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Japanese tipples sake and shochu — and the knowledge and skills honed over centuries to make them — have been added to UNESCO’s Intangible Cultural Heritage list.AFP looks at how sake, a rice wine, is made, its myriad varieties, and its role in everyday life and traditions:- History -It’s believed people in the archipelago began brewing rice in a simple way some two millennia ago, with a third-century Chinese chronicle describing the Japanese as fond of alcohol.By around 1000 AD, the imperial palace had a department to supervise the manufacturing of sake and its use in rituals, according to the Japan Sake and Shochu Makers Association.The multi-staged brewing techniques still used today are thought to have been established around the 1700s.Nowadays there are around 1,400 sake breweries in Japan.Shochu, which was also added to UNESCO’s Intangible Cultural Heritage list on Wednesday, is a spirit distilled from different ingredients such as sweet potato, mainly in the country’s southwest.- The process -Sake is stronger than beer or wine made from grapes, but weaker than shochu. It is made by fermenting special rice with bigger and rounder grains than varieties eaten in meals.First, the grains are polished to remove the outer layers, revealing a water-absorbent white core rich in starch.Brewers wash, soak and steam the polished rice before growing a special mould on it called koji. They then mix it with water and yeast to create a starter.Adding more steamed rice and water several times sparks two types of chemical reactions in a single cask –- converting starch to sugar and sugar to alcohol — a more complex process than making wine from sugar-rich grapes.- What’s koji? -Koji is mould from bacteria found in humid Asian countries. It is an essential element of Japanese cuisine — used to make not just sake but also miso, soy sauce and other food.The genus designated as Japan’s national mould is called aspergillus oryzae, also known as “koji-kabi”.”Over more than a thousand years, brewers selected and cultivated the best type of mould from all the wild ones out there,” Taku Takahashi, from Tokyo’s Toshimaya Shuzo brewery, told AFP.The sake-making process as we know it now, where humans intervene to spark fermentation, was developed “after many, many failures”, he added.- Sake varieties -Generally speaking, there are two types of sake: one made purely from rice, and the other, mixed with distilled alcohol.The higher the grade of grain polishing, the fruitier and drier the sake.More polished varieties requiring more rice tend to be pricier, but some gastronomists appreciate less polished types for their rich and mellow flavour.Breweries adjust their flavours to suit local delicacies. For example, near the Pacific Ocean, dry sake is produced to pair with red-meat fish such as tuna and bonito.- How is it consumed? -Sake “has a very important role” in society and is drunk at weddings and funerals, Takahashi said.It is also drunk to mark store openings and election victories — or just to say “kampai” meaning “cheers” in Japanese pubs.Traditionally three ritual offerings are made to the many gods of Japan’s Shinto religion: rice, a rice cake and sake.And at Shinto weddings, the bride and groom drink sake from the same porcelain cup to symbolise their union.Breweries still hang a ball of cedar leaves outside, which change colour from green to brown — letting customers know when the “nouveau” sake is ready in early winter.- Going forward -Sake consumption has declined a lot in Japan over 50 years, as other drinks like beer and wine become more popular.The agriculture ministry says the country drank only 390 million litres of sake in 2023, down from 1.7 billion litres in 1973.However, exports of sake have more than doubled since 2011, and it is now brewed as far afield as New Zealand, France and the United States.

Bitcoin burst past $100,000 for the first time Thursday as traders welcomed Donald Trump’s pick to head the US securities commission, while Seoul stocks slipped as South Korea’s president faced impeachment after his brief imposition of martial law this week.After hovering around the mid-$90,000 mark in recent weeks, the popular cryptocurrency finally burst through the historic level in Asia after it emerged that Trump had chosen major crypto proponent Paul Atkins to take over as chair of the Securities and Exchange Commission (SEC).Atkins is founder of risk consultancy firm Patomak Global Partners, whose clients include companies in the banking, trading and cryptocurrency industries.And Trump’s transition team noted he had co-chaired the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.Atkins “recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before,” Trump said.Stephen Innes at SPI Asset Management said Atkins has “a track record of critiquing the SEC’s tough stance on cryptocurrency firms”.”This strategic move has electrified the crypto community, fuelling investor optimism about a potentially more accommodating regulatory landscape under Atkins’ watch,” said Innes.After breaking the key level, bitcoin continued to push higher and hit a peak of $103,800 Thursday. It has jumped more than 50 percent since Trump’s poll win — and around 140 percent since the turn of the year — on hopes the US President-elect will push through measures to deregulate cryptocurrencies.On the election campaign trail he pledged to make the United States the “bitcoin and cryptocurrency capital of the world”.The rally in bitcoin came as traders keep track of events in South Korea, after President Yoon Suk Yeol’s dramatic declaration of martial law which was lifted within hours.The nation’s opposition has now pushed for his impeachment, while the defence minister has resigned over the crisis.The upheaval comes as Asia’s number-three economy struggles to gain traction, while worries build on the possible impact of Trump’s presidency as he prepares to reignite his hardball trade policy when he takes power next month.But analysts saw some optimism.”The silver lining we think is that the swift reversal of the martial law underscores the resilience of South Korea’s institutions,” said analysts at BMI, a unit of Fitch Solutions.”For now, we expect limited implications for the economy and financial markets as the Bank of Korea and the ministry of finance have responded swiftly by reassuring investors,” they said.Trinh Nguyen, senior economist for emerging Asia at Natixis CIB, said the turmoil represented  “a growth shock rather than a sovereign risk”. Seoul’s Kospi fell only slightly in afternoon trade, having finished more than one percent down Wednesday.And the won — which initially hit a two-year low when the crisis erupted — remained at around 1,415 per dollar, slightly up from its levels before the martial law declaration late Tuesday.Investors are also keeping tabs on France after the three-month-old government of Prime Minister Michel Barnier was brought down in a no-confidence vote linked to a controversial budget proposal.The news out of the eurozone’s number-two economy had been expected and the euro saw no major impact, but the move injected fresh uncertainty into an already fraught political situation in France after divisive elections earlier this year.Elsewhere in Asia was mixed as investors struggled to track a record for all three main indexes on Wall Street, where soft data on jobs and services boosted hopes for a Federal Reserve interest rate cut this month.Tokyo, Shanghai, Sydney, Singapore, Mumbai and Taipei rose but Hong Kong, Wellington, Jakarta and Manila slipped.- Key figures around 0430 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 39,360.72 Hong Kong – Hang Seng Index: DOWN 1.0 percent at 19,547.01 (break)Shanghai – Composite: UP 0.2 percent at 3,370.18 (break)Seoul – Kospi Index: DOWN 0.5 percent at 2,451.41 Euro/dollar: UP at $1.0522 from $1.0510 on WednesdayPound/dollar: UP at $1.2708 from $1.2702Dollar/yen: DOWN at 150.26 yen from 150.56 yen Euro/pound: UP at 82.79 from 82.71 penceWest Texas Intermediate: UP 0.1 percent at $68.61 per barrelBrent North Sea Crude: UP 0.1 percent at $72.38 per barrelNew York – Dow: UP 0.7 percent at 45,014.04 (close)London – FTSE 100: DOWN 0.3 percent at 8,335.81 (close)

Bitcoin broke $100,000 for the first time Thursday as traders cheered Donald Trump’s decision to pick a crypto fan to head the US securities regulator, reinforcing optimism the new president will push through measures to deregulate the sector.The cryptocurrency soared through the mark to a peak of $103,800, having enjoyed a blistering rally since the November 5 election of Trump, who pledged on the campaign trail to make the United States the “bitcoin and cryptocurrency capital of the world”.The digital unit has jumped more than 50 percent since the tycoon’s poll win — and around 140 percent since the turn of the year.However, the unit’s advance stalled in recent weeks, sitting just below $100,000 as traders awaited new catalysts to buy in.That came with news that Trump has fingered major crypto proponent Paul Atkins to take over as chair of the Securities & Exchange Commission.Atkins, an SEC commissioner from 2002 to 2008, founded risk consultancy firm Patomak Global Partners in 2009, whose clients include companies in the banking, trading and cryptocurrency industries.An announcement from the Trump transition team noted that Atkins had been co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.”Paul is a proven leader for common sense regulations,” Trump said in a statement that emphasised Atkins’ commitment to “robust, innovative” capital markets.”He also recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before,” Trump added.He would replace Gary Gensler, who led a crackdown on the sector after a 2022 market rout. Even so, the SEC this year authorised the trading on the American market of two new financial products allowing a wider public to buy cryptocurrencies, called ETFs.One is backed by the price of bitcoin and the other by ether, the second most popular unit by capitalisation.”Atkins, a conservative legal eagle with a track record of critiquing the SEC’s tough stance on cryptocurrency firms, is expected to steer a more crypto-friendly course,” said Stephen Innes at SPI Asset Management.”This strategic move has electrified the crypto community, fueling investor optimism about a potentially more accommodating regulatory landscape under Atkins’ watch, aligning with broader Republican advocacy for a lenient approach to the flourishing digital asset market.”- Trump’s U-turn -Despite having once branded cryptocurrencies a “scam”, Trump changed his stance and has been a major advocate of the unit during his election campaign.In September, he announced that he, along with his sons and entrepreneurs, would launch a digital currency platform named World Liberty Financial. He has also become a close friend of tycoon Elon Musk, who he said would lead a new US government-efficiency group tasked with cutting federal waste.Musk reportedly spent more than $100 million to help Trump regain the White House, repeatedly boosting his candidacy on his X social media platform.Reacting on X to the news of Bitcoin hitting the $100,000 mark, Musk wrote: “Wow”.”Layer on top expectations he will strip back regulations on the crypto industry and you begin to understand why investors have piled into the digital currency and related stock,” said Dan Coatsworth, an analyst at investment group AJ Bell.Among the measures expected from the sector is the creation of a strategic reserve of bitcoins in the United States, consisting mainly of tokens seized by the courts, which could push other countries to grant more legitimacy to the virtual currency.And Samer Hasn, of XS.com, added that the prospect of relaxed regulation was fuelling “the hope of seeing cryptocurrencies integrate more deeply into the economic life” of the country.Cryptocurrencies have made headlines since their creation, from their extreme volatility to the collapse of several industry giants, foremost among them the FTX exchange platform.Bitcoin was conceived in 2008 by a person or group writing under the name Satoshi Nakamoto.It was pitched as a way to break free of mainstream financial institutions by establishing a decentralised platform for transactions.The digital currency is created — or “mined” — as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.Bitcoin has long been criticised for being the currency of choice for making untraceable payments on the dark web, the hidden part of the internet used for criminal activities.  The asset has often come under attack for facilitating money laundering and allowing extortion through ransomware attacks.

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

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

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

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

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

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

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