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Banking giant HSBC said Wednesday that CEO Georges Elhedery’s plan since October to simplify the company’s structure and geographic setup will yield $1.5 billion in annual cost savings by the end of 2026.Elhedery’s plan for a “simpler, more dynamic, and agile organisation” has shaken up Europe’s largest bank, whose shares in Hong Kong have rallied to an 11-year high.”Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy,” Elhedery said in an earnings statement on Wednesday.”Our strong 2024 performance provides firm financial foundations upon which to build for the future.”The firm said pre-tax profit rose six percent to $32.3 billion in 2024 — beating an estimate of $31.7 billion compiled by Bloomberg.Profit attributable to shareholders edged up two percent to $22.9 billion. The London-headquartered lender also announced a share buy-back of up to $2 billion to be completed by the time it announced this year’s first-quarter results. HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.Shortly after Elhedery became CEO, the lender said it would simplify its structure and split into four parts: Hong Kong, UK, “corporate and institutional banking” plus “international wealth and premier banking”.The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting its European and US operations.The restructuring “aims to generate approximately $0.3 billion of cost reductions in 2025, with a commitment to an annualised reduction of $1.5 billion in our cost base expected by the end of 2026”, it said Wednesday.HSBC added that it plans to incur costs of $1.8 billion over 2025 and 2026 to deliver the reductions.- Cost-cutting drive -Elhedery said he has “put in place a smaller, core team of exceptionally talented leaders” — but did not specify the scale of the layoffs across the bank.The lender said last month it would wind down parts of its investment banking operations in Europe, the United Kingdom and the Americas.The CEO said on Wednesday that his initiatives included “a comprehensive transformation of (HSBC) operations, modernising our infrastructure, and investing in technology such as AI, generative AI, data and analytics”.The lender considers both Britain and Hong Kong its “home markets”, though the balancing act has come under pressure as relations sour between China and the West. Elhedery’s predecessor Noel Quinn in 2023 fended off a call for HSBC to spin off its Asia assets.The bank projected that China this year will deliver performance “comparable” to its 2024 GDP growth of around five percent, as the nation transforms to a “consumption-led and innovation-focused economic model”.Outlook for interest rates “remains volatile and uncertain” particularly in the medium term, HSBC added.Last year HSBC gained $4.8 billion from disposing its banking business in Canada, while axing its Argentina operations led to a $1 billion loss.Operating expenses grew three percent to $33 billion in 2024. Revenue stayed flat at $65.9 billion.The bank’s Hong Kong-listed shares rose by more than one percent after the results announcement.

The US Senate voted Tuesday to confirm Wall Street billionaire Howard Lutnick as commerce secretary, a key step towards the rollout of President Donald Trump’s “America First” trade agenda, which uses tariffs as a broad negotiation tool.Trump has threatened sweeping levies on US allies and competitors alike, looking to tariffs not only as a way to raise revenue but also pressure other countries to act on US priorities.Lutnick, who was chief executive of financial services firm Cantor Fitzgerald, is a close ally of Trump’s and has been a defender of imposing tariffs on US imports.On Tuesday, he was confirmed by a vote of 51-45. A spokesman for Lutnick told AFP that he has stepped down from Cantor.He takes the helm at a department that advocates for US business interests and oversees an apparatus restricting the export of certain technology — including semiconductors — to adversaries, including China and Russia.The role will place him at the frontier of Washington’s tariff and trade agenda too, working with the US Trade Representative’s office.The Commerce Department is in charge of a nearly $53 billion program involving subsidies to stimulate the US chipmaking sector, which Lutnick earlier called an “excellent downpayment” despite stressing the need to review investments.During his confirmation hearing last month, Lutnick backed sweeping tariffs targeting countries rather than specific products and signaled a hawkish approach to Beijing.”We can use tariffs to create reciprocity, fairness and respect,” he told lawmakers.He also denied that tariffs would cause widespread inflation, despite economists’ concerns that duties could add to consumer costs in the short term and weigh on growth in the longer haul.The commerce secretary has a broad agenda to implement, and negotiations with some of the United States’ biggest trading partners to contend with.Trump has unveiled blanket duties of up to 25 percent on immediate US neighbors Canada and Mexico, threatening to snarl supply chains in key sectors like automobiles and setting off a flurry of negotiations.The levies, which Trump said were imposed over immigration and drug smuggling concerns, are due to take effect in early March after a month-long pause as talks continue.Separately, Trump also announced 25-percent tariffs on steel and aluminum imports from March 12, which officials said would pile atop the hefty rates threatened on Canada and Mexico.Looking ahead, Lutnick has signaled his willingness for broad “reciprocal tariffs” against US trading partners to start as early as April 2.These levies, which Washington said are aimed at correcting “long-standing imbalances” in trade, would be tailored to each country.Officials would consider both the tariffs countries impose on US goods as well as taxes seen as “discriminatory” — such as value-added taxes.

Global stock markets held largely steady on Tuesday as top US and Russian diplomats held their first high-level discussions since Russia invaded Ukraine. The talks, which excluded Europe and Ukraine, ended with Moscow and Washington agreeing to appoint teams to negotiate an end to the Ukraine war.”Donald Trump continues to be the dominant force for financial markets,” said Kathleen Brooks, research director at XTB. “Trump has ripped up the playbook when it comes to dealing with Russia, and the markets are keeping the faith with the US President for now,” she added.While the Dow finished flat, the S&P 500 nudged to a fresh record following a late-afternoon rally.”It was a mostly lackluster day until the final 10 minutes of trading,” said Briefing.com. “There was a positive bias under the index surface even as major indices traded lower, which acted as an upside catalyst and invited more buying in the final moments of the day.”Europe’s main markets were flat or edged higher, with Frankfurt’s DAX index striking another all-time high as elections approach, with investors hoping a ruling coalition better able to act will emerge.”There seems to be a widespread belief that a global recession will not occur and that the trade war is merely a ‘residual risk’,” CMC Markets analyst Konstantin Oldenburger said in a note to clients, pointing out that cash reserves of funds and asset managers have fallen to their lowest levels since 2010.Defense stocks mostly added to gains after having soared the previous day as European leaders held an informal summit to discuss Ukraine and signaled more financial and military support ahead. Danish Prime Minister Mette Frederiksen said her government would announce plans later Wednesday for a “massive” rearming of Denmark’s military due to the growing threat posed by Russia.Intel surged 16.1 percent following a Wall Street Journal report that rivals Broadcom and Taiwan Semiconductor Manufacturing Co. were considering bids to purchase key assets from the chip company. Nike was another big winner, gaining 6.2  percent as it announced a joint venture with Kim Kardashian under the NikeSKIMS brand.But US homebuilder stocks retreated following a survey that showed industry sentiment fell sharply in February due to worry about tariffs.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.- Key figures around 2130 GMT -New York – Dow: FLAT at 44,556.34 (close)New York – S&P 500: UP 0.2 percent at 6,129.58 (close)New York – Nasdaq Composite: UP 0.1 percent at 20,041.26 (close)London – FTSE 100: FLAT at 8,766.73 (close)Paris – CAC 40: UP 0.2 percent at 8,206.56 (close)Frankfurt – DAX: UP 0.2 percent at 22,844.50 (close)Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)Euro/dollar: DOWN at $1.0445 from $1.0484 on MondayPound/dollar: DOWN at $1.2608 from $1.2623Dollar/yen: UP at 152.09 from 151.51 yenEuro/pound: DOWN at 82.85 pence from 83.04 penceWest Texas Intermediate: UP 1.6 percent at $71.85 per barrelBrent North Sea Crude: UP 0.8 percent at $75.84 per barrelburs-jmb/md

Global stock markets held largely steady on Tuesday as top US and Russian diplomats held their first since Russia’s invasion of Ukraine. The talks, which excluded Europe and Ukraine, ended with Moscow and Washington agreeing to appoint teams to negotiate an end to the Ukraine war.”Donald Trump continues to be the dominant force for financial markets,” said Kathleen Brooks, research director at XTB.  “Trump has ripped up the playbook when it comes to dealing with Russia, and the markets are keeping the faith with the US President for now,” she added.In Europe, the main markets were mostly higher, with Frankfurt’s DAX index striking another all-time high as elections approach, with investors hoping a ruling coalition better able to act will emerge.Defence stocks mostly added to gains after having soared the previous day as European leaders held an informal summit to discuss Ukraine and signalled more financial and military support ahead. Danish Prime Minister Mette Frederiksen said her government would announce plans later Wednesday for a “massive” rearming of Denmark’s military due to the growing threat posed by Russia.Wall Street opened mostly higher as traders came back from a three-day holiday weekend, with the S&P 500 falling just short of hitting a record high.”Fittingly, gains in the mega-cap stocks, and AI enthusiasm following xAI’s release of its Grok 3 model, are among the primary factors for the upside bias,” said Briefing.com analyst Patrick O’Hare.Shares in struggling chipmaker Intel rose more than six percent at the start of trading following reports that rivals Broadcom and TSMC could buy parts of its business.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on some areas of the private sector.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.Monday’s gathering provided some much-needed relief to investors and boosted hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Chinese tech and e-commerce giant Alibaba rose more than two percent. Games developer XD Inc surged more than 10 percent, while Tencent added two percent.Shanghai’s stock market fared less well, while Tokyo gained.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.- Key figures around 1430 GMT -New York – Dow: DOWN less than 0.1 percent at 44,513.12 pointsNew York – S&P 500: UP 0.1 percent at 6,122.62New York – Nasdaq Composite: UP 0.3 percent at 20,080.99London – FTSE 100: FLAT at 8,764.72 Paris – CAC 40: UP 0.2 percent at 8,202.31Frankfurt – DAX: UP 0.1 percent at 22,828.41Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)Euro/dollar: DOWN at $1.0455 from $1.0483 on MondayPound/dollar: DOWN at $1.2608 from $1.2613Dollar/yen: UP at 151.76 from 151.41 yenEuro/pound: DOWN at 82.93 pence from 83.11 penceWest Texas Intermediate: UP 1.1 percent at $71.53 per barrelBrent North Sea Crude: UP 0.4 percent at $75.50 per barrelburs-rl/yad

Singapore will pour an additional $3.7 billion into upgrades at Changi airport, including a long-awaited fifth terminal, as the nation seeks to maintain its position as a top global aviation hub, its leader said Tuesday.Prime Minister Lawrence Wong announced the fresh infusion while presenting the city-state’s 2025 budget, which also included a wide range of cash incentives for locals ahead of elections later this year.Serving in a dual role as finance minister, Wong said part of the funds will be used to construct a fifth terminal at the airport, which saw around 67.7 million passengers pass through its gates last year.”When completed, Terminal 5 will expand our airport’s capacity by more than 50 percent and will ensure that Singapore remains a critical gateway for global travel and trade,” he said.The fresh top-up of Sg$5 billion (US$3.7 billion) to the Changi Airport Development Fund will “ensure sufficient resources to develop our air hub”, added Wong.Terminal 5 was first proposed in 2013 and construction is expected to go ahead later this year, following pandemic delays, officials said.The new terminal is expected to be operational in the mid-2030s.Singapore’s Changi has been consistently ranked as among the best airports in the world, but it has faced challenges from other hubs like Doha and Seoul.It is one of the largest transit hubs in Asia with more than 100 airlines operating from the airport. The government put Sg$3 billion in its airport development fund in 2015 when it was set up, adding Sg$1 billion in 2016, and Sg$2 billion in 2023, according to local media.- Budget giveaways -Also in Tuesday’s budget speech, his first as prime minister since taking over in May, Wong unveiled a raft of government handouts, including to help citizens cope with high living costs and upgrade jobs skills.The giveaways include Sg$800 worth of vouchers for every Singaporean household to be distributed from May — part of regular state disbursements.The budget items came ahead of general elections, which must be called before November.The People’s Action Party (PAP), which has ruled Singapore since 1959, is expected to face a tough challenge from a resurgent opposition, building on gains during the last polls in 2020.The PAP won 83 of the 93 seats at stake in that election, but the opposition Workers’ Party surprisingly captured an unprecedented 10 seats.Wong also said the government will put in an additional Sg$5 billion to a coastal and flood protection fund and another Sg$5 billion to a pool supporting clean energy.Singapore was also studying the potential of nuclear energy and would “take further steps to systematically build up our capabilities in this area”, the prime minister added.

Global stock markets traded mixed Tuesday as investors awaited the outcome of the first meeting between top US and Russian diplomats since Russia’s invasion of Ukraine. The talks, which excluded Europe and Ukraine, have led to uncertainty in markets as traders mull the prospect of higher European defence spending.  “European markets are drifting lower in early trade, as markets start to show a degree of hesitancy for the outcome of today’s peace talks between the US and Russia,” said Joshua Mahony, chief market analyst at Scope Markets. Defence stocks soared the previous day as European leaders held an informal summit to discuss Ukraine and signalled more financial and military support ahead. “There is still a very good chance that defense budgets will rise in Europe in the coming years, however, for the European defense trade to take another leg higher, we may need to see significant progress in today’s talks,” said Kathleen Brooks, research director at XTB.  London’s FTSE 100 rose following data that showed UK wage growth accelerated and the employment rate was steady.Paris was flat and Frankfurt dipped from Monday’s record gains.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on some areas of the private sector.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.Monday’s gathering provided some much-needed relief to investors and boosted hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Chinese tech and e-commerce giant Alibaba rose more than two percent. Games developer XD Inc surged more than 10 percent, while Tencent added two percent.Shanghai’s stock market fared less well, while Tokyo gained.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.Wall Street was closed for a holiday on Monday.- Key figures around 1100 GMT -London – FTSE 100: UP 0.1 percent at 8,780.68 pointsParis – CAC 40: FLAT at 8,188.24Frankfurt – DAX: DOWN 0.1 percent at 22,770.80Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)New York – Dow: Closed for a holidayEuro/dollar: DOWN at $1.0462 from $1.0483 on MondayPound/dollar: DOWN at $1.2601 from $1.2613Dollar/yen: UP at 151.80 from 151.41 yenEuro/pound: DOWN at 83.02 pence from 83.11 penceWest Texas Intermediate: UP 1.6 percent at $71.85 per barrelBrent North Sea Crude: UP 0.8 percent at $75.82 per barrel

Asian markets were mixed Tuesday with Hong Kong resuming its tech-led rally after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.The Hang Seng Index’s gains extended an impressive start to the year, with the emergence of a new chatbot from Chinese startup DeepSeek stoking optimism in the country’s AI drive.The tech revival has also helped offset worries about the impact of US President Donald Trump’s hardball foreign policies and decision to impose sweeping tariffs on trade partners.Among the luminaries meeting Xi in Beijing were Alibaba co-founder Jack Ma, Huawei founder Ren Zhengfei and Wang Chuanfu, CEO of electric vehicle giant BYD.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on areas of the private sector undergoing “disorderly” expansion.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.State news agency Xinhua reported that Xi had “stressed that the difficulties and challenges currently faced by the development of the private economy have generally appeared during the process of reform and development, and industrial transformation”.”They are partial rather than general, temporary rather than long-term, and surmountable rather than unsolvable,” Xi said, according to Xinhua.He added that Beijing was focused on removing obstacles to commerce, promoting fair competition, cracking down on arbitrary fines and protecting business interests.Monday’s gathering provided some much-needed relief to investors and fanned hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Ma’s inclusion hinted at the billionaire magnate’s potential public rehabilitation after years out of the spotlight following a tangle with regulators.- Alibaba’s surge -Asian markets started the day fast out of the blocks, though they struggled to maintain momentum and some turned negative.Hong Kong pared an early flurry as traders took cash off the table after a strong run-up so far this year.Still, Alibaba rose more than two percent, and has now piled on more than 50 percent since the turn of the year. Games developer XD Inc surged more than 10 percent, while Tencent added two percent and NetEase nearly three percent.”As this tech-led rally continues, investors are left wondering: Can the upward momentum of Chinese tech stocks sustain as the flood of positive news subsides?” asked Pepperstone research analyst Dilin Wu.”Has the market reached an inflection point for a full-scale ‘Buy China’ strategy? And what risks lie ahead?”Tokyo, Singapore, Seoul, Taipei, Manila and Jakarta also rose with Frankfurt extending Monday’s record gains. London and Paris were also higher.However, there were losses in Shanghai, Wellington, Bangkok and Mumbai.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.Wall Street was closed for a holiday.Meanwhile, Federal Reserve governor Christopher Waller suggested the US central bank could cut interest rates this year if inflation performs as it has in the past, pointing to last year’s spike in the winter followed by a quick easing.”If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate,” he said in prepared remarks due to be delivered on Tuesday in Sydney.”But until that is clear, I favour holding the policy rate steady.”With prices showing signs of ticking back up in recent months, traders have scaled back their bets on how many reductions officials would make this year.”The data are not supporting a reduction in the policy rate at this time,” Waller said. “But if 2025 plays out like 2024, rate cuts would be appropriate at some point this year.”His remarks come amid fears that Trump’s plans to impose tariffs and slash taxes, regulations and immigration will reignite inflation.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)London – FTSE 100: UP 0.2 percent at 8,783.28 Euro/dollar: DOWN at $1.0465 from $1.0483 on MondayPound/dollar: UP at $1.2618 from $1.2613Dollar/yen: UP at 152.08 from 151.41 yenEuro/pound: DOWN at 82.94 pence from 83.11 penceWest Texas Intermediate: UP 0.8 percent at $71.33 per barrelBrent North Sea Crude: UP 0.1 percent at $75.31 per barrelNew York – Dow: Closed for a holiday

Electric vehicle maker Tesla has begun hiring in India, with the company of tycoon Elon Musk issuing advertisements days after US President Donald Trump’s right-hand man met with India’s premier.Tesla has more than a dozen job listings on its website, for both the capital New Delhi and economic hub Mumbai, including for a store manager and service technicians.The job listings were posted on the employment website LinkedIn on Monday.Tesla’s India push comes after Musk met one-on-one with Prime Minister Narenda Modi in Washington, raising questions over whether the world’s richest man was meeting the Indian leader in an official or business capacity.Musk has been seeking business opportunities in the world’s most populous nation, with media reports last year suggesting it was scouting for factory and showroom locations.Musk has also sought to open his satellite internet service Starlink in India, with communications minister Jyotiraditya Scindia in November saying the company would be allowed to operate if it complies with “security” regulations.The potential launch of Starlink — with its network of low Earth orbit satellites capable of providing internet to remote and disconnected locations — in the world’s most populous country has been accompanied by fierce policy debates and alleged national security concerns.Musk was due to visit India in 2024, following suggestions that he would announce major investment plans, but later cancelled the trip due to what he said were “very heavy Tesla obligations”.While India’s electric car market is small, it still represents a growth opportunity for Tesla which is battling increased Chinese competition and its first slump in annual EV sales.India has long had steep import taxes for electric vehicles — Musk once complained they were among the “highest in the world” — which had prevented Tesla from making inroads in the absence of local manufacturing.But India last year cut import taxes on electric vehicles for global automakers that committed to invest $500 million and start local production within three years.New Delhi had had offered quick tariff concessions ahead of Modi’s Washington visit, including slashing duties on high-end motorcycles — a boost to Harley-Davidson, the iconic US manufacturer whose struggles in India have irked Trump.India has also already accepted three US military flights carrying more than 300 migrants as part of Trump’s immigration crackdown.

Hong Kong resumed its tech-led rally on a healthy day for Asian markets Tuesday as a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a years-long crackdown on the private sector is coming to an end.The Hang Seng Index’s gains extended an impressive start to the year, with the emergence of a new chatbot from Chinese startup DeepSeek stoking optimism in the country’s AI drive.The tech revival has also helped offset worries about the impact of US President Donald Trump’s hardball foreign policies and decision to impose sweeping tariffs on trade partners.Among the luminaries meeting Xi in Beijing were Alibaba co-founder Jack Ma, Huawei founder Ren Zhengfei and Wang Chuanfu, CEO of electric-vehicle giant BYD.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on areas of the private sector undergoing “disorderly” expansion.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.State news agency Xinhua reported that Xi had “stressed that the difficulties and challenges currently faced by the development of the private economy have generally appeared during the process of reform and development, and industrial transformation”.”They are partial rather than general, temporary rather than long-term, and surmountable rather than unsolvable,” Xi said, according to Xinhua. He added that Beijing was focused on removing obstacles to commerce, promoting fair competition, cracking down on arbitrary fines and protecting business interests.Monday’s gathering provided some much-needed relief to investors and fanned hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Ma’s inclusion hinted at the billionaire magnate’s potential public rehabilitation after years out of the spotlight following a tangle with regulators.Shares in Alibaba rose more than four percent Tuesday, and have now piled on more than 50 percent since the turn of the year. There were also healthy gains in other tech firms including Tencent, XD Inc and Netease.Shanghai, Tokyo, Singapore, Seoul, Taipei, Manila and Jakarta also rose.The advances came after a strong day in Europe, where Frankfurt hit a new record. Wall Street was closed for a public holiday.Meanwhile, Federal Reserve governor Christopher Waller suggested the bank could cut interest rates this year if inflation performs as it has in the past, pointing to last year’s spike in the winter followed by a quick easing.”If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate,” he said in prepared remarks due to be delivered on Tuesday in Sydney.”But until that is clear, I favour holding the policy rate steady.”With prices showing signs of ticking back up in recent months, traders have scaled back their bets on how many reductions officials would make this year.”The data are not supporting a reduction in the policy rate at this time,” Waller said. “But if 2025 plays out like 2024, rate cuts would be appropriate at some point this year.”His remarks come amid fears that Trump’s plans to impose tariffs and slash taxes, regulations and immigration will reignite inflation.- Key figures around 0240 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 39,296.11 (break)Hong Kong – Hang Seng Index: UP 1.7 percent at 23,001.87Shanghai – Composite: UP 0.2 percent at 3,359.80Euro/dollar: DOWN at $1.0465 from $1.0483 on MondayPound/dollar: DOWN at $1.2601 from $1.2613Dollar/yen: UP at 151.74 from 151.41 yenEuro/pound: DOWN at 83.06 pence from 83.11 penceWest Texas Intermediate: UP 0.6 percent at $71.19 per barrelBrent North Sea Crude: DOWN 0.1 percent at $75.13 per barrelNew York – Dow: Closed for a holidayLondon – FTSE 100: UP 0.4 percent at 8,768.01 (close)

European markets rose on Monday as defence stocks surged ahead of a meeting between European leaders to address Washington’s sudden policy shift on the war in Ukraine.US President Donald Trump sidelined Kyiv and its European backers last week by calling his Russian counterpart Vladimir Putin to discuss beginning negotiations to end the conflict.With fears that Europe could be sidelined in negotiations to end the three-year war, European leaders were gathering in Paris amid talk of greater defence spending. London, Paris and Frankfurt stock markets all rose on Monday, with defence stocks driving most of the action.Britain’s BAE Systems was up nearly nine percent, topping London’s FTSE 100 index, while French defence group Thales rose 7.5 percent in Paris. Shares in German arms maker Rheinmetall jumped 14.3 percent on Frankfurt’s DAX index, which set a new record high.CMC Markets analyst Konstantin Oldenburger said the company’s stock faced a short squeeze, where investors who bet on it falling had to buy it to cover their losses, driving it higher still.”With today’s double-digit gain, the defence contractor has increased in value by nearly a third since last Wednesday,” he noted.Analysts were cautious, however, over the prospect of higher European defence spending and its economic consequences.”There is a fear that the breakdown in military ties between the US and Europe will necessitate a huge ramp-up in defence spending, thus pushing debt and borrowing costs higher once again,” said Joshua Mahony, chief market analyst at Scope markets. It adds to the uncertainty on trading floors since Trump returned to the Oval Office last month announcing a series of tariffs against key trading partners.While some of the measures have been delayed for negotiations, observers warn the imposition of huge levies on exports to the world’s biggest economy could deal a hefty blow to financial markets.Wall Street was closed for a public holiday.Asian equities ended Monday on a mixed note after a tepid lead from Wall Street.Hong Kong was barely moved after last week’s rally fuelled by a surge in tech firms following the release of Chinese startup DeepSeek’s chatbot.”DeepSeek proves that China’s private sector remains innovative and competitive, and it also shows the possibility for China’s continued AI advancement,” said analysts at Bank of America Global Research.Still, the mood in Hong Kong was improved by news that Chinese President Xi Jinping was meeting Alibaba co-founder Jack Ma and other top entrepreneurs.The gathering on Monday fuelled hopes of fresh support for the private sector, which has been hit by a series of crackdowns by the Chinese government in the past few years, hammering share prices.Ma’s inclusion hints at the billionaire magnate’s potential public rehabilitation after years out of the spotlight following a tangle with regulators.Other participants included Ren Zhengfei — the founder of tech titan Huawei — and Wang Chuanfu, who established electric vehicle giant BYD.Tokyo edged up as data showed the Japanese economy slowed sharply last year but enjoyed a forecast-topping final quarter thanks to strong exports.- Key figures around 1630 GMT -London – FTSE 100: UP 0.4 percent at 8,768.01 points (close)Paris – CAC 40: UP 0.1 percent at 8,189.13 (close)Frankfurt – DAX: UP 1.3 percent at 22,798.09 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,174.25 (close)Hong Kong – Hang Seng Index: FLAT at 22,616.23 (close)Shanghai – Composite: UP 0.3 percent at 3,355.83 (close)New York – Dow: Closed Monday for a public holidayEuro/dollar: DOWN at $1.0483 from $1.0495 on FridayPound/dollar: UP at $1.2613 from $1.2587Dollar/yen: DOWN at 151.41 from 152.25 yenEuro/pound: DOWN at 83.11 pence from 83.36 penceWest Texas Intermediate: UP 0.4 percent at $70.98 per barrelBrent North Sea Crude: UP 0.3 percent at $74.95 per barrelburs-rl/gil