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Vietnam’s parliament approved plans on Wednesday for an $8 billion rail link from its largest northern port city to the border with China, boosting links between the two communist-ruled countries and making trade easier.The new rail line will run through some of Vietnam’s key manufacturing hubs, home to Samsung, Foxconn, Pegatron and other global giants, many of whom rely on a regular flow of components from China.The route will stretch 390 kilometres (240 miles) from the port city of Haiphong to the mountainous city of Lao Cai, which borders China’s Yunnan province, and will also run through the capital Hanoi.Construction of the railway was backed in a vote by 95 percent of parliamentarians in Vietnam’s rubber-stamp National Assembly, an AFP journalist in the chamber said.China will provide some funding through loans for the project, which is expected to cost more than $8 billion. It is one of two railway lines to China that Vietnam plans as part of its “Two Corridors, One Belt” initiative, which connects to Beijing’s Belt and Road global infrastructure programme.A spokesperson for China’s foreign ministry said on Wednesday the two countries were “working to expedite the construction of the connection line” between Lao Cai and the Chinese border city of Hekou.Both sides had “held multiple discussions on advancing railway connectivity”, Guo Jiakun told a regular news briefing but referred reporters to “relevant authorities” for details.The approval comes just over a year after the neighbours pledged during a visit to Vietnam by President Xi Jinping to deepen ties as Beijing sought to counter growing US influence with Hanoi.Vietnam’s transport infrastructure is considered relatively weak, with a road network struggling to keep up with demand and an underdeveloped rail system. The country is an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment.Dan Martin, international business adviser of Dezan Shira & Associates, said the new rail link could help smooth out bumps in international supply chains caused by the current reliance on slow and costly trucks that are “prone to border bottlenecks”.”China supplies much of the raw material that fuels Vietnam’s manufacturing sector, and keeping that pipeline steady is critical,” he told AFP.  “A modern rail link cuts through… inefficiencies, ensuring goods move smoothly whether they’re flowing into Vietnam’s factories or heading to global markets via Haiphong’s port,” he said.- 2030 deadline -Vietnam says a feasibility study for the Haiphong-Lao Cai railway will begin this year and it wants the line finished by 2030, although the country has a history of overruns on major infrastructure projects.The line, spanning nine provinces and cities, will follow roughly the route of an existing rail track built during the French colonial period.Trains can currently run on that rail at just 50 kilometres an hour (30 mph), but Vietnam says the new line will accommodate both passenger and freight cars with speeds of up to 160 kph.Pham Thu Hang, spokesperson for the ministry of foreign affairs, said last week the rail link would “promote economic, trade, investment and tourism cooperation between the two countries as well as in the region”.It comes just three months after Vietnam approved plans for a $67 billion high-speed railway from Hanoi to Ho Chi Minh City, another much-needed boost to infrastructure that is expected to drive growth.That railway, which will stretch more than 1,500 kilometres (930 miles) from the capital in the north to Vietnam’s business hub in the south, will reduce the current journey time by rail from 30 hours to around five.The other line to China, which has not yet been approved by parliament, will connect Hanoi to Lang Son province, which borders China’s Guangxi region, travelling through another area packed with global manufacturing facilities.The two countries signed more than 30 agreements, including a pledge to develop rail links, during Xi’s visit to Hanoi.Vietnam has long pursued a “bamboo diplomacy” approach, striving to stay on good terms with both China and the United States.It shares US concerns about Beijing’s increasing assertiveness in the contested South China Sea but also has close economic ties with China.burs-isk-mjw/je/pbt

Asian markets were mixed Wednesday after President Donald Trump broadened his tariff threats, while traders were also assessing the geopolitical outlook after the first high-level official US-Russia talks since the invasion of Ukraine.Regional investors struggled to pick up the baton after a record close on Wall Street, with the rally in Hong Kong-listed tech stocks suffering a setback following disappointing earnings from Chinese internet giant Baidu.The US president warned Tuesday that he would impose tariffs “in the neighbourhood of 25 percent” on auto imports and a similar amount or higher on semiconductors and pharmaceuticals.The comments widened his trade war, having earlier pledged 25 percent levies on steel and aluminium, and while observers say the threats are likely being used as a negotiating tool, they revived worries about the impact on the global economy.Stefan Angrick and Dave Chia at Moody’s Analytics said: “We expect political and economic realities will force the Trump administration to scale back these measures by this time next year.”While broad-based tariff increases will be reversed, restrictions on Chinese goods will stay in place, as seen in the first trade war.”That said, the situation is fast-moving, and the coming weeks will undoubtedly bring new policy announcements and updates to our forecast.”On Tuesday, China — a key target in Trump’s tariffs policy — told the World Trade Organization that he risked triggering inflation, market distortions and even a global recession.”The world faces a series of tariff shocks,” Li Chenggang, China’s ambassador to the WTO, said, adding that US unilateralism threatened to upend the rules-based multilateral trading system.While all three main indexes on Wall Street rose, with the S&P 500 closing at a record high, Asia struggled to maintain momentum.Singapore, Shanghai, Seoul, Mumbai, Bangkok and Manila rose.But Tokyo fell as auto firms and semiconductor makers were hit by Trump’s tariff announcement, and Taipei was weighed by a sell-off in chip giant TSMC.There were also losses in Sydney, Wellington and Jakarta.Hong Kong was dragged by tech firms after Baidu’s fourth-quarter earnings saw a fall in revenue and a warning of near-term pressures.The sector has helped the Hang Seng Index surge around 15 percent since the turn of the year, spurred by the emergence of Chinese startup DeepSeek’s new chatbot that has upended the AI universe.President Xi Jinping’s meeting with China’s top business leaders this week — including Alibaba co-founder Jack Ma — added to the optimism amid hopes of a fresh boost for the private sector.Traders are keeping tabs on talks between Washington and Moscow after their top diplomats met in Saudi Arabia.The discussions, which excluded Europe and Kyiv, ended with Moscow and Washington agreeing to appoint teams to negotiate an end to the three-year-long Ukraine war.London dipped at the open as data showed UK inflation rose more than expected in January, while Frankfurt rose again, having hit a fresh record Tuesday. Paris also fell.- Key figures around 0815 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 39,164.61 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 22,944.24 (close)Shanghai – Composite: UP 0.8 percent at 3,351.54 (close)London – FTSE 100: DOWN 0.1 percent at 8,759.40 Euro/dollar: UP at $1.0454 from $1.0445 on TuesdayPound/dollar: UP at $1.2621 from $1.2608Dollar/yen: DOWN at 151.67 from 152.09 yenEuro/pound: DOWN at 82.83 pence from 82.85 penceWest Texas Intermediate: UP 0.7 percent at $72.33 per barrelBrent North Sea Crude: UP 0.6 percent at $76.32 per barrelNew York – Dow: FLAT at 44,556.34 (close)

Australian government officials said on Wednesday they had placed a major steelworks into administration as it struggled to repay mounting debts.Special legislation was rushed through the South Australia state parliament that allowed receivers to take control of the Whyalla Steelworks, located 400 kilometres (250 miles) northwest of Adelaide.The site — owned by British billionaire Sanjeev Gupta’s GFG Alliance — is one of only two Australian steelworks and produces 75 percent of Australian structural steel, government figures show.It employs about 1,000 people, according to local media.”The South Australian government has intervened. The steelworks is now in the hands of an administrator, who will stabilise operations and explore a possible sale to a new owner,” South Australian Premier Peter Malinauskas said.”This is a significant step, and one we do not take lightly. But it is a necessary one to secure the long-term future of Whyalla.”He added that “it’s not just the steelworks itself — it’s a vast number of local suppliers, small businesses owned and operated by South Australians, whose debts remain unpaid, whose revenue has evaporated, and whose livelihoods are at stake”.”Only an intervention of this nature will protect the steelworks and its creditors.”GFG had faced pressure to pay back tens of millions of dollars to creditors, including the South Australia government for royalties and water fees, the Sydney Morning Herald reported. GFG Alliance — which purchased the steelworks in 2017 for Aus$700 million (US$445.6 million) — directly employs 1,000 people in Whyalla, which has a population of 22,000, the paper said.Australian Workers’ Union secretary Paul Farrow said the country’s “economic sovereignty” hinged on the Whyalla Steelworks remaining operational.”Without Whyalla, we will be forced to rely on China for long steel. That would be catastrophic,” he said.GFG Alliance did not respond to a request for comment.Australia is a minor global player in steel export markets but is the leading exporter of iron ore, most of it heading to China.

Banking giant HSBC said Wednesday that CEO Georges Elhedery’s plan since October to simplify the company’s structure and geographic setup will yield $1.5 billion in annual cost savings by the end of 2026.Elhedery’s plan for a “simpler, more dynamic, and agile organisation” has shaken up Europe’s largest bank, whose shares in Hong Kong have rallied to an 11-year high.”Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy,” Elhedery said in an earnings statement on Wednesday.”Our strong 2024 performance provides firm financial foundations upon which to build for the future.”The firm said pre-tax profit rose six percent to $32.3 billion in 2024 — beating an estimate of $31.7 billion compiled by Bloomberg.Profit attributable to shareholders edged up two percent to $22.9 billion. The London-headquartered lender also announced a share buy-back of up to $2 billion to be completed by the time it announced this year’s first-quarter results. 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.Shortly after Elhedery became CEO, the lender said it would simplify its structure and split into four parts: 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 its European and US operations.The restructuring “aims to generate approximately $0.3 billion of cost reductions in 2025, with a commitment to an annualised reduction of $1.5 billion in our cost base expected by the end of 2026”, it said Wednesday.HSBC added that it plans to incur costs of $1.8 billion over 2025 and 2026 to deliver the reductions.- Cost-cutting drive -Elhedery said he has “put in place a smaller, core team of exceptionally talented leaders” — but did not specify the scale of the layoffs across the bank.The lender said last month it would wind down parts of its investment banking operations in Europe, the United Kingdom and the Americas.The CEO said on Wednesday that his initiatives included “a comprehensive transformation of (HSBC) operations, modernising our infrastructure, and investing in technology such as AI, generative AI, data and analytics”.The lender considers both Britain and Hong Kong its “home markets”, though the balancing act has come under pressure as relations sour between China and the West. Elhedery’s predecessor Noel Quinn in 2023 fended off a call for HSBC to spin off its Asia assets.The bank projected that China this year will deliver performance “comparable” to its 2024 GDP growth of around five percent, as the nation transforms to a “consumption-led and innovation-focused economic model”.Outlook for interest rates “remains volatile and uncertain” particularly in the medium term, HSBC added.Last year HSBC gained $4.8 billion from disposing its banking business in Canada, while axing its Argentina operations led to a $1 billion loss.Operating expenses grew three percent to $33 billion in 2024. Revenue stayed flat at $65.9 billion.The bank’s Hong Kong-listed shares rose by more than one percent after the results announcement.

The US Senate voted Tuesday to confirm Wall Street billionaire Howard Lutnick as commerce secretary, a key step towards the rollout of President Donald Trump’s “America First” trade agenda, which uses tariffs as a broad negotiation tool.Trump has threatened sweeping levies on US allies and competitors alike, looking to tariffs not only as a way to raise revenue but also pressure other countries to act on US priorities.Lutnick, who was chief executive of financial services firm Cantor Fitzgerald, is a close ally of Trump’s and has been a defender of imposing tariffs on US imports.On Tuesday, he was confirmed by a vote of 51-45. A spokesman for Lutnick told AFP that he has stepped down from Cantor.He takes the helm at a department that advocates for US business interests and oversees an apparatus restricting the export of certain technology — including semiconductors — to adversaries, including China and Russia.The role will place him at the frontier of Washington’s tariff and trade agenda too, working with the US Trade Representative’s office.The Commerce Department is in charge of a nearly $53 billion program involving subsidies to stimulate the US chipmaking sector, which Lutnick earlier called an “excellent downpayment” despite stressing the need to review investments.During his confirmation hearing last month, Lutnick backed sweeping tariffs targeting countries rather than specific products and signaled a hawkish approach to Beijing.”We can use tariffs to create reciprocity, fairness and respect,” he told lawmakers.He also denied that tariffs would cause widespread inflation, despite economists’ concerns that duties could add to consumer costs in the short term and weigh on growth in the longer haul.The commerce secretary has a broad agenda to implement, and negotiations with some of the United States’ biggest trading partners to contend with.Trump has unveiled blanket duties of up to 25 percent on immediate US neighbors Canada and Mexico, threatening to snarl supply chains in key sectors like automobiles and setting off a flurry of negotiations.The levies, which Trump said were imposed over immigration and drug smuggling concerns, are due to take effect in early March after a month-long pause as talks continue.Separately, Trump also announced 25-percent tariffs on steel and aluminum imports from March 12, which officials said would pile atop the hefty rates threatened on Canada and Mexico.Looking ahead, Lutnick has signaled his willingness for broad “reciprocal tariffs” against US trading partners to start as early as April 2.These levies, which Washington said are aimed at correcting “long-standing imbalances” in trade, would be tailored to each country.Officials would consider both the tariffs countries impose on US goods as well as taxes seen as “discriminatory” — such as value-added taxes.

Global stock markets held largely steady on Tuesday as top US and Russian diplomats held their first high-level discussions since Russia invaded Ukraine. The talks, which excluded Europe and Ukraine, ended with Moscow and Washington agreeing to appoint teams to negotiate an end to the Ukraine war.”Donald Trump continues to be the dominant force for financial markets,” said Kathleen Brooks, research director at XTB. “Trump has ripped up the playbook when it comes to dealing with Russia, and the markets are keeping the faith with the US President for now,” she added.While the Dow finished flat, the S&P 500 nudged to a fresh record following a late-afternoon rally.”It was a mostly lackluster day until the final 10 minutes of trading,” said Briefing.com. “There was a positive bias under the index surface even as major indices traded lower, which acted as an upside catalyst and invited more buying in the final moments of the day.”Europe’s main markets were flat or edged higher, with Frankfurt’s DAX index striking another all-time high as elections approach, with investors hoping a ruling coalition better able to act will emerge.”There seems to be a widespread belief that a global recession will not occur and that the trade war is merely a ‘residual risk’,” CMC Markets analyst Konstantin Oldenburger said in a note to clients, pointing out that cash reserves of funds and asset managers have fallen to their lowest levels since 2010.Defense stocks mostly added to gains after having soared the previous day as European leaders held an informal summit to discuss Ukraine and signaled more financial and military support ahead. Danish Prime Minister Mette Frederiksen said her government would announce plans later Wednesday for a “massive” rearming of Denmark’s military due to the growing threat posed by Russia.Intel surged 16.1 percent following a Wall Street Journal report that rivals Broadcom and Taiwan Semiconductor Manufacturing Co. were considering bids to purchase key assets from the chip company. Nike was another big winner, gaining 6.2  percent as it announced a joint venture with Kim Kardashian under the NikeSKIMS brand.But US homebuilder stocks retreated following a survey that showed industry sentiment fell sharply in February due to worry about tariffs.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.- Key figures around 2130 GMT -New York – Dow: FLAT at 44,556.34 (close)New York – S&P 500: UP 0.2 percent at 6,129.58 (close)New York – Nasdaq Composite: UP 0.1 percent at 20,041.26 (close)London – FTSE 100: FLAT at 8,766.73 (close)Paris – CAC 40: UP 0.2 percent at 8,206.56 (close)Frankfurt – DAX: UP 0.2 percent at 22,844.50 (close)Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)Euro/dollar: DOWN at $1.0445 from $1.0484 on MondayPound/dollar: DOWN at $1.2608 from $1.2623Dollar/yen: UP at 152.09 from 151.51 yenEuro/pound: DOWN at 82.85 pence from 83.04 penceWest Texas Intermediate: UP 1.6 percent at $71.85 per barrelBrent North Sea Crude: UP 0.8 percent at $75.84 per barrelburs-jmb/md

Global stock markets held largely steady on Tuesday as top US and Russian diplomats held their first since Russia’s invasion of Ukraine. The talks, which excluded Europe and Ukraine, ended with Moscow and Washington agreeing to appoint teams to negotiate an end to the Ukraine war.”Donald Trump continues to be the dominant force for financial markets,” said Kathleen Brooks, research director at XTB.  “Trump has ripped up the playbook when it comes to dealing with Russia, and the markets are keeping the faith with the US President for now,” she added.In Europe, the main markets were mostly higher, with Frankfurt’s DAX index striking another all-time high as elections approach, with investors hoping a ruling coalition better able to act will emerge.Defence stocks mostly added to gains after having soared the previous day as European leaders held an informal summit to discuss Ukraine and signalled more financial and military support ahead. Danish Prime Minister Mette Frederiksen said her government would announce plans later Wednesday for a “massive” rearming of Denmark’s military due to the growing threat posed by Russia.Wall Street opened mostly higher as traders came back from a three-day holiday weekend, with the S&P 500 falling just short of hitting a record high.”Fittingly, gains in the mega-cap stocks, and AI enthusiasm following xAI’s release of its Grok 3 model, are among the primary factors for the upside bias,” said Briefing.com analyst Patrick O’Hare.Shares in struggling chipmaker Intel rose more than six percent at the start of trading following reports that rivals Broadcom and TSMC could buy parts of its business.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on some areas of the private sector.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.Monday’s gathering provided some much-needed relief to investors and boosted hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Chinese tech and e-commerce giant Alibaba rose more than two percent. Games developer XD Inc surged more than 10 percent, while Tencent added two percent.Shanghai’s stock market fared less well, while Tokyo gained.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.- Key figures around 1430 GMT -New York – Dow: DOWN less than 0.1 percent at 44,513.12 pointsNew York – S&P 500: UP 0.1 percent at 6,122.62New York – Nasdaq Composite: UP 0.3 percent at 20,080.99London – FTSE 100: FLAT at 8,764.72 Paris – CAC 40: UP 0.2 percent at 8,202.31Frankfurt – DAX: UP 0.1 percent at 22,828.41Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)Euro/dollar: DOWN at $1.0455 from $1.0483 on MondayPound/dollar: DOWN at $1.2608 from $1.2613Dollar/yen: UP at 151.76 from 151.41 yenEuro/pound: DOWN at 82.93 pence from 83.11 penceWest Texas Intermediate: UP 1.1 percent at $71.53 per barrelBrent North Sea Crude: UP 0.4 percent at $75.50 per barrelburs-rl/yad

Singapore will pour an additional $3.7 billion into upgrades at Changi airport, including a long-awaited fifth terminal, as the nation seeks to maintain its position as a top global aviation hub, its leader said Tuesday.Prime Minister Lawrence Wong announced the fresh infusion while presenting the city-state’s 2025 budget, which also included a wide range of cash incentives for locals ahead of elections later this year.Serving in a dual role as finance minister, Wong said part of the funds will be used to construct a fifth terminal at the airport, which saw around 67.7 million passengers pass through its gates last year.”When completed, Terminal 5 will expand our airport’s capacity by more than 50 percent and will ensure that Singapore remains a critical gateway for global travel and trade,” he said.The fresh top-up of Sg$5 billion (US$3.7 billion) to the Changi Airport Development Fund will “ensure sufficient resources to develop our air hub”, added Wong.Terminal 5 was first proposed in 2013 and construction is expected to go ahead later this year, following pandemic delays, officials said.The new terminal is expected to be operational in the mid-2030s.Singapore’s Changi has been consistently ranked as among the best airports in the world, but it has faced challenges from other hubs like Doha and Seoul.It is one of the largest transit hubs in Asia with more than 100 airlines operating from the airport. The government put Sg$3 billion in its airport development fund in 2015 when it was set up, adding Sg$1 billion in 2016, and Sg$2 billion in 2023, according to local media.- Budget giveaways -Also in Tuesday’s budget speech, his first as prime minister since taking over in May, Wong unveiled a raft of government handouts, including to help citizens cope with high living costs and upgrade jobs skills.The giveaways include Sg$800 worth of vouchers for every Singaporean household to be distributed from May — part of regular state disbursements.The budget items came ahead of general elections, which must be called before November.The People’s Action Party (PAP), which has ruled Singapore since 1959, is expected to face a tough challenge from a resurgent opposition, building on gains during the last polls in 2020.The PAP won 83 of the 93 seats at stake in that election, but the opposition Workers’ Party surprisingly captured an unprecedented 10 seats.Wong also said the government will put in an additional Sg$5 billion to a coastal and flood protection fund and another Sg$5 billion to a pool supporting clean energy.Singapore was also studying the potential of nuclear energy and would “take further steps to systematically build up our capabilities in this area”, the prime minister added.

Global stock markets traded mixed Tuesday as investors awaited the outcome of the first meeting between top US and Russian diplomats since Russia’s invasion of Ukraine. The talks, which excluded Europe and Ukraine, have led to uncertainty in markets as traders mull the prospect of higher European defence spending.  “European markets are drifting lower in early trade, as markets start to show a degree of hesitancy for the outcome of today’s peace talks between the US and Russia,” said Joshua Mahony, chief market analyst at Scope Markets. Defence stocks soared the previous day as European leaders held an informal summit to discuss Ukraine and signalled more financial and military support ahead. “There is still a very good chance that defense budgets will rise in Europe in the coming years, however, for the European defense trade to take another leg higher, we may need to see significant progress in today’s talks,” said Kathleen Brooks, research director at XTB.  London’s FTSE 100 rose following data that showed UK wage growth accelerated and the employment rate was steady.Paris was flat and Frankfurt dipped from Monday’s record gains.Over in Asia, Hong Kong’s stock market soared Tuesday, thanks to a recovery in Chinese tech stocks. That came after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on some areas of the private sector.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.Monday’s gathering provided some much-needed relief to investors and boosted hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Chinese tech and e-commerce giant Alibaba rose more than two percent. Games developer XD Inc surged more than 10 percent, while Tencent added two percent.Shanghai’s stock market fared less well, while Tokyo gained.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.Wall Street was closed for a holiday on Monday.- Key figures around 1100 GMT -London – FTSE 100: UP 0.1 percent at 8,780.68 pointsParis – CAC 40: FLAT at 8,188.24Frankfurt – DAX: DOWN 0.1 percent at 22,770.80Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)New York – Dow: Closed for a holidayEuro/dollar: DOWN at $1.0462 from $1.0483 on MondayPound/dollar: DOWN at $1.2601 from $1.2613Dollar/yen: UP at 151.80 from 151.41 yenEuro/pound: DOWN at 83.02 pence from 83.11 penceWest Texas Intermediate: UP 1.6 percent at $71.85 per barrelBrent North Sea Crude: UP 0.8 percent at $75.82 per barrel

Asian markets were mixed Tuesday with Hong Kong resuming its tech-led rally after a meeting between President Xi Jinping and China’s top business leaders fanned hopes that a long-running crackdown on the private sector is coming to an end.The Hang Seng Index’s gains extended an impressive start to the year, with the emergence of a new chatbot from Chinese startup DeepSeek stoking optimism in the country’s AI drive.The tech revival has also helped offset worries about the impact of US President Donald Trump’s hardball foreign policies and decision to impose sweeping tariffs on trade partners.Among the luminaries meeting Xi in Beijing were Alibaba co-founder Jack Ma, Huawei founder Ren Zhengfei and Wang Chuanfu, CEO of electric vehicle giant BYD.Since taking the helm, Xi has strengthened the role of state enterprises in the world’s second-largest economy and waged crackdowns on areas of the private sector undergoing “disorderly” expansion.The drive has hammered some of the country’s biggest names in recent years, sending their share prices plummeting.State news agency Xinhua reported that Xi had “stressed that the difficulties and challenges currently faced by the development of the private economy have generally appeared during the process of reform and development, and industrial transformation”.”They are partial rather than general, temporary rather than long-term, and surmountable rather than unsolvable,” Xi said, according to Xinhua.He added that Beijing was focused on removing obstacles to commerce, promoting fair competition, cracking down on arbitrary fines and protecting business interests.Monday’s gathering provided some much-needed relief to investors and fanned hopes for a sector revival.”This was seen as a strong signal that his crackdown on the tech sector is over and with forthcoming pro-business policies to help revive the economy,” said National Australia Bank head of market economics Tapas Strickland.Ma’s inclusion hinted at the billionaire magnate’s potential public rehabilitation after years out of the spotlight following a tangle with regulators.- Alibaba’s surge -Asian markets started the day fast out of the blocks, though they struggled to maintain momentum and some turned negative.Hong Kong pared an early flurry as traders took cash off the table after a strong run-up so far this year.Still, Alibaba rose more than two percent, and has now piled on more than 50 percent since the turn of the year. Games developer XD Inc surged more than 10 percent, while Tencent added two percent and NetEase nearly three percent.”As this tech-led rally continues, investors are left wondering: Can the upward momentum of Chinese tech stocks sustain as the flood of positive news subsides?” asked Pepperstone research analyst Dilin Wu.”Has the market reached an inflection point for a full-scale ‘Buy China’ strategy? And what risks lie ahead?”Tokyo, Singapore, Seoul, Taipei, Manila and Jakarta also rose with Frankfurt extending Monday’s record gains. London and Paris were also higher.However, there were losses in Shanghai, Wellington, Bangkok and Mumbai.Sydney fell as the Reserve Bank of Australia announced its first interest rate cut since late 2020 but warned global uncertainties would make it hard for officials to follow up with any more anytime soon.Wall Street was closed for a holiday.Meanwhile, Federal Reserve governor Christopher Waller suggested the US central bank could cut interest rates this year if inflation performs as it has in the past, pointing to last year’s spike in the winter followed by a quick easing.”If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate,” he said in prepared remarks due to be delivered on Tuesday in Sydney.”But until that is clear, I favour holding the policy rate steady.”With prices showing signs of ticking back up in recent months, traders have scaled back their bets on how many reductions officials would make this year.”The data are not supporting a reduction in the policy rate at this time,” Waller said. “But if 2025 plays out like 2024, rate cuts would be appropriate at some point this year.”His remarks come amid fears that Trump’s plans to impose tariffs and slash taxes, regulations and immigration will reignite inflation.- Key figures around 0815 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 39,270.40 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 22,976.81 (close)Shanghai – Composite: DOWN 0.9 percent at 3,324.49 (close)London – FTSE 100: UP 0.2 percent at 8,783.28 Euro/dollar: DOWN at $1.0465 from $1.0483 on MondayPound/dollar: UP at $1.2618 from $1.2613Dollar/yen: UP at 152.08 from 151.41 yenEuro/pound: DOWN at 82.94 pence from 83.11 penceWest Texas Intermediate: UP 0.8 percent at $71.33 per barrelBrent North Sea Crude: UP 0.1 percent at $75.31 per barrelNew York – Dow: Closed for a holiday