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HONG KONG — Equity markets mostly rose on Tuesday following the previous day's sell-off, with focus on the release of US inflation data that could play a key role in the Federal Reserve's decision-making on cutting interest rates.

The broadly upbeat performance came despite a tepid showing on Wall Street, and with analysts warning the recent rally across equities could stall as investors lock in profits and assess the outlook for monetary policy.

There is a lot of nervousness on trading floors ahead of the February consumer price index report due later in the day after a surprise uptick in January that dented hopes the central bank would begin cutting rates sooner rather than later.

Futures traders are now betting on three reductions this year, compared with the six forecast at the start of the year.

"It is imperative to avoid a repeat of the last CPI release," said SPI Asset Management's Stephen Innes.

"Another report similar to January's could raise doubts about the Fed's rate cut wisdom in 2024. If the inflation dragon shows up again, it will not sit well with risk appetite."

Hong Kong pressed ahead with its recent advance, climbing more than three per cent, helped by fresh buying of tech firms and following above-forecast Chinese inflation data at the weekend that soothed worries about the country's economy.

Electronics giant Xiaomi surged more than 10 per cent after saying it will start deliveries of its first electric vehicle by the end of this month.

There were also gains in Sydney, Seoul, Singapore, Taipei, Mumbai and Manila.

However, Tokyo fell again as speculation swirls that the Bank of Japan will next week shift away from its ultra-loose monetary policy that has helped strengthen the yen.

Shanghai, Wellington and Bangkok also fell.

London, Paris and Frankfurt rose at the open.

Traders brushed off a broadly negative day on Wall Street, where investors have pushed equities to multiple record highs this year, and analysts suggested the rally could peter out.

"Stocks are likely overdue for some consolidation or even an extended period of modest declines at some point in the year," Anthony Saglimbene at Ameriprise said.

"Without a meaningful shift in the fundamental picture, we suspect investors would welcome such a downdraft and treat the event as a buying opportunity."

The prospect of US interest rates coming down this year has played a role in pushing bitcoin to new record highs, with the cryptocurrency peaking at $72,880.

Moves by US authorities and now regulators in Britain to allow exchange-traded funds for the unit have also provided support, opening it up to new classes of investors.

LONDON — Bitcoin raced to an all-time peak above $72,000 Monday as the world's most popular cryptocurrency won further support on greater trading accessibility and dollar weakness.

The virtual unit struck $72,234 as dealers also eyed an upcoming industry event that traditionally boosts bitcoin's price.

Monday's spurt extended last week's record-breaking run when the currency bulldozed its way past the previous November 2021 pinnacle of $68,991.

Bitcoin won further support Monday after Britain's Financial Conduct Authority (FCA) watchdog said it would join US regulators by allowing the creation of crypto-related securities.

US authorities earlier this year gave the green light to exchange-traded funds (ETFs) pegged to Bitcoin's spot price, making it easier for mainstream investors to add the unit to their portfolio.

Crypto 'going mainstream' 

"This [FCA statement] suggests that crypto is going mainstream, and not just bitcoin but also other established coins," XTB analyst Kathleen Brooks told AFP.

"We know that the demand is there, and this comes on the back of $10 billion of inflows into Bitcoin ETFs in the United States."

ETFs are widely regarded by commentators as proof of burgeoning crypto interest from institutional investors, further buoying investor enthusiasm.

Bitcoin is created — or "mined" — as a reward when powerful computers solve complex problems to validate transactions made on the blockchain.

But the reward given to Bitcoin "miners" — those who contribute to the creation of the blockchain by validating transactions — is about to be divided by two.

Next month's so-called "halving" has lent strong support to the unit's price in recent days and weeks by tightening supplies.

"Bitcoin has surged to a fresh all time high, boosted by strong ETF inflows and ahead of the April halving event," said City Index analyst Fiona Cincotta.

"The crypto market has skyrocketed 350 per cent from its 2022 low and shows little sign of stopping after the doors have been opened to institutional investors and as retail investors experience FOMO," she said in reference to a 'fear of missing out'.

Cincotta predicted that $100,000 could become "the next natural target" but sounded a note of caution.

"Bitcoin is extremely volatile and could drop just as quickly as it has risen," she warned.

Who created bitcoin? 

Momentum came also from the weaker dollar as Friday's US jobs data firmed expectations that the Federal Reserve remained on track to start cutting interest rates in June.

At its current price, bitcoin has soared almost 70 per cent since January, when it stood at about $43,000.

However, it slumped to $15,000 in November 2022 following the collapse of crypto exchange FTX.

The digital currency has a finite number of units. Bitcoin's creator Satoshi Nakamoto has limited the maximum number of Bitcoins to 21 million.

An ongoing court case in London is seeking to determine whether Australian computer scientist Craig Wright invented Bitcoin.

Wright says that he is Nakamoto, author of a white paper that introduced the cryptocurrency to the world in 2008.

Crypto Open Patent Alliance, a non-profit organisation set up to keep cryptocurrency technology free from patents, is suing Wright over the claims.

RIYADH — Saudi Aramco on Sunday reported a 24.7 per cent decline in profits in 2023 compared to the previous year, the result of lower oil prices and production cuts. 

The oil giant said in a filing with the Saudi stock market that net income reached 454.7 billion Saudi riyals ($121.25 billion) in 2023, compared to 604.01 billion Saudi riyals ($161.07 billion) in 2022.

"The decrease mainly reflects the impact of lower crude oil prices and lower volumes sold, and weakening refining and chemicals margins," Aramco said.

Russia's invasion of Ukraine in February 2022 prompted oil prices to skyrocket, peaking at more than $130 per barrel that year. 

Aramco reported what it described as record profits for 2022, giving the kingdom its first annual budget surplus in nearly a decade.

"In 2023 we achieved our second-highest ever net income. Our resilience and agility contributed to healthy cash flows and high levels of profitability, despite a backdrop of economic headwinds," Aramco CEO Amin H. Nasser said in a statement. 

"We also delivered for our shareholders with a 30 per cent year-on-year increase in total dividends paid in 2023," he added. 

Last year, prices dropped to $85 per barrel, resulting in year-on-year profit drops of 23 per cent in the third quarter, 38 per cent in the second quarter and 19.25 per cent in the first quarter of last year for Aramco.

Extended supply cuts 

Prices are expected to rise to around $88 per barrel this year, partially due to global uncertainty driven by the Hamas-Israel war, Riyadh-based firm Jadwa Investment said in a report published in October. 

They could reach $90 per barrel by the end of 2024, Jadwa Investment said. 

Analysts say the kingdom needs oil to be priced at around $80 per barrel to balance its budget, though that could be thrown off by production cuts and ramped-up spending. 

The world's biggest crude oil exporter said last Sunday it was extending its oil supply cuts of 1 million barrels per day (bpd) through June. 

Riyadh first announced its voluntary cut after an OPEC+ meeting in June 2023. 

It followed a decision in April 2023 by several OPEC+ members to slash production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery. 

The kingdom's daily production is now approximately 9 million bpd, far below its reported daily capacity of 12 million bpd. 

Under Crown Prince Mohammed Bin Salman, the de facto ruler, Saudi Arabia has sought both to open up and diversify its oil-reliant economy, spending heavily on much-hyped projects like a futuristic megacity known as NEOM. 

Aramco is the main source of revenue for Prince Mohammed's ambitious economic reform programme known as Vision 2030. 

On Thursday, the kingdom said it transferred an additional 8 per cent Aramco stake to firms owned by the kingdom's Public Investment Fund (PIF).

The transfer brought to 16 per cent the cumulative amount of shares transferred to the PIF, one of the world's largest sovereign wealth funds, and its subsidiaries. 

The stake was worth roughly $164 billion at the company's current market capitalisation, an Aramco media officer told AFP.

TUNIS — Tunisians are bracing themselves for more subdued celebrations during the Muslim holy month of Ramadan as an economic crisis grips the North African country.

In past years "you wouldn't have been able to set foot in the market because it was so crowded", vegetable merchant Mohamed Doryi told AFP.

"That's not the case today," said the 69-year-old, who no longer displays his prices to avoid scaring away potential customers.

Tunisians usually prepare for Ramadan — when daytime fasting is followed by festive but often costly meals with family and friends — by stocking up on large amounts of food.

But this year things are different, with purchasing power greatly diminished because of soaring prices, a recession and rising unemployment.

"I'm not poor, but I can't do it anymore. My pension doesn't cover my needs," said Fayka, a 65-year-old at Tunis's working-class Bab El Fellah market.

"This is the first time I've bought fruits and vegetables by the piece" instead of in bulk, the retiree added, asking that only her first name be used.

Tunisia has also been beset by political tensions since President Kais Saied granted himself full powers in July 2021.

A third of its 12 million people currently live below the poverty line after two years of high inflation — running at 10 per cent on average per year — and the price of many foods has tripled.

GDP growth came in at 0.4 per cent last year after severe drought damaged agriculture, and the country entered a recession at the end of 2023.

Unemployment also rose to 16.4 per cent at the end of last year, compared with 15.2 per cent at the end of 2022.

'Stagflation'

Economist Ridha Chkoundali says Tunisia is "experiencing a period of stagflation, which means a decline in growth and a rise in inflation".

This has been caused by "the deliberate choice of public authorities to prefer to repay debt, especially external debt", he argued.

This came at "the detriment of supplying the market with basic foodstuffs and agricultural inputs" such as fertilisers and fodder.

A shortage of money in the public coffers — burdened by the salaries of more than 650,000 civil servants — has meant regular shortages of basic subsidised items including flour, rice, sugar and semolina as the state has difficulties paying for them.

Tunisian banks are being asked by the state to finance the country's debt amounting to 80 per cent of GDP, undermining their ability to lend to the private sector and reducing growth even more.

Chkoundali argues that a lack of resources is a result of "the choice to break with the IMF".

In October 2022, the International Monetary Fund (IMF) agreed in principle to lend Tunisia around $2 billion, but Saied later rejected it on the grounds that the reforms it required in return were not sustainable.

In a Tunis butcher's shop, a 50-year-old woman cautiously ordered 150 grams of veal ahead of Ramadan.

Red meat, which now costs more than 40 dinars (around $13) a kilo, is a luxury in a country where the average salary is 1,000 dinars per month (about $325).

"My husband recently passed away and I can't afford to buy more," she whispered to the butcher.

Mustapha Ben Salmane, 52, told AFP that more and more customers ask for just a handful of minced meat or spicy merguez sausage. "I can't say no to them. People are exhausted," he said.

BERLIN — Hundreds of thousands of passengers in Germany faced travel misery on Thursday as rail and airport workers staged new strikes to back demands for higher wages.

Europe's top economy has been troubled by industrial action for months as workers and management across numerous sectors wrestle over terms amid high inflation and weak business activity.

Work stoppages have hit transport, supermarkets and the civil service, among other areas of public life.

For the fifth time since November 2023, rail workers downed their tools, beginning a 35-hour strike on freight services at 17:00 GMT on Wednesday and on passenger services at 1:00 GMT on Thursday morning.

The length of the strike is intended to underline a key demand of the GDL train drivers' union to reduce the working week to 35 hours from 38.

Reinhard Ligocki, who finally arrived at Berlin's main station on a train from the Ruhr Valley, said that average Germans kept getting caught in the middle of an increasingly bitter conflict.

"Negotiators for the two sides shouldn't take out their long-running dispute on the passengers," he said.

'No longer reliable' 

Rail employees have been staging repeated strikes to demand a pay rise to help members manage the higher cost of living in light of inflation.

A walkout by train drivers in January caused travel disruption for thousands of passengers over several days.

That more limited walkout was the beginning of a "wave of strikes", GDL boss Claus Weselsky said this week.

Future action would be announced "when we think the time is right" and no longer 48 hours in advance as has been the case in the past, Weselsky said.

"Rail is no longer a reliable means of transport", with strikes due to drag on, he warned.

Rail operator Deutsche Bahn has condemned the walkout, saying it has made concessions amounting to a 13-per cent pay increase.

Company spokesman Achim Stauss told public broadcaster ZDF that only about 20 per cent of its long-distance trains were running, with "big differences between regions".

Weselsky's hard line has come in for criticism, with Transport Minister Volker Wissing saying he was losing patience with the industrial action.

"Those who exercise their right to strike also have to take responsibility and that means negotiating constructively," he told ARD public television.

'Damaging' impact 

Meanwhile, Lufthansa ground staff held a nationwide strike from 3:00 GMT on Thursday due to last until 6:10 GMT Saturday. The company said it was only able to maintain about "10 to 20 per cent of the flight schedule".

Frankfurt, Germany's biggest aviation hub, would see "major disruptions and flight cancellations throughout the day", the airport said in a statement, adding it would be closed to all outbound passengers.

An unannounced strike by security staff at Duesseldorf airport triggered further chaos, with passengers stuck in massive queues and a rash of flights cancelled.

The Lufthansa strike is expected to cause further problems for the airline's services at other airports.

A previous one-day strike affected some 100,000 passengers, with between 80 and 90 per cent of flights grounded.

Workers' representatives and management have blamed each other for the travel disruption.

The Verdi union is seeking pay rises of 12.5 per cent for workers, a minimum of 500 euros ($542) more a month.

Lufthansa has offered pay increases over an extended period but not enough to meet Verdi's demands, the union has said.

The carrier reported record 2023 profits on Thursday but warned about the "damaging" impact of the wave of industrial action at the start of this year.

Following ground staff, cabin crews were expected to stage their own strike in the coming weeks after pay talks broke down on Wednesday.

CAIRO — Egypt's central bank announced on Wednesday it was floating the pound in a move to unlock emergency loans from the (IMF) that saw the currency lose more than a third of its value.

The bank also hiked its key deposit rate to a record 27.25 per cent as it moved to rein in inflation in the import-dependent economy which has been hit by sharp falls in its hard currency earnings.

It was not immediately clear whether the bank would continue efforts to manage the pound's depreciation or market forces would be entirely free to set a new unified exchange rate.

The bank was expected to announce further details at a news conference scheduled for Wednesday evening.

By 3:00pm (13:00GMT), the Egyptian pound was trading at a record low of 50.6 pounds to the US dollar, after more than a year of a stabilised official exchange rate of around 30.9.

At a surprise monetary policy meeting Wednesday, the central bank committed to "allowing the exchange rate to be determined by market forces," saying in a statement that "the unification of the exchange rate is crucial".

Egypt has been in talks with the IMF over increasing the value of a $3 billion loan facility already agreed with the lender.

A fully flexible exchange rate and a tighter monetary policy were among the conditions attached by the IMF and loan tranches have been repeatedly delayed until the reforms go ahead.

State-linked media Extra News cited a "high-level source" as saying that a new agreement with the IMF "will be signed within hours".

Before Wednesday's announcements, Egypt had already devalued its currency three times in recent years. But it had previously held back from fully floating the pound, citing concerns for the impact on Egyptians, two-thirds of whom live below or on the poverty line.

Analysts say Cairo has been emboldened to bite the bullet on exchange rate reform by the announcement late last month of $35 billion in foreign direct investment by the United Arab Emirates.

Months of dire foreign currency shortages had caused the parallel market rate to surge to 70 pounds to the dollar earlier this year, before dropping closer to the official rate after a first tranche of $15 billion was deposited by the UAE.

FX liquidity 

Since the most recent crisis began in early 2022, Egypt's economy — almost entirely reliant on imported products or inputs — has been buckling under rampant inflation, which reached a record high of nearly 40 per cent last August.

The central bank described its move to hike interest rates Wednesday as an attempt to "accelerate the monetary tightening process in order to fast-track the disinflation path and ensure a decline in underlying inflation".

The bank also said "sufficient funding has been secured to avail foreign exchange liquidity", after fears Egypt would be unable to service its foreign debt after years of heavy borrowing.

Egypt's external debt has ballooned to $164.7 billion, and the cost of servicing it is expected to reach $42 billion this year. In February, the country's foreign currency reserves stood at $35.3 billion.

Egypt's economy, dominated by military-linked enterprises and for years focused on expensive infrastructure mega-projects, has been hit hard by a series of recent shocks.

The Ukraine war saw investors pull billions out of the country, while the cost of wheat and other imports surged.

Remittances from overseas Egyptian workers — the main source of foreign currency — slumped by as much as 30 per cent in July-September 2023 alone, according to central bank figures.

And most recently, attacks by Yemen's Huthi rebels on Red Sea shipping have slashed vital Suez Canal fees by 40-50 per cent.

BEIJING — China's annual political conclave kicks off in Beijing on Monday, with officials saying the flagging economy and youth unemployment are of "great concern" as they lay out plans for the coming year.

Armed police and public security workers are ubiquitous on Beijing streets as thousands of delegates arrive for the beginning of the annual "Two Sessions" gatherings.

Proceedings kick off Monday at 3:00pm (07:00 GMT) with the opening ceremony of China's People's Political Consultative Conference (CPPCC) — attended by President Xi Jinping and other party top brass — which will last until next Sunday.

At a press conference, CPPCC spokesperson Liu Jieyi said that "economic topics are of great concern" to the body's over two thousand members.

So, too, he said Sunday, was "the employment of young people, especially fresh graduates", with youth unemployment officially at around 15 per cent at the end of 2023, after the statistics bureau adjusted its calculation methods.

Monday's CPPCC is relatively low-stakes compared to the near-simultaneous gathering of the country's legislature, the National People's Congress, which begins on Tuesday. The meetings are not expected to see the unveiling of big-ticket bailouts that experts say are needed to inject growth back into China's economy, which last year posted some of its lowest growth in decades.

Beijing is instead set to double down on national security, with analysts expecting it to increase its military budget, second only to the United States.