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Since the United States accused Vietnam of being a hub for counterfeit goods, Tran Le Chi has found it increasingly hard to track down her favourite fake Chanel T-shirts, Gucci sunglasses and Louis Vuitton handbags.As Vietnam’s government tries to head off President Donald Trump’s threatened 46 percent tariff, it has launched a crackdown on fake products — in part to show responsiveness to US concerns.Now there are streets filled with shuttered shops in Hanoi and rows of closed stalls at Saigon Square shopping mall, a major clothing market in Ho Chi Minh City — the kind of places Chi used to go to buy her latest gear.”The clothes help me look trendy,” Chi told AFP. “Why would I care if they are fake or not?”Chi — a betting agent for an illegal game known as lo-de, where punters predict the last two lotto numbers of the standard daily draw — said she had never paid more than $40 per “designer” item.”Only the super-rich people can afford the real ones,” she added. “They’re not for people like us.”Communist-run Vietnam is a manufacturing powerhouse that produces clothing and footwear for international brands, with the United States its number-one export market in the first five months of 2025.But it also has a thriving market for counterfeit goods.In a report published by the US Trade Representative in January, Saigon Square shopping mall was flagged as a major market for the sale of fake luxury items including handbags, wallets, jewellery and watches.The report noted government efforts to stamp out the trade, but said “low penalties have had little deterrent effect” and “counterfeit products remain rampant”.Shop owner Hoa, a pseudonym to protect her identity, said almost all of the fake Nike, Lacoste and North Face products she sells in her shop in Hanoi’s old quarter are from China — but tagged with a “Made in Vietnam” label to make them seem authentic.She insists that all her customers know what they’re getting.”My clients are those who cannot afford authentic products,” Hoa said. “I’ve never cheated anyone.” – Rolex watches, Marshall speakers -Hanoi and Washington are in the thick of trade talks, with Vietnam doing everything it can to avoid the crushing 46 percent tariff that could come into force in early July.Vietnam’s trade ministry ordered authorities in April to tighten control over the origin of goods after the Trump administration accused the country of facilitating Chinese exports to the United States and allowing Beijing to get around tariffs.The public security ministry also said there would be a three-month-long crackdown — until mid-August — on counterfeit goods.Nguyen Thanh Nam, deputy head of the agency for domestic market surveillance and development, said last week that in the first five months of the year, more than 7,000 cases of counterfeit products worth more than $8 million had been discovered. He added that 1,000 fake Rolex watches had been seized from Saigon Square shopping mall.Mounds of vitamins, cosmetics and sweets — seemingly also counterfeits — have appeared at waste grounds outside cities including Hanoi, Ho Chi Minh City and Danang, while fake electronics including Marshall speakers and smartwatches have been confiscated. Police have not specified the origin of the goods, but Vietnam was Southeast Asia’s biggest buyer of Chinese products in 2024, with a bill of $161.9 billion.Nguyen Khac Giang, visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore, said that although there were other aims of the drive, including improving Vietnam’s business environment and formalising the retail sector, “the campaign plays a role in Vietnam’s strategy to appease the US”.”The effort partly reflects Vietnam’s intent to show responsiveness to US concerns,” he said.But for Hoa, her livelihood is on the line. Her shop has been closed for almost two weeks and she has no idea how to restart the business.”I have sold these sorts of clothes for a decade and experienced no problem at all. Now they crack down on us, it’s hard to figure out how I continue,” she said.

US President Donald Trump will this week give TikTok a fresh 90-day extension to find a non-Chinese buyer, the White House said Tuesday, the third time he has put off a threatened ban on the popular app.A federal law requiring TikTok’s sale or ban on national security grounds was due to take effect the day before Trump’s January inauguration.”President Trump will sign an additional Executive Order this week to keep TikTok up and running. As he has said many times, President Trump does not want TikTok to go dark,” Press Secretary Karoline Leavitt said in a statement.”This extension will last 90 days, which the administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure.”Trump, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video sharing app.”I have a little warm spot in my heart for TikTok,” Trump said in an NBC News interview in early May. “If it needs an extension, I would be willing to give it an extension.”- Digital Cold War? -Trump said at the time that a group of purchasers was ready to pay TikTok owner ByteDance “a lot of money” for the video-clip-sharing sensation’s US operations.Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app’s US business.The president is “just not motivated to do anything about TikTok,” said independent analyst Rob Enderle. “Unless they get on his bad side, TikTok is probably going to be in pretty good shape.”Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters’ support in the November election.Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump’s inauguration, with ByteDance having made no attempt to find a suitor.TikTok “has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control,” said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain.The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19.- Tariff turmoil -Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing.ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be “subject to approval under Chinese law”.Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company.Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance’s share in the new TikTok.Much of TikTok’s US activity is already housed on Oracle servers, and the company’s chairman, Larry Ellison, is a longtime Trump ally.Uncertainty remains, particularly over what would happen to TikTok’s valuable algorithm.”TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful,” said Forrester Principal Analyst Kelsey Chickering.Meanwhile, it appears TikTok is continuing with business as usual.TikTok on Monday introduced a new “Symphony” suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.

Oil prices jumped and stocks mostly fell Tuesday after President Donald Trump abruptly departed G7 talks and concerns rose over a possible US intervention in the Israel-Iran war.Investors’ optimism the previous day that the conflict would not spread throughout the Middle East gave way to fears of further escalation as the fighting entered its fifth day.”Middle East tensions are showing no signs of easing back, putting investors on high alert,” said Russ Mould, investment director at AJ Bell. Trump said he was aiming for a “real end” to the conflict, not just a ceasefire after he departed the G7 summit in Canada.In social media posts, Trump appeared to demand Iran’s “UNCONDITIONAL SURRENDER!” while hinting at a possible US intervention to assist Israel. After spending all of Monday in positive territory, US indices were in the red throughout Tuesday’s session. The S&P 500 finished down 0.8 percent.Contributing to the selling was a disappointing US retail sales report that suggested shoppers pulled back in May after accelerating purchases the prior months in anticipation of tariffs.European equities ended the day lower, while Asia turned in a mixed performance: Hong Kong fell, while Shanghai was flat and Tokyo advanced.Despite mounting calls to de-escalate, neither side has backed off from the missile blitz that began Friday, when Israel targeted Iranian nuclear and military facilities.Oil prices surged more than four percent on Tuesday after swinging between gains and losses since Friday’s initial surge.Analysts have said the oil market is currently “sufficiently supplied,” as Commerzbank said in a note.However, the Iran-Israel conflict has the oil market on edge because of the significance of the Strait of Hormuz, through which around an estimated fifth of global oil supply traverses, according to the Commerzbank note.Investors are looking ahead to the US Federal Reserve’s decision on Wednesday, with policymakers expected to hold steady interest rates. Dealers also kept tabs on the G7 summit, where world leaders pushed back against Trump’s trade war, arguing it posed a risk to global economic stability.Britain, Canada, Italy, Japan, Germany and France called on Trump to reverse course on his plans to impose even steeper tariffs on countries across the globe next month.”Trump leaving the summit early means the prospects of any more deals look slim in the days ahead,” said City Index and FOREX.com analyst Fawad Razaqzada.The dollar advanced against the euro and other currencies, evidence of a revived flight to safety impetus among traders due to Middle East uncertainty.- Key figures at around 2030 GMT -Brent North Sea Crude: UP 4.4 percent at $76.45 per barrelWest Texas Intermediate: UP 4.3 percent at $74.84 per barrelNew York – Dow: DOWN 0.7 percent at 42,215.80 (close)New York – S&P 500: DOWN 0.8 percent at 5,982.72 (close)New York – Nasdaq Composite: DOWN 0.9 percent at 19,918.28 (close)London – FTSE 100: DOWN 0.5 percent at 8,834.03 (close) Paris – CAC 40: DOWN 0.8 percent at 7,683.73 (close)Frankfurt – DAX: DOWN 1.1 percent at 23,434.65 (close)Tokyo – Nikkei 225: UP 0.6 percent at 38,536.74 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,980.30 (close)Shanghai – Composite: FLAT at 3,387.40 (close)Euro/dollar: DOWN at $1.1488 from $1.1561 on MondayPound/dollar: DOWN at $1.3425 from $1.3578Dollar/yen: UP at 145.27 yen from 144.75 yenEuro/pound: UP at 85.54 pence from 85.14 penceburs-jmb/dw

Xi Jinping celebrated China’s “eternal friendship” with Central Asia at a summit in Kazakhstan on Tuesday, as the Chinese leader blasted tariffs and sought to assert Beijing’s influence in a region historically dominated by Russia.The summit in Astana brought together Xi with the leaders of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan.Under Russia’s orbit until the fall of the Soviet Union in 1991, the five Central Asian states have courted interest from major powers including China, the European Union and the United States since becoming independent.At the summit, the group signed a pact of “eternal” friendship as Xi called for closer ties with the resource-rich region.”We should… strengthen cooperation with a more enterprising attitude and more practical measures,” said Xi in comments carried by state news agency Xinhua. Central Asia is also seen as a key logistics hub, given its strategic location between China, Russia, the Middle East and Europe.- ‘No winners’ -Speaking as Western leaders gathered on the other side of the world for the G7 in Canada, Xi refreshed his criticism of US President Donald Trump’s trade policies.”Tariff wars and trade wars have no winners,” Xinhua quoted him as saying.While Central Asian leaders continue to view Russia as a strategic partner, ties with Moscow have loosened since the war in Ukraine.China has also shown willingness to invest in massive infrastructure projects in the region, part of its Belt and Road initiative that uses such financing as a political and diplomatic lever.In a meeting with Kyrgyzstan’s president, Xi called for moves to “advance high-quality construction of the China-Kyrgyzstan-Uzbekistan railway and foster new drivers of growth in clean energy, green minerals and artificial intelligence”.The five Central Asian nations are trying to take advantage of the growing interest in their region and are coordinating their foreign policies accordingly.They regularly hold summits with China and Russia to present the region as a unified bloc and attract investment.High-level “5+1″ format talks have also been organised with the European Union, the United States, Turkey and other Western countries.”The countries of the region are balancing between different centres of power, wanting to protect themselves from excessive dependence on one partner,” Kyrgyz political scientist Nargiza Muratalieva told AFP.- Biggest trade partner -Russia says China’s growing influence in the region does not pose a threat.”There is no reason for such fears. China is our privileged strategic partner, and the countries of Central Asia, naturally, are our natural historical partners,” Kremlin spokesman Dmitry Peskov told reporters on Monday.But China has now established itself as Central Asia’s leading trading partner, far outstripping the EU and Russia.Construction of the Uzbekistan-Kyrgyzstan-China railway and the China-Tajikistan highway, which runs through the Pamir Mountains to Afghanistan, are among its planned investments.New border crossings and “dry ports” have already been built to process trade, such as Khorgos in Kazakhstan, one of the largest logistics hubs in the world.”Neither Russia nor Western institutions are capable of allocating financial resources for infrastructure so quickly and on such a large scale, sometimes bypassing transparent procedures,” said Muratalieva.Kazakhstan said last week that Russia would lead the construction of its first nuclear power plant but that it wanted China to build the second.”Central Asia is rich in natural resources such as oil, gas, uranium, gold and other minerals that the rapidly developing Chinese economy needs,” Muratalieva said.”Ensuring uninterrupted supplies of these resources, bypassing unstable sea routes, is an important goal of Beijing,” the analyst added.- Human rights -China also positions itself as a supporter of the predominantly authoritarian Central Asian leaderships.At the last Central Asia-China summit, Xi called for “resisting external interference” that might provoke “colour revolutions” that could overthrow the current leaders in the region.”Beijing sees the stability of the Central Asian states as a guarantee of the security of its western borders,” Muratalieva said.Central Asia border’s China’s northwestern Xinjiang region, where Beijing is accused of having detained more than a million Uyghurs and other Muslims, part of a campaign the UN has said could constitute crimes against humanity.burs/bk-mmp/jc/rlp

Oil prices jumped and stocks mostly fell Tuesday after US President Donald Trump abruptly departed G7 talks to monitor the conflict between Israel and Iran and called for Tehran residents to evacuate. Investors’ optimism the previous day that the conflict would not spread throughout the Middle East gave way to fears of further escalation as the conflict entered its fifth day.”Middle East tensions are showing no signs of easing back, putting investors on high alert,” said Russ Mould, investment director at AJ Bell. Trump said he was aiming for a “real end” to the conflict, not just a ceasefire after he departed the G7 summit in Canada.  “Iran should have signed the ‘deal’ I told them to sign,” he said on social media, referring to nuclear talks that were taking place.European equities struggled, with Paris and Frankfurt stocks both shedding over one percent, while London also retreated. In Asia, Hong Kong fell, while Shanghai was flat and Tokyo advanced.Despite mounting calls to de-escalate, neither side has backed off from the missile blitz that began Friday, when Israel targeted Iranian nuclear and military facilities.Oil prices climbed around two percent on Tuesday after swinging between gains and losses since Friday’s initial surge.But gains were tempered after the International Energy Agency said in its 2025 report that global demand would fall slightly in 2030 for the first time since the start of the Covid pandemic in 2020.”We don’t expect high oil prices to be with us for a very long time,” said IEA executive director Fatih Birol.He added that the IEA is “monitoring the situation” and is “ready to act” in the case of a supply disruption. “There are a lot of eyes on the oil markets — not just for geopolitical reasons but for their broader economic impact,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “Energy prices remain a crucial piece of the inflation puzzle, and falling oil had been a cornerstone of the US President’s pressure campaign to nudge the Fed toward rate cuts,” he added.Investors are looking ahead to the US Federal Reserve’s decision on Wednesday, with policymakers expected to hold interest rates. Dealers also kept tabs on the G7 summit, where world leaders pushed back against Trump’s trade war, arguing it posed a risk to global economic stability.Britain, Canada, Italy, Japan, Germany and France called on the president to reverse course on his plans to impose even steeper tariffs on countries across the globe next month.Trump managed to sign documents with UK Prime Minister Keir Starmer to confirm an agreement over trade with Britain. On currency markets, the yen edged up against the dollar after the Bank of Japan stood pat on interest rates and said it would slow the tapering of its bond purchases.- Key figures at around 1050 GMT -Brent North Sea Crude: UP 2.0 percent at $74.68 per barrelWest Texas Intermediate: UP 1.8 percent at $73.07 per barrelLondon – FTSE 100: DOWN 0.4 percent at 8,836.05 pointsParis – CAC 40: DOWN 1.0 percent at 7,665.05 Frankfurt – DAX: DOWN 1.2 percent at 23,421.37Tokyo – Nikkei 225: UP 0.6 percent at 38,536.74 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,980.30 (close)Shanghai – Composite: FLAT at 3,387.40 (close)New York – Dow: UP 0.8 percent at 42,515.09 (close)Euro/dollar: UP at $1.1568 from $1.1562 on MondayPound/dollar: DOWN at $1.3559 from $1.3579Dollar/yen: DOWN at 144.67 yen from 144.79 yenEuro/pound: UP at 85.32 pence from 85.12 pence

Oil prices jumped and equities fluctuated Tuesday as investors weighed Donald Trump called for Tehran residents to evacuate and hopes that the conflict between Israel and Iran does not descend into all-out war.While the crisis in the Middle East continues to instill uncertainty, talk that the Islamic republic wanted to make a nuclear deal was providing some optimism.After Friday’s surge sparked by Israel’s attacks on its regional foe, crude ticked more than one percent lower Monday as traders bet that the conflict would not spread throughout the Middle East and key oil sites were mostly left untouched.Prices bounced back Tuesday after Trump called for the evacuation of the Iranian capital, which is home to nearly 10 million people.”Iran should have signed the ‘deal’ I told them to sign,” he said on social media, referring to nuclear talks that were taking place.”What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!”Trump later poured cold water on remarks from French President Emmanuel Macron that he was leaving the G7 summit in Canada to discuss a possible ceasefire.Oil climbed more than one percent in late Asian trade Tuesday, after swinging between gains and losses through the day.Gains were tempered after the International Energy Agency said in its 2025 report that global demand would fall slightly in 2030 for the first time since the start of the Covid pandemic in 2020.It cited “below-trend economic growth, weighed down by global trade tensions and fiscal imbalances, and the accelerating substitution away from oil in the transport and power generation sectors”.Traders are keeping a wary eye on developments in the Iran crisis, with the aircraft carrier USS Nimitz leaving Southeast Asia on Monday after cancelling a Vietnam visit as the Pentagon announced it was sending “additional capabilities” to the Middle East.Trump has maintained that Washington has “nothing to do” with Israel’s campaign, but Iran’s foreign minister said Monday the US leader could halt the attacks with “one phone call”.Tehran has said it would hit US sites if Washington got involved.Meanwhile, Britain, France and Germany called on Iran to quickly return to the negotiating table over its nuclear programme, a French diplomatic source said.The US president had earlier said Iran wanted to make a deal, adding “as soon as I leave here, we’re going to be doing something”.He later left the gathering in the Rockies, telling reporters: “I have to be back as soon as I can. I wish I could stay for tomorrow, but they understand, this is big stuff.”Tehran had signalled a desire to de-escalate and resume nuclear talks with Washington as long as the United States did not join the conflict, according to the Wall Street Journal.Equities were mixed in Asian trade, with Tokyo, Singapore, Seoul, Manila, Bangkok, Jakarta and Taipei all advancing, while Hong Kong, Sydney, Wellington and Mumbai struggled along with London, Paris and Frankfurt.Shanghai was flat.Dealers also kept tabs on the G7 summit, where world leaders pushed back against Trump’s trade war, arguing it posed a risk to global economic stability.Britain, Canada, Italy, Japan, Germany and France called on the president to reverse course on his plans to impose even steeper tariffs on countries across the globe next month.On currency markets the yen edged up against the dollar after the Bank of Japan stood pat on interest rates and said it would slow the tapering of its bond purchases.- Key figures at around 0810 GMT -West Texas Intermediate: UP 1.3 percent at $72.67 per barrelBrent North Sea Crude: UP 1.2 percent at $74.11 per barrelTokyo – Nikkei 225: UP 0.6 percent at 38,536.74 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,980.30 (close)Shanghai – Composite: FLAT at 3,387.40 (close)London – FTSE 100: DOWN 0.6 percent at 8,824.48 Euro/dollar: DOWN at $1.1561 from $1.1562 on MondayPound/dollar: DOWN at $1.3567 from $1.3579Dollar/yen: DOWN at 144.46 yen from 144.79 yenEuro/pound: UP at 85.22 pence from 85.12 penceNew York – Dow: UP 0.8 percent at 42,515.09 (close)

The Bank of Japan kept interest rates unchanged Tuesday and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world’s number four economy.The central bank has spent many years buying up Japanese Government Bonds (JGBs) to keep yields low as part of an ultra-loose monetary policy aimed at banishing stagnation and harmful deflation.But it began moving away from that easing programme last year, as inflation began to pick up and the yen weakened.After hiking interest rates for the first time since 2007, the bank began winding down its JGB purchases.It has since lifted borrowing costs several times to 0.5 percent, their highest in 17 years, and continued to buy fewer bonds.However, analysts say uncertainty sparked by US President Donald Trump’s trade war has led bank officials to hold off on more hikes — and on Tuesday they held rates again, while saying they would slow the pace of JGB reductions.”This measure was taken in order to avoid the possibility of an abnormal volatility in government bond yields, which would have a negative impact on the economy,” bank governor Kazuo Ueda told reporters.”We believe that it is appropriate for the Bank of Japan to reduce its JGB purchases in a predictable manner, while ensuring flexibility,” he added.Bond purchases will be cut in principle “by about 200 billion yen each calendar quarter from April-June 2026″ — from around 400 billion yen ($2.8 billion) per quarter, the bank’s policy statement said.- Next rate hike? -The BoJ’s main rate is still much lower than the US Federal Reserve’s 4.25-4.5 percent.”Japan’s economic growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits,” the bank said.However, “factors such as accommodative financial conditions are expected to provide support”.”We still believe the Bank may hike rates in the second half of the year as it remains committed to normalising monetary policy,” Katsutoshi Inadome of SuMi TRUST said ahead of the policy decision.Carol Kong, an analyst at the Commonwealth Bank of Australia, told AFP the BoJ “will likely hold off on rate hikes until there is further clarity on US trade policy”.”While wage growth and consumer price inflation are solid, there are questions over whether domestic demand can withstand additional tightening,” she added.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.Trump also announced an additional 24 percent “reciprocal” tariff on the country’s goods in April but later paused it along with similar measures on other trading partners.Prime Minister Shigeru Ishiba said Monday there had been no breakthrough on a trade deal after talks with Trump on the sidelines of the G7 summit in Canada.Ueda said policymakers would closely watch the economic impact of the conflict between Israel and Iran, which has buoyed oil prices.At the same time, “the impact of various trade policies will start to become more pronounced from now on,” he said. “It may weigh on corporate earnings, especially manufacturers.”Such a trend, if continues, could impact wages and prices in Japan, he said. “We wish to monitor both factors carefully.”

Chinese President Xi Jinping met Central Asian leaders at a summit in Kazakhstan on Tuesday, his second trip to the region in under a year as Beijing competes with Russia for influence there.The summit in Astana brings together Xi — who arrived in the Kazakh capital on Monday — and the leaders of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan.Under Russia’s orbit until the fall of the Soviet Union in 1991, the five countries of Central Asia have courted interest from major powers including China and the United States since becoming independent.The region is rich in natural resources and strategically located at the crossroads of Europe and Asia.In a meeting with Kyrgyz President Sadyr Japarov on Tuesday, Xi called for the two countries to “scale up trade and investment and expand cooperation in emerging sectors”, Chinese state news agency Xinhua reported.The two sides should “advance high-quality construction of the China-Kyrgyzstan-Uzbekistan railway and foster new drivers of growth in clean energy, green minerals and artificial intelligence”, Xi reportedly said.In talks with Tajik President Emomali Rahmon, Xi said Beijing “firmly supports Tajikistan in safeguarding its national independence, sovereignty and security”, according to Xinhua.The Chinese leader also held talks with Uzbek President Shavkat Mirziyoyev and Turkmen President Serdar Berdymukhamedov, according to Beijing’s state media.While Central Asian leaders continue to view Russia as a strategic partner, ties with Moscow have loosened since the war in Ukraine.The five nations are taking advantage of the growing interest in their region and coordinating their foreign policies.They regularly hold summits with China and Russia to present the region as a unified bloc and attract investment.High-level “5+1″ format talks have also been organised with the European Union, the United States, Turkey and other Western countries.”The countries of the region are balancing between different centres of power, wanting to protect themselves from excessive dependence on one partner,” Kyrgyz political scientist Nargiza Muratalieva told AFP.- Biggest trade partner -Russia says China’s growing influence in the region does not pose a threat.”There is no reason for such fears. China is our privileged strategic partner, and the countries of Central Asia, naturally, are our natural historical partners,” Kremlin spokesman Dmitry Peskov told reporters on Monday.But China has now established itself as Central Asia’s leading trading partner, far outstripping the EU and Russia.Central Asia is also an important target for China in its Belt and Road initiative — which uses huge infrastructure investments as a political and diplomatic lever.Construction of the Uzbekistan-Kyrgyzstan-China railway and the China-Tajikistan highway, which runs through the Pamir Mountains to Afghanistan, are among the planned investments.New border crossings and “dry ports” have already been built to process trade, such as Khorgos in Kazakhstan, one of the largest logistics hubs in the world.”Neither Russia nor Western institutions are capable of allocating financial resources for infrastructure so quickly and on such a large scale, sometimes bypassing transparent procedures,” said Muratalieva.Kazakhstan said last week that Russia would lead the construction of its first nuclear power plant but that it wanted China to build the second.”Central Asia is rich in natural resources such as oil, gas, uranium, gold and other minerals that the rapidly developing Chinese economy needs,” Muratalieva said.”Ensuring uninterrupted supplies of these resources, bypassing unstable sea routes, is an important goal of Beijing,” the analyst added.- Human rights -China also positions itself as a supporter of the predominantly authoritarian Central Asian leaderships.At the last Central Asia-China summit, Xi called for “resisting external interference” that might provoke “colour revolutions” that could overthrow the current leaders in the region.”Beijing sees the stability of the Central Asian states as a guarantee of the security of its western borders,” Muratalieva said.Central Asia border’s China’s northwestern Xinjiang region, where Beijing is accused of having detained more than a million Uyghurs and other Muslims, part of a campaign the UN has said could constitute “crimes against humanity”.burs-mjw/je/jhb

The Bank of Japan kept interest rates unchanged Tuesday and said it would taper its purchase of government bonds at a slower pace amid concerns about the effect of trade uncertainty on the world’s number four economy.The central bank spent years buying up Japanese Government Bonds (JGBs) to keep yields low as part of an ultra-loose monetary policy aimed at banishing stagnation and harmful deflation.But it began moving away from that programme last year as inflation began to pick up and the yen weakened, and hiked interest rates for the first time since 2007 and began winding down its JGB purchases.It has since then lifted borrowing costs several times to 0.5 percent, their highest level in 17 years, and continued to buy fewer bonds.However, analysts say uncertainty sparked by US President Donald Trump’s trade war has led officials to hold off more hikes, and on Tuesday they held rates again, while saying they would slow the pace of JGB reductions.Purchases will be cut in principle “by about 200 billion yen each calendar quarter from April-June 2026″ — from around 400 billion yen ($2.8 billion) per quarter.Carol Kong, an analyst at the Commonwealth Bank of Australia outlined the possible reasons for the decision ahead of the release of the BoJ policy statement.”Slowing the bond taper will help keep interest rates lower than otherwise, providing support to the economy amid heightened trade uncertainty,” she told AFP.Speculation of such a move “intensified after a surge in the ‘super long’ Japanese Government Bond (JGB) yields in recent months”, Kong added.The yen weakened on Tuesday, with the dollar buying 144.80 yen around midday, compared with around 144.30 yen on Monday, with the BoJ’s main rate much lower than the US Federal Reserve’s 4.25-4.5 percent.”The recent softening of the yen could already partly reflect expectations for a cautious policy update from the BoJ… alongside negative spillovers for Japan from the Middle East conflict,” Lee Hardman of MUFG had said before the decision.- Next rate hike? -The BoJ also highlighted the risks ahead for the economy, saying “growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors”.However, “factors such as accommodative financial conditions are expected to provide support”, it added.Kong added that the bank “will likely hold off on rate hikes until there is further clarity on US trade policy”.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.Trump also announced an additional 24 percent “reciprocal” tariff on the country’s goods in early April but later paused it along with similar measures on other trading partners.Prime Minister Shigeru Ishiba said Monday there had been no breakthrough on a trade deal after talks with Trump on the sidelines of the G7 summit in Canada.”We still believe the Bank may hike rates in the second half of the year as it remains committed to normalising monetary policy,” said Katsutoshi Inadome of SuMi TRUST.”We expect that domestic demand will remain solid and that there is a chance economic conditions will improve to the point where the BoJ can consider interest hikes,” he said.

Oil prices rallied Tuesday after Donald Trump urged Tehran residents to evacuate, stoking fresh fears of all-out war as Israel and Iran continued to pound each other with missiles.Hopes that the deadly conflict can be contained helped most equities rise, while the US president’s earlier claim that the Islamic republic wanted to make a nuclear deal also provided a little optimism.After Friday’s surge sparked by Israel’s attacks on its regional foe, crude ticked more than one percent lower Monday as traders bet that the battle would not spread throughout the Middle East and key oil sites were mostly left untouched.But prices edged back up after Trump took to social media calling for the evacuation of the Iranian capital, which is home to nearly 10 million people.”Iran should have signed the ‘deal’ I told them to sign,” he said, referring to nuclear talks that were taking place. “What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!”Oil prices spiked around two percent Tuesday before paring some of those gains, but the comments kept investors on edge amid warnings that an escalation of the crisis could send the commodity soaring again.Meanwhile, the aircraft carrier USS Nimitz left Southeast Asia on Monday after cancelling a Vietnam visit, with the Pentagon announcing it was sending “additional capabilities” to the Middle East.Prime Minister Benjamin Netanyahu insisted Israel’s campaign was “changing the face of the Middle East”.Trump has maintained that Washington has “nothing to do” with its ally’s campaign, but Iran’s foreign minister said Monday that the US leader could halt the attacks with “one phone call”.Traders had been a little more upbeat after the US president — who is in Canada for the G7 summit — had said Iran wanted to make a deal, saying “as soon as I leave here, we’re going to be doing something”. He later left the gathering in the Rockies, telling reporters: “I have to be back as soon as I can. I wish I could stay for tomorrow, but they understand, this is big stuff.”Tehran had signalled a desire to de-escalate and resume nuclear talks with Washington as the United States did not join conflict, according to the Wall Street Journal. Stocks mostly rose in Asian trade, with Tokyo, Sydney, Seoul, Singapore and Taipei leading gains, though Shanghai and Hong Kong struggled.”Risk assets are enjoying a positive start to the new week amid signs the Israel-Iran war remains limited to the two countries without signs of a possible escalation into a wider conflict,” said Rodrigo Catril at National Australia Bank.”Iran is reportedly seeking de-escalation talks, but Israel is not showing signs of slowing down.”The gains followed a positive lead from Wall Street, where traders are keeping tabs on the G7 summit world leaders pushed back against Trump’s trade war, arguing it posed a risk to global economic stability.Leaders from Britain, Canada, Italy, Japan, Germany and France called on the president to reverse course on his plans to impose even steeper tariffs on countries across the globe next month.Also in view are central bank decisions this week, with the Bank of Japan due to make its latest decision on interest rates later in the day.Officials are expected to hold interest rates steady but tweak their bond purchase policy.- Key figures at around 0230 GMT -West Texas Intermediate: UP 1.6 percent at $72.94 per barrelBrent North Sea Crude: UP 1.4 percent at $74.25 per barrelTokyo – Nikkei 225: UP 0.5 percent at 38,501.08 (break)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 24,038.68Shanghai – Composite: DOWN 0.1 percent at 3,385.61Euro/dollar: DOWN at $1.1552 from $1.1562 on MondayPound/dollar: DOWN at $1.3569 from $1.3579Dollar/yen: UP at 144.92 yen from 144.79 yenEuro/pound: UP at 85.14 pence from 85.12 penceNew York – Dow: UP 0.8 percent at 42,515.09 (close)London – FTSE 100: UP 0.3 percent at 8,875.22 (close)