Afp Business Asia

British treasurer Rachel Reeves said Saturday that London was a “natural home” for Chinese finance during a visit to Beijing in the shadow of bond market turmoil back home.Reeves, whose formal title is chancellor of the exchequer, is the most senior British government official to visit China since then-prime minister Theresa May held talks with President Xi Jinping seven years ago.The trip comes as the yield on British government bonds reached a 17-year high this week, further complicating the ruling Labour Party’s sputtering efforts to revitalise growth.The increase makes it more costly for the government to finance current operations and repay debt, raising risks it will have to make spending cuts or hike taxes.Speaking at the reopening of long-suspended finance talks between the two countries, Reeves said London was a “natural home for China’s financial services firms and your clients raising capital, and a launchpad for Chinese firms seeking to build a global footprint”.She hailed “opportunities to deepen connections” on capital markets, but said both countries needed to work more closely on “regulatory cooperation”.At a later press briefing, Reeves said “common ground” had been found on financial services, trade, investment, climate change and other areas.She said the total value of what had been agreed would be worth £600 million ($732 million) for the British economy over the next five years, without giving specific details.Her Chinese counterpart, Vice Premier He Lifeng, said experience showed that “as long as China and the UK respect each other… relations between our two countries can develop in a healthy way”.Reeves faced pressure from the parliamentary opposition to stay home and address the financial crisis, but a spokesperson for Prime Minister Keir Starmer said this week she had not planned to cancel her “long-standing” trip.On a visit to British bicycle-maker Brompton’s Beijing showroom earlier Saturday, Reeves acknowledged “moves in global financial markets over the last few days”, but said the fiscal rules she set out in her October budget were “non-negotiable”.”Growth is the number one mission of this government, to make our country better off,” she said, adding that her visit would “unlock tangible benefits for British businesses”.The governor of the Bank of England and the chief executive of the UK’s Financial Conduct Authority also took part in the visit.- Fine balance -Starmer has sought to reset the UK’s diplomatic relationship with China, balancing opportunities for trade and cooperation with the need to challenge Beijing on areas like human rights and the war in Ukraine.In November, Starmer became the first British prime minister to meet Xi since 2018, when the pair spoke at the G20 summit in Brazil.But trust is fragile following claims that a Chinese businessman used his links with Britain’s Prince Andrew to spy for the Communist Party, an allegation Beijing has dismissed as “preposterous”.Reeves said Saturday that it was “important that we can have open and frank exchange” on issues where London and Beijing disagreed, including concerns around national security, market access and the impacts of subsidies and industrial policy.Other points of contention, she said, were “Russia’s illegal war in Ukraine… and Hong Kong, where we have concerns on rights and freedoms, but where we also have shared interests”.In response, He repeated China’s long-standing position that it is “neither a creator of the Ukraine crisis, nor a direct party” to the conflict.He added that “Hong Kong can become a bridge to closer cooperation between our two sides”.China is a long-time ally of Russia and has refused to condemn its invasion of Ukraine despite criticism from Western governments that Beijing is giving Moscow political and economic support to wage a war of aggression.Relations between the UK and China plummeted in 2020 after Beijing imposed a sweeping national security law on Hong Kong which severely curtailed freedoms in the former British colony.

The black boxes holding the flight data and cockpit voice recorders for the crashed Jeju Air flight that left 179 people dead stopped recording four minutes before the disaster, South Korea’s transport ministry said Saturday.The Boeing 737-800 was flying from Thailand to Muan, South Korea, on December 29 carrying 181 passengers and crew when it belly-landed at the Muan airport and exploded in a fireball after slamming into a concrete barrier.It was the worst-ever aviation disaster on South Korean soil.”The analysis revealed that both the CVR and FDR data were not recorded during the four minutes leading up to the aircraft’s collision with the localiser,” the transport ministry said in a statement, referring to the two recording devices.The localiser is a barrier at the end of the runway that helps with aircraft landings and was blamed for exacerbating the crash’s severity.The damaged flight data recorder had been deemed unrecoverable for data extraction by South Korean authorities, who sent it to the United States for analysis at the US National Transportation Safety Board laboratory.But it appears that the boxes holding clues to the flight’s final moments experienced data loss, leaving authorities trying to find out what happened.”Plans are in place to investigate the cause of the data loss during the ongoing accident investigation,” the ministry said.South Korean and US investigators are still probing the cause of the crash, which prompted a national outpouring of mourning with memorials set up across the country.- ‘Committed’ -Investigators said the boxes were crucial to their probe but added they would not give up on trying to find out why the crash happened.”The investigation will be conducted through the examination and analysis of various data. The Committee is committed to doing its best to accurately determine the cause of the accident,” the ministry said.Investigators have pointed to a bird strike, faulty landing gear and the runway barrier as possible issues.The pilot warned of a bird strike before pulling out of a first landing, then crashed on a second attempt when the landing gear did not emerge.This week, lead investigator Lee Seung-yeol told reporters that “feathers were found” in one of the plane’s recovered engines, but cautioned a bird strike does not lead to an immediate engine failure.Authorities have raided offices at Muan airport where the crash took place, a regional aviation office in the southwestern city, and Jeju Air’s office in the capital Seoul.They also barred Jeju Air’s chief executive from leaving the country. Rival parties later formed a joint task force to probe the crash, while Transport Minister Park Sang-woo offered his resignation this week.”As the minister responsible for aviation safety, I feel a heavy sense of responsibility regarding this tragedy,” he said.

Wall Street stocks slumped and the dollar climbed on Friday as a robust US jobs report dimmed hopes of further interest rate cuts.Oil prices, meanwhile, briefly jumped past $80 per barrel on new US sanctions on Russia, further disrupting its crude exports and therefore tightening supplies.The world’s biggest economy added 256,000 jobs last month, up from a revised 212,000 in November, said the Labor Department.The figure smashed market expectations of between 150,000 and 160,000 jobs.Traders say a strong US economy, as evidenced by the jobs data, means there is less likelihood of further Federal Reserve rate cuts — which have caused bond yields and the dollar to climb and stocks to move lower.”Sentiment has soured on equity markets and the bond market strop out is showing signs of intensifying,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Briefing.com analyst Patrick O’Hare said: “The key takeaway from the report for the market is that it was perhaps too good.”The Fed indicated last month that it would cut rates just twice this year — down from the four previously flagged — due to sticky inflation.That came amid concerns that incoming president Donald Trump’s plans to slash taxes, regulations and immigration — and to impose harsh tariffs on imports — would reignite price increases.O’Hare said the strong jobs report suggests “the Fed may have made a mistake cutting rates as aggressively as it did at the end of 2024”.Hargreaves Lansdown’s Streeter said: “Hopes for multiple rate cuts from the Fed… have fizzled out.”Market expectations of the next rate cut have shifted to later in the year.”The market may not love this jobs number but there are a lot worse things than a strong labour market,” said US investment analyst Bret Kenwell at eToro trading platform.A strong jobs market is needed to keep consumers spending, which is the motor of the US economy, he noted.”Investors need to keep that in mind — even if that means rate-cut expectations take a step back,” Kenwell added.- Bond pressure -The yield on US government bonds jumped following the jobs report.Across the Atlantic, UK 10-year bond yields remained high after surging to their highest level since the 2008 global financial crisis, amid talk the government may have to make spending cuts or hike taxes to help repay state debt.The pound remained under pressure after hitting levels against the dollar on Thursday not seen since late 2023.”The global bond selloff showed few signs of letting up… with long-term borrowing costs continuing to move higher,” noted Jim Reid, managing director at Deutsche Bank. “Even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he added.European markets closed lower.In Asia, the Tokyo, Hong Kong and Shanghai stock markets also closed lower on Friday.- Key figures around 2125 GMT -New York – Dow: DOWN 1.6 percent at 41,938.45 points (close)New York – S&P 500: DOWN 1.5 percent at 5,827.04 (close)New York – Nasdaq Composite: DOWN 1.6 percent at 19,161.62 (close) London – FTSE 100: DOWN 0.9 percent at 8,248.49 (close)Paris – CAC 40: DOWN 0.8 percent at 7,431.04 (close)Frankfurt – DAX: DOWN 0.5 percent at 20,214.79 (close)Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)Euro/dollar: DOWN at $1.0244 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2210 from $1.2293Dollar/yen: DOWN at 157.74 yen from 157.96 yenEuro/pound: UP at 83.90 pence from 83.75 penceBrent North Sea Crude: UP 3.7 percent at $79.76 per barrelWest Texas Intermediate: UP 3.6 percent at $76.57 per barrelburs-rl/gil/bys/des

Stock markets mostly retreated and the dollar steadied Friday as traders awaited key US jobs data for signals on the health of the world’s largest economy and the outlook for interest rates.Oil prices jumped around 2.5 percent as analysts expect the United States to soon announce more sanctions against Russia, further disrupting its crude exports and therefore tightening supplies.Tokyo, Hong Kong and Shanghai stock markets closed lower Friday. London dropped nearing the halfway stage while in the eurozone, Frankfurt and Paris gained. The pound remained under pressure after Thursday hitting levels not seen since late 2023 against the dollar on worries about the UK economy.UK 10-year bond yields remained high after surging to their highest level since the 2008 global financial crisis, amid talk the government may have to make spending cuts or hike taxes to help repay state debt.”The global bond selloff showed few signs of letting up… with long-term borrowing costs continuing to move higher,” noted Jim Reid, managing director at Deutsche Bank. “Even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he added.Friday’s US non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.”Markets will be watching closely for any signs of inflationary pressures building with the wage growth figure followed closely,” said Joshua Mahony, chief market analyst at financial services firm Scope Markets. The Fed indicated last month it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Donald Trump’s plans to slash taxes, regulations and immigration — and to impose harsh tariffs on imports — on re-entering the White House would reignite prices.On the corporate front, shares in French video game giant Ubisoft shed around six percent on the Paris stock exchange, after the company said it was exploring its options following another delay in its “Assassin’s Creed” franchise. Uniqlo owner Fast Retailing also struggled, with shares sliding in Tokyo after the company reported a weak quarterly performance in China.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.2 percent at 8,299.70Paris – CAC 40: UP 0.2 percent at 7,506.93Frankfurt – DAX: UP 0.2 percent at 20,362.05Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)New York – Dow: closed on ThursdayEuro/dollar: UP at $1.0303 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2292 from $1.2293Dollar/yen: UP at 158.11 yen from 157.96 yenEuro/pound: UP at 83.81 pence from 83.75 penceBrent North Sea Crude: UP 2.5 percent at $78.87 per barrelWest Texas Intermediate: UP 2.6 percent at $75.82 per barrel

Equities fell Friday as traders prepared for the release of US jobs data that could play a key role in the Federal Reserve’s decision-making on interest rates, with several officials indicating the cutting has finished for now.Markets have started the year cautiously, with the optimism that characterised most of the past three months dented by concerns about Donald Trump’s coming presidency and the US central bank’s hawkish pivot on monetary policy.With Wall Street closed for a national day of mourning for late former president Jimmy Carter, there were few major catalysts to drive business at the end of a broadly dour week in Asia.Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington, Bangkok and Manila fell, while Mumbai and Jakarta edged up.London dipped at the open, while Frankfurt and Paris were flat.Friday’s non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.Still, the Fed indicated last month it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Trump’s plans to slash taxes, regulations and immigration, and impose harsh tariffs on imports, would reignite prices.And several Fed officials have since lined up to warn they would be keen to take it easy on easing policy this year.Boston Fed president Susan Collins said “considerable uncertainty” meant a slower pace of reduction would be warranted, adding that borrowing costs were in the right place for now and could be held for longer “if there is little further progress on inflation”.And Fed Governor Michelle Bowman acknowledged that while she backed last month’s reduction, she could have been persuaded against it. “Given the lack of continued progress on lowering inflation and the ongoing strength in economic activity and in the labour market, I could have supported taking no action at the December meeting,” she said.Kansas City boss Jeff Schmid said policy could already be at its ideal zone, while his Philadelphia counterpart Patrick Harker wanted to base his decision on incoming data.Regan Capital chief investment officer Skyler Weinand said the Fed was “worried about the incoming administration”.He told Bloomberg Television that the growing US fiscal deficit and healthy consumer spending could result in “higher interest rates for the next five to 10 years”.On currency markets, the pound remained under pressure after Thursday saw it hit levels not seen since late 2023, although it remains under pressure on worries about the UK economy amid talk the government might have to make spending cuts or hike taxes.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)London – FTSE 100: DOWN 0.1 percent at 8,308.15Euro/dollar: DOWN at $1.0292 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2289 from $1.2293Dollar/yen: UP at 158.42 yen from 157.96 yenEuro/pound: UP at 83.78 pence from 83.75 penceWest Texas Intermediate: UP 0.9 percent at $74.59 per barrelBrent North Sea Crude: UP 0.9 percent at $77.62 per barrelNew York – Dow: closed

Equities fell again in Asia on Friday as traders prepared for the release of US jobs data that could play a key role in the Federal Reserve’s decision-making on interest rate, with several officials indicating the cutting has finished for now.Markets have started the year cautiously, with the optimism that characterised most of the past three months dented by concerns about Donald Trump’s presidency and the US central bank’s hawkish pivot on monetary policy.With Wall Street closed for a national day of mourning for late former president Jimmy Carter, there were few major catalysts to drive business at the end of a broadly dour week in Asia.Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington and Manila fell, while Hong Kong barely moved and Jakarta cautiously edged up.Friday’s non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.Still, the Fed last month indicated it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Trump’s plans to slash taxes, regulations and immigration, and impose harsh tariffs on imports would reignite prices.And several Fed officials have since lined up to warn they would be keen to take it easy on easing policy this year.Boston Fed president Susan Collins said “considerable uncertainty” meant a slower pace of reduction would be warranted, adding that borrowing costs were in the right place for now and could be held for longer “if there is little further progress on inflation”.And Fed Governor Michelle Bowman admitted that while she backed last month’s reduction, she could have been persuaded against it. “Given the lack of continued progress on lowering inflation and the ongoing strength in economic activity and in the labour market, I could have supported taking no action at the December meeting,” she said. Meanwhile, Kansas City boss Jeff Schmid said policy could already be at its ideal zone, while his Philadelphia counterpart Patrick Harker wanted to base his decision on incoming data.Regan Capital chief investment officer Skyler Weinand said the Fed was “worried about the incoming administration”.He told Bloomberg Television that the growing US fiscal deficit and healthy consumer spending could result in “higher interest rates for the next five to 10 years”.On currency markets the pound edged up from Thursday, when it hit levels not seen since late 2023, though it remains under pressure on worries about the UK economy amid talk the government might have to make spending cuts or hike taxes.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.5 percent at 39,411.76 (break)Hong Kong – Hang Seng Index: FLAT at 19,242.10Shanghai – Composite: DOWN 0.2 percent at 3,205.49Euro/dollar: UP at $1.0302 from $1.0296 on ThursdayPound/dollar: UP at $1.2307 from $1.2293Dollar/yen: UP at 158.19 yen from 157.96 yenEuro/pound: DOWN at 83.71 pence from 83.75 penceWest Texas Intermediate: UP 0.4 percent at $74.19 per barrelBrent North Sea Crude: UP 0.4 percent at $77.19 per barrelNew York – Dow: Closed London – FTSE 100: UP 0.8 percent at 8,319.69 points (close)

European and Asian stock markets diverged Thursday, investors tracking the outlook for inflation and US interest rates as Donald Trump’s second presidency approaches.Sentiment was clouded by data showing that Chinese consumer inflation remained almost non-existent despite a raft of stimulus measures in the final three months of last year.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions.In foreign exchange, the British pound weakened to lows not seen for more than a year on worries about sticky inflation that could further hit Britain’s struggling economy.London’s FTSE 100 index — whose biggest companies earn most of their money overseas — gained as the pound sank against its main rivals.Paris equities also rose and Frankfurt dipped.US markets were closed Thursday as the country holds a national day of mourning for late former president Jimmy Carter.The drop in sterling comes as UK 10-year bond yields have surged, on Thursday hitting the highest level since the 2008 global financial crisis.That puts fiscal pressure on the Labour government, which could eventually force it to make spending cuts or hike taxes.”This move is shadowing a rise in US bond yields… alongside indications of persistent inflation that are prompting investors to review expectations for two (US) rate cuts in the year ahead,” said Lindsay James, investment strategist at Quilter Investors. The likelihood of limited interest-rate cuts by the US Federal Reserve — which last year hinted at four cuts in 2025 — has “cast a shadow over market sentiment”, said Matt Britzman, senior analyst at Hargreaves Lansdown.A report saying President-elect Trump had considered declaring a national economic emergency to provide legal cover to impose tariffs on all imported goods added to the uncertainty on trading floors.Worries about Trump’s plans to slash taxes, regulate immigration and ramp up tariffs have led to warnings that prices could reignite.That has sent the yield on the 10-year US Treasury note surging and fanned speculation it could top five percent for the first time since October 2023.Friday’s US employment figures are now in focus for traders.The Dow and S&P 500 ended slightly higher on Wall Street Wednesday, but the Nasdaq dipped.In Asia, Hong Kong and Shanghai closed lower Thursday, reacting to the Chinese inflation data, which piles pressure on officials to ramp up stimulus to boost consumption.China’s leaders have unveiled a range of measures to kickstart the world’s number two economy, with a focus on getting people to spend, and support for the troubled property sector.On the corporate front, Thursday UK retailers were hit by negative market sentiment.Shares in supermarket Tesco dipped 0.5 percent and Marks and Spencer dropped more than eight percent on London’s FTSE 100, despite both posting strong results. – Key figures around 1630 GMT -London – FTSE 100: UP 0.8 percent at 8,319.69 points (close)Paris – CAC 40: UP 0.5 percent at 7,490.28 (close)Frankfurt – DAX: DOWN less than 0.1 percent at 20,317.10 (close)Tokyo – Nikkei 225: DOWN 0.9 percent at 39,605.09 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,240.89 (close)Shanghai – Composite: DOWN 0.6 percent at 3,211.39 (close)New York – Dow: Closed Euro/dollar: DOWN at $1.0296 from $1.0316 on WednesdayPound/dollar: DOWN at $1.2293 from $1.2361Dollar/yen: DOWN at 157.96 yen from 158.38 yenEuro/pound: UP at 83.75 pence from 83.44 penceWest Texas Intermediate: UP 1.2 percent at $74.18 per barrelBrent North Sea Crude: UP 1.2 percent at $77.07 per barrelburs-rl/jj

China said Thursday that an investigation had found the European Union imposed unfair “trade and investment barriers” on Beijing, marking the latest salvo in long-running commercial tensions between the two economic powers.Officials announced the probe in July after Brussels began looking into whether Chinese government subsidies were undermining European competition.Beijing has consistently denied its industrial policies are unfair and has threatened to take action against the EU to protect Chinese companies’ legal rights and interests.The commerce ministry said Thursday that the implementation of the EU’s Foreign Subsidies Regulation (FSR) discriminated against Chinese firms and “constitutes trade and investment barriers”.However, it did not mention whether Beijing planned to take action in response.The two are major trade partners but are locked in a wide-ranging standoff, notably over Beijing’s support for its renewables and electric-vehicle sectors.EU actions against Chinese firms have come as the 27-nation bloc seeks to expand renewable energy use to meet its target of net-zero greenhouse gas emissions by 2050.But Brussels also wants to pivot away from what it views as an overreliance on Chinese technology at a time when many Western governments increasingly consider Beijing a potential national security threat.When announcing the probe, the ministry said its national chamber of commerce for importing and exporting machinery and electronics had filed a complaint over the FSR measures.The 20-page document detailing the ministry’s conclusions said their “selective enforcement” resulted in “Chinese products being treated more unfavourably during the process of export to the EU than products from third countries”.It added that the FSR had “vague” criteria for investigating foreign subsidies, placed a “severe burden” on the targeted companies and had opaque procedures that created “huge uncertainty”.EU measures such as surprise inspections “clearly exceeded the necessary limits”, while investigators were “subjective and arbitrary” on issues like market distortion, according to the ministry.Companies deemed not to have complied with probes also faced “severe penalties”, which placed “huge pressure” on Chinese firms, it said.The European Commission on Thursday defended the FSR, saying it was “fully compliant with all applicable EU and World Trade Organization rules”.”All companies, regardless of their seat or nationality, are subject to the rules,” a commission spokesperson said in a statement.”This is also the case when applying State aid or antitrust rules.” – Projects curtailed -The Chinese commerce ministry said FSR investigations had forced Chinese companies to abandon or curtail projects, causing losses of more than 15 billion yuan ($2.05 billion).The measures had “damaged the competitiveness of Chinese enterprises and products in the EU market”, it said, adding that they also hindered the development of European national economies and undermined trade cooperation between Beijing and Brussels.The EU’s first probe under the FSR in February targeted a subsidiary of Chinese rail giant CRRC, but closed after the company withdrew from a tender in Bulgaria to supply electric trains.A second probe targets Chinese-owned solar panel manufacturers seeking to build and operate a photovoltaic park in Romania, partly financed by European funds.In October, Brussels imposed extra tariffs on Chinese-made electric cars after an anti-subsidy investigation under a different set of rules concluded Beijing’s state support was unfairly undercutting European automakers.Beijing in response announced provisional tariffs on brandy imported from the EU, and later imposed “temporary anti-dumping measures” on the liquor.Last month, China said it would extend the brandy investigation, citing the case’s “complexity”.Separately, a report by the European Union Chamber of Commerce in China warned that firms were being forced to drastically localise their operations to suit China’s regulations, driving up costs and reducing efficiency.Heightened trade tensions and Beijing’s “self-reliance policies” were causing many multinationals “to separate certain China-based functions, or even entire operations, from those in the rest of the world”, it said.It added that governance rules increasingly dominated by national security concerns had heightened uncertainties for local entities in engaging with European clients.Some customers are therefore choosing to “err on the side of caution and not take a risk by buying from a foreign service provider”, Chamber head Jens Eskelund said at a media event on Thursday.

Sales of electric and hybrid vehicles jumped more than 40 percent in China last year, as demand for new energy models continues to surge and the sector remains entrenched in a gruelling price war.The Chinese electric vehicle market has witnessed explosive growth in recent years, driven in part by generous subsidies from Beijing.But the world’s largest automotive market has also seen fierce competition among domestic car manufacturers as a consumption slowdown fuels a price war that is weighing on profitabilityIn 2024, almost 11 million new energy vehicles (NEVs) were sold, a year-on-year increase of 40.7 percent, the China Passenger Car Association (CPCA) said Thursday. NEVs accounted for nearly half — 47.6 percent — of all retail sales last year, the association said.By comparison, such vehicles accounted for just 22.6 percent of sales in the European market in November, according to the European Automobile Manufacturers’ Association.In China, NEV sales surpassed 1.3 million units in December, CPCA data showed, up 37.5 percent year-on-year and representing the fifth consecutive month of sales of more than one million.Beyond just NEVs, the total number of vehicles sold last year in the Chinese market swelled 5.5 percent, reaching nearly 22.9 million units, the CPCA said.For EV companies, the price war is likely to carry on in the new year, CPCA secretary general Cui Dongshu said during a Thursday press conference.More than 200 car models saw price cuts last year, compared to 148 in 2023, Cui added. BYD has emerged as a clear leader in the Chinese market — the Shenzhen-based firm sold more than four million vehicles globally in 2024.- Bleak overseas market -While BYD occupies roughly one third of the Chinese market, the situation is bleaker overseas, where various governments have hiked customs duties on vehicle imports from the country.In December, sales in foreign markets accounted for just 12 percent of BYD’s overall sales, according to the company’s figures.”We are now experiencing significant pressure on exports,” Cui said Thursday, adding that Chinese NEV sales are “currently being suppressed by the European Union”.The European Union has said that extensive state support by Beijing for its domestic carmakers has led to unfair competition, with an investigation by the bloc finding that subsidies were undercutting local competitors.Foreign automotive giants, on the other hand, are battling against slumping sales in the world’s second-largest economy.BYD’s quarterly revenue surpassed global rival Tesla’s for the first time during the third quarter last year.

Asian markets fell Thursday after a tepid lead from Wall Street, with investors increasingly worried about the outlook for inflation and US interest rates as Donald Trump’s second presidency looms.A report saying the president-elect was considering declaring a national economic emergency to provide legal cover to impose tariffs on all imported goods added to the sense of uncertainty on trading floors.Sentiment was also clouded by data showing that Chinese consumer inflation remained almost non-existent despite a raft of stimulus measures in the final three months of last year.And the pound weakened to lows not seen for more than a year on worries about the UK economy.Equities have had an unremarkable start to 2025 after the Federal Reserve in December made a hawkish pivot and indicated it would not cut rates as much as initially expected over the next 12 months owing to sticky inflation and a still-strong labour market.Worries about Trump’s plans to slash taxes, regulate immigration and ramp up tariffs have also led to warnings that prices could reignite.That has sent the yield on the 10-year US Treasury note surging and fanned speculation it could top five percent for the first time since October 2023.Friday’s US employment figures are now well in focus for trade, with markets in New York closed Thursday to mourn former US president Jimmy Carter.Forecast-topping data on job openings and prices paid by services firms compounded traders’ concerns, while analysts said there was unease among investors about Trump’s unpredictable governing style, particularly with him not having to face another presidential election.After fluctuating through the day, the Dow and S&P 500 ended slightly higher on Wall Street, but the Nasdaq dipped.Hong Kong and Shanghai fell after data showed Chinese inflation eased in December, likely piling pressure on officials to ramp up stimulus to boost consumption.Leaders have unveiled a range of measures to kickstart the world’s number two economy, with a focus on getting people to spend, and support for the troubled property sector.”Given the various high-level meetings and policy communiques over the past month, it appears a safe bet to expect more aggressive fiscal policy support from China in 2025, as well as continued monetary policy easing,” said Lynn Song, chief economist for Greater China at ING.”There is the obvious and extensively discussed angle of a less favourable external environment with a high likelihood of additional tariffs and sanctions from the US once President Trump enters office. “Another less discussed element is that there appears to be a greater consensus building domestically on the need for stronger policy support to shake the economy from its extended period of heightened pessimism.”There were also losses in Tokyo, Sydney, Wellington, Taipei, Mumbai and Bangkok, though Seoul, Manila and Jakarta eked out small gains.London slipped at the open and the pound sat at its lowest levels since November 2023 on worries about Britain’s fiscal position and elevated inflation. The drop in sterling comes even as UK 10-year bond yields surge.The dollar also extended gains against the euro.Paris and Frankfurt were also both down.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.9 percent at 39,605.09 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,240.89 (close)Shanghai – Composite: DOWN 0.6 percent at 3,211.39 (close)London – FTSE 100: DOWN 0.1 percent at 8,244.29Euro/dollar: DOWN at $1.0295 from $1.0316 on WednesdayPound/dollar: DOWN at $1.2269 from $1.2361Dollar/yen: DOWN at 158.18 yen from 158.38 yenEuro/pound: UP at 83.93 pence from 83.44 penceWest Texas Intermediate: DOWN 0.1 percent at $73.24 per barrelBrent North Sea Crude: DOWN 0.1 percent at $76.07 per barrelNew York – Dow: UP 0.3 percent at 42,635.20 (close)