04/02/2026

BIZ & FINANCE WEDNESDAY | FEB 4, 2026

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Equities, precious metals rebound after Asia-wide rout

HONG KONG: Stocks rallied and precious metals rebounded as some stability returned to markets yesterday after US-Iran diplomacy, a Fed chief nominee, and a partial shutdown in Washington brought volatility to trading floors. Hopes for the American economy, boosted by forecast-beating manufacturing data, provided investors a much-needed catalyst for a rally on Wall Street. Healthy gains chalked up through January appeared to be in danger at the start of the week as the dollar soared on news that Donald Trump had tapped Kevin Warsh – considered the most hawkish of his candidates – to head the Federal Reserve. Analysts said the choice of Warsh, a former Fed governor and Morgan Stanley investment banker, raised the prospect that central bank policy could be more supportive of the greenback. The US currency had been taking a battering from its peers last week on concerns that the American president was happy to see it weaken, which would support exporters. Trump’s choice also eased concerns about the Fed’s independence. The dollar’s sharp recovery sent precious metals plunging at an eye-watering pace, with gold hitting a

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However, they remain on edge about the vast sums pumped into the AI arena as questions swirl about when they will see profits. Seoul’s Kospi stock index was the best performer, piling on 6.7% and wiping out Monday’s losses. The tech-rich market has climbed around 25% already this year. Yesterday’s gains were led by titan Samsung’s 11% surge and chip maker SK hynix’s 9.3% advance. Monday’s “decline wasn’t about the fundamentals of the AI and semiconductor sectors. It happened because liquidity sensitive assets such as gold and silver plunged sharply”, wrote Chung Hae-chang, analyst at Daishin Securities. Tokyo, which is also home to big-name tech firms, also enjoyed a bounce, adding nearly 4%, while Hong Kong, Shanghai, Sydney, Singapore, Taipei, Bangkok,

low of US$4,402 and silver US$71 – having enjoyed equally blistering gains in recent weeks to record highs above US$5,595 and US$121. The rush out of the safe-haven metals was also driven by easing US-Iran tensions after Trump voiced optimism over a deal with Tehran, having warned of possible strikes on the Middle Eastern country. That, combined with the stronger dollar, also sent oil prices plunging at breakneck speed. However, some calm returned to markets yesterday following a rally in New York, which came thanks to figures showing US manufacturing activity grew in January at its fastest pace since 2022. It also marked the first expansion in 12 months. A return into all things AI provided a huge boost after trader concerns about a bubble in the tech sector saw them offload big-name firms.

Oil prices edged down but tempered the sharp losses suffered on Monday. Traders are keeping tabs on Washington after Trump urged the House of Representatives to swiftly adopt a spending bill and end the three-day government shutdown. “I hope all Republicans and Democrats will join me in supporting this Bill, and send it to my desk WITHOUT DELAY,” Trump said in a post on Truth Social. The shutdown followed a breakdown in negotiations because of Democratic anger over the killing of two protesters in Minneapolis by federal immigration agents, which derailed talks over new money for the Department of Homeland Security. Mike Johnson, speaker of the Republican-controlled House, has expressed optimism that an agreement is imminent. – AFP

advanced. Mumbai’s Nifty index soared almost 5% as investors welcomed Trump’s announcement of a US-India trade deal. Jakarta rose more than 1%, having been battered since Thursday, when index compiler MSCI raised concerns about ownership issues with Indonesian regulators and said it would hold off adding the nation’s stocks to its indexes or increasing their weighting. London extended gains at the open, having ended at a record Monday, while Paris and Frankfurt also rose. “It’s been a more orderly and calmer affair across markets, with growing signs that traders are ready to re-engage with pro-risk positions and sell equity index volatility,” said Pepperstone’s Chris Weston.

Qantas to exit Jetstar Japan to focus on domestic operations TOKYO: Australia’s Qantas Airways will sell its stake in low-cost carrier Jetstar Japan as the flagship airline moves away from its budget international businesses to focus on core domestic operations. The decision to sell its 33.32% stake in Jetstar Japan comes after the closure of its Singapore-based Jetstar Asia in July as Qantas grappled with intense regional competition and high fuel and supplier costs, resulting in underwhelming performance. The move will also enable Qantas to focus resources on its core operations in Australia, Qantas and Jetstar Airways, even as it undertakes its largest fleet renewal programme ever while grappling with slower-than-expected growth. In November, it forecast domestic unit revenue growth at the lower end of its 3%-5% earlier projection for the six months to December 2025, with capacity constrained by delays in returning its A380s to service. Qantas has yet to finalise the The new shareholder group, entirely made up of Japanese investors, intends to overhaul and rebrand Jetstar Japan and expand its international routes, the firms said. “By moving to this new structure, we will respond flexibly to market changes and maximise synergies with the JAL Group to achieve sustainable growth for JJP (Jetstar Japan) as a key LCC (low-cost carrier) at the expanding Narita Airport,” Japan Airlines Group CEO Mitsuko Tottori said. – Reuters China to ban hidden car door handles terms of the deal. Japan Airlines and Tokyo Century Corp will retain their 50% and 16.7% stakes, respectively, while the Development Bank of Japan intends to join as a shareholder, the firms said in a joint statement yesterday. Jetstar Japan was established more than a decade ago by Qantas, Japan Airlines, and Mitsubishi Corp. It began operating as a low-cost carrier in late 2012 out of Narita airport near Tokyo.

US to create US$12b critical minerals stockpile WASHINGTON: The United States is expected to launch a critical minerals stockpile with US$12 billion (RM47 billion) in initial funding, a White House official confirmed on Monday, as Washington seeks to lower reliance on China for rare earths and other resources. crucial in the production of everything from smartphones to fighter jets and electric cars, have become a strategic bargaining chip since major producer China introduced restrictions on exports last year. than a dozen companies including automakers General Motors and Stellantis, aviation behemoth Boeing and tech giant Alphabet’s Google, are taking part in the initiative dubbed “Project Vault”. Trump listens to Secretary of the Interior Doug Burgum during the announcement of the creation of a critical mineral reserve in the Oval Office at the White House. – REUTERSPIC

BEIJING: China will ban hidden door handles on cars from next year over safety concerns, phasing out the minimalist design popularised by Tesla. The new rules could prompt carmakers globally to rethink vehicle door designs as China increasingly positions itself as a standards-setter in the rapidly expanding international EV market, according to analysts. The rules, announced by the Ministry of Industry and Information Technology on Monday, will take effect from Jan 1, 2027 and require door handles to have both interior and exterior mechanical releases. Chinese car models already approved for launch will have an additional two years to achieve compliance, the ministry said. The new regulations will apply to all vehicles but will mostly impact

EVs, which are commonly designed with hidden handles, and will “improve the level of automotive safety design”, the ministry added. Safety concerns have risen in China recently over sleek, aerodynamic car doors that reduce drag but are prone to losing operability in the event of a crash. One high-profile incident occurred in October, when rescuers were shown failing to open the doors of a burning Xiaomi EV in the southwestern city of Chengdu. The driver, reported to be under the influence of alcohol, died in the crash. Electronic or “flush” door handles were introduced with Tesla’s 2012 launch of the Model S, later becoming popular with China EV brands prioritising high-tech features. – AFP

China’s export restrictions have raised alarm bells in the United States as the world’s two biggest economies again crossed swords with escalating tariffs after Trump returned to the presidency last year. Washington and its allies are now racing to develop alternative mining and processing supply chains. But experts warn that this process will likely take years to complete. The EXIM Bank is expected to vote this week to authorise the 15-year loan, Bloomberg reported, noting that this would be a record-setting deal. – AFP

China’s dominance in the rare earths industry, from natural reserves and mining through processing and innovation, is the result of a decades-long drive. This has now provided Beijing with important leverage in trade talks with Donald Trump’s administration. The stockpile is aimed at blunting this effect over time. It is expected to cover both rare earths and critical minerals, alongside other important elements that might see price volatility, Bloomberg reported. The report added that more

The project, which was first reported on by Bloomberg, is anticipated to bring together some US$1.7 billion in private capital and a US$10 billion loan from the Export-Import Bank of the United States (EXIM). This would go towards securing and storing the key minerals for businesses like automakers and tech companies – forming a stockpile for the US private sector, the White House official confirmed on condition of anonymity. Rare-earth metals, which are