Afp Business Asia

The EU on Tuesday decided to impose hefty tariffs on Chinese-made electric cars after an anti-subsidy probe concluded Beijing’s support undercut European automakers. The extra taxes have been controversial, with strong opposition from Germany and Hungary amid fears of provoking China’s ire and setting off a bitter trade war.Beijing previously slammed the European Union’s “unfair” and “unreasonable protectionist practices” during the probe.”By adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base,” EU trade chief Valdis Dombrovskis said in a statement.”We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field,” he said.But Germany’s main auto industry association warned the tariffs heighten the risk of “a far-reaching trade conflict”, while a Chinese trade group slammed the “politically motivated” decision even as it urged dialogue between the two sides.The duties will come on top of the current 10 percent on imports of electric vehicles from China.The decision became law following its publication in the EU’s official journal later on Tuesday and the duties will enter into force from Wednesday.Brussels’ probe found that China’s state subsidies were unfairly undercutting European automakers. Once they come into effect, the tariffs will be definitive and last for five years.The extra duties also apply, at various rates, to vehicles made in China by foreign groups such as Tesla — which faces a tariff of 7.8 percent.Chinese car giant Geely — one of the country’s largest sellers of EVs — faces an extra duty of 18.8 percent, while SAIC will be hit with the highest at 35.3 percent.- Ailing companies -The tariffs do not have the support of the majority of the EU’s 27 member states but in a vote early this month, the opposition was not enough to block them – which would have required at least 15 states representing 65 percent of the bloc’s population.The EU launched the probe in a bid to protect its automobile industry, a major player that provides jobs to around 14 million people.France, which pushed for the investigation, welcomed the decision.”The European Union is taking a crucial decision to protect and defend our trade interests, at a time when our car industry needs our support more than ever,” French Finance Antoine Armand said in a statement.But Europe’s bigger carmakers, including German auto titan Volkswagen, have criticised the EU’s approach and have urged Brussels to resolve the issue through talks.The extra tariffs are “a step backwards for free global trade and thus for prosperity, job preservation and growth in Europe,” the German Association of the Automotive Industry’s president Hildegard Mueller said on Tuesday after the announcement.Volkswagen, which has been hit hard by rising competition in China, has previously said the tariffs would not improve the competitiveness of the European automotive industry.That warning came weeks before the ailing giant announced plans on Monday to close at least three factories in Germany and cull tens of thousands of jobs.- Retaliatory moves -Talks continue between the EU and China and the duties can be lifted if they reach a satisfactory agreement, but officials on both sides have pointed to differences.Discussions have been focused on minimum prices that would replace the duties and force carmakers in China to sell vehicles at a certain cost to offset subsidies.”We remain open to a possible alternative solution that would be effective in addressing the problems identified and WTO-compatible,” Dombrovskis said, referring to the World Trade Organization.The Chinese Chamber of Commerce to the EU urged Brussels and Beijing “to accelerate talks on establishing minimum prices and, ultimately, to eliminate these tariffs”.The EU however faces China’s retaliation. China already said on October 8 it would impose provisional tariffs on brandy imported from the EU.Beijing has also launched probes into EU subsidies of some dairy and pork products imported into China.Trade tensions between China and the EU are not limited to electric cars, with Brussels also investigating Chinese subsidies for solar panels and wind turbines.The EU is not alone in levying heavy tariffs on Chinese electric cars.Canada and the United States have in recent months imposed much higher tariffs of 100 percent on Chinese electric car imports.burs-raz/yad

Global stock markets diverged Tuesday as many investors sat on their hands ahead of a slew of US economic data releases and tech earnings.In New York, the Nasdaq shot to a fresh record while the Dow pulled back. Bourses closed mostly lower in Europe.Shares of Google parent Alphabet rose in after-hours trading following its earnings report, which will be succeeded later this week by releases from Apple, Microsoft and others. “Tech stocks are catching a bid,” said Art Hogan of B. Riley Wealth Management, adding that there had been “more good news than bad” Tuesday.Hogan pointed to another decline in oil prices as supportive for stock prices, and noted that US Treasury bond yields were stable.The Conference Board’s consumer confidence index jumped sharply to 108.7 in October, up from a revised 99.2 last month, another positive for stocks.The US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday. The closely watched monthly labor market report is due Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of the Federal Reserve’s interest rate policy.Yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, suggesting that some market participants are increasingly counting on more limited rate cuts from the Federal Reserve.Among individual companies, Boeing climbed 1.5 percent after reporting that its stock offering was over-subscribed. The London, Paris and Frankfurt markets all closed lower Tuesday while Asian markets ended mixed. London shed 0.8 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax raises on businesses. Adidas shares were up almost 4 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices initially recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve, but then resumed their recent slide on expectations of a coming over-supply.  In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.- Key figures around 2040 GMT -New York – Dow: DOWN 0.4 percent at 42,233.05 (close)New York – S&P 500: UP 0.2 percent at 5,832.92 (close) New York – Nasdaq Composite: UP 0.8 percent at 18,712.75 (close) London – FTSE 100: DOWN 0.8 percent at 8,219.61 (close)Paris – CAC 40: DOWN 0.6 percent at 7,511.11 (close)Frankfurt – DAX: DOWN 0.3 at 19,478.07 (close)Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: UP at $1.0816 from $1.0812 on MondayPound/dollar: UP at $1.3010 from $1.2972Dollar/yen: DOWN at 153.57 yen from 153.79 yenEuro/pound: DOWN at 83.13 pence from 83.34 penceBrent North Sea Crude: DOWN 0.4 percent at $71.12 per barrelWest Texas Intermediate: DOWN 0.3 percent at $67.21 per barrel

Global stock markets diverged Tuesday as many investors sat on their hands ahead of a slew of US economic data releases and tech earnings, and as bond yields rose.In midday trading in New York, the Dow was lower, the wider S&P little changed, and the tech-heavy Nasdaq higher. Shares closed mostly lower in Europe.Alphabet reports earnings after the market closes and many investors are awaiting to hear what the Google-parent has to say before taking any bets.”When a mega-cap stock reports earnings, the stock market pays extra attention not only to the report itself, but also to any guidance,” said Patrick O’Hare, an analyst at Briefing.com.In total, five of the “Magnificent Seven” US tech giants will report over the next three days, including Amazon, Apple, Facebook-parent Meta, and Microsoft.On the economic front, the US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday and the closely watched monthly labour market report Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of the Federal Reserve’s interest rate policy.Meanwhile, yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, indicating that some market participants are increasingly counting on more limited rate cuts from the Federal Reserve.The higher rates, which hurt company earnings and deter investors from taking money out of savings accounts to invest in the stock market, could also reflect unease about the deficit spending plans of both candidates in next Tuesday’s presidential elections, said Joe Mazzola, a strategist at Charles Schwab.”The relentless climb in Treasury yields continues and threatens to overshadow any news, good or bad, on the earnings front,” he said. Boeing was up almost two percent after reporting that its stock offering was over-subscribed. The London, Paris and Frankfurt stock markets all closed lower Tuesday while Asian markets ended mixed. London shed 0.8 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses. Adidas shares were up almost 4 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices initially recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve, but then resumed their recent slide on expectations of a coming over-supply.  Bitcoin rose above $72,000 to levels last seen in June and close to its record highs on expectations that Donald Trump, who has sought the support of the crypto-currency world, will win next week’s elections. “Trump’s campaign appears to be building upside momentum, and that’s going down well with the crypto bros,” said David Morrison, analyst at Trade Nation. In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.- Key figures around 1640 GMT -New York – Dow: DOWN 0.2 percent at 42,281.58 pointsNew York – S&P 500: UP 0.1 percent at 5,828.99 New York – Nasdaq Composite: UP 0.4 percent at 18,642.55 London – FTSE 100: DOWN 0.8 percent at 8,219.61 (close)Paris – CAC 40: DOWN 0.6 percent at 7,511.11 (close)Frankfurt – DAX: DOWN 0.3 at 19,478.07 (close)Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: DOWN at $1.0797 from $1.0815 on MondayPound/dollar: UP at $1.2994 from $1.2972Dollar/yen: UP at 153.54 yen from 153.24 yenEuro/pound: DOWN at 83.09 pence from 83.37 penceBrent North Sea Crude: DOWN 0.5 percent at $71.07 per barrelWest Texas Intermediate: DOWN 0.4 percent at $67.12 per barrel

Global stock markets mostly slipped Tuesday ahead of a slew of US economic data releases and tech earnings, and as bond yields rose.The main US stock indexes were slightly lower after the start of trading, giving up their gains from Monday. Shares were also mostly lower in Europe. Yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, indicating that market participants are increasingly counting on more limited rate cuts from the Federal Reserve.The higher rates, which hurt company earnings and deter investors from taking money out of savings accounts to invest in the stock market, could also reflect unease about the deficit spending plans of both candidates in next Tuesday’s presidential elections, said Joe Mazzola, a strategist at Charles Schwab.”The relentless climb in Treasury yields continues and threatens to overshadow any news, good or bad, on the earnings front,” he said. Alphabet reports earnings after the market closes and many investors are awaiting to hear what the Google-parent has to say before taking any bets.”When a mega-cap stock reports earnings, the stock market pays extra attention not only to the report itself, but also to any guidance,” said Patrick O’Hare, an analyst at Briefing.com.In total, five of the “Magnificent Seven” US tech giants will report this week, including Amazon, Apple, Facebook-parent Meta, and Microsoft.On the economic front, the US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday and the closely watched monthly labour market report Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of its Fed’s interest rate policy.Major European stock markets were lower in mid-afternoon trading while Asian markets ended mixed. London shed 0.5 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses. Adidas shares were up more than 2 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve. Crude prices had tumbled at the start of the week on relief that Israel’s weekend strikes on Iran spared the country’s energy infrastructure. Bitcoin rose above $71,000 to levels last seen in June on expectations that Donald Trump, who has sought the support of the crypto-currency world, will win next week’s elections. “Trump’s campaign appears to be building upside momentum, and that’s going down well with the crypto bros,” said David Morrison, analyst at Trade Nation. In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Japanese shares built on the previous day’s gains as cheaper oil and the weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market.- Key figures around 1340 GMT -New York – Dow: DOWN 0.4 percent at 42,212.88 pointsNew York – S&P 500: DOWN 0.4 percent at 5,802.82 New York – Nasdaq Composite: DOWN 0.2 percent at 18,524.18 London – FTSE 100: DOWN 0.5 percent at 8,247.49 Paris – CAC 40: DOWN 0.2 percent at 7,544.29Frankfurt – DAX: DOWN 0.2 at 19,485.94Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: DOWN at $1.0783 from $1.0815 on MondayPound/dollar: DOWN at $1.2970 from $1.2972Dollar/yen: UP at 153.70 yen from 153.24 yenEuro/pound: DOWN at 83.12 pence from 83.37 penceBrent North Sea Crude: UP 0.7 percent at $71.95 per barrelWest Texas Intermediate: UP 0.8 percent at $67.89 per barrel

Global commodity prices should fall to a five-year low next year thanks to a huge oil glut, the World Bank said Tuesday, pointing to oversupply and to flat demand from China.”Next year, the global oil supply is expected to exceed demand by an average of 1.2 million barrels per day,” the Bank announced in its latest report on global commodity markets, adding that this scale of oversupply has been exceeded only twice before, in 1998 and 2020. The expected oil glut “is so large that it is likely to limit the price effects even of a wider conflict in the Middle East,” the Bank said. It blamed the expected oversupply partly on a “major shift” underway in China, where demand for oil has flatlined on the back of rising electric vehicle sales, demand for trucks running on liquified natural gas (LNG), and a slowdown in industrial production. The Bank said it also expects several countries not in the Organization of Petroleum Exporting Countries or its allies (OPEC+) “to ramp up oil production,” fueling the oversupply and helping to push down global commodity prices by almost 10 percent by the end of 2026.But despite the sharp decline, overall commodity prices will likely remain around 30 percent above their level in the five years before the Covid-19 pandemic. “Falling commodity prices and better supply conditions can provide a buffer against geopolitical shocks,” World Bank chief economist Indermit Gill said in a statement. “But they will do little to alleviate the pain of high food prices in developing countries, where food-price inflation is double the norm in advanced economies,” he added.The World Bank expects food prices to fall by nine percent this year, and by an additional four percent in 2025, leaving them stuck around 25 percent above the level they were at between 2015 and 2019. Meanwhile, energy prices are predicted to drop by six percent next year, and by a further two percent in 2026.

Most major global stock markets rose on Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.Oil prices rebounded after a sharp fall the previous day on relief that Israel’s strikes on Iran spared the country’s energy infrastructure.Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labour market report, which will indicate the health of the world’s largest economy.Investors are also eyeing the earnings reports of five of the “Magnificent Seven” US tech giants due this week, including Google-parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft.”Although any market focus on earnings will rapidly be diverted to next week’s presidential election and Federal Reserve meeting,” said Danni Hewson, head of financial analysis at AJ Bell.Major European stock markets were in the green in late morning trading while Asian markets ended mixed. London edged up around 0.1 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses.Shares in banking giant HSBC rose around four percent, leading gains on London’s FTSE 100, after it reported a strong set of earnings that beat profit expectations. Meanwhile, shares in British oil and gas giant BP dropped one percent after the company reported a slump in profits on weak oil trading and refining margins, despite beating analyst expectations.In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Japanese shares built on the previous day’s gains as cheaper oil and the weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market.”Beijing hopes this tool will prop up market sentiment,” said Stephen Innes, analyst at SPI Asset Management.”China’s economic engine has been sputtering with soft demand and lacklustre growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing,” he added.- Key figures around 1050 GMT -London – FTSE 100: UP 0.1 percent at 8,296.06 pointsParis – CAC 40: UP 0.5 percent at 7,593.27Frankfurt – DAX: UP 0.4 at 19,599.06Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)New York – Dow: UP 0.7 percent at 42,387.57 (close)Euro/dollar: DOWN at $1.0808 from $1.0815 on MondayPound/dollar: UP at $1.2983 from $1.2972Dollar/yen: UP at 153.37 yen from 153.24 yenEuro/pound: DOWN at 83.27 pence from 83.37 penceBrent North Sea Crude: UP 1.0 percent at $71.70 per barrelWest Texas Intermediate: UP 1.1 percent at $68.06 per barrel

Asian markets fluctuated in volatile trade Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.Oil prices steadied following sharp falls Monday on relief that Israel’s strikes on Iran spared the country’s energy infrastructure and that the risk of escalation in the Middle East had eased.Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labour market report, ahead of the Federal Reserve’s next rate decision just after the US presidential election.Futures traders currently overwhelmingly expect a 25 basis points cut, according to CME FedWatch.Investors are also eyeing the earnings reports of five of the “Magificent Seven” tech giants due this week, including Google parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft.Asian markets fluctuated with Tokyo, Hong Kong, Sydney, Seoul and Kuala Lumpur in the green, while Shanghai, Singapore, Taipei, Bangkok and Manila retreated.London, Frankfurt and Paris all rose in early European trade.Japanese shares built on the previous day’s strong gains as cheaper oil and the weaker yen boosted the market despite the political uncertainty following Sunday’s general election which left the ruling coalition short of a majority.Investors are also awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.”Although BoJ monetary policy will not be directly affected by the political machinations underway to find a governing coalition in Tokyo, it is likely that the next government will need to scale up fiscal spending,” said Alvin Tan of RBC Capital Markets.”In this vein, there could be increased pressure on the BoJ to go slow on policy tightening.”Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support the Chinese economy, which has struggled to recover from the pandemic with growth dragged down a debt crisis in the property sector.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market, with about 2.9 trillion yuan ($407 billion) in loans set to expire in November-December.”With the clock ticking, Beijing hopes this tool will prop up market sentiment and counter any looming liquidity crunch,” said Stephen Innes, analyst at SPI Asset Management.”The timing here isn’t just tactical; it’s essential. China’s economic engine has been sputtering with soft demand and lacklustre growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing,” Innes said.Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)London – FTSE 100: UP 0.2 percent at 8,305.83Euro/dollar: DOWN at $1.0812 from $1.0815 at 2040 GMT MondayPound/dollar: UP at $1.2973 from $1.2972Dollar/yen: UP at 153.25 yen from 153.24 yenEuro/pound: DOWN at 83.34 pence from 83.37 penceBrent North Sea Crude: UP 0.3 percent at $71.63 per barrelWest Texas Intermediate: UP 0.2 percent at $67.57 per barrelNew York – Dow: UP 0.7 percent at 42,387.57 (close)

Banking giant HSBC said Tuesday that pre-tax profit in the third quarter rose 10 percent year-on-year, citing revenue growth in two of its divisions, days after the lender announced an organisational overhaul.The rise in pre-tax profit to $8.5 billion reflected a strong performance in its wealth management division as well as higher revenues in global banking and markets, HSBC said in an earnings release.The London-headquartered bank last week announced a major shakeup under new chief executive Georges Elhedery, who assumed his role in September.”We delivered another good quarter, which shows that our strategy is working,” Elhedery said in a statement Tuesday. HSBC on Tuesday also upped total distribution this year to $18.4 billion, and announced a fresh round of share buybacks of “up to $3 billion” — the latest in a series of moves to distribute capital to its investors.Third-quarter revenue increased by five percent on-year to $17 billion, while operating expenses during the same period rose two percent on-year to $8.1 billion.The sale of HSBC’s Argentina business, first revealed in April, is expected to be completed in the fourth quarter of this year, the bank added.- Structural overhaul -Last week, HSBC said it would simplify its structure and split into four distinct parts starting next year: Hong Kong, UK, “corporate and institutional banking” plus “international wealth and premier banking”.The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting the European and US operations under one roof.Chief risk officer Pam Kaur will take over as chief financial officer from January 1 — the first woman in the role in the bank’s 160-year history.The changes are “aimed at increasing focus on leadership and market share in the areas where we have clear competitive advantages, creating a simpler organisation with clarity of accountability and faster decision-making, and reducing the duplication of processes”, HSBC said on Tuesday.Elhedery said in an internal memo that “there will inevitably be a reduction in duplicated roles, particularly at senior levels” due to the restructuring, according to Bloomberg News. More details about the reorganisation will be announced in February along with its full-year results, HSBC said.HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.The bank said it will continue to monitor the impact of China’s package of stimulus measures announced last month.”These measures resulted in elevated volatility at the end of (the third quarter), which resulted in an increase in client activity, notably in Wealth, Equities, and Global Foreign Exchange in Hong Kong,” it said.The lender this month became a direct participant in China’s cross-border interbank payment system, or CIPS.HSBC shares in Hong Kong have risen by around 11 percent since the start of the year.The bank, which straddles East and West as Europe’s biggest lender, has come under pressure as US-China tensions rachet up.Major shareholder Ping An last year called on HSBC to spin off its Asia assets but the proposal was voted down.

Asian markets mostly rose Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.Oil prices steadied following sharp falls Monday on relief that Israel’s strikes on Iran spared the country’s energy infrastructure and that the risk of escalation in the Middle East had eased.Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.  The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labour market report, ahead of the Federal Reserve’s next rate decision just after the US presidential election.Investors are also eyeing the earnings reports of major tech companies this week including Google parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft. Asia largely took its lead from Wall Street with Tokyo, Hong Kong, Shanghai, Sydney, Kuala Lumpur and Jakarta all higher, while Seoul, Singapore and Taipei retreated.Tokyo added to the previous day’s strong gains as the weaker yen boosted shares despite the political uncertainty following Sunday’s general election which left the ruling coalition short of a majority.Investors are also awaiting the Bank of Japan’s rate decision later this week.”Although BoJ monetary policy will not be directly affected by the political machinations underway to find a governing coalition in Tokyo, it is likely that the next government will need to scale up fiscal spending,” said Alvin Tan of RBC Capital Markets.”In this vein, there could be increased pressure on the BoJ to go slow on policy tightening.”Investors are also awaiting a key political meeting in Beijing next week for details of an expected major stimulus plan to support the Chinese economy, which has struggled to recover from the pandemic with growth dragged down a debt crisis in the property sector.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market, with about 2.9 trillion yuan (US$407 billion) in loans set to expire in November-December.”With the clock ticking, Beijing hopes this tool will prop up market sentiment and counter any looming liquidity crunch,” said Stephen Innes, analyst at SPI Asset Management.”The timing here isn’t just tactical; it’s essential. China’s economic engine has been sputtering with soft demand and lacklustre growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing,” Innes said.Key figures around 0345 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 38,819.51 (break)Hong Kong – Hang Seng Index: UP 1.1 percent at 20,834.55Shanghai – Composite: UP 0.1 percent at 3,325.88Euro/dollar: DOWN at $1.0813 from $1.0815 at 2040 GMT MondayPound/dollar: DOWN at $1.2970 from $1.2972Dollar/yen: DOWNat 152.95 yen from 153.24 yenEuro/pound: UP at 83.38 pence from 83.37 penceBrent North Sea Crude: UP 0.4 percent at $71.71 per barrelWest Texas Intermediate: UP 0.5 percent at $67.70 per barrelNew York – Dow: UP 0.7 percent at 42,387.57 (close)London – FTSE 100: UP 0.5 percent at 8,285.62 (close)

The administration of President Joe Biden has finalized curbs on US investments in sensitive technologies like semiconductors in China that pose a threat to national security, the Treasury Department said Monday. The new rules, which take effect on January 2 next year, will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology like semiconductors, artificial intelligence (AI), and quantum computing, the Treasury announced in a statement.Investors will also be required to inform the Treasury about investments in some less advanced technologies “that may contribute to the threat to the national security of the United States,” the statement added.This will include investment in legacy semiconductors, a senior administration official told reporters on Monday. “Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications,” Treasury assistant secretary for investment security Paul Rosen said in a statement. “This final rule takes targeted and concrete measures to ensure that US investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” he added.The rules are the result of an executive order signed by Biden last August aimed at restricting certain US investments in sensitive high-tech areas in China, including in Hong Kong and Macau.In response, China’s foreign ministry called the executive order an attempt to “engage in anti-globalization and de-sinicization,” adding that Beijing was “strongly dissatisfied” and reserved the right to safeguard its interests.