Afp Business Asia

US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten American dominance in the fast-growing industry.The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.Shares in Nvidia, whose semiconductors power the AI industry, fell nearly 17 percent on Wall Street, erasing nearly $600 billion of its market value.The tech-rich Nasdaq index finished down more than three percent.DeepSeek, whose chatbot became the top-rated free application on Apple’s US App Store, said it spent only $5.6 million developing its model — peanuts when compared with the billions US tech giants have poured into AI.US “tech dominance is being challenged by China,” said Kathleen Brooks, research director at trading platform XTB. “The focus is now on whether China can do it better, quicker and more cost effectively than the US, and if they could win the AI race,” she said.Art Hogan, chief market strategist at B. Riley Wealth, described the market’s response Monday as “shoot first, ask questions later,” noting that some are skeptical of the Chinese company’s assertions.”Everyone is trying to figure out ‘Can it be believed?’ and ‘What does it mean,’” Hogan said.As DeepSeek rattled markets, the startup on Monday said it was limiting the registration of new users due to “large-scale malicious” cyberattacks on its services.AI players Meta and Microsoft are among the tech giants scheduled to report earnings this week, offering opportunity for comment on the emergence of the Chinese company.Shares in another US chip-maker, Broadcom, fell 17.4 percent while Dutch firm ASML, which makes the machines used to build semiconductors, saw its stock tumble 6.7 percent.Constellation Energy, which is planning to build significant energy capacity for AI, sank more than 20 percent.Wall Street’s broad-based S&P 500 index shed 1.5 percent while the Dow advanced 0.7 percent.In Europe, the Frankfurt and Paris stock exchanges closed in the red while London finish flat. Asian stock markets mostly slid.Just last week following his inauguration, Trump announced a $500 billion venture to build infrastructure for AI in the United States led by Japanese giant SoftBank and ChatGPT-maker OpenAI.SoftBank tumbled more than eight percent in Tokyo on Monday while Japanese semiconductor firm Advantest was also down more than eight percent and Tokyo Electron off almost five percent.- Interest rates in focus -Besides tech earnings, this week also sees interest-rate decisions from the US Federal Reserve and European Central Bank, ahead of American inflation data.Equities enjoyed a healthy run-up last week on the hope that Trump’s second administration would take a less hardball approach to global trade.However, his threat Sunday that he would hit Colombian goods with a 25 percent tariff — rising to 50 percent next week — and revoke the visas of government officials set off alarm bells.The move came after President Gustavo Petro blocked deportation flights from the United States. In response to Trump’s decision, Petro initially announced retaliatory levies of 25 percent on imports from the United States.But Bogota later backed down and agreed to accept the deported citizens, with Foreign Ministuis Gilberto Murillo saying they had “overcome the impasse.”- Key figures around 2120 GMT -New York – Dow: UP 0.7 percent at 44,713.58 (close)New York – S&P 500: DOWN 1.5 percent at 6,012.28 (close)New York – Nasdaq: DOWN 3.1 percent at 19,341.83 (close)London – FTSE 100: FLAT at 8,503.71 (close)Paris – CAC 40: DOWN 0.3 percent at 7,906.58 (close)Frankfurt – DAX: DOWN 0.5 percent at 21,282.18 (close)Tokyo – Nikkei 225: DOWN 0.9 percent at 39,565.80 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,197.77 (close)Shanghai – Composite: DOWN 0.1 percent at 3,250.60 (close)Euro/dollar: DOWN at $1.0492 from $1.0497 on FridayPound/dollar: UP at $1.2496 from $1.2484Dollar/yen: DOWN at 154.61 yen from 156.00 yen Euro/pound: DOWN at 83.94 pence from 84.08 penceBrent North Sea Crude: DOWN 1.8 percent at $77.08 per barrelWest Texas Intermediate: DOWN 2.0 percent at $73.17 per barrel

US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten US dominance in the fast-growing industry.The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.Shares in Nvidia, whose semiconductors power the AI industry, fell more than 15 percent in midday deals on Wall Street, erasing more than $500 billion of its market value.The tech-rich Nasdaq index fell more than three percent.AI players Microsoft and Google parent Alphabet were firmly in the red while Meta bucked the trend to trade in the green.DeepSeek, whose chatbot became the top-rated free application on Apple’s US App Store, said it spent only $5.6 million developing its model — peanuts when compared with the billions US tech giants have poured into AI.US “tech dominance is being challenged by China,” said Kathleen Brooks, research director at trading platform XTB. “The focus is now on whether China can do it better, quicker and more cost effectively than the US, and if they could win the AI race,” she said.US venture capitalist Marc Andreessen has described DeepSeek’s emergence as a “Sputnik moment” — when the Soviet Union shocked Washington with its 1957 launch of a satellite into orbit.As DeepSeek rattled markets, the startup on Monday said it was limiting the registration of new users due to “large-scale malicious attacks” on its services.Meta and Microsoft are among the tech giants scheduled to report earnings later this week, offering opportunity for comment on the emergence of the Chinese company.Shares in another US chip-maker, Broadcom, fell 16 percent while Dutch firm ASML, which makes the machines used to build semiconductors, saw its stock tumble 6.7 percent.”Investors have been forced to reconsider the outlook for capital expenditure and valuations given the threat of discount Chinese AI models,” David Morrison, senior market analyst at Trade Nation.”These appear to be as good, if not better, than US versions.”Wall Street’s broad-based S&P 500 index shed 1.7 percent while the Dow was flat at midday.In Europe, the Frankfurt and Paris stock exchanges closed in the red while London finish flat. Asian stock markets mostly slid.Just last week following his inauguration, Trump announced a $500 billion venture to build infrastructure for AI in the United States led by Japanese giant SoftBank and ChatGPT-maker OpenAI.SoftBank tumbled more than eight percent in Tokyo on Monday while Japanese semiconductor firm Advantest was also down more than eight percent and Tokyo Electron off almost five percent.- Interest rates in focus -Besides tech earnings, this week also sees interest-rate decisions from the US Federal Reserve and European Central Bank, ahead of American inflation data.Equities enjoyed a healthy run-up last week on the hope that Trump’s second administration would take a less hardball approach to global trade. However, his threat Sunday that he would hit Colombian goods with a 25 percent tariff — rising to 50 percent next week — and revoke the visas of government officials set off alarm bells.The move came after President Gustavo Petro blocked deportation flights from the United States. In response to Trump’s decision, Petro initially announced retaliatory levies of 25 percent on imports from the United States.But Bogota later backed down and agreed to accept the deported citizens, with Foreign Minister Luis Gilberto Murillo saying they had “overcome the impasse.”- Key figures around 1700 GMT -New York – Dow: FLAT at 44,445.61 pointsNew York – S&P 500: DOWN 1.7 percent at 5,995.77New York – Nasdaq: DOWN 3.0 percent at 19,361.47London – FTSE 100: FLAT at 8,503.71Paris – CAC 40: DOWN 0.3 percent at 7,906.58Frankfurt – DAX: DOWN 0.5 percent at 21,282.18Tokyo – Nikkei 225: DOWN 0.9 percent at 39,565.80 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,197.77 (close)Shanghai – Composite: DOWN 0.1 percent at 3,250.60 (close)Euro/dollar: DOWN at $1.0485 from $1.0497 on FridayPound/dollar: DOWN at $1.2469 from $1.2484Dollar/yen: DOWN at 154.33 yen from 156.00 yen Euro/pound: UP at 84.11 pence from 84.08 penceBrent North Sea Crude: DOWN 2.3 percent at $75.75 per barrelWest Texas Intermediate: DOWN 2.6 percent at $72.70 per barrel

Residents of the Afghan capital have complained of rising food prices as the local currency lost value against the US dollar in recent days. The currency fell to around 80 Afghanis to the dollar on Monday after hovering around 70 in recent weeks.Kabul residents have reported rising prices of basic goods and are concerned they will not readjust in one of the poorest countries in the world, where consumers are anxiously following policy announcements from US President Donald Trump’s new administration. Observers link the change to Trump’s decision to freeze US foreign assistance. The United States remains Afghanistan’s largest aid donor. Afghanistan’s currency stability in part depends on US dollars flowing in to aid organisations that are then exchanged in the market for Afghani, analysts said.The fear is that “this dollar is not going to come anymore. So the Afghani does not have takers”, said analyst Torek Farhadi, who was an adviser on the development of the Afghani in the years after the end of the first Taliban reign in 2001.For Abdul Maroof Niaz Zada, a 40-year-old Kabul shopkeeper, the fluctuation “may mean nothing to the rest of the world, but it has a big impact in Afghanistan”.”The price changes are not noticeable for the businessmen maybe but it’s very difficult for the poor,” he said, noting that the prices of daily goods such as flour, oil and rice had gone up by 200-500 Afghanis ($2.60 – $6.70). The World Food Programme said in January nearly 15 million people are going hungry across Afghanistan, with the UN agency providing aid to help people get through the country’s harsh winters.”Food, fuel, gas, everything gets expensive as the dollar goes up,” 28-year-old Tofan Ahmadi, who works at a Kabul currency exchange, told AFP. The Afghani’s stability depends “largely on Afghanistan’s ability to secure consistent foreign exchange inflows, either through sustained remittances, aid, or by diversifying its  export base”, the World Bank said in a December 2024 report. It underscored “the reduced capacity of Afghanistan’s foreign exchange reserves to shield the economy from external shocks”. The Afghan central bank, which told Afghans “not to worry” about currency fluctuations, met with major money changers and announced an auction of $25 million on Monday.

The tech-rich Nasdaq tumbled early Monday as traders around Wall Street and other global bourses reacted to the emergence of a low-cost Chinese generative AI venture that has apparently overtaken US companies.DeepSeek, which was developed by a start-up based in the eastern Chinese city of Hangzhou, has shown the ability to match the capacity of AI pace-setters such as Nvidia,  which sank more than 11 percent Monday, giving up some $400 billion in market value.The tech-rich Nasdaq led major indices lower, falling 2.7 percent, with AI players Meta, Microsoft and Google parent Alphabet all firmly lower.DeepSeek said they spent only $5.6 million developing their model — peanuts when compared with the billions US tech giants have poured into AI.US “tech dominance is being challenged by China,” said Kathleen Brooks, research director at XTB. “The focus is now on whether China can do it better, quicker and more cost effectively than the US, and if they could win the AI race.”Meta and Microsoft are among the tech giants scheduled to report earnings later this week, offering opportunity for comment on the emergence of the Chinese company, likened by venture capitalist Marc Andreessen to a “Sputnik moment,” when the Soviet Union shocked Washington with its 1957 launch of a satellite into orbit. “DeepSeek’s AI assistant is now the top-rated free application on Apple’s US App Store,” said a note from David Morrison, senior market analyst at FCA.”Investors have been forced to reconsider the outlook for capital expenditure and valuations given the threat of discount Chinese AI models. These appear to be as good, if not better, than US versions.”Earlier, European and Asian stock markets mostly slid as markets also digested the latest tariff back-and-forth involving US President Donald Trump and Colombia.- SoftBank sinks -Just last week following his inauguration, Trump announced a $500 billion venture to build infrastructure for AI in the United States.Tech and chip firms were among the big losers in Tokyo on Monday as the Nikkei ended in negative territory, with Advantest down more than eight percent and Tokyo Electron off almost five percent.SoftBank, which is a key investor in Trump’s AI project, tumbled more than eight percent.Besides tech earnings, this week also sees interest-rate decisions from the Federal Reserve and European Central Bank, ahead of American inflation data.Equities enjoyed a healthy run-up last week on the hope that Trump’s second administration would take a less hardball approach to global trade. However, his threat Sunday that he would hit Colombian goods with a 25 percent tariff — rising to 50 percent next week — and revoke the visas of government officials set off alarm bells.The move came after President Gustavo Petro blocked deportation flights from the United States. In response to Trump’s decision, Petro initially announced retaliatory levies of 25 percent on imports from the United States.But Bogota later backed down and agreed to accept the deported citizens, with Foreign Minister Luis Gilberto Murillo saying they had “overcome the impasse.”- Key figures around 1450 GMT -New York – Dow: DOWN 0.3 percent at 44,271.66New York – S&P 500: DOWN 1.7 percent at 6,000.18 New York – Nasdaq: DOWN 2.7 percent at 19,415.06London – FTSE 100: DOWN 0.1 percent at 8,495.07Paris – CAC 40: DOWN 0.4 percent at 7,899.44Frankfurt – DAX: DOWN 0.7 percent at 21,237.11Tokyo – Nikkei 225: DOWN 0.9 percent at 39,565.80 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,197.77 (close)Shanghai – Composite: DOWN 0.1 percent at 3,250.60 (close)Euro/dollar: UP at $1.0510 from $1.0497 on FridayPound/dollar: UP at $1.2499 from $1.2484Dollar/yen: DOWN at 154.29 yen from 156.00 yen Euro/pound: UP at 84.09 pence from 84.08 penceBrent North Sea Crude: DOWN 0.2 percent at $78.30 per barrelWest Texas Intermediate: DOWN 0.4 percent at $74.40 per barrel

European and Asian stock markets mostly slid Monday and Wall Street was forecast to open sharply lower on talk that a cheaper Chinese generative AI programme can outperform big-name rivals, notably in the United States.President Donald Trump’s threat to impose huge tariffs on Colombia in retaliation for its refusal to accept deportation flights from the United States was also unsettling markets.The fear is that Trump could go full throttle also with tariffs planned for China and other major trading partners.”US markets are likely to take centre stage today as a slump in the tech sector puts pressure on wider markets,” noted Joshua Mahony, analyst at traders Scope Markets. – Eyes on DeepSeek -Wall Street already took a hit Friday following the launch of the Chinese DeepSeek artificial intelligence programme last week.The firm said only $5.6 million was spent developing the model.The programme’s arrival has sparked competition fears, as US tech titans — including Nvidia, Meta and Alphabet — have made huge investments worth hundreds of billions of dollars into AI products that has sent their valuations soaring.The US tech sector saw sharp falls Monday in stocks futures trading ahead of Wall Street’s reopening. Just last week following his inauguration, Trump announced a $500-billion venture to build infrastructure for AI in the United States.Tech and chip firms were among the big losers in Tokyo on Monday as the Nikkei ended in negative territory, with Advantest down more than eight percent and Tokyo Electron off almost five percent.SoftBank, which is a key investor in Trump’s AI project, tumbled more than eight percent.The week also sees earnings from US big tech and interest-rate decisions from the Federal Reserve and European Central Bank, ahead of American inflation data.Equities enjoyed a healthy run-up last week on the hope that Trump’s second administration would take a less hardball approach to global trade as he held off imposing stiff levies on China and other partners immediately on taking office, as he warned he would.His comments that he would “rather not” hit Beijing, and a signal of openness to a trade deal added to the optimistic tone.However, news Sunday that he would hit Colombian goods with a 25 percent tariff — rising to 50 percent next week — and revoke the visas of government officials set off alarm bells.The move came after President Gustavo Petro blocked deportation flights from the United States. In response to Trump’s decision, Petro initially announced retaliatory levies of 25 percent on imports from the United States.But Bogota later backed down and agreed to accept the deported citizens, with Foreign Minister Luis Gilberto Murillo saying they had “overcome the impasse”.”Actions speak louder than words. The situation with Colombia just shows how little it takes for Trump to use tariffs as a negotiation tool,” said Dane Cekov at Sparebank 1 Markets.Gold — a haven investment in times of economic uncertainty — sat Monday just shy of its record high.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.3 percent at 8,480.22 pointsParis – CAC 40: DOWN 1.0 percent at 7,852.04Frankfurt – DAX: DOWN 1.4 percent at 21,101.03Tokyo – Nikkei 225: DOWN 0.9 percent at 39,565.80 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,197.77 (close)Shanghai – Composite: DOWN 0.1 percent at 3,250.60 (close)New York – Dow: DOWN 0.3 percent at 44,424.25 (close)Euro/dollar: UP at $1.0505 from $1.0500 on FridayPound/dollar: UP at $1.2497 from $1.2484Dollar/yen: DOWN at 154.02 yen from 155.93 yen Euro/pound: UP at 84.07 pence from 84.06 penceBrent North Sea Crude: UP 0.2 percent at $78.69 per barrelWest Texas Intermediate: UP 0.2 percent at $74.80 per barrel

Indebted Chinese property giant Vanke warned Monday of a major loss last year amid a continuing market slump, while also saying its CEO was resigning due to “health reasons”.Beijing has in recent years grappled with a prolonged crisis in the country’s vast real estate sector, once a key pillar of the economy but now beset with sprawling debt.Hong Kong-listed Vanke is part-owned by the government of Shenzhen and was China’s fourth-largest real estate firm by sales last year, according to research firm CRIC.Chinese outlet the Economic Reporter this month cited sources as saying that CEO Zhu Jiusheng had been “taken away by public security authorities”, but did not specify whether he had been formally detained.Vanke has not confirmed Zhu’s detention but said in a statement on Monday that he “has applied to resign… owing to health reasons”.Zhu “will no longer hold any position within the company”, the firm said.The Economic Observer article did not specify what offences Zhu may be alleged to have committed.It reported at the time that calls and messages to Zhu and people close to him had gone unanswered.Vanke did not respond to an AFP request for comment following the publication of the article.Two other top executives — chairman of the board Yu Liang and company secretary Zhu Xu — had left their positions “due to work adjustments” but would continue in other roles, according to the company.- Persistent woes -Alongside other Chinese real estate titans, Vanke has staggered through a years-long debt crisis, and on Monday in a filing at the Hong Kong Stock Exchange warned of a net loss of approximately 45 billion yuan ($6.2 billion) last year.Among the reasons for the expected losses were “the continuous market downturn”, while “sales and gross profit margins turned out to be lower than investment expectations”, Vanke said in the filing.”The Company deeply apologises for the performance loss and will make every effort to promote business improvement,” it wrote.”Looking forward, the Company considers that the industry has already got through the most difficult time, and is confident that the real estate market will stop falling and stabilise.”Vanke is among several major Chinese property firms to become embroiled in recent years in a debt crisis that has left developers in severe financial distress.Earlier this month, rating agency Moody’s downgraded Vanke’s credit rating to indicate a “negative” outlook.The company’s woes are emblematic of the recent downturn, which has spooked investors and weighed on consumer confidence, applying downward pressure on Beijing’s annual growth targets.Authorities posted one of China’s lowest rates of economic growth in decades earlier this month, suggesting that a string of recent policies aimed at stimulating activity have yet to fully kick in.Beijing in November announced support measures for the ailing property sector that included lowering deed tax rates for certain first and second homes in four major cities, including Beijing and Shanghai.Cities across the country have also announced various relaxations to purchasing restrictions in recent months, once implemented to limit harmful speculation.

Indebted Chinese property giant Vanke said Monday that its CEO had resigned due to “health reasons”, after state-backed media reported he had been taken away by authorities.The company also warned on Monday of a net loss of approximately 45 billion yuan ($6.2 billion) last year.Chinese outlet the Economic Reporter this month cited sources as saying that Zhu Jiusheng had been “taken away by public security authorities”, but did not specify whether he had been formally detained.Vanke has not confirmed Zhu’s detention but said in a statement on Monday that he “has applied to resign… owing to health reasons”.Zhu “will no longer hold any position within the company”, the firm said.Hong Kong-listed Vanke is part-owned by the government of Shenzhen and was China’s fourth-largest real-estate firm by sales last year, according to research firm CRIC.Alongside other real estate titans, it has staggered through a years-long debt crisis, and on Monday in a filing at the Hong Kong Stock exchange warned of a net loss of approximately 45 billion yuan last year.”The Company deeply apologises for the performance loss and will make every effort to promote business improvement,” it said in a separate statement.Two other top executives — chairman of the board Yu Liang and company secretary Zhu Xu — had left their positions “due to work adjustments” but would continue in other roles, according to the company.The Economic Observer article did not specify what offences Zhu may be alleged to have committed.It reported at the time that calls and messages to Zhu and people close to him had gone unanswered.Vanke did not respond to an AFP request for comment following the publication of the article.

An Indian state announced Monday it had begun implementing a common civil code to replace religious laws, stoking fear among minority Muslims of a looming nationwide rollout by the Hindu-nationalist ruling party.Introduction of a Uniform Civil Code (UCC) to replace India’s patchwork of laws on marriage, divorce and inheritance has been a longstanding goal of Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP).The northern state of Uttarakhand, taking in much of the Indian Himalayas, on Monday became just the second Indian state to implement such a law. Goa, the beach resort state on India’s west coast, is the only part of the country that already had a common civil code — introduced when it was still a Portuguese colony.Supporters say the UCC gives Muslim women the same rights as others by ending polygamy, setting equal property inheritance rights for sons and daughters, and requiring divorce processes take place before a civil court.It also makes it mandatory for couples to register live-in heterosexual relationships — or else face a three-month jail term or a fine.Uttarakhand Chief Minister Pushkar Singh Dhami said in a press conference announcing the law’s enactment that the UCC would bring about “equality”.”This code is not against any sect or religion. Through this, a way has been found to get rid of evil practices in the society,” added Dhami.The BJP has long campaigned for a standardised civil code but that has fuelled tensions, especially among minority Muslims who say such a move would infringe on their religious freedoms.Critics see its introduction in Uttarakhand as part of signal from the BJP to its base and a promise to implement the UCC nationally.Other BJP-ruled states such as Uttar Pradesh and Madhya Pradesh have signalled plans to bring in their own civil codes.- ‘Attack on identity’ -Muslim leaders say the UCC challenges Islamic laws on divorce, marriage and inheritance.”This is an attack on our identity,” Asma Zehra, president of the All India Muslim Women Association, told AFP.This move would create “huge challenges” for Muslim women because it would lead to a conflict between state laws and those of their faith, she told AFP.”This law is totally biased against Muslims and is a manifestation of Islamophobia,” she added.Other clauses of the newly minted law also sparked objections, including the mandatory registration of partners living together.”It is absolutely contrary to the right to privacy and personal autonomy,” senior lawyer Geeta Luthra told AFP.The state should not enter into the realm of what citizens do consensually, Luthra added.The Uttarakhand assembly had passed the UCC bill in February last year.

Asian markets mostly fell Monday on fresh trade fears after Donald Trump’s threat to impose huge tariffs on Colombia in retaliation for its refusal to accept deportation flights from the United States.Traders were also assessing the impact of a new, cheaper Chinese generative AI programme amid claims it can outperform big-name rivals and worries that a recent surge in the sector may be called into question.Equities enjoyed a healthy run-up last week on the hope that Trump 2.0 will take a less hardball approach to global trade as he held off imposing stiff levies on China and other partners immediately on taking office, as he warned he would.His comments that he would “rather not” hit Beijing, and a signal of openness to a trade deal added to the optimistic tone.However, news Sunday that he would hit Colombian goods with a 25 percent tariff — rising to 50 percent next week — and revoke the visas of government officials set off alarm bells.The move came after President Gustavo Petro blocked deportation flights from the United States. In response to Trump’s decision, Petro initially announced retaliatory levies of 25 percent on imports from the United States.But Bogota later backed down and agreed to accept the deported citizens, with Foreign Minister Luis Gilberto Murillo saying they had “overcome the impasse”.”Actions speak louder than words. The situation with Colombia just shows how little it takes for Trump to use tariffs as a negotiation tool,” said Dane Cekov at Sparebank 1 Markets.Traders were already gearing up for a big week that will see the Federal Reserve hold its first policy meeting of the year. While it is widely expected to hold rates, investors will be keeping a close eye on its statement and comments from Federal Reserve head Jerome Powell.There is a concern that Trump’s pledges to impose tariffs while slashing taxes, immigration and regulations could reignite inflation and force the central bank to pause its rate cuts or even hike them again.- Eyes on DeepSeek -The move against Colombia sent the dollar up against most of its peers, piling on around one percent against the Mexican peso. Gold, a safe haven in times of uncertainty, was sitting just shy of its record high.”This pivotal week kicks off in Asia, setting the stage for a global market spectacle intensely focused on the unfolding of… Trump’s economic agenda amidst key inflation reports and anticipated Fed guidance,” said Stephen Innes at SPI Asset Management. He added that markets were bracing for “a torrent of earnings reports from companies constituting nearly 40 percent of the S&P 500’s market capitalisation”.”Their outcomes could either amplify the recent bullish surge or instigate a reevaluation of market sentiments.”All three main indexes on Wall Street fell Friday, with the S&P 500 off a record high on profit-taking and as tech firms took a hit following the launch of the DeepSeek AI programme last week.The firm said only $5.6 million was spent developing the model.The programme’s arrival has sparked competition fears, as tech titans — including Nvidia, Meta and Alphabet — have made huge investments worth hundreds of billions of dollars into AI products and sent their valuations soaring.It also came on the heels of Trump’s announcement of a new $500 billion venture to build infrastructure for artificial intelligence in the United States.Tech and chip firms were among the big losers in Tokyo as the Nikkei ended in negative territory, with Advantest down more than eight percent and Tokyo Electron off almost five percent.SoftBank, which is a key investor in Trump’s AI project, tumbled more than eight percent.”What we’ve found is that DeepSeek… is the top performing, or roughly on par with the best American models,” Alexandr Wang, CEO of Scale AI, told CNBC.There were also losses in Shanghai, Singapore, Wellington, Mumbai, Bangkok and Manila but Hong Kong rose.London and Frankfurt opened on the back foot, having retreated Friday from record highs, while Paris also fell.- Key figures around 0815 GMT -Tokyo – Nikkei 225: DOWN 0.9 percent at 39,565.80 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,197.77 (close)Shanghai – Composite: DOWN 0.1 percent at 3,250.60 (close)London – FTSE 100: DOWN 0.3 percent at 8,477.60Dollar/yen: DOWN at 155.91 yen from 155.93 yen on FridayEuro/dollar: DOWN at $1.0460 from $1.0500Pound/dollar: DOWN at $1.2430 from $1.2484Euro/pound: UP at 84.15 pence from 84.06 penceWest Texas Intermediate: DOWN 0.5 percent at $74.28 per barrelBrent North Sea Crude: DOWN 0.4 percent at $78.17 per barrelNew York – Dow: DOWN 0.3 percent at 44,424.25 (close)

India’s efforts to pare back a longstanding reliance on Russian military hardware is bearing fruit after the courting of new Western allies and a rapidly growing domestic arms industry, analysts say.At a time when Moscow’s military-industrial complex is occupied with the ongoing war in Ukraine, India has made the modernisation of its armed forces a top priority.That urgency has risen in tandem with tensions between the world’s most populous nation and its northern neighbour China, especially since a deadly 2020 clash between their troops. “India’s perception of its security environment vis-a-vis China has been dramatically altered,” Harsh V Pant, of the New Delhi-based Observer Research Foundation think-tank, told AFP.Relations between the two neighbours went into freefall after the clash on their shared frontier, which killed 20 Indian and at least four Chinese soldiers. “It has sort of shaken the system and there’s a realisation that we have to do whatever is best now, and very fast,” Pant said of the incident. India has become the world’s largest arms importer with purchases steadily rising to account for nearly 10 percent of all imports globally in 2019-23, the Stockholm International Peace Research Institute (SIPRI) said last year.More is in the pipeline, with orders worth tens of billions of dollars from the United States, France, Israel and Germany in coming years.Modi will be in France next month where he is expected to sign deals worth about $10 billion for Rafale fighter jets and Scorpene-class submarines, Indian media reports say.- ‘Not easy to switch’ -Defence minister Rajnath Singh has also promised at least $100 billion in fresh domestic military hardware contracts by 2033 to spur local arms production. “India has been traditionally an importer for decades and only switched to emphasising on indigenous manufacturing… in the last decade,” strategic affairs analyst Nitin Gokhale told AFP.”It is not easy to switch, not everything can be manufactured or produced here,” he said, saying the country lacked the ability to manufacture “high-end technology” weapons systems.But its efforts have still seen numerous impressive milestones.  This decade India has opened an expansive new helicopter factory, launched its first homemade aircraft carrier, and conducted a successful long-range hypersonic missile test.That in turn has fostered a growing arms export market which saw sales last year worth $2.63 billion — still a tiny amount compared to established players, but a 30-fold increase in a decade.India is expected in the coming weeks to announce a landmark deal to supply Indonesia’s military with supersonic cruise missiles in a deal worth nearly $450 million. The government aims to triple this figure by 2029, with a significant chunk of the $75 billion it spent on defence last year aimed at boosting local production. – ‘Spread risks’ -India has deepened defence cooperation with Western countries in recent years, including in the much-feted Quad alliance with the United States, Japan and Australia.This reorientation has helped India sign various deals to import and locally co-produce military drones, naval ships, fighter jets and other hardware with suppliers from Western countries.It has also led to a precipitous drop in India’s share of arms from longstanding ally Russia, which supplied 76 percent of its military imports in 2009-13 but only 36 percent in 2019-23, according to SIPRI data. New Delhi has nonetheless sought to maintain the delicate balance between India’s historically warm ties with Moscow while courting closer partnerships with Western nations.Modi’s government has resisted pressure from Washington and elsewhere to explicitly condemn Russia’s 2022 invasion of Ukraine, instead urging both sides to the negotiating table.Gokhale said that India was not in the position to abandon its relationship with Russia, which still plays an important role as a supplier of advanced weaponry including cruise missiles and nuclear submarine technology.”India has certainly spread its risks by sourcing from other countries,” he said. “But Russia remains a very important and dependable partner.”