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No stopping AI frenzy across Asia
Ankur Banerjee gives us a look at what the future holds for European and global markets Japan's Nikkei returned after a holiday to join the AI rally and reach record highs. South Korea, Taiwan and other equities also reached new heights. Oil prices hovered around $100 per barrel, as the markets waited for an agreement to end the Middle East conflict. The Nikkei Index 225 (the benchmark) soared by nearly 6%. This lifted broader Asian gauges up to new highs, after strong earnings from tech companies fueled the AI momentum. The Nikkei has now risen 25% this year, but is still behind the eye-watering 75% increase in Seoul's KOSPI by 2026. This was also the best performing major stock market last year. Taiwan stocks are up 45% in 2018. The S&P 500, on the other hand, is up almost 8% in 2026. Asia has been the main area of AI growth this year. Samsung Electronics has joined Taiwan's TSMC in the trillion-dollar club. SK Hynix?is not far away. The yen held steady at 156.35 U.S. dollars in Asian hours, but traders watched their screens as sudden spikes in the last few sessions fueled speculation that Japanese authorities were intervening. Sources said that Tokyo intervened on Thursday of last week. According to?money-market data, they sold around $35 billion in order to support the yen. The market has experienced three sudden spikes since then. On Wednesday, it reached a 10-week-high of 155 per U.S. Dollar. Japan's top currency diplomat told reporters on Thursday that there are no restrictions on the frequency of its currency market interventions. It is also in constant contact with U.S. authorities. Data later in the day may shed light on Tokyo's involvement. Sources say that Tehran is considering the U.S. proposal for peace in the Middle East. The plan would end the conflict, but leave unresolved U.S. key demands that Iran suspends its nuclear program and that?the Strait of Hormuz be reopened. Since the outbreak of the war at the end February, the?critical waterway is effectively at a standstill. This has sent oil prices soaring and fueled inflation fears. While the latest news about a possible deal for peace weighed on the oil price, it remains?at around $100 per barrel, which is well above the level before the war began. As?risk sentiment improved, the dollar also fell. Global bond investors are watching the local elections in Britain on Thursday, as they fear that a poor performance by the ruling Labour Party may lead to a leadership challenge unwelcome and may renew concerns over fiscal slippage. The following are key developments that may influence the markets on Thursday. Economic events: April PMI for Germany, France and UK
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Army says two drones from Russia crashed in Latvia
The Latvian Army reported on Thursday that two drones had entered NATO member Latvia from Russia and crashed. The police told the national broadcaster LSM that one of the drones had crashed into an oil-storage facility in Rezekne. This is about 40km (25miles) away from the border with Russia. The fire was out by the time firefighters arrived. Residents?along with the Russian border received drone alerts at 4:09 am local time (0109 GMT), on Thursday. They were asked to remain indoors. The municipality has announced that all schools in Rezekne will be closed on Thursday. In late March, several stray Ukrainian drones struck Latvia and its NATO neighbors Estonia and Lithuania. One of them slammed in to a chimney inside a local?station and another crashed-landed into a frozen lake and exploded. It was believed that the Ukrainian drones had been launched in order to attack military targets in Russia. Their foreign ministers said in April that the three Baltic countries have never allowed their airspace and territories to be used by drones to attack targets in Russia.
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Dalian iron ore prices rise for the fourth consecutive day due to steady demand
Dalian iron ore futures gained for the 'fourth day in a row' on Thursday. This was due to a steady demand, as hot metal production remained high, while the Singapore iron -ore contract fell on the back of lower energy costs. As of 0303 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.25% higher. It was 814 yuan (US$119.61) per metric ton. The benchmark iron ore for June on the Singapore Exchange fell by 0.12%, to $103.5 per ton. According to data compiled and a report from the Shanghai Metals Market, hot metal production is expected to peak at the end of April, boosting demand for iron ore. However, rising?prices are dampening transaction volumes. The note said that the market's momentum has been strengthened by a gradual increase in iron ore prices, coupled with a steady reduction of stocks. Singapore's iron ore price was also affected by lower energy costs, after Wednesday's?oil price slump of nearly 7%, which provided some relief to high shipping expenses. Four sources confirmed that workers on strike over a pay dispute had halted the mining of two blocks in Guinea's massive Simandou iron-ore project, operated by a consortium headed by China's Baowu Resources. According to two union representatives and a project consultant, rail and port operations are still ongoing, but blasting, loading, hauling, and dumping has stopped. Simandou is home to one of the largest untapped iron ores deposits in the world. After decades of delays, exports began in November and are expected to reach a peak annual production of 120,000,000 metric tons. Coking coal and coke also declined on the DCE, losing 2,1%?and 1,77% respectively, following broader declines in energy markets. The Shanghai Futures Exchange steel benchmarks were mixed. Hot-rolled coils and wire rod were not much changed. Rebar, however, gained 0.46%. Stainless steel fell by 1.62%. $1 = 6.8053 Yuan (Reporting and editing by Ruth Chai)
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Australia's Super Retail falls to a near three-year low due to the Mideast conflict
Super Retail Australia reported flat like for like sales in the second half of this year. It cited a drop in demand across its four brands after the 'Iran war. This sent the company's shares to a three-year-low on Thursday. The retailer reported that after the bell rang on Wednesday, like-for-like retail sales had only increased by a paltry 0.4%. Gross margins were also "modestly lower than the previous comparable period." Super Retail reported that the Middle East conflict has impacted the sales momentum of all brands, and inflation rates are also increasing. The shares of the retailer fell as much as 13.6% to A$10.08 on Thursday, reaching their lowest level since June 27th, 2023. They also had their worst intraday session since February 20th, 2025. The company has also increased its cost forecast for the year to A$66million ($47.80million) from A$60million, citing expenses relating to a newly opened distribution centre and a rollout of a payroll system. Super Retail said it had invested more than A$30m in working capital, mostly in its Supercheap Auto division, to secure inventory and reduce the impact of supply-chain disruptions due to?higher fuel prices. In the second half, Supercheap auto and sporting goods brand Rebel both posted sales growth in line with their peers of 1,6% and 1,4% respectively. BCF, an outdoor clothing retailer, saw its same-store sales decline by 3.3%. The company blamed the drop on higher fuel prices as well as supply-chain issues that discouraged outdoor activity participation. ($1 = 1.3806 Australian dollars) (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu)
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INDIA RUPEE: Rupee is likely to be buoyed up by lower oil prices; US-Iran tensions may slow momentum
The Indian rupee will continue to rise at the?Thursday open, continuing a rally that began in the previous session, thanks?to a drop in oil prices. Bankers warned that 'crude oil has recovered 'from its lows and the uncertainty 'over if current U.S.Iran optimism will result in a breakthrough, is likely to limit the rupees upward movement. After closing 0.7% higher on Wednesday at 94.61, traders expect the rupee to open between 94.54 and 94.58. Brent crude was hovering around $101 per barrel after a nearly 8% drop on Wednesday, on reports that Iran and the United States were 'close to a peace agreement. The optimism was tempered after U.S. president Donald Trump said that it was "too soon" to have face-to-face discussions with Tehran. A senior Iranian legislator said the U.S. offer was more of a wishlist than reality. Prices partially recovered from the session low of $96.75. ANZ Bank stated in a report that "the degree of optimism fluctuated throughout the day as a response to different statements made by both sides." The intraday volatility is likely to continue high. According to a spokesperson for the Iranian Foreign Ministry quoted by ISNA, Tehran will convey its response. Trump stated that he believes Iran wants an agreement. The U.S. equity market rallied Wednesday while U.S. Treasury rates and the dollar fell. Currency trader from a private bank stated that a "large part" (or the optimism) of a possible U.S. Iran deal?was already priced in late yesterday. He added that from here on, it is all about incremental headlines. He said that oil near $100 was "still too expensive" and that if the rupee is to experience sustained relief, this would have to be corrected. Oil-importing India would be relieved by a drop in oil prices. The rupee, too, would benefit. In the last two months, economists have been forced to reduce their rupee forecasts and revise up inflation expectations, as well as downgrade their growth forecasts. (Reporting and editing by Nimesh Aich; Reporting by Nimesh vora)
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Investors focus on US-Iran peace prospects as the dollar weakens. Gold gains
Gold rose for the third time in a row on Thursday. The dollar was softer as optimism grew about a possible peace agreement between Iran and the United States. As of 0231 GMT spot gold was up by 0.3% to $4,701,19 per ounce. It had risen about 3% Wednesday, reaching its highest level since the 27th April. U.S. gold ?futures for June delivery rose 0.4% to $4,710. Iran announced on Wednesday that it was examining a 'U.S. Sources said that the peace proposal would end the war, but leave unresolved U.S. demands that Iran suspend its nuke programme and reopen Strait of Hormuz. "I believe most markets have overreacted, as the deal is still in its early stages and could fall apart at any time. We saw enough dollar weakness, however, to drive gold prices higher. "Lower Treasury yields have also helped gold," said Edward Meir at Marex. He said that gold could be rangebound between $4,600 to $5,100 per ounce in the near future. Dollar fell by 0.1%, lowering the price of bullion for holders of currencies other than dollars. The benchmark 10-year U.S. Treasury rate has fallen?0.6% this week. This lowers the opportunity cost for holding gold. Brent crude oil has dropped about 6% this week as optimism grows about the possible end of the Middle East war. Since the beginning of the war in late February, gold prices have dropped by more than 10%. Increased crude oil prices may increase the risk of interest rate increases. Gold is often viewed as an inflation hedge. However, high interest rates can weigh down on this non-yielding investment. Investors are now awaiting the monthly U.S. The employment report will be released on Friday. This will allow us to determine if the U.S. is resilient enough to maintain the Federal Reserve’s monetary policies. Silver spot rose 0.5%, to $77.68 an ounce. Platinum was unchanged at $2,060.18, while palladium fell 0.1%, at $1,536.54. (Reporting by Noel John in Bengaluru; Editing by Subhranshu Sahu)
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Bloomberg News reports that China has asked banks to stop new loans to US sanctioned refineries.
Bloomberg News reported Wednesday that China's financial regulator had advised the country's biggest lenders to temporarily suspend new loan to five refineries sanctioned by the U.S. for their ties with Iranian 'oil'. Could not verify immediately the report. In a verbal directive, the National Financial Regulatory Administration asked banks not to cancel existing credit, but to refrain from extending any new loans in yuan. According to the sources quoted in the report, the banks were instructed to review their business dealings including with China's largest private refining company Hengli Petrochemical Refinery (Dalian). Hengli and the NFRA did not immediately respond to a request for comment. The official directive was given before May 1. This is in contrast to a?notice from China's Ministry of Commerce, issued on May 2 in which the government requested firms to ignore U.S. Sanctions. China has now resorted for the first time to the blocking measures introduced in 2021 to protect Chinese companies from foreign interference that is deemed 'unwarranted. The U.S. Treasury announced sanctions against Hengli Petrochemical in April. Washington accused the company of purchasing Iranian oil worth billions of dollars, a move that accelerated its long-standing effort to curb Tehran's oil revenue. U.S. Treasury secretary Scott Bessent stated last month that the U.S. warned the two Chinese banks that they would be subjected to secondary sanctions if it was found out that the Chinese banks were processing transactions with Iran. The sanctions created a number of hurdles for refiners. These included difficulties in receiving crude and the need to sell refined products under different names. Reporting by Fabiola Arambo in Mexico City; Selena Li in Hong Kong; Liu Siyi and Li Qiaoyi, in Singapore; Jacqueline Wong, Kim Coghill.
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ASEAN leaders begin summit with energy crisis at the forefront
Leaders of the ASEAN bloc will be discussing conflicts beyond Southeast Asia at the meeting in the Philippines. The Middle East crisis is a major challenge for the economies of countries that depend on fuel imports. Leaders, foreign and economic ministers from the 11 member grouping will attend the?meetings in Cebu on Friday and Thursday. Energy and food security are top priorities for this region of 700 million people. Many Asian countries are scrambling to find alternative oil supplies due to the Middle East conflict. ASEAN ministers have convened special meetings in advance of the summit and the Philippines is hopeful that an oil-sharing agreement will be ratified. Ma, Philippine Secretary of Foreign Affairs, said: "The current crisis in the Middle East, and its wide-ranging repercussions including disruptions in energy flows, trade routes and food supply chains, as well as the welfare and wellbeing of our citizens, reminds us that?developments outside our region can have an immediate and profound effect on ASEAN." Theresa Lazaro opened a meeting with her counterparts in the Philippines on Thursday. Lazaro stated that "ASEAN must strengthen our crisis coordination and institutional preparedness in times of crises". Action BEYOND RHETORIC Analysts and diplomats say that the issue will put the Philippines in a difficult position as it forces them to coordinate regional responses while also preventing ASEAN conflicts such as the civil war in Myanmar and the deadly border dispute between Thailand & Cambodia last year from falling off the agenda. Don McLain Gill is a geopolitical expert and lecturer at Manila’s De La Salle University. He said that planning to cushion the fallout of economic issues could ultimately outweigh immediate regional concerns. He added that while the South China Sea and Myanmar's crisis would be discussed, it was unlikely to result in any significant progress. ASEAN has struggled for years to coordinate its response to crises. Meetings usually result in an agreement to cooperate, but without a clear plan or commitment. Laura del Rosario said that the size of the energy shock is an issue that no ASEAN nation can escape. It will likely go beyond mere rhetoric. Analysts say that the conflict has also heightened rivalry between China and the United States in Southeast Asia. Washington is preoccupied with wars elsewhere, while Beijing positions itself as a more reliable partner. Collin Koh of Singapore's S. Rajaratnam School of International Studies said that the U.S. would be viewed as a power destabilizing, whereas China?would be viewed as one stabilising. He said that as a major supplier of raw materials and energy inputs, China is "holding some of the most significant cards at this time". MYANMAR SEEKS RESEARCH Also to be addressed will be the?crisis in Myanmar. This issue has divided ASEAN and its new, nominally civil government is keen to reengage with this bloc. The military-backed party that had been in power since the coup of 2021 won the?election. ASEAN has yet to recognise the election, or indicate when the Myanmar leadership, led by former junta leader Min Aung Hlaing, now president, will be able to'return' to their summits, after spending five years in the background. After recent steps toward reconciliation, including two amnesties, a reduced sentence, and the transfer of Aung San Suu Kyi to house arrest, it may be necessary for the military-backed government to convince ASEAN that they are sincere in their desire to halt fighting and seek dialogue with rebels. ASEAN leaders are likely to renew their?calls for the completion of a long-running code of conduct?between ASEAN & Beijing for the South China Sea. The 2026 'target date' is a challenge due to competing interests and lingering fears about vital economic ties between China and ASEAN. Beijing, which claims sovereignty in almost all of the South China Sea, including portions of the exclusive economic zone of several ASEAN countries, was not invited to the meeting. However, it is an important external partner of the bloc.
Sources say that ADNOC, the UAE's LPG supplier, will supply US LPG in India after China and US tariffs.
Industry sources have confirmed that Abu Dhabi National Oil Company will begin replacing some of its liquefied gas supplies to India from June with cheaper U.S. cargoes, as U.S. China tariffs are reshaping global trade flows.
ADNOC will be able to ship more LPG from its own production to China. Buyers in China are paying higher prices to replace U.S. supplies after Beijing raised tariffs on U.S. products. This move also reduces LPG costs for India. 2 importer.
India imports more than 80% its LPG from the Middle East including Saudi Arabia and the United Arab Emirates. It also sources LPG through annual contracts with Qatar and Kuwait.
In the first week of this month, Indian refiners asked Middle East suppliers for a very rare swap: some of their long-term supply was to be replaced with U.S. LPG. Sources said that Indian refiners requested U.S. LPG be delivered at a discount to the Middle Eastern benchmark Saudi Contract Price.
ADNOC has, according to sources, agreed to supply U.S. LPG to refiners in India under annual contracts between June and July.
They said that the U.S.-China conflict has widened price gaps between Middle Eastern LPG and U.S. LPG. One of the sources stated: "It's difficult to replace all volumes with U.S. LPG." LPG."
June Goh is an analyst with Sparta Commodities. She said that India's LPG consumption is mostly for domestic purposes and therefore requires a higher percentage butane.
She added, "India can therefore benefit from the diversion but not propane cargoes of U.S. LPG."
ADNOC and Indian refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. did not respond to requests for comments.
According to data from the government, India imported approximately 60% of its total LPG consumption in 2023/24. This equates to 29,66 million metric tonnes. Yousef SABA in Dubai contributed additional reporting; Florence Tan, Jan Harvey and Jan Harvey edited the article.
(source: Reuters)