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Equities extended losses in Seoul on Thursday, while the won stabilised as South Korea entered a period of uncertainty with President Yoon Suk Yeol clinging to power after his brief imposition of martial law this week.And Bitcoin broke past the $100,000 mark for the first time Thursday on hopes US President-elect Donald Trump will push through measures to deregulate cryptocurrencies when he takes office next month.The digital unit hit $100,010 in early Asian trade, having enjoyed a blistering rally since the November 5 election of Trump, who pledged on the campaign trail to make the United States the “bitcoin and cryptocurrency capital of the world”.On Wednesday, the crisis in East Asia kicked off a day of high drama, as hours later the three-month-old government of French Prime Minister Michel Barnier was brought down in a no-confidence vote linked to a controversial budget proposal.The news out of the eurozone’s number-two economy had been expected and the euro saw no major impact, but the move injected fresh uncertainty into an already fraught political situation in France after divisive elections earlier this year.All eyes in Asia are on Seoul, where the opposition has pushed for Yoon’s impeachment, accusing him of declaring martial law to stop criminal investigations into himself and his family.But while the leader of Yoon’s People Power Party (PPP) called for the president to resign from the party and stressed he was “not trying to defend the president’s unconstitutional martial law”, a key PPP member vowed all its lawmakers would “stay united” to reject the impeachment motion.Also Thursday, it emerged that Defence Minister Kim Yong-hyun had resigned over the issue.The upheaval comes as Asia’s number-three economy struggles to gain traction and worries build on the possible impact of Donald Trump’s presidency as he prepares to reignite his hardball trade policy when he takes power next month.But analysts saw some optimism.”The silver lining we think is that the swift reversal of the martial law underscores the resilience of South Korea’s institutions,” said analysts at BMI, a unit of  Fitch Solutions.”For now, we expect limited implications for the economy and financial markets as the Bank of Korea and the ministry of finance have responded swiftly by reassuring investors.”Notably, the central bank committed to boosting short-term liquidity and enacting measures to stabilise the forex markets, which aligns with our view that risks around the South Korean won should remain contained for now.”And Trinh Nguyen, senior economist for emerging Asia at Natixis CIB, said: “We believe this is a growth shock rather than a sovereign risk given the political reverberation of the martial law, which was short-lived.”The incident shows the strength of Korean institutions that prevented it and will indeed raise the questions of how Yoon will govern (already a lame duck) and whether he can continue to govern (impeachment or resignation very likely).”In early trade, Seoul’s Kospi was down 0.3 percent, having finished more than one percent down Wednesday — itself an improvement on the initial drop.And the won remained at around 1,415 to the dollar, slightly up from its levels before the crisis erupted when it sank about three percent.Elsewhere in Asia was mixed as investors struggled to track a record for all three main indexes on Wall Street, where tech firms led the charge.Tokyo, Sydney, Singapore and Taipei rose but Hong Kong, Shanghai, Wellington and Manila slipped.Oil prices edged up after their gains of around two percent Wednesday that came after Washington sanctioned 35 companies and ships it accused of involvement with Iran’s “shadow fleet” illicitly selling Iranian oil to foreign markets.Major producers at the OPEC+ grouping led by Saudi Arabia and Russia were set to meet Thursday to discuss extending output limits.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 39,488.51 (close)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 19,521.29Shanghai – Composite: DOWN 0.1 percent at 3,362.65Seoul – Kospi Index: DOWN 0.3 percent at 2,457.60 Euro/dollar: UP at $1.0513 from $1.0510 on WednesdayPound/dollar: DOWN at $1.2698 from $1.2702Dollar/yen: DOWN at 150.26 yen from 150.56 yen Euro/pound: UP at 82.79 from 82.71 penceWest Texas Intermediate: UP 0.2 percent at $68.70 per barrelBrent North Sea Crude: UP 0.2 percent at $72.42 per barrelNew York – Dow: UP 0.7 percent at 45,014.04 (close)London – FTSE 100: DOWN 0.3 percent at 8,335.81 (close)

Afghanistan’s economy continues to face significant challenges despite showing signs of modest growth, the World Bank warned on Wednesday, with the future “uncertain.”The economy’s challenges include “fiscal constraints, trade imbalances, and a limited capacity for public investment,” the bank said in its Afghanistan Development Update.Critical factors for long-term recovery include enabling women’s participation in the economy, maintaining price stability and dealing with key deficits in human capital — such as education and healthcare, the multilateral development lender said.While Afghanistan has seen GDP growth of 2.7 percent, driven by private consumption, this has “recouped only about 10 percent of past economic losses,” the World Bank said.Afghanistan has been ruled by the Taliban since 2021, when their forces capitalized on the withdrawal of the US military under a peace deal to overthrow the country’s government. The Taliban’s government has not been officially recognized by any country, and the economy remains largely isolated, with many Afghans living under the poverty line. “Afghanistan’s long-term growth prospects depend on tapping into the substantial potential of the domestic private sector and improving the overall business environment,” said World Bank country director for Afghanistan Faris Hadad-Zervos.The economy requires more investment, access to finance for small businesses, and support for skilled women entrepreneurs, Hadad-Zervos added.Women and girls have been barred from secondary school and university as part of restrictions imposed by the Taliban that the UN has dubbed “gender apartheid.”The World Bank noted that partial economic recovery, alongside falling food prices, has contributed to a gradual improvement in household welfare.But it said many Afghan households still struggle to meet basic needs and that “poverty remains widespread.”Trade is another challenge with a widening deficit due to surging imports on the back of greater demand for foreign goods and a revival of domestic industry.”The trade deficit, exacerbated by Afghanistan’s reliance on imports for essential goods like fuel, food, and machinery, might pose a risk to the country’s economic stability,” the World Bank said.

Wall Street stocks surged to fresh records Wednesday on hopes about easing US monetary policy, shrugging off political upheaval in South Korea and France.All three major US indices scored records, with the Dow Jones Industrial Average finishing above 45,000 for the first time.”The market at this point is looking for excuses to go up, and there’s not really anything that might work against that narrative,” said Steve Sosnick of Interactive Brokers.”Over the last couple of days, it’s managed to ignore all sorts of inconvenient things and decided that the situation in France doesn’t matter for them,” Sosnick said of the stock market. “The situation in Korea doesn’t matter.”South Korea’s stock market fell less than feared and the won rebounded from earlier losses after President Yoon Suk Yeol swiftly reversed a decision to impose martial law.In Europe, Paris stocks managed to advance as France’s government faced looming no-confidence votes.Late Wednesday in Paris, French lawmakers voted to oust the government of Prime Minister Michel Barnier after just three months in office, pushing the country further into political uncertainty.For the first time in over sixty years, the National Assembly lower house toppled the incumbent government, approving a no-confidence motion that had been proposed by the hard left but which crucially was backed by the far-right headed by Marine Le Pen.”Political turmoil in both France and South Korea provide a uncertain backdrop for global markets, with the likely removal of both Barnier and Yoon bringing the potential for both countries to find a fresh direction,” said Joshua Mahony, chief market analyst at Scope Markets.Thomas Mathews, head of Asia-Pacific markets at Capital Economics, said the losses in Seoul could have been “much worse” had the president not aborted his plan.”Rarely does a combined sell-off in a country’s stocks, bonds and currency feel like a relief rally,” he said.Oil prices turned lower after surging around 2.5 percent Tuesday, mainly after the United States sanctioned 35 companies and ships it accused of involvement with Iran’s “shadow fleet” illicitly selling Iranian oil to foreign markets.Major producers at the OPEC+ grouping led by Saudi Arabia and Russia were set to meet Thursday to discuss extending output limits.Back in New York, major indices were led by the Nasdaq, which piled on 1.3 percent to finish at a third straight record.Wednesday’s gains came after payroll firm ADP said US private-sector hiring in November came in at a lower-than-expected 146,000 jobs, while a survey from the Institute for Supply Management showed weaker sentiment than expected in the services sector. But the lackluster data boosts expectations that the Federal Reserve will cut interest rates later this month. At a New York conference, Federal Reserve Chair Jerome Powell refrained from tipping his hand, but he “didn’t say anything that would scare the market,” said Briefing.com analyst Patrick O’Hare.O’Hare noted that Wednesday’s gains were led by large tech names such as Nvidia and Microsoft, which are major AI players. The boost followed strong results from Salesforce, which was the biggest gainer in the Dow with an 11 percent jump.- Key figures around 2150 GMT -New York – Dow: UP 0.7 percent at 45,014.04 (close)New York – S&P 500: UP 0.6 percent at 6,086.49 (close)New York – Nasdaq Composite: UP 1.3 percent at 19,735.12 (close)London – FTSE 100: DOWN 0.3 percent at 8,335.81 (close)Paris – CAC 40: UP 0.7 percent at 7,303.28 (close)Frankfurt – DAX: UP 1.1 percent at 20,232.14 (close)Seoul – Kospi Index: DOWN 1.4 percent at 2,464.00 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,276.39 (close)Hong Kong – Hang Seng Index: FLAT at 19,742.46 (close)Shanghai – Composite: DOWN 0.4 percent at 3,364.65 (close)Euro/dollar: UP at $1.0510 from $1.0509 on TuesdayPound/dollar: UP at $1.2702 from $1.2673Dollar/yen: UP at 150.56 yen from 149.60 yen Euro/pound: DOWN at 82.71 from 82.92 penceBrent North Sea Crude: DOWN 1.8 percent at $72.31 per barrelWest Texas Intermediate: DOWN 2.0 percent at $68.54 per barrelburs-jmb/jgc

South Korea’s stock market fell less than feared Wednesday and the won rebounded from earlier losses after President Yoon Suk Yeol swiftly reversed a decision to impose martial law.In Europe, Paris stocks managed to advance while the euro dipped as France’s government faced no-confidence votes later in the day that could spell the end of the administration of Prime Minister Michel Barnier.Oil prices turned lower after surging around 2.5 percent Tuesday mainly after the United States sanctioned 35 companies and ships it accused of involvement with Iran’s “shadow fleet” illicitly selling Iranian oil to foreign markets.Major producers at the OPEC+ grouping led by Saudi Arabia and Russia were set to meet Thursday to discuss extending output limits.”Political turmoil in both France and South Korea provide a uncertain backdrop for global markets, with the likely removal of both Barnier and Yoon bringing the potential for both countries to find a fresh direction,” said Joshua Mahony, chief market analyst at Scope Markets.Yoon plunged South Korea into political chaos by imposing martial law and ordering troops and helicopters to parliament, before being forced into a U-turn.It was the first time in more than four decades that martial law was in force in the country of 52 million people.The suspension of civilian rule was to “safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements plundering people’s freedom and happiness”, Yoon said.Seoul’s Kospi stocks index ended down more than one percent, having shed as much as 2.3 percent at the open.South Koreans took to the streets in mass protest and the nation’s largest umbrella labour union called an “indefinite general strike” until Yoon resigned.The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,414 following the U-turn.Thomas Mathews, head of Asia-Pacific markets at Capital Economics, said the losses could have been “much worse” had the president not aborted his plan.”Rarely does a combined sell-off in a country’s stocks, bonds and currency feel like a relief rally,” he said.”Investors now ‘only’ have to worry about a period of significant political uncertainty,” said Mathews, as South Korea’s finance ministry and central bank looked to provide stability and reassure markets.”From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump’s proposed tariffs,” said analyst Michael Wan at financial group MUFG.”This recent development could raise some further risk premium on the currency at least until we get clarity on political stability.”The losses in Seoul came on a mixed day for Asia stock markets.In Europe, London fell while Frankfurt advanced to hit another record high after ending Tuesday above 20,000 points for the first time.Wall Street pushed higher, with the major indices pushing further into record territory.Salesforce shares jumped over eight percent after the business software firm released earnings and discussed its AI plans.The market’s “focus is on the good vibes flowing out of Salesforce’s earnings report and commentary,” said market analyst Patrick O’Hare at Briefing.com.- Key figures around 1630 GMT -New York – Dow: UP 0.6 percent at 44,959.76 pointsNew York – S&P 500: UP 0.4 percent at 6,074.19New York – Nasdaq Composite: UP 0.9 percent at 19,659.01London – FTSE 100: DOWN 0.3 percent at 8,335.81Paris – CAC 40: UP 0.7 percent at 7,303.28Frankfurt – DAX: UP 1.1 percent at 20,232.14Seoul – Kospi Index: DOWN 1.4 percent at 2,464.00 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,276.39 (close)Hong Kong – Hang Seng Index: FLAT at 19,742.46 (close)Shanghai – Composite: DOWN 0.4 percent at 3,364.65 (close)Euro/dollar: UP at $1.0534 from $1.0511 on TuesdayPound/dollar: UP at $1.2714 from $1.2673Dollar/yen: UP at 150.15 yen from 149.53 yen Euro/pound: DOWN at 82.85 from 82.94 penceBrent North Sea Crude: DOWN 0.6 percent at $73.20 per barrelWest Texas Intermediate: DOWN 0.6 percent at $69.53 per barrelburs-rl/cw

South Korea’s stock market fell less than feared Wednesday and the won rebounded from earlier losses after President Yoon Suk Yeol swiftly reversed a decision to impose martial law.In Europe, Paris stocks managed to advance in afternoon deals as the euro dipped, with France’s government facing no-confidence votes later in the day that could spell the end of the administration of Prime Minister Michel Barnier.Oil prices extended gains after surging around 2.5 percent Tuesday mainly after the United States sanctioned 35 companies and ships it accused of involvement with Iran’s “shadow fleet” illicitly selling Iranian oil to foreign markets.Crude won additional support from reports that major producers at the OPEC+ grouping led by Saudi Arabia and Russia were close to a deal to extend output limits.”Political turmoil in both France and South Korea provide a uncertain backdrop for global markets, with the likely removal of both Barnier and Yoon bringing the potential for both countries to find a fresh direction,” said Joshua Mahony, chief market analyst at Scope Markets.Yoon plunged South Korea into political chaos by imposing martial law and ordering troops and helicopters to parliament, before being forced into a U-turn.It was the first time in more than four decades that martial law was in force in the country of 52 million people.The suspension of civilian rule was to “safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements plundering people’s freedom and happiness”, Yoon said.Seoul’s Kospi stocks index ended down more than one percent, having shed as much as 2.3 percent at the open.South Koreans took to the streets in mass protest and the nation’s largest umbrella labour union called an “indefinite general strike” until Yoon resigned.The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,414 following the U-turn.Thomas Mathews, head of Asia-Pacific markets at Capital Economics, said the losses could have been “much worse” had the president not aborted his plan.”Rarely does a combined sell-off in a country’s stocks, bonds and currency feel like a relief rally,” he said.”Investors now ‘only’ have to worry about a period of significant political uncertainty,” said Mathews, as South Korea’s finance ministry and central bank looked to provide stability and reassure markets.”From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump’s proposed tariffs,” said analyst Michael Wan at financial group MUFG.”This recent development could raise some further risk premium on the currency at least until we get clarity on political stability.”The losses in Seoul came on a mixed day for Asia stock markets.In Europe, London fell while Frankfurt hit another record high after ending Tuesday above 20,000 points for the first time.Wall Street pushed higher at the start of trading, with shares in Salesforce jumping over eight percent after the business software firm released earnings and discussed its AI plans.The market’s “focus is on the good vibes flowing out of Salesforce’s earnings report and commentary,” said market analyst Patrick O’Hare at Briefing.com.- Key figures around 1430 GMT -New York – Dow: UP 0.5 percent at 44,929.75 pointsNew York – S&P 500: UP 0.3 percent at 6,068.90New York – Nasdaq Composite: UP 0.6 percent at 19,595.46London – FTSE 100: DOWN 0.2 percent at 8,340.70Paris – CAC 40: UP 0.9 percent at 7,318.35 Frankfurt – DAX: UP 1.0 percent at 20,217.41Seoul – Kospi Index: DOWN 1.4 percent at 2,464.00 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,276.39 (close)Hong Kong – Hang Seng Index: FLAT at 19,742.46 (close)Shanghai – Composite: DOWN 0.4 percent at 3,364.65 (close)Euro/dollar: DOWN at $1.0490 from $1.0511 on TuesdayPound/dollar: UP at $1.2682 from $1.2673Dollar/yen: UP at 150.92 yen from 149.53 yen Euro/pound: DOWN at 82.73 from 82.94 penceBrent North Sea Crude: UP 0.5 percent at $74.01 per barrelWest Texas Intermediate: UP 0.5 percent at $70.26 per barrelburs-rl/lth

The OECD warned Wednesday that protectionist trade measures pose a major risk to disrupting the world economy, just weeks before Donald Trump is set to return to the White House.The Organisation for Economic Cooperation and Development, a Paris-based body that advises industrialised nations on policy matters, never named Trump in its updated analysis of the world economy.But with the president-elect vowing to slap tariffs on US trading partners after his return to power next month, it was abundantly clear that the OECD was warning about Trump’s possible measures.While the organisation raised its 2025 global growth forecast to 3.3 percent, it cautioned that “greater trade protectionism, particularly from the largest economies” poses a “downside risk” along with geopolitical tensions and high public debts.On the campaign trail, Trump threatened blanket tariffs of at least 10 percent on all imports and since his election has vowed to slap 25 percent import tariffs against Canada and Mexico, top US trade partners.”Increases in trade-restrictive measures could raise costs and prices, deter investment, weaken innovation and ultimately lower growth,” the OECD warned in its economic outlook.”Further increases in global trade restrictions would add to import prices, raise production costs for businesses and reduce living standards for consumers,” it added.During his first term in office from 2017 to 2021, Trump slapped tariffs on certain products from China and other trading partners, including the European Union, but on a smaller scale than the measures he has pledged to take upon his return to the White House.A recent study by the Roland Berger consultancy calculated the cost of the US measures and likely countermeasures by China and the EU at more than $2.1 trillion through 2029.- ‘Major shocks’ -Trump is far from the only risk in terms of protectionist measures.The Covid-19 pandemic and the war in Ukraine showed the dependency of many countries upon global trade, but instead of facilitating the exchange of goods and service many countries have sought to shorten certain supply chains and protect markets.A spat has also broken out between Brussels and Beijing after the EU imposed import tariffs on Chinese electric vehicles. China has retaliated with tariffs on EU brandy, including cognac.The OECD noted “the global economy has demonstrated remarkable resilience despite being subject to major shocks such as the pandemic and an energy crisis.”It even raised its global growth forecast for next year to 3.3 percent, an increase of 0.1 percentage points from its previous outlook in September, due in large part to the strong performance of the US economy.- Strong US growth -The OECD now sees the US economy expanding by 2.4 percent next year, up from its September forecast of 1.6 percent growth. It also raised its forecast of British growth next year by 0.5 percentage points, to 1.7 percent, due to higher public spending planned by the new Labour government.China’s economy is now expected to expand by 4.7 percent next year, an increase of 0.2 percentage points, while India’s growth forecast was raised 0.1 percentage points to 6.9 percent.But both France and Germany saw to 0.3 percentage point cuts to their 2025 growth forecasts, to 0.9 percent and 0.7 percent, as both countries face political crises amid mounting fiscal pressure.The downgraded forecast comes as France’s new minority government faces being brought down Wednesday by lawmakers after it forced through the adoption of the social welfare budget.

South Korean stocks sank Wednesday while the won rebounded from earlier losses after President Yoon Suk Yeol dramatically declared martial law overnight before reversing the decision hours later.The shock announcement sent shivers through the trading floor in Seoul and fuelled a political crisis in Asia’s third-biggest economy, with the opposition party saying it had submitted a motion to impeach Yoon.Investors are now keeping a close eye on developments in the country, with analysts pointing out that the upheaval comes as authorities steeled for the second US presidency of Donald Trump who has vowed to reignite his hardball trade policy.The Kospi index ended down more than one percent, having shed as much as 2.3 percent at the open, as traders fretted over the impact of Yoon declaring South Korea’s first martial law in more than four decades.He said the decision was made “to safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements plundering people’s freedom and happiness”.However, he backed down hours later when lawmakers voted to oppose the declaration, while thousands of protesters took to the streets and the nation’s largest umbrella labour union called an “indefinite general strike” until Yoon resigned.The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,410 following the U-turn.”Rarely does a combined sell-off in a country’s stocks, bonds and currency feel like a relief rally,” said Thomas Mathews, head of Asia-Pacific markets at Capital Economics.Mathews said the situation could have been “much worse” had the president not aborted his plan.”Investors now ‘only’ have to worry about a period of significant political uncertainty,” he said.The South Korean finance ministry and central bank looked to provide stability and reassure markets.”As announced together with the government, it has been decided to temporarily supply sufficient liquidity until the financial and foreign exchange markets stabilise,” the Bank of Korea said.It added that “the range of securities eligible for (repo) transactions and the target institutions will be expanded”.Deputy Prime Minister Choi Sang-mok, who also holds the economy portfolio, said financial authorities will keep international partners informed about developments.But Michael Wan at MUFG warned of remaining uncertainty, despite the measures to recover from the initial economic hit.”From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump’s proposed tariffs,” he said in a commentary. “This recent development could raise some further risk premium on the currency at least until we get clarity on political stability,” he added.The losses in Seoul came on a mixed day for Asia markets, with Tokyo, Singapore, Taipei, Mumbai and Jakarta rising but Shanghai, Sydney, Wellington, Bangkok and Manila falling. Hong Kong was marginally lower.London fell at the open, while Frankfurt hit another fresh record after ending Tuesday above 20,000 for the first time.Wall Street had provided a healthy lead, with the S&P 500 and Nasdaq hitting fresh records as investors try to assess the chances of the Federal Reserve slashing interest rates again this month.Even Paris eked out gains despite the brewing political crisis in France, where opposition lawmakers vowed to topple the three-month-old minority government of Prime Minister Michel Barnier in a no-confidence vote owing to a budget standoff.The euro remained wedged just above a 14-month low on concerns about the outlook for the eurozone’s number two economy.Oil prices extended gains after surging around 2.5 percent Tuesday on reports that major producers at the OPEC+ grouping were close to a deal to extend output limits.- Key figures around 0810 GMT -Seoul – Kospi Index: DOWN 1.4 percent at 2,464.00 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,276.39 (close)Hong Kong – Hang Seng Index: FLAT at 19,742.46 (close)Shanghai – Composite: DOWN 0.4 percent at 3,364.65 (close)London – FTSE 100: DOWN 0.1 percent at 8,353.21Euro/dollar: DOWN at $1.0508 from $1.0511 on TuesdayPound/dollar: UP at $1.2679 from $1.2673Dollar/yen: UP at 150.30 yen from 149.53 yen Euro/pound: DOWN at 82.90 from 82.94 penceWest Texas Intermediate: UP 0.3 percent at $70.12 per barrelBrent North Sea Crude: UP 0.3 percent at $73.85 per barrelNew York – Dow: DOWN 0.2 percent at 44,705.53 (close)

A multi-billion-dollar fraud scandal involving one of Vietnam’s most prominent tycoons exposed systemic weaknesses in the country’s banking sector, say analysts who warn other such cases could yet emerge. Judges on Tuesday upheld the death sentence of property developer Truong My Lan, who was convicted this year of embezzling vast sums from the Saigon Commercial Bank (SCB), which she controlled, having borrowed from tens of thousands of small investors.Corruption is extensive in Vietnam, which ranked 83rd out of 180 in Transparency International’s most recent Corruption Perception Index.But the monumental scale of Lan’s crime was unprecedented, with the $27 billion in losses prosecutors said she caused equivalent to Bosnia’s entire annual gross domestic product.Banking experts fear other damaging allegations are lurking in hidden recesses of the financial sector of the fast-growing economy, which is seen as a favoured destination for foreign investors looking for an alternative to China.”SCB is not a single problem, it is an illness of the whole economy,” banking expert Bui Kien Thanh told AFP.The Vietnamese financial system was “characterised by a lack of tight state management”, he said.”Similar issues are rampant in society, so (Vietnam) needs to study and fix the problem before others arise.”Experts say a key systemic weakness is in the regulation of the corporate bond market, where companies borrow money from investors.- Contemplating suicide -In most developed markets, bonds are issued through independently regulated brokers on the basis of a full prospectus, graded by ratings agencies, and traded on stock exchanges.But SCB, through its branches, misleadingly sold its bonds directly to retail customers, with staff trained for weeks on how to falsely reassure them their money was secure and the investment carried little risk.Tens of thousands of people invested their savings in the bonds and lost everything when the bank collapsed and had to be bailed out by authorities, some of them contemplating suicide.Most Vietnamese company debt is not rated for creditworthiness at all, with local ratings agency FiinRatings saying there were no corporate bonds with credit ratings in the country in the years before Lan’s arrest.That compared with an average of around 50 percent across the 10-member Association of South East Asian Nations (ASEAN).According to state media, a judge at Lan’s original trial asked police to look into the role played by staff at three of the world’s biggest accounting firms that audited SCB’s books — Ernst & Young, Deloitte and KPMG.None of the three responded to requests for comment by AFP.At every level of the Vietnamese financial sector — from employees on the ground to regulatory authorities — there is a lack of training on financial markets, the risks involved and regulatory obligations, Thanh said.On paper, Lan owned just five percent of shares in SCB, but at her trial, the court concluded that she effectively controlled more than 90 percent through family, friends and staff who were asked to hold stocks on her behalf. – ‘Can of worms’ -She then used her position to direct SCB management staff to withdraw money from the bank, over time transporting the equivalent of $4.4 billion in cash in trucks to her home and the offices of her Van Thinh Phat property firm.”They don’t question the paperwork… they just say, how are we going to do it? How fast can we do it?” said Khuong Huu Loc, an economist based in the United States. “The whole system is a game based on collusion,” he added. “The problem is, it gets so bad, (but) people let her continue on because you don’t want to open the can of worms.”That comes on top of the corruption that is deeply embedded in the system — one former chief inspector at the State Bank of Vietnam (SBV) was found guilty of accepting a $5 million bribe to overlook financial problems at SCB.Since the scandal emerged, Vietnam has stepped up an anti-corruption drive.But Carl Thayer, an emeritus professor at The University of New South Wales, warned foreign investors were concerned anti-graft efforts had “led to a chilling effect on the state bureaucracy and a slowing of procedures”, with officials fearing taking any decision could lead to their motives being questioned.Even so, he said the revelations from the case meant Vietnam “will have to take exceptional steps to audit the banking system effectively”.Even if there was nothing on the gargantuan scale of SCB waiting to be found, Loc said that “there could be a smaller version out there”.”The question is how many?”

In Vietnam’s heavily polluted capital Hanoi, teenage taxi driver Phung Khac Trung rides his electric motorbike through streets jammed with two-wheelers belching toxic fumes.Trung, 19, is one of a growing number of Generation-Z workers driving an e-bike trend in the communist nation where 77 million — largely petrol — motorbikes rule the roads.A cheap set of electric wheels can now be had for as little as $500, but issues include wasting hours at charging stations and people finding it hard to give up their habits.Trung has long hated riding in Hanoi, rated among the world’s top 10 polluted capital cities in 2023 by air quality technology firm IQAir. The air “is unbearable for motorbike riders”, said Trung, who is working as a motorbike taxi driver before applying to university.”When stopping at T-junctions… my only wish is to run the red light. The smell of petrol is so bad,” he told AFP after a morning rush-hour shift in air labelled “unhealthy” by IQAir. More than two thirds of the poisonous smog that blankets Hanoi for much of the year is caused by petrol vehicles, city authorities said last year. The World Bank puts the figure at 30 percent. Vietnam officials have ordered that a quarter of two-wheelers across the country must be electric by 2030 to help battle the air crisis.In 2023 just nine percent of two wheelers sold were electric, according to the International Energy Agency — although only in China was the share higher.- Hard to give up -Low running costs and cheap prices are pulling in students, who account for 80 percent of electric two-wheeler users in Vietnam, transport analyst Truong Thi My Thanh said.But for older drivers, it is harder to give up what they know.Fruit vendor Tran Thi Hoa, 43, has been driving a petrol motorbike for more than two decades and has no intention of switching. “The gasoline motorbike is so convenient. It takes me just a few minutes to fuel up,” she said.”I know e-bikes are good for the environment and can help me save on petrol, but I am too used to what I have,” Hoa told AFP from behind her facemask.Although most electric two-wheelers can easily be charged at home, fears over battery safety cause many to instead use one of the 150,000 EV power points installed by Nasdaq-listed VinFast across the country.After a fire last year in Hanoi that killed 56 people, several apartment buildings temporarily restricted EV charging — before police later ruled out battery charging as a possible cause.But some remain fearful, while others living in crowded apartment shares have no space to power up.Trung, whose VinFast scooter has a 200-kilometre (124-mile) range, spends up to three hours a day drinking tea and scrolling on his phone while he waits for his battery to charge — time he could be picking up fares.But home-grown start-up Selex, which makes e-bikes and battery packs, has pioneered a quick-fix — stations where riders can instantly swap a depleted battery for a new one. – ‘Swapping is critical’ -Bowen Wang, senior sustainable transport specialist at the World Bank, told a news conference this month, that it was delivery and taxi firms, as well as rural drivers, who could really benefit.They “typically drive much longer distances than urban users”, he said. “That’s where the swapping is critical.”Selex, which is now backed by the Asian Development Bank, has partnerships with delivery giants Lazada Logistics and DHL Express, who use e-bikes for some of their shipments. Vingroup — helmed by Vietnam’s richest man — runs a taxi company with a fleet of thousands of e-bikes, mostly in major cities.Selex founder Nguyen Phuoc Huu Nguyen, who left his job on a top-secret defence ministry research project to set up the company, urged the government to help drive momentum through incentives. He suggested that a vehicle registration fee waiver for EVs would help “end-users see the benefits of buying an e-bike”.”We all understand that EVs are good for the environment. But it needs investment.”Transport analyst Thanh emphasises that Hanoi must also embrace public transport alongside EVs if it wants to free up gridlocked streets. But if a shift to electric cannot fully solve Hanoi’s issues, the growth in ownership “is a beacon of hope”, Thanh told AFP.

South Korean stocks sank more than two percent Wednesday while the won rebounded from earlier losses after President Yoon Suk Yeol dramatically declared martial law overnight before reversing the decision hours later.The shock announcement sent shivers through the trading floor in Seoul and fuelled a political crisis in Asia’s third-biggest economy, with the already unpopular Yoon facing a possible impeachment.Investors are now keeping a close eye on developments in the country, with analysts pointing out that the upheaval comes as authorities steeled for the second presidency of Donald Trump, who has vowed to reignite his hardball trade policy.The Kospi index shed as much as 2.3 percent at the open as traders fretted over the impact of the events overnight, when Yoon declared South Korea’s first martial law in more than four decades, catching its global allies off guard.He said the decision was made “to safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements plundering people’s freedom and happiness”.However, he backed down hours later when lawmakers voted to oppose the declaration, while thousands of protesters took to the streets and the nation’s largest umbrella labour union called an “indefinite general strike” until Yoon resigned.The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,415 following the U-turn.The South Korean finance ministry looked to provide stability, saying it would deploy “unlimited liquidity” into the country’s financial markets if necessary.Michael Wan at MUFG warned that the country could face turmoil.”While the worst negative economic impact to South Korea including on tourism and domestic activity, may have been averted in the near-term, political uncertainty could still remain,” he said in a commentary. “From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump’s proposed tariffs, and this recent development could raise some further risk premium on the currency at least until we get clarity on political stability.”The losses in Seoul came as most other markets in Asia struggled, with Tokyo, Hong Kong, Sydney and Wellington down. Singapore, Taipei and Manila rose.Wall Street had provided a healthy lead, with the S&P 500 and Nasdaq hitting fresh records as investors try to assess the chances of the Federal Reserve slashing interest rates again this month.Meanwhile, Germany’s DAX ended above 20,000 for the first time.Even Paris eked out gains despite the brewing political crisis in France, where opposition lawmakers vowed to topple the three-month-old minority government of Prime Minister Michel Barnier in a no-confidence vote owing to a budget standoff.The euro remained wedged around a 14-month low of $1.0500 on concerns about the outlook for the eurozone’s number two economy.Oil prices were barely moved after surging around 2.5 percent Tuesday on reports that major producers at the OPEC+ grouping were close to a deal to extend output limits.- Key figures around 0230 GMT -Seoul – Kospi Index: DOWN 2.0 percent at 2,450.89Tokyo – Nikkei 225: DOWN 0.4 percent at 39,077.04 (break)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 19,687.75Shanghai – Composite: DOWN 0.2 percent at 3,372.50Euro/dollar: DOWN at $1.0504 from $1.0511 on TuesdayPound/dollar: DOWN at $1.2668 from $1.2673Dollar/yen: UP at 149.91 yen from 149.53 yen Euro/pound: DOWN at 82.92 from 82.94 penceWest Texas Intermediate: FLAT at $69.96 per barrelBrent North Sea Crude: FLAT at $73.64 per barrelNew York – Dow: DOWN 0.2 percent at 44,705.53 (close)London – FTSE 100: UP 0.6 percent at 8,359.41 (close)