Seoul Gazette - European markets rise ahead of Ukraine war talks

US President Donald Trump sidelined Kyiv and its European backers last week by calling his Russian counterpart Vladimir Putin to talk about beginning negotiations to end the conflict.

With fears that Europe could be sidelined in negotiations to end the three-year war, European leaders are due to meet later in the day amid talk of greater defence spending.

London, Paris and Frankfurt stock markets all rose on Monday, with defence stocks driving most of the action.

Britain's BAE Systems was up nearly seven percent, topping London's FTSE 100 index, while French defence group Thales rose over five percent in Paris.

Shares in German arms maker Rheinmetall jumped eight percent on Frankfurt's DAX index.

However, traders were cautious over the prospect of higher defence spending and its economic consequences.

"There is a fear that the breakdown in military ties between the US and Europe will necessitate a huge ramp-up in defence spending, thus pushing debt and borrowing costs higher once again," said Joshua Mahony, chief market analyst at Scope markets.

It adds to the uncertainty on trading floors since Trump returned to the Oval Office last month announcing a series of tariffs against key trading partners.

While some of the measures have been delayed for negotiations, observers warn the imposition of huge levies on exports to the world's biggest economy could deal a hefty blow to financial markets.

After a tepid lead from Wall Street, Asian equities ended Monday on a mixed note.

Hong Kong was barely moved after last week's rally fuelled by a surge in tech firms following the release of Chinese startup DeepSeek's chatbot.

"DeepSeek proves that China's private sector remains innovative and competitive, and it also shows the possibility for China's continued AI advancement," said analysts at Bank of America Global Research.

Still, the mood in Hong Kong was improved by news that Chinese President Xi Jinping was meeting Alibaba co-founder Jack Ma and other top entrepreneurs this week.

The gathering fuelled hopes of fresh support for the private sector, which has been hit by a series of crackdowns by the government in the past few years, hammering share prices.

Ma's inclusion hints at the billionaire magnate's potential public rehabilitation after years out of the spotlight following a tangle with regulators.

Other participants included Ren Zhengfei -- the founder of tech titan Huawei -- and Wang Chuanfu, who established electric-vehicle giant BYD.

Tokyo edged up as data showed the Japanese economy slowed sharply last year but enjoyed a forecast-topping final quarter thanks to strong exports.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.2 percent at 8,752.96 points

Paris - CAC 40: UP 0.2 percent at 8,191.37

Frankfurt - DAX: UP 0.8 percent at 22,699.48

Tokyo - Nikkei 225: UP 0.1 percent at 39,174.25 (close)

Hong Kong - Hang Seng Index: FLAT at 22,616.23 (close)

Shanghai - Composite: UP 0.3 percent at 3,355.83 (close)

New York - Dow: DOWN 0.4 percent at 44,546.08 (close)

Euro/dollar: DOWN at $1.0487 from $1.0495 on Friday

Pound/dollar: UP at $1.2606 from $1.2587

Dollar/yen: DOWN at 151.63 from 152.25 yen

Euro/pound: DOWN at 83.22 pence from 83.36 pence

West Texas Intermediate: UP 0.3 percent at $70.92 per barrel

Brent North Sea Crude: UP 0.2 percent at $74.90 per barrel

X.Eom--SG