Afp Business Asia

European and Asian stock markets retreated Friday after a slide on Wall Street following weak US jobs data and signals that the Federal Reserve will not cut interest rates this year.Growing worries that valuations, particularly among tech companies, are far too high following this year’s blockbuster rally added to the sense of unease on trading floors.Pressuring markets heading into the weekend pause was also weak Chinese exports data, the ongoing US government shutdown and some poorly-received earnings news, according to analysts.”Global stock indices are heading towards a weekly loss after pockets of volatility have knocked market sentiment,” noted Kathleen Brooks, research director at XTB trading group.”November is seasonally a strong month for stocks… The question now is, can seasonality outweigh valuation concerns and fears about the US economy to deliver more stock market gains this month?”A rollercoaster week looked set to end on a negative note after a report by outplacement firm Challenger, Gray & Christmas showed US layoffs hit the highest level in 22 years last month.The report found that this year has been the worst for layoffs since 2020, when the labour market was decimated by the pandemic.The Nasdaq shed 1.9 percent and S&P 500 more than one percent Thursday, with losses extending to Asia on Friday as Tokyo and Seoul closed down more than one percent.Losses among Europe’s main markets were about half-a-percent around midday.Investors have been forced to use private data as a guide to the state of the world’s biggest economy owing to the longest-running US government shutdown that has closed numerous departments.While the latest jobs figures came a day after news that private hiring had increased, it sparked fresh concerns about the labour market and put pressure on the Fed to cut borrowing costs for a third successive meeting in December.However, comments from central bank officials suggested another reduction was not certain, echoing boss Jerome Powell’s warning last week.Fed Cleveland chief Beth Hammack said she remained “concerned about high inflation”.And Chicago Fed boss Austan Goolsbee told CNBC he was concerned about making decisions during the shutdown without full data.Markets were pressured Friday also by official data showing China’s exports fell in October for the first time in eight months as trade tensions flared in the weeks before Chinese President Xi Jinping and US counterpart Donald Trump reached a detente.London’s top-tier FTSE 100 index was dragged down by heavy losses to share prices of online property business Rightmove and British Airways owner IAG, which dropped 13 and eight percent respectively following earnings updates that undershot market expectations.On the upside, British broadcaster ITV surged 15 percent after announcing it was in preliminary talks to sell its television and streaming business to US-owned rival Sky for £1.6 billion ($2.1 billion).- Key figures at around 1115 GMT -London – FTSE 100: DOWN 0.6 percent at 9,681.94 pointsParis – CAC 40: DOWN 0.4 percent at 7,934.59Frankfurt – DAX: DOWN 0.6 percent at 23,590.60Tokyo – Nikkei 225: DOWN 1.2 percent at 50,276.37 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 26,241.83 (close)Shanghai – Composite: DOWN 0.3 percent at 3,997.56 (close)New York – Dow: DOWN 0.8 percent at 46,912.30 (close)Euro/dollar: UP at $1.1549 from $1.1548 on ThursdayPound/dollar: DOWN at $1.3108 from $1.3135Dollar/yen: UP at 153.30 yen from 153.04 yenEuro/pound: UP at 88.12 pence from 87.91 penceBrent North Sea Crude: UP 1.0 percent at $64.02 per barrelWest Texas Intermediate: UP 1.1 percent at $60.11 per barrelburs-bcp/ajb/lth

Stocks on Friday tracked Wall Street losses propelled by investors weighing weak US jobs data against signals the Federal Reserve won’t again cut interest rates this year.Growing worries that valuations, particularly among tech companies, are far too high following this year’s blockbuster rally added to the sense of unease on trading floors.A rollercoaster week looked set to end on a negative note after a report by outplacement firm Challenger, Gray & Christmas showed layoff US announcements hit the highest level in 22 years last month.The report found that this year has been the worst for layoffs since 2020, when the labour market was decimated by the pandemic.Investors have been forced to use private data as a guide to the state of the world’s biggest economy owing to the longest-running government shutdown that has closed numerous departments.While the latest jobs figures came a day after news that private hiring had increased, it sparked fresh concerns about the labour market and put pressure on the Fed to cut borrowing costs for a third successive meeting in December.However, comments from central bank officials suggested another reduction was not certain, echoing boss Jerome Powell’s warning last week.While stabilising the jobs market is one half of the Fed’s dual mandate, some decision-makers said they were more concerned about the other: keeping a cap on inflation.Fed Cleveland chief Beth Hammack said she remained “concerned about high inflation and believe policy should be leaning against it”.”To me, comparing the size and persistence of our mandate misses and the risks, inflation is the more pressing concern,” she said Thursday in prepared remarks for an event in New York. She called the current setting “barely restrictive”.Chicago Fed boss Austan Goolsbee told CNBC he was concerned about making decisions during the shutdown without the full data, adding that such a move made him “even more uneasy.And their St Louis counterpart said cutting rates would take away the downward pressure that was still needed on inflation.All three main indexes on Wall Street ended down as tech firms, which have been at the forefront of the surge to record highs this year, took the brunt of the selling.The Nasdaq shed 1.9 percent and S&P 500 more than one percentAsia fared barely any better, with Tokyo and Seoul off more than one percent, having recently hit all-time highs.Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Bangkok and Manila were also down, though Wellington and Jakarta rose.London opened lower but there were gains in Paris and Frankfurt.Traders have in recent weeks been taking stock of this year’s rally, which has sent several markets to all-time highs and valuations soaring — chip giant Nvidia last week became the first $5 trillion company.The gains have been fanned by a mind-boggling flood of investment into all things artificial intelligence as well as hopes for US rate cuts and an easing of trade tensions.But there is growing talk — even among some top CEOs — that a bubble has formed and stocks could be in for a pullback or even a correction in which they lose about 10 percent from their recent peaks.”Sentiment remains very fragile indeed, be that as a result of continued jitters over the AI frenzy, those warnings about a pullback from bank CEOs… or potentially just a reflection of the market at large having come a very long way, in a very short space of time,” wrote Pepperstone’s Michael Brown.But he added: “My belief remains that the fundamental bull case is a strong one, with the policy backdrop becoming increasingly loose, earnings growth robust, and the underlying economy resilient.”- Key figures at around 0815 GMT -Tokyo – Nikkei 225: DOWN 1.2 percent at 50,276.37 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 26,241.83 (close)Shanghai – Composite: DOWN 0.3 percent at 3,997.56 (close)London – FTSE 100: DOWN 0.1 percent at 9,724.94 Euro/dollar: DOWN at $1.1533 from $1.1548 on ThursdayPound/dollar: DOWN at $1.3124 from $1.3135Dollar/yen: UP at 153.42 yen from 153.04 yenEuro/pound: DOWN at 87.88 pence from 87.91 penceWest Texas Intermediate: UP 1.1 percent at $60.07 per barrelBrent North Sea Crude: UP 1.0 percent at $64.02 per barrelNew York – Dow: DOWN 0.8 percent at 46,912.30 (close)

US President Donald Trump hosted all five Central Asian leaders on Thursday for the first time, a few months after they held separate summits with Russia’s Vladimir Putin and China’s Xi Jinping. The West has upped its interest with the resource-rich region, where Moscow’s traditional influence has been questioned since the Kremlin’s Ukraine invasion and where China is also a major player.- ‘Incredible importance’ of rare earths -“We’re strengthening our economic partnerships, improving our security cooperation, and expanding our overall bonds,” Trump said before a dinner with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.”One of the key items on our agenda is critical minerals,” Trump said at the so-called “C5+1” meeting.He hailed the countries’ “incredible importance and unbelievable potential.”On social media afterward, Trump announced “an incredible Trade and Economic Deal” with Uzbekistan, which he said included Tashkent investing nearly $35 billion over three years — and more than $100 billion in a decade — in key US sectors such as aviation, critical minerals, agriculture and IT.The United States and European Union are drawn by the region’s huge — but still mostly unexploited — natural resources as they try to diversify their rare earths supplies and reduce dependence on Beijing. Kazakhstan is the world’s largest uranium producer, Uzbekistan has giant gold reserves and Turkmenistan is rich in gas. Mountainous Kyrgyzstan and Tajikistan are also opening up new mineral deposits.  But exploiting these giant reserves remains complicated in the impoverished states with harsh and remote terrains. Almost as large as the EU, but home to only about 75 million people, Central Asia is landlocked and covered by deserts and mountains.It is sandwiched between countries that have strained ties with the West: Russia to the north, China to the east and Iran and Afghanistan to the south.- ‘Sent by heaven’ -Trump’s counterparts did not hesitate in offering praise to their host.”You are the great leader, statesman, sent by heaven to bring (back) common sense and traditions that we all share and value,” gushed Kazakh President Kassym-Jomart Tokayev.Uzbek President Shavkat Mirziyoyev was no less effusive.”Before that, none of the presidents of the United States of America ever treated Central Asia as you do,” he said.”In Uzbekistan, we call you the president of the world.”The five landlocked countries, which gained independence from the Soviet Union in 1991, have put on a united front for diplomacy.China — which shares borders with Kazakhstan, Kyrgyzstan and Tajikistan — has presented itself as a main commercial partner for the region, investing in huge infrastructure projects.The ex-Soviet republics still see Moscow as a strategic partner but have been spooked by its invasion of Ukraine. – Abraham Accords -The biggest announcement of the day was that Kazakhstan will join the Abraham Accords between Israel and mainly Muslim nations, in a largely symbolic move aimed at boosting Trump’s push for Middle East peace.Kazakhstan will be the first country to join since the United Arab Emirates, Bahrain, Morocco and Sudan signed up to normalize ties with Israel in 2020.The central Asian republic has already had diplomatic ties with Israel for decades, but US Vice President JD Vance said Kazakhstan’s decision would nevertheless boost the initiative’s “momentum.”Several states in the Middle East have refused to join the accords so far, most notably Saudi Arabia.- Muffled human rights -For Trump, who has expressed admiration for hardline regimes, economic cooperation with Central Asia has taken precedence over promoting democratic values. While the region has opened up to tourism and foreign investment, rights groups have sounded the alarm over the further deterioration of civil freedoms. “The summit is taking place while all participating governments have increased efforts to stifle dissent, silence the media, and retaliate against critics at home and abroad,” Human Rights Watch said in a statement ahead of the talks. 

US and European stocks slumped Thursday as investors weighed another wave of corporate results, economic data and the likelihood of another interest rate cut.After rising throughout the summer and early part of the fall, US stocks have been choppy in recent weeks as a government shutdown depletes investors of key updates on the economy.”We are in a sense running out of catalysts right now to either support or propel stock prices,” said Sam Stovall of CFRA Research. “The market decided to take whatever profits it can and await additional news that could become encouraging once again.”Investors and policymakers alike have been left in a fog as the government has delayed the release of key data on employment, trade, retail sales and others.”Financial markets find themselves groping around in the dark,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.Chicago Federal Reserve President Austan Goolsbee, who has been supportive of lowering interest rates, told CNBC in an interview that making cuts amidst a lack of data on inflation made him “uneasy.”With key economic data produced by the US government unavailable due to the shutdown, investors have been turning to private data sources.A report by outplacement firm Challenger, Gray & Christmas said the number of layoff announcements in October hit the highest level in 22 years.The report “painted a grim picture of the jobs market,” said Joe Mazzola, head trading and derivatives strategist at Charles Schwab brokerage.The report found that this year has been the worst for layoffs since 2020, when the labor market was decimated by the pandemic, and that hiring has slowed to a 14-year low.However the report “bolstered the case for a Federal Reserve rate cut in December despite Chairman Jerome Powell’s unexpectedly hawkish tone following the Fed meeting last month,” Mazzola added.Investors were also digesting news that a majority of the US Supreme Court was skeptical about the legality behind a swath of Trump’s sweeping tariffs, which also lent support to equities.”Is it good news? Paradoxically, not really,” said Swissquote Bank senior analyst Ipek Ozkardeskaya, who noted that the litigation means heightened uncertainty on international trade dynamics and how much tariff revenue will be available to the US Treasury.Investors were also reacting to the Bank of England’s decision, in a tight vote, to keep its key interest rate unchanged before the UK’s Labor government presents its budget this month.Weighing on European sentiment were some poorly received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Franco-Dutch group Air France-KLM plunged more than 14 percent after it reported a drop in third-quarter net profit.In New York, shares in chip-maker Qualcomm fell 3.6 percent despite a positive earnings report. Tesla shares dropped 3.5 percent ahead of a vote by shareholders on a pay package for Elon Musk that could reach as much as $1 trillion.- Key figures at around 2120 GMT -New York – Dow: DOWN 0.8 percent at 46,912.30 (close)New York – S&P 500: DOWN 1.1 percent at 6,720.32 (close)New York – Nasdaq Composite: DOWN 1.9 percent at 23,053.99 (close)London – FTSE 100: DOWN 0.4 percent at 9,735.78 (close)Paris – CAC 40: DOWN 1.4 percent at 7,964.77 (close)Frankfurt – DAX: DOWN 1.3 percent at 23,734.02 (close)Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)Euro/dollar: UP at $1.1548 from $1.1492 on WednesdayPound/dollar: UP at $1.3135 from $1.3050Dollar/yen: DOWN at 153.04 yen from 154.12 yenEuro/pound: DOWN at 87.91 pence from 88.06 penceBrent North Sea Crude: DOWN 0.2 percent at $63.38 per barrelWest Texas Intermediate: DOWN 0.3 percent at $59.43 per barrelburs-jmb/des

France has urged the European Union to take measures against Asian e-commerce giant Shein, two ministers said Thursday, following an uproar over sales of childlike sex dolls on its French website.The European Commission, which is already investigating Shein for multiple suspected breaches of EU rules, responded that it takes “very seriously” the risks from illegal products on the online platform but did not plan to block access for now.The Chinese-born giant opened its first brick-and-mortar store in Paris on Wednesday with activists up in arms over the dolls and the environmental footprint of the fast fashion brand.While the shop at the BHV department store remains open, the French government has moved to suspend online sales while it verifies the e-platform is complying with French laws, and ordered customs officials to inspect around 200,000 Shein packages.”The European Commission must take action,” Foreign Minister Jean-Noel Barrot told broadcaster France Info.”The commission has conducted certain investigations. It must now accompany them with sanctions,” he said.French junior minister for digital platforms Anne Le Henanff said she and Finance Minister Roland Lescure had sent a letter to the European Commission urging the EU’s executive arm “to use all its powers to shed light on Shein’s actions”.”Platforms that benefit from the European market must adhere to its principles,” she wrote on LinkedIn. “The era of impunity is over.”EU digital spokesperson Thomas Regnier told reporters: “The sale of childlike sex dolls is extremely concerning.””We do not want to see these products being offered to European citizens,” he added.Regnier said there was currently no plan to block access to Shein, and that under the bloc’s Digital Services Act such a step would be a “very last resort” to be taken by the member state hosting the platform — in this case, Ireland, home to Shein’s EU headquarters.Shein’s chief executive Donald Tang made assurances of the company’s “steadfast commitment to comply with all French laws” in a letter sent Wednesday to France’s commerce minister, asking for a meeting to present immediate steps it would take. France ramped up its crackdown on Thursday, with all Shein parcels arriving at Paris-Charles de Gaulle Airport — the key entry point for packages from China — to be inspected by customs officials to bolster investigations into the company. Officials had already found illegal and non-compliant products, including “unauthorised cosmetics, toys dangerous for children, counterfeit goods (and) defective household appliances”, Budget Minister Amelie de Montchalin said on X, after visiting the airport.- ‘Didn’t stop me from coming’ -The EU added Shein in April 2024 to its list of Very Large Online Platforms subject to tougher obligations under the DSA, a powerful law that forces tech giants to do more to protect European consumers online.It has been looking since February this year into risks linked to illegal products on the site, a possible first step towards a formal investigation under the DSA.In parallel, Brussels has launched a probe along with consumer authorities in several EU countries into practices by Shein that infringe on the bloc’s consumer laws, from fake discount deals to misleading product information.Shein risks fines unless it tackles the concerns, which it has said it is working to do.Shein said it was banning all sex dolls on its French website after a fraud watchdog alerted authorities over its sale of sex dolls resembling children.French newspaper Le Parisien posted a picture of a childlike doll measuring around 80 centimetres (30 inches) in height and holding a teddy bear that it said was sold on the website.It cited a product description that made clear it was being sold for sexual purposes.The scandal did not deter hundreds of shoppers from flocking to the upper-end BHV department store in central Paris on Wednesday.”The dolls didn’t stop me from coming,” said Fatima Mriouch, a 48-year-old education worker.Outside, activists distributed a flyer denouncing “suspected forced labour” and “pollution”, and urging passersby to sign a petition against Shein’s presence in the Paris store.Frederic Merlin, director of the SGM company that operates BHV, has said he hopes Shein will help increase footfall at the department store. Nearly 8,000 people visited BHV for the opening on Wednesday, according to store figures. Five other Shein stores are set to open soon in France.burs-ah/sw/phz

US and European stocks sputtered Thursday as investors weighed another wave of corporate results, interest rates, the US government shutdown and a Supreme Court hearing on President Donald Trump’s tariffs.Wall Street’s tech-heavy Nasdaq and broad-based S&P 500 opened lower, retreating from gains in the previous day after fears of an AI bubble shook the markets earlier this week.Asian markets closed higher but Europe’s main indexes were down in afternoon deals.”The week began with doubts cast over the future returns on investments made in Artificial General Intelligence (AGI),” said David Morrison, analyst at Trade Nation.”Not only are the sums involved quite mind-boggling, but there are also concerns over the circularity of much of the investment,” he said.The more than month-long US government shutdown was also in focus, as US officials said they were cutting 10 percent of flight capacity in 40 busy airports. Analyst said jobs data on Wednesday had helped to improve the mood on trading floors.Jobs growth in the US private sector soared past analysts’ expectations in October, payroll firm ADP said, providing one of the few economic indicators in recent weeks as official data has been delayed due to the US government shutdown.Investors were also digesting news that a majority of the US Supreme Court was sceptical about the legality behind a swath of Trump’s sweeping tariffs, which also lent support to equities.”Is it good news? Paradoxically, not really,” said Swissquote Bank senior analyst Ipek Ozkardeskaya.”It brings uncertainty, renewed volatility, potentially more than $100 billion in refunds the US government may owe to other countries according to Bloomberg, and a deeper fiscal deficit,” she said.Investors were also reacting to the Bank of England’s decision, in a tight vote, to keep its key interest rate unchanged before the UK’s Labour government presents its budget this month.Four of the nine governors had voted to lower borrowing costs.A cut would likely have eased pressure on Prime Minister Keir Starmer’s Labour government after finance minister Rachel Reeves on Tuesday paved the way for controversial tax hikes in her November 26 budget.Weighing on European sentiment were some poorly received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Hikma Pharmaceuticals slumped 11 percent on London’s top-tier FTSE 100 index after the company lowered its profit forecast.Franco-Dutch group Air France-KLM plunged more than 13 percent after it reported a drop in third-quarter net profit.In New York, shares in chip-maker Qualcomm fell despite a positive earnings report. Tesla shareholders, meanwhile, were due to decide on a pay package for Elon Musk that could reach as much as $1 trillion.And the European Union on Thursday announced a formal antitrust probe against stock exchange operators Nasdaq and Deutsche Boerse over “possible collusion” involving financial derivatives.- Key figures at around 1330 GMT -New York – Dow: FLAT at 47,325.11 pointsNew York – S&P 500: DOWN 0.1 percent at 6,789.83New York – Nasdaq Composite: DOWN 0.3 percent at 23,431.85London – FTSE 100: DOWN 0.2 percent at 9,762.53Paris – CAC 40: DOWN 0.8 percent at 8,010.21Frankfurt – DAX: DOWN 0.3 percent at 23.968.14Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)Euro/dollar: UP at $1.1528 from $1.1488 on WednesdayPound/dollar: UP at $1.3091 from $1.3048Dollar/yen: DOWN at 153.57 yen from 154.13 yenEuro/pound: DOWN at 88.04 pence from 88.40 penceBrent North Sea Crude: DOWN 0.6 percent at $63.17 per barrelWest Texas Intermediate: DOWN 0.6 percent at $59.25 per barrelburs-bcp-lth/jj

Plying everything from handbags to salt in a cavernous Shanghai exhibition hall, US exporters hit by the trade war with China said Thursday they hope improving bilateral relations will bring much-needed stability.After spending much of this year in a tit-for-tat tariff escalation, the United States and China have agreed to walk back from some punitive measures after a meeting last week between leaders Donald Trump and Xi Jinping.At the annual China International Import Expo (CIIE), US ginseng seller Ming Tao Jiang told AFP multiple rounds of duties imposed since Trump’s first presidential term had “decimated” growers in central Wisconsin state.”Before 2018 we had 200 registered growers in Wisconsin, in Marathon County… after the first and second round of tariff wars, adding insult to injury of Covid, we’re down to 70,” said Jiang, founder of the Marathon Ginseng company.”With the recent agreement between the two governments, I think things are stabilised, we’re looking for a better potential in the future,” Jiang added.The North American variety of the aromatic root ginseng, believed to have medicinal properties in traditional Asian cultures, was one of the first products shipped by the United States to China in the 1780s.US and Chinese authorities have sporadically slapped retaliatory tariffs on each other’s ginseng products since 2018, with Jiang saying his goods currently face a 45 percent import duty in China.”We’re here trying to keep our tradition going for the local economy,” he told AFP.- ‘Hurting everybody’ -Other US exhibitors echoed Jiang’s cautious optimism, as visitors sampled Chinese-style baijiu liquor made from American rice and browsed stalls advertising cornbread mixes and California almonds.Tara Qu is a trade representative in China for Idaho state who on Thursday oversaw the ceremonial signing of a purchase agreement between a Chinese maker of salted duck eggs and dynamite.”I think the tariff decrease can help a little bit,” Qu told AFP, referring to the recent agreement by China and the United States to suspend additional tariffs on each other’s goods.But as Beijing continues to levy a 10 percent blanket tariff on US imports, “we hope there will be a further reduction, so that trade can go back to normal”, Qu said.Qu added that US companies fear that Chinese buyers spooked by the trade war will turn to alternative suppliers from other countries.She pointed to Anderson Northwest, an Idahoan producer of beans and pulses, as a CIIE exhibitor hit especially hard by tariffs this year.”Since the tariffs increased by 20 percent, they haven’t exported any of their products to China,” Qu said.Eric Zheng, president of the American Chamber of Commerce in Shanghai, told AFP: “We certainly hope that there will be more reductions in tariffs, because tariffs are hurting everybody.” “We have a long way to go to lower tariffs on (chamber) members,” Zheng said, noting that Californian wines, for example, are currently subject to over 100 percent in Chinese import duties. Throughout the trade war, “it was very difficult to plan for the long term,” Zheng said.Zheng welcomes planned visits by Trump and Xi to each other’s countries next year.”With those political events in place, I think we’ll see (a) more stable environment, at least in the next year, if not beyond,” Zheng said. “That’s welcome news for us”.

European stock markets dropped Thursday following gains in Asia and on Wall Street as traders reacted to positive US jobs data and mixed earnings.The Bank of England is expected to keep its key interest rate unchanged in a decision due at 1200 GMT, but some analysts are not ruling out a cut before a UK budget next month that is set to feature tax rises.Asian stock markets closed higher following US gains Wednesday, clawing back some of the hefty losses suffered earlier in the week on AI bubble fears.”A reading implying an improved jobs market in the US proved helpful to sentiment on financial markets,” noted AJ Bell investment director Russ Mould.Jobs growth in the US private sector soared past analysts’ expectations in October, payroll firm ADP said Wednesday, while it was one of the few economic indicators to come out in recent weeks owing to the US government shutdown.Private sector employment jumped by 42,000 in October, rebounding from a loss of 29,000 jobs in September.Mould added signs that a majority of the US Supreme Court was sceptical about the legality behind a swath of President Donald Trump’s sweeping tariffs also lent support to equities.Weighing on European sentiment were some poorly-received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Hikma Pharmaceuticals slumped 11 percent on London’s top-tier FTSE 100 index after the company lowered its profit forecast.Legrand, the French maker of electrical products, shed 10 percent after revenue rose less than forecast.Elsewhere, the European Union on Thursday announced a formal antitrust probe against stock exchange operators Nasdaq and Deutsche Boerse over “possible collusion” involving financial derivatives.- Key figures at around 1045 GMT -London – FTSE 100: DOWN 0.3 percent at 9,749.71 pointsParis – CAC 40: DOWN 0.4 percent at 8,042.98Frankfurt – DAX: DOWN 0.1 percent at 24,036.98Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)New York – Dow: UP 0.5 percent at 47,311.00 (close)Euro/dollar: UP at $1.1510 from $1.1488 on WednesdayPound/dollar: UP at $1.3062 from $1.3048Dollar/yen: DOWN at 153.80 yen from 154.13 yenEuro/pound: DOWN at 88.12 pence from 88.40 penceBrent North Sea Crude: UP 0.6 percent at $63.88 per barrelWest Texas Intermediate: UP 0.7 percent at $60.02 per barrelburs-bcp/lth

Asian markets rose on Thursday to claw back some of the previous day’s hefty losses as investors tracked a bounce on Wall Street sparked by jobs data that soothed worries about the US economy.Signs that a majority of the US Supreme Court was sceptical about the legality behind a swath of President Donald Trump’s sweeping tariffs also provided a little support.Trader sentiment crept back after Wednesday’s selloff that came on the back of growing worries that the tech-fuelled AI rally that has characterised markets this year has led to a bubble that could soon pop.The rush for cover — which tracked big losses on Wall Street — hammered some regional giants, including Japanese tech investor SoftBank and South Korean chipmakers Samsung and SK hynix.However, New York investors enjoyed a much happier Wednesday after figures from payrolls firm ADP showed US private sector employment jumped far more than expected last month, having surprisingly fallen the month before.That came as a separate report indicated that activity in the crucial services industry grew far more than estimates suggested.The jobs data release is likely to attract extra attention because it is one of the few economic indicators to come out in recent weeks owing to the US government shutdown.Asia followed suit after Wall Street’s advance, which was also helped by upbeat earnings.Tokyo and Seoul were both well up, although still some way from clawing back all of Wednesday’s losses.Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Manila, Bangkok and Jakarta also rose.London opened on the front foot but Paris and Frankfurt dipped.Still, there is some concern that valuations have run a little too high on the back of the AI frenzy, which has pushed some firms to records — with US chip titan Nvidia topping a $5 trillion valuation.”Valuation concerns have intensified as the (S&P 500) index has climbed higher throughout the year,” said IG market analyst Fabien Yip.”Investors are questioning whether current price levels can be sustained, particularly on stocks boosted by the AI boom if interest rates remain elevated for longer than expected.”Investors were keeping a keen eye on developments in Washington after a majority of Supreme Court justices queried Trump’s ability to impose his tariffs, which have raked in billions of dollars in customs revenue.The nine justices are considering Trump’s use of emergency powers to impose “reciprocal” tariffs on nearly every US trade partner, as well as levies targeting Mexico, Canada and China over their alleged roles in illicit drug flows.Several conservative justices, along with the three liberals, questioned at a hearing on Wednesday whether the International Emergency Economic Powers Act that Trump invoked confers the authority to impose tariffs.”The statute doesn’t use the word tariffs,” said Chief Justice John Roberts, and imposing tariffs is equivalent to taxation, which has always been a “core power of Congress”.The justices sought to clarify whether Congress has to give clear authorisation for policies with significant economic or political consequences.Justice Sonia Sotomayor, a liberal, noted that the power to impose taxes is a “congressional power, not a presidential power”.”You want to say tariffs are not taxes, but that’s exactly what they are,” Sotomayor said.Still, lawyers noted that if the top court finds Trump’s global tariffs illegal, the government can tap other laws to temporarily impose up to 15 percent duties while pursuing pathways for more lasting levies.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)London – FTSE 100: UP 0.1 percent at 9,784.10 Euro/dollar: UP at $1.1510 from $1.1488 on WednesdayPound/dollar: UP at $1.3062 from $1.3048Dollar/yen: DOWN at 153.80 yen from 154.13 yenEuro/pound: DOWN at 88.12 pence from 88.40 penceWest Texas Intermediate: UP 0.5 percent at $59.87 per barrelBrent North Sea Crude: UP 0.4 percent at $63.77 per barrelNew York – Dow: UP 0.5 percent at 47,311.00 (close)

A French-British investigation into alleged bribery at France-based defence giant Thales is examining a contract with Indonesia, an AFP investigation has showed.In November last year, Britain’s Serious Fraud Office (SFO) said it had launched a joint investigation with its French counterparts into “suspected bribery and corruption” at the multinational, which denies any wrongdoing.A 41-year-old management controller, who worked at the company between August 2018 and June 2023, was the whistleblower who alerted the authorities and caused the probe to be opened, according to two sources following the case who requested not to be named because not allowed to speak to the press.The former member of staff, who wishes to remain anonymous and who AFP reached through his lawyer, said he started asking colleagues questions after he noticed suspicious orders on the margins of big air defence deals with Indonesia and Saudi Arabia.He said that in late 2018 he noticed a curious payment order for a service worth £400,000 ($520,000 at today’s rate) on the sidelines of a deal between Thales UK and Indonesia.He said he grew suspicious when someone asked him for a retroactive approval of the order with incoherent documents produced after it was made, and reported this to his superiors.”The only thing I was told was to keep quiet,” he said.He alleged that months later, he noticed another £100,000 transferred to Saudi Arabia, where a contract had also been signed.He said he alerted colleagues in writing and orally, then via an internal complaint platform in 2022.He believes this is why he was fired.- Multiple probes -Thales told AFP the former employee only filed an internal complaint “several hours after being summoned to a meeting towards a possible dismissal for professional incompetence”.A team of in-house auditors led an internal probe and concluded that there were no grounds to his allegations, it said, adding however that it was cooperating with the British and French authorities.Neither the SFO nor the French financial prosecutor’s office wished to comment on an ongoing investigation.One source following the case said the Indonesian contract was being investigated in the joint probe.But no source confirmed or denied that any Saudi contract was also being examined.A judicial source, also wishing to remain anonymous, said the French investigators were looking at an “arms market” in Asia, without saying which country was involved.The French judiciary is looking into at least five other cases of alleged graft involving the defence firm.An investigating magistrate is investigating the sale of submarines to Malaysia in 2002 and could order a trial against parties including the firm.Four other preliminary probes, launched between 2016 and 2023, are looking at alleged corruption in places including Brazil, India and the United Nations. No charges have been pressed against Thales in those investigations.Thales told AFP the probes were ongoing and that it “strictly follows national and international regulation”.