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Asian stocks rise as US markets rally on tariff pause

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An employee of a foreign exchange dealing company sits under an electronic board showing the stock index of Japan’s Nikkei 225, in Tokyo Thursday, April 10, 2025. (AP)

 TOKYO, April 10, (AP): World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed U.S. President Donald Trump’s decision to put his sharp tariff hikes on hold for 90 days, though he excluded China from the reprieve.

In early trading, Germany’s DAX initially gained more than 8%. It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23. Britain’s FTSE 100 surged 5.4% to 8,090.02.

However, U.S. futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.

The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower. Analysts had expected the global comeback given that U.S. stocks had one of their best days in history on Wednesday as investors registered their relief over Trump’s decision.

On Thursday, Japan’s benchmark Nikkei 225 jumped 9.1% to finish at 34,609.00, zooming upward as soon as trading began. Australia’s S&P/ASX 200 soared 4.5% to 7,709.60.

South Korea’s Kospi gained 6.6% to 2,445.06. Hong Kong’s Hang Seng added 2.4% to 20,750.65. The Shanghai Composite rose 1.2% to 3,223.64. Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.

“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.

On Wall Street, the S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the words investors worldwide had been waiting and wishing for.

“I have authorized a 90 day PAUSE,” Trump said, saying more than 75 countries are negotiating on trade and not retaliating against his latest increases in tariffs. Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage.

U.S. stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day.” But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%.

The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940. The relief came after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.

That surprised many professional investors who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling. Wednesday’s rally pulled the S&P 500 index away from the edge of what’s called a “bear market.”

That’s what professionals call it when a run-of-the-mill drop of 10% for U.S. stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down 11.2% from its record. Wall Street also got a boost from a relatively smooth auction of U.S. Treasurys on Wednesday.

Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump said he had been watching the bond market “getting a little queasy.” Higher yields on Treasurys put pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses.

U.S. Treasury yields historically have dropped – not risen – during scary times for the market because the bonds are usually seen as some of the safest possible investments.

This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February. After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump’s pause and the Treasury’s auction.

That’s still up from 4.26% late Tuesday and from just 4.01% at the end of last week. In energy trading, benchmark U.S. crude fell 81 cents to $61.54 a barrel. Brent crude, the international standard, declined 93 cents to $64.55 a barrel. In currency trading, the U.S. dollar fell to 146.77 Japanese yen from 147.38 yen. The euro cost $1.0986, up from $1.0954.   

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Jazeera Airways marks historic milestone with first flights to Syria

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KUWAIT CITY, July 2: Jazeera Airways, Kuwait’s leading low-cost carrier, today marked a historic milestone with the resumption of its direct flights between Kuwait and Damascus, restoring air connectivity between the two nations for the first time in over 13 years. The first two flights departed from Jazeera Terminal 5 this morning, with a full passenger load, some of whom were back to their home country after several years. For many of the over 200,000 Syrians living in Kuwait – the second-largest Arab community in the country – this moment represents more than just a flight; it is a long-overdue reconnection with their roots, loved ones, and memories. Jazeera Airways had previously operated services to Damascus, Aleppo, and Deir EzZoor.

The return to Damascus marks the beginning of renewed engagement with Syria, as the airline responds to strong and growing demand from the community. The route launches with one daily flight, with plans to increase to twice-daily frequencies by the end of the summer travel season. The airline is also exploring future expansions to other Syrian cities in line with market recovery.

Barathan Pasupathi, Chief Executive Officer of Jazeera Airways, stated:“This is more than just the reopening of a route – it is the restoration of a vital bridge for people. We are proud to re-establish this important connection for the Syrian community in Kuwait and beyond. Many of the passengers on our inaugural flight were returning to Syria for the first time in years, and the emotions witnessed at the departure gate were a powerful reminder of how meaningful this service is. We extend our sincere thanks to the authorities in both Kuwait and Syria for their invaluable support in making this relaunch possible.” With the launch of flights to Damascus, Jazeera Airways continues to play a vital role in enhancing regional connectivity and supporting the aspirations of communities across its growing network. To book flights, travellers can visit www.jazeeraairways.com or Jazeera’s mobile application.

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Kuwait Hosts GCC Energy Workshop

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Participants pose for a group photo during the Gulf Cooperation Council workshop.

KUWAIT CITY, July 2: A high-level Gulf Cooperation Council (GCC) workshop on protecting the infrastructure of the oil and gas sector and crisis management kicked off Tuesday, at the Ahmad Al-Jaber Oil and Gas Exhibition in Ahmadi, Kuwait. The three-day event is jointly organized by the United Nations Office of Counterterrorism, Kuwait Oil Company (KOC), and the GCC Emergency Management Center. During the workshop, GCC Secretary General Jassem Al-Budaiwi said in a recorded speech that GCC energy supplies represent a fundamental pillar of global supply, concurrently noting that the Gulf states are working to implement ambitious development plans, which in turn would lead to an increase in local energy demand. The GCC chief said that the developing world is witnessing rapid progress and a growing demand for energy, noting that the Asia-Pacific region is expected to account for 50 percent of the global GDP by 2040, making it one of the fastest-growing regions in the world. GCC faces three main challenges; adapting to the global energy transition, meeting increasing domestic demand, and ensuring the security and stability of the global energy market, he pointed out.

The security and safety of energy assets in the Gulf region are fundamental to the global market, as ongoing developments and conflicts in the region indicated that any future events in the Middle East could directly impact three out of the world’s seven strategic maritime chokepoints: the Strait of Hormuz, the Bab al-Mandab Strait, and the Suez Canal, Al-Budaiwi stressed. The current conflicts not only threaten global supply chains, Al-Budaiwi emphasized, but also affect national and cross-border development projects such as connectivity initiatives between the European Union and the Middle East, which rely on safe passage through the Levant and the Mediterranean Sea. In a similar recorded statement, United Nations Undersecretary General for Counter-Terrorism Vladimir Voronkov emphasized that the meeting takes place amid a period of escalating global security threats. He highlighted that UN General Assembly Resolution 77/298 unequivocally condemns terrorist attacks targeting energy infrastructure and underscores the need for strengthened cooperation among governments, international organizations, and the private sector.

Voronkov further noted that the Security Council has introduced a technical guide for the protection of critical energy infrastructure from terrorist threats, developed with the support of the Russia and Turkmenistan. He underscored that the guide is the product of in-depth research, broad international consultations, and the collective expertise of the United Nations Global Counter-Terrorism Coordination Compact, in collaboration with the Working Group on Emerging Threats and Infrastructure Protection.

In her remarks at the workshop, UN Resident Coordinator in Kuwait Ghada Al-Tahir emphasized that this meeting offers a key opportunity to promote best practices, share expertise, and highlight the Gulf countries’ progress in building comprehensive security frameworks regionally and nationally. Al-Tahir highlighted that, for decades, the Gulf states have served as a cornerstone of global energy security and sustainable development, being home to vast reserves of oil and natural gas and playing a vital role in ensuring stable energy supplies worldwide. She reaffirmed the UN’s role, especially the Kuwait office, in supporting shared security goals, expressing confidence that the meeting would yield practical, impactful results.

Dr. Rashid Al-Marri, Head of the GCC Emergency Management Center, emphasized that the meeting offers a vital platform to boost cooperation to protect oil and gas infrastructure; key pillars of Gulf economies and global energy stability. He highlighted the need for greater readiness amid growing threats, including terrorism, cyberattacks, and geopolitical tensions. He noted the center’s role in coordinating crisis response among member states, developing a regional emergency plan covering 13 types of risks, and working closely with the UN Office of Counterterrorism on training and capacity-building. On his part, KOC’s Assistant CEO, Musaed Al-Rasheed, stressed the importance of strengthening regional and international partnerships to secure maritime routes and energy supplies, especially as the industry faces complex geopolitical, industrial, and natural threats.(KUNA)

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Mexican banks face cascading consequences following US sanctions

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Mexican banks face cascading consequences following US sanctions

The US Treasury Department building is seen on March 13, 2025, in Washington. (AP)

MEXICO CITY, July 2, (AP): Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels. The US Treasury Department announced that it was blocking transactions between US banks and Mexican branches of CIBanco and Intercam Banco, as well as the brokering firm Vector Casa de Bolsa.

All three have fiercely rejected the claims. Mexico’s President Claudia Sheinbaum accused US officials of providing no evidence to back their allegations, though the sanctions announcement made specific accusations on how money was transferred through the companies. It detailed how “mules” moved money through accounts in the US, as well as transactions carried out with Chinese companies that US officials said provided materials to produce fentanyl.

Mexico’s banking authority has announced that it is temporarily taking over management of CIBanco and Intercam Banco to protect creditors. Sheinbaum said Tuesday that the Mexican government is doing everything within its power to ensure that creditors aren’t affected, and said they were well “within their right” to pull their money from the banks.

The US Treasury Department said that the sanctions would go into effect 21 days after the announcement. Fitch Ratings has downgraded the three institutions and other affiliates, citing “anti-money laundering concerns” and saying the drop “reflects the imminent negative impact” that the sanctions could have.

“The new ratings reflect the significantly more vulnerable credit profile of these entities in response to the aforementioned warnings, given the potential impact on their ability to meet their financial obligations,” the credit rating agency wrote in a statement. On Monday, CIBanco announced that Visa Inc. had announced to them with little warning that it had “unilaterally decided to disconnect its platform for all international transactions” through CIBanco.

The bank accused Visa of not complying with the 21-day grace period laid out by the sanctions. “We would like to reiterate that your funds are safe and can be reimbursed through our branch network,” the bank wrote. “We reiterate to our customers that this was a decision beyond CIBanco’s control.”  

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