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Wall Street stocks bounced higher Friday despite data showing an uptick in inflation and a looming US government shutdown.Data showed the personal consumption expenditures (PCE) price index rose 2.4 percent in the 12 months to November, up from 2.3 percent in October, the Commerce Department said in a statement.The core reading of PCE price index — the Federal Reserve’s preferred inflation measure — that excludes highly volatile food and energy prices stayed steady at 2.8 percent.Wall Street’s main stock indices initially fell on the news, continuing a spiral lower after the Federal Reserve on Wednesday signalled fewer cuts than had been expected for 2025 as inflation remains sticky above its two percent target.However they bounced higher during morning trading.While the annual inflation measures ticked higher, they dropped month-on-month, providing some relief to investors.Core prices rose just 0.1 percent from October, compared to monthly increases of 0.2 or 0.3 percent the previous five months, pointing to a slight slowdown in what is sure to be welcome news for the US central bank.New York Fed President John Williams, a voting member of the Fed committee which sets rates, told CNBC that the data shows “the disinflation process is continuing” and that it offers “a little bit of good news this month”.Jochen Stanzl, Chief Market Analyst at CMC Markets, also called the data “good news,” say it will lead to a moderation in the increase in the PCE price index over a longer term.”Today’s PCE data serves as quite a reprieve after this week’s sell-off,” he said. Investors were keeping a watch also on developments in Washington.The House of Representatives has rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash Friday night and cease operations from this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.O’Hare noted US Treasury yields fell overnight, “driven by some safe-haven trading that stemmed from the ongoing weakness in the stock market and heightened political uncertainty” following the rejection of the government funding bill.Friday’s Wall Street rebound could also be driven by it being a so-called triple witching day when stock, index and index futures contracts expire. With more than $6 trillion in options estimated to expire, trading could prove volatile. European stocks finished the day lower although they cut their losses as Wall Street rebounded, with data showing tepid retail sales in the UK in the runup to Christmas dampening sentiment.Oil prices, which have also fallen since the Fed’s Wednesday announcement, continued their slide lower.- Key figures around 1630 GMT -New York – Dow: UP 1.4 percent at 42,947.20 points New York – S&P 500: UP 1.4 percent at 5,948.04New York – Nasdaq Composite: UP 1.4 percent at 19,634.69 London – FTSE 100: DOWN 0.3 percent at 8,084.61 (close)Paris – CAC 40: DOWN 0.3 percent at 7,274.48 (close) Frankfurt – DAX: DOWN 0.3 percent at 19,916.56 (close)Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)Euro/dollar: UP at $1.0414 from $1.0364 on ThursdayPound/dollar: UP at $1.2576 from $1.2496Dollar/yen: DOWN at 156.32 yen from 157.35 yen Euro/pound: DOWN at 82.83 pence from 82.91 penceWest Texas Intermediate: DOWN 0.1 percent at $69.32 per barrelBrent North Sea Crude: DOWN 0.1 percent at $72.81 per barrelburs-rl/gv

Global stock markets slid on Friday as investors grow concerned about the economic outlook for next year and a looming US government shutdown.The latest US data failed to comfort those worries, with a slight increase in the Federal Reserve’s preferred gauge of inflation.The Fed this week trimmed US borrowing costs but signalled fewer cuts than had been expected for 2025 as inflation remains sticky above its two percent target.The personal consumption expenditures (PCE) price index rose 2.4 percent in the 12 months to November, up from 2.3 percent in October, the Commerce Department said in a statement.The core measure that excludes highly volatile food and energy prices stayed steady at 2.8 percent.”The key takeaway from the report is that there wasn’t any improvement in the year-over-year readings for PCE and core-PCE inflation,” said Briefing.com analyst Patrick O’Hare.He noted that on Wednesday “the Fed implied with its words and guidance that further rate cuts can wait until there is more progress on inflation.”Stronger-than-expected US economic growth data on Thursday did nothing to dispel concerns that the central bank will keep rates higher for longer.”This is bad news for the US economy, because higher interest rates over a prolonged period are a huge drag on growth,” said CMC Markets analyst Jochen Stanzl.”Equity markets have started to price in lower growth in 2025, when the Fed will still be trying to reach its 2 percent inflation target,” he added.New York’s main indices opened lower on Friday, with the Dow sliding 0.4 percent.European stocks were down more than one percent in afternoon trading, with data showing tepid retail sales in the UK in the runup to Christmas dampening sentiment.Investors are keeping a watch also on developments in Washington.The House of Representatives has rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash Friday night and cease operations from this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.O’Hare noted US Treasury yields fell overnight, “driven by some safe-haven trading that stemmed from the ongoing weakness in the stock market and heightened political uncertainty” following the rejection of the government funding bill.Oil prices, which have also fallen since the Fed’s Wednesday announcement, slid lower.- Key figures around 1430 GMT -New York – Dow: DOWN 0.4 percent at 42,154.39 points New York – S&P 500: DOWN 0.5 percent at 5,836.34New York – Nasdaq Composite: DOWN 0.9 percent at 19,196.25 London – FTSE 100: DOWN 1.1 percent at 8,016.53Paris – CAC 40: DOWN 1.1 percent at 7,214.44 Frankfurt – DAX: DOWN 1.3 percent at 19,716.14Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)Euro/dollar: UP at $1.0391 from $1.0364 on ThursdayPound/dollar: UP at $1.2545 from $1.2496Dollar/yen: DOWN at 156.41 yen from 157.35 yen Euro/pound: UP at 83.83 pence from 82.91 penceWest Texas Intermediate: DOWN 0.8 percent at $68.85 per barrelBrent North Sea Crude: DOWN 0.7 percent at $72.39 per barrelburs-rl/lth

European stock markets slid for a second session running Friday and the dollar dropped as investors grow concerned about the economic outlook for next year.All eyes will be on US inflation data later in the session to see if it alters interest-rate cut expectations for the world’s biggest economy.The Federal Reserve this week trimmed US borrowing costs but signalled fewer cuts than had been expected for 2025.Oil prices have also fallen since the Fed announcement.”Markets remain cautious ahead of US inflation figures,” noted Derren Nathan, head of equity research at stockbrokers Hargreaves Lansdown.Paris and Frankfurt were down about 1.2 percent in late morning trade, while London lost 1.1 percent. All three indices shed similar amounts by the close Thursday.Leading Asian equity markets ended the week with slight losses after Wall Street steadied.Traders are awaiting the release Friday of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead Thursday, having squandered an early bounce from Wednesday’s plunge that had been sparked by the Fed’s changed outlook over rates.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed would keep borrowing costs higher for longer.Official figures Friday revealed tepid retail sales in the UK in the runup to Christmas, hurting local government efforts to grow the British economy.Investors are keeping a watch also on developments in Washington.The House of Representatives has rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash Friday night and cease operations from this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.- Key figures around 1045 GMT -London – FTSE 100: DOWN 1.1 percent at 8,018.56 pointsParis – CAC 40: DOWN 1.2 percent at 7,206.22 Frankfurt – DAX: DOWN 1.2 percent at 19,725.94Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)New York – Dow: UP less than 0.1 percent at 42,342.24 (close)Euro/dollar: UP at $1.0388 from $1.0364 on ThursdayPound/dollar: UP at $1.2509 from $1.2496Dollar/yen: DOWN at 156.73 yen from 157.35 yen Euro/pound: UP at 83.06 pence from 82.91 penceWest Texas Intermediate: DOWN 1.0 percent at $68.72 per barrelBrent North Sea Crude: DOWN 1.0 percent at $72.19 per barrel

Equities fell Friday while the dollar maintained gains against its peers as investors assessed the fallout from the Federal Reserve’s revised outlook for interest rate cuts and prepared for a second Donald Trump presidency.Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank’s more hawkish tilt and the Bank of Japan’s refusal to tighten monetary policy.Traders are now awaiting the release later in the day of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead, having squandered an early bounce from Wednesday’s plunge that was sparked by the Fed’s changed rate forecast, with sentiment weighed by a jump in Treasury yields to their highest level since May.Asia also failed to recover from the previous day’s losses.Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Mumbai and Bangkok all fell, though Wellington, Jakarta and Manila edged up.London, Paris and Frankfurt all opened lower.US monetary policymakers on Wednesday cut rates as expected, but their closely watched “dot pot” guidance on future moves showed they saw two reductions next year, compared with four previously targeted.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed will keep borrowing costs higher for longer.Meanwhile, swaps markets are pricing in less than two for all of 2025.Fed boss Jerome Powell acknowledged Wednesday that Trump’s economic plans, including tariff hikes, tax cuts and mass deportations, have been a consideration as policymakers weigh their rate cut estimates.Economists at Bank of America Global Research said in a commentary: “We stick with our forecast for two more rate cuts next year, but the risks have clearly shifted in the direction of fewer (no) cuts. The onus is now on the data to justify additional cuts.”The dramatic reaction in markets clearly indicates that an extended pause is now on the table.”They added that if the jobs market ran into severe trouble in the next few months “the Fed would turn more dovish, and (Wednesday’s) meeting will feel like a bump in the road, rather than a paradigm shift, a few months down the line”.Investors are keeping a watch on developments in Washington after the House of Representatives rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash on Friday night and cease operations starting this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.But it was sunk by Republican debt hawks, dealing a blow to their leader and his incoming “efficiency czar” Elon Musk, who had put the package forward after sabotaging a bipartisan one amid complaints about items in the text allegedly ballooning its overall cost.The dollar held on to its latest gains against its major peers, briefly hitting a five-month high near 158 yen before easing slightly after the government warned Friday against speculators and hinted it could step in to support the currency.Finance Minister Katsunobu Kato said: “The government’s deeply concerned about recent currency moves, including those driven by speculators.”We will take appropriate action if there are excessive moves in the currency market.”The greenback was also near two-year highs against the euro, while bitcoin tanked to around $97,000 — having earlier in the week hit a new record of more than $108,000.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)London – FTSE 100: DOWN 0.3 percent at 8,083.12Euro/dollar: UP at $1.0381 from $1.0364 on ThursdayPound/dollar: UP at $1.2500 from $1.2496Dollar/yen: DOWN at 156.90 yen from 157.35 yen Euro/pound: UP at 83.04 pence from 82.91 penceWest Texas Intermediate: DOWN 0.5 percent at $69.01 per barrelBrent North Sea Crude: DOWN 0.5 percent at $72.49 per barrelNew York – Dow: UP less than 0.1 percent at 42,342.24 (close)

China has lifted a ban on imports of Australian live rock lobsters, Canberra said Friday, demolishing the final barrier in a broader, multibillion-dollar trade war between the countries.Beijing has banned or slapped retaliatory tariffs on more than US$12 billion worth of Australian exports, from wine to timber, during years of soured ties with Canberra.The lobster trade, worth US$500,000 a year, was the last of a number of major Australian exports to remain under sanctions after months of Australian diplomatic efforts.”China has confirmed that our live rock lobster exports can recommence into China,” Agriculture Minister Julie Collins told reporters.”This is great news for our live rock lobster producers and fishers here in Australia, and importantly, it means that they can now apply for import permits to go back into this market.”Lobsters were the “last of those trade impediments” imposed by China, she added.China introduced a de facto ban on live rock lobster in 2020 while denying the move — and a raft of other punitive tariffs — were linked to the worst crisis in relations in decades.Beijing was enraged by Canberra’s crackdown on Chinese foreign influence operations, the decision to block tech giant Huawei from running Australia’s 5G network, and a call for an investigation into the origins of the Covid-19 pandemic.Australian Prime Minister Anthony Albanese said in October that Beijing would let the lobsters back in after a meeting with Chinese Premier Li Qiang in Laos.Albanese said the confirmation of that reopening was the result of his government’s “calm and consistent” approach with China since his Labor Party came to power in May 2022.- End of trade ‘impediments -At the low point in relations, Australian exporters faced impediments on exporting wine, barley, coal, cotton, timber logs, oaten hay, copper ores and concentrates and red meat, the government said.”The removal of restrictions on lobster marks the resolution of all outstanding impediments to trade from that period,” it said in a statement.The reopening to lobster may also give Albanese a political boon.The prime minister must call an election in the first half of 2025, and many lobster producers come from Western Australia, a key battleground state. The centre-left leader has spent much of his time in office trying to improve the trade relationship with China, Australia’s biggest trade partner.At the same time, Australia is part of a loose US-led alliance that has aggressively pushed back against China’s bid for primacy in the Pacific region.Before the ban, an estimated 97.7 percent of Australia’s rock lobster exports were sold to China, more than 1,600 tonnes a year.Some Australian producers have since found new markets in the United States, Europe, Asia and the Middle East.Many more skirted sanctions by creating a “grey market” of exports to China via Hong Kong, Hanoi and other Asian cities.The volume of exports to Hong Kong alone shot up more than 6,100 percent after the ban, according to researchers at the University of Technology Sydney.Exporters are hoping they can resume exports in time for Chinese New Year, when delicacies such as rock lobster are in hot demand.   

Chinese President Xi Jinping on Friday inaugurated a new Macau leader and called for the gambling hub to diversify its economy as the former colony marked 25 years since being returned to China.When the former Portuguese colony reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by Beijing as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.Xi on Friday touted Macau’s accomplishments under Chinese rule, including its international appeal and a per capita GDP that ranks among the world’s highest.”Macau’s splendid achievements since its return to the motherland is proof to the world that ‘One Country, Two Systems’ has a clear systemic advantage and strong vitality,” Xi said in a speech at the inauguration.That framework “must be adhered to over the long term,” he said.Following its handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.But it is now under orders from Beijing to diversify its economy — and the city’s leaders have suggested industries such as financial services, technology and Chinese medicine as new sources of growth.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.- New leader -Anniversary celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.Sam served as president of Macau’s apex court since handover and was the sole candidate in October’s leadership race, receiving 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old is Macau’s first post-handover leader to be born on the mainland and not to have a background in business.He replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.The Chinese president on Friday emphasised the need for a diversified economy as he laid out “four hopes” for Sam’s administration.Macau must “improve its planning for industrial development, and step up policy support and financial investment to cultivate internationally competitive new industries,” Xi said.He highlighted the importance of Hengqin Island, a landmass adjacent to Macau and three times its size, which was partly leased by Beijing to Macau to boost its land supply for non-gaming development.”The central government decided to develop Hengqin with the goal of fostering Macau’s development of a diversified economy and to facilitate the living and employment of Macau residents,” Xi said.”There can be no development of industries and projects that do not align with this positioning.”He also urged Macau to bring in talents to improve local governance, expand international ties and to “steadfastly uphold national security and Macau’s stability”.Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.

Equities fluctuated Friday and the dollar maintained its gains against its peers as investors assessed the fallout from the Federal Reserve’s outlook for interest rate cuts and possible impact of Donald Trump’s presidency on the economy.Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank’s more hawkish tilt and the Bank of Japan’s refusal to tighten monetary policy.Traders are now awaiting the release later in the day of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead, having squandered an early bounce from Wednesday’s plunge that was sparked by the Fed’s changed rate forecast, with sentiment weighed by a jump in Treasury yields to their highest level since May.Asia also struggled to recover from the previous day’s losses.Tokyo, Shanghai, Manila and Jakarta edged up, but Hong Kong, Sydney, Singapore, Seoul, Wellington and Taipei sank.US monetary policymakers on Wednesday cut rates as expected, but their closely watched “dot pot” guidance on future moves showed they saw two reductions next year, compared with four previously targeted.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed will keep borrowing costs higher for longer.Meanwhile, swaps markets are pricing in less than two for all of 2025.Fed boss Jerome Powell acknowledged Wednesday that Trump’s economic plans, including tariff hikes, tax cuts and mass deportations, have been a consideration as policymakers weigh their rate cut estimates.”Some did identify policy uncertainty as one of the reasons for their writing down more uncertainty around inflation,” he said after the Fed’s announcement Wednesday. Investors are keeping a watch on developments in Washington after the House of Representatives rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash on Friday night and cease operations starting this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.But it was sunk by Republican debt hawks, dealing a blow to their leader and his incoming “efficiency czar” Elon Musk, who had put the package forward after sabotaging a bipartisan one amid complaints about items in the text allegedly ballooning its overall cost.The dollar held on to its latest gains against its major peers, sitting at a five-month high near 158 yen, with some observers suggesting Japanese officials could be eyeing a possible intervention in currency markets.The greenback was also at a two-year high against the euro.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 38,889.95 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,709.82Shanghai – Composite: UP 0.1 percent at 3,372.82Euro/dollar: UP at $1.0365 from $1.0364 on ThursdayPound/dollar: DOWN at $1.2493 from $1.2496Dollar/yen: UP at 157.40 yen from 157.35 yen Euro/pound: UP at 82.97 pence from 82.91 penceWest Texas Intermediate: DOWN 0.3 percent at $69.15 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.60 per barrelNew York – Dow: UP less than 0.1 percent at 42,342.24 (close)London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) 

Chinese President Xi Jinping on Friday presided over the inauguration of new Macau leader Sam Hou-fai, capping off a three-day visit as the former Portuguese colony marks 25 years since being returned to China.Sam, who served as president of Macau’s apex court since the 1999 handover, was the sole candidate in October’s leadership race and received 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old Zhongshan, China native is Macau’s first post-handover leader to be born in mainland China and not have a background in business.When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by China as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.After the handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.Celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam, Macau government ministers and some visiting Chinese officials in attendance.Sam replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.Speaking at a Thursday banquet, Xi acknowledged Ho’s efforts and said Macau “gained new achievements in appropriate economic diversification” under his leadership.The Chinese leader has lauded Macau’s “world-recognised success” in implementing the “One Country, Two Systems” framework and said the city had a bright future.”Macau is a pearl in the nation’s palm, and I have always kept in my thoughts its development and the welfare of all its people,” Xi said at the start of his visit on Wednesday.Security was tight around the city, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.- Casino hub -Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.Under orders from Beijing to diversify the economy, Macau leaders have suggested industries such as financial services, technology and Chinese medicine as new economic drivers.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.Xi on Thursday visited the Macau University of Science and Technology and was “briefed on the development of two state-level key laboratories” that involved Chinese medicine and planetary science, according to state news agency Xinhua.He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.

Japanese inflation accelerated in November, with prices rising 2.7 percent on-year partly because of higher energy costs, government data showed Friday.The core Consumer Price Index (CPI), which excludes volatile fresh food prices, topped market expectations and was up from 2.3 percent in October.The reading remained above the Bank of Japan’s two percent inflation target, set more than a decade ago as part of efforts to boost the stagnant economy.The two percent target has been surpassed every month since April 2022, although central bank policymakers have sometimes questioned the role of temporary factors such as the war in Ukraine.Analysts had forecast a core CPI reading of 2.6 percent for November. “Core core CPI”, which excludes both fresh food and energy prices, stood at 2.4 percent.Rice prices continued to soar, with the data showing an on-year increase of around 64 percent after this year’s harvests were hit by hot weather and water shortages.”Rising prices for food, including rice, and the scaling back of measures against extreme summer heat, such as subsidies for electricity and fuel bills” contributed to the jump in inflation, deputy chief cabinet secretary Fumitoshi Sato told reporters.Japan’s summer this year was the joint hottest on record — equalling 2023 — as extreme heatwaves fuelled by climate change engulfed many parts of the globe.The Bank of Japan on Thursday left its borrowing costs unchanged and warned of uncertainty over the US economy under president-elect Donald Trump.That caused the yen to fall against the dollar, extending a retreat that began Wednesday when the Federal Reserve forecast it would make fewer interest rate cuts.On Friday morning, one dollar bought 157.61 yen, compared with about 153.60 on Wednesday.”Despite the pause, the BoJ appears determined to tighten policy further,” said Stefan Angrick of Moody’s Analytics.”The central bank’s monetary policy statement maintains a fairly hawkish tone, arguing that the economy is recovering and will keep growing above its potential rate — a view that feels at odds with the data,” he said.Weak demand has been a drag on growth for Japan, and it’s likely that data will show the economy shrinking in 2024, Angrick said, adding that the bank faced a tricky situation.”The domestic economy isn’t strong enough for significant rate hikes, but maintaining the status quo risks further yen depreciation and higher inflation,” he said.”We anticipate two more rate hikes in 2025.”

Chinese President Xi Jinping will preside over a day of celebrations in Macau and inaugurate the city’s new leader on Friday as the former colony marks 25 years since being returned to China.Macau is regarded by China as a shining example of its “One Country, Two Systems” model, and Xi praised the city as a “pearl in the nation’s palm” at the start of his three-day visit.The Chinese casino hub has grown from a Portuguese trading outpost to the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life shall remain unchanged for 50 years”.Celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming city leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.Xi has lauded Macau’s “world-recognised success” in implementing the “One Country, Two Systems” framework and said the city had a bright future.”Macau is a pearl in the nation’s palm, and I have always kept in my thoughts its development and the welfare of all its people,” Xi said Wednesday.He has vowed to use his trip for “extensive and in-depth exchanges with our friends from all places, and discuss plans for Macau’s development”.Friday’s festivities will be centred around the inauguration of Sam, the former president of Macau’s apex court, as the city’s fourth post-handover leader, replacing Ho Iat-seng.Security was tight around the city, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.- Casino hub -Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, which has a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.Under orders from Beijing to diversify the economy, Macau leaders have suggested financial services, technology and Chinese medicine as new economic drivers.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.Xi on Thursday visited the Macau University of Science and Technology and was “briefed on the development of two state-level key laboratories” that involved Chinese medicine and planetary science, according to state news agency Xinhua.He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.