Chinese President Xi Jinping on Friday inaugurated a new Macau leader and called for the gambling hub to diversify its economy as the former colony marked 25 years since being returned to China.When the former Portuguese colony reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by Beijing as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.Xi on Friday touted Macau’s accomplishments under Chinese rule, including its international appeal and a per capita GDP that ranks among the world’s highest.”Macau’s splendid achievements since its return to the motherland is proof to the world that ‘One Country, Two Systems’ has a clear systemic advantage and strong vitality,” Xi said in a speech at the inauguration.That framework “must be adhered to over the long term,” he said.Following its handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.But it is now under orders from Beijing to diversify its economy — and the city’s leaders have suggested industries such as financial services, technology and Chinese medicine as new sources of growth.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.- New leader -Anniversary celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.Sam served as president of Macau’s apex court since handover and was the sole candidate in October’s leadership race, receiving 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old is Macau’s first post-handover leader to be born on the mainland and not to have a background in business.He replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.The Chinese president on Friday emphasised the need for a diversified economy as he laid out “four hopes” for Sam’s administration.Macau must “improve its planning for industrial development, and step up policy support and financial investment to cultivate internationally competitive new industries,” Xi said.He highlighted the importance of Hengqin Island, a landmass adjacent to Macau and three times its size, which was partly leased by Beijing to Macau to boost its land supply for non-gaming development.”The central government decided to develop Hengqin with the goal of fostering Macau’s development of a diversified economy and to facilitate the living and employment of Macau residents,” Xi said.”There can be no development of industries and projects that do not align with this positioning.”He also urged Macau to bring in talents to improve local governance, expand international ties and to “steadfastly uphold national security and Macau’s stability”.Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.

Equities fluctuated Friday and the dollar maintained its gains against its peers as investors assessed the fallout from the Federal Reserve’s outlook for interest rate cuts and possible impact of Donald Trump’s presidency on the economy.Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank’s more hawkish tilt and the Bank of Japan’s refusal to tighten monetary policy.Traders are now awaiting the release later in the day of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead, having squandered an early bounce from Wednesday’s plunge that was sparked by the Fed’s changed rate forecast, with sentiment weighed by a jump in Treasury yields to their highest level since May.Asia also struggled to recover from the previous day’s losses.Tokyo, Shanghai, Manila and Jakarta edged up, but Hong Kong, Sydney, Singapore, Seoul, Wellington and Taipei sank.US monetary policymakers on Wednesday cut rates as expected, but their closely watched “dot pot” guidance on future moves showed they saw two reductions next year, compared with four previously targeted.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed will keep borrowing costs higher for longer.Meanwhile, swaps markets are pricing in less than two for all of 2025.Fed boss Jerome Powell acknowledged Wednesday that Trump’s economic plans, including tariff hikes, tax cuts and mass deportations, have been a consideration as policymakers weigh their rate cut estimates.”Some did identify policy uncertainty as one of the reasons for their writing down more uncertainty around inflation,” he said after the Fed’s announcement Wednesday. Investors are keeping a watch on developments in Washington after the House of Representatives rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash on Friday night and cease operations starting this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.But it was sunk by Republican debt hawks, dealing a blow to their leader and his incoming “efficiency czar” Elon Musk, who had put the package forward after sabotaging a bipartisan one amid complaints about items in the text allegedly ballooning its overall cost.The dollar held on to its latest gains against its major peers, sitting at a five-month high near 158 yen, with some observers suggesting Japanese officials could be eyeing a possible intervention in currency markets.The greenback was also at a two-year high against the euro.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 38,889.95 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,709.82Shanghai – Composite: UP 0.1 percent at 3,372.82Euro/dollar: UP at $1.0365 from $1.0364 on ThursdayPound/dollar: DOWN at $1.2493 from $1.2496Dollar/yen: UP at 157.40 yen from 157.35 yen Euro/pound: UP at 82.97 pence from 82.91 penceWest Texas Intermediate: DOWN 0.3 percent at $69.15 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.60 per barrelNew York – Dow: UP less than 0.1 percent at 42,342.24 (close)London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) 

Chinese President Xi Jinping on Friday presided over the inauguration of new Macau leader Sam Hou-fai, capping off a three-day visit as the former Portuguese colony marks 25 years since being returned to China.Sam, who served as president of Macau’s apex court since the 1999 handover, was the sole candidate in October’s leadership race and received 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old Zhongshan, China native is Macau’s first post-handover leader to be born in mainland China and not have a background in business.When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by China as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.After the handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.Celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam, Macau government ministers and some visiting Chinese officials in attendance.Sam replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.Speaking at a Thursday banquet, Xi acknowledged Ho’s efforts and said Macau “gained new achievements in appropriate economic diversification” under his leadership.The Chinese leader has lauded Macau’s “world-recognised success” in implementing the “One Country, Two Systems” framework and said the city had a bright future.”Macau is a pearl in the nation’s palm, and I have always kept in my thoughts its development and the welfare of all its people,” Xi said at the start of his visit on Wednesday.Security was tight around the city, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.- Casino hub -Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.Under orders from Beijing to diversify the economy, Macau leaders have suggested industries such as financial services, technology and Chinese medicine as new economic drivers.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.Xi on Thursday visited the Macau University of Science and Technology and was “briefed on the development of two state-level key laboratories” that involved Chinese medicine and planetary science, according to state news agency Xinhua.He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.