Afp Business Asia

Mango deal sweetens ties between Bangladesh and China

Bangladesh waved off its first consignment of mangoes to China on Wednesday, a largely symbolic export as Beijing sweetens ties after relations soured between Dhaka and former ally and neighbour India.Bangladesh, still reeling from the political fallout of a 2024 uprising that ended the autocratic rule of Sheikh Hasina — who fled by helicopter to New Delhi — has since been courted by Beijing, India’s rival.”It is such a great pleasure to jointly witness this historic moment, as the first consignment of Bangladesh’s premium mangoes sets off for China,” China’s ambassador to Bangladesh Yao Wen said, alongside government officials.Bangladesh, largely encircled by land by India, has seen relations with New Delhi turn icy.Interim Bangladeshi leader Muhammad Yunus’s first state visit was to China, while Bangladesh has also moved closer to Pakistan, India’s arch-enemy.”President Xi Jinping has emphasised on several occasions that China’s door of opening up will not close, but will only open wider,” Yao said, at a small ceremony at the airport alongside Bangladeshi ministers.”I am confident that the export of Bangladeshi mangoes to China is just the beginning,” he added.In China, the fruit has a particular historic diplomatic resonance — including the curious cult of the mango.After Chairman Mao Zedong was pictured gifting a mango to a group of workers in 1968, during the mania of the Cultural Revolution, the fruit became an object of veneration.Those mangoes were reportedly a gift from the foreign minister of Pakistan — and at that time, in 1968, Bangladesh had yet to win its independence from Islamabad.Export levels are small so far, just 50 tonnes in an initial phase, but both Bangladesh and China said they hoped to increase that.In the past year, China has sponsored several tours for Dhaka’s political party leaders, and has begun hosting Bangladeshi patients in its hospitals.India has long been wary of China’s growing regional clout and the world’s two most populous countries compete for influence in South Asia, despite a recent diplomatic thaw.

Stocks wobble as relief rally fades, Japan debt sale disappoints

Stock markets dipped Wednesday as optimism over easing trade tensions ran out of steam and a weak Japanese debt sale fuelled concerns about rising bond yields.European and Asian equities struggled to track a rally the previous day on Wall Street fuelled by forecast-beating US consumer confidence data and easing tensions between the US and European Union.”The fizz of relief boosting stocks so far this week looks set to go a little flat, as a wait-and-see mood looks set to spread on Wall Street,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Investors also awaited first-quarter earnings from US chipmaking giant Nvidia later on Wednesday for signs of uncertainty on the business, particularly from US chip export restrictions, analysts said. Markets had been lifted at the start of the week after US President Donald Trump delayed 50 percent tariffs on the EU that had sparked a market rout. But “risk sentiment has lost some steam on Wednesday”, said Kathleen Brooks, research director at trading group XTB.”There are no major drivers of sentiment this morning, however, multiple factors have led to a softening in risk appetite including, higher bond yields after a weak auction of Japanese debt,” she added.London, Paris and Frankfurt were all lower in midday deals, after giving up earlier gains. In Asia, Hong Kong fell while Shanghai and Tokyo were flat at the close. Wellington was also in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.The yen lost some of its early gains after the auction of 40-year Japanese government bonds (JGBs) was met with the worst take-up since July.That came after last week saw the worst auction of 20-year notes for more than a decade.The cost of government debt has risen around the world in recent weeks — notably hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.The Bank of Japan’s decision to reduce its purchases of JGBs as it looks to tighten monetary policy in the face rising inflation has added to the rising yields.The gloomy auction reversed Tuesday’s rally that came after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales, meaning there would be less supply.Bonds yields rise and prices fall when demand is weak.Still, Masahiko Loo, senior fixed-income strategist at State Street Global Advisors, said the JGB panic may have been overdone.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025,” he said.- Key figures at around 1045 GMT -London – FTSE 100: DOWN 0.2 percent at 8,762.29 pointsParis – CAC 40: DOWN 0.1 percent at 7,820.84Frankfurt – DAX: DOWN 0.2 percent at 24,188.93Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)New York – Dow: UP 1.8 percent at 42,343.65 (close)Euro/dollar: UP at $1.1330 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3500 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: UP at 83.93 pence from 83.88 penceBrent North Sea Crude: UP 1.0 percent at $64.15 per barrelWest Texas Intermediate: UP 1.0 percent at $61.52 per barrel

France, Indonesia call for Israeli-Palestinian progress as Macron visits

France and Indonesia called Wednesday for progress on “mutual recognition” between Israel and the Palestinians at a key meeting next month as Emmanuel Macron visited Jakarta, bringing the world’s most populous Muslim-majority nation into his diplomatic efforts.It came as Paris and Jakarta signed a series of cooperation agreements, with Macron seeking to deepen trade and defence ties with Southeast Asia’s largest economy on a three-country tour promoting France as a balancing power between the United States and China.Speaking next to his French counterpart, Indonesian President Prabowo Subianto made a rare pledge to recognise Israel if it allowed for a Palestinian state. Indonesia has no formal ties with Israel and support for the Palestinian cause runs high there.”Indonesia sees that the two-state solution and the freedom of Palestine is the only way to achieve the true peace,” Prabowo told a news conference.”We must acknowledge and guarantee Israel’s rights as a sovereign country that must be paid attention to and guaranteed safety. Indonesia has stated that once Israel recognises Palestine, Indonesia is ready to recognise Israel and open the diplomatic relationship.”Macron said Paris hopes to “trigger a movement of recognition for a Palestinian state under certain conditions”, including the demilitarisation of Hamas and recognition of Israel’s right to exist and protect itself.”This is the only way and your president this morning made a very important speech,” he said of Prabowo’s remarks.Macron earlier issued a joint statement with Prabowo that condemned Israeli plans to take control of Gaza and any moves to “forcibly remove the Palestinian population from their homeland”.But they also called for restoring the political prospect of the two-state solution at a conference Paris will co-chair with Saudi Arabia at the UN headquarters in New York next month, and expressed hope for a “credible roadmap”.They said the event “should allow for an irreversible path towards the realisation of a Palestinian State, (and) mutual recognition between Israel and Palestine”.Macron held talks with Prabowo after being greeted by a gun salute and thousands of young Indonesians waving French flags.”Our partnership on all the fields, defence and security, economy, culture is already strong, but we are strengthening it,” Macron told Prabowo.”Thank you very much for your support, our friendship and your very special attachment to France.”Prabowo replied: “Merci beaucoup, monsieur!”- ‘Third way’ -The nations on Wednesday signed a series of memoranda of understanding on cooperation in a range of fields including defence, trade, agriculture, disaster management, culture and transport.The French president was later scheduled to meet investors and students, and attend a state dinner. On Thursday, he will travel to Yogyakarta on Indonesia’s Java island to visit the world’s largest Buddhist temple, before heading to Singapore to conclude his six-day tour. In the face of US President Donald Trump’s tariffs and Washington’s economic confrontation with China, Macron was seeking to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.French Armed Forces Minister Sebastien Lecornu said Indonesia signed a letter of intent for future purchases of more Rafale jets from French company Dassault Aviation, without specifying figures or a timeline.Indonesia also pledged to buy light frigates and Scorpene submarines, as well as Caesar howitzers and ammunition from French-German defence group KNDS, the minister wrote on X.French mining giant Eramet also signed a memorandum of understanding with Indonesia’s new sovereign wealth funds Danantara and the Indonesian Investment Authority “to explore the establishment of a strategic investment platform in the nickel sector”, the mining firm said in a statement.In Vietnam on Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs.Macron warned that “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.

Asian stocks rally fades as Japan debt sale disappoints

Asian equities wobbled Wednesday as investors struggled to track a Wall Street rally fuelled by forecast-beating US consumer confidence data, with a weak Japanese debt sale adding to worries about rising bond yields.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs on the European Union he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday delaying them soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media flagging progress with Brussels.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.However, investors were unable to maintain their momentum, with optimism sapped by the disappointing sale of 40-year Japanese government bonds (JGBs).Hong Kong, Sydney, Mumbai and Jakarta all fell, with Wellington also in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Shanghai and Jakarta were barely moved, while Singapore, Seoul, Taipei, Manila and Bangkok rose with London, Frankfurt and Paris.Tokyo was flat and the yen lost early gains after the auction of the long-term JGBs was met with the worst take-up since July. That came after last week saw the worst auction of 20-year notes for more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.The Bank of Japan’s decision to reduce its purchases of JGBs — as it looks to tighten monetary policy in the face rising inflation — has added to the rising yields.The poor result reversed Tuesday’s rally that came after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Bonds yields rise and prices fall when demand is weak.Still, Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the JGB panic may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”- Key figures at around 0810  GMT -Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)London – FTSE 100: UP 0.2 percent at 8,795.26Euro/dollar: DOWN at $1.1326 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3501 from $1.3504Dollar/yen: DOWN at 144.33 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.5 percent at $61.21 per barrelBrent North Sea Crude: UP 0.5 percent at $64.41 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)

Macron in Indonesia to deepen trade, defence ties

French President Emmanuel Macron met his Indonesian counterpart on Wednesday, seeking to deepen trade and defence ties with Southeast Asia’s largest economy on the second leg of a three-country tour promoting France as a balancing power between the US and China.Macron met Prabowo Subianto at the presidential palace in capital Jakarta, hailing their countries’ close relationship after being greeted by a guard of honour, gun salute and thousands of young Indonesians waving French flags.”Our partnership on all the fields, defence and security, economy, culture is already strong, but we are strengthening it,” Macron told Prabowo.”I think this is to the best way to… handle the business in challenging times. So thank you very much for your support, our friendship and your very special attachment to France.”Prabowo replied: “Merci beaucoup, monsieur!”The French president will later meet investors and students and attend a state dinner. On Thursday he will travel to Yogyakarta on Indonesia’s Java island to visit the world’s largest Buddhist temple, before heading to Singapore to conclude his six-day tour. Indonesian Defence Minister Sjafrie Sjamsoeddin said after welcoming Macron that the countries would “strengthen their strategic partnership in the defence sector” by signing a letter of intent on defence equipment, the presidency said in a statement.In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron is seeking to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He has indicated he will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the trip. “We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversify trade networks in the face of Trump’s tariffs.So Macron’s office is looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, was to be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

Nickel rush for stainless steel, EVs guts Indonesia tribe’s forest home

Sitting deep in east Indonesia’s lush jungle, Bokum, one of the country’s last isolated hunter-gatherers, has a simple message for the nickel miners threatening his home: “This is our land.”He belongs to the Hongana Manyawa Indigenous tribe, which includes around 3,000 “contacted” members like him, and another 500 who reject contact with the modern world.Their home on Halmahera Island was once a breathtaking kaleidoscope of nature that provided sanctuary and sustenance. But it is being eaten away by the world’s largest nickel mine, as Indonesia exploits vast reserves of the metal used in everything from electric vehicles to stainless steel.”I’m worried if they keep destroying the forest,” Bokum told AFP in a clearingin central Halmahera.”We have no idea how to survive without our home and food.” The plight of the Hongana Manyawa, or “People of the Forest”, started gaining attention in Indonesia last year after a video widely shared on Facebook showed emaciated, uncontacted members emerging from their rapidly changing forest home to beg for food. But the remote region — about 1,500 miles (2,414 kilometres) from capital Jakarta — mostly remains far from the public consciousness.AFP travelled into the Halmahera jungle to see how the sprawling Weda Bay Nickel concession has affected the once-pristine tribal lands that the Hongana Manyawa call home.During a three-day, 36-kilometre (22-mile) trek across parts of the 45,000-hectare concession, the mining operation’s impacts were starkly clear.Booms from controlled explosions to expose nickel shook birds from trees, while helicopters buzzing overhead shared the skies with green parrots, Moluccan owls, hornbills and giant bees.Tree stumps provided evidence of logging, and off-duty mine guards were seen hunting tropical birds with air guns.Throughout the night, the sound of excavators scratching the topsoil penetrated the thick vegetation, competing with frog calls and the drone of insects.Mud that locals say is stirred up by mining has stained rivers copper, and the water leaves skin irritated.In 22 river crossings, only a few fish were visible. Tribe members say they have mostly disappeared.AFP did not seek to meet uncontacted Hongana Manyawa.Bokum emerged from isolation earlier in his life, but still has very limited contact with the outside world.He and his wife Nawate agreed to meet AFP around 45 minutes from his home deeper in the jungle.But he could not stay long: en route, he spotted miners and wanted to return to ward them off.”The company workers have been trying to map our territory,” he told AFP, wearing a black cowboy hat, shirt and rolled-up jeans.”It’s our home and we will not give it to them.”- ‘Prevent their annihilation’ -Indonesia’s constitution enshrines Indigenous land rights, and a 2013 Constitutional Court ruling promised to give local communities greater control oftheircustomary forestsBut environmental groups say the law is not well enforced.With no land titles, the Hongana Manyawa have little chance of asserting their claims to stewardship of forest that overlaps with Weda Bay’s concession.According to Weda Bay Nickel (WBN), its mine on Indonesia’s Maluku islands accounted for 17 percent of global nickel production in 2023, making it the largest in the world. WBN is a joint venture of Indonesia’s Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.WBN told AFP it is “committed to responsible mining and protecting the environment”, and trains employees to “respect local customs and traditions”.It said there is “no evidence that uncontacted or isolated groups are being impacted by WBN’s operations”.Eramet told AFP it has requested permission from WBN’s majority shareholders for an independent review of “engagement protocols” with Hongana Manyawa, expected this year.Further review of how the tribe uses the area’s forests and rivers is also underway, it added, though it said there was currently “no evidence” of members living in isolation in its concession.The Indonesian government, which acknowledges most of the concession was previously protected forest, told AFP otherwise.There is “recognition of evidence of the existence of isolated tribes around Weda Bay”, said the directorate general of coal and minerals at Indonesia’s energy ministry.It said it was committed to “protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment”.Indigenous rights NGO Survival International said that was Jakarta’s first acknowledgement of uncontacted, or “isolated”, Hongana Manyawa in the area. It called the admission a “hammer blow” to Eramet’s claims and said a no-go area to protect the tribe was “the only way to prevent their annihilation”.Both WBN and Eramet said they work to minimise impact on the environment. Eramet’s new CEO will be in Indonesia this week, seeking permission to expand the mine’s capacity.Tsingshan and Antam did not respond to AFP requests for comment.Bokum said mining has driven away the wild pigs, deer and fish he once caught for food. Now, he looks for shrimp and frogs in less-affected smaller streams.”Since the company destroyed our home, our forest, we’ve been struggling to hunt, to find clean water,” he said in the Indigenous Tobelo language.”If they keep destroying our forest we cannot drink clean water again.”- ‘Go away’ -Nickel is central to Indonesia’s growth strategy. It banned ore exports in 2020 to capture more of the value chain.The country is both the world’s largest producer, and home to the biggest-known reserves.Mining — dominated by coal and nickel — represented nearly nine percent of its GDP in the first quarter of 2025, government data shows.Nickel mined in the Halmahera concession is processed at the Weda Bay Industrial Park.Since operations began in 2019, the area has transformed rapidly, into what some call a “Wild West”.At a checkpoint near the industrial park, men stopped AFP to demand cash and forced their vehicle to move elsewhere, before a local government official intervened.The towns on the mine edge — Lelilef Sawai, Gemaf and Sagea — form a chaotic frontier. Employees in hard hats crisscross muddy roads that back up with rush-hour traffic.Shops catering to labourers line the roadside, along with prostitutes looking for business in front of bed bug-infested hostels.The mining workforce has more than doubled since 2020 to nearly 30,000 people. Locals say these are mostly outsiders whose arrival has sparked tensions and coincided with rising cases of respiratory illness and HIV/AIDS.Smelter towers belch a manmade cloud visible from kilometres away.”Mining companies have not implemented good practices, have violated human rights and there is rarely any evaluation,” said Adlun Fiqri, spokesman for the Save Sagea campaign group.Inside the jungle, a similar story is playing out, said Hongana Manyawa member Ngigoro, who emerged from the uncontacted as a child.”Long before the mining, it was really quiet and good to live in the forest,” said the 62-year-old, as he marked his route by slicing pock-marks into trees with his machete.He remains at ease in the forest, using reeds for shade and bamboo shoots to boil water.”There was no destruction. They were not afraid of anything,” he said.He climbed nimbly down a steep slope by clinging to tree roots before crossing a riverbed peppered with garnierite — green nickel ore.”This land belongs to the Hongana Manyawa,” he said.”They existed living in the rainforest before even the state existed. So go away.”That sentiment echoes elsewhere on Halmahera. At least 11 Indigenous people were recently arrested for protesting mining activity in the island’s east, Amnesty International said Monday.- ‘We will not give our consent’ -Despite their “contacted” status, Bokum and Nawate have rarely met outsiders.They approached haltingly, with Nawate refusing to speak at all, instead surveying her visitors with a cautious smile.Bokum described moving at least six times to outrun encroaching miners. NGOs fear the mine operation risks wiping out the tribe.”They rely entirely on what nature provides for them to survive and as their rainforest is being devastated so too are they,” said Callum Russell, Asia research and advocacy officer at Survival International.”Any contact with workers in the forest runs the risk of exposing them to deadly diseases to which they have little to no immunity.”The government told AFP it has “conducted documentation” to understand isolated tribes near Weda Bay, and involved them “in the decision-making process”.Activists say this is impossible given most of the group do not use modern technology and limit contact with outsiders.Amid growing scrutiny, there have been rumblings of support for the tribe, including from some senior politicians.Tesla, which has signed deals to invest in Indonesian nickel, has mooted no-go zones to protect Indigenous peoples.And Swedish EV company Polestar last year said it would seek to avoid compromising “uncontacted tribes” in its supply chain. For Bokum however, the problem is already on his doorstep.A 2.5-kilometre-long (1.5 miles) open pit lies just over the hill from a plot where he grows pineapple and cassava.Bokum and Nawatereceived mobile phones from mine workers — in an unsuccessful attempt to convince them to approve mining operations.They and other tribe members use numerical codes to identify contacts and make calls.They must approach the concession to pick up signal, but when mine workers near his home, Bokum wields his machete to scare them off.”This is our land. Our home,” he said.”We will not give our consent to destroy it.”

Asian stocks track Wall St rally as trade fears ease, eyes on Japan debt

Asian equities rose Wednesday following a Wall Street rally as traders cheered forecast-beating US consumer confidence data and a drop in bond yields, with eyes now on a key sale of Japanese debt.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media saying progress with Brussels was being made.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.The lift in the Conference Board’s index was the first improvement after five months of decline and dragged it up from lows last seen at the onset of the Covid-19 pandemic. However, the report did warn that tariffs remained a key concern.Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all rose. Wellington was in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Tokyo was also on the front foot as investors eye the crucial sale of Japanese 40-year government bonds, after an auction of 20-year notes this month saw the worst take-up in more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.However, yields tumbled Tuesday after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the recent panic over the Japanese government bond (JGB) market may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”The drop in Japanese yields sent the yen lower Tuesday, and it held those losses in early trade Wednesday, sitting around 144.30 per dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37.918.86 (break) Hong Kong – Hang Seng Index: UP 0.2 percent at 23,421.96Shanghai – Composite: UP 0.2 percent at 3,346.13Euro/dollar: DOWN at $1.1323 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3502 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.8 percent at $61.36 per barrelBrent North Sea Crude: UP 0.7 percent at $64.56 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)

Macron in Indonesia seeks to deepen trade, defence ties

Emmanuel Macron will seek to deepen trade and defence ties on a visit to Indonesia Wednesday, the second leg of a three-country Southeast Asia tour promoting France as a balancing power between the US and China.The French president will be received by Indonesian counterpart Prabowo Subianto before meeting investors and students in Southeast Asia’s largest economy and attending a state dinner. “I’m really excited to meet again with my brother President Prabowo, a good friend of mine,” he said after arriving Tuesday evening in the capital Jakarta, where he was greeted by the foreign and defence ministers. “The relationship with your country is a very strategic and friendly one,” Macron said.On Thursday, he will travel to Yogyakarta on Indonesia’s main island Java where he will visit the world’s largest Buddhist temple before heading to Singapore to conclude his six-day tour. In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron will seek to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the tour.”We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that Trump’s “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversity trade networks in the face of Trump’s tariffs.So Macron’s office will be looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, will be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

China not trying to ‘replace’ US in Colombia: ambassador

China is not seeking to “replace” the United States as the top trading partner of Colombia, Beijing’s ambassador to Bogota, whose president has announced a pivot to China, told AFP on Tuesday.Until recently Colombia was one of the United States’ closest trade and security partners in Latin America. But the country’s first leftist president Gustavo Petro, who has crossed swords with his US counterpart Donald Trump, is trying to steer more trade towards China.China’s ambassador to Bogota denied that Beijing was seeking to topple the United States from its pole position in Latin America.”China is coming to offer our collaboration, not to replace anyone, nor seeking to take someone’s place,” Zhu Jingyang told AFP on the sidelines of a media briefing.Earlier this month, Colombia formally joined China’s vast Belt and Road (BRI) infrastructure program.Bogota’s accession boosted Beijing’s efforts to deepen ties with Latin America, a key battleground in its confrontation with the Trump administration.It came in the wake of a showdown between Trump and Petro over deportation flights which ended in humiliation for Colombia.After initially denying entry to US military planes carrying deported Colombians in January, Bogota sent its own planes to bring them home to avoid hefty US tariffs threatened by Trump.The business community in Latin America’s fourth-biggest economy has expressed fears that Petro’s rapprochement with China could damage Colombia’s trade with the United States.The State Department’s special envoy for Latin America, Mauricio Claver-Carone, warned recently that the United States might start buying flowers and coffee — two of Colombia’s top exports to the United States — from other Latin American countries instead.Zhu accused the Trump administration of using “intimidation” and “blackmail” to try keep Colombia in its orbit.Two-thirds of Latin American countries have already joined the Belt and Road Initiative.

Stocks climb as US-EU trade tensions ease

Wall Street shares bounced on Tuesday while Europe maintained a rally after US President Donald Trump delayed huge tariffs on imports from the EU over the long holiday weekend.New York’s main stock markets all rebounded vigorously as trading resumed after the Memorial Day weekend, with the broad-based S&P 500 finishing more than two percent higher and the tech-heavy Nasdaq rising 2.5 percent.Nvidia notably adding 3.2 percent ahead of its latest earnings.In Europe, Frankfurt hit a new record high before ending 0.8 percent in the green, while Paris finished flat and London closed up 0.7 percent.”UK and US investors returned from their respective long weekends with a spring in their step thanks to the abrupt decision to pause higher tariffs on the EU,” said Chris Beauchamp, chief market analyst at online trading platform IG.Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below five percent following reports Japan will temper its long-term bond issuance. “It is unwise to hope that all upcoming US data will be as encouraging as today’s confidence figure, but it is certainly a relief that US consumers have managed to maintain their sunny outlook,” Beauchamp added, as US data showed a confidence jump after five months of declines.Trump sent markets into a tailspin Friday when he threatened to hit EU goods with a 50 percent tariff from June 1, saying talks were “going nowhere.”But after a phone call Sunday with European Union chief Ursula von der Leyen, Trump delayed the levies until July 9 to give more time for negotiations.EU trade commissioner Maros Sefcovic said Monday that following calls with top American officials the bloc remained “fully committed” to reaching a trade agreement with the United States.”This postponement has helped soothe tensions following last week’s turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute,” said David Morrison, senior market analyst at Trade Nation.Analysts cautioned, however, that Trump’s trade policies have been erratic.”Donald Trump has rolled back so many times on tariffs, that the message does not hold as much weight these days,” said Kathleen Brooks, research director at trading platform XTB.The dollar, which has slumped since Trump launched his tariffs blitz last month, gained against other major currencies on Tuesday. In Asia, Hong Kong and Tokyo closed higher but Shanghai fell.Amid oversupply fears, oil prices slid on the eve of an OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia. – Key figures at around 2030 GMT -New York – Dow: UP 1.8 percent at 42,343.65 (close)New York – S&P 500: UP 2.1 percent at 5,921.54 (close)New York – Nasdaq Composite: UP 2.5 percent at 19,199.16 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)Paris – CAC 40: FLAT at 7,826.79 (close)Frankfurt – DAX: UP 0.8 percent at 24,226.49 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close) Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)Euro/dollar: DOWN at $1.1329 from $1.1387 on MondayPound/dollar: DOWN at $1.3504 from $1.3564Dollar/yen: UP at 144.34 yen from 142.85 yenEuro/pound: DOWN at 83.88 pence from 83.95 penceBrent North Sea Crude: DOWN 1.0 percent at $64.09 per barrelWest Texas Intermediate: DOWN 1.0 percent at $60.89 per barrelburs-jmb/mlm