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Markets rose Friday after a record day on Wall Street in response to Donald Trump’s tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Hong Kong, Shanghai, Sydney, Seoul, Mumbai and Bangkok all up, though Tokyo, Singapore, Wellington, Jakarta and Manila slipped. London and Frankfurt rose again after hitting fresh record highs Thursday, while Paris also advanced.Markets have enjoyed a broadly positive start to Trump’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”- Japan hikes rates -The Bank of Japan on Friday lifted borrowing costs to their highest level since 2008 in a well-telegraphed move, with data showing another jump in inflation last month that reinforced expectations for further tightening.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” the bank said in a statement.The yen briefly rallied to as strong as 154.85 per dollar after officials flagged more increases were likely in the pipeline as inflation remains elevated and officials slowly withdraw stimulus that has kept monetary policy at ultra-loose levels for years.Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation prints.BoJ chief Kazuo Ueda told a news conference that the pace and timing of future hikes was yet to be determined.”We would like to make a decision after we have studied the impact of this rate hike,” he said.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices were barely moved after Thursday’s losses that followed Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0815 GMT -Tokyo – Nikkei 225: DOWN 0.1 percent at 39,931.98 (close)Hong Kong – Hang Seng Index: UP 1.9 percent at 20,066.19 (close)Shanghai – Composite: UP 0.7 percent at 3,252.63 (close)London – FTSE 100: UP 0.2 percent at 8,585.56Dollar/yen: DOWN at 155.39 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0461 from $1.0415Pound/dollar: UP at $1.2385 from $1.2352Euro/pound: UP at 84.46 pence from 84.31 penceWest Texas Intermediate: DOWN 0.1 percent at $74.57 per barrelBrent North Sea Crude: FLAT at $78.28 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)

The Bank of Japan increased interest rates on Friday to their highest in 17 years and signalled more hikes to come, sending the yen higher against the dollar.The well-flagged 25-basis-point rise to 0.5 percent comes as data indicates the Japanese economy is developing in line with BoJ expectations and follows another bumper inflation reading.The move, which leaves borrowing costs at the highest since 2008, was also underpinned by “steadily” rising wages and financial markets being “stable on the whole”, the BoJ said in a statement.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” it said.If its outlook is met, “the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation”, it added.BoJ chief Kazuo Ueda told a news conference that the pace and timing of future hikes was yet to be determined.”We would like to make a decision after we have studied the impact of this rate hike,” he said.The hawkish comments sent the yen up as much as 0.7 percent against the dollar to 154.84 yen.Even as other central banks have raised borrowing costs in recent years — and started cutting again in 2024 —  the BoJ has remained an outlier.But it concluded last March that Japan’s “lost decades” of economic stagnation and static or falling prices were over, finally lifting rates above zero.That increase was followed by another in July that caught investors off guard and sparked turmoil in global equity and currency markets.This time Ueda prepared markets for an increase — some 75 percent of economists expected one — and the reaction was more muted on Friday.- Trump tariffs -“With no market turbulence after (US President Donald) Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, Ko Nakayama, chief economist of Okasan Securities Research, said before the announcement.”Raising just 25 basis points to 0.5 percent won’t cool the economy.”There are, however, concerns among Japanese companies that Trump could impose huge tariffs on imports from key trading partners, which many economists warn could drive up inflation.Japan’s economic growth slowed in the July-September quarter, partly because of one of the fiercest typhoons in decades and warnings of a major earthquake, which did not materialise.”The Bank of Japan is dialling back monetary policy support despite the poor run of economic data. The weak yen is a key reason,” Moody’s Analytics said in a note.Data released Friday showed that headline Japanese inflation hit 3.6 percent in December, or 3.0 percent adjusted for food prices, up from 2.7 percent in November.The core reading remained above the BoJ’s two-percent inflation target, which it has surpassed every month since April 2022.The BoJ on Friday also raised its inflation forecast for fiscal 2024 — running to March 31, 2025 — to 2.7 percent from 2.5 percent previously.For fiscal 2025 it now expects inflation of 2.4 percent and 2.0 percent in 2026 — both up from 1.9 percent previously forecast.Marcel Thieliant at Capital Economics said inflation was set to remain above the BoJ’s objective “for a while yet”.As a result “we’re sticking to our forecast that the policy rate will reach an above-consensus 1.25 percent by the end of next year”, Thieliant said before Friday’s announcement.kh-nf-jug-stu/dan

The Bank of Japan hiked interest rates on Friday to their highest level in 17 years and signalled more were in the pipeline despite fears of turmoil under US President Donald Trump.The well-flagged 25-basis-point increase to 0.5 percent comes as economic data indicates the world’s fourth-biggest economy was developing in line with the policymakers’ expectations and follows another bumper reading on inflation.The move, which leaves borrowing costs at the highest since 2008, was underpinned by healthy underlying inflation, firms “steadily” raising wages and financial markets being “stable on the whole”, the BoJ said in a statement.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” it said.If its outlook is met, “the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation”, it added.The news, and expectations for more hikes in the future, saw the yen strengthen to 155.20 per dollar — from 156.3 earlier — having weakened in recent months following Trump’s election and bets the Federal Reserve will slow down its interest rate cut campaign this year.Even as other central banks have raised borrowing costs in recent years, the BoJ has remained an outlier, maintaining an ultra-loose stance in an attempt to spark growth and inflation.But it concluded last March that Japan’s “lost decades” of economic stagnation and static or falling prices were over, finally lifting rates above zero, where they had been for more than a decade in a bid to kickstart inflation and growth.The March increase — which was the first since 2007 — was followed by another in July that caught investors off guard and sparked turmoil in global equity and currency markets.This time, BoJ chief Kazuo Ueda prepared markets for an increase — some 75 percent of economists expected one — and the reaction was more muted on Friday.- Trump tariffs -“With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, Ko Nakayama, chief economist of Okasan Securities Research, said before the announcement.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said before the decision was announced.There are, however, concerns among Japanese companies that Trump could throw a spanner into the works by imposing huge tariffs on imports from key trading partners, which many economists warn could drive up inflation.Japan’s economic growth slowed in the July-September quarter, partly because of one of the fiercest typhoons in decades and warnings of a major earthquake, which did not materialise.”The Bank of Japan is dialling back monetary policy support despite the poor run of economic data. The weak yen is a key reason,” Moody’s Analytics said in a note.Data released Friday showed that headline Japanese inflation hit 3.6 percent in December, or 3.0 percent adjusted for food prices, up from 2.7 percent in November.The core reading remained above the BoJ’s two-percent inflation target, which it has surpassed every month since April 2022.The BoJ on Friday also raised its inflation forecast for fiscal 2024 — running to March 31, 2025 — to 2.7 percent from 2.5 percent previously.For fiscal 2025 it now expects inflation of 2.4 percent and 2.0 percent in 2026 — both up from 1.9 percent previously forecast.Marcel Thieliant at Capital Economics said inflation was set to remain above the BoJ’s objective “for a while yet”.As a result “we’re sticking to our forecast that the policy rate will reach an above-consensus 1.25 percent by the end of next year”, Thieliant said before Friday’s announcement.kh-nf-jug-stu/dan

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump’s tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, the president pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Bangkok all up, though Singapore, Wellington, Mumbai, Jakarta and Manila slipped.Markets have enjoyed a broadly positive start to the president’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”- Japan hikes rates -The Bank of Japan on Friday lifted borrowing costs to their highest level since 2008 in a well-telegraphed move, with data showing another jump in inflation last month that reinforced expectations for further tightening.”Japan’s economic activity and prices have been developing generally in line with the Bank’s outlook, and the likelihood of realising the outlook has been rising,” the bank said in a statement.The yen rallied against the dollar after officials flagged that more increases were likely in the pipeline as inflation remains elevated and officials slowly withdraw stimulus that has kept monetary policy at ultra-loose levels for years.”With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, said Ko Nakayama, chief economist of Okasan Securities Research.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said. Moody’s Analytics said “the weak yen is a key reason” for the hike, along with a run of forecast-beating inflation prints.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices extended Thursday’s losses after Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0400 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 40,105.92Hong Kong – Hang Seng Index: UP 1.8 percent at 20,057.46 (break)Shanghai – Composite: UP 0.7 percent at 3,253.79 (break)Dollar/yen: DOWN at 155.50 yen from 156.03 yen on ThursdayEuro/dollar: UP at $1.0447 from $1.0415Pound/dollar: UP at $1.2394 from $1.2352Euro/pound: DOWN at 84.30 pence from 84.31 penceWest Texas Intermediate: DOWN 0.2 percent at $74.47 per barrelBrent North Sea Crude: DOWN 0.2 percent at $78.14 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)London – FTSE 100: UP 0.2 percent at 8,565.20 (close)

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump’s tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.In a much-anticipated speech via video link at the Davos World Forum in Switzerland, the new president pushed for lower interest rates and said he would cut taxes for companies investing in the United States while imposing tariffs on those who do not.He also called on Saudi Arabia and OPEC to lower oil prices, adding that “when the oil comes down, it’ll bring down prices” and in turn bring interest rates down. His comments come after he said on the campaign trail that he would slash taxes, regulations and immigration while hitting key trading partners with tariffs.That fuelled worries among some economists that he could reignite inflation and cause the Federal Reserve to pause its recent run of rate cuts, or even increase them.US traders appeared to welcome the speech, with the S&P 500 hitting a record high, while the Dow and Nasdaq also advanced.Asia mostly followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul and Singapore all up, though Shanghai and Manila slipped with Manila barely changed.Markets have enjoyed a broadly positive start to the president’s second term amid relief that while he has warned about imposing big tariffs on key partners, he has so far been less abrasive than his first four years.Matt Burdett and Adam Sparkman at Thornburg Investment Management said that could be due to circumstances.”Eight years ago, Trump’s aggressive trade policies were implemented against a backdrop of low inflation and low rates, creating room for bold actions,” they said in a commentary. “Today, elevated price levels are a key concern for voters and policymakers alike. Given this reality, we question if Trump’s tariff posturing may now be aimed more at pressuring China and other foreign countries into negotiating favourable trade terms for the US.”The yen was slightly down on the dollar, with a rate hike largely priced in when the Bank of Japan ends its meeting Friday, with data showing another jump in inflation last month reinforcing expectations.The forecast increase to 0.5 percent would mark the highest level since 2008.”With no market turbulence after Trump’s inauguration,” conditions for the BoJ to hike its policy rate have been met, said Ko Nakayama, chief economist of Okasan Securities Research.”Raising just 25 basis points to 0.5 percent won’t cool the economy,” he said. Analysts are tipping the lift even as the economy struggles, but Moody’s Analytics said “the weak yen is a key reason”, along with a run of forecast-beating inflation prints.The yen has come under pressure against the dollar in recent months after the Fed dialled back its expectations for rate cuts this year and the concerns over Trump’s impact on inflation.The BoJ decision comes ahead of the Fed’s meeting next week, which will be closely watched for its views on the outlook under the new president.Oil prices extended Thursday’s losses after Trump’s call to Riyadh and OPEC, with a recent build in US stockpiles adding to the weakness.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 40,192.85 (break)Hong Kong – Hang Seng Index: UP 1.7 percent at 20,032.67Shanghai – Composite: UP 0.2 percent at 3,237.43Dollar/yen: UP at 156.31 yen from 156.03 yen on ThursdayEuro/dollar: DOWN at $1.0413 from $1.0415Pound/dollar: UP at $1.2354 from $1.2352Euro/pound: DOWN at 84.30 pence from 84.31 penceWest Texas Intermediate: DOWN 0.4 percent at $74.34 per barrelBrent North Sea Crude: DOWN 0.4 percent at $77.99 per barrelNew York – Dow: UP 0.9 percent at 44,565.07 (close)London – FTSE 100: UP 0.2 percent at 8,565.20 (close)

Japan’s much-loved “tonkatsu” pork cutlets come with a mound of freshly shredded cabbage, but a surge in the price of the humble vegetable has prompted chef Katsumi Shinagawa to skimp on servings.The culprit is a changing climate. Last year’s record summer heat and heavy rain ruined crops, driving up the cost of the leafy green in what media have dubbed a “cabbage shock”.It is the latest pain point for shoppers and eateries already squeezed by inflation, with energy bills up along with the price of staples from rice to flour and cooking oil.Shinagawa’s Tokyo restaurant Katsukichi offers free cabbage refills alongside its juicy, deep-fried cutlets — a common practice with tonkatsu, a national comfort food.But with cabbage now over three times more expensive than usual, according to the agriculture ministry, the restaurant has had to make each serving slightly smaller.”I was ready to cope when the price of flour started rising, but not cabbage,” Shinagawa told AFP, explaining that “tonkatsu and cabbage are like inseparable friends”.”Cabbages sold at supermarkets are now mind-blowingly expensive,” he added. “Half-sized ones used to be around 100 yen ($0.60) per head, but they are now like 400 yen.”It has become a hot topic on social media, with many users aghast after a head of cabbage was recently given an eye-popping price tag of 1,000 yen at a supermarket in the Hyogo region.”I never imagined cabbage would ever become so expensive that it’s basically a delicacy,” one user lamented on X.- Extreme heat -Climate change has made extreme weather more frequent and heatwaves more intense worldwide.Last year Japan sweltered through its joint hottest summer since records began, followed by its warmest autumn.”It was so hot that some cabbages were seared to death. The heat dehydrated them and made them wither,” said Morihisa Suzuki from a federation of agricultural cooperatives in Aichi, one of Japan’s largest cabbage-growing regions.Days of intense localised rain, then a prolonged dry period with little sunshine have made things worse.As a result, farmers in Aichi are grappling with yields an estimated 30 percent lower than usual, the groupsays.Neighbouring South Korea — where a different variety of cabbage is fermented to make the all-important side dish kimchi — has also suffered.Government data shows that in mid-January, cabbage prices soared 75 percent there compared to the same period last year.Shin Mi-ja, a shopkeeper in Seoul, told AFP that cabbage prices were high “because of the heatwave and heavy rains”.”Overall prices for vegetables have risen, so people don’t really want to buy” cabbage, even with the Lunar New Year holiday approaching, she said.- Inflation -In Japan, the heat has also made lettuce, green onion and “daikon” radish more expensive at the checkout.And rice prices are soaring after harvests were hit by high temperatures and water shortages.Official inflation data released Friday showed that the grain jumped a whopping 64.5 percent in December year-on-year.Overall consumer prices were up 3.6 percent, or 3.0 percent when adjusted for food prices. The Bank of Japan was expected to raise interest rates later Friday.Meanwhile bird flu outbreaks have created supply shortages for eggs, pushing up their price too.The weak yen as well as labour shortages and rising transport costs have also created a perfect storm for Japanese restaurants.Japan saw a record 894 restaurant bankruptcies last year due to inflation, the cheaper yen and the end of pandemic-era government subsidies, according to research firm Teikoku Databank.Teikoku expects price rises in 2025 for around 6,000 food items, from bread to beer and noodles.And convenience chain 7-Eleven said this week it would raise prices nationwide for onigiri rice balls, sushi and other rice-based items.Chef Shinagawa does not want to pass on the price increases to his customers, however.For now, “we’re persevering,” he said.

The S&P 500 finished at a fresh all-time record Thursday as US stocks shrugged off early weakness, welcoming President Donald Trump’s pledge to cut corporate taxes.In a much-anticipated video appearance at the World Economic Forum in Davos, Trump pushed for lower interest rates and said he would cut taxes for companies investing in the United States while hiking tariffs on those who don’t.Trump also called for Saudi Arabia and OPEC to reduce oil prices, jolting crude prices lower.After opening in negative territory as US Treasury yields climbed, the broad-based S&P 500 finished up 0.5 percent at 6,118.71, a new record.Investors cheered Trump’s message on tax cuts, which the billionaire US leader held out as a “carrot” to attract investment as compared with the “stick” of tariffs, said Jack Ablin of Cresset Capital.”Certainly everyone understands the tariff message and now we’re hearing more about the tax incentives,” said Ablin.Ablin noted that Trump has not advanced a campaign proposal to hike tariffs on Chinese goods by 60 percent, evidence of some “moderation” in the returning president’s tone.Investors have largely welcomed the first few days of Trump 2.0. However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.”Investors are still weighing Trump’s tariff talk, though history suggests his bark often echoes louder than his bite,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.Earlier, trading in Asia got a lift from Wednesday’s Wall Street rally that saw tech titans including Nvidia, Microsoft and Arm surge after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo’s gains.Elsewhere, Chinese authorities unveiled measures to bolster the country’s stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.The moves provided some support with Shanghai’s stock market advancing, but Hong Kong gave up early gains to end lower.”Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery,” said AJ Bell investment director Russ Mould.The yen edged up against the dollar ahead of the Bank of Japan’s policy decision Friday, when many investors expect it to raise interest rates for the third time since March.”Economic data continues to support the BoJ’s case for a rate hike,” said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.In European equity trading, Frankfurt set a new record high and London set another closing record. Paris also rose. – Key figures around 2200 GMT -New York – Dow: UP 0.9 percent at 44,565.07 (close)New York – S&P 500: UP 0.5 percent at 6,118.71 (close)New York – Nasdaq Composite: UP 0.2 percent at 20,053.68 (close)London – FTSE 100: UP 0.2 percent at 8,565.20 (close)Paris – CAC 40: UP 0.7 percent at 7,892.61 (close)Frankfurt – DAX: UP 0.7 percent at 21,411.53 (close)Tokyo – Nikkei 225: UP 0.8 percent at 39,958.87 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)Shanghai – Composite: UP 0.5 percent at 3,230.16 (close)Euro/dollar: UP at $1.0415 from $1.0409 on WednesdayPound/dollar: UP at $1.2352 from $1.2316Dollar/yen: DOWN at 156.03 yen from 156.53 yenEuro/pound: DOWN at 84.31 pence from 84.51 penceWest Texas Intermediate: DOWN 1.1 percent at $74.62 per barrelBrent North Sea Crude: DOWN 0.9 percent at $78.29 per barrelburs-jmb/acb

A tech-fuelled rally on Wall Street faltered on Thursday as concerns about interest rates and high stock valuations sapped investor confidence.Crude prices slumped after US President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices.Wall Street has been on a tear over the past week, with the S&P 500 setting a record high Wednesday in the wake of a massive AI investment announcement by Trump.But the tech-heavy Nasdaq Composite dipped on Thursday and the S&P 500 edged higher without moving into record territory.”There is some natural hesitation today given how far the market has come in just seven trading sessions and tariff uncertainty lurking in the background,” said Briefing.com analyst Patrick O’Hare.Furthermore the yield on 10-year US Treasuries edged up on Thursday.Higher borrowing costs mean that companies, particularly tech firms, see their earnings compressed, with high stock prices compared to their earnings as a consequence.”The stretched earnings multiple is a headwind running into an earnings reporting period that has high expectations going into next week’s results from the likes of Microsoft, Meta Platforms, Tesla and Apple,” O’Hare said.Investors have largely welcomed the first few days of Trump 2.0 as he held off immediately returning to the hardball trade policies of his first term.However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.”Investors are still weighing Trump’s tariff talk, though history suggests his bark often echoes louder than his bite,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.Trump, addressing world business and political leaders at the World Economic Forum in Davos by video link, told them to manufacture their products in the United States or face tariffs.He also urged Saudi Arabia and OPEC to bring down the cost of oil, sending global market prices for crude lower.Trump also demanded that US interest rates come down.Trading in Asia got a lift from Wednesday’s Wall Street rally that saw tech titans including Nvidia, Microsoft and ARM surge after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo’s gains.Elsewhere, Chinese authorities unveiled measures to bolster the country’s stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.The measures provided some support with Shanghai’s stock market advancing, but Hong Kong gave up early gains to end lower.”Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery,” said AJ Bell investment director Russ Mould.The yen edged up against the dollar ahead of the Bank of Japan’s policy decision Friday, when many investors expect it to raise interest rates for the third time since March.”Economic data continues to support the BoJ’s case for a rate hike,” said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.In European equity trading, Frankfurt set a new record high and London set another closing record but short of its record. Paris also rose. – Key figures around 1630 GMT -New York – Dow: UP 0.5 percent at 44,391.70 pointsNew York – S&P 500: UP 0.2 percent at 6,096.57New York – Nasdaq Composite: DOWN 0.2 percent at 19,975.85London – FTSE 100: UP 0.2 percent at 8,565.20 (close)Paris – CAC 40: UP 0.7 percent at 7,892.61 (close)Frankfurt – DAX: UP 0.7 percent at 21,411.53 (close)Tokyo – Nikkei 225: UP 0.8 percent at 39,958.87 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)Shanghai – Composite: UP 0.5 percent at 3,230.16 (close)Euro/dollar: DOWN at $1.0412 from $1.0425 on WednesdayPound/dollar: UP at $1.2343 from $1.2313Dollar/yen: DOWN at 155.99 yen from 156.45 yenEuro/pound: DOWN at 84.35 pence from 84.48 penceWest Texas Intermediate: DOWN 0.6 percent at $75.01 per barrelBrent North Sea Crude: DOWN 0.4 percent at $78.66 per barrelburs-rl/sbk

A tech-fuelled rally on Wall Street faltered on Thursday as concerns about interest rates and high stock valuations sapped investor confidence.Wall Street has been on a tear over the past week, with the S&P 500 setting a record high in the wake of US president Donald Trump’s massive AI-investment announcement.But both the S&P 500 and tech-heavy Nasdaq Composite fell at the start of trading Thursday.”There is some natural hesitation today given how far the market has come in just seven trading sessions and tariff uncertainty lurking in the background,” said Briefing.com analyst Patrick O’Hare.Furthermore the yield on 10-year Treasuries edged up on Thursday.Higher borrowing costs means that companies, particularly tech firms, see their earnings compressed, and as a consequence their stock prices high compared to their earnings.”The stretched earnings multiple is a headwind running into an earnings reporting period that has high expectations going into next week’s results from the likes of Microsoft, Meta Platforms, Tesla and Apple,” O’Hare said.Investors have largely welcomed the first few days of Trump 2.0 as he held off immediately returning to the hardball trade policies of his first term.However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.”Investors are still weighing Trump’s tariff talk, though history suggests his bark often echoes louder than his bite,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.Trading in Asia got a lift from Wednesday’s Wall Street rally that saw tech titans including Nvidia, Microsoft and ARM surge after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo’s gains.Elsewhere, Chinese authorities unveiled measures to bolster the country’s stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.The measures provided some support with Shanghai’s stock market advancing, but Hong Kong gave up early gains to end lower.”Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery,” said AJ Bell investment director Russ Mould.The yen edged up against the dollar ahead of the Bank of Japan’s policy decision Friday, when many investors expect it to raise interest rates for the third time since March.”Economic data continues to support the BoJ’s case for a rate hike,” said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.In European equity trading, Frankfurt set a new record high and London was just shy its all-time high. Paris also rose. – Key figures around 1430 GMT -New York – Dow: UP less than 0.1 percent at 44,181.03 pointsNew York – S&P 500: DOWN 0.1 percent at 6,077.70New York – Nasdaq Composite: DOWN 0.5 percent at 19,909.85London – FTSE 100: UP 0.1 percent at 8,557.47Paris – CAC 40: UP 0.5 percent at 7,876.75Frankfurt – DAX: UP 0.4 percent at 21,328.51Tokyo – Nikkei 225: UP 0.8 percent at 39,958.87 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)Shanghai – Composite: UP 0.5 percent at 3,230.16 (close)Euro/dollar: DOWN at $1.0414 from $1.0425 on WednesdayPound/dollar: UP at $1.2324 from $1.2313Dollar/yen: DOWN at 156.36 yen from 156.45 yenEuro/pound: UP at 84.53 pence from 84.48 penceWest Texas Intermediate: UP less than 0.1 percent at $75.48 per barrelBrent North Sea Crude: UP 0.1 percent at $79.09 per barrelburs-rl/js

Global stock markets mostly rose Thursday following a tech-fuelled rally on Wall Street spurred by US president Donald Trump’s massive AI-investment announcement.Investors have largely welcomed the first few days of Trump 2.0 as he held off immediately returning to the hardball trade policies of his first term.However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.”Investors are still weighing Trump’s tariff talk, though history suggests his bark often echoes louder than his bite,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.In Europe, London retreated from its record highs but Frankfurt pushed on with its winning streak and Paris also rose. Tech titans including Nvidia, Microsoft and ARM helped lead a surge in New York on Wednesday, after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo’s gains.Elsewhere, Chinese authorities unveiled measures to bolster the country’s stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.The measures provided some support with Shanghai’s stock market advancing, but Hong Kong gave up early gains to end lower.”Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery,” said AJ Bell investment director Russ Mould.Seoul shed more than one percent after South Korea’s central bank revealed weak economic growth data for the fourth quarter as the country was hit by the fallout from impeached President Yoon Suk Yeol’s brief declaration of martial law.The yen edged up against the dollar ahead of the Bank of Japan’s policy decision Friday, when many investors expect it to raise interest rates for the third time since March.”Economic data continues to support the BoJ’s case for a rate hike,” said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.1 percent at 8,539.00Paris – CAC 40: UP 0.3 percent at 7,861.18Frankfurt – DAX: UP 0.3 percent at 21,317.70Tokyo – Nikkei 225: UP 0.8 percent at 39,958.87 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)Shanghai – Composite: UP 0.5 percent at 3,230.16 (close)New York – Dow: UP 0.3 percent at 44,156.73 (close)Euro/dollar: DOWN at $1.0413 from $1.0425 on WednesdayPound/dollar: UP at $1.2320 from $1.2313Dollar/yen: DOWN at 156.40 yen from 156.45 yenEuro/pound: UP at 84.51 pence from 84.48 penceWest Texas Intermediate: UP 0.1 percent at $75.51 per barrelBrent North Sea Crude: UP 0.1 percent at $79.08 per barrel