Three Israeli hostages released by Hamas as ceasefire begins

Good morning and welcome back to FirstFT Asia. In today’s newsletter:

• Three Israeli hostages released as ceasefire begins

• TikTok comes back to life in the US

• Shanghai’s homegrown ‘western food’

Israel’s military said three hostages held in Gaza had been handed over to its forces and returned to Israeli territory, as a long-awaited hostage and prisoner exchange deal began yesterday after 15 months of brutal conflict.

Television footage appeared to show the three women entering a Red Cross vehicle in Gaza after exiting a pick-up truck, surrounded by a large crowd and dozens of masked and armed militants. Israel said the three were Romi Gonen, 24; Emily Damari, 28; and Doron Steinbrecher, 31; the first of dozens of captives due to be released.

The handover came hours after a six-week ceasefire between Israel and Hamas took effect, raising hopes of a pause — and potentially an end — to the bloodiest chapter in the decades-long history of the Israeli-Palestinian conflict.

As the fighting ended yesterday, Gazans took to the streets in celebration and began returning to the ruins of their homes, while in some cities, uniformed Hamas militants and police were seen after months of guerrilla war. In Israel, relatives of hostages and their supporters gathered in Tel Aviv to watch live broadcasts of the first returns.

Read more about the ceasefire’s first phase.

Here’s what else I’m keeping tabs on today:

• Donald Trump returns: After the new US president is sworn in, he is expected to sign about 100 executive actions.

• World Economic Forum: The annual gathering of global elites kicks off in the Alpine ski resort of Davos.

• Monetary policy: China makes its prime loan rate announcement.

• Country Garden: The struggling Chinese developer faces a winding-up hearing in Hong Kong court.

Five more top stories

1. TikTok said it was restoring access to the video app after President-elect Donald Trump vowed companies that distribute and host the platform would not be held liable for violating a US ban that came into effect yesterday. The platform temporarily went dark in the US ahead of yesterday’s deadline that required its Chinese owner ByteDance to sell the video app in order to avoid a ban.

2. Supporters of South Korea’s suspended president stormed a Seoul courthouse early yesterday morning after a judge extended Yoon Suk Yeol’s detention on charges of insurrection and abuse of power. Pro-Yoon supporters smashed windows and blasted fire extinguishers at officers guarding the courthouse before police reinforcements eventually took back control of the building.

3. The EU should encourage Chinese carmakers to open more plants in the bloc as part of a deal to drop punitive tariffs on imported Chinese electric vehicles, the boss of Mercedes-Benz has said. Ola Källenius said the approach could form part of a solution to the trade dispute between Brussels and Beijing.

4. European banks have threatened to pull out of the sector’s largest climate alliance unless it softens its rules, as executives on both sides of the Atlantic fret about the future of net zero collaboration ahead of Trump’s inauguration. US banks including JPMorgan, Citigroup and Goldman Sachs have already quit the Net Zero Banking Alliance.

5. Telefónica’s board has pushed out its long-standing chair José María Álvarez-Pallete in a dramatic move that follows the arrival of Saudi Arabia’s STC as a shareholder in the Spanish telecoms group. Álvarez-Pallete was replaced with defence executive Marc Murtra, with Telefónica citing the desire of some shareholders for a “new stage” in leadership.

News in-depth

South Korea’s worst political crisis in decades is playing out against a darkening economic backdrop. Policymakers are grappling with challenges ranging from a tumbling currency and weak consumer confidence to slowing job growth and intensifying competition from China. But the problems in Asia’s fourth-largest economy predate the current crisis, analysts said.

We’re also reading . . . 

• American ‘wolf warrior’ diplomacy: The precedent set by China’s aggressive promotion of its interests is not a promising one, writes Anne-Marie Slaughter.

• Greenland’s Arctic ghost towns: These empty villages stand as testaments to some of the more bitter experiences of colonisation and a motivator for Greenlanders’ desire for independence.

• Rich bosses: Wealthy managers are increasingly isolated from the less well-off at work and that’s not good news, writes Pilita Clark.

Chart of the day

China recorded its third consecutive year of population decline in 2024, despite the country’s first increase in births in almost a decade. Last year Chinese families marked the year of the dragon, believed to be an auspicious zodiac sign.

Take a break from the news . . . 

You can eat practically anything in Shanghai these days, from authentic Spanish tapas and Italian pizza. Yet locals have an enduring affection for their own “western food”, the legacy of dishes brought to the city by foreigners in the late 19th and early 20th centuries.