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China’s manufacturing activity grew in March for the highest rate in a year, official data showed Monday, a rare bright spot as the world’s second-largest economy struggles to climb out of a prolonged slump.Authorities have looked in recent months to revive confidence in the Chinese economy, grappling with a prolonged property sector crisis and now under increasing pressure from fresh trade tensions with the United States.The Purchasing Managers’ Index — a key measure of industrial output — came in at 50.5 in March, according to the National Bureau of Statistics (NBS), above the 50-point mark that separates growth and contraction.The reading for March was up from February’s 50.2, and the highest in twelve months.Manufacturing was boosted by workers’ return to work after the traditional Spring Festival travel period in February and the fact that “enterprises’ production and operating activities accelerated,” NBS statistician Zhao Qinghe said in a statement.The non-manufacturing PMI, which measures activity in the services sector, came in at 50.8, up from February’s 50.4.China has in recent years battled stuttering youth unemployment, stubbornly low consumer demand and a persistent property sector debt crisis.Higher US tariffs on Chinese exports are also expected to hit domestic manufacturers in the coming months.”The manufacturing sector faces downside risk in Q2 as the external demand weakens, driven by the tariffs and the economic slowdown in the US,” Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, said in a note.”The big question is how much export growth will decline, and how quickly the fiscal spending will pick up to offset weaker exports,” he added.Authorities announced a raft of stimulus measures last year including rate cuts and the easing of some home purchasing restrictions.And leaders at a key political meeting this month vowed to create 12 million new urban jobs in 2025.They also said they were aiming for total growth this year of five percent — the same as 2024 and a goal considered ambitious by many economists.

Tokyo led another plunge across Asian markets Monday while gold hit a record high as investors steel themselves for a wave of US tariffs this week that has fuelled recession fears.Equities across the planet have been hammered in recent weeks ahead of Donald Trump’s “Liberation Day” on April 2, when his administration will unveil a series of levies against friend and foe alike, citing what he says are unfair trading practices.His announcement last week that he would also impose 25 percent duties on imports of all vehicles and parts ramped up the fear factor on trading floors, hammering car giants including Japan’s Toyota, the world’s biggest.Governments around the world have pushed back on Trump’s tariffs, and could announce more countermeasures, while Canadian Prime Minister Mark Carney told Trump on Friday that he will implement retaliatory tariffs to protect his country’s workers and economy.Adding to the dour mood was data showing the Federal Reserve’s preferred gauge of inflation rose more than expected last month amid worries Trump’s tariffs will fan price rises and further dent hopes for interest rate cuts.Japan’s Nikkei 225 index plunged more than four percent at one point, extending last week’s slide, as Toyota, Nissan and Mazda shed more around three percent, while tech investment titan SoftBank tanked more than five percent. Zensho Holdings, which owns several Japanese restaurant franchises, plunged five percent after its beef bowl chain Sukiya said it would temporarily shut nearly all of its roughly 2,000 branches after a rat was found in a miso soup and a bug in another meal.Seoul was also sharply lower.”Within the Asia-Pacific region, the car levies will hit Japan and South Korea the hardest. About six percent of Japan’s total exports are cars shipped to the US. In South Korea’s case, it’s four percent,” Moody’s Analytics economists wrote. “Such a sizeable tariff hike will undermine confidence, hit production and reduce orders. Given the long and complex supply chains in car manufacturing, the impact will ripple through these countries’ economies. “Back-of-the-envelope calculations suggest the action could shave 0.2 to 0.5 percentage points from growth in each.”There were also losses in Hong Kong, Sydney, Shanghai, Wellington, Taipei and Manila.Gold, a safe haven in times of uncertainty and turmoil, hit a record high of $3,106.79.The selling followed a hefty selloff on Wall Street, where the Dow tumbled 1.7 percent, the S&P 500 lost 2.0 percent and the Nasdaq dived 2.7 percent.US investors were jolted by figures showing the core personal consumption expenditures (PCE) index came in above forecasts in February.Analysts said that while the reading was not a blowout, its timing amid a period of uncertainty added to the sense of gloom, when traders had been hoping for a little reassurance.”Markets will now be fully at the mercy of an impending deluge of tariff-related headlines, while highly reactive to any US economic data that accelerates the thematic of slower economic activity and higher expected inflation,” said Chris Weston at Pepperstone. – Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 3.9 percent at 35,691.52 (break)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 23,278.18Shanghai – Composite: DOWN 0.1 percent at 3,349.68Euro/dollar: DOWN at $1.0833 from $1.0838 on FridayPound/dollar: UP at $1.2958 from $1.2947Dollar/yen: DOWN at 149.05 yen from 149.72 yenEuro/pound: DOWN at 83.60 pence from 83.68 penceWest Texas Intermediate: DOWN 0.4 percent at $69.08 per barrelBrent North Sea Crude: DOWN 0.3 percent at $73.42 per barrelNew York – Dow: DOWN 1.7 percent at 41,583.90 (close)London – FTSE 100: DOWN 0.1 percent at 8,658.85 (close)

China, South Korea and Japan agreed Sunday to strengthen free trade in the face of a raft of new tariffs imposed by US President Donald Trump.The agreement came at a meeting of top trade officials — the first at that level in five years — days ahead of the start of tariffs on a huge range of US imports, including cars, trucks, and auto parts.South Korea and Japan are major auto exporters, while China has also been hit hard by the US tariffs. The meeting was attended by South Korea’s industry minister Ahn Duk-geun, his Japanese counterpart Yoji Muto, and China’s Wang Wentao.The three countries called for their negotiations for a comprehensive trilateral free-trade agreement to be speeded up, and agreed to create “a predictable trade and investment environment”, a statement said. South Korea’s Ahn said the three countries must respond “jointly” to shared global challenges.”Today’s economic and trade environment is marked by increasing fragmentation of the global economy,” he said.”The international environment surrounding us is constantly changing, and uncertainties are increasing,” Japanese trade official Yasuji Komiyama said in a press briefing.Chinese official Wang Liping said “unilateralism and protectionism are spreading” and the three countries must assume responsibility to safeguard the multilateral trading system.The three countries account for 20 percent of the world’s population, 24 percent of the global economy, and 19 percent of global merchandise trade, he said.Trump has promised tariffs tailored to each trading partner from April 2 to remedy practices he deems unfair.But he also told reporters last week that there would be “flexibility”, and markets appeared to react with some relief at the end of last week.

China’s fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say.Hong Kong conglomerate CK Hutchison this month sold 43 ports in 23 countries — including operations in the vital Central American canal — to a group led by giant asset manager BlackRock for $19 billion in cash.After two weeks of rhetoric, Beijing hardened its response on Friday and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned.Speaking before the review was announced, experts told AFP that the deal allowed US President Donald Trump to claim credit for “taking back” the canal as part of his “America First” agenda.”The US (created) a political issue at China’s expense and then has been able to declare victory,” said Kurt Tong, managing partner at The Asia Group and a former top US diplomat to Hong Kong.”That doesn’t feel good in Beijing.”Some of the ports being sold are in nations that participate in Beijing’s Belt and Road Initiative (BRI) — a global development framework championed by Chinese President Xi Jinping.Ports are crucial to that network and China “has been notably successful in this area”, said Henry Gao, a trade law expert at the Singapore Management University.Last month, Panama formally exited the BRI following a visit from US Secretary of State Marco Rubio.”There is indeed a growing trend of ‘weaponising’ ports and trade infrastructure as tools of geopolitical leverage,” Gao said.- ‘Nightmare’ scenario? -On March 4, CK Hutchison sent shockwaves through China’s shipping industry by announcing a deal of “unprecedented scale”, according to Xie Wenqing, a port development researcher at the Shanghai International Shipping Institute.Chinese shipping firms questioned whether they could ensure neutral passage once the ports changed hands, he told AFP.”There are concerns about additional costs for Chinese ships or discriminatory treatment in terms of queuing orders,” he added, highlighting the long-arm jurisdiction of US authorities.The deal — coupled with recent US tariff hikes — could undermine China’s manufacturing dominance, argued Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China.”Increased inspections and additional docking costs would erode China’s competitive edge and disrupt global supply chains,” he noted.The United States has used various justifications to target key infrastructure projects under the Belt and Road Initiative “to strip away these assets and weaken China’s position as the world’s factory”, Wang added.John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies, said the deal would not serve China’s interests but said some concerns were “overblown”.Port operators such as CK Hutchison are commercial entities constrained by law and cannot decide matters of national sovereignty, for example whether a ship could visit a port or not.”If (operators) were to blatantly favour one company over another, that would generally speaking… be illegal,” Bradford said. “Most countries have laws which say you have to treat different customers similarly, so the nightmare scenarios are not particularly realistic.”- Hong Kong’s role -Beijing’s next steps in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China’s business gateway to the world, according to analysts.”This whole Panama ports issue has refocused attention on the question (of) whether Hong Kong is a good place to put assets or to do business,” said Tong, the former diplomat.”Certainly the foreign business community operating in Hong Kong is watching this issue very closely.”CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China.That did not stop the State Administration for Market Regulation from announcing the antitrust review on Friday.Jet Deng, a senior partner at the Beijing office of law firm Dentons, said China’s antitrust laws can be applicable outside its borders, similar to those of the United States and the European Union.Once a deal meets China’s reportability threshold, a declaration is required even if the transaction takes place abroad, as long as the parties involved had substantial operations in mainland China, he said.Firms that fail to declare may be fined for up to 10 percent of their operating income from the preceding year, Deng added.Hung Ho-fung, a political scientist at Johns Hopkins University, said Beijing risks spooking “cautious” foreign firms that have already lowered their business exposure in Hong Kong.If the deal crumbles under Chinese pressure, people may believe that Hong Kong is converging with mainland China where “national security considerations are of utmost importance in any business deal”, Hung said.

Sky-high tobacco prices in Australia have created a lucrative black market, analysts say, sparking a violent “tobacco war” and syphoning away billions in potential tax revenue.Faced with a pack of 25 cigarettes costing up to Aus$50 (US$32) or more — including Aus$1.40 in tax on each stick — many smokers have instead turned to readily available illicit tobacco.At the same time, authorities have cracked down on vapes, restricting legal sales to pharmacies and opening up another illegal market for people in search of affordable nicotine.In March, the government cut its budget forecast for tobacco tax revenue in the period to 2029 by Aus$6.9 billion.”We’ve got a challenge here and too many people are avoiding the excise,” Treasurer Jim Chalmers conceded after revealing the figures.He announced an extra Aus$157 million for a multi-agency force battling organised crime groups involved in the market and a string of “tobacco war” fire-bombings.The situation was a “total disaster”, said James Martin, criminology course director at Deakin University in Melbourne.”We have taken a public health issue, smoking, and our tobacco control policies have transformed it into a multi-fronted crisis,” he told AFP.”It is a fiscal crisis, so we are losing billions and billions of dollars in tobacco tax excise but also, more concerning for me as a criminologist, it has turned into a major crime problem.”Since the start of 2023, there had been more than 220 arson attacks targeting either black-market retailers or store owners who refuse to stock illicit tobacco products, Martin said.- Extortion and intimidation -“This is really serious organised crime, extortion and intimidation of otherwise law-abiding citizens.”Alleged crime figures named in local media as big players include convicted heroin trafficker Kazem Hamad, who was deported to Iraq in 2023, and an infamous Melbourne crime family. Australian Criminal Intelligence Commission chief Heather Cook said criminals fighting over the “lucrative” illegal market were associated with “violence and dangerous behaviour”.”This is impacting communities,” she told Melbourne’s Herald Sun in February.Law enforcement alone could not solve the problem, Martin said. “If we just keep making nicotine harder to get to, people are going to turn to the black market.”Australia had made two mistakes, he said: pricing legal cigarettes so high that a pack-a-day habit cost about Aus$15,000 a year and at the same time heavily restricting sales of vapes, which were predominantly sold on the black market.”The government needs to lower the tobacco tax excise to stop the bleed to the black market, and they need to legalise consumer vaping products.”New Zealand was the only country that had successfully introduced a similar tobacco taxation policy to Australia’s, Martin said.”But they did it by legalising vaping back in 2020,” he added.”So, New Zealand used to have a higher smoking rate than we did back just four years ago. It’s now substantially lower than Australia’s.”Illicit cigarettes are flowing into Australia from China and the Middle East, with vapes predominantly being sourced from Shenzhen in China, the criminologist said.- ‘War on nicotine’ -And the black market still thrives despite the Australian Border Force saying it detected huge volumes of illicit tobacco in the year to June 30, 2024 — 1.8 billion cigarettes and more than 436 tonnes of loose leaf tobacco.Daily tobacco smoking in Australia has fallen sharply over the past decades: from 24 percent of those aged over 14 in 1991 to 8.3 percent by 2023, according to a national household survey.But monitoring of nicotine in Australian wastewater — whether from cigarettes, vapes, or nicotine replacement products — showed consumption per person had remained “relatively stable” since 2016, according to the government’s health and welfare institute.Edward Jegasothy, senior lecturer in public health at the University of Sydney, said smoking rates in Australia fell just as fast during periods of sharp price increases as they did when prices were stable.The black market had undermined government policy by providing a cheaper alternative, he told AFP.To address the problem, authorities would probably need to lower taxes on tobacco and strengthen law enforcement, he said.Broader nicotine restrictions in Australia had left people with fewer less harmful alternatives to tobacco, Jegasothy said.People switching to vapes were going to the unregulated market where concentrations of nicotine and other adulterants were unknown, he said. “So that’s another risk that’s unnecessarily there because of the black market.”The high tobacco tax policy also hit people in the lowest socioeconomic groups the hardest, Jegasothy said, both because they were spending a higher proportion of their incomes on it, and because they had higher rates of smoking.Australia’s “disproportionate” focus on cutting nicotine supply rather than reducing demand and harm echoed the “War on Drugs”, Jegasothy argued in a joint paper with Deakin University’s Martin.”As with Australia’s broader War on Drugs, there is little evidence to suggest that our de facto War on Nicotine is an optimal strategy for reducing nicotine-related harms,” it warns.

Stock markets plunged Friday as a closely watched US inflation reading heated up amid intensifying concerns over fallout from President Donald Trump’s incoming wave of tariffs.Shares in automakers fell further as they brace for 25 percent US tariffs due to kick in next week along with a raft of “reciprocal” surcharges tailored to different countries.The market mood has soured over fears that Trump’s plans will trigger tit-for-tat measures that would rekindle inflation, which could put the brakes on interest rate cuts and spark a recession.”Investors remain nervous over the economic repercussions from President Trump’s tariff threats, just days before he unleashes his ‘reciprocal tariffs'” on April 2, said David Morrison, senior market analyst at financial services provider Trade Nation.In Europe, London just about held the line, closing barely off in the week’s final session. But Paris, Frankfurt and Milan all slid around one percent.On Wall Street, all three major indexes closed sharply lower, with the Dow tumbling 1.7 percent, the S&P 500 losing 2.0 percent and Nasdaq diving 2.7 percent.The slide came after official data showed the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, remained unchanged last month at 2.5 percent.But another key figure, core inflation, which strips out volatile food and energy costs, rose more than expected at 2.8 percent in February on an annual basis, up from the month before.”The (PCE) report isn’t devastating, but given the current economic uncertainty and market volatility, investors were looking for reassurance in this report — not something to fan the flames,” said Bret Kenwell, US investment analyst at trading platform eToro.In Europe, automakers Volkswagen, Renault and Stellantis, whose brands include Jeep, Peugeot and Fiat, fared particularly badly. Shares in General Motors and Ford also slumped on Wall Street.Tokyo’s stock market sank 1.8 percent as the world’s biggest carmaker Toyota fell, along with Honda, Nissan and Mazda.Seoul was off 1.9 percent as Hyundai gave up 2.6 percent.Uncertainty over Trump’s plans and long-term intentions has led investors to rush into safe havens such as gold, which hit a new record high of $3,085.96 an ounce on Friday.Governments around the world have pushed back on Trump’s tariffs, and could announce more countermeasures next week.On Friday, Canadian Prime Minister Mark Carney told Trump that Ottawa will implement retaliatory tariffs to protect its workers and economy, after Washington announces added trade actions on April 2.Tariff worries also led to falls on stock markets in Hong Kong and Shanghai.Bangkok was in the red when trading was suspended as a powerful earthquake in neighboring Myanmar shook the Thai capital.Investors also kept tabs on Beijing, where Chinese President Xi Jinping met business leaders, pledging the country’s door would “open wider and wider” but also warning of “severe challenges” to the world trading system.- Key figures around 2035 GMT -New York – Dow: DOWN 1.7 percent at 41,583.90 points (close)New York – S&P 500: DOWN 2.0 percent at 5,580.94 (close)New York – Nasdaq: DOWN 2.7 percent at 17,322.99 (close)London – FTSE 100: DOWN 0.1 percent at 8,658.85 (close)Paris – CAC 40: DOWN 0.9 percent at 7,916.08 (close)Frankfurt – DAX: DOWN 1.0 percent at 22,461.52 (close)Tokyo – Nikkei 225: DOWN 1.8 percent at 37,120.33 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 23,426.60 (close)Shanghai – Composite: DOWN 0.7 percent at 3,351.31 (close)Euro/dollar: UP at $1.0838 from $1.0796 on ThursdayPound/dollar: FLAT at $1.2947 from $1.2947Dollar/yen: DOWN at 149.72 yen from 151.04 yenEuro/pound: UP at 83.68 pence from 83.38 penceWest Texas Intermediate: DOWN 0.8 percent at $69.36 per barrelBrent North Sea Crude: DOWN 0.5 percent at $73.63 per barreldan-ajb-lth-bys/sst

Stock markets took a tumble Friday as a closely watched US inflation reading heated up, adding to concerns over the fallout from an incoming wave of tariffs by President Donald Trump.Shares in automakers fell further as they brace for 25-percent US levies due to kick in early next week along with a raft of “reciprocal” tariffs tailored to different countries.The market mood has soured over fears that Trump’s tactics will trigger tit-for-tat tariffs that would rekindle inflation, which could put the brakes on interest-rate cuts and spark a recession.”Investors remain nervous over the economic repercussions from President Trump’s tariff threats, just days before he unleashes his ‘reciprocal tariffs'” on April 2, said David Morrison, senior market analyst at financial services provider Trade Nation.In Europe, while London just about held the line, closing barely off in the week’s final session, Paris, Frankfurt and Milan all slid around one percent.But the red was all the more pronounced on Wall Street as the tech-heavy Nasdaq gave up 2.6 percent while the Dow and the broad-based S&P 500 both shed around 1.5 percent.The slide came after official data showed the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, remained unchanged last month at 2.5 percent.But another key figure, core inflation, which strips out volatile food and energy costs, rose more than expected at 2.8 percent in February on an annual basis, up from 2.6 percent the month before.”The (PCE) report isn’t devastating, but given the current economic uncertainty and market volatility, investors were looking for reassurance in this report — not something to fan the flames,” said Bret Kenwell, US investment analyst at trading platform eToro.Paris and Frankfurt stocks dropped, with automakers Volkswagen, Renault and Stellantis, whose brands include Jeep, Peugeot and Fiat, faring particularly badly.General Motors and Ford had more limited losses on Wall Street.London finished nearly flat after data showed the UK economy expanded more than initially estimated last year and retail sales rose. Tokyo’s stock market sank 1.8 percent as the world’s biggest carmaker Toyota fell, along with Honda, Nissan and Mazda.Seoul was off 1.9 percent as Hyundai gave up 2.6 percent.Uncertainty over Trump’s plans and long-term intentions has led investors to rush into safe havens such as gold, which hit a new record high of $3,085.96 an ounce on Friday.Governments around the world have hit out at Trump’s latest tariffs, with Canadian Prime Minister Mark Carney saying his country’s “old relationship” of deep economic, security and military ties with Washington “is over”.Tariff worries also saw Hong Kong and Shanghai stock markets fall.Bangkok was in the red when trading was suspended as the Thai capital was shaken by a powerful earthquake in neighbouring Myanmar.Investors also kept tabs on Beijing, where Chinese President Xi Jinping met business leaders, pledging the country’s door would “open wider and wider” — but also warning of “severe challenges” to the world trading system.- Key figures around 1645 GMT -New York – Dow: DOWN 1.5 percent at 41,671.29 pointsNew York – S&P 500: DOWN 1.8 percent at 5,593.87New York – Nasdaq: DOWN 2.6 percent at 17,338.65London – FTSE 100: DOWN 0.1 percent at 8,658.85 (close)Paris – CAC 40: DOWN 0.9 percent at 7,916.08 (close)Frankfurt – DAX: DOWN 1.0 percent at 22,461.52 (close)Tokyo – Nikkei 225: DOWN 1.8 percent at 37,120.33 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 23,426.60 (close)Shanghai – Composite: DOWN 0.7 percent at 3,351.31 (close)Euro/dollar: UP at $1.0823 from $1.0796 on ThursdayPound/dollar: DOWN at $1.2934 from $1.2947Dollar/yen: DOWN at 150.11 yen from 151.04 yenEuro/pound: UP at 83.63 pence from 83.38 penceWest Texas Intermediate: DOWN 1.1 percent at $69.15 per barrelBrent North Sea Crude: DOWN 0.8 percent at $73.47 per barrel

India on Friday announced a $7.3 billion deal to purchase 156 locally made light combat Prachand helicopters for its air force and the army — part of its ongoing push to be self-reliant on defence.The country’s first locally designed and developed combat helicopter will be produced at the country’s largest helicopter factory, opened by Prime Minister Narendra Modi in February 2023.”This decision marks a major boost to India’s combat capabilities and self-reliance,” defence minister Rajnath Singh said on X. “This is indeed a proud moment for India’s Make in India journey.”His ministry said it had signed contracts with state-owned Hindustan Aeronautics Limited.”The supply of these helicopters shall commence from the third year and will be spread over the next five years”, the ministry said, without giving specific dates.The new aircraft will “enhance the combat capability of armed forces at high altitudes,” it added.The country’s recent push to modernise and locally produce defence equipment was spurred by its deadliest clashes in decades with China along their long and disputed border in 2020.India has also fought multiple wars with its other nuclear-armed neighbour, Pakistan, and has tens of thousands of troops deployed along both of those tense frontiers. The new helicopters will be deployed around the country’s tough high-altitude Himalayan frontiers. In recent years, India has introduced its first locally made aircraft carrier. It also become only one of six countries with nuclear strike capabilities on land, sea and air after it tested a ballistic missile from its first homegrown nuclear-powered submarine.Modi has pledged to “gradually reduce India’s dependence on foreign countries for its defence needs”, but the country still remains one of the biggest hardware importers in the world. New Delhi has tried to cut its dependence on Russia, its traditional ally and primary source of key military platforms for decades. It has procured key hardware worth billions of dollars from countries like Israel, France and the United States in recent years.Modi has also eased investment and co-production rules to spur local defence manufacturing. 

Stock markets fell on Friday as a closely-watched US inflation reading heated up, adding to concerns over the fallout from an incoming wave of tariffs by President Donald Trump.Shares in automakers fell further as they brace for 25-percent levies due to kick in early next week along with a raft of “reciprocal” tariffs tailored to different countries.The market mood has soured over fears that Trump’s tactics will trigger tit-for-tat tariffs that would rekindle inflation, which could put the brakes on interest rate cuts and spark a recession.”Investors remain nervous over the economic repercussions from President Trump’s tariff threats, just days before he unleashes his ‘reciprocal tariffs’ (on April 2),” said David Morrison, senior market analyst at financial services provider Trade Nation.Wall Street opened in the red after official data showed the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, remained unchanged last month at 2.5 percent.But another key figure, core inflation, which strips out volatile food and energy costs, rose more than expected at 2.8 percent in February on an annual basis, up from 2.6 percent the month before.A tit-for-tat trade war and a reignition of inflation that could force the Fed and other central banks to rethink plans to cut interest rates.”The (PCE) report isn’t devastating, but given the current economic uncertainty and market volatility, investors were looking for reassurance in this report — not something to fan the flames,” said Bret Kenwell, US investment analyst at eToro trading platform.In Spain, data showed inflation eased to 2.3 percent in March as rainy weather boosted hydro power production and drove down electricity prices. Consumer prices rises remained unchanged in France at 0.8 percent.Paris and Frankfurt stocks dropped, with automakers Volkswagen, Renault and Stellantis, whose brands include Jeep, Peugeot and Fiat, faring particularly badly.General Motors and Ford had more limited losses on Wall Street.London bucked the trend, with the FTSE 100 index rising as data showed that the UK economy expanded more than intially estimated last year and retail sales rose. Tokyo’s stock market sank 1.8 percent as the world’s biggest carmaker Toyota fell, along with Honda, Nissan and Mazda.Seoul was off 1.9 percent as Hyundai gave up 2.6 percent.Uncertainty over Trump’s plans and long-term intentions has led investors to rush into safe havens such as gold, which hit a new record high of $3,085.96 an ounce on Friday.Governments around the world have hit out at Trump’s latest tariffs, with Canadian Prime Minister Mark Carney saying the “old relationship” of deep economic, security and military ties with Washington “is over”.Tariff worries also saw Hong Kong and Shanghai stock markets fall.Bangkok was in the red when trading was suspended as the Thai capital was shaken by a powerful earthquake in neighbouring Myanmar.Investors also kept tabs on Beijing, where Chinese leader Xi Jinping met leading business leaders pledging the country’s door would “open wider and wider”.He also warned the world trading system was facing “severe challenges”.- Key figures around 1340 GMT -New York – Dow: DOWN 0.2 percent at 42,216,50 pointsNew York – S&P 500: DOWN 0.2 percent at 5,683.38New York – Nasdaq: DOWN 0.4 percent at 17,741.10London – FTSE 100: UP 0.1 percent at 8,673.30 Paris – CAC 40: DOWN 0.5 percent at 7,949.83Frankfurt – DAX: DOWN 0.4 percent at 22,593.76 Tokyo – Nikkei 225: DOWN 1.8 percent at 37,120.33 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 23,426.60 (close)Shanghai – Composite: DOWN 0.7 percent at 3,351.31 (close)Euro/dollar: UP at $1.0803 from $1.0796 on ThursdayPound/dollar: UP at $1.2957 from $1.2947Dollar/yen: DOWN at 150.62 yen from 151.04 yenEuro/pound: UP at 83.40 pence from 83.38 penceWest Texas Intermediate: DOWN 0.3 percent at $69.73 per barrelBrent North Sea Crude: DOWN 0.4 percent at $73.04 per barrel

China’s market regulator said it will review Hong Kong conglomerate CK Hutchison’s sale of Panama Canal ports to a US-led consortium, a Beijing-backed newspaper in Hong Kong reported on Friday.The business empire built by Hong Kong billionaire Li Ka-shing offloaded its global ports business outside China — including operations in the vital Central American canal — this month to a group led by giant asset manager BlackRock for $19 billion in cash.The State Administration for Market Regulation was “aware of this transaction and will conduct a review in accordance with the law, to protect fair market competition and public interest”, a spokesperson for the regulator said, quoted by Beijing-backed newspaper Ta Kung Pao.The deal came after weeks of pressure from US President Donald Trump, who refused to rule out military intervention to “take back” the crucial waterway from alleged Chinese control.The agreement was to be signed by April 2 but it came under fire from two Chinese government offices overseeing Hong Kong affairs, one based in Beijing and the other in the former British colony.They reposted critical newspaper articles in recent weeks including an op-ed that blasted the move as “betraying and selling out all Chinese people”.On Friday night, those two offices republished the exchange between Ta Kung Pao and the regulator about the review.The signing of the April 2 deal will now not go ahead as planned, the Hong Kong-based South China Morning Post newspaper reported on Friday, citing “a source close to Hutchison”.The Chinese regulator and CK Hutchison did not immediately respond to an AFP request for comment.Jet Deng, a senior partner at the Beijing office of law firm Dentons, said China’s antitrust laws can be applicable outside its borders, similar to those of the United States and the European Union.Once a deal meets China’s reportability threshold, a declaration is required even if the transaction takes place abroad, as long as the parties involved had substantial operations in mainland China, Deng told AFP before the regulator’s announcement.Firms that fail to declare may be fined for up to 10 percent of their operating income from the preceding year, he added.CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China.Hong Kong leader John Lee said last week that concerns about the sale “deserve serious attention”, adding that the city will “handle it in accordance with the law and regulations”.The conglomerate has not publicly responded to criticism of the transaction.