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Major stock markets in Europe and Asia mostly fell along with the dollar Friday as focus returned to trade deals and the AI sector at the end of a week dominated by big swings for oil prices.Taiwan vowed to remain the world’s “most important” maker of chips for artificial intelligence after reaching a trade deal with the United States that will reduce tariffs on the island’s shipments and increase Taiwanese investment on US soil.It comes one day after Taiwanese chipmaking titan TSMC posted a jump in profits, bolstering confidence that massive AI investments will pay off.”The surge in demand for AI products manufactured by TSMC has pricked up the ears of the US administration,” said Susannah Streeter, chief investment strategist at Wealth Club.”The AI juggernaut clearly has further to run, with demand for AI chips seemingly insatiable for now,” she added. Taipei’s stock market closed up two percent Friday, while shares in TSMC advanced three percent.On Thursday, Wall Street’s tech-rich Nasdaq index had piled on more than one percent early in the session thanks to gains among leading chip companies. But later in the day there was “kind of a roll-back in the megacap stock and semiconductors”, said Briefing.com analyst Patrick O’Hare.That followed remarks from US Commerce Secretary Howard Lutnick indicating that semiconductor companies that do not build plants in the United States could face 100 percent tariffs, though the three main Wall Street indices finished moderately higher.Elsewhere on the international trade front, Canada’s Prime Minister Mark Carney and Chinese President Xi Jinping agreed Friday on a raft of measures at the first meeting between the countries’ leaders in Beijing in eight years.Carney hailed a “landmark deal” under a “new strategic partnership”, turning the page on years of diplomatic spats, retaliatory arrests of each country’s citizens and tariff disputes.In commodities trading, oil prices rebounded after shedding five percent Thursday as US President Donald Trump stepped back from military action in crude producer Iran.- Key figures at around 1115 GMT -London – FTSE 100: UP 0.1 percent at 10,248.80 pointsFrankfurt – DAX: DOWN 0.2 percent at 25,305.75Paris – CAC 40: DOWN 0.5 percent at 8,271.69Tokyo – Nikkei 225: DOWN 0.3 percent at 53,936.17 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 26,844.96 (close)Shanghai – Composite: DOWN 0.3 percent at 4,101.91 (close)New York – Dow: UP 0.6 percent at 49,442.44 (close) Euro/dollar: UP at $1.1614 from $1.1605 on ThursdayPound/dollar: UP at $1.3406 from $1.3377Dollar/yen: DOWN at 158.10 yen from 158.63 yenEuro/pound: DOWN 86.64 from 86.75 penceBrent North Sea Crude: UP 1.1 percent at $64.48 per barrelWest Texas Intermediate: UP 1.2 percent at $59.75 per barrel

Asian markets were mixed Friday after Taiwanese chipmaking titan TSMC posted a big profit jump, bolstering confidence in the artificial intelligence sector as the United States struck a trade deal with the self-ruled island.It came after Wall Street rebounded following two down days, while oil steadied as President Donald Trump stepped back from military action in Iran.Taipei stocks surged two percent after the government agreed with Washington to boost Taiwanese chipmaking investments in the United States, which will cut tariffs.Taiwan will remain the world’s “most important” producer of the advanced chips that power AI tools, the island’s Economic Affairs Minister Kung Ming-hsin said.Some market-watchers fear the bubble of excitement around AI, which has pushed global markets to record highs, could burst and cause a stock rout.But TSMC, the world’s biggest contract maker of chips, announced Thursday a forecast-busting net profit for the fourth quarter — seen as a sign of sustained global demand for AI technology.The company’s shares jumped 4.4 percent on Wall Street, and rose three percent Friday in Taipei.Analyst Gavin Friend said TSMC’s strong annual capital expenditure forecast in particular would reassure those concerned over how long the AI boom can last.”Increasingly, investors have been questioning the extent of the capex drive into data centres,” he told the National Australia Bank’s Morning Call podcast.”I think the most important thing — and they (TSMC) pretty much exceeded on everything — was the upbeat outlook on things like capex, expected to be significantly higher over the next three years,” he said.”That’s given AI and tech stocks a much-needed shot in the arm.”- Oil steady -The news spurred US markets, with the tech-rich Nasdaq piling on more than one percent early in the session behind large gains among leading chip firms.But later in the day there was “kind of a roll-back in the megacap stock and semiconductors”, said Briefing.com analyst Patrick O’Hare.This weakening came after US Commerce Secretary Howard Lutnick indicated that semiconductor companies that do not build in the United States could face 100 percent tariffs.In Asia, traders were watching Tokyo ahead of a week that brings a Bank of Japan policy decision and Prime Minister Sanae Takaichi’s expected snap election announcement.The yen has softened against the dollar on reports that the Bank of Japan will keep its monetary policy unchanged, said Kyle Rodda, senior market analyst at Capital.com.That “adds to downside pressures on the currency, with a looming election, called to gain a mandate for very expansionary fiscal policy, also a critical headwind”, Rodda said.Traders are alert to the possibility of a government intervention to prop up the yen’s value, Rodda added.Tokyo and Shanghai closed 0.3 percent down, while Hong Kong, Manila and Kuala Lumpur also posted losses.Sydney, Wellington, Mumbai, Jakarta, Bangkok and Singapore were all up, and tech highflier Seoul gained 0.9 percent.Oil prices continued to steady as Washington distanced itself from military intervention in Iran.The United States on Thursday said Iran halted 800 executions of protesters under pressure from Trump, after Gulf allies appeared to pull him back from military action over Tehran’s deadly crackdown on demonstrations.- Key figures at around 0700 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 53,936.17 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 26,776.06Shanghai – Composite: DOWN 0.3 percent at 4,101.91 (close)Euro/dollar: UP at $1.1610 from $1.1605 on ThursdayPound/dollar: UP at $1.3382 from $1.3377Dollar/yen: DOWN at 158.34 yen from 158.63 yenEuro/pound: FLAT at 86.75 penceWest Texas Intermediate: UP 0.3 percent at $59.36 per barrelBrent North Sea Crude: UP 0.2 percent at $63.86 per barrelNew York – Dow: UP 0.6 percent at 49,442.44 (close) London – FTSE 100: UP 0.5 percent at 10,238.94 (close)

Taiwan vowed Friday to remain the world’s “most important” AI chipmaker, after reaching a trade deal with the United States that will reduce tariffs on the island’s shipments and increase Taiwanese investment on US soil.Taiwan is a powerhouse in producing chips — a critical component in the global economy — but the United States wants more of the technology made in America.The agreement “will drive a massive reshoring of America’s semiconductor sector,” the US Commerce Department said.Under the deal, Washington will lower tariffs on Taiwanese goods to 15 percent, down from a 20 percent “reciprocal” rate meant to address US trade deficits and practices it deems unfair.Taiwanese Premier Cho Jung-tai praised negotiators Friday for “delivering a well-executed home run” following months of talks.”These results underscore that the progress achieved so far has been hard-won,” Cho said.Taiwan’s dominance of the chip industry has long been seen as a “silicon shield” protecting it from an invasion or blockade by China — which claims the island is part of its sovereign territory — and an incentive for the United States to defend it.But the threat of a Chinese attack has fuelled concerns about potential disruptions to global supply chains, increasing pressure for more chip production beyond Taiwan’s shores.”Based on current planning, Taiwan will still remain the world’s most important producer of AI semiconductors, not only for Taiwanese companies, but globally,” Taiwanese Economic Affairs Minister Kung Ming-hsin assured reporters on Friday.Production capacity for the advanced chips that power artificial intelligence systems will be split about 85-15 between Taiwan and the United States by 2030 and 80-20 by 2036, he projected.China’s foreign ministry said it “resolutely opposes” the deal. – ‘New, direct investments’ -The deal will need to be approved by Taiwan’s opposition-controlled parliament where lawmakers have expressed concern about the potential for Taiwan to lose its chip dominance.Cheng Li-wun, chairperson of the Kuomintang party which advocates closer ties with Beijing, criticised the deal.She said that increasing Taiwanese investment in US chip production capacity risked “hollowing out” the island’s economy.Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15 percent, while generic pharmaceuticals and certain natural resources will face no “reciprocal” duties, the US Commerce Department said.Meanwhile, Taiwanese chip and tech businesses are set to make “new, direct investments totalling at least $250 billion” in the United States to build and expand capacity in areas like advanced semiconductors and AI, the department said.Taiwan will also provide “credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises,” it said, adding that this would support the growth of the US semiconductor supply chain.Taiwan’s government said the new tariff will not stack on top of existing duties, which had been a major concern for local industries.”Of course it’s good that the reciprocal tariff has been lowered to 15 percent — at least it puts us on par with our main competitors South Korea and Japan,” said Chris Wu, sales director for Taiwanese machine tool maker Litz Hitech Corp.But, given the company’s single-digit profit margins, “there is no way we can absorb the tariff” for US customers, he said.- TSMC -More than half of Taiwan’s exports to the United States are information and communications technology products — including semiconductors.”The objective is to bring 40 percent of Taiwan’s entire supply chain and production, to domestically bring it into America,” US Commerce Secretary Howard Lutnick told CNBC.”We’re going to bring it all over, so we become self-sufficient in the capacity of building semiconductors,” he added.The announcement did not mention names, but the deal has key implications for Taiwanese chipmaking titan TSMC, which last year pledged to spend an additional $100 billion on US plants.Frenzied demand for AI technology has sent profits skyrocketing for the company, the world’s biggest contract maker of chips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware.”As a semiconductor foundry serving customers worldwide, we welcome the prospect of robust trade agreements between the United States and Taiwan,” TSMC said in a statement Friday.”Strengthened trade relations are essential for advancing future technologies and ensuring a resilient semiconductor supply chain.”Lutnick said TSMC has bought land and could expand in Arizona as part of the deal.”They just bought hundreds of acres adjacent to their property. Now I’m going to let them go through it with their board and give them time,” he told CNBC.Taiwanese producers who invest in the United States will be treated more favorably when it comes to future semiconductor duties, the US Commerce Department said.A day prior, US officials held off imposing wider chip tariffs, instead announcing a 25 percent duty on certain semiconductors meant to be shipped abroad — a key step in allowing US chip giant Nvidia to sell AI chips to China.

Hundreds of people dragged away suitcases, computer monitors, pets and furniture as they fled a suspected Cambodian cyberfraud centre, after the country’s most wanted alleged scam kingpin was arrested and deported.Boarding tuk-tuks, Lexus SUVs and tourist coaches, an exodus departed Amber Casino in the coastal city of Sihanoukville, one of the illicit trade’s most notorious hubs.”Cambodia is in upheaval,” one Chinese man told AFP. “Nowhere is safe to work anymore,” he said Thursday.Similar scenes played out at alleged scam compounds across Cambodia this week as the government said it was cracking down on the multibillion-dollar industry.But residents said many of the people working inside the tightly secured buildings moved out several days before the arrival of authorities, and an analyst dubbed it “anti-crime theatre”.From hubs across Southeast Asia, scammers lure internet users globally into fake romantic relationships and cryptocurrency investments.Initially largely targeting Chinese speakers, transnational crime groups have expanded operations into multiple languages to steal tens of billions annually from victims around the world.Those conducting the scams are sometimes willing con artists, sometimes trafficked foreign nationals who have been trapped and forced to work under threat of violence.AFP journalists visited several alleged internet scam sites in Sihanoukville, in the wake of the high-profile arrest in Cambodia and extradition to China of internationally sanctioned accused scam boss Chen Zhi.Few of those departing the casinos, hotels and other facilities were willing to speak with AFP, and none were willing to be identified due to concerns for their safety.”Our Chinese company just told us to leave straight away,” said a Bangladeshi man outside Amber Casino.”But we’ll be fine. There are plenty of other job offers,” he added.Studded with casinos and unfinished high-rises, the glitzy resort of Sihanoukville has become a cyberscam hotbed, where thousands of people involved in the black market are believed to operate cons from fortified compounds.Before Chen was indicted last year by US authorities who said his firm Prince Group was a front for a transnational cybercrime network, the Chinese-born businessman ran multiple gambling hotels in Sihanoukville.A 2025 Amnesty International report identified 22 scam locations in the coastal resort, out of a total of 53 in the country.The UN Office on Drugs and Crime estimates global losses to online scams reached up to $37 billion in 2023, and that at least 100,000 people work in the industry in Cambodia alone. – Tipped off -But the Cambodian government claims the lawless era has come to an end, with Prime Minister Hun Manet pledging on Facebook to “eliminate… all the problems related to the crime of cyber scams”.Cambodia’s anti-scam commission says it has raided 118 scam locations and arrested around 5,000 people in the last six months.Following Chen’s deportation to China, the Cambodian government has tightened the screws on some Prince Group affiliates, ordering Prince Bank into liquidation and freezing home sales at several of its luxury properties.In recent months, China has stepped up its pursuit of the scam industry, sweeping up Chen and other key figures from across Southeast Asia to try them on its own soil.But while Cambodia says it is “cracking down”, there are suspicions over the timing.A tuk-tuk driver in Sihanoukville told AFP hundreds of Chinese people left one compound this week before police arrived.”Looks like they were tipped off,” said the 42-year-old, declining to give his name.Mark Taylor, former head of a Cambodia-based anti-trafficking NGO, said the “preemptive shifting of scam centre resources”, including workers, equipment and managers, had been seen ahead of law enforcement sweeps.It was “seemingly the product of collusion”, he added, in a strategy with “dual ends” of boosting the government’s anti-crime credentials while preserving the scamming industry’s ability to survive and adapt.Amnesty has accused the Cambodian government of “deliberately ignoring” rights abuses by cybercrime gangs, which sometimes lure workers with offers of high-paying jobs before holding them against their will.AFP journalists saw several coachloads of Mandarin speakers leaving Sihanoukville on the main highway to the capital Phnom Penh.Multiple people said they “didn’t know” where they were going or what their plans were, but appeared anxious as they anticipated law enforcement closing in.Outside the Amber Casino, holding a fake designer hold-all, the Bangladeshi man fell in with the crowd, saying: “This is about survival now.”

China’s economy likely grew last year at its weakest rate in three decades, outside of the pandemic, according to an AFP survey of analysts ahead of official data on Monday.The world’s second-largest economy struggled to shore up its property market while boosting domestic consumption as Chinese exports to the key US market were crimped by Donald Trump’s tariffs.President Xi Jinping said last month that growth probably met an annual target of “around five percent” in 2025.Economists estimated a median figure of 4.9 percent, in what would be the weakest growth since 1990 when China was under Western sanctions after the deadly Tiananmen Square crackdown.The announcement will be “close enough for officials to declare victory” in meeting the roughly five-percent number, a “political comfort blanket” for Beijing, said Sarah Tan of Moody’s Analytics.But the composition of Chinese growth was “deeply uneven” and official figures “mask the weak sentiment on the ground”, she said.Analysts agreed the main problem was China’s property sector, which has failed to overcome a persistent debt crisis despite rate cuts and loosened restrictions on homebuying.House prices have risen slightly in some large cities but the broader market remains sluggish.”We see no sign of a near-term property sector bottoming out,” analysts from Goldman Sachs said.Without bolder measures like converting housing stock into affordable homes, the industry will remain unstable, analysts warned.- Waning investments -Investments in property and infrastructure likely took a hit last year.Official figures already show that fixed-asset investment slowed 2.6 percent between January and November, its sharpest rate since 2020.Larry Hu and Yuxiao Zhang of Macquarie Group attributed the decline to unannounced “data revisions” by Beijing, adding they did not expect policymakers to respond.Property investment could fall by 12 percent in 2026, they predicted.Tianchen Xu of the Economist Intelligence Unit (EIU) also forecast a real-estate “correction” in 2026, adding: “This will remain a drag on growth.”Meanwhile, constraints on local government finances pushed a wider slowdown in manufacturing and infrastructure investment last year, Goldman Sachs analysts said.China’s outbound foreign direct investment continued to outpace inbound flows in recent quarters, they noted.- Too anxious to spend -Domestic spending is also cause for concern. Retail sales, a key indicator of consumption, grew at their slowest pace in nearly three years in November.Economists have long urged Beijing to move towards a growth model powered by consumption rather than exports and manufacturing.Excess supply remains an issue in manufacturing despite a government campaign last year to combat overcapacity and price cutting.China aims to become a global powerhouse in advanced manufacturing, but that promises little for domestic spending, according to Goldman Sachs analysts.”High-end manufacturing and frontier technology will not generate many jobs or lead to significantly higher incomes for average households, making only a limited contribution to private consumption,” they said.Chinese consumers remain jittery about the wider economy and high unemployment, even though officials have relaxed fiscal policy and subsidised the replacement of household items in a sputtering bid to boost spending.”That anxiety is shaping how households spend,” Tan said, noting that while domestic tourism rebounded to pre-pandemic levels last year, the average outlay per traveller was lower.- Minimal US impact -Robust exports have been a bright spot in the cloudy economic picture despite a bruising trade war with the United States that saw Trump slap steep tariffs on Chinese products.Official data showed Chinese exports to the United States plunged by 20 percent in 2025, but that had little impact on demand for Chinese products elsewhere.China’s trade surplus hit a record $1.2 trillion last year, with officials lauding a “new historical high” filled by other trade partners.”The trade war 2.0 didn’t impact China much, leading Beijing to refrain from implementing major stimulus measures,” said Hu and Zhang of Macquarie.Tan agreed that “exports are propping up the economy while consumers and property developers hang back”.But whether they continue to drive the economy in 2026 remains to be seen.Economists expect Beijing to reveal new stimulus measures — potentially at its annual parliamentary session in March — to address core challenges.”We think there will be a turnaround this year driven by policy support from fiscal and new financing policy tools,” said Erin Xin at HSBC.Xu, of the EIU, predicated that fiscal policy would be “expansionary by historical standards” for China to reach its growth target.Macquarie analysts, however, were more conservative, saying “the size of the stimulus package will largely depend on the magnitude of the export slowdown”.

The United States said Thursday that it has signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies’ investments in America.The agreement, the US Commerce Department said, “will drive a massive reshoring of America’s semiconductor sector.”Under the deal, Washington will lower tariffs on Taiwanese goods to 15 percent, down from a 20 percent “reciprocal” rate meant to address US trade deficits and practices it deems unfair.Taiwanese Premier Cho Jung-tai praised negotiators on Friday for “delivering a well-executed home run”.”These results underscore that the progress achieved so far has been hard-won,” Cho said.Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15 percent, while generic pharmaceuticals and certain natural resources will face no “reciprocal” duties, the US Commerce Department added.Meanwhile, Taiwanese chip and tech businesses are set to make “new, direct investments totalling at least $250 billion” in the United States to build and expand capacity in areas like advanced semiconductors and artificial intelligence, the department said.Taiwan will also provide “credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises,” the department said adding that this would support the growth of the US semiconductor supply chain.Taiwan’s government said the new tariff will not stack on top of existing duties, which had been a major concern for local industries.”Of course it’s good that the reciprocal tariff has been lowered to 15 percent — at least it puts us on par with our main competitors South Korea and Japan,” said Chris Wu, sales director for Taiwanese machine tool maker Litz Hitech Corp. But, given the company’s single-digit profit margins, “there is no way we can absorb the tariff” for US customers, he said. The department’s announcement did not mention names, but the deal has key implications for Taiwanese chipmaking titan TSMC, the world’s biggest contract maker of microchips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware.In an interview with CNBC, Commerce Secretary Howard Lutnick said TSMC has bought land and could expand in Arizona as part of the deal.”They just bought hundreds of acres adjacent to their property. Now I’m going to let them go through it with their board and give them time,” he said.TSMC did not immediately respond to a request for comment.Taiwanese producers who invest in the United States will also be treated more favorably when it comes to future semiconductor duties, the Commerce Department said.Firms building new US chip capacity may import up to 2.5 times their planned capacity without paying sector-specific duties during construction. The quota lowers to 1.5 times once projects are completed.A day prior, US officials held off imposing wider chip tariffs, instead announcing a 25 percent duty on certain semiconductors meant to be shipped abroad — a key step in allowing Nvidia to sell advanced AI chips to China.Ryan Majerus, a former US trade official, told AFP that although chip tariffs are currently narrowly targeted, Washington “signaled there is certainly potential for it to grow.”Majerus, now a partner at law firm King & Spalding, added that the deal had parallels to those with other US partners. The European Union and Japan, for example, both also secured a 15-percent tariff rate.- ‘Self-sufficient’ -“The objective is to bring 40 percent of Taiwan’s entire supply chain and production, to domestically bring it into America,” Lutnick told CNBC.”We’re going to bring it all over, so we become self-sufficient in the capacity of building semiconductors,” he added.The agreement comes after months of negotiations.Taiwanese President Lai Ching-te had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.But US President Donald Trump previously accused Taiwan of stealing the US chip industry, and his administration had made clear it wants more of the critical technology made on American soil.Taiwan’s trade surplus in goods with the United States was around $74 billion in 2024. More than half of its exports to the United States are information and communications technology products — including semiconductors.

Germany’s economy eked out meagre growth in 2025 and dodged a third straight year of recession, data showed Thursday, but Europe’s languishing industrial powerhouse still faces huge challenges to return to long-term health.Battered by an energy shock triggered by the Ukraine war, a manufacturing slump and weakening demand in the key Chinese market, the world’s third-biggest economy shrank in both 2023 and 2024.Despite the shock of last year’s US tariffs blitz, the German economy returned to growth with a modest expansion of 0.2 percent, helped by higher government and household spending, according to statistics agency Destastis. But another year of falling exports weighed on Europe’s top economy, the agency’s chief Ruth Brand said. “Germany’s export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from China,” she said.The preliminary GDP reading was in line with a government forecast. For the final quarter of 2025, the agency estimated that the economy grew 0.2 percent from the third quarter. – Merz under pressure -A return to growth could offer some relief to Chancellor Friedrich Merz, who took power last May vowing to revive the economy but has faced mounting criticism that efforts are moving too slowly.In a speech Wednesday, Merz conceded that “the situation of the German economy at the beginning of 2026 is very critical in many areas”.”Our economy is not competitive enough… Productivity in Germany has been at a consistently low level for ten years. We need to change that,” he said.Merz is betting on a public spending spree on defence and infrastructure to get the economy moving again, with the government’s latest projection in October forecasting growth this year will reach 1.3 percent. But after an initial burst of optimism last year, doubts have set in about whether his governing coalition can get to grips with the problems.The German central bank and several institutes have recently lowered growth forecasts and cautioned the government risks wasting much of the extra money that it borrows and is neglecting much-needed reforms.”A number of measures are still needed to help the economy out of its structural crisis in the long term and make Germany an attractive business location again,” Timo Wollmershaeuser, the Ifo institute’s head of forecasts, told AFP.- ‘Deepest crisis’ since WWII -Last month the Federation of German Industries issued a stark warning that the export-driven economy was suffering its “deepest crisis” since the aftermath of World War II, and that the government was failing to respond “decisively”.Appeals for help have increasingly come from the country’s traditional big industries, from automakers to factory equipment manufacturers and chemical giants, and 2025 was marked by a steady drumbeat of industrial job losses.Output in the manufacturing sector declined for the third straight year in 2025, dropping 1.3 percent from 2024, though the fall was less pronounced than in the previous two years, Destatis said.The key auto and mechanical engineering industries were hit especially hard as they “faced stronger competition on global sales markets”, it said.Adding to the headwinds were US President Donald Trump’s tariffs, an especially heavy blow for Germany as the United States is the country’s top export market.China, long a major market for German exporters, also proved a challenging environment as demand has been weakening due to a prolonged slowdown, while many Chinese firms have emerged as rivals to German heavyweights.Destastis noted it was a “turbulent year” for Germany’s foreign trade, with exports falling 0.3 percent, the third straight year of contraction.Merz has sought to defend his government’s record, pointing to relief measures such as a reduction in industrial energy costs, and said Wednesday that new firms were creating jobs lost in traditional industries.”We are seeing a large number of young companies being founded,” he said.

Oil slid Thursday after US President Donald Trump appeared to dial down threats of imminent military action on Iran, while Asian markets were mixed after Wall Street edged lower the previous day.Oil prices dropped three percent after Trump said Wednesday he would “watch it and see” on possible intervention in the Islamic republic, after he said he was told the killings of protesters there had stopped.Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.Silver plunged as much as seven percent after hitting a record high above $93.75 an ounce, after Trump held off slapping tariffs on critical minerals. Gold also dipped.”The swings in commodities highlight the extreme volatility being fed by President Trump’s mercurial policy style,” said Garfield Reynolds, Markets Live Asia Team Leader at Bloomberg.But “so far the declines for raw materials are still too small to seriously dent this year’s substantial rallies”, he said.”There’s plenty of potential that investors will be itching to pile back into commodities assets given how often they’ve bounced back to fresh highs following occasional corrections in recent weeks,” Reynolds added.Tokyo was down 0.4 percent at the close, cooling off after gains fuelled by speculation that Prime Minister Sanae Takaichi would call an election to capitalise on strong public approval ratings.Takaichi’s ruling party and a coalition partner said Wednesday she intends to dissolve parliament next week for a snap election, seen as a chance to push through her ambitious policy agenda.Sydney, Jakarta, Bangkok, Manila and Singapore posted gains, while Wellington, Mumbai and Kuala Lumpur were down.Shanghai and Hong Kong closed 0.3 percent down and Taipei ended 0.4 percent lower.After the closing bell, Taiwanese chipmaking titan TSMC said net profit for the fourth quarter jumped 35 percent year-on-year, beating forecasts as demand for artificial intelligence skyrockets.London opened on a 0.1 percent high as official data showed Britain’s economy grew more than expected in November.- South Korean won slides -Traders were also watching South Korea — with Seoul up 1.5 percent — as the won’s exchange rate slid towards its weakest level in 16 years.In a rare mention, US Treasury Secretary Scott Bessent said Wednesday that the won’s depreciation was “not in line with Korea’s strong economic fundamentals” and that volatility in the foreign exchange market is “undesirable”.The won gained as much as one percent after Bessent’s comments, which he posted on social media after meeting Seoul’s finance minister Koo Yun-cheol in Washington.”Bessent’s comments can support the won in the near term, but markets may have more influence if they feel the fundamentals and politics are still in a worsening trajectory,” said Brendan McKenna, a strategist at Wells Fargo in New York.The mixed picture in Asia came after Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and an increase in retail sales in November.Analysts noted investor unease about possible US interventions in Iran and Greenland, and Trump’s threats to Federal Reserve autonomy, most recently in the Department of Justice’s criminal probe of the central bank.- Key figures at around 0800 GMT -Tokyo – Nikkei 225: DOWN 0.4 percent at 54,110.50 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 26,924.24 (close)Shanghai – Composite: DOWN 0.3 percent at 4,112.60 (close)West Texas Intermediate: DOWN 3.4 percent at $59.94 per barrelBrent North Sea Crude: DOWN 3.4 percent at $64.23 per barrelEuro/dollar: DOWN at $1.1630 from $1.1647 on WednesdayPound/dollar: FLAT at $1.3433Dollar/yen: FLAT at 158.56 yenEuro/pound: DOWN at 86.58 pence from 86.68 penceNew York – Dow: DOWN 0.1 percent at 49,149.63 points (close)London – UP 0.1 percent at 10,197.73

Taiwanese chipmaking titan TSMC announced Thursday a forecast-busting net profit for the fourth quarter in a sign of sustained global demand for artificial intelligence technology.TSMC is the world’s biggest contract maker of microchips used in everything from Apple phones to Nvidia’s cutting-edge AI hardware.The company has been a massive beneficiary of the AI revolution that has seen tech giants pour many billions of dollars into chips, servers and data centres.Some market-watchers fear the bubble of excitement around AI could burst and cause a stock rout, but TSMC’s results marked the latest high point for the firm.”Our conviction in the multi-year AI mega trend remains strong, and we believe the demand for semiconductors will continue to be very fundamental,” TSMC chairman CC Wei said.”By expanding our global footprint while continuing to invest in Taiwan, TSMC can continue to be the trusted technology and capacity provider of the global logic industry for years to come.”TSMC said net profit for the three months to December increased 35 percent year-on-year to NT$505.7 billion ($16 billion), beating the NT$466.69 billion forecast by analysts surveyed by Bloomberg News.Net revenue for the fourth quarter rose 20.5 percent from a year ago to NT$1.05 trillion, TSMC said, also beating expectations.TSMC — a bellwether for AI investment — expects capital spending to reach as high as $56 billion in 2026. – US pressure -Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.The strong results came after Taipei said it had reached a “general consensus” with the United States on a trade deal that the island hopes will reduce its current 20 percent tariff and shield its semiconductor industry from levies.Taiwan has previously vowed to increase investment in the United States, purchase more US energy and boost defence spending in a bid to head off US President Donald Trump’s sweeping tariffs.The US government launched investigations under Section 232 into semiconductors and chipmaking equipment last year. Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.Trump signed an order Wednesday imposing a 25 percent tariff on semiconductors that are “transshipped through the United States to other foreign countries” — enabling the government to take a cut from chips sold to China.Taiwan has been under pressure to move more chip production to US soil. TSMC pledged last year to invest an additional US$100 billion in the United States.But Trump’s administration has made clear it wants more of the critical technology made in the United States.TSMC’s global expansion along with “new investments, specialty technologies and inflationary costs” were contributing to “cost challenges”, chief financial officer Wendell Huang warned.Despite US pressure and the constant threat of invasion from China, which claims Taiwan is part of its territory, the island plans to keep making the “most advanced” chips on home ground, Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently.

China’s top diplomat said Thursday that a visit by Canadian Prime Minister Mark Carney to Beijing marked a “turning point” in the two countries’ long acrimonious relationship.The first visit by a Canadian leader to Beijing in eight years was a “turning point and symbol for the relationship between two countries”, Chinese Foreign Minister Wang Yi said in a statement, according to a readout.”The leaders of the two countries will hold meetings and talks, which I believe will open up new prospects for bilateral relations,” he added.Carney, who has also said ties between the two sides are shifting, is meeting with top Chinese leaders in Beijing on Thursday, as he pulls away from traditional ally the United States.Following President Donald Trump’s aggressive tariffs on Canadian products, Carney has sought to reduce his country’s economic reliance on its main market, the United States.Video from Chinese state media showed Carney arriving in Beijing for his four-day state visit late Wednesday evening to a red carpet welcome.He is scheduled to meet with Chinese President Xi Jinping and Premier Li Qiang, among other government and business leaders for trade talks.Ties between the two nations withered in 2018, when Canada arrested the daughter of Huawei’s founder on a US warrant, and China’s retaliatory detention of two Canadians on espionage charges.- ‘Right track’ -The two countries imposed tit-for-tat tariffs on each other’s exports in the years that ensued, with China also being accused of interfering in Canada’s elections.Caught in the tariffs crossfire were Chinese electric vehicles along with Canadian canola oil and other agricultural goods.The last time Chinese and Canadian leaders formally met was when then prime minister Justin Trudeau visited Beijing in 2017.But there have been signs of warming ties under Carney, who met Xi on the sidelines of an APEC summit in October.China has shown a willingness to rekindle the relationship, with Xi telling Carney after their meeting that it has “shown a recovery” towards “the right track”.Officials from the two countries have been in talks to lower tariffs, but an agreement has yet to be reached.Beijing, meanwhile, said this week it “attaches high importance” to Carney’s visit.- Pivot from US -Ottawa has traditionally been hawkish towards Beijing, positioning itself in alliance with the United States.But Canada has been hit especially hard by Trump’s steep tariffs on steel, aluminium, vehicles and lumber, prompting a change of heart.In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.But the United States remains far and away its largest market, buying around 75 percent of Canadian exports in 2024, according to Canadian government statistics.While Ottawa has stressed that China is Canada’s second-largest market, it lags far behind, buying less than four percent of Canadian exports in 2024.Carney will be looking to raise that figure, with his office saying the visit aims to “elevate engagement on trade, energy, agriculture, and international security”.