Afp Business Asia

Asian equities mostly rose Thursday, cheered by another tech-fuelled run-up on Wall Street after Donald Trump’s huge AI investment announcement, as traders assessed the outlook for the next four years under the new president.Shanghai led the winners, eating into year-to-date losses after China unveiled a fresh batch of measures aimed at boosting the country’s stock markets as part of Beijing’s moves to provide support to the stuttering economy.Global investors have largely welcomed the first few days of Trump 2.0 as he held off immediately returning to the hardball trade policies of his first term, having pledged to impose stiff tariffs on key partners within hours of returning to the Oval Office.However, warnings that China, the European Union, Canada and Mexico could be hit as soon as February 1 have given cause for concern.Tech titans including Nvidia, Microsoft and Arm helped lead a surge in New York, pushing the S&P 500 to within a whisker of a record, after Trump announced a new $500-billion venture to build infrastructure for artificial intelligence in the United States.Tokyo-listed SoftBank was named in the venture along with cloud giant Oracle and ChatGPT-maker OpenAI and soared more than 10 percent on the news Wednesday. And it extended the rally Thursday, piling more than five percent even after key Trump ally and world’s richest man Elon Musk cast doubt on the scheme and said the main investors “don’t actually have the money”.The advance in SoftBank helped Tokyo build on this week’s gains, while Singapore, Wellington and Jakarta also rose.Shanghai added more than one percent and Hong Kong advanced after authorities unveiled measures to steady the market and unblock bottlenecks, including allowing pension funds to invest in listed companies and push firms to boost share purchases.However, there were losses in Sydney and Manila.Seoul was the biggest loser after South Korea’s central bank said the economy grew in the fourth quarter at its slowest pace of 2024 as the country was hit by the fallout from impeached President Yoon Suk Yeol’s brief declaration of martial law.It also expanded less than expected through the entire year as the political chaos hit consumer confidence.The dollar edged up against the yen ahead of the Bank of Japan’s Friday policy decision, with observers widely expecting it to hike interest rates for the third time since March.”Economic data continues to support the BoJ’s case for a rate hike,” said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.”Wage growth remains a crucial factor. While governor (Kazuo) Ueda previously indicated the need for ‘one more notch of information’ before hiking, deputy governor (Ryozo) Himino recently noted strong wage momentum in BoJ branch managers’ assessments.”This may encourage action before actual Shunto wage data becomes available in March. The yen’s renewed weakness adds pressure to act.”- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 39,830.11 (break)Hong Kong – Hang Seng Index: UP 0.5 percent at 19,873.70Shanghai – Composite: UP 1.4 percent at 3,258.57Euro/dollar: DOWN at $1.0405 from $1.0425 on WednesdayPound/dollar: DOWN at $1.2307 from $1.2313Dollar/yen: UP at 156.51 yen from 156.45 yenEuro/pound: UP at 84.54 pence from 84.48 penceWest Texas Intermediate: DOWN 0.4 percent at $75.17 per barrelBrent North Sea Crude: DOWN 0.3 percent at $78.73 per barrelNew York – Dow: UP 0.3 percent at 44,156.73 (close)London – FTSE 100: FLAT at 8,545.13 (close)

Bangladeshi students braved bullets to overthrow an autocratic government, but six months after the revolution, many say finding a job is proving a harder task than manning the barricades.Dhaka University student Mohammad Rizwan Chowdhury’s dreams of ample opportunities for youth have been badly dented, saying he had seen little action from the caretaker government of Nobel Peace Prize winner Muhammad Yunus.”I can’t see any fruitful initiatives taken by the government so far,” Chowdhury grumbled, a25-year-old student who took part in the protests that drove autocratic ex-leader Sheikh Hasina into exile on August 5.Unemployment was a key driver of protests last year. Since the revolution, it has only grown worse.At the end of September 2024, the number of people seeking employment in the country of 170 million hit 2.66 million, a six-percent increase from 2.49 million the year before, according to the Bangladesh Bureau of Statistics (BBS).The International Monetary Fund warned in September that economic activity had “slowed markedly, while inflation remains at double-digit levels”, with tax revenues down while spending pressures had increased.For many, the euphoria of Hasina’s ouster is fading.Chowdhury said that while Yunus handed cabinet posts to student leaders, he felt demands were being ignored.”Although our representatives are part of the administration, I’m not sure whether our voices are being heard,” the political science graduate said.- ‘Whatever jobs they can’ -Literature graduate Shukkur Ali, 31, scrapes by on odd jobs to support his elderly and sick parents.”I do anything and everything just to cover the bare minimum,” he told AFP, adding that newspaper job advertisements have dried up.”I used to apply only for white-collar jobs in educational institutions or banks — but failed,” he said. “Now, anything is good for me. I just want a job.”Independent analyst Zahid Hussain,71, former lead economist at the World Bank in Dhaka, said that around a third of the working labour force are “underemployed doing whatever jobs they can to pay the bills”.Bangladesh’s economy grew dramatically after its independence in 1971.That was largely due to its textile industry producing global brands in a multi-billion dollar business as the world’s second-largest garment exporter.But jobs outside the crowded clothing factories for university graduates are far fewer.Educated Bangladeshis make up 87 percent of those without work, according to BBS figures.The government says it is making every effort to address the issue.Shafiqul Alam, Yunus’ press secretary, said robust tax generation would allow the government to invest in the public sector and create a “huge” number of jobs.”Ensuring better revenue collection is a priority, as the previous government left behind a broken economy,” Alam said.- ‘Empty-handed’ -But Yunus, an 84-year-old microfinance pioneer, is also swept up in what he calls the “extremely tough” challenge of restoring democratic institutions ahead of elections slated for this year or early 2026.Those reforms include an overhaul of the constitution and the public administration to prevent a return to autocracy.”The interim government is preoccupied with managing the mess they inherited,” said Hussain, adding there were only “sporadic attempts” to support the youth, such as hiring students to assist traffic police.”The administration isn’t functioning at full speed,” he said. “I’d rate them 50 out of 100.”Challenges are daunting.”The public sector can recruit no more than 20,000 to 25,000 graduates, while around 700,000 graduates leave colleges each year,” said AKM Fahim Mashroor, chief of popular online job site Bdjobs.The private sector provides around 85 percent of jobs, but there is little optimism there either.”Both the public and private sectors have been slow in recruiting since August 5,” he added.And the unrest has spooked investors.Bangladesh’s central bank says foreign investment between July and November 2024 was $177 million — less than a third of the $614 million secured under Hasina’s iron-fisted rule during the same period the previous year.Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the government should roll out programmes to support young job-seekers including “loan schemes for youth to start businesses”.Some like Subir Roy, a 31-year-old finance graduate who was nominated to a government job only for it to be rescinded without reason, said it was already too late for him.”My father sold a small piece of land to send me to university… now I’m returning home empty-handed,” Roy said. “I’ll join my father in the paddy field.”

US and European stock markets mostly pushed higher Wednesday as investors tracked earnings and President Donald Trump’s policy plans as artificial intelligence shares rallied.However, Hong Kong and Shanghai’s indices fell after Trump warned China could be included in a list of countries to be hit with tariffs on February 1.The latest batch of corporate earnings helped boost sentiment on Wall Street, with the S&P 500 flirting with a record high. Netflix soared nearly 10 percent after it reported adding almost 19 million subscribers during the holiday season to finish last year with more than 300 million globally.Shares of AI-linked companies such as Arm, Microsoft and Nvidia also advanced following a White House announcement of some $500 billion in new artificial intelligence infrastructure, while Procter & Gamble and Seagate Technology were among the equities advancing after earnings reports.A retreat in US government bond yields after last week’s spike has also reassured equities investors.In Europe, the London and Frankfurt stock markets continued to hit record highs, helped by currency movements.London’s FTSE 100 index was supported by “a weak pound that allows investors to buy UK companies with international businesses at cheaper prices,” noted Swissquote Bank senior analyst Ipek Ozkardeskaya.The FTSE 100 ended the day a tad lower, however, while the DAX set a new record closing high.European stocks are rising on the coattails of “America’s changed economic policy, which has allowed European stocks to play catch up for now,” said Kathleen Brooks, research director at XTB.Oil prices slid further after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.Traders have been bracing for Trump 2.0 since his reelection in November, with an initial rally — fueled by hopes of market-boosting measures — giving way to worries he would resume his trade war with China and also target others.There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would first hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.Shares in software investment giant SoftBank soared more than 10 percent Wednesday — leading Tokyo-listed chipmakers higher — after Trump said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.Tokyo’s Nikkei 225 piled on more than one percent thanks to SoftBank’s advance fueled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.Shares in Oracle rose by 6.8 percent. OpenAI is a privately held company.Shares in ASML, the Dutch firm which makes the equipment to manufacture the most powerful chips used for AI projects, rose 2.3 percent in Amsterdam.- Key figures around 2200 GMT -New York – Dow: UP 0.3 percent at 44,156.73 (close)New York – S&P 500 UP 0.6 percent at 6,086.37 (close)New York – Nasdaq Composite: UP 1.3 percent at 20,009.34 (close)London – FTSE 100: DOWN less than 0.1 percent at 8,545.13 (close)Paris – CAC 40: UP 0.9 percent at 7,837.40 (close)Frankfurt – DAX: UP 1.0 percent at 21,254.27 (close)Tokyo – Nikkei 225: UP 1.6 percent at 39,646.25 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 19,77 (close)Shanghai – Composite: DOWN 0.9 percent at 3,213.62 (close)Euro/dollar: DOWN at $1.0425 from $1.0428 on TuesdayPound/dollar: DOWN at $1.2313 from $1.2350Dollar/yen: UP at 156.45 yen from 155.52 yenEuro/pound: UP at 84.48 pence from 84.43 penceBrent North Sea Crude: DOWN 0.3 percent at $79.00 per barrelWest Texas Intermediate: DOWN 0.4 percent at $75.42 per barrelburs-jmb/bfm

Procter & Gamble is seeing encouraging signs in China, but a full recovery is still a ways off, executives said Wednesday as the consumer products giant reported solid earnings.P&G, whose brands include Tide detergent and Charmin toilet paper, saw improvement in China in the just-finished quarter in sales of SK-II, a premium skin care product.Chief Executive Jon Moeller also pointed to an uptick in the number of Chinese travelers to South Korea and Japan, as an indication of “more confidence and a willingness to spend” among some in the population. But Moeller noted that SK-II is “very premium-priced product” and “the broad swath of society is still not confident and is still struggling,” he told analysts on a conference call.The comments came as P&G reported profits of $4.6 billion in its fiscal second quarter, up 34 percent on revenues of $21.9 billion, up two percent.P&G also confirmed its earnings forecast for fiscal 2025, a year in which it projects sales growth of two to four percent. Executives highlighted product launches including a whole-body deodorant spray and a new advanced power toothbrush as elements that would sustain sales growth.P&G experienced a three percent drop in organic sales in its Greater China division. Although still shrinking, Chief Financial Officer Andre Schulten described the performance as “a solid step forward” compared with the 15 percent decline in the prior quarter.While “underlining market conditions remain soft,” Schulten said “we are trending back toward growth in Greater China.”Sales of SK-II, which is manufactured in Japan, have been hampered in recent quarters in China due to anti-Japan sentiment in the country.But Moeller, citing fewer negative social media mentions in China, described the climate as improving, saying “the whole dynamic of Japanese brand sentiment, I think, is easing.”P&G shares rose 3.0 percent in late-morning trading.

US and European stock markets pushed higher Wednesday as investors tracked earnings and President Donald Trump’s policy plans that are starting to impact the global economy.However, Hong Kong and Shanghai indices fell Wednesday after Trump warned China could be included in a list of countries to be hit with tariffs on February 1.Meanwhile, the dollar “struggled to find a clear direction and traded in a narrow range as market participants sought clarity on Trump’s trade policies”, noted Joseph Dahrieh, analyst at traders Tickmill.The latest batch of corporate earnings helped boost sentiment on Wall Street, with the S&P 500 near a record high. Shares in Netflix soared more than 12 percent after it reported adding almost 19 million subscribers during the holiday season to finish out last year with more than 300 million globally.And while the inflationary impact of Trump’s tariff plans gave investors cold sweats in December, they are proving more sanguine this week.”Thus far, the stock market has not found reason to fear the tariff approach for a variety of reasons: it isn’t as onerous as expected at this stage; there hasn’t been a retaliatory tit-for-tat; and there is a belief it is more of a negotiating tactic than an official policy,” said Briefing.com analyst Patrick O’Hare.A retreat in US government bond yields after last week’s spike has also reassured equities investors.In Europe, the London and Frankfurt stock markets continued to hit record highs, helped by currency movements.London’s FTSE 100 index was supported by “a weak pound that allows investors to buy UK companies with international businesses at cheaper prices”, noted Swissquote Bank senior analyst Ipek Ozkardeskaya.Plans by the European Central Bank to keep cutting interest rates in the eurozone has weighed on the euro — although both the single currency and pound won back some support Wednesday.Oil prices slid further after having tumbled Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would first hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.There is also a concern that Trump’s plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Shares in software investment giant SoftBank soared more than 10 percent Wednesday — leading Tokyo-listed chipmakers higher — after Trump said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.Tokyo’s Nikkei 225 piled on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.Japanese chipmakers also rose, with Advantest up four percent, while Tokyo Electron and Lasertec gained more than one percent.- Key figures around 1430 GMT -New York – Dow: UP 0.3 percent at 44,152.85 pointsNew York – S&P 500: UP 0.5 percent at 6,078.67New York – Nasdaq Composite: UP 0.8 percent at 19,914.11London – FTSE 100: UP less than 0.1 percent at 8,555.40Paris – CAC 40: UP 0.9 percent at 7,836.87Frankfurt – DAX: UP 1.2 percent at 21,285.99Tokyo – Nikkei 225: UP 1.6 percent at 39,646.25 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 19,778.77 (close)Shanghai – Composite: DOWN 0.9 percent at 3,213.62 (close)Euro/dollar: DOWN at $1.0420 from $1.0426 on TuesdayPound/dollar: DOWN at $1.2332 from $1.2342Dollar/yen: UP at 156.04 yen from 155.50 yenEuro/pound: UP at 84.47 pence from 84.45 penceBrent North Sea Crude: DOWN 0.1 percent at $79.20 per barrelWest Texas Intermediate: UP 0.1 percent at $75.75 per barrelburs-rl/gv

European stock markets rallied and Chinese indices slid Wednesday in reaction to US President Donald Trump’s policy plans that are starting to impact the global economy.Wall Street jumped Tuesday in its first reaction following Trump’s inauguration.Hong Kong and Shanghai indices retreated Wednesday after the president warned China could be included in a list of countries to be hit with tariffs on February 1.The dollar “struggled to find a clear direction and traded in a narrow range as market participants sought clarity on Trump’s trade policies”, noted Joseph Dahrieh, analyst at traders Tickmill.In Europe, the London and Frankfurt stock markets continued to hit record highs, helped by currency movements.London’s FTSE 100 index was winning support from “a weak pound that allows investors to buy UK companies with international businesses at cheaper prices”, noted Swissquote Bank senior analyst Ipek Ozkardeskaya.Plans by the European Central Bank to keep cutting interest rates in the eurozone has weighed on the euro — although both the single currency and pound won back some support Wednesday.Oil prices recovered slightly having tumbled Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.Investors are poring over also the latest earnings season.Netflix added almost 19 million subscribers during the holiday season to finish out last year with more than 300 million subscribers, the US streaming giant announced after the Wall Street close Tuesday.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.There is also a concern that Trump’s plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Shares in software investment giant SoftBank soared more than 10 percent Wednesday — leading Tokyo-listed chipmakers higher — after Trump said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.Tokyo’s Nikkei 225 piled on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.Japanese chipmakers also rose, with Advantest up four percent, while Tokyo Electron and Lasertec gained more than one percent.- Key figures around 1050 GMT -London – FTSE 100: UP 0.3 percent at 8,575.89 pointsParis – CAC 40: UP 0.7 percent at 7,825.47Frankfurt – DAX: UP 1.1 percent at 21,276.64Tokyo – Nikkei 225: UP 1.6 percent at 39,646.25 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 19,778.77 (close)Shanghai – Composite: DOWN 0.9 percent at 3,213.62 (close)New York – Dow: UP 1.2 percent at 44,025.81 (close)Euro/dollar: UP at $1.0450 from $1.0426 on TuesdayPound/dollar: UP at $1.2367 from $1.2342Dollar/yen: UP at 155.78 yen from 155.50 yenEuro/pound: UP at 84.53 pence from 84.45 penceBrent North Sea Crude: UP 0.6 percent at $79.78 per barrelWest Texas Intermediate: UP 0.8 percent at $76.39 per barrel

Panama has complained to the United Nations over US President Donald Trump’s “worrying” threat to seize the Panama Canal, even as it launched an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway.In a letter to UN Secretary-General Antonio Guterres, the government in Panama City referred to an article of the UN Charter precluding any member from “the threat or use of force” against the territorial integrity or political independence of another.The missive, distributed to reporters Tuesday, urges Guterres to refer the matter to the UN Security Council, without asking for a meeting to be convened.Trump, in his inaugural address Monday, repeated his complaint that China was effectively “operating” the Panama Canal through its growing presence around the waterway, which the United States handed over at the end of 1999.”We didn’t give it to China, we gave it to Panama. And we’re taking it back,” Trump said.Panama’s President Jose Raul Mulino hit back that the canal was not a gift from the United States during a panel at the World Economic Forum in Davos, Switzerland.”We reject in its entirety everything that Mr Trump has said. First because it is false and second because the Panama Canal belongs to Panama and will continue to belong to Panama,” Mulino said Wednesday.The president has previously denied that any other nation was interfering in the canal, which he said was operated on a principle of neutrality.Asked Wednesday about the spat, Beijing denied it had ever “interfered” in the canal.”China has always respected Panama’s sovereignty over the canal and recognized the canal as a permanent neutral international waterway,” foreign ministry spokeswoman Mao Ning said.- US pressure -The Panamanian comptroller’s office that oversees public entities announced “an exhaustive audit” would be launched “aimed at ensuring the efficient and transparent use of public resources” at the Panama Ports Company.The company, part of Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, operates the ports of Balboa and Cristobal on either end of the canal.The comptroller’s office said the aim was to determine whether the company was complying with its concession agreements, including adequate reporting of income, payments and contributions to the state.Hutchison Ports PPC said in a statement that it has “maintained and will continue to maintain a transparent and collaborative relationship” with Panamanian authorities.”We remain steadfast in our commitment to comply with all laws and regulations, fully exercising our contractual responsibilities,” the firm said.”Our financial results, audited by an independent external auditor, have been shared annually with our partner, the Panamanian State, ensuring trust and clarity in our management.”Trump has been raising pressure for weeks over the canal, through which 40 percent of US container traffic travels. He has refused to rule out using military force to reclaim it.The Panama Ports Company’s concession agreement was extended by 25 years in 2021.The United States is the canal’s main user, followed by China.Since 2000, the waterway has contributed more than $30 billion to Panama’s state coffers, including nearly $2.5 billion in the last fiscal year.burs-raz/mtp

Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump’s first full day in office amid hopes he will take a more cautious approach on trade than initially feared.Software investment giant SoftBank soared more than 10 percent — leading Tokyo-listed chipmakers higher — after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.However, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 “based on the fact that they’re sending fentanyl to Mexico and Canada”.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Tokyo’s Nikkei 225 was the standout performer Wednesday, piling on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.The project “will invest $500 billion, at least, in AI infrastructure in the United States” Trump said at the White House.Japanese chipmakers also rose, with Advantest up four percent, while Tokyo Electron and Lasertec gained more than one percent.Taipei also enjoyed a big jump, with chip titan and market heavyweight TSMC soaring more than one percent, while Seoul was also helped by big gains in SK hynix and LS Electric.Sydney, Mumbai, Bangkok, Jakarta and Manila also rose but Singapore and Wellington slipped.Hong Kong fell 1.6 percent after a six-day run-up as concerns China will be hit with fresh tariffs dealt a blow to confidence. Shanghai also took a hefty hit.- ‘No winners’ -There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.When asked how soon these tariffs could be enacted, he said: “Probably February 1 is the date we’re looking at.”The comments came after Chinese Vice Premier Ding Xuexiang told the World Economic Forum in Davos, Switzerland, that “protectionism leads nowhere and there are no winners in a trade war”. Foreign ministry spokeswoman Mao Ning echoed those comments Wednesday, adding that Beijing was “firmly committed to safeguarding national interests”.China saw record exports in 2024, with observers saying they were likely boosted at the end of the year by companies ramping up stockpiles ahead of Trump’s second term.”China will still need to brace for potential tariffs and that’s going to slow down exports this year,” Frederic Neumann, chief Asia economist at HSBC in Hong Kong, told Bloomberg TV. The broader gains in Asia came after another rally on Wall Street and records for London and Frankfurt.London and Frankfurt extended their gains at the open, while Paris also rose.”Investors are now cautiously optimistic, focusing on the US’s robust economic indicators, strong earnings reports, and the prospect of lower borrowing costs and increased capital inflows,” said Stephen Innes at SPI Asset Management.”This blend of factors is expected to propel US stocks higher throughout 2025, barring any unexpected trade escalations.”In sum, the delay in imposing new tariffs has been widely regarded as a significant positive for markets.”The yen eased after edging higher against the dollar recently on expectations the Bank of Japan will hike interest rates at its meeting on Friday, while the euro and pound resumed their losses.Oil prices dipped again after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 1.6 percent at 39,646.25 (close)Hong Kong – Hang Seng Index: DOWN 1.6 percent at 19,778.77 (close)Shanghai – Composite: DOWN 0.9 percent at 3,213.62 (close)London – FTSE 100: UP 0.1 percent at 8,557.68Euro/dollar: DOWN at $1.0412 from $1.0426 on TuesdayPound/dollar: DOWN at $1.2320 from $1.2342Dollar/yen: UP at 156.00 yen from 155.50 yenEuro/pound: UP at 84.53 pence from 84.45 penceWest Texas Intermediate: DOWN 0.7 percent at $75.34 per barrelBrent North Sea Crude: DOWN 0.5 percent at $78.89 per barrelNew York – Dow: UP 1.2 percent at 44,025.81 (close)

Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump’s first full day in office amid hopes he will take a more cautious approach on trade than initially feared.Software investment giant SoftBank soared more than nine percent — leading Tokyo-listed chipmakers higher — after the American president said it was included in a new $500-billion venture to build infrastructure for artificial intelligence in the United States.However, Hong Kong and Shanghai fell after the tycoon warned China could be included in a list of countries to be hit with tariffs on February 1 “based on the fact that they’re sending fentanyl to Mexico and Canada”.Traders have been bracing for Trump 2.0 since his re-election in November, with an initial rally — fuelled by hopes for market-boosting measures — giving way to worries he would resume his trade war with Beijing and also target others.There is also a concern that his plans to slash taxes, immigration and regulations will reignite inflation and crimp the Federal Reserve’s ability to cut interest rates.Tokyo’s Nikkei 225 was the standout performer Wednesday, piling on more than one percent thanks to SoftBank’s advance fuelled by news that it will be part of the Stargate venture along with cloud giant Oracle and ChatGPT-maker OpenAI.The project “will invest $500 billion, at least, in AI infrastructure in the United States” Trump said at the White House.Japanese chipmakers also rose, with Advantest up more than four percent, while Tokyo Electron and Lasertec gained more than two percent.Taipei also enjoyed a big jump, with chip titan and market heavyweight TSMC up more than two percent, while Seoul was also helped by big gains in SK hynix and LS Electric.There were also gains in Sydney, Singapore, Wellington and Manila.But Hong Kong lost more than one percent after a six-day run-up as concerns China will be hit with fresh tariffs dealt a blow to confidence. Shanghai also took a hefty hit.- ‘No winners’ -There had been optimism that Beijing would avoid being targeted in an early flurry of duties by the White House after Trump said Monday he would hit Canada and Mexico. But he broadened his targets Tuesday to include China and the European Union.When asked how soon these tariffs could be enacted, he said: “Probably February 1 is the date we’re looking at.”The comments come after Chinese Vice Premier Ding Xuexiang told the World Economic Forum in Davos, Switzerland, that “protectionism leads nowhere and there are no winners in a trade war”. China saw record exports in 2024, with observers saying they were likely boosted at the end of the year by companies ramping up stockpiles ahead of Trump’s second term.”China will still need to brace for potential tariffs and that’s going to slow down exports this year,” Frederic Neumann, chief Asia economist at HSBC in Hong Kong, told Bloomberg TV. The broader gains in Asia came after another rally on Wall Street and records for London and Frankfurt.”Investors are now cautiously optimistic, focusing on the US’s robust economic indicators, strong earnings reports, and the prospect of lower borrowing costs and increased capital inflows,” said Stephen Innes at SPI Asset Management.”This blend of factors is expected to propel US stocks higher throughout 2025, barring any unexpected trade escalations.”In sum, the delay in imposing new tariffs has been widely regarded as a significant positive for markets.”The yen eased slightly after edging higher recently on expectations the Bank of Japan will hike interest rates at its meeting on Friday.Oil prices stabilised after tumbling Tuesday in reaction to Trump’s announcement of a “national energy emergency” to ramp up drilling in the United States.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 1.5 percent at 39,604.71 (break)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 19,821.12Shanghai – Composite: DOWN 0.9 percent at 3,214.00Euro/dollar: DOWN at $1.0412 from $1.0426 on TuesdayPound/dollar: DOWN at $1.2336 from $1.2342Dollar/yen: UP at 155.67 yen from 155.50 yenEuro/pound: DOWN at 84.41 pence from 84.45 penceWest Texas Intermediate: DOWN 0.1 percent at $75.73 per barrelBrent North Sea Crude: FLAT at $79.27 per barrelNew York – Dow: UP 1.2 percent at 44,025.81 (close)London – FTSE 100: UP 0.3 percent at 8,548.29 (close)

Global stock markets climbed on Tuesday as Donald Trump wasted no time in starting his second term as US president with a raft of announcements affecting the global economy.Wall Street stocks rose as markets greeted Trump’s early executive orders and comments that raised hopes new tariffs may not be as bad as feared.Oil prices slumped however on the prospect of more drilling in the United States.The rise on Wall Street following the Martin Luther King public holiday was part of a “Trump bump,” noted Briefing.com analyst Patrick O’Hare.On becoming president, Trump signed executive orders that indicated he could resume his hardball approach to global diplomacy and trade.He also spoke about the possibility of imposing a 25-percent tariff on Canadian and Mexican goods, which sent their currencies tumbling. Canadian and Mexican stock markets were marginally higher in Tuesday trading.”What was missing in yesterday’s executive orders, however, was any declaration of a decisive tariff action against China,” said O’Hare. “Instead, President Trump said existing trade agreements should be reviewed for any recommended revisions.”Analysts at Goldman Sachs also found Trump’s initial announcements to have been “more benign than expected.”- ‘Less hawkish’ China remarks -“Trump’s comments on China were notably less hawkish than during the presidential campaign or even his more recent comments since the election,” noted economists at Goldman Sachs.That helped Chinese markets push higher, with Hong Kong gaining nearly one percent.A top Chinese official said on Tuesday that no country would emerge victorious from a trade war.”Protectionism leads nowhere and there are no winners in a trade war,” Vice Premier Ding Xuexiang said in a speech at the World Economic Forum in Davos, Switzerland.Trump also gave social media app TikTok 75 days to find a buyer for its US business, after its Chinese owners ByteDance missed a Saturday deadline to sell its US subsidiary to non-Chinese buyers or be banned.European stocks also ended the day in the green, with both Frankfurt’s DAX and London’s FTSE 100 setting record closes.Wall Street received an initial Trump bump after his November re-election, with investors excited about the prospect of tax cuts and deregulation. But as November gave way to December, the bump dissipated on rising fears that Trump’s plans to slap tariffs on key US trading partners would spark inflation and dim the prospect of further Federal Reserve interest rate cuts.Oil prices slumped on Tuesday after the Trump administration declared a “national energy emergency” to significantly expand drilling in the world’s top oil and gas producer.”Mr Trump’s full-throated yell for US producers to ‘Drill, baby, drill!’ is not new,” said David Morrison, Senior Market Analyst at Trade Nation.”And it’s perfectly logical that prices should fall at the prospect of increased supply,” he added. – Key figures around 2115 GMT -New York – Dow: UP 1.2 percent at 44,025.81 points (close)New York – S&P 500: UP 0.9 percent at 6,049.24 (close)New York – Nasdaq Composite: UP 0.6 percent at 19,756.78 (close)London – FTSE 100: UP 0.3 percent at 8,548.29 (close)Paris – CAC 40: UP 0.5 percent at 7,770.95 (close)Frankfurt – DAX: UP 0.3 percent at 21,042.00 (close)Tokyo – Nikkei 225: UP 0.3 percent at 39,027.98 (close)Hong Kong – Hang Seng Index: UP 0.9 percent at 20,106.55 (close)Shanghai – Composite: DOWN 0.1 percent at 3,242.62 (close)Euro/dollar: UP at $1.0426 from $1.0404 on MondayPound/dollar: UP at $1.2342 from $1.2302Dollar/yen: DOWN at 155.50 yen from 155.67 yenEuro/pound: DOWN at 84.45 pence from 84.56 penceWest Texas Intermediate: DOWN 2.6 percent at $75.89 per barrelBrent North Sea Crude: DOWN 1.1 percent at $79.29 per barrelburs-rl/gil/da/bgs