’s capricious policy announcements, along with his plans to extend tax cuts, was hurting confidence in the US economy and pushing Treasury yields higher.”Markets are once again dancing on hot coals, front-running White House mood swings while dodging macro landmines,” said Stephen Innes at SPI Asset Management.”With yields dangling like anvils and tariff threats swinging like wrecking balls, the only thing certain is that the music won’t stop — until it does. Traders, keep your running shoes on.”Europe bounced on the news of the tariff delay, and European Commission President Ursula von der Leyen’s pledge to move swiftly on a trade deal with the White House.But Asia swung between gains and losses.Tokyo, Hong Kong, Sydney, Singapore and Wellington all rose with London as it reopened after a long weekend, while Frankfurt and Paris also extended Monday’s gains.Shanghai, Seoul, Manila, Mumbai, Jakarta, Bangkok and Taipei were slightly lower. The yen rose against the dollar after BoJ boss Kazuo Ueda said he intended to keep raising borrowing costs if the economy performs as expected.But the Japanese currency reversed course after yields on Japanese bonds sank after reports of a questionnaire from the finance ministry asking market players for their views on debt issuance.The moves come after the sale of 20-year notes saw the worst response in more than 20 years, putting pressure on officials to stabilise the market. Yields on long-term bonds sank after hitting record highs last week.The yen, which hit 142.12 per dollar in early trade, retreated to 143.86 in the afternoon.Still, the dollar remains under pressure against its main peers as investors look nervously at Trump’s trade policy and tax bill, which could add trillions to the US national debt, putting upward pressure on US yields.”In a way, all roads have led to a weaker dollar. Higher perceived US deficits have raised concerns about increased future Treasury issuance, pushing up term premium and seeing people migrate away from the dollar,” said Pepperstone’s Chris Weston.”Concerns of weaker US growth in the second half of 2025 sees dollar sellers. Tariff risk resurfaces, the dollar trades lower and when the tariff risk and the implementation date is subsequently pushed back, again we see the dollar lower.”Traders are also awaiting the release of minutes from the Federal Reserve’s May policy meeting, hoping for an idea about its plans in light of the trade war, while the central bank’s preferred inflation gauge is due at the end of the week.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)London – FTSE 100: UP 0.9 percent at 8,794.85Dollar/yen: UP at 143.77 yen from 142.81 yen on MondayEuro/dollar: DOWN at $1.1342 from $1.1382Pound/dollar: DOWN at $1.3524 from $1.3563Euro/pound: DOWN at 83.88 pence from 83.91 penceWest Texas Intermediate: DOWN 0.4 percent at $61.29 per barrelBrent North Sea Crude: DOWN 0.3 percent at $64.56 per barrelNew York – Dow: Closed for a holiday