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Seoul’s Kospi index hit another record high Thursday on a mixed day for equities following a strong lead from Wall Street but with traders giving a tepid response to forecast-beating earnings from chip titan Nvidia.Asian tech firms have enjoyed a blockbuster start to the year as investors reassess their AI bets, with attention turning to “upstream” firms such as chipmakers and away from Wall Street’s “downstream” companies that run apps and software.The shift has come amid growing concerns about the hundreds of billions of dollars pumped into artificial intelligence and when that will see a return, while a slew of new tools has raised fears the technology will disrupt other businesses.Still, Seoul climbed more than three percent to a fresh peak Thursday, a day after breaking 6,000 points for the first time, led again by a 7.1 percent surge in chipmaker Samsung and an 8.2 percent rally in rival SK hynix. The Kospi index is now up nearly 50 percent already this year.Tokyo hit a new record, too, while Sydney, Wellington, Manila, Bangkok and Jakarta also enjoyed buying. Hong Kong, Singapore and Mumbai edged down, with Shanghai and Taipei flat.London opened in the red with Frankfurt while Paris edged up.While the mood remains upbeat, sentiment was tempered by disappointment over Nvidia’s earnings, despite posting record revenue of $68.1 billion in October-December, thanks to insatiable demand for its AI chips.It also forecast first-quarter revenue of between $76.4 billion and $79.6 billion, far above estimates of $72.8 billion.Shares in the firm — which last year became the first to top $5 trillion in market capitalisation — dipped in after-hours trade in New York, with analysts saying expectations had become almost impossible to meet.”There was a time when beating the number was enough. Now you have to beat the whisper, crush the dream, and torch the most optimistic sell-side spreadsheet in Silicon Valley just to keep the tape happy,” wrote SPI Asset Management’s Stephen Innes.”On paper, this was another thunderclap quarter. And yet the stock dipped. The market is no longer pricing growth. It is pricing perpetuity.”And Charu Chanana at Saxo said: “We’ve moved from Phase One, where (capital expenditure) automatically meant upside for the entire ecosystem, to Phase Two, where investors want proof of monetisation and spending discipline.”The key question is no longer ‘who can spend the most’, but ‘who can turn that spend into durable profits’.”That’s why AI volatility can continue even after a big Nvidia beat.”Futures in all three main indexes on Wall Street were in the red, after they had enjoyed a strong run-up Wednesday.On currency markets the yen clawed back some losses against the dollar that came after it emerged that Japanese Prime Minister Sanae Takaichi had nominated two academics to the Bank of Japan board who are considered policy doves.That came after reports had earlier said she had told the central bank’s boss Kazuo Ueda of her concern about hiking interest rates further.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 58,753.39 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 26,381.02 (close)Shanghai – Composite: FLAT at 4,146.63 (close)London – FTSE 100: DOWN 0.3 percent at 10,774.79 Dollar/yen: DOWN at 156.05 yen from 156.46 yen on WednesdayEuro/dollar: UP at $1.1816 from $1.1805Pound/dollar: DOWN at $1.3548 from $1.3554Euro/pound: UP at 87.22 pence from 87.10 penceWest Texas Intermediate: UP 0.1 percent at $65.48 per barrelBrent North Sea Crude: UP 0.1 percent at $70.95 per barrelNew York – Dow: UP 0.6 percent at 49,482.15 (close)

Zimbabwe’s ban on raw lithium exports is forcing Chinese miners to rethink their strategy, speeding up plans to process the metal locally instead of shipping it to China’s vast rechargeable battery industry.The country is Africa’s largest lithium producer and has one of the world’s largest reserves, according to the US Geological Survey (USGS).Zimbabwe already banned the export of lithium ore in 2022 and in 2025 announced it would halt exports of lithium concentrates from January 2027.But on Wednesday it imposed the ban with immediate effect, leaving unclear what the lithium mining sector will do in the short term as Zimbabwe currently has no facilities to process lithium concentrates.The move, which also included a blanket ban on export of all raw minerals, aims to capture the added value of refining and processing, thus creating jobs and additional government tax revenue.But critics say the push to refine should have come sooner, with Zimbabwe already having lost out on several years of revenues for the hard-pressed local economy.Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt, has spent $400 million on a processing plant that should be operational in the coming weeks, its representative Patience Chizodza told state broadcaster ZBC. It will reportedly be the first factory in Africa to refine lithium concentrate into lithium sulfate — a powdered form that is one step closer to the product used in batteries.The facility should be capable of handling 400,000 tonnes a year of concentrate.The Zimbabwe state-owned Mutapa Energy Minerals is set to start work in the coming months on a similar plant, chief executive officer Innocent Rukweza told reporters earlier this month.”We expect that by mid-year — around June at the latest — construction of a concentrate-processing plant will be under way,” Rukweza said.The $270-million facility funded by Chinese firms would be able to process 600,000 tonnes annually, he said. – ‘Too little, too late’ – Bikita Minerals, Zimbabwe’s largest lithium mine and owned by Sinomine Resources Group, is working on feasibility studies for the construction of a lithium sulphate plant in December, spokesperson Tinomuda Chakanyuka said.”The project, which will be developed in phases, represents an estimated investment of approximately $500 million from shareholders,” Chakanyuka told AFP. He said the facility will increase local capacity to separate minerals and “contribute to Zimbabwe’s broader industrialisation and export diversification objectives.”Global demand for the soft, white metal was up 20 percent last year from 2024, with a key factor being EV sales growth in China and Europe and increased demand for batteries, the USGS said.Zimbabwe’s exports of lithium concentrate rose to 1.5 million metric tonnes last year, generating government revenue of $571.6 million, the Minerals Marketing Authority of Zimbabwe (MMCZ) announced in early February.The Zimbabwean government’s moves to ban exports of raw minerals didn’t impress its critics.”Government is doing too little, too late,” said Farai Maguwu, executive director of Zimbabwe’s Centre for Natural Resource Governance (CNRG).With the new rush for critical minerals around the world, “people are asking serious questions about the benefits to the producer country,” he said.”A country like Zimbabwe is exporting raw lithium and, in the process, enriching China at its own expense,” Maguwu said.Instead it should be building its own “mine-to-market ecosystem” that manufactures and markets lithium products, he added.Economist Godfrey Kanyenze accused the government of a “deficit in policy implementation” when it effectively gave a five-year grace period on the 2022 lithium ore ban by allowing exports of raw concentrates.Kanyenze said state oversight at Chinese-owned lithium mines was limited, making it difficult to determine how much companies actually produced and earned.There have also been allegations of environmental damage and exploitation of workers, including by paying low wages.”Zimbabwe must learn from countries like Norway, Botswana and Kuwait, which safeguard their natural resources through firm, consistent and strategic policy frameworks,” he said.

Seoul’s Kospi index hit another record high Thursday on a mixed day for Asian equities following a strong lead from Wall Street but with traders giving a tepid response to forecast-beating earnings from chip titan Nvidia.Tech firms in the region have enjoyed a blockbuster start to the year as investors reassess their AI bets, with attention turning to “upstream” firms such as chipmakers and away from Wall Street’s “downstream” companies that run apps and software.The shift has come amid growing concerns about the hundreds of billions of dollars pumped into artificial intelligence and when that will see a return, while a slew of new tools has raised fears the technology will disrupt other businesses.Still, South Korea’s Kospi climbed two percent to a fresh peak Thursday, a day after breaking 6,000 points for the first time, led again by chipmakers Samsung and SK hynix.Tokyo also hit a new record, while Sydney, Wellington, Manila and Jakarta also enjoyed buying. Hong Kong, Shanghai, Singapore and Taipei edged down.While the mood remains upbeat, sentiment was tempered by disappointment over Nvidia’s earnings, despite posting record revenue of $68.1 billion in October-December, thanks to insatiable demand for its AI chips.It also forecast first-quarter revenue of between $76.4 billion and $79.6 billion, far above estimates of $72.8 billion.Shares in the firm — which last year became the first to top $5 trillion in market capitalisation — dipped in after-hours trade in New York, with analysts saying expectations had become almost impossible to meet.”There was a time when beating the number was enough. Now you have to beat the whisper, crush the dream, and torch the most optimistic sell-side spreadsheet in Silicon Valley just to keep the tape happy,” wrote SPI Asset Management’s Stephen Innes.”On paper, this was another thunderclap quarter. And yet the stock dipped. The market is no longer pricing growth. It is pricing perpetuity.”And Charu Chanana at Saxo said: “We’ve moved from Phase One, where (capital expenditure) automatically meant upside for the entire ecosystem, to Phase Two, where investors want proof of monetisation and spending discipline.”The key question is no longer ‘who can spend the most’, but ‘who can turn that spend into durable profits’.”That’s why AI volatility can continue even after a big Nvidia beat.”Futures in all three main indexes on Wall Street were in the red, after they had enjoyed a strong run-up Wednesday.On currency markets the yen clawed back some losses against the dollar that came after it emerged that Japanese Prime Minister Sanae Takaichi had nominated two academics to the Bank of Japan board who are considered policy doves.That came after reports had earlier said she had told the central bank’s boss Kazuo Ueda of her concern about hiking interest rates further.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 58,856.98 (break)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 26,644.06Shanghai – Composite: DOWN 0.1 percent at 4,141.41Dollar/yen: DOWN at 155.84 yen from 156.46 yen on WednesdayEuro/dollar: UP at $1.1825 from $1.1805Pound/dollar: UP at $1.3569 from $1.3554Euro/pound: UP at 87.15 pence from 87.10 penceWest Texas Intermediate: UP 0.3 percent at $65.63 per barrelBrent North Sea Crude: UP 0.4 percent at $71.10 per barrelNew York – Dow: UP 0.6 percent at 49,482.15 (close)London – FTSE 100: UP 1.2 percent at 10,806.41 (close)

Cambodia’s Prime Minister Hun Manet said on Wednesday that scam centres were destroying his country’s economy and giving the nation a bad name — pushing back on allegations of government connivance.The nation has emerged as a hotspot for crime syndicates running a multibillion-dollar fraud industry that sees scammers lure internet users globally into fake romantic relationships and cryptocurrency investments.”The scam network, what we call the black economy, is destroying our honest economy. It has put a bad reputation on Cambodia,” Hun Manet told AFP in a rare interview with international media, saying this was harming tourism and investment.”This is the reason why we need to clean this out.” A clampdown has resulted in thousands of arrests, according to government officials, and the recent extradition to China of a former adviser to Cambodia’s leaders.But some industry experts have questioned the authenticity of such efforts, pointing to alleged links between Cambodian officials and cyberscam networks.Hun Manet, who took over as prime minister from his father Hun Sen in 2023, conceded the crime had indirectly boosted some business activities and provided jobs in the country, but denied Cambodia had profited from it.”Yes, the scam centre may produce some direct result to real estate, to some investment, the building, the buying, how to make the centres,” he said.”But most of the proceeds do not go into the government of Cambodia,” the prime minister said.Cambodia hosts dozens of the scam centres with an estimated 100,000 people — many victims of human trafficking — perpetrating online scams, experts say.A 2024 report by the United States Institute of Peace estimated the return on cyberscamming in Cambodia to exceed $12.5 billion annually — half the country’s formal GDP — but Hun Manet denied the country was dependent on scams.”A lot of people were saying that the GDP of Cambodia relies on the scam. No. We rely on pure economies such as tourism, manufacturing, and others,” he said.Operating from various Southeast Asian countries, those conducting the scams are sometimes willing volunteers, sometimes trafficked foreign nationals who have been trapped and forced to work under threat of torture.Initially largely targeting Chinese speakers — from whom they have extracted billions, prompting rising public anger — the scammers have expanded their operations into multiple languages to steal vast sums from victims around the world.- ‘Kingpin’ -Last year, a series of crackdowns largely driven by Beijing — which wields significant economic and diplomatic influence in the region — saw thousands of scam workers released from centres in Myanmar and Cambodia and repatriated to their home countries, many of them to China.The push netted its biggest player so far in January, with the arrest and extradition of Chinese-born tycoon Chen Zhi from Cambodia.Chen, who had been indicted in October by US authorities, served as an adviser to both Hun Manet and his father.”We did not know that he was the kingpin,” Hun Manet told AFP in Brussels, where he stopped as part of an international trip to shore up diplomatic support over a border conflict with Thailand. A background check did not raise red flags, he added, noting that Chen’s Prince Group conglomerate, which US authorities say was a cover for a “sprawling cyber-fraud empire”, had a presence in many countries including Britain.Since around 2015, Prince Group has operated across more than 30 countries under the guise of legitimate real estate, financial services and consumer businesses, US prosecutors said.Before allegations against him were brought forward, to Phnom Penh he was “just a businessman, contributing to the economy”.”Whatever the activities, we (did) not know,” Hun Manet said, adding the authorities took action when they learnt about the alleged wrongdoing.Chen directed operations of forced labour compounds across Cambodia, where trafficked workers were held in prison-like facilities surrounded by high walls and barbed wire, according to US prosecutors.Prince Group has denied the allegations.Hun Manet said his former advisor was extradited to China rather than the US due to his citizenship. Chen was stripped of his Cambodian nationality after it emerged he used a fake document to obtain it, the prime minister said. That left him with “only Chinese nationality” — compelling Cambodian authorities to extradite him to his home country, he added. 

Stock markets in Asia and Europe reached record highs Wednesday while Wall Street indices continued to advance on easing worries about the AI sector and ahead of chip behemoth Nvidia releasing its earnings.Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates.In New York, the tech-centered Nasdaq again led the way, rising 1.3 percent. Global equities gained “as the apocalyptic AI narrative takes a small step back”, noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.Investors have adopted a more sanguine view following a presentation by AI company Anthropic that emphasized the compatibility of its technology with existing programs.Hopes are also elevated ahead of an earnings report from Nvidia later Wednesday.”People are speculating that likely they’ll (Nvidia) have good things to say,” said Briefing.com analyst Patrick O’Hare, who also attributed the rise to investor bargain hunting after earlier declines.A surge in shares in big tech firms deploying AI helped drive equity markets to record highs last year. Investors have sometimes been seized in recent months by concern that share prices have become over-valued and that the technology might not become profitable, however.Other declines have been driven by concerns that the technology will disrupt other businesses.Such worries were sparked by a weekend report by Citrini Research that said certain sectors, from financial to food delivery firms, could be at risk from new AI tools.- Asia high -Earlier, Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.In Europe, shares in HSBC jumped 6.7 percent after the global bank posted better-than-expected 2025 earnings.Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi had told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.Oil prices edged higher ahead of a third round of talks between Iran and Washington in Geneva on Iran’s nuclear program.In his State of the Union address on Tuesday, US President Donald Trump accused Tehran of “sinister nuclear ambitions” after he ordered a massive military deployment around the Gulf.- Key figures at around 2115 GMT -New York – Dow: UP 0.6 percent at 49,482.15 (close)New York – S&P 500: UP 0.8 percent at 6,946.13 (close)New York – Nasdaq Composite: UP 1.3 percent at 23,152.08 (close)London – FTSE 100: UP 1.2 percent at 10,806.41 (close)Paris – CAC 40: UP 0.5 percent at 8,559.07 (close)Frankfurt – DAX: UP 0.8 percent at 25,175.94 (close)Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)Dollar/yen: UP at 156.46 yen from 155.87 yen on TuesdayEuro/dollar: UP at $1.1805 at $1.1772Pound/dollar: UP at $1.3554 from $1.3489Euro/pound: DOWN at 87.10 pence from 87.26 penceBrent North Sea Crude: UP 0.1 percent at $70.85 per barrelWest Texas Intermediate: UP 0.3 percent at $65.42 per barrelburs-jmb/dw

Hong Kong’s finance chief tipped another year of economic growth in 2026 as he unveiled his annual budget on Wednesday with plans for investment in innovation zones and AI training.The Chinese finance hub’s “buoyant” economy expanded a forecast-beating 3.5 percent last year thanks to healthy exports and a rebound in private consumption, Financial Secretary Paul Chan told lawmakers.He said that thanks to steady growth in domestic demand, “we forecast that Hong Kong’s economy will grow by 2.5 percent to 3.5 percent this year”.”A stable labour market and rising household incomes will drive private consumption, while improvement in business sentiment, coupled with expectations of interest rate cuts, will boost asset markets and investments,” he said.The government has invested heavily in recent years in the “Northern Metropolis”, a vision for developing rural land bordering mainland China into a cutting-edge tech and innovation hub.Chan said officials will seek lawmakers’ approval to inject a total of US$3.83 billion to attract businesses and speed up development in three zones, including the San Tin Technopole.He also earmarked US$6.39 million for classes and competitions to “popularise the understanding and use of AI by all levels of society”.Hong Kong’s economy will grow an average of three percent annually in real terms from 2027 to 2030, the finance chief said.”The rise of the ‘Global South’ and the reshaping of the global trade and investment landscape will unlock new markets and new growth areas for Hong Kong” despite protectionism and fragmentation, he added.The city has seen four massive annual deficits since Covid struck in 2020, resulting in the worst balance sheet since the former British colony was handed over to China in 1997.In 2025-26, government revenues were lifted by a “buoyant equity market” and accelerated growth, which led to a consolidated surplus of US$371 million instead of a predicted deficit, according to Chan.That number included proceeds from selling bonds, which the government would need to repay.Excluding bond sale proceeds, the Hong Kong government reported a deficit of US$12.8 billion in 2025-26, down from a deficit of US$24.1 billion the year before.- ‘Future needs’ -Wednesday’s budget also proposed withdrawing US$19 billion from Hong Kong’s Exchange Fund, which if approved would be the first such move since 1984.Chan told a news conference that the decision was made “after considering the purpose, scale of the Exchange Fund and our future needs”, with the money going toward the Northern Metropolis and other infrastructure projects.The fund is a backstop for the Hong Kong dollar’s currency peg to the greenback.The Hong Kong Monetary Authority said that the fund still had sizable surplus and foreign currency reserves, and “serves as a solid bedrock for the Linked Exchange Rate System and financial stability of Hong Kong”.Chan also earmarked US$510 million for long-term housing arrangements for people displaced in a deadly housing estate fire last year.The Society for Community Organization, a grassroots advocacy group, said the budget was lacking in welfare spending despite an uptick in government revenue.Asked about “sweetener” measures, finance chief Chan told reporters that his budget included bigger tax breaks this year compared to 2025.

China will buy up to 120 aircraft from European aviation giant Airbus, German Chancellor Friedrich Merz said following talks with President Xi Jinping in Beijing on Wednesday.Merz’s visit comes as Berlin and Beijing seek to build on their decades-old economic ties to weather global uncertainty sparked by US President Donald Trump’s tariff blitz and other erratic foreign policy moves.China, the world’s number two economy, overtook the United States last year to become Germany’s biggest trade partner. At the same time, Berlin regards the Communist Party-run state as a systemic rival to the West.Following talks with top Chinese leaders, Merz told reporters that China had agreed to purchase “up to 120” Airbus aircraft, adding that it “demonstrates how worthwhile such trips can be”.Other contracts were in the pipeline, Merz added.Earlier in the day, Merz and Xi stressed their commitment to developing closer strategic relations, with the German leader saying he saw the trip as a “great opportunity” to boost economic ties.Xi, in turn, told Merz he was willing to take their ties to “new levels”.Merz said that in his meetings he also touched on the sensitive topic Taiwan, the self-ruled island China claims as part of its territory and which it has not ruled out the use of force to annex.Any “reunification” must be done peacefully, Merz said.He also discussed the Ukraine war with Xi, who according to state news agency Xinhua said diplomacy was “key to the issue”.”Xi noted the necessity of ensuring the equal participation of all parties to lay a solid foundation for peace, (and) addressing the legitimate concerns of all sides to strengthen the will for peace,” Xinhua added.Merz is the latest in a string of Western leaders courting Beijing recently, including Britain’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, as they recoil from the mercurial policies of Trump, who is also expected to visit from March 31.Merz said he wished for regular consultations between his government and Beijing — interrupted by political developments in Berlin and the pandemic — to resume “very soon”.- ‘Fair’ cooperation -Export-dependent Germany needs “economic relations all over the world”, Merz said before leaving for Beijing with a large business delegation in tow.At a meeting with Premier Li Qiang in Beijing’s opulent Great Hall of the People, Merz called for “fair” cooperation, and representatives from both sides signed agreements and memorandums — including on climate change and food security.In an apparent allusion to the United States, Li noted that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions”.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric-car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.- Cars, AI and competition -As Trump has unsettled allies and rivals alike, China has sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat, Wang Yi, told Merz at the Munich Security Conference this month that Beijing wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.Merz is joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.On Thursday, he is set to visit Beijing’s Forbidden City, then a Mercedes plant where autonomous driving vehicles will be presented.The chancellor will then travel to AI hub Hangzhou to visit the robotics group Unitree and German turbine maker Siemens Energy.German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

Stock markets in Asia and Europe reached record highs Wednesday on easing worries about the AI sector which many see as overvalued and a threat to several industries.Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates.Global equities gained “as the apocalyptic AI narrative takes a small step back”, noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.Tech shares jumped having rebounded Tuesday on Wall Street.Investors adopted a more sanguine view following a presentation by AI company Anthropic that emphasised the compatibility of its technology with existing programs.A weekend report by Citrini Research showed how certain sectors, from financial to food delivery firms, could be at risk from new AI tools.Focus later Wednesday will be on the release of earnings from chip behemoth Nvidia, with analysts saying they could have an outsized impact on markets.”Put simply, meeting earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders’ fears that demand for AI (capital expenditure) may be downshifting,” warned City Index analyst Matt Weller. A rally on Wall Street’s three main bourses provided a healthy lead for equities across Asia, which has enjoyed a lift from the US Supreme Court’s ruling against a swath of President Donald Trump’s tariffs.Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.In Europe, shares in HSBC jumped six percent nearing midday after the global bank posted better-than-expected 2025 earnings.Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.Oil prices rose as Iran dismissed US claims about its missile programme as “big lies”, after Trump said Tehran was developing missiles that could strike the United States.In his State of the Union address Tuesday, Trump accused Tehran of “sinister nuclear ambitions” as Washington ups the pressure with a massive military deployment around the Gulf. The two foes are scheduled to meet for a third round of talks on Thursday in the Swiss city of Geneva in an effort to reach a diplomatic solution.- Key figures at around 1130 GMT -London – FTSE 100: UP 1.0 percent at 10,784.90 pointsParis – CAC 40: UP 0.3 percent at 8,543.95Frankfurt – DAX: UP 0.4 percent at 25,085.10Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)New York – Dow: UP 0.8 percent at 49,174.50 (close)Dollar/yen: UP at 156.77 yen from 155.74 yen on TuesdayEuro/dollar: DOWN at $1.1772 from $1.1783Pound/dollar: DOWN at $1.3496 from $1.3508Euro/pound: UP at 87.26 pence from 87.23 penceBrent North Sea Crude: UP 0.5 percent at $70.92 per barrelWest Texas Intermediate: UP 0.4 percent at $65.87 per barrel

German Chancellor Friedrich Merz met with Chinese leader Xi Jinping in Beijing on Wednesday, hoping to bolster ties with his country’s largest trade partner and high-tech rival as Europe’s biggest economy struggles.Berlin and Beijing want to build on their decades-old economic ties at a time when US President Donald Trump has sparked global chaos with his tariffs blitz and other erratic foreign policy moves.China, the world’s number two economy, overtook the United States last year to become Germany’s biggest trade partner, but Berlin also regards the Communist Party-run state as a systemic rival to the West.The two leaders reaffirmed their commitment to developing closer strategic relations, with Merz saying he saw the trip as a “great opportunity” to boost economic ties.Xi, in turn, told Merz he was willing to take their ties to “new levels”, stressing that he “always attached great importance to Sino-German relations”.Merz also noted that he wished for joint consultations between their two governments, which had been interrupted by a change in Germany’s government and the pandemic, to resume “very soon”.But he is also expected to stress German and European interests during his talks with Xi, and urge him to put pressure on China’s ally Russia to end the war in Ukraine.Merz is the latest in a string of Western leaders courting Beijing in recent months, including Britain’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, as they recoil from the mercurial policies of Trump, who is also expected from March 31.- Large business delegation -Export-dependent Germany needs “economic relations all over the world”, Merz said before leaving for Beijing with a large business delegation in tow.”But we should be under no illusions,” he added, pointing out that China, as a rival to the United States, now “claims the right to define a new multilateral order according to its own rules”.Merz earlier met with Premier Li Qiang in Beijing’s opulent Great Hall of the People, where he called for “fair” cooperation, and representatives from both sides signed agreements and memorandums — including on climate change and food security.In an apparent allusion to the United States, Li noted that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions”.”Against such a backdrop, China and Germany, as two major economies in the world with significant influence, should… jointly safeguard multilateralism and free trade,” Li said.China under Xi has grown far more assertive on the world stage, built up its military, stressed its claim to self-ruled Taiwan, and pushed back strongly against criticism of its human rights record.Flexing its muscle at times of tension, Beijing has restricted exports of critical minerals used in products from microchips and wind turbines to electric-car batteries and weapons systems.Last year, Beijing temporarily halted the export of Nexperia chips to Europe following a dispute with the Dutch government.More broadly, European businesses complain that China, with its low domestic demand, is flooding Europe with goods made cheap through state subsidies and an undervalued currency.Germany’s trade deficit with China hit a record 89 billion euros ($105 billion) last year.- ‘Systemic competition’ -As Trump has unsettled allies and rivals alike, China has nonetheless also sought to present itself as a reliable partner and defender of the multilateral order.China’s top diplomat, Wang Yi, told Merz at the Munich Security Conference this month that Beijing hoped to bring ties “to a new level” and wanted Germany to be a “stabilising anchor for strategic relations” in the European Union.Merz, like his predecessors Angela Merkel and Olaf Scholz, is joined by business leaders including executives of auto giants Volkswagen, BMW and Mercedes.On Thursday, Merz is to visit Beijing’s Forbidden City, then a Mercedes plant where autonomous driving vehicles will be presented.The chancellor then travels to AI hub Hangzhou to visit the robotics group Unitree and German turbine maker Siemens Energy.German businesses have given Merz a to-do list on his trip.”We expect the chancellor to clearly address problems such as overcapacity, distortions of competition, and export controls on critical raw materials,” said Wolfgang Niedermark of the Federation of German Industries.German and European companies in China are not only “competing with highly innovative Chinese firms” but are also players in a “state-driven systemic competition”.Merz should advocate for “structural reforms to strengthen domestic demand and fairer competitive conditions” in China, he said, warning that without change there will be “new trade conflicts with the EU”.

Stock markets in Seoul and Tokyo surged to record highs as tech firms led an Asia-wide rally Wednesday following a rebound in their counterparts on Wall Street.Investors built on a broadly healthy week in the region as they piled onto the artificial intelligence bandwagon amid a shift from New York, where there is growing concern about elevated valuations as well as US political and economic uncertainty.They were also keeping an eye on President Donald Trump’s State of the Union address, which comes after his tariff policy was dealt a body blow by the Supreme Court on Friday and as he considers strikes on Iran.Wall Street’s tech titans including Magnificent Seven stalwarts have struggled in 2026 to match the past two years’ eye-watering performance, with questions being asked about the vast sums they have invested in AI and when they will see returns.Fresh worries about the recent release of tools that could hammer software firms have compounded the problems.The latest blow came from a report Sunday by Citrini Research that used possible scenarios set in the future showing parts of the global economy that could be at risk from new tools, such as credit card and food delivery firms.But a presentation by AI company Anthropic emphasising the compatibility of its technology with existing programmes tempered some fears, analysts said.An announcement that Facebook parent Meta had reached an agreement to buy millions of chips from processor-maker AMD also lifted optimism.Focus is now on the release of earnings from chip behemoth Nvidia later in the day, with analysts saying they could have an outsized impact on markets.But Matt Weller at City Index warned: “Put simply, ‘meeting’ earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders’ fears that demand for AI (capital expenditure) may be downshifting.”A rally on all three main bourses on Wall Street provided a healthy lead for Asia, which has also enjoyed a lift from the Supreme Court’s tariff announcement.Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.Tokyo piled on more than one percent to also hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.Taipei’s two percent gains were supported by Taiwan Semiconductor Manufacturing Company.Hong Kong, Shanghai, Sydney, Mumbai and Bangkok were also higher, though Singapore, Wellington and Jakarta slipped.London, Paris and Frankfurt were also in the red.The yen was steady against the dollar after sinking Tuesday on media reports that Japanese Prime Minister Sanae Takaichi last week told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.The Mainichi newspaper said she had taken a “tougher stance” than in their November meeting.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)London – FTSE 100: UP 0.7 percent at 10,760.07 Dollar/yen: UP at 156.00 yen from 155.74 yen on TuesdayEuro/dollar: UP at $1.1796 from $1.1783Pound/dollar: UP at $1.3520 from $1.3508Euro/pound: UP at 87.25 pence from 87.23 penceWest Texas Intermediate: UP 0.4 percent at $65.87 per barrelBrent North Sea Crude: UP 0.3 percent at $70.99 per barrelNew York – Dow: UP 0.8 percent at 49,174.50 (close)