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South Korea on Tuesday announced plans to invest an additional $4.9 billion in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.”An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said in a press release, adding the country’s chip support package would be increased by $4.9 billion.South Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump’s looming 25 percent tariffs.South Korea is home to the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.South Korea’s finance ministry said “growing uncertainty” following rounds of US tariff threats had left the powerful industry clamouring for government support.”To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won ($18.2 billion) to 33 trillion won ($23.1 billion),” said the ministry.On his so-called April 2 “Liberation Day,” Trump announced a slew of tariffs on trading partners across the world, including a 25-percent hit on South Korean goods, before backtracking and suspending their implementation for 90 days.Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon,” finance minister Choi Sang-mok said during a meeting. “This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.”The government plans to expand support for the semiconductor industry, allocating 33 trillion won ($23.1 billion), with over 4 trillion won in fiscal spending set to be injected through 2026,” he said.The package includes funding for infrastucture development, including underground transmission lines at semiconductor clusters which are currently being built. “The government will boldly support investment by semiconductor companies,” said Choi. He added that the package includes securing talent for the industry.The investment is part of a large revised supplementary budget proposal of 12 trillion won ($8.4 billion), and is required to be passed by the National Assembly. – Talks next week -The tariffs announcement has rocked global stock markets, with investors uncertain over whether they are a negotiating tactic or permanent US position.Trump has insisted he will not back down until he has reduced or even wiped out US trade deficits — while simultaneously signalling that he is ready to negotiate with countries around the world.In 2024, the US trade deficit with South Korea amounted to just over $66 billion in goods.Last week the government in Seoul unveiled a $2 billion emergency support package to help carmakers weather the storm.South Korea’s auto-related exports to the United States totaled $42.9 billion last year, according to officials.Last week, Trump spoke to South Korean Prime Minister Han Duck-soo, who is acting as president since former leader Yoon Suk Yeol was removed from office for attempting to subvert civilian rule.US Treasury Secretary Scott Bessent said Monday that trade talks with South Korea would take place next week.

Stock markets rose, gold hit another record high and the dollar remained under pressure as investors grappled with the latest twists and turns in US President Donald Trump’s trade war.Technology shares mostly rose in reaction to a late Friday announcement by the Trump administration of tariff exemptions for smartphones, laptops, semiconductors and other electronics — all key Chinese-made products.But they later pared their gains as investors digested the other weekend news — Trump suggesting that the exemptions would be temporary.The broad-based S&P 500 briefly dipped into negative territory at midday but finished up 0.8 percent.”Washington’s partial retreat from its hard-line tariff regime — specifically the temporary exemption of a raft of tech goods from punitive import levies — has momentarily eased fears of an all-out trade war,” said Fawad Razaqzada, analyst at City Index and Forex.com.Trump said Sunday that the exemptions had been misconstrued and that no country would get “off the hook” in his trade war — especially China.As his team pursued fresh tariffs against many items on the list, including semiconductors “over the next week,” Trump said electronics were only moved to a different tariff “bucket.””The comment has only added to confusion and reinforced the idea that the exemptions are not permanent, keeping uncertainty elevated as the new week begins,” said David Morrison, analyst at financial services platform Trade Nation.”The US dollar remained under pressure, with ongoing trade tensions denting its appeal,” Morrison said.But the US currency traded within a tighter range compared with the recent days when it has seen some big drops against the euro.US Treasuries also recovered somewhat but yields remained fairly high following a sell-off last week that pointed to questions about the continued reliability of US government bonds as a haven investment.Gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 an ounce Monday before paring back gains.”Unless a broader (US-China) trade accord is struck soon, the stalemate could continue to hold back risk appetite,” Razaqzada said.”While this softening of tone (on tariffs) may appear constructive on the surface, it doesn’t meaningfully shift the dial unless accompanied by substantive progress in US-China trade relations,” he said.- Key figures around 2050 GMT -New York – Dow: UP 0.8 percent at 40,524.79 (close)New York – S&P 500: UP 0.8 percent at 5,405.97 (close)New York – Nasdaq: UP 0.6 percent at 16,831.48 (close)London – FTSE 100: UP 2.1 percent at 8,134.34Paris – CAC 40: UP 2.4 percent at 7,273.12Frankfurt – DAX: UP 2.9 percent at 20,954.83Tokyo – Nikkei 225: UP 1.2 percent at 33,982.36 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 21,417.40 (close)Shanghai – Composite: UP 0.8 percent at 3,262.81 (close)Euro/dollar: UP at $1.1356 from $1.1355 on FridayDollar/yen: DOWN at 143.09 yen from 143.54 yen Pound/dollar: UP at $1.3189 from $1.3087Euro/pound: DOWN at 86.08 pence from 86.83 penceBrent North Sea Crude: UP 0.2 percent at $64.88 per barrelWest Texas Intermediate: UP 0.1 percent at $61.53 per barrel

Beijing on Monday warned against “politicising” the rescue of Chinese-owned British Steel, as the UK government raced to secure raw materials to keep the country’s remaining steelmaking blast furnaces running. Prime Minister Keir Starmer’s government has swooped in to prevent the closure of British Steel’s main plant in Scunthorpe, northern England, after its owner, the Chinese group Jingye, halted orders of coking coal and iron ore.The Labour government, which stopped short of nationalising British Steel over the weekend, is trying to buy the raw materials to keep the plant running and hoping to find a new private investor for the plant.Jingye bought British Steel in 2020 and says it has invested more than £1.2 billion to maintain operations, but that it has been losing around £700,000 per day.- China tensions -“Towns like Scunthorpe need industries,” consultant radiographer Nick Barlow, 36, who has lived in the town for six years, told AFP.”Pretty much everyone in Scunthorpe knows somebody that’s affiliated to the steel works. It’s how the town was formed. everything sort of revolves around it. It’s the heart of the town.”Former steelworker Jim Kirk, 66, worried that any closure of the plant would leave Scunthorpe a “ghost town” accusing Beijing of trying to “run it down, stop it so that they can import their cheap steel over here”.But a Chinese foreign ministry spokesman  said Monday the UK should “avoid politicising trade cooperation or linking it to security issues, so as not to impact the confidence of Chinese enterprises in going to the UK”.Some opposition British MPs accused Beijing of interference — with Christopher Chope of the main opposition Conservative party accusing Jingye of “industrial sabotage”.Starmer’s spokesman on Monday said Downing Street is “not aware of any deliberate acts of sabotage” at the Scunthorpe steelworks.He added the government is “confident in securing the supply of materials needed” to keep running the two blast furnaces at the plant — the last in the UK which makes steel from scratch.He said materials would reach the plant in the “coming days”, as restarting the furnaces once they go out is extremely difficult.Other firms, including Tata and Rainham Steel, have offered to help secure supplies, government minister James Murray told Times Radio.- Jobs threatened -Failure to secure enough supplies to keep the furnaces running could seriously damage the plant — and risk making Britain the only Group of Seven country without virgin steelmaking capacity needed for everything from railways to bridges.”If we hadn’t acted, the blast furnaces were gone and in the UK primary steel production would have gone,” Business Secretary Jonathan Reynolds said Sunday.He added Jingye had turned down an offer of some £500 million ($658 million) to buy materials, instead requesting more than twice that amount with few guarantees the furnaces would stay open.The government saw the possible closure of Scunthorpe as a threat to Britain’s long-term economic security, given the decline of the UK’s once robust steel industry — and the threatened loss of some 2,700 jobs.Reynolds said the UK had been “naive” to allow its steel industry to be bought by the Chinese company, and that he “wouldn’t personally bring a Chinese company into our steel sector”.China possesses mostly minority interests in a number of key UK industries, from water to energy and Heathrow airport, giving rise to security concerns and occasional spats.”The purchase of British Steel by a Chinese company shows how intricately market conditions, strategic corporate decisions, and the quest for investment in a failing sector interact,” Patrick Munnelly, a strategist at broker Tickmill, told AFP. David Henig, an analyst at the European Centre for International Political Economy, said “economic security challenges” affected all of Europe.”There can also be issues with nationally owned companies, so this is very much about governments having to monitor their economies and respond where necessary.”Despite the fallout over British Steel, Starmer’s administration has been at pains to improve relations with Beijing, with several high-ranking ministers holding bilateral talks in hopes of spurring economic growth.

Chinese leader Xi Jinping on Monday called on his country and Vietnam to “oppose unilateral bullying”, Beijing’s state media reported, during a regional tour as leaders confront US tariffs.Xi is in Vietnam for the first leg of a Southeast Asia tour, with Beijing trying to present itself as a reliable alternative to an erratic US President Donald Trump, who announced — and then mostly reversed — sweeping tariffs this month.He was welcomed to Hanoi on Monday with a 21-cannon salute, a guard of honour and rows of flag-waving children at the presidential palace, before holding talks with Vietnam’s top leaders including General Secretary To Lam.Xi told Lam their two countries must “jointly oppose unilateral bullying, and uphold the stability of the global free trade system as well as industrial and supply chains,” according to the Xinhua news agency.The two neighbours signed 45 cooperation agreements, including on supply chains, artificial intelligence, joint maritime patrols and railway development.Xi’s visit comes almost two weeks after the United States — the biggest export market for Vietnam, a manufacturing powerhouse, in the first three months of the year — imposed a 46 percent levy on Vietnamese goods as part of a global tariff blitz.Although the US tariffs on Vietnam and most other countries have been paused, China still faces enormous levies and is seeking to tighten regional trade ties and offset their impact during Xi’s first overseas trip of the year.Xi will depart Vietnam on Tuesday, travelling to Malaysia and Cambodia on a tour that “bears major importance” for the broader region, Beijing has said.Speaking during a meeting with Lam, Xi said Vietnam and China were “standing at the turning point of history… and should move forward” together.Xi earlier urged the two countries to “resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment”. He also reiterated Beijing’s line that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere” in an article published Monday in Vietnam’s state-run Nhan Dan newspaper.Lam said in an article posted on the government’s news portal Monday that his country “is always ready to join hands with China to make cooperation between the two countries more substantive, profound, balanced and sustainable”.- ‘Bamboo diplomacy’ -Vietnam was Southeast Asia’s biggest buyer of Chinese goods last year, with a bill of $161.9 billion, followed by Malaysia, which bought Chinese imports worth $101.5 billion.Firming up ties with Southeast Asian neighbours could also help offset the impact from a closed United States, the largest single recipient of Chinese goods last year.Xi is visiting Vietnam for the first time since December 2023.China and Vietnam, both governed by communist parties, already share a “comprehensive strategic partnership”, Hanoi’s highest diplomatic status.Vietnam has long pursued a “bamboo diplomacy” approach that aims to stay on good terms with both China and the United States.The two countries have close economic ties, but Hanoi shares US concerns about Beijing’s increasing assertiveness in the contested South China Sea.China claims almost all of the South China Sea as its own, but this is disputed by the Philippines, Malaysia, Vietnam, Indonesia and Brunei.Xi said in his article on Monday that Beijing and Hanoi could resolve those disputes through dialogue.”We should properly manage differences and safeguard peace and stability in our region,” Xi wrote. “With vision, we are fully capable of properly settling maritime issues through consultation and negotiation.”Lam said in his article that “joint efforts to control and satisfactorily resolve disagreements… is an important stabilising factor in the current complex and unpredictable international and regional situation”.In Malaysia, Communications Minister Fahmi Fadzil said Xi’s imminent visit was “part of the government’s efforts… to see better trade relations with various countries including China”.Xi will then travel to Cambodia, one of China’s staunchest allies in Southeast Asia, and where Beijing has extended its influence in recent years.burs-aph-mjw/rsc/js

Stock markets rose, gold hit another record high and the dollar regained some ground Monday as investors grappled with the latest twists and turns in US President Donald Trump’s trade war.Wall Street opened higher, following sharp rises in Asia and Europe, after Trump appeared to dial down his trade war as smartphones, laptops, semiconductors and other electronics — all key Chinese-made products  — were given a reprieve from US tariffs on Friday.”Washington’s partial retreat from its hard-line tariff regime — specifically the temporary exemption of a raft of tech goods from punitive import levies — has momentarily eased fears of an all-out trade war,” said Fawad Razaqzada, analyst at City Index and Forex.com.But suggestions by Trump over the weekend that the exemptions would be temporary added to market uncertainty, following volatility on trading floors last week over the US leader’s erratic trade agenda.Trump said Sunday that the exemptions had been misconstrued and that no country would get “off the hook” in his trade war — especially China.As his team pursued fresh tariffs against many items on the list, including on semiconductors “over the next week”, Trump said electronics were only moved to a different tariff “bucket”.”The comment has only added to confusion and reinforced the idea that the exemptions are not permanent, keeping uncertainty elevated as the new week begins,” said David Morrison, analyst at financial services platform Trade Nation.”The US dollar remained under pressure, with ongoing trade tensions denting its appeal,” Morrison said.The dollar, however, pared back some losses against the euro and other major currencies. US Treasuries also recovered somewhat following a selloff last week that called into question the reliability of US government bonds as a haven investment.There has been speculation that China contributed to the turmoil in the US bond market by selling Treasury holdings.Gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 an ounce Monday before paring back gains.”Unless a broader (US-China) trade accord is struck soon, the stalemate could continue to hold back risk appetite,” Razaqzada said.”While this softening of tone (on tariffs) may appear constructive on the surface, it doesn’t meaningfully shift the dial unless accompanied by substantive progress in US-China trade relations,” he said.- Key figures around 1340 GMT -New York – Dow: UP 1.0 percent at 40,627.10 pointsNew York – S&P 500: UP 1.4 percent at 5,438.56New York – Nasdaq: UP 1.7 percent at 17,015.38 London – FTSE 100: UP 1.8 percent at 8,110.28Paris – CAC 40: UP 2.4 percent at 7,273.35Frankfurt – DAX: UP 2.7 percent at 20,921.58Tokyo – Nikkei 225: UP 1.2 percent at 33,982.36 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 21,417.40 (close)Shanghai – Composite: UP 0.8 percent at 3,262.81 (close)Euro/dollar: DOWN at $1.1324 from $1.1359 on FridayDollar/yen: UP at 143.70 yen from 143.49 yen Pound/dollar: UP at $1.3157 from $1.3088Euro/pound: DOWN at 86.14 pence from 86.80 penceBrent North Sea Crude: UP 0.7 percent at $65.20 per barrelWest Texas Intermediate: UP 0.6 percent at $61.87 per barrel

China and Vietnam signed dozens of cooperation agreements Monday, strengthening ties between the communist-run countries after Chinese leader Xi Jinping warned that protectionism “leads nowhere” and that a trade war would have “no winners”.Xi is in Vietnam for the first leg of a Southeast Asia tour, as Beijing tries to present itself as a stable alternative to an erratic US President Donald Trump, who announced — and then mostly reversed — sweeping tariffs this month.The Chinese president was welcomed to Hanoi Monday with a 21-canon salute, a guard of honour and rows of flag-waving children at the presidential palace, before holding talks with Vietnam’s top leaders including General Secretary To Lam.The two neighbours signed around 40 cooperation agreements. Details were not immediately available but prior to the visit it was expected that deals would be reached in areas including trade and aviation.Xi’s visit comes almost two weeks after the United States — manufacturing powerhouse Vietnam’s biggest export market in the first three months of the year — slapped a 46 percent levy on Vietnamese goods as part of a global trade blitz.Although the reciprocal tariffs on Vietnam and most other countries have been paused, China still faces enormous levies and is seeking to tighten regional trade ties and offset their impact during Xi’s first overseas trip of the year.Xi is in Vietnam Monday and Tuesday, before visiting Malaysia and Cambodia on a tour that “bears major importance” for the broader region, Beijing has said.Speaking during a meeting with Lam Monday, Xi said Vietnam and China were “standing at the turning point of history… and should move forward with joint hands.”Xi earlier urged the two countries to “resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment”. He also reiterated Beijing’s line that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere” in an article published on Monday in Vietnam’s major state-run Nhan Dan newspaper.Vietnam’s top leader To Lam said in an article posted on the government’s news portal on Monday that his country “is always ready to join hands with China to make cooperation between the two countries more substantive, profound, balanced and sustainable”.- ‘Bamboo diplomacy’ -Vietnam was Southeast Asia’s biggest buyer of Chinese goods in 2024, with a bill of $161.9 billion, followed by Malaysia with Chinese imports worth $101.5 billion.Firming up ties with Southeast Asian neighbours could also help offset the impact from a closed United States, the largest single recipient of Chinese goods last year.Xi is visiting Vietnam for the first time since December 2023.China and Vietnam, both ruled by communist parties, already share a “comprehensive strategic partnership”, Hanoi’s highest diplomatic status.Vietnam has long pursued a “bamboo diplomacy” approach — striving to stay on good terms with both China and the United States.The two countries have close economic ties, but Hanoi shares US concerns about Beijing’s increasing assertiveness in the contested South China Sea.China claims almost all of the South China Sea as its own but its claims are disputed by the Philippines, Malaysia, Vietnam, Indonesia and Brunei.The Chinese leader insisted in his article on Monday that Beijing and Hanoi could resolve those disputes through dialogue.”We should properly manage differences and safeguard peace and stability in our region,” Xi wrote.”With vision, we are fully capable of properly settling maritime issues through consultation and negotiation,” he said.Vietnam’s Lam said in his article on the government news portal that “joint efforts to control and satisfactorily resolve disagreements… is an important stabilizing factor in the current complex and unpredictable international and regional situation”.After Vietnam, Xi will visit Malaysia from Tuesday to Thursday.Malaysian Communications Minister Fahmi Fadzil said Xi’s visit was “part of the government’s efforts… to see better trade relations with various countries including China”.Xi will then travel on Thursday to Cambodia, one of China’s staunchest allies in Southeast Asia and where Beijing has extended its influence in recent years.burs-aph/tc

Stock markets on Monday welcomed US tariff exemptions for electronics, but President Donald Trump signalled the reprieve would be temporary and warned no country would get “off the hook” in his trade war — especially China.The world’s two largest economies have been locked in a fast-moving game of brinkmanship since Trump launched a global tariff assault that particularly targeted Chinese imports.Tit-for-tat exchanges have seen US levies imposed on China rise to 145 percent, and Beijing setting a retaliatory 125 percent band on US imports.The US side had appeared to dial down the pressure slightly on Friday, listing tariff exemptions for smartphones, laptops, semiconductors and other electronic products for which China is a major source.But Trump and some of his top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list. “NOBODY is getting ‘off the hook’… especially not China which, by far, treats us the worst!” he posted on his Truth Social platform.The Chinese commerce ministry said Friday’s move was only “a small step” and all tariffs should be cancelled.Chinese President Xi Jinping warned Monday — as he kicked off a Southeast Asia tour with a visit to Vietnam — that protectionism “will lead nowhere” and a trade war would “produce no winner”.China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.Trump’s trade war has raised fears about an economic downturn as the dollar has tumbled and investors have dumped US government bonds, normally considered a safe haven investment.But Asian and European stock markets rose firmly on Monday, after days of extreme volatility over several tariff twists and turns since Trump presented his “Liberation Day” levies on April 2.The Paris and Frankfurt stock exchanges were up around two percent after midday and London gained 1.7 percent, while Tokyo finished 1.2 percent higher and Hong Kong rose 2.4 percent.Trump has imposed a universal tariff of 10 percent but paused higher duties for dozens of trading partners for 90 days, while maintaining pressure on China.- Short-lived relief? -Washington’s new exemptions will benefit US tech companies such as Nvidia and Dell as well as Apple, which makes iPhones and other premium products in China.But the relief could be short-lived with some of the exempted consumer electronics targeted for upcoming sector-specific tariffs on goods deemed key to US national defense networks.On Air Force One Sunday, Trump said tariffs on semiconductors — which powers any major technology from e-vehicles and iPhones to missile systems — “will be in place in the not distant future.””Like we did with steel, like we did with automobiles, like we did with aluminum… we’ll be doing that with semiconductors, with chips and numerous other things,” he said. “We want to make our chips and semiconductors and other things in our country,” Trump reiterated, adding that he would do the same with “drugs and pharmaceuticals.”The US president said he would announce tariffs rates for semiconductors “over the next week” and Commerce Secretary Howard Lutnick said they would likely be in place “in a month or two.”The White House says Trump remains optimistic about securing a deal with China, although administration officials have made it clear they expect Beijing to reach out first.US Trade Representative Jamieson Greer told CBS’s “Face the Nation” on Sunday that “we don’t have any plans” for talks between Trump and Xi.- Japan negotiates -The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure deals before the 90-day pause ends.”We’re working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries,” Greer told CBS.Japanese Economic Revitalisation Minister Ryosei Akazawa will visit Washington for negotiations this week, with his country’s automakers hit by Trump’s 25 percent tariffs on the auto sector.He warned that Japanese company profits are already “being cut day by day”.”I will do my best, bearing in mind what’s best for our national interests and what is most effective,” Akazawa said in parliament.burs-lth/yad

Stock markets rose firmly on Monday after fears over US President Donald Trump’s trade war were tempered by tariff exemptions for smartphones, laptops, semiconductors and other electronic products.But suggestions by Trump that the exemptions would be temporary added to market uncertainty as the dollar extended losses, helping gold to a fresh record high. European indices jumped around two percent in midday deals following last week’s rollercoaster for equities as the United States and China exchanged tit-for-tat levies. That tracked gains in Asia, with tech firms helping push Hong Kong up more than two percent, while Tokyo and Shanghai also closed higher. The United States on Friday appeared to slightly dial down the pressure on its trade war with Beijing, sparing electronic products — for which China is a major source — from painful “reciprocal” levies.US levies imposed on China have risen to 145 percent, and Beijing set a retaliatory 125 percent band on US imports.Trump on Sunday stressed that the exemptions had been misconstrued and that no country would get “off the hook” in his trade war — especially China.He said they would only be temporary as his team pursued fresh tariffs against many items on the list, including on semiconductors “over the next week”. The US leader’s comments “have complicated matters with this category of goods apparently set to be placed in a different tariff ‘bucket'”, said AJ Bell investment director Russ Mould.”Adding another layer of complexity on to an already complex trade policy may not be that well received by investors, but in the short term there is still likely to be palpable relief, particularly for the likes of Apple and Nvidia,” he added.Data on Monday showed Chinese exports soared more than 12 percent last month ahead of the swingeing tariffs, with the United States remaining the largest single destination, accounting for $115.6 billion worth of goods.”But shipments are set to drop back over the coming months and quarters,” warned Julian Evans-Pritchard, head of China economics at Capital Economics.”It could be years before Chinese exports regain current levels.”Amid uncertainty over Trump’s trade policy, the dollar extended losses against its major peers on Monday, with the euro around a three-year high and the Swiss franc at its strongest in 10 years.Treasuries also remained under pressure amid worries that China and other nations might dump their vast holdings, which could call into question the US government bonds as a safe haven.And gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 an ounce Monday.Wall Street finished solidly higher Friday, helped by comments from a top Federal Reserve official that the central bank was prepared to step in to support financial markets.- Key figures around 1040 GMT -London – FTSE 100: UP 1.9 percent at 8,113.90 pointsParis – CAC 40: UP 2.3 percent at 7,264.99Frankfurt – DAX: UP 2.5 percent at 20,884.13 Tokyo – Nikkei 225: UP 1.2 percent at 33,982.36 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 21,417.40 (close)Shanghai – Composite: UP 0.8 percent at 3,262.81 (close)New York – Dow: UP 1.6 percent at 40,212.71 (close)Dollar/yen: DOWN at 143.16 yen from 143.49 yen on FridayEuro/dollar: UP at $1.1388 from $1.1359 Pound/dollar: UP at $1.3184 from $1.3088Euro/pound: DOWN at 86.36 pence from 86.80 penceBrent North Sea Crude: UP 0.9 percent at $65.36 per barrelWest Texas Intermediate: UP 1.0 percent at $62.10 per barrel

Britain’s government on Monday raced to secure raw materials to keep the country’s last steelmaking blast furnaces running, as Beijing warned the UK against politicising the takeover of Chinese-owned British Steel.Prime Minister Keir Starmer’s government swooped in on Saturday to prevent the closure of British Steel’s main plant in northern Scunthorpe after its Chinese owners Jingye halted orders of raw materials such as coking coal and iron ore.The Labour-run government must now secure the materials to keep the two blast furnaces at the plant — the last in the UK which makes steel from scratch — running.Government minister James Murray said officials were at the site on Monday.”Their role is to make sure we do everything we can to … get those raw materials to the blast furnaces in time,” Murray told Times Radio.Other firms including Tata and Rainham Steel have also offered help securing supplies, the minister added.Charlotte Brumpton-Childs from the GMB trade union said she was “wholly reassured” that coking coal bound for the plant will be “paid for and unloaded over the next couple of days” at a nearby shipping terminal.However, Murray and Business Secretary Jonathan Reynolds were unable to guarantee they would be able to keep the twin furnaces going.Blast furnaces are difficult to restart once switched off.Failure to secure enough supplies to keep them running could seriously damage the plant — and risk making Britain the only G7 country without virgin steelmaking capacity needed for everything from railways to bridges.- China tensions -“If we hadn’t acted, the blast furnaces were gone and in the UK primary steel production would have gone,” Reynolds said on Sunday.Reynolds said Jingye had turned down an offer of some £500 million to buy materials, instead requesting more than twice that amount with few guarantees the furnaces would stay open.Murray clarified Jingye’s actions “don’t speak to the actions of all Chinese companies”.A Chinese foreign ministry spokesman said the UK should “avoid politicising trade cooperation or linking it to security issues, so as not to impact the confidence of Chinese enterprises in going to the UK”.Earlier on Sunday, Reynolds said the UK had been “naive” to allow its steel industry to be bought by the Chinese company, and that he “wouldn’t personally bring a Chinese company into our steel sector”.Some opposition British MPs accused Beijing of interference — with Tory MP Christopher Chope accusing Jingye of “industrial sabotage”.However, the government tried to tread a fine line to avoid inflaming tensions and risk fragile — but improving — ties with China.”It might not be sabotage, it might be neglect,” Reynolds told the BBC, clarifying that he did not believe Beijing had been involved in the recent events.- ‘Sensitive’ -While some sectors were “more sensitive than others”, a lot of “UK-Chinese trade is in non-contentious areas,” Reynolds added.Starmer’s administration has been at pains to improve relations with Beijing, with several high-ranking ministers holding bilateral talks in hopes of spurring economic growth.However, there are still security concerns and occasional spats, including over the weekend when a UK MP was denied entry into Hong Kong, sparking concerns from Britain’s foreign ministry.Jingye bought British Steel in 2020 and says it has invested more than £1.2 billion ($1.5 billion) to maintain operations, but was losing around £700,000 a day.The government saw its possible closure as a threat to Britain’s long-term economic security, given the decline of the UK’s once robust steel industry — and the threatened loss of some 2,700 jobs at the plant.The government, which stopped short of nationalising British Steel, is still hopeful of finding a private investor.”We want to find a private sector partner to co-invest,” Murray told Sky News, adding nationalisation remained a “very likely option”.

Stocks rose on Monday as trade war fears were tempered by Donald Trump’s announcement of tariff exemptions for electronics, although the dollar weakened and safe-haven gold hit a fresh record amid fears the relief would be short-lived.After the wild gyrations witnessed last week, markets got off to a relatively stable start following Friday’s news that the White House would exempt smartphones, semiconductors, computers and other devices from painful “reciprocal” levies.The announcement provided a much-needed injection of optimism for investors who had been sent scurrying for the hills in the wake of the US president’s tariff flip-flops and tit-for-tat measures by China.All three main indexes on Wall Street finished solidly higher, helped by comments from a top Federal Reserve official that the central bank was prepared to step in to support financial markets.Asia followed suit, with tech firms helping push Hong Kong more than two percent higher, while Tokyo, Shanghai, Sydney, Seoul, Singapore, Wellington, Jakarta and Manila were also well up.London, Paris and Frankfurt also saw big gains in the morning, while US futures were all sharply higher.”After a period of chaotic price action, chinks of light poke through the forest canopy providing a much-needed guide to the entities that price risk and liquidity for a living, which in turn, may see liquidity conditions improve and a relative calm return to markets,” said Chris Weston at Pepperstone. However, Trump looked to temper the remarks on Sunday, saying the exemptions had been misconstrued and writing on his Truth Social platform that “NOBODY is getting ‘off the hook’… especially not China which, by far, treats us the worst!”He said he would announce new tariffs on semiconductors “over the next week”.His commerce secretary, Howard Lutnick, said earlier chip levies would likely be in place “in a month or two”.- ‘No winners’ -Chinese President Xi Jinping said on Monday that protectionism “leads nowhere” and that a trade war would have “no winners”, days after Beijing hit US goods with 125 percent duties but also suggested it would not retaliate further in the future.Washington has ramped up tariffs on Chinese goods to 145 percent and excluded it from a 90-day pause of crippling levies the White House announced on Wednesday.Data on Monday showed Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs, with the United States remaining the largest single destination, accounting for $115.6 billion worth of goods.”But shipments are set to drop back over the coming months and quarters,” warned Julian Evans-Pritchard, head of China economics at Capital Economics.”It could be years before Chinese exports regain current levels.”As well as fuelling a panic on stock markets, the uncertainty caused by Trump’s trade policy has also hit the dollar amid concerns about the outlook for the world’s top economy.The greenback extended losses against its major peers on Monday, with the euro at a three-year high and the Swiss franc at its strongest in 10 years.Treasuries also remain under pressure amid worries that China and other nations might dump their vast holdings, which could call into question the US position as a rock-solid safe haven.And gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 on Monday, helped by the weaker dollar.Concerns about the impact of the new measures saw Boston Fed chief Susan Collins tell the Financial Times that officials would “absolutely be prepared” to deploy its various tools to help stabilise the financial markets if the need arose.She said in a separate interview with Yahoo Finance: “The higher the tariffs are, the more the potential slowdown in growth as well as elevation and inflation that one would expect.”She added that she expected inflation to rise “well above” three percent this year but saw no “significant” economic downturn.- Key figures around 0810 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 33,982.36 (close)Hong Kong – Hang Seng Index: UP 2.4 percent at 21,417.40 (close)Shanghai – Composite: UP 0.8 percent at 3,262.81 (close)London – FTSE 100: UP 1.9 percent at 8,114.12 Dollar/yen: DOWN at 142.90 yen from 143.49 yen on FridayEuro/dollar: UP at $1.1390 from $1.1359 Pound/dollar: UP at $1.3166 from $1.3088Euro/pound: DOWN at 86.52 pence from 86.80 penceWest Texas Intermediate: UP 0.4 percent at $61.75 per barrelBrent North Sea Crude: UP 0.4 percent at $65.00 per barrelNew York – Dow: UP 1.6 percent at 40,212.71 (close)