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Most markets rose in Asia on Tuesday following another rally on Wall Street sparked by tech giants as traders try to assess Donald Trump’s tariff plans following a report he may take a more targeted approach.Eyes were also on the release of closely watched US jobs data at the end of the week after the Federal Reserve scaled back its interest rate cut expectations and took a more hawkish turn.After a tepid start to the week, Asian investors fought to recover on Tuesday after a tech-fuelled rally in the S&P and Nasdaq — with Nvidia hitting a record — as strong results from Taiwan-based chip giant Foxconn sparked a fresh rush for semiconductors.The US gains were also helped after The Washington Post said Trump’s aides were weighing plans to apply tariffs only to goods in certain critical sectors — a more narrow definition than the president-elect previously proposed.The report comes after Trump warned last year that he would slam huge levies on China, Canada and Mexico amid fears of a return to his hardball trade policy.However, he later hit back at the Post story, saying it “incorrectly states that my tariff policy will be pared back. That is wrong”. He added that it was “just another example of Fake News”.Most markets rose in early Asian business, with Tokyo up two percent helped by a weak yen, while Shanghai, Sydney, Singapore, Seoul, Taipei, Mumbai, Bangkok and Jakarta were also higher. Wellington and Manila fell.Hong Kong also retreated as tech firms took a hit with Tencent diving more than seven percent after it was named by the United States in a list of “Chinese military companies”. Its US-listed shares shed 7.8 percent.A spokesperson for Tencent said the company’s inclusion on the list “is clearly a mistake”, and that “we are not a military company or supplier”.Still, Morningstar senior equity analyst Ivan Su said: “Given Tencent’s business model -—which primarily revolves around social networking and online gaming — we believe the company has a good chance to secure exclusion through US courts.”Major battery manufacturer CATL, which was also named on the list, briefly sank more than five percent in Shenzhen before paring the losses.The announcement came just weeks before Trump returns to the White House, with many commentators fearing another trade war with China.There is also growing concern that his plans to slash taxes, remove regulations, impose tariffs on imports and crack down on immigration will reignite inflation, putting pressure on the Fed to keep borrowing costs higher for longer.”While an aggressive Trump may try to deliver large fiscal stimulus, stronger demand would quickly run into a deteriorating supply side of the US economy,” said David Rees, senior emerging markets economist at Schroders.”Despite being partially absorbed by the stronger US dollar and profit margins, substantially higher tariffs would be likely to increase goods inflation.”But the greater threat to inflation probably comes from a crackdown on immigration, along with mass deportations, if it leads to labour shortages that would ultimately result in higher wages and services inflation.”Friday’s non-farm payroll report is the next big marker for investors hoping for some idea about the Fed’s plans for rates after it scaled back its forecasts for cuts in 2025 last month.London, Paris and Frankfurt opened lower.- Key figures around 0810 GMT -Tokyo – Nikkei 225: UP 2.0 percent at 40,083.30 (close)Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,447.58 (close)Shanghai – Composite: UP 0.7 percent at 3,229.64 (close)London – FTSE 100: DOWN 0.5 percent at 8,207,51Euro/dollar: UP at $1.0418 from $1.0388 on MondayPound/dollar: UP at $1.2556 from $1.2518Dollar/yen: DOWN at 157.53 yen from 157.64 yenEuro/pound: DOWN at 82.95 pence from 82.98 penceWest Texas Intermediate: DOWN 0.3 percent at $73.34 per barrelBrent North Sea Crude: DOWN 0.2 percent at $76.16 per barrelNew York – Dow: DOWN 0.1 percent at 42,706.56 (close)

US Secretary of State Antony Blinken insisted during a visit to Tokyo on Tuesday that ties with Japan were stronger than ever, days after President Joe Biden blocked Nippon Steel’s takeover of US Steel.Business groups say the move could have a chilling effect on Japan’s standing as the biggest foreign investor in the United States, just as Washington seeks closer relations to counter China.Two weeks before president-elect Donald Trump takes office, and with Marco Rubio slated to replace Blinken, the top US diplomat recalled that he came to Japan on his first trip in 2021.The visits at the beginning and end of his tenure show “the centrality of the US-Japan alliance” for Washington, Blinken told reporters after meeting Prime Minister Shigeru Ishiba.”As we look at the last four years, we’ve seen an alliance, a partnership, a friendship, that’s grown stronger than it’s ever been,” Blinken said.He pointed to expanding security ties — including three-way partnerships with South Korea and the Philippines and a four-way grouping with Australia and India.”Our economies are extraordinarily intertwined. We are the largest investors in each other’s economies,” Blinken said. Japanese firms invested almost $800 billion in the United States in 2023.Blinken made no mention of Biden’s decision last week to block Nippon Steel’s $14.9-billion takeover of long-struggling US Steel, citing national security concerns.The two companies filed a lawsuit on Monday against the Biden administration’s “illegal interference” in the transaction.- More protectionism -“We’re certain the lawsuit will reveal a set of facts that clearly violate the constitution and the law, so I believe we have a chance of winning,” Nippon Steel chair Eiji Hashimoto said on Tuesday.Trump, who takes office on January 20, “wants to make manufacturing strong again”, Hashimoto added.”This is exactly in line with what we’re doing,” he said.Nippon Steel had touted the takeover as a lifeline for a US company long past its heyday but opponents warned that the Japanese owners would slash jobs.US Steel and Nippon Steel argued in their suit that Biden had blocked the deal for political reasons by ignoring the rule of law to gain favour with workers’ unions.Protectionism is expected only to intensify under Trump, who in his first term exited a nascent Pacific-wide trade pact and has vowed to use tariffs to protect US industry.The president-elect made clear on Monday he would not reverse the Nippon Steel decision.”Why would they want to sell U.S. Steel now when tariffs will make it a much more profitable and valuable company?” he wrote on his Truth Social platform.”Wouldn’t it be nice to have U.S. Steel, once the greatest company in the world, lead the charge toward greatness again?”- Investment concerns -Foreign Minister Takeshi Iwaya raised the Nippon Steel case with Blinken and stressed the importance of Japanese investment in the United States, Tokyo’s foreign ministry said.Ishiba said Monday that the United States should “explain clearly” the security worries cited by Biden.”There are concerns being raised within Japan’s industrial world over future Japan-US investment,” Ishiba warned in unusually outspoken comments.Yasuhide Yajima, chief economist at NLI Research Institute, told AFP that Biden’s decision would “certainly create a hurdle for Japanese firms, especially manufacturers, to do business over there”.Blinken, however, focused on areas of cooperation.After a sushi breakfast at a famous fish market, he held a working lunch with Iwaya and discussed North Korea’s latest missile test, carried out Monday as Blinken visited Seoul.Blinken also spoke with Japanese leaders about Russia’s invasion of Ukraine, and tensions over Taiwan and China’s “dangerous and destabilising behaviour” in the South China Sea, State Department spokesman Matthew Miller said.In a key goal for his trip, Blinken voiced confidence that South Korea and Japan would preserve cooperation, including intelligence-sharing on North Korea.South Korea’s conservative President Yoon Suk Yeol has pushed to turn the page on historical tension with Japan, but he was impeached after stunning the nation with a failed attempt to impose martial law last month.

Nippon Steel and US Steel filed suit Monday over US President Joe Biden’s decision to block the Japanese giant’s proposed acquisition of its American rival, accusing his administration of “illegal interference” in the huge transaction.The companies said in a statement that they had initiated legal action in the US court of appeals in Washington challenging the review process for the acquisition. They said they had filed their lawsuit “to remedy the ongoing illegal interference with Nippon Steel’s acquisition of US Steel.”In the suit, they argued that Biden, who is leaving office on January 20, had improperly used his influence and blocked the deal “for purely political reasons” by ignoring the rule of law to gain favor with workers’ unions. Nippon Steel had touted the takeover as a lifeline for a US company that is long past its heyday, but opponents warned that the Japanese owners would slash jobs.Biden had criticized the $14.9 billion deal for months, while holding off on a move that could hurt ties with Tokyo.However, the outgoing president — who made the rebuilding of the US manufacturing base a major goal of his administration — announced Friday that he was blocking the acquisition on national security grounds. His decision drew sharp criticism from both companies and from Tokyo — as well as some American business lobbies — but was enthusiastically welcomed by the United Steelworkers union, which called it “bold action to maintain a strong domestic steel industry.”Earlier Monday, Japanese Prime Minister Shigeru Ishiba said the veteran Democrat’s decision had sparked worries over future Japanese investments in the world’s largest economy.”It is unfortunately true that there are concerns being raised within Japan’s industrial world over future Japan-US investment,” he told reporters. “It’s something we have to take seriously.””We will strongly call on the US government to take steps to dispel these concerns,” he added. “They need to be able to explain clearly why there is a national security concern, or else further discussions on the matter will not work.”Japan and the United States are each other’s top foreign investors.The decision to block the deal enjoyed rare bipartisan agreement. Republican President-elect Donald Trump and his incoming vice president had also campaigned against the sale.But the US Chamber of Commerce noted that investment from Japan, America’s “important and reliable ally,” supports nearly one million US jobs.”The decision also could have a chilling effect on international investment in America,” it warned.Keizai Doyukai, one of Japan’s three major business groups, noted that protectionist trade policies were likely to strengthen under the next Trump administration.”In areas related to economic security, we should strengthen cooperation with like-minded countries such as South Korea, Australia, the Philippines, and India, so as not to become completely dependent on the United States,” it said.tmo-kh-kaf-da/st

US and European markets mostly rose Monday following a report — strongly denied by US President-elect Donald Trump — that his incoming administration was mulling applying tariffs more selectively than he had previously suggested.While the Dow fell on Wall Street, both the S&P 500 and the Nasdaq Composite closed higher, as investors plowed money into the semiconductor sector following strong results from Taiwan-based Foxconn.The rally helped spur chip designer Nvidia to a fresh record, giving the company a market valuation of more than $3.6 trillion. And shares of the streaming company Fubo surged by more than 251 percent after Disney announced it would be merging Fubo with the Hulu+ Live TV service. Disney’s shares closed down 0.1 percent.- Less painful tariffs? -Traders were also digesting a report in the Washington Post that Trump’s aides are weighing plans to only apply tariffs to goods in certain critical sectors — a more narrow definition than the president-elect previously proposed. Wall Street initially soared after Trump’s election victory on expectations of tax cuts and deregulation, but concerns about his tariff plans soon caught up with traders, raising concerns about their potential impact on inflation, interest rates, and economic growth. Trump hit back strongly against the report in a post to his Truth Social account on Monday. The story, he said, “incorrectly states that my tariff policy will be pared back. That is wrong.” “The Washington Post knows it’s wrong. It’s just another example of Fake News,” he added. – Luxury gains -In Europe, Paris rose more than two percent thanks to gains in luxury stocks. “A Birkin bag, a bottle of Moet and Gucci shoes are hardly critical imports, which is why the luxury sector is having a strong reaction to this news,” said Kathleen Brooks, research director at the XTB trading platform.Beyond tariffs, there were also other factors driving sentiment in the markets.Briefing.com analyst Patrick O’Hare said there was “tax policy enthusiasm” as Trump pushes for the passage of legislation that would extend tax cuts from his first term in office.The US dollar was broadly weaker on hopes of a more limited US tariff policy; it also dropped 0.5 percent against its Canadian counterpart after Canada’s Prime Minister Justin Trudeau announced he would step down as the leader of his political party.Trudeau’s popularity has waned in recent months, with his government narrowly surviving a series of no-confidence votes and critics calling for his resignation.He faced further pressure from Trump, who has threatened a 25-percent tariff on Canadian goods after he takes office on January 20.In Asia, the Seoul stock market rose 1.9 percent Monday despite the ongoing political uncertainty, while Tokyo retreated, with Nippon Steel taking a hit after departing US President Joe Biden blocked its proposed $14.9 billion purchase of US Steel.- Key figures around 2200 GMT -New York – Dow: DOWN 0.1 percent at 42,706.56 points (close)New York – S&P 500: UP 0.6 percent at 5,975.38 (close)New York – Nasdaq Composite: UP 1.2 percent at 19,864.98 (close)London – FTSE 100: UP 0.3 percent at 8,249.66 (close)  Paris – CAC 40: UP 2.2 percent at 7,445.69 (close)Frankfurt – DAX: UP 1.6 percent at 20,216.19 (close)Tokyo – Nikkei 225: DOWN 1.5 percent at 39,307.05 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,688.29 (close)Shanghai – Composite: DOWN 0.1 percent at 3,206.92 (close)Euro/dollar: UP at $1.0388 from $1.0307 on FridayPound/dollar: UP at $1.2518 from $1.2423Dollar/yen: UP at 157.64 yen from 157.33 yenEuro/pound: UP at 82.98 pence from 82.95 penceWest Texas Intermediate: DOWN 0.5 percent at $73.56 per barrelBrent North Sea Crude: DOWN 0.3 percent at $76.30 per barrelburs-rl-da/aha

European and US stock markets rose following a report Monday the incoming Trump administration will apply tariffs only on certain sectors, while the dollar was mostly lower against rival currencies.While Wall Street soared after Donald Trump’s election on expectations of tax cuts and deregulation, concerns about his plans to impose hefty tariffs on imports from China and other key trade partners have moved to the forefront.However, the Washington Post reported Monday that instead of a universal tariff on everything imported into the United States, which Trump had advocated as a candidate, his aides are preparing plans to apply tariffs to goods in certain critical sectors.”Stocks have made solid gains around the world today on hopes that the incoming US administration will look to take a more targeted approach on tariffs than previously feared,” said Chris Beauchamp, Chief Market Analyst at online trading platform IG.Trump quickly disputed the Washington Post report, posting on his Truth Social platform that the story “incorrectly states that my tariff policy will be pared back”.Still, stock markets moved higher.Applying a 10 or 20 percent tariff on all goods imported into the United States, or even up to 60 percent on goods from China, threated to reignite inflation and squelch demand, causing disarray in the global economy.Kathleen Brooks, research director at XTB trading platform, noted that while it is not clear exactly which critical sectors would be subject to tariffs, “it is still no wonder that investors are taking a sigh of relief”.In Europe, Paris rose more than two percent thanks to gains in luxury stocks. “A Birkin bag, a bottle of Moet and Gucci shoes are hardly critical imports, which is why the luxury sector is having a strong reaction to this news,” said Brooks.Respite from tariffs was not alone in driving sentiment.Briefing.com analyst Patrick O’Hare said there was “tax policy enthusiasm” as Trump pushes for the passage of legislation that would extend tax cuts from his first term in office.With the US dollar broadly weaker on hopes of a more limited US tariff policy, it also dropped 0.5 percent versus its Canadian counterpart as Canada’s Prime Minister Justin Trudeau announced he will step down.Trudeau’s popularity has waned in recent months, with his government narrowly surviving a series of no-confidence votes and critics calling for his resignation.He faced further pressure from Trump, who has threatened a 25-percent tariff on Canadian goods after he takes office on January 20.- South Korea crisis -In Asia, the Seoul stock market piled on 1.9 percent Monday even as South Korea remains gripped by political uncertainty following last month’s brief martial law attempt by President Yoon Suk Yeol.Anti-graft investigators have asked police to arrest the impeached and suspended leader.Tokyo retreated, with Nippon Steel taking a hit after departing US President Joe Biden blocked its proposed $14.9 billion purchase of US Steel, citing “national security” risks.The companies later announced that they had filed lawsuits in the United States challenging Biden’s decision.- Key figures around 1630 GMT -New York – Dow: UP 0.8 percent at 43,061.05 pointsNew York – S&P 500: UP 1.3 percent at 6,018.60New York – Nasdaq Composite: UP 1.9 percent at 19,993.89London – FTSE 100: UP 0.3 percent at 8,249.66 (close)  Paris – CAC 40: UP 2.2 percent at 7,445.69 (close)Frankfurt – DAX: UP 1.6 percent at 20,216.19 (close)Tokyo – Nikkei 225: DOWN 1.5 percent at 39,307.05 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,688.29 (close)Shanghai – Composite: DOWN 0.1 percent at 3,206.92 (close)Euro/dollar: UP at $1.0401 from $1.0307 on FridayPound/dollar: UP at $1.2531 from $1.2423Dollar/yen: UP at 157.36 yen from 157.33 yenEuro/pound: UP at 83.04 pence from 82.95 penceWest Texas Intermediate: UP 0.3 percent at $74.19 per barrelBrent North Sea Crude: UP 0.3 percent at $76.74 per barrelburs-rl/cw

Japan’s prime minister Monday urged Washington to dispel concerns that Joe Biden’s decision to block Nippon Steel’s takeover of US Steel could impact future investments, with the two firms filing a lawsuit challenging the move.The US president’s announcement last week cited a strategic need to protect domestic industry, a move that drew sharp criticism from both companies and Tokyo.A US government panel had failed to reach consensus on whether the $14.9 billion acquisition threatened national security, shifting the decision to Biden in the waning days of his presidency.Prime Minister Shigeru Ishiba said the veteran Democrat’s decision had sparked worries over future Japanese investments in the world’s largest economy.”It is unfortunately true that there are concerns being raised within Japan’s industrial world over future Japan-US investment,” Ishiba told reporters.”It’s something we have to take seriously.”Japan and the United States are each other’s top foreign investors.”It would be inappropriate for the Japanese government to comment on the management of an individual company that was under review as per US domestic law… but we will strongly call on the US government to take steps to dispel these concerns,” said Ishiba.”They need to be able to explain clearly why there is a national security concern, or else further discussions on the matter will not work,” he added.- ‘Illegal interference’ -Shortly after Ishiba’s comments, Nippon Steel and US Steel said they had filed a lawsuit challenging Biden’s decision, accusing his administration of “illegal interference” in the transaction.The companies said they initiated legal action in the US court of appeals in Washington to challenge the review process for the acquisition, claiming Biden had improperly used his influence and blocked the deal “for purely political reasons”.They filed their lawsuit “to remedy the ongoing illegal interference with Nippon Steel’s acquisition of US Steel”.They said the litigation intends to show “President Biden ignored the rule of law to gain favour with (workers’ unions) and support his political agenda”.Biden’s decision followed extended wrangling over competing domestic political, economic and trade demands.The outgoing president — who made the rebuilding of the US manufacturing base a major goal of his administration — had criticised the deal for months, while holding off on a move that could hurt ties with Tokyo.”This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains,” Biden said on Friday.The United Steelworkers union welcomed the announcement, describing it as “bold action to maintain a strong domestic steel industry”.Nippon Steel had touted the takeover as a lifeline for a US company that is long past its heyday, but opponents warned that the Japanese owners would slash jobs.- ‘Chilling effect’ -The decision to block the deal enjoyed rare bipartisan agreement. Republican President-elect Donald Trump and his incoming vice president had also campaigned against the sale.But the US Chamber of Commerce noted that investment from the country’s “important and reliable ally” Japan supports nearly one million American jobs.”The decision also could have a chilling effect on international investment in America,” it warned.Even without the US Steel acquisition, Nippon Steel should still be able to meet its mid-term annual production targets, said SBI Securities analyst Ryunosuke Shibata.”Nippon Steel may have other opportunities in the future to buy a US firm” or to invest in the United States to have a production base there, Shibata told AFP.”There won’t be a significant change in Nippon Steel’s growth strategy of investing in the United States and continuing to build up production capacity in India.”Keizai Doyukai, one of Japan’s three major business groups, noted that protectionist trade policies were likely to heighten under the Trump administration.”In areas related to economic security, we should strengthen cooperation with like-minded countries such as South Korea, Australia, the Philippines, and India, so as not to become completely dependent on the United States,” it said.

European and Asian stock markets started the first full week of 2025 on a mixed note, with traders’ minds turning Monday to Donald Trump’s second US presidency.Concerns about China’s stuttering economy, the outlook for US interest rates and the wars in Ukraine and the Middle East were causing a sense of uncertainty ahead of Trump’s return to the White House on January 20.Investors are steeling themselves for another four years of US friction with China, particularly after Trump warned he would impose hefty tariffs on imports from the country and other key trade partners.The US dollar dropped half-a-percent versus its Canadian counterpart as reports said Canada’s Prime Minister Justin Trudeau may resign as soon as Monday.The Canadian dollar firmed “on the back of a broadly softer US dollar but the political shenanigans keep the risks tilted toward the upside” for the greenback, noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.Trudeau’s popularity has waned in recent months, with his government narrowly surviving a series of no-confidence votes and critics calling for his resignation.He has vowed to stay on to guide the Liberals to national elections due this year but has faced further pressure from Trump, who has threatened a 25-percent tariff on Canadian goods after he takes office on January 20.Dollar support has come in recent weeks from Trump’s pledges to cut taxes and remove regulations that could reignite inflation.The prospect of prices spiking again has caused traders to pare bets on how many rate cuts the Federal Reserve will make this year.A hawkish pivot last month took the wind out of the sails of an equities rally.US jobs data at the end of this week will provide the latest snapshot of the world’s top economy and could play a key role in officials’ decision-making.- South Korea crisis -In Asia, the Seoul stock market piled on 1.9 percent Monday even as South Korea remains gripped by political uncertainty following last month’s brief martial law attempt by President Yoon Suk Yeol.Anti-graft investigators have asked police to arrest the impeached and suspended leader.Tokyo retreated, with Nippon Steel taking a hit after departing US President Joe Biden blocked its proposed $14.9 billion purchase of US Steel, citing “national security” risks.Focus is also on Beijing as it tries to kickstart China’s growth with a series of stimulus measures aimed particularly at boosting consumption and supporting the battered property sector.However, analysts pointed out that their work could be made harder by Trump.”For 2025, China’s economy will likely be stuck between the rock of higher trade tariffs and the hard place of a domestic crisis of confidence,” analysts at Moody’s Analytics wrote.- Key figures around 1045 GMT -London – FTSE 100: DOWN 0.1 percent at 8,215.12 points Paris – CAC 40: UP 0.5 percent at 7,317.18Frankfurt – DAX: UP 0.3 percent at 19,971.48Tokyo – Nikkei 225: DOWN 1.5 percent at 39,307.05 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,688.29 (close)Shanghai – Composite: DOWN 0.1 percent at 3,206.92 (close)New York – Dow: UP 0.8 percent at 42,732.13 (close)Euro/dollar: UP at $1.0342 from $1.0307 on FridayPound/dollar: UP at $1.2475 from $1.2423Dollar/yen: UP at 157.88 yen from 157.33 yenEuro/pound: DOWN at 82.90 pence from 82.95 penceWest Texas Intermediate: DOWN 0.1 percent at $74.01 per barrelBrent North Sea Crude: DOWN 0.1 percent at $76.56 per barrel

Thailand welcomed more than 35 million international tourists in 2024, surpassing the government’s target, as the country strives to revive its sluggish economy, officials said Monday.The nation’s vital tourism sector accounts for almost 20 percent of its GDP but has struggled in the wake of the Covid-19 pandemic and changing traveller habits.More than 35 million visitors visited the kingdom in 2024, around four million shy of its pre-pandemic high in 2019, according to the Ministry of Sports and Tourism.China has reclaimed its position as the top source of visitors in Thailand — after seeing a decline post-pandemic — with more than six million visitors last year, followed by Malaysia and India.The kingdom — known for its pristine beaches and iconic temples — generated more than 1.6 trillion baht ($46 billion) from tourist spending in 2024, according to tourism minister Sorawong Thienthong.The Thai government under former prime minister Srettha Thavisin introduced a number of measures to attract foreign visitors, including a free visa programme for Chinese and Indian tourists. After exceeding its target of 35 million tourists in 2024, the government has set a target of 39 million visitors in 2025.The World Bank has estimated that the country will exceed its pre-pandemic level in 2025, but tourists are spending less than they did before.

Asian markets started the first full week of 2025 on a shaky note as traders struggled to track a healthy run-up on Wall Street, with minds turning to Donald Trump’s second presidency.Concerns about China’s stuttering economy, the outlook for US interest rates and the wars in Ukraine and the Middle East were also causing a sense of uncertainty.As Trump prepares to return to the White House on January 20, investors are steeling themselves for another four years of friction with China, particularly after he warned he would impose hefty tariffs on imports from the country and other key trade partners.Those fears were being compounded by warnings that his pledges to cut taxes and remove regulations could reignite inflation, although there is hope such moves could boost profits.The prospect of prices spiking again has caused traders to pare bets on how many rate cuts the Federal Reserve will make this year, with a hawkish pivot last month taking the wind out of the sails of an equity rally.Richmond Fed boss Tom Barkin stoked worries that borrowing costs will remain elevated on Friday when he indicated his backing for a slower pace of reductions.”I think there is more upside risk than downside risk,” he said. “So I put myself in the camp of wanting to stay restricted for longer.”US jobs data at the end of this week will provide the latest snapshot of the world’s top economy and could play a key role in officials’ decision-making.All three main indexes on Wall Street ended last week on a positive note, with the S&P 500 and Nasdaq both adding more than one percent.- Political uncertainty -But Asia’s early gains ran out of gas as the day wore on.Sydney, Singapore, Manila, Taipei and Wellington edged up, while Seoul piled on 1.9 percent even as South Korea remains gripped by political uncertainty following last month’s brief martial law attempt by President Yoon Suk Yeol.Anti-graft investigators asked police on Monday to arrest the impeached and suspended leader.Tokyo retreated more than one percent, with Nippon Steel taking a hit after US President Joe Biden blocked its proposed $14.9 billion purchase of US Steel, saying that it would “create risk for our national security and our critical supply chains”.There were also losses in Hong Kong, Shanghai, Mumbai, Bangkok and Jakarta.London opened in the red but Paris and Frankfurt rose.”We view 2025 as a year with greater uncertainty given increasing concerns over Trump’s tariffs and an escalating trade war,” said Kai Wang, Asia equity market strategist at Morningstar.Focus is also on Beijing as it tries to kickstart growth with a series of stimulus measures aimed particularly at boosting consumption and supporting the battered property sector.However, analysts pointed out that their work could be made harder by Trump.”For 2025, China’s economy will likely be stuck between the rock of higher trade tariffs and the hard place of a domestic crisis of confidence,” analysts at Moody’s Analytics wrote.”China’s Houdini act to escape without much economic injury is unfolding via stimulus announcements. Big promises of new stimulus lie ahead, with details likely to come at the Two Sessions meetings in March.”- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.5 percent at 39,307.05 (close)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,688.29 (close)Shanghai – Composite: DOWN 0.1 percent at 3,206.92 (close)London – FTSE 100: DOWN 0.2 percent at 8.210,40Euro/dollar: UP at $1.0323 from $1.0307 on FridayPound/dollar: UP at $1.2454 from $1.2425Dollar/yen: UP at 157.63 yen from 157.33 yenEuro/pound: DOWN at 82.88 pence from 82.95 penceWest Texas Intermediate: DOWN 0.2 percent at $73.81 per barrelBrent North Sea Crude: DOWN 0.2 percent at $76.35 per barrelNew York – Dow: UP 0.8 percent at 42,732.13 (close)

Asian markets started the first full week of 2025 on a positive but cautious note as traders struggled to track a healthy run-up on Wall Street, with minds turning to Donald Trump’s second presidency.Ongoing concerns about China’s stuttering economy, the outlook for US interest rates and the wars in Ukraine and the Middle East were also causing a sense of uncertainty.As Trump prepares to return to the White House on January 20, investors are steeling themselves for another four years of friction with China, particularly after he warned he would impose hefty tariffs on imports from the country and other key trade partners.Those fears were being compounded by warnings that his pledges to cut taxes and remove regulations could reignite inflation, though there is hope such moves could boost profits.The prospect of prices spiking again has caused traders to pare bets on how many rate cuts the Federal Reserve will make this year, with a hawkish pivot last month taking the wind out of the sails of an equity rally.Richmond Fed boss Tom Barkin stoked worries that borrowing costs will remain elevated on Friday when he indicated his backing for a slower pace of reductions. “I think there is more upside risk than downside risk,” he said. “So I put myself in the camp of wanting to stay restricted for longer.”US jobs data at the end of this week will provide the latest snapshot of the world’s top economy and could play a key role in officials’ decision-making.All three main indexes on Wall Street ended last week on a positive note, with the S&P 500 and Nasdaq both piling on more than one percent.Asia largely followed suit, though the gains were limited. Hong Kong, Shanghai, Sydney, Singapore, Manila, Taipei, Wellington and Jakarta all edged up, while Seoul piled on more than one percent even as South Korea remains gripped by political uncertainty following last month’s brief martial law attempt by President Yoon Suk Yeol.Tokyo retreated more than one percent, with Nippon Steel taking a hit after US President Joe Biden blocked its proposed $14.9 billion purchase of US Steel, saying it would “create risk for our national security and our critical supply chains”.”We view 2025 as a year with greater uncertainty given increasing concerns over Trump’s tariffs and an escalating trade war,” said Kai Wang, Asia equity market strategist at Morningstar.Focus is also on Beijing as it tries to kickstart growth with a series of stimulus measures aimed particularly at boosting consumption and supporting the battered property sector.However, analysts pointed out that their work could be made harder by Trump.”For 2025, China’s economy will likely be stuck between the rock of higher trade tariffs and the hard place of a domestic crisis of confidence,” analysts at Moody’s Analytics wrote.”China’s Houdini act to escape without much economic injury is unfolding via stimulus announcements. Big promises of new stimulus lie ahead, with details likely to come at the Two Sessions meetings in March.”- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 1.3 percent at 39,394.27 (break)Hong Kong – Hang Seng Index: UP 0.3 percent at 19,809.68 Shanghai – Composite: UP 0.1 percent at 3,215.50Euro/dollar: UP at $1.0308 from $1.0307 on FridayPound/dollar: UP at $1.2432 from $1.2425Dollar/yen: UP at 157.60 yen from 157.33 yenEuro/pound: DOWN at 82.90 pence from 82.95 penceWest Texas Intermediate: UP 0.3 percent at $74.20 per barrelBrent North Sea Crude: UP 0.2 percent at $76.69 per barrelNew York – Dow: UP 0.8 percent at 42,732.13 (close)London – FTSE 100: DOWN 0.4 percent at 8,223.98 (close)