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By Nathan Vifflin and Toby Sterling (Reuters) -ASML, the world's biggest supplier of computer chip-making equipment, on Wednesday repeated it expects to benefit from booming investments in AI, but warned that it expected a significant fall in demand from China next year. Analysts said the lukewarm guidance, which said sales will be flat or better in 2026, may be upgraded in January. "It could have been a stronger message," Michael Roeg of Degroof Petercam said.  Net bookings, the most closely watched figure in the industry, were 5.40 billion euros ($6.27 billion) in the third quarter of 2025, versus analysts' consensus estimate of 5.36 billion euros, according to researcher Visible Alpha. The results came after a flurry of mega-deals between AI firms and chipmakers in September and October, all of which will mean more demand for chips, which make up around half of the cost of data centres.  CEO Christophe Fouquet said ASML, Europe's largest tech firm by market capitalization, is seeing "continued positive momentum around investments in AI," and that it was extending to more of its customers both in advanced logic chips such as those used in smartphones and AI datacenters, and advanced memory chips also needed for AI. ASML's lithography tools, which are essential for making the circuitry of chips, are sold to TSMC of Taiwan, which manufactures most AI chips for Nvidia and other logic firms such as SMIC of China and Intel of the U.S. It also serves memory chip makers Samsung  SK Hynix, and Micron, among others. Weak Chinese demand came as a surprise after it made up nearly a third of new ASML tool sales through the first nine months of 2025. "We expect China customer demand, and therefore our China total net sales in 2026 to decline significantly," Fouquet said. The company reported third-quarter net income of 2.12 billion euros in line with the 2.11 billion euros analysts expected, according to LSEG IBES data.   ($1 = 0.8607 euros) (Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk; Editing by Matt Scuffham and Kim Coghill)

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By Miho Uranaka and Sam Nussey TOKYO (Reuters) -Japanese e-commerce and finance heavyweight Rakuten is weighing an initial public offering in the United States of its credit card business, according to two sources familiar with the matter. Rakuten began considering a potential U.S. listing of one of Japan's largest credit card businesses last month, the sources said. The considerations are in the early stages, with other potential options including a stake sale to a strategic buyer, one of the sources said. One trigger for considering a U.S. IPO of Rakuten Card was rival SoftBank's plans to list app pay operator PayPay in the U.S., the source said. The sources declined to be named as the information is not public. The company's considerations of a U.S. IPO had not been reported previously. Rakuten did not respond to requests for comment. Mizuho Financial Group acquired a 15% stake in Rakuten Card for 165 billion yen ($1.1 billion) last year, valuing the business at more than 1 trillion yen, or $7 billion, with the two launching joint credit cards. For PayPay, institutional investors see a baseline valuation of 2 trillion yen, but expect the valuation could exceed 3 trillion yen in the IPO that could take place as early as December, Reuters reported this week. CARDS CENTRAL TO RAKUTEN'S BUSINESS Rakuten, which is led by founder and CEO Hiroshi Mikitani, shook up Japan's finance sector by simplifying the process for applying for credit cards and making them available to a wider range of consumers. Credit cards are an important part of a web of Rakuten businesses spanning online shopping, banking, travel and other services, with customers accruing loyalty reward points by making payments. Rakuten listed Rakuten Bank in Tokyo two years ago as the group reeled from heavy losses due to launching a mobile network. Rakuten also announced plans to list Rakuten Securities, but Mizuho injected funding by taking stakes in the brokerage and card businesses. Rakuten Card has issued more than 30 million credit cards in Japan. Non-GAAP operating profit at the business grew 20% to 62 billion yen last year but fell 4.5% in the April-June quarter of this year compared to the same period a year earlier due to higher costs. Rakuten Card aims to expand profit to 100 billion yen over the medium term and is looking to expand its business with corporate customers, its CEO Koichi Nakamura said in March. The IPO considerations come as companies around the world are looking to list in the U.S. as they seek higher valuations. The U.S. IPO market has had its busiest quarter since the fourth quarter of 2021, with companies raising $24 billion through first-time share sales in the third quarter, according to Dealogic. ($1 = 152.0900 yen) (Reporting by Miho Uranaka and Sam Nussey; Editing by Jamie Freed)

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(Reuters) -ASML, the world's biggest supplier of computer chip-making equipment, on Wednesday warned that it expected a significant fall in demand from China next year despite its third quarter bookings beating market forecasts. The Dutch group's net bookings, the most closely watched figure in the industry, were 5.40 billion euros ($6.27 billion)in the third quarter of 2025, versus analysts' consensus estimate of 5.36 billion euros according to researcher Visible Alpha. "We do not expect 2026 total net sales to be below 2025… On the other hand, we expect China customer demand, and therefore our China total net sales in 2026 to decline significantly." ASML's CEO Christophe Fouquet said in a statement. ASML said it will communicate its new targets in January. "A slight beat in bookings means there will be no sales decline in 2026, flat to growth", Michael Roeg of Degroof Petercam said. "It could have been a stronger message". ($1 = 0.8607 euros) (Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk; Editing by Matt Scuffham)

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By Joyce Lee SEOUL (Reuters) -China's sanctions against five U.S.-linked affiliates of South Korean shipbuilder Hanwha Ocean are seen as a warning gesture without immediate impact, and Beijing is unlikely to gain much by expanding them, analysts said on Wednesday. The move, announced on Tuesday when the U.S. and China began charging additional port fees targeting each other's vessels, comes ahead of an expected meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in late October to resolve the protracted trade war between the world's two largest economies. China's commerce ministry banned transactions and cooperation with Hanwha Ocean's U.S.-linked affiliates, citing security risks stemming from their involvement in the U.S. government's "relevant investigative activities." It did not elaborate on the suspected activities. Hanwha, one of the world's largest shipbuilders, owns Philly Shipyard in the U.S. and has won contracts to repair and overhaul U.S. Navy ships. Its entities also will build a U.S.-flagged LNG carrier. The sanctions do not have any direct impact as the Hanwha affiliates Beijing sanctioned have no business connection with China, said Korea Investment & Securities analyst Kang Kyung-tae.  "Stock prices had fallen due to various concerns that the sanctions will spread to … Korean parent companies and the entire Korean shipbuilding industry, but this is only a possibility," Kang said.  Shares of Hanwha Ocean rebounded 1.8% on Wednesday, while peer HD Hyundai Heavy shares rose 2.2%, recouping some of Tuesday's losses. Hanwha's Philly Shipyard builds ships meant for the U.S. market such as the 10 medium-range tankers Hanwha Shipping ordered in August, which are "geared for the Jones Act and are not using steel plates from China, but from the U.S., Canada and Mexico," said Daeshin Securities analyst Lee Jini.  Hanwha said on Tuesday it is closely monitoring the potential impact of the sanctions, and that it will continue to provide services to its customers, "including through our investments in the U.S. maritime industry and via Hanwha Philly Shipyard." CONCERNS OVER MORE SANCTIONS Investor sentiment remains jittery, as they fear China may target more South Korean shipbuilders cooperating with the U.S. South Korea pledged to inject as much as $150 billion to help the U.S. revive its troubled shipbuilding industry as part of its trade talks with Washington, which has said it needs help from allies Japan and South Korea to revitalise the sector, especially in turning out warships. China, however, is unlikely to expand sanctions due to its reliance on the South Korean shipbuilding industry, the world's second-largest, for steel exports and engine imports, analysts said.  "South Korean shipbuilding industry purchases some Chinese steel plates, about 20-30% of the total … If sanctions are expanded, the impact to Chinese steelmakers will be no less than that on Korean shipbuilders," said Daeshin's Lee.  While the heightened trade war between the U.S. and China may make shipowners delay commercial vessel orders, it could spark more global orders for naval ships, analysts said.  "The U.S.-China conflict will become a catalyst for more naval shipbuilding opportunities in countries around the world," said Shinhan Securities analyst Lee Dong-heon.  (Reporting by Joyce Lee; Editing by Miyoung Kim and Kim Coghill)

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