Former U.S. President Donald Trump said on Tuesday that the United States is "leading everybody, including China," in the development of artificial intelligence. He made the claim during public remarks that did not detail specific metrics or policy proposals.

Trump’s assertion comes as Washington and Beijing vie for dominance in advanced technologies. The Biden administration has tightened export controls on cutting-edge chips while Congress weighs further incentives for domestic AI research and semiconductor manufacturing. China, for its part, has identified AI as a strategic priority in its latest five-year plan.

Arago, a France- and US-based deep-tech start-up, has raised $26 million in an oversubscribed seed round to commercialise a photonic processor that it says delivers GPU-class performance while cutting AI energy use by at least a factor of ten. The chip, codenamed “JEF”, processes data with photons rather than electrons, generating far less heat and allowing denser computing without additional cooling or power upgrades.

Read more

A federal judge in Boston has blocked the Trump administration from imposing steep cuts on research funding distributed by the National Science Foundation. U.S. District Judge Indira Talwani ruled on 20 June that the policy, which would have limited reimbursement of universities’ “indirect” costs to 15 percent of a grant’s direct research expenses, was “arbitrary and capricious” and violated several federal statutes.

Universities said the cap would have stripped them of tens of millions of dollars needed for building maintenance, computing systems and other overhead tied to projects in artificial intelligence, cybersecurity and semiconductor development. The University of California estimated it could lose almost $100 million annually. The lawsuit was brought by a coalition that also included the Massachusetts Institute of Technology and Princeton University.

Judge Talwani’s order prevents the National Science Foundation from enforcing the limits while the litigation proceeds and follows earlier courtroom setbacks for similar caps the administration attempted at the Energy Department and the National Institutes of Health. The decision preserves a funding model under which each grant recipient negotiates indirect cost rates individually with the NSF.

A Bloomberg review of internal contracts, shipping records and technical blueprints shows Russia’s Khabarovsk-based drone maker Aero-HIT has been working with several Chinese suppliers, including engineers from Autel Robotics, since late 2022 to manufacture and localise combat unmanned aerial vehicles. The documents outline secret technology transfers and concealed supply routes that allow Moscow to skirt Western sanctions imposed after its invasion of Ukraine.

Read more

China is rapidly closing the gap with the United States in the global artificial intelligence (AI) race, challenging American dominance in the sector. Chinese AI models are gaining popularity worldwide, with powerful and accessible offerings that are increasingly adopted by major corporations and governments. This trend is eroding the U.S.'s previously strong hold on AI technology and setting the stage for intensified global competition. Contributing factors to America's waning lead include restrictive copyright lawsuits and underutilization of data.

Notably, half of the world's top AI researchers are based in China, raising questions about Beijing's ability to retain this talent. Experts emphasize the need for Washington to develop a comprehensive strategy to manage multifaceted AI competition, cautioning that success in one area could expose vulnerabilities in others. The AI race is viewed as a critical front in technological dominance leading up to 2030, with some describing it as a high-stakes contest comparable to an arms race.

The U.S. Commerce Department has authorised GE Aerospace to resume exporting jet engines to the Commercial Aircraft Corporation of China, reversing licence suspensions imposed several weeks ago amid escalating trade frictions, according to people familiar with the decision.

The clearance applies to LEAP-1C engines, made through a GE-Safran joint venture for COMAC’s C919 narrow-body aircraft, and to GE’s CF34 engines slated for the Chinese manufacturer’s planned C909 regional jet. Industry sources said licences for at least one other U.S. aerospace supplier, and potentially others such as Honeywell and Collins Aerospace, were also restored.

Washington’s move follows Beijing’s recent easing of restrictions on rare-earth exports and comes alongside U.S. relaxations on chip-design software and ethane shipments, signalling a tentative thaw in bilateral trade relations.

Samsung Electronics has delayed the completion of its semiconductor fabrication plant in Taylor, Texas, originally scheduled to open in 2024, now pushed back to 2026. The delay is attributed to a lack of customers for the plant's 4-nanometer chip output, prompting the company to slow down equipment installation while it reassesses market demand. The Texas facility, valued between $37 billion and $44 billion according to various sources, has received substantial support through government incentives, including up to $6.6 billion in CHIPS Act subsidies finalized in December 2024 and additional grants totaling approximately $4.7 billion. Despite these subsidies and tax credits, Samsung is not proceeding with full-scale production at the site but may generate limited output if financial incentives remain in place.

India today marked the tenth anniversary of the Digital India programme, with Prime Minister Narendra Modi publishing a detailed blog titled “A Decade of Digital India.” Modi called the initiative a people-driven movement that has shifted the country from limited connectivity in 2015 to a position of global digital leadership.

Government data released for the occasion show internet connections have climbed from 250 million in 2014 to more than 970 million, while broadband subscriptions have reached about 950 million. The country has installed 4.81 lakh 5G base stations in just two years, extending high-speed coverage to 99.6 percent of districts. Under BharatNet, fibre links now reach 218,000 village councils, and the national fibre network exceeds 420,000 kilometres.

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South Korea's exports increased by 4.3% in June 2025 compared to the same month last year, marking a rebound for the trade-dependent economy. This growth was primarily driven by a record $14.97 billion in semiconductor shipments, the highest ever recorded for the sector. Despite this positive development, exports to key markets such as the United States and China remained weak. South Korean officials have cautioned that economic risks are expected to continue throughout 2025 due to ongoing uncertainties related to U.S. tariffs.

India is advancing its position as a global leader in the steel industry through a combination of policy incentives and innovation, according to statements from Union Minister H. D. Kumaraswamy and Prime Minister Narendra Modi. The steel sector is highlighted as a backbone for India's growth in infrastructure, defense, electric mobility, and clean energy.

Under Prime Minister Modi's leadership, India has become one of the most favored investment destinations worldwide, driven by government reforms that simplify laws and digitize governance. Union Minister Dr. Jitendra Singh emphasized the socio-economic impact of citizen-centric digital reforms, which have expanded governance beyond traditional bureaucratic boundaries and empowered citizens. The Digital India mission has transformed rural life by providing access to services such as weather updates, market prices, education, healthcare, agriculture, and banking. India now accounts for half of global digital payments, with digital transactions increasing 100-fold since 2013. The Unified Payments Interface (UPI) operates in seven countries, and India is the world's second-largest mobile manufacturer with a semiconductor industry valued at ₹4 lakh crore. Additionally, the government has established a common compute facility under the AI mission, which currently hosts 34,000 GPUs, with plans to add 6,000 more, supporting technological advancement in the country.

China is rapidly advancing in artificial intelligence, with experts noting its impressive progress in developing smarter algorithms and leveraging vast amounts of data despite lagging in hardware capabilities. Dong-Seon Chang, a South Korean cognitive neuroscientist and founder of the Future Explorer Society, highlighted China's emergence as a global leader in AI through strategic talent development. Meanwhile, South Korea's finance minister nominee, Koo Yoon-chul, has pledged to drive an 'economic revolution' by fostering new growth engines centered on innovation. He envisions building a 'Corporation Korea' and promoting a transformative economic model focused on substantial growth. South Korea’s new leadership views AI not only as a technological upgrade but also as a catalyst to redefine work, governance, and national purpose.

Ukrainian President Volodymyr Zelenskyy has signed a decree imposing sanctions on 87 individuals and organisations involved in supplying components and equipment for Shahed-136 (Geran-2) attack drones and other weapons to Russia. The measure, announced on 27 June, targets 52 Russian nationals and 35 legal entities, including 34 companies registered in Russia and one in China, according to presidential office chief Andrii Yermak.

Read more

The Senate Finance Committee is advancing a tax bill known as the "One Big Beautiful Bill Act," which includes several notable provisions affecting state and local tax (SALT) deductions, investment incentives, and research and development expenses. Republicans are considering a temporary increase to the SALT deduction cap, a key issue delaying the bill's progress. The legislation proposes expanding Qualified Small Business Stock (QSBS) benefits to encourage tech startup investments. It also includes an expansion of the CHIPS Act investment tax credit aimed at boosting semiconductor manufacturing.

Additionally, the bill would allow for the immediate deduction of domestic research and experimental (R&E) expenditures, in some cases permanently and retroactively. The Senate's version of the bill also targets SALT cap workarounds by imposing new limits on pass-through entity tax (PTET) deductions. These Senate provisions represent departures from earlier House proposals, reflecting ongoing negotiations to finalize the legislation.

On June 17, 2025, the Tohoku Shinkansen suspended operations between Tokyo and Sendai due to a train malfunction involving a seven-car E8 series train undergoing inspection between Utsunomiya and Nasushiobara stations. The train lost acceleration and stopped, leading to a suspension of both up and down lines with no immediate prospect for resumption. Initially, the service was expected to resume around 7 p.m., but JR East later advanced the reopening to approximately 5 p.m. The affected train was a newly introduced E8 series, deployed on June 10, which experienced a power supply device failure preventing motor function.

On the same day, three other E8 series trains also encountered malfunctions, resulting in a total of four incidents and causing 21 train cancellations on the Tohoku and Yamagata Shinkansen lines. JR East suspended solo operation of the E8 series trains and implemented reduced service schedules, including partial suspensions on the Yamagata Shinkansen from June 19 onward, with disruptions continuing through July. The malfunctions were linked to damaged semiconductor components in the power supply devices. Additionally, the Yamagata Shinkansen faced further operational reductions in early July, with planned suspensions from July 1 to 7 and ongoing service adjustments expected. Apart from the E8 series issues, the Tohoku Shinkansen also experienced temporary service suspensions due to heavy rain in early July, causing delays and brief halts between Tokyo and Sendai. JR East managed these interruptions with timely resumptions, including a restart of service on July 1 and July 10. Other unrelated train line disruptions occurred during this period, such as the JR Saikyo Line and Keikyu Line suspensions, but these were not connected to the E8 series problems.

The Nikkei 225 stock index in Japan experienced notable volatility in late June and early July 2025. On June 26, the Nikkei rose above the 39,000-point level for the first time in approximately four months, supported by gains in U.S. technology and semiconductor stocks. This upward momentum continued, and by June 27, the index surpassed the 40,000-point mark for the first time in five months, closing at 40,150.79 points, a gain of 566.21 points from the previous day.

The recovery was attributed to easing concerns over U.S. tariff policies, improvements in Middle East geopolitical tensions, and positive investor sentiment towards Chinese-related stocks. Market participants also noted increased buying interest driven by a "vacuum zone" effect and expectations of expanded mergers and acquisitions in Japan. The rally extended into late June, with the Nikkei reaching an 11-month high above 40,800 points on June 30, buoyed by optimism over the U.S. economy and anticipation of early interest rate cuts. However, on July 1, the index reversed course, falling below the 40,000-point threshold amid profit-taking and renewed concerns over U.S.-Japan trade negotiations. The decline was exacerbated by U.S. President Donald Trump's threat to impose new tariffs on Japan, targeting sectors such as rice and automobiles. The Nikkei closed July 1 at 39,986 points, ending a five-day winning streak and reflecting the market's sensitivity to trade policy developments and geopolitical factors.

The Nikkei Stock Average experienced notable fluctuations between late June and early July 2025. On June 26, the index surpassed the 39,000 yen mark for the first time in approximately four months, driven by gains in U.S. high-tech stocks and semiconductor shares. The upward momentum continued, and by June 27, the Nikkei briefly climbed above 40,000 yen, reaching levels not seen since late January, marking a five-month high.

The index closed at 40,150 yen on June 27, up 566 yen from the previous day, setting a new annual high. This rally was supported by easing concerns over U.S. tariffs and Middle East geopolitical tensions, as well as positive global stock market trends. The Nikkei further extended gains, surpassing 40,700 yen by June 30 and reaching an 11-month high, bolstered by a Wall Street rally and increased risk appetite. However, on July 1 and 2, the index saw a sharp decline, dropping more than 500 yen amid renewed worries triggered by U.S. President Donald Trump's statements about raising tariffs on Japan above 30%. This caused a temporary breach below the 40,000 yen threshold. Following these declines, the market showed signs of recovery, with the Nikkei regaining the 40,000 yen level on July 4, supported by strong U.S. employment data and semiconductor stock purchases. Nevertheless, by July 7, the Tokyo stock market retreated again, closing down 223 yen amid heightened caution ahead of the looming U.S. tariff deadline and intensified tariff negotiation concerns.

Shares of Dixon Technologies rose as much as 4.5% to ₹14,954 on the National Stock Exchange on Friday after Nomura reiterated its Buy rating and raised its price target to ₹21,409, the highest forecast among brokerages covering the stock. The Japanese firm said Dixon is poised to capture a dominant share of India’s mobile electronics manufacturing-services market, helped by Original Design Manufacturing partnerships and growing export orders from brands such as Motorola.

Nomura projects Dixon’s smartphone production to climb to 45 million units in fiscal 2026 and 64 million in 2027, underpinned by tariff-driven shifts in global supply chains and the company’s capacity expansions. The brokerage flagged additional upside catalysts, including regulatory clearances for existing alliances and new customer wins.

The gain in Dixon extended a broader advance in Indian technology names. Coforge and HCL Technologies each added about 3% amid a rally in the Nasdaq and renewed expectations that the US Federal Reserve could cut interest rates sooner than previously anticipated. Despite Friday’s jump, Dixon shares remain roughly 20% lower for the year to date.

The Optron-Stavropol plant in Russia, a key supplier of microelectronics and power semiconductors for military equipment and import-substituted aircraft such as the Superjet, has ceased operations and is reportedly on the verge of bankruptcy. This facility was the only Russian enterprise producing semiconductors for military aircraft and import-substituted passenger airliners. The shutdown is linked to issues with the state defense order. Meanwhile, an investigation by Finnish media and Yle revealed that since the start of the conflict in February 2022, Russia has imported at least €1 billion worth of aircraft parts from Airbus and Boeing, circumventing Western sanctions through intermediaries in the UAE, Turkey, and China, with Dubai serving as a major transit hub. Additionally, a Finnish company is suspected of exporting sanctioned goods worth millions to Russia, with reports indicating a connection to the Russian military through the company official's family. Separately, a Finnish ice hockey player was reportedly detained, though details remain limited.

South Korea has established a task force to address tariff and non-tariff negotiations with the United States, according to the South Korean Ministry of Industry. This task force will coordinate closely with the private sector to manage trade discussions. The chief trade negotiator of South Korea is scheduled to visit the United States from June 22 to June 27 for high-level trade talks, marking the first such engagement under the administration of President Lee Jae-myung. Prior to this visit, South Korean and U.S. trade authorities have been working toward a comprehensive agreement on tariff issues, aiming to finalize it by July 8.

China has emerged as the leading external contributor to Russia’s drone campaign against Ukraine, according to a 19-June analysis by The Economist of debris from the 10 June strike on Kyiv. Almost 500 unmanned aircraft were launched that night, and investigators found Chinese-made antennas and other parts inside many of the wrecks. The magazine concludes that Beijing has “crossed the line into providing lethal aid,” enabling Moscow to maintain and potentially double the scale of future raids, a warning echoed by Ukrainian President Volodymyr Zelenskyy.

The revelations coincide with a New York Times report citing cybersecurity researchers and a leaked Russian Federal Security Service document that describe a parallel drive by Chinese state-linked hackers to penetrate Russian government agencies and defence contractors. Intrusions, which intensified in mid-2022, have targeted information on submarines, drones, satellite communications and electronic warfare. One operation, attributed to a group known as “Sanyo,” impersonated a major Russian engineering firm in an attempt to steal nuclear-submarine data. The FSB memo labels China an “enemy,” underscoring private Russian misgivings about its closest wartime partner.

Taken together, the findings depict a complex relationship in which Beijing simultaneously supplies hardware underpinning Russia’s assault on Ukraine while covertly harvesting Russian military know-how for its own strategic ends. Both Moscow and the Chinese embassy have declined to comment, and Beijing continues to deny providing lethal assistance to Russia.

Former U.S. President Donald Trump said on Tuesday that the United States is "leading everybody, including China," in the development of artificial intelligence. He made the claim during public remarks that did not detail specific metrics or policy proposals.

Trump’s assertion comes as Washington and Beijing vie for dominance in advanced technologies. The Biden administration has tightened export controls on cutting-edge chips while Congress weighs further incentives for domestic AI research and semiconductor manufacturing. China, for its part, has identified AI as a strategic priority in its latest five-year plan.

Arago, a France- and US-based deep-tech start-up, has raised $26 million in an oversubscribed seed round to commercialise a photonic processor that it says delivers GPU-class performance while cutting AI energy use by at least a factor of ten. The chip, codenamed “JEF”, processes data with photons rather than electrons, generating far less heat and allowing denser computing without additional cooling or power upgrades.

Read more

A federal judge in Boston has blocked the Trump administration from imposing steep cuts on research funding distributed by the National Science Foundation. U.S. District Judge Indira Talwani ruled on 20 June that the policy, which would have limited reimbursement of universities’ “indirect” costs to 15 percent of a grant’s direct research expenses, was “arbitrary and capricious” and violated several federal statutes.

Universities said the cap would have stripped them of tens of millions of dollars needed for building maintenance, computing systems and other overhead tied to projects in artificial intelligence, cybersecurity and semiconductor development. The University of California estimated it could lose almost $100 million annually. The lawsuit was brought by a coalition that also included the Massachusetts Institute of Technology and Princeton University.

Judge Talwani’s order prevents the National Science Foundation from enforcing the limits while the litigation proceeds and follows earlier courtroom setbacks for similar caps the administration attempted at the Energy Department and the National Institutes of Health. The decision preserves a funding model under which each grant recipient negotiates indirect cost rates individually with the NSF.

A Bloomberg review of internal contracts, shipping records and technical blueprints shows Russia’s Khabarovsk-based drone maker Aero-HIT has been working with several Chinese suppliers, including engineers from Autel Robotics, since late 2022 to manufacture and localise combat unmanned aerial vehicles. The documents outline secret technology transfers and concealed supply routes that allow Moscow to skirt Western sanctions imposed after its invasion of Ukraine.

Read more

China is rapidly closing the gap with the United States in the global artificial intelligence (AI) race, challenging American dominance in the sector. Chinese AI models are gaining popularity worldwide, with powerful and accessible offerings that are increasingly adopted by major corporations and governments. This trend is eroding the U.S.'s previously strong hold on AI technology and setting the stage for intensified global competition. Contributing factors to America's waning lead include restrictive copyright lawsuits and underutilization of data.

Notably, half of the world's top AI researchers are based in China, raising questions about Beijing's ability to retain this talent. Experts emphasize the need for Washington to develop a comprehensive strategy to manage multifaceted AI competition, cautioning that success in one area could expose vulnerabilities in others. The AI race is viewed as a critical front in technological dominance leading up to 2030, with some describing it as a high-stakes contest comparable to an arms race.

The U.S. Commerce Department has authorised GE Aerospace to resume exporting jet engines to the Commercial Aircraft Corporation of China, reversing licence suspensions imposed several weeks ago amid escalating trade frictions, according to people familiar with the decision.

The clearance applies to LEAP-1C engines, made through a GE-Safran joint venture for COMAC’s C919 narrow-body aircraft, and to GE’s CF34 engines slated for the Chinese manufacturer’s planned C909 regional jet. Industry sources said licences for at least one other U.S. aerospace supplier, and potentially others such as Honeywell and Collins Aerospace, were also restored.

Washington’s move follows Beijing’s recent easing of restrictions on rare-earth exports and comes alongside U.S. relaxations on chip-design software and ethane shipments, signalling a tentative thaw in bilateral trade relations.

Samsung Electronics has delayed the completion of its semiconductor fabrication plant in Taylor, Texas, originally scheduled to open in 2024, now pushed back to 2026. The delay is attributed to a lack of customers for the plant's 4-nanometer chip output, prompting the company to slow down equipment installation while it reassesses market demand. The Texas facility, valued between $37 billion and $44 billion according to various sources, has received substantial support through government incentives, including up to $6.6 billion in CHIPS Act subsidies finalized in December 2024 and additional grants totaling approximately $4.7 billion. Despite these subsidies and tax credits, Samsung is not proceeding with full-scale production at the site but may generate limited output if financial incentives remain in place.

India today marked the tenth anniversary of the Digital India programme, with Prime Minister Narendra Modi publishing a detailed blog titled “A Decade of Digital India.” Modi called the initiative a people-driven movement that has shifted the country from limited connectivity in 2015 to a position of global digital leadership.

Government data released for the occasion show internet connections have climbed from 250 million in 2014 to more than 970 million, while broadband subscriptions have reached about 950 million. The country has installed 4.81 lakh 5G base stations in just two years, extending high-speed coverage to 99.6 percent of districts. Under BharatNet, fibre links now reach 218,000 village councils, and the national fibre network exceeds 420,000 kilometres.

Read more

South Korea's exports increased by 4.3% in June 2025 compared to the same month last year, marking a rebound for the trade-dependent economy. This growth was primarily driven by a record $14.97 billion in semiconductor shipments, the highest ever recorded for the sector. Despite this positive development, exports to key markets such as the United States and China remained weak. South Korean officials have cautioned that economic risks are expected to continue throughout 2025 due to ongoing uncertainties related to U.S. tariffs.

India is advancing its position as a global leader in the steel industry through a combination of policy incentives and innovation, according to statements from Union Minister H. D. Kumaraswamy and Prime Minister Narendra Modi. The steel sector is highlighted as a backbone for India's growth in infrastructure, defense, electric mobility, and clean energy.

Under Prime Minister Modi's leadership, India has become one of the most favored investment destinations worldwide, driven by government reforms that simplify laws and digitize governance. Union Minister Dr. Jitendra Singh emphasized the socio-economic impact of citizen-centric digital reforms, which have expanded governance beyond traditional bureaucratic boundaries and empowered citizens. The Digital India mission has transformed rural life by providing access to services such as weather updates, market prices, education, healthcare, agriculture, and banking. India now accounts for half of global digital payments, with digital transactions increasing 100-fold since 2013. The Unified Payments Interface (UPI) operates in seven countries, and India is the world's second-largest mobile manufacturer with a semiconductor industry valued at ₹4 lakh crore. Additionally, the government has established a common compute facility under the AI mission, which currently hosts 34,000 GPUs, with plans to add 6,000 more, supporting technological advancement in the country.

China is rapidly advancing in artificial intelligence, with experts noting its impressive progress in developing smarter algorithms and leveraging vast amounts of data despite lagging in hardware capabilities. Dong-Seon Chang, a South Korean cognitive neuroscientist and founder of the Future Explorer Society, highlighted China's emergence as a global leader in AI through strategic talent development. Meanwhile, South Korea's finance minister nominee, Koo Yoon-chul, has pledged to drive an 'economic revolution' by fostering new growth engines centered on innovation. He envisions building a 'Corporation Korea' and promoting a transformative economic model focused on substantial growth. South Korea’s new leadership views AI not only as a technological upgrade but also as a catalyst to redefine work, governance, and national purpose.

Ukrainian President Volodymyr Zelenskyy has signed a decree imposing sanctions on 87 individuals and organisations involved in supplying components and equipment for Shahed-136 (Geran-2) attack drones and other weapons to Russia. The measure, announced on 27 June, targets 52 Russian nationals and 35 legal entities, including 34 companies registered in Russia and one in China, according to presidential office chief Andrii Yermak.

Read more

The Senate Finance Committee is advancing a tax bill known as the "One Big Beautiful Bill Act," which includes several notable provisions affecting state and local tax (SALT) deductions, investment incentives, and research and development expenses. Republicans are considering a temporary increase to the SALT deduction cap, a key issue delaying the bill's progress. The legislation proposes expanding Qualified Small Business Stock (QSBS) benefits to encourage tech startup investments. It also includes an expansion of the CHIPS Act investment tax credit aimed at boosting semiconductor manufacturing.

Additionally, the bill would allow for the immediate deduction of domestic research and experimental (R&E) expenditures, in some cases permanently and retroactively. The Senate's version of the bill also targets SALT cap workarounds by imposing new limits on pass-through entity tax (PTET) deductions. These Senate provisions represent departures from earlier House proposals, reflecting ongoing negotiations to finalize the legislation.

On June 17, 2025, the Tohoku Shinkansen suspended operations between Tokyo and Sendai due to a train malfunction involving a seven-car E8 series train undergoing inspection between Utsunomiya and Nasushiobara stations. The train lost acceleration and stopped, leading to a suspension of both up and down lines with no immediate prospect for resumption. Initially, the service was expected to resume around 7 p.m., but JR East later advanced the reopening to approximately 5 p.m. The affected train was a newly introduced E8 series, deployed on June 10, which experienced a power supply device failure preventing motor function.

On the same day, three other E8 series trains also encountered malfunctions, resulting in a total of four incidents and causing 21 train cancellations on the Tohoku and Yamagata Shinkansen lines. JR East suspended solo operation of the E8 series trains and implemented reduced service schedules, including partial suspensions on the Yamagata Shinkansen from June 19 onward, with disruptions continuing through July. The malfunctions were linked to damaged semiconductor components in the power supply devices. Additionally, the Yamagata Shinkansen faced further operational reductions in early July, with planned suspensions from July 1 to 7 and ongoing service adjustments expected. Apart from the E8 series issues, the Tohoku Shinkansen also experienced temporary service suspensions due to heavy rain in early July, causing delays and brief halts between Tokyo and Sendai. JR East managed these interruptions with timely resumptions, including a restart of service on July 1 and July 10. Other unrelated train line disruptions occurred during this period, such as the JR Saikyo Line and Keikyu Line suspensions, but these were not connected to the E8 series problems.

The Nikkei 225 stock index in Japan experienced notable volatility in late June and early July 2025. On June 26, the Nikkei rose above the 39,000-point level for the first time in approximately four months, supported by gains in U.S. technology and semiconductor stocks. This upward momentum continued, and by June 27, the index surpassed the 40,000-point mark for the first time in five months, closing at 40,150.79 points, a gain of 566.21 points from the previous day.

The recovery was attributed to easing concerns over U.S. tariff policies, improvements in Middle East geopolitical tensions, and positive investor sentiment towards Chinese-related stocks. Market participants also noted increased buying interest driven by a "vacuum zone" effect and expectations of expanded mergers and acquisitions in Japan. The rally extended into late June, with the Nikkei reaching an 11-month high above 40,800 points on June 30, buoyed by optimism over the U.S. economy and anticipation of early interest rate cuts. However, on July 1, the index reversed course, falling below the 40,000-point threshold amid profit-taking and renewed concerns over U.S.-Japan trade negotiations. The decline was exacerbated by U.S. President Donald Trump's threat to impose new tariffs on Japan, targeting sectors such as rice and automobiles. The Nikkei closed July 1 at 39,986 points, ending a five-day winning streak and reflecting the market's sensitivity to trade policy developments and geopolitical factors.

The Nikkei Stock Average experienced notable fluctuations between late June and early July 2025. On June 26, the index surpassed the 39,000 yen mark for the first time in approximately four months, driven by gains in U.S. high-tech stocks and semiconductor shares. The upward momentum continued, and by June 27, the Nikkei briefly climbed above 40,000 yen, reaching levels not seen since late January, marking a five-month high.

The index closed at 40,150 yen on June 27, up 566 yen from the previous day, setting a new annual high. This rally was supported by easing concerns over U.S. tariffs and Middle East geopolitical tensions, as well as positive global stock market trends. The Nikkei further extended gains, surpassing 40,700 yen by June 30 and reaching an 11-month high, bolstered by a Wall Street rally and increased risk appetite. However, on July 1 and 2, the index saw a sharp decline, dropping more than 500 yen amid renewed worries triggered by U.S. President Donald Trump's statements about raising tariffs on Japan above 30%. This caused a temporary breach below the 40,000 yen threshold. Following these declines, the market showed signs of recovery, with the Nikkei regaining the 40,000 yen level on July 4, supported by strong U.S. employment data and semiconductor stock purchases. Nevertheless, by July 7, the Tokyo stock market retreated again, closing down 223 yen amid heightened caution ahead of the looming U.S. tariff deadline and intensified tariff negotiation concerns.

Shares of Dixon Technologies rose as much as 4.5% to ₹14,954 on the National Stock Exchange on Friday after Nomura reiterated its Buy rating and raised its price target to ₹21,409, the highest forecast among brokerages covering the stock. The Japanese firm said Dixon is poised to capture a dominant share of India’s mobile electronics manufacturing-services market, helped by Original Design Manufacturing partnerships and growing export orders from brands such as Motorola.

Nomura projects Dixon’s smartphone production to climb to 45 million units in fiscal 2026 and 64 million in 2027, underpinned by tariff-driven shifts in global supply chains and the company’s capacity expansions. The brokerage flagged additional upside catalysts, including regulatory clearances for existing alliances and new customer wins.

The gain in Dixon extended a broader advance in Indian technology names. Coforge and HCL Technologies each added about 3% amid a rally in the Nasdaq and renewed expectations that the US Federal Reserve could cut interest rates sooner than previously anticipated. Despite Friday’s jump, Dixon shares remain roughly 20% lower for the year to date.

The Optron-Stavropol plant in Russia, a key supplier of microelectronics and power semiconductors for military equipment and import-substituted aircraft such as the Superjet, has ceased operations and is reportedly on the verge of bankruptcy. This facility was the only Russian enterprise producing semiconductors for military aircraft and import-substituted passenger airliners. The shutdown is linked to issues with the state defense order. Meanwhile, an investigation by Finnish media and Yle revealed that since the start of the conflict in February 2022, Russia has imported at least €1 billion worth of aircraft parts from Airbus and Boeing, circumventing Western sanctions through intermediaries in the UAE, Turkey, and China, with Dubai serving as a major transit hub. Additionally, a Finnish company is suspected of exporting sanctioned goods worth millions to Russia, with reports indicating a connection to the Russian military through the company official's family. Separately, a Finnish ice hockey player was reportedly detained, though details remain limited.

South Korea has established a task force to address tariff and non-tariff negotiations with the United States, according to the South Korean Ministry of Industry. This task force will coordinate closely with the private sector to manage trade discussions. The chief trade negotiator of South Korea is scheduled to visit the United States from June 22 to June 27 for high-level trade talks, marking the first such engagement under the administration of President Lee Jae-myung. Prior to this visit, South Korean and U.S. trade authorities have been working toward a comprehensive agreement on tariff issues, aiming to finalize it by July 8.

China has emerged as the leading external contributor to Russia’s drone campaign against Ukraine, according to a 19-June analysis by The Economist of debris from the 10 June strike on Kyiv. Almost 500 unmanned aircraft were launched that night, and investigators found Chinese-made antennas and other parts inside many of the wrecks. The magazine concludes that Beijing has “crossed the line into providing lethal aid,” enabling Moscow to maintain and potentially double the scale of future raids, a warning echoed by Ukrainian President Volodymyr Zelenskyy.

The revelations coincide with a New York Times report citing cybersecurity researchers and a leaked Russian Federal Security Service document that describe a parallel drive by Chinese state-linked hackers to penetrate Russian government agencies and defence contractors. Intrusions, which intensified in mid-2022, have targeted information on submarines, drones, satellite communications and electronic warfare. One operation, attributed to a group known as “Sanyo,” impersonated a major Russian engineering firm in an attempt to steal nuclear-submarine data. The FSB memo labels China an “enemy,” underscoring private Russian misgivings about its closest wartime partner.

Taken together, the findings depict a complex relationship in which Beijing simultaneously supplies hardware underpinning Russia’s assault on Ukraine while covertly harvesting Russian military know-how for its own strategic ends. Both Moscow and the Chinese embassy have declined to comment, and Beijing continues to deny providing lethal assistance to Russia.