Reuters Evening News - March 24 News Summary (International Edition)

The following is a summary of news from the Asian market session (7:00 AM - 5:00 PM) organized by Reuters Chinese News:

(Significant data or news)

– The United States and Russia begin talks in Saudi Arabia seeking a ceasefire in the Black Sea

U.S. and Russian officials began talks in Saudi Arabia on Monday aimed at making progress toward a comprehensive ceasefire in Ukraine, with Washington hoping to first achieve a ceasefire agreement in the Black Sea before reaching a broader accord. The White House stated that the purpose of the talks is to establish a maritime ceasefire in the Black Sea to allow for the free passage of shipping.

– ECB Executive Board Member Chiabolone believes the case for another rate cut is strengthening

European Central Bank Executive Board Member Chiabolone stated that the case for another rate cut by the ECB is strengthening. Chiabolone believes that since the rate cut in March, economic conditions have changed, and the pace of inflation decline may be faster than expected. "Some key issues reinforcing the case for continued rate cuts have emerged," he said in an interview with the Spanish newspaper Expansion. "We may achieve our inflation target earlier than the latest forecasts indicate."

– Germany's private sector business activity growth in March reached its fastest pace in ten months, with manufacturing production also achieving its first growth in nearly two years. The S&P Global HCOB Germany Composite PMI preliminary value rose from 50.4 in February to 50.9 in March, the highest since May of last year.

– France's private sector activity contracted for the seventh consecutive month in March; Germany's business activity recorded its fastest growth in ten months

Surveys show that France's private sector activity contracted for the seventh consecutive month in March, with business confidence falling to its lowest level since April 2020. The S&P Global HCOB France Composite Purchasing Managers' Index (PMI) preliminary value rose from 45.1 in February to 47.0, but showed contraction for the seventh consecutive month.

– Bank of Japan Governor Ueda Kazuo stated that if the basic inflation target is likely to be achieved, the central bank will continue to raise interest rates, even if its holdings of government bonds may incur losses. "Our policy goal is to achieve price stability, and the implementation of the policy will not be affected by the Bank of Japan's financial condition," he added.

Bank of Japan Deputy Governor Uchida Shinichi stated that if the central bank's expectations for the economy and prices can be realized, the Bank of Japan will continue to raise interest rates.

– Dragged down by declines in production and new orders, Japan's au Jibun Bank Manufacturing PMI preliminary value fell from 49.0 in February to 48.3 in March, the lowest level in a year, and has remained below the boom-bust line of 50.0 for nine consecutive months, which is a worrying sign for the economy. The service sector, once a highlight of the Japanese economy, also lost momentum, with the service sector PMI preliminary value falling from 53.7 in February to 49.5 in March, marking the first contraction in five months. The composite PMI preliminary value fell from 52.0 in February to 48.5 in March, also marking the first contraction in five months.

– The Wall Street Journal reported that the White House is narrowing the scope of tariff measures set to take effect on April 2, potentially omitting a range of tariffs targeting specific industries, but imposing reciprocal tariffs on certain countries that account for a significant portion of U.S. foreign trade.

– The U.S. Department of Justice requests to replace the defendants in the Capitol riot case with the U.S. government to protect TrumpThe U.S. Department of Justice has taken action to protect President Trump in a civil lawsuit filed by police and Democratic lawmakers. In documents submitted to the court on Thursday evening, Justice Department lawyers requested U.S. District Court Judge Meta to remove Trump from the position of defendant in the lawsuit, replacing him with the U.S. government as a defendant in part of the claims, arguing that he was "acting within the scope of his office or employment" before and during the riot.

– Musk held an unprecedented high-level meeting at the Pentagon on Friday and called for the prosecution of any Department of Defense officials who leaked "malicious false information" about his visit to the New York Times. The Times reported on Thursday, citing U.S. officials, that the Pentagon would brief Musk on the U.S.'s top-secret plans for combat against China, which was denied by Musk, Trump, and others. Musk called the report "pure propaganda" and urged legal action against the leakers.

– Exclusive: European officials discuss whether they can continue to rely on the Federal Reserve under Trump to provide dollars.

Six informed sources said that some European Central Bank and regulatory officials are questioning whether they can still rely on the Fed to provide dollar funding under market pressure, as the foundation for maintaining financial stability is in doubt. Sources told Reuters that European officials believe the Fed is unlikely to fail to fulfill its funding support commitments, and the Fed has not given any indications otherwise. However, European officials have had informal discussions about this possibility, as some policies of the Trump administration have shaken their trust in the U.S.

– The Australian government will announce its annual budget on Tuesday, expected to end a rare two-year surplus and return to deficit, as Prime Minister Albanese provides financial assistance to households to increase his chances of re-election, while global risks cast a shadow over the economic outlook. However, analysts expect the deficit will not be as large as the AUD 26.9 billion first projected by the government in its mid-year economic forecast in December. ANZ expects a deficit of AUD 20 billion, AMP expects AUD 17 billion, while the Commonwealth Bank of Australia (CBA) expects AUD 22.5 billion.

– UK Chancellor of the Exchequer Reeves stated on Sunday that despite global turmoil, the UK will remain committed to fiscal discipline. Her upcoming budget report may include further spending cuts and propose the reduction of thousands of public sector jobs.

– A fire broke out at the substation powering London Heathrow Airport on Friday, forcing the busiest airport in Europe to shut down. On Saturday, the global aviation industry had to scramble to rearrange routes for passengers and adjust disrupted flight schedules. The aviation industry may face losses of up to tens of millions of pounds, and there will likely be debates over who should bear the losses. Police stated that after a preliminary assessment, they believe there is nothing suspicious about the substation incident, but investigations are ongoing.

– The White House stated on Friday that after senior officials from the UAE met with President Trump this week, the UAE committed to implementing an investment framework that will invest $1.4 trillion in the U.S. over the next decade. The White House said in a statement that the framework will "significantly increase the UAE's existing investments in the U.S. economy," including in artificial intelligence infrastructure, semiconductors, energy, and manufacturing.

– The Constitutional Court of South Korea ruled on Monday to restore Prime Minister Han Duck-soo's powers, marking the latest twist in South Korea's recent political turmoil following Han's impeachment as acting president more than two months agoHan Dezhu stated that after resuming his position in the Constitutional Court, he will do his utmost to safeguard national interests in the global trade war.

– According to the U.S. Federal Register released on Friday, the Trump administration will revoke the temporary legal status of 530,000 Cubans, Haitians, Nicaraguans, and Venezuelans in the United States, marking the latest move in Trump's crackdown on immigration policies. This measure will take effect on April 24 and will terminate the two-year "parole" granted to immigrants by former President Biden, which allowed them to enter the U.S. with a sponsor and obtain two years of legal residency and work permits.

– A Turkish court on Sunday detained Istanbul Mayor Ekrem İmamoğlu pending trial on corruption charges, triggering the largest protests in Turkey in over a decade. İmamoğlu is a major political opponent of President Erdoğan.

– Apple announced plans to invest 720 million yuan to launch a new phase of the China Clean Energy Fund.

Apple Inc. announced a commitment to invest 720 million yuan to initiate the second phase of the China Clean Energy Fund, which aims to add approximately 550,000 megawatt-hours of wind and solar power generation capacity to China's power grid each year. "This number will grow as more investors join." The company's CEO Tim Cook is currently in China attending the China Development Forum.

– Masahiro Imai, president of the Japan Iron and Steel Federation and Nippon Steel Corporation, stated that Nippon Steel continues to negotiate with the U.S. government regarding the acquisition of U.S. Steel. With the U.S. imposing tariffs on steel and automobiles, Imai expressed concerns that more overseas steel may flow into Japan, which has not taken trade protection measures, and hopes the Japanese government will take concrete trade actions to reflect industry concerns.

– Following new sanctions imposed by the U.S. on refineries and tankers, which have raised transportation costs, Iran's oil exports to China are expected to decline in the short term. However, traders indicate that they expect buyers to find workarounds to maintain at least a certain level of oil supply.

– Elvira Nabiullina, president of the Central Bank of Russia, stated that there is no reliable data indicating the level of foreign interest in Russian assets. However, she acknowledged that high interest rates are attractive to non-Russian residents. The central bank maintained its key interest rate at 21% on Friday and stated that despite a slight decline in inflationary pressures, they remain high, indicating the possibility of further rate hikes.

– The Financial Times reported on Sunday that Malaysia plans to strengthen regulations on semiconductors due to U.S. requests to prevent the flow of chips critical to AI development into China. "The U.S. has asked us to ensure monitoring of every batch of Nvidia chips shipped to Malaysia," said Malaysia's Trade Minister Zafrul Aziz to the FT.

– According to Bloomberg News citing informed sources, South Korean chip startup FuriosaAI has rejected an $800 million acquisition offer from Meta Platforms, opting to develop as an independent company.

(Market Summary)

– Japanese Stock Market: Nikkei Index Falls for the Third Consecutive Day as U.S. Tariffs Loom, Sparking Caution

The Nikkei Index in the Japanese stock market fell for the third consecutive day on Monday, as the deadline for additional U.S. tariffs approaches, creating uncertainty that dampened investor interest in high-risk assets. The Nikkei Index closed down 0.2% at 37,608.49 points; the Topix Index fell 0.5% to 2,790.88 points(.TCN)

– Hong Kong and China Stock Markets: Shanghai Composite Index rebounds slightly from the bottom, tourism sector leads the rise, Hang Seng Index closes higher with tech stocks strong

The Chinese stock market saw the Shanghai Composite Index rebound slightly from the bottom, led by non-ferrous metals and tourism stocks, with a focus on trend opportunities brought by annual report performance. The Shanghai Composite Index rose 0.2% to 3,370.03 points, and the CSI 300 Index rose 0.5%. The Hong Kong Hang Seng Index rose 0.9% to 23,905.56 points, with tech stocks leading the rise. (.SSCN) (.HKCN)

– Foreign Exchange Market: US dollar slightly below three-week high, awaiting clarity on Trump's next round of tariff policies

The US dollar is slightly below a three-week high against major currencies, with traders cautiously awaiting clear information on Trump's next round of tariff policies. The euro rose slightly after three consecutive days of decline, while the Japanese yen weakened slightly against the US dollar due to rising US Treasury yields. At 0525 GMT, the US dollar index was flat at 104.15. The euro rose 0.1% to 1.0819 USD. The US dollar rose 0.35% against the yen, trading at 149.83 yen. (FRX/CN)

– Eurozone Bond Market: Yields rise slightly, PMI data and Ukraine ceasefire negotiations in focus

Eurozone government bond yields rose slightly as investors focused on European PMI data while weighing the economic downside risks from US tariffs and growth expectations from Germany's investment plans. The yield on Germany's 10-year government bonds rose by 2 basis points to 2.79%. The yield on Italy's 10-year government bonds rose by 2.5 basis points to 3.85%. The Italy/Germany government bond spread is 102 basis points. (GVD/EURCN)

– International Oil Market: Oil prices rise slightly as the market weighs new sanctions on Iran and Russia-Ukraine ceasefire negotiations

Oil prices rose slightly as investors weighed the impact of new US sanctions on Iranian exports and ceasefire negotiations aimed at ending the Russia-Ukraine war, which could lead to increased Russian supply to global markets. At 0735 GMT, Brent crude futures rose by 4 cents to $72.20 per barrel. US West Texas Intermediate crude futures rose by 8 cents, an increase of 0.1%, to $68.36. (O/R)

– Global Gold Market: Gold prices steady as traders await new trading catalysts

Gold prices remained relatively unchanged as traders awaited new catalysts. Recent geopolitical concerns and expectations of US interest rate cuts have driven gold prices to record highs. At 0715 GMT, spot gold was nearly flat at $3,025.38 per ounce. US gold futures rose by 0.3% to $3,029.70. (GOL/)

– Metal Futures Market: London copper rises due to a weaker dollar, but concerns over US tariffs limit gains

London copper rose due to a weaker dollar, although concerns over impending US tariffs limited the increase. At 0715 GMT, three-month copper on the London Metal Exchange (LME) rose by 1.3% to $9,988 per ton. Shanghai copper rose by 0.9% to 81,840 yuan (11,277.39 USD) per ton. (MET/LCN)

Note: For other important financial news, please click (TOP-CMN); for recent "Reuters Evening News," please click (NN/CN)