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Wall Street stocks moved higher on Tuesday, looking to ring out the year with gains as did Europe’s main stock markets, as all eyes turn to 2025 and the impact that the policies of US President-elect Donald Trump will have on the global economy.After dropping more than one percent on Monday as investors booked profits and broke hopes of a so-called Santa Claus rally, the Dow added 0.3 percent as trading got underway.”Sliding Treasury yields are helping in the repair work along with some rebound action in the mega-cap stocks and perhaps some New Year’s Eve spirit that is keeping the trading mood light,” said Briefing.com analyst Patrick O’Hare.At the closing bell Wall Street stocks are set to end 2024 with double-digit gains as falling global inflation triggered interest-rate cuts from major central banks.That pushed global stock markets to record-high levels this year, as did a tech boom on rapid growth for the artificial intelligence sector.In Europe, London’s benchmark FTSE 100 index closed up 0.6 percent and the Paris CAC 40 rallied 0.9 percent in a shortened trading day.Over 2024, London gained nearly six percent.Paris fell 2.2 percent over the year, with the index hit late in the year by political turmoil in France, while China’s economic slowdown impacted the luxury sector.Frankfurt, whose last trading day was Monday, surged nearly 19 percent over the year despite Europe’s biggest economy Germany enduring a tough time.Traders closed out the year “amid uncertainty over monetary policy and the economic outlook under a Trump presidency”, Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted Tuesday.Asian stock markets ended the year mainly in the red following a poor lead from Wall Street.Concerns about the slow pace of US interest rate cuts by the Federal Reserve and uncertainty about Trump’s tariff plans have soured the mood during recent sessions.”In Asia, notably China, tariffs may appear to be a manageable obstacle if they were the only concern,” said Stephen Innes at SPI Asset Management.”However, China’s economic difficulties go well beyond simple trade conflicts. The nation is also contending with serious domestic consumption challenges and self-induced setbacks in its technology sector,” Innes added.China’s Purchasing Managers’ Index (PMI) for manufacturing was 50.1 in December, signalling a third consecutive month of expansion, official data showed on Tuesday.President Xi Jinping said China would put in place “more proactive” macroeconomic policies next year, according to state media, with economists warning that more direct fiscal stimulus aimed at shoring up domestic consumption was needed.The yuan on Tuesday reached the lowest level versus the dollar since October 2023.Tokyo’s Nikkei 225 index, which closed out the year Monday, gained almost 20 percent in 2024, finally surpassing the high seen before Japan’s asset bubble burst in the 1990s.- Key figures around 1430 GMT -New York – Dow: UP 0.3 percent at 42,691.09 pointsNew York – S&P 500: UP 0.3 percent at 5,922.77New York – Nasdaq Composite: UP 0.4 percent at 19,557.01London – FTSE 100: UP 0.6 percent at 8,173.02 (close)Paris – CAC 40: UP 0.9 percent at 7,380.74 (close)Frankfurt – DAX: closedTokyo – Nikkei 225: closedHong Kong – Hang Seng Index: UP 0.1 percent at 20,059.95 (close)Shanghai – Composite: DOWN 1.6 percent at 3,351.76 (close)Euro/dollar: DOWN at $1.0382 from $1.0401 on MondayPound/dollar: DOWN at $1.2527 from $1.2548Dollar/yen: UP at 156.97 yen from 156.41 yenEuro/pound: DOWN at 82.87 pence from 82.93 penceWest Texas Intermediate: UP 0.6 percent at $71.40 per barrelBrent North Sea Crude: UP 0.5 percent at $74.32 per barrelburs-rl/jhb

President Xi Jinping said China will put in place “more proactive” macroeconomic policies next year, state media reported, as he addressed a top political advisory body on Tuesday.The country has struggled this year to climb out of a slump fuelled by a property market crisis, weak consumption and soaring government debt.Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on home buying and easing the debt burden on local governments.But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China’s economy.”We must… further comprehensively deepen reform, expand high-level opening up, better coordinate development and security, (and) implement more proactive and effective macroeconomic policies,” state broadcaster CCTV quoted Xi as telling the National Committee of the Chinese People’s Political Consultative Conference at a New Year’s tea party. Later, in a televised speech addressed to the nation, Xi admitted there were still roadblocks ahead.”The current economic operation faces some new situations, challenges from the uncertainty of the external environment, and pressure of transformation from old drivers of growth into new ones, but these can be overcome through hard work,” he said. Beijing is aiming for growth of around five percent this year, a goal officials have expressed confidence in achieving but which many economists believe it will narrowly miss.”The new quality productivity develops steadily, and annual GDP is expected to grow by about five percent,” Xi reiterated on Tuesday to the National Committee. The International Monetary Fund expects China’s economy to grow by 4.8 percent this year and 4.5 percent next year.- ‘Near-term boost’ -Xi’s comments came as Chinese authorities released optimistic factory activity figures, a sign that recent stimulus measures may be starting to take effect.China’s Purchasing Managers’ Index (PMI) — a key measure of industrial output — was 50.1 in December, marking a third consecutive month of expansion, the National Bureau of Statistics said on Tuesday.The figure was lower than Bloomberg analysts’ prediction of 50.2, but still above 50 which indicates an expansion in manufacturing activity.A reading below that shows a contraction.The key indicator slid for six months in the middle of the year before returning to expansion territory in October.The non-manufacturing PMI, which measures activity in the service sector, came in at 52.2 in December, up from 50.0 in November.”The official PMIs suggest that the economy gained momentum in December, driven by faster growth in the services and construction sectors,” Gabriel Ng of Capital Economics wrote in a note to clients Tuesday.”Increased policy support towards the end of the year has clearly provided a near-term boost to growth,” Ng wrote.Ng noted that export orders in particular rose to a four-month high in December, “probably helped by US importers ramping up orders in advance of potential (Donald) Trump tariffs” when the president-elect takes office in January.

Asian stocks ended the year mainly in the red on Tuesday after worries about 2025 and profit-taking turned Wall Street’s usual holiday period “Santa Claus rally” into a mini-rout.The three main US indices all slumped around one percent on Monday, adding to Friday’s losses, with Tesla down 3.3 percent and Facebook owner Meta off 1.4 percent. Volumes were thin but brokers said investors were locking in gains after a bumper 2024, particularly for the “Magnificent Seven” troop of US tech giants.Concerns about the slow pace of US interest rate cuts by the Federal Reserve and uncertainty about incoming president Donald Trump’s tariff plans were also souring the mood.”In Asia, notably China, tariffs may appear to be a manageable obstacle if they were the only concern,” said Stephen Innes at SPI Asset Management.”However, China’s economic difficulties go well beyond simple trade conflicts. The nation is also contending with serious domestic consumption challenges and self-induced setbacks in its technology sector,” Innes said.China’s Purchasing Managers’ Index (PMI) for manufacturing was 50.1 in December, signalling a third consecutive month of expansion, official data showed on Tuesday.President Xi Jinping said China would put in place “more proactive” macroeconomic policies next year, according to state media, with economists warning that more direct fiscal stimulus aimed at shoring up domestic consumption was needed.Shanghai’s Composite Index closed down 1.6 percent on the last day of the year at 3,351.76. Stocks in Sydney, Taipei and Wellington were all down.Tokyo was spared the year-end ennui after the Nikkei 225 shut up shop on Monday with its best year-end close since Japan’s asset bubble burst in the 1990s.Hong Kong was a rare bright spot among other Asian indices on Tuesday, but only just, closing up 0.1 percent at 20,059.95. Seoul also closed on Monday, before another day of tragedy and turmoil in South Korea.Rescuers handed over the first bodies from the crash of a Jeju Air Boeing 737-800 to grieving families on Tuesday, South Korea’s deadliest air disaster on its own soil in which 179 people were killed.Boeing shares fell more than five percent on Wall Street on Monday before recovering. On the political front, a South Korean court issued an arrest warrant for Yoon Suk Yeol, the impeached and suspended president who briefly declared martial law on December 3.- Key figures around 0800 GMT -Tokyo – Nikkei 225: closedHong Kong – Hang Seng Index: UP 0.1 percent at 20,059.95Shanghai – Composite: DOWN 1.6 percent at 3,351.76 Euro/dollar: UP at $1.0413 from $1.0401 on MondayPound/dollar: DOWN at $1.2554 from $1.2548Dollar/yen: UP at 156.16 yen from 156.41 yenEuro/pound: DOWN at 82.95 pence from 82.93 penceWest Texas Intermediate: UP 0.7 percent at $71.49 per barrelBrent North Sea Crude: UP 0.7 percent at $74.49 per barrelburs-pbt/lb

Animal ears and pom-poms on fuzzy hats adorn tourists’ heads on the streets of the frigid northeastern Chinese city of Harbin, which is enjoying a surge in visitors driven by social media.Photos and videos taken around the city’s landmarks flood platforms such as TikTok counterpart Douyin and Instagram-esque Xiaohongshu — many featuring tourists from the warmer south.They’re affectionately known as “southern little potatoes”, a reference to their alleged smaller stature and cutesy winter gear that contrast with the area’s stereotypically coarse character.A search for “southern little potatoes visit the north” racked up more than 428,000 notes on Xiaohongshu.That’s where Chen Xiting, who works in e-commerce in the southern province of Guangdong, said she was inspired to visit.”It’s the quickest way young people get trip recommendations,” said Chen.She said she had noticed a sizeable number of fellow southerners.”I heard quite a bit of Cantonese, which we’re very familiar with, today at tourist sites and on the street,” said the 29-year-old, wearing a hat with dog ears and with only her face exposed to the air.Liu Rong, a student from Sichuan, said the city’s push for more southern tourists was clear from the surge in videos about Harbin he often watched with his wife.”These years, especially this year, Harbin’s cultural tourism has placed a lot of importance on paying attention to us southerners,” Liu said.- ‘Little potatoes’ go north -Harbin is the capital of Heilongjiang, one of three provinces that make up the “Dongbei” (northeast) region, where temperatures can reach -30 degrees Celsius (-22 degrees Fahrenheit) during winter.Bordered by Russia and North Korea, it is one of China’s poorest provinces, outperforming only neighbouring Jilin, Gansu, Hainan island and sparsely populated Tibet, Qinghai and Ningxia.But the first five months of 2024 saw the operating income of Heilongjiang’s cultural, sports and entertainment industries rise nearly 60 percent year-on-year, according to official data.Tourists spent 154 billion yuan ($21 billion) in the first half of 2024, up 171 percent from the first half of 2023.Popular novels and dramas set in the northeast have also helped spark a travel boom to the region.”A lot of southerners, which we call ‘little potatoes’, came over here for travel and made our Harbin very trendy,” Emily Liu, a local tour guide, told AFP.The online fame has been good for the travel business, said 30-year-old Jiang Zhonglong, energetically gesticulating in front of his tripod just metres away from Liu.He started working for a Harbin-based travel agency three years ago, during the Covid-19 pandemic, and said business was now much better.”So many little friends, southern potatoes, tourists have all come here,” he said.One night this month, the city’s commercial district of Central Street saw a steady stream of people walking on the cobblestone path under bright yellow lights.Ling, a 38-year-old from the coastal eastern province of Zhejiang, was there with his wife to “daka”, a phrase that means “punching in” but now describes visiting popular spots to share photos on social media.”We often scroll through (video sharing platform) Douyin and such. We often see videos promoting Harbin,” said Ling, who asked to be identified only by his surname.- ‘My hometown is popular’ -Ling told AFP he’d believed negative stereotypes about Dongbei in the past.”But we came here and found that things are pretty decent,” he said.”I’ve been yearning for a different cultural experience compared to where I come from — the weather and style are completely different.”Nearby, a steady stream of people ducked inside a shop selling goods from Russia — just a stone’s throw away.Foot traffic to the shopping street has tripled since 2022, said store manager Zhangzhang, who has worked in the area for more than 10 years and asked to be identified by her nickname.”My hometown has suddenly become popular,” she said, adding she was “extremely proud”.She said the store last year started selling more hats and scarves for travellers who “didn’t pack enough layers” — including those printed with the region’s classic red florals.”I think that this can help lift the economy of our Dongbei.”

Global stock markets mostly fell Monday in jittery holiday trading ahead of a potentially tumultuous 2025 that will see Donald Trump return to the White House.Wall Street’s three main indices slumped to end the day, adding to losses on Friday that have put paid to Wall Street’s usual holiday-period “Santa Claus rally.””We can’t drive major conclusions in a holiday-shortened and thin-trading-volume week, but last week’s price action looked pretty close to the narrative of rotation from tech to non-tech stocks that many investors expect to be the theme of next year,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.US tech stocks had led the losses Friday, with Elon Musk’s electric car giant Tesla shedding around five percent and AI chipmaker Nvidia off around two percent.Shares in Tesla fell 3.3 percent on Monday, although Nvidia shares managed to nudge higher.Briefing.com analyst Patrick O’Hare said there was no news catalyst for the weakness.”The selling interest, then, has profit-taking activity written on it with a P.S. presumably of rebalancing interest,” he said. “There isn’t a rebalancing push in the stock market this morning,” he said, however. “The weakness is broad-based.” Weighing on sentiment were worries about slower-than-hoped US interest rate cuts and possible higher import tariffs once Trump is inaugurated on January 20.Yields on US government debt dipped on Monday, but have pushed higher at the longer-dated maturities on worries about higher inflation and interest rates, with the yield on 10-year bonds hitting 4.63 percent recently.”If yields continue to hold at these levels, or push higher towards 5.0 percent, then this will be a strong headwind for equity prices,” said Trade Nation analyst David Morrison.This comes as investors choose the relative safety of a near-guaranteed five-percent return on funds in US Treasuries, compared with the uncertainty of stocks, he noted.In Europe, the main indices in Frankfurt, London and Paris all finished lower. Trading wrapped up for the year in Frankfurt, with the DAX rising 18.8 percent for the year, including breaching the 20,000 level for the first time.In Asia, Tokyo closed down almost one percent Monday, its last day of trading until January 6.Nissan dropped as much as 6.7 percent on worries about its mooted merger with fellow Japanese automaker Honda.Overall, the Nikkei 225 index gained almost 20 percent in 2024, finally surpassing the high seen before Japan’s asset bubble burst in the 1990s.In Seoul, Jeju Air shares fell as much as 15 percent after one of its planes crashed in South Korea on Sunday, killing 179 people.Another Jeju Air flight had to return after encountering a landing gear problem on Monday, the airline said.Korean authorities ordered an inspection of all Boeing 737-800 aircraft operated by the country’s carriers.Shares in Boeing fell 5.3 percent as trading got under way in New York, but recovered slightly after.South Korea was also hit with further political turmoil, with authorities issuing an arrest warrant for suspended President Yoon Suk Yeol after his declaration of martial law.- Key figures around 2130 GMT -New York – Dow: DOWN 1.0 percent at 42,573.73 points (close)New York – S&P 500: DOWN 1.1 percent at 5,906.94 (close)New York – Nasdaq Composite: DOWN 1.2 percent at 19,486.79 (close)London – FTSE 100: DOWN 0.4 percent at 8,121.01 (close) Paris – CAC 40: DOWN 0.6 percent at 7,313.56 (close)Frankfurt – DAX: DOWN 0.4 percent at 19,909.14 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 39,894.54 points (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,041.42 (close)Shanghai – Composite: UP 0.2 percent at 3,407.33 (close)Euro/dollar: DOWN at $1.0401 from $1.0429 on FridayPound/dollar: DOWN at $1.2548 from $1.2579Dollar/yen: DOWN at 156.80 yen from 157.89 yenEuro/pound: UP at 82.89 pence from 82.87 penceWest Texas Intermediate:  UP 0.6 percent at $70.99 per barrelBrent North Sea Crude: UP 0.3 percent at $74.39 per barrelburs-rl/bys/aha

European and Asia stock markets mostly fell Monday in jittery holiday trade ahead of a potentially tumultuous 2025 when Donald Trump returns to the White House.With volumes thin, US futures were also pointing lower after losses on Friday that put paid to Wall Street’s usual holiday period “Santa Claus rally”.”We can’t drive major conclusions in a holiday-shortened and thin-trading-volume week, but last week’s price action looked pretty close to the narrative of rotation from tech to non-tech stocks that many investors expect to be the theme of next year,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.US tech stocks had led the losses Friday, with Elon Musk’s electric car giant Tesla shedding around five percent and AI chipmaker Nvidia off around two percent.Weighing on sentiment were worries about slower-than-hoped US interest rate cuts and possible higher import tariffs once Trump is inaugurated on January 20.Tokyo closed down almost one percent Monday, its last day of trading until January 6.Nissan fell as much as 6.7 percent on worries about its mooted merger with fellow Japanese automaker Honda.Overall the Nikkei 225 index gained almost 20 percent in 2024, finally surpassing the high seen before Japan’s asset bubble burst in the 1990s.London and Frankfurt dipped in late morning deals Monday, while Paris edged up. Oil prices steadied.In Seoul, Jeju Air shares fell as much as 15 percent after one of its planes crashed in South Korea on Sunday, killing 179 people.Another Jeju Air flight had to return after encountering a landing gear problem on Monday, the airline said.Korean authorities ordered an inspection of all Boeing 737-800 aircraft operated by the country’s carriers.South Korea was also hit with further political turmoil, with authorities issuing an arrest warrant for suspended President Yoon Suk Yeol after his declaration of martial law.- Key figures around 1045 GMT -London – FTSE 100: DOWN 0.2 percent at 8,132.77 pointsParis – CAC 40: UP 0.1 percent at 7,363.77 Frankfurt – DAX: DOWN 0.1 percent at 19,958.37Tokyo – Nikkei 225: DOWN 1.0 percent at 39,894.54 points (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,041.42 (close)Shanghai – Composite: UP 0.2 percent at 3,407.33Euro/dollar: UP at $1.0437 from $1.0429 on FridayPound/dollar: UP at $1.2589 from $1.2579Dollar/yen: DOWN at 157.76 yen from 157.89 yenEuro/pound: UP at 82.90 pence from 82.87 penceWest Texas Intermediate:  FLAT at $70.60 per barrelBrent North Sea Crude: DOWN 0.1 percent at $74.11 per barrel

Asia stocks mostly fell Monday in jittery holiday trade ahead of a potentially tumultuous 2025 when Donald Trump returns to the White House.With volumes thin, US and European equity futures were also pointing lower after losses on Friday that put paid to Wall Street’s usual holiday period “Santa Claus rally”.Tech stocks had led the way, with Elon Musk’s electric car giant Tesla shedding around five percent lower and AI chipmaker Nvidia off around two percent.Weighing on sentiment were worries about slower-than-hoped US interest rate cuts and possible higher import tariffs once Trump is inaugurated on January 20.”With US (bond) yields climbing and liquidity essentially non-existent, there’s always the potential for outsized moves,” said Stephen Innes at SPI Asset Management.”This comes during a critical phase of year-end rebalancing, intensified by hefty equity positions across portfolios,” Innes said in a note.Tokyo, on its last day of trading until January 6, fell almost one percent.Nissan slipped as much as 6.7 percent on worries about its mooted merger with fellow Japanese automaker Honda.Overall the Nikkei 225 index gained almost 20 percent in 2024, finally surpassing the high seen before Japan’s asset bubble burst in the 1990s.The yen was little changed after hitting 157.89 against the dollar on Thursday, the lowest in almost six months.That came after Bank of Japan governor Kazuo Ueda failed to give a clear signal on a possible interest rate increase next month.In Seoul, Jeju Air shares fell as much as 15 percent after one of its planes crashed in South Korea on Sunday, killing 179 people.Another Jeju Air flight had to return after encountering a landing gear problem on Monday, the airline said.Korean authorities ordered an inspection of all Boeing 737-800 aircraft operated by the country’s carriers.South Korea was also hit with further political turmoil, with authorities issuing an arrest warrant for suspended President Yoon Suk Yeol after his declaration of martial law.Seoul, Hong Kong, Taipei, Sydney and Manila were all in the red. Shanghai was one of the few gainers, along with Singapore and Kuala Lumpur.China’s purchasing managers’ index (PMI) for manufacturing is due on Tuesday. The reading was expected to stay at 50.3, above the 50 line dividing expansion and contraction, according to Bloomberg.- Key figures around 0830 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 39,894.54 points (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,041.42 (close)Shanghai – Composite: UP 0.2 percent at 3,407.33Euro/dollar: DOWN at $1.0426 from $1.0429 on FridayPound/dollar: DOWN at $1.2574 from $1.2579Dollar/yen: UP at 157.92 yen from 157.89 yenEuro/pound: UP at 82.91 pence from 82.87 penceWest Texas Intermediate: DOWN 0.1 percent at $70.50 per barrelBrent North Sea Crude: DOWN 0.1 percent at $74.07 per barrel

Asia stocks mostly fell in thin holiday trade on Monday after tech losses killed off the traditional year-end lift on Wall Street at the end of last week.The “Santa Claus rally” got off to a good start but US stocks then fell across the board on Friday, with the S&P 500 and the Nasdaq both dropping more than one percent.Tech stocks led the way, with Elon Musk’s electric car giant Tesla closing around five percent lower and AI chipmaker Nvidia shedding around two percent.Weighing on investor sentiment were worries about the pace of US interest rate cuts and possible higher import tariffs under incoming US president Donald Trump.”As US stock markets concluded with a downturn on Friday, Asia-Pacific markets are bracing for a slippery penultimate trading day of 2024,” said Stephen Innes at SPI Asset Management.”With US (bond) yields climbing and liquidity essentially non-existent, there’s always the potential for outsized moves. This comes during a critical phase of year-end rebalancing, intensified by hefty equity positions across portfolios,” Innes said in a note.In Tokyo, the Nikkei was down 0.75 percent at 40,020.00 points on the last day of trading until January 6.The yen was little changed after hitting 158.08 against the dollar on Thursday, the lowest in almost six months.That came after Bank of Japan governor Kazuo Ueda failed to give a clear signal on a possible interest rate increase next month.In Seoul, Jeju Air shares tumbled more than eight percent after one of its planes crashed in South Korea on Sunday, killing all but two of the 181 people on board.South Korea’s transport ministry said on Monday it was “reviewing plans to conduct a special inspection on (Boeing) B737-800 aircraft” after the crash.South Korea was also hit with further political turmoil, with authorities issuing an arrest warrant for suspended President Yoon Suk Yeol.Yoon briefly imposed martial law this month and was then impeached by parliament. Lawmakers also impeached his acting successor Han Duck-soo last week.Chinese stocks also opened lower on Monday, with the benchmark Shanghai Composite Index down 0.09 percent at 3,397.12.China’s purchasing managers’ index (PMI) for manufacturing was due on Tuesday. The reading was expected to stay at 50.3, above the 50 line dividing expansion and contraction, according to Bloomberg. – Key figures around 0300 GMT -Tokyo – Nikkei 225: DOWN 0.75 percent at 40,020.00 pointsHong Kong – Hang Seng Index: DOWN 0.40 percent at 20,001.00Shanghai – Composite: DOWN 0.1 percent at 3,397.12Euro/dollar: DOWN at $1.0423 from $1.0429 on FridayPound/dollar: DOWN at $1.2577 from $1.2579Dollar/yen: DOWN at 157.82 yen from 157.89 yenEuro/pound: UP at 82.88 pence from 82.87 penceWest Texas Intermediate: UP at $70.63 per barrelBrent North Sea Crude: UP at $74.23 per barrel

After South Korea’s president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country’s currency and shaking confidence in its economy.The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol’s attempt to scrap civilian rule in early December.Business and consumer confidence in Asia’s fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon’s removal from office and bring him to justice.That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.Choi has pledged to do all he can to end “this period of turmoil” and resolve the political crisis gripping the country.- Constitutional question –At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament’s decision to impeach Yoon.It must do so by a two-thirds majority, however. And because three of the court’s nine seats are currently vacant, a unanimous vote is required to confirm the suspended president’s removal.Otherwise, Yoon will be automatically returned to office.Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.After an acrimonious day in which lawmakers from Yoon’s party erupted in protest, the country’s newest acting president sought to project calm.”Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilisation,” Choi said Friday.The 61-year-old career civil servant has inherited a 2025 budget — adopted by the opposition alone — which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.”There are already signs the crisis is having an impact on the economy,” Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence. “The crisis is unfolding against a backdrop of a struggling economy,” he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.”Longer term, political polarisation and resulting uncertainty could hold back investment in Korea,” Leather wrote, citing the example of Thailand, another ultra-polarised country whose economy has stagnated since a coup in 2014.- Democratic resilience? – But other economists noted that the South Korean economy has so far weathered the chaos well.As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilise the markets, and the Kospi Index has lost less than four percent since the start of the crisis. “Like everyone, I was surprised when Yoon took those crazy measures,” Park Sang-in, a professor of economics at Seoul National University, told AFP. “But there was a resilience of democracy.””We come from being an underdeveloped country to one of the world’s most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth,” he added.”Korean society was mature enough to counter his crazy actions.”

Authorities in Brazil said Friday they were probing Chinese auto giant BYD and one of its contractors for suspected “trafficking” of Chinese workers who were building a factory in the South American country.Federal prosecutors in Brazil are weighing possible criminal action after labor inspectors found 163 Chinese workers “in slave-like conditions” at the construction site in the northeast state of Bahia, a government statement said.The workers, employed by BYD contractor Jinjiang Open Engineering, were viewed as “victims of international trafficking for the purpose of labor exploitation,” said the statement.A Chinese foreign ministry spokeswoman in Beijing, Mao Ning, said: “We have noted the relevant reports… and are currently verifying the situation.”She added that Beijing “attaches great importance to protecting laborers’ legitimate rights and interests, and has always required Chinese enterprises to operate in line with the law and regulations.”On Thursday, BYD and Jinjiang were quizzed by Brazilian government ministries, which said “the companies committed to collaborate in protecting the rescued workers.”- Allegations denied -On Monday, Brazilian officials said they had found labor violations at the site, which is being built to be BYD’s largest electric car plant outside of Asia. Bahia’s regional ministry for works (MPT) ordered construction to be suspended at part of the site.Inspections carried out since November found “degrading working conditions,” including beds in workers’ accommodation lacking mattresses, and one bathroom per 31 workers, an MPT statement said.The workers, who spent long hours under the sun, had “visible signs of skin damage,” the statement said.The MPT added that it suspected “forced labor,” with workers’ passports confiscated and their employer “retaining 60 percent of their salary.”After the allegations were made public, BYD’s Brazilian subsidiary said it had broken its contract with the Jinjiang subsidiary responsible for work on the site. It added that it had sent the 163 workers to stay in hotels.BYD spokesperson Li Yunfei blasted the allegations of human trafficking in a post made to his personal Weibo social media account on Thursday.”In terms of smearing Chinese brands, smearing China and attempting to damage the China-Brazil friendship, we have seen how the relevant foreign forces maliciously collaborate and engage in deliberate smearing,” Li wrote in his post.Jinjiang on Thursday — in a statement issued before the online hearing with Brazilian authorities — denied the slavery allegation.The company said the accusations “seriously damaged the dignity of Chinese people” and claimed it “made our staff feel seriously insulted and that their human rights have been violated.”Brazilian authorities said they were requiring Jinjiang to take the 163 workers to the police to register them in Brazil’s tax system so they could be properly paid.They also said the company must ensure that seven of the workers due to return to China on January 1 are given air tickets and $120 in travel expenses.The Brazilian authorities said a new hearing was set for January 7 for the companies to present their remedies for the labor violations that were identified.