Dollar edges higher, currencies pull back on Omicron-shock moves

LONDON - The dollar edged higher, the euro fell and the yen steadied on Monday as currency markets reversed some of Friday's moves, calming after the initial shock of discovering a new coronavirus variant.

The Omicron variant, first detected in southern Africa, triggered global alarm, with financial markets selling off on Friday on fears that it would disrupt the economic recovery after the two-year pandemic.

The World Health Organization said it was not yet clear whether Omicron, which has been found around the world, is more transmissable than other variants or if it causes more severe disease.

Markets calmed somewhat on Monday, however, with US stock futures and oil prices rebounding, as investors took a more balanced view, waiting until the impact of the variant becomes more clear.

The US dollar index, which had its biggest one-day drop since May on Friday, edged back higher and at 0821 GMT was up 0.1 percent on the day at 96.326.

The dollar's status as a safe-haven currency means it can benefit from uncertainty, but it fell on Friday because the Omicron variant was seen as possibly affecting when the Federal Reserve and other major central banks will raise rates.

The euro, which rose versus the dollar on Friday, was down around 0.4 percent at $1.12665.

Commerzbank's head of FX and commodity research Ulrich Leuchtmann wrote in a client note that the euro had initially benefited from the Omicron variant because of the dovishness of the European Central Bank.

"If Omicron leads to lockdowns and a renewed reduction in economic activity on a global scale all rate hike expectations turn out to be in vain and then they will be priced out again pretty quickly," he said.

"And which currencies will be the relative winners? Of course, the ones where rate hikes were never priced in very much in the first place. And those were EUR, JPY and CHF."

Japan's yen steadied and was up around 0.2 percent on the day versus the dollar at 113.33 at 0829 GMT. Euro-yen hit a new nine-month low.

The Swiss franc likewise reversed recent moves. On Friday it had its biggest one-day jump versus the dollar since June 2016, a slightly bigger daily move than at the peak of the first coronavirus-induced market shock in March 2020, but on Monday it was down 0.4 percent on the day, at 0.9256.

Analysts said that currency markets would likely remain volatile until the new variant is better understood.

"Vaccine efficacy results with the next two weeks will be the most important headline to watch out for as well as whether symptoms are different from that of other variants," wrote Nomura analyst Jordan Rochester in a note to clients.

Goldman Sachs said it would not change its economic forecasts on the basis of the Omicron variant until its likely impact becomes clearer.

BioNTech said on Friday it may know within two weeks if the vaccine it developed with Pfizer needs to be reworked.

Meanwhile, in cryptocurrencies, bitcoin hit a seven-week low on Sunday before picking up. At 0837 GMT, it was at $57,386.24, up around 0.1 percent on the day but still below its latest all-time high of $69,000, which was hit earlier this month.

(Reporting by Elizabeth Howcroft, editing by Ed Osmond)

-reuters

Dollar slips, lacking momentum ahead of central bank meetings

LONDON - The dollar slipped on Tuesday but struggled to gain momentum, with most major currency pairs little changed as investors waited for major central bank meetings this week and next to indicate the direction of currency markets.

The Bank of Canada meets on Wednesday, then the Bank of Japan and European Central Bank meetings are on Thursday. Next week the Reserve Bank of Australia meets on Tuesday, the US Federal Reserve on Wednesday, and the Bank of England and Norges Bank on Thursday.

In equity markets there were signs of improved risk appetite due to strong earnings, with European stocks opening higher following a rally in the Asian session.

But the dollar index held steady, down 0.1 percent at 93.724 at 1132 GMT.

Simon Harvey, a currency analyst at Monex Europe, said that a flattening of the US yield curve also contributed to the dollar's downward move, by improving risk appetite.

The greenback rose 0.2 percent against the Japanese yen, with the pair at 113.930, holding below the four-year high of 114.695 reached last week.

The Bank of Japan is set to maintain its massive stimulus program and slash this year's inflation forecast in a sign it has no intention to follow other central banks that are preparing exits from crisis-mode policies.

The Canadian dollar was steady ahead of Wednesday's meeting, at which the central bank is expected to raise its inflation forecast and to largely end stimulus from its pandemic-era bond buying program, starting a tentative countdown to the first interest rate hike since October 2018.

The Australian dollar, seen as a liquid proxy for risk appetite, was up 0.3 percent at $0.75155. Last week, it rose above the key $0.75 level for the first time since July.

"If the rally on the commodity market continues, AUD is likely to remain supported for now," wrote Commerzbank strategist You-Na Park-Heger in a client note.

The New Zealand dollar was up 0.4 percent at $0.71895.

The euro was up 0.1% at $1.162. Expectations that the European Central Bank will take a dovish stance when it meets on Thursday have weakened the euro in recent sessions.

"We believe that there is a good chance that the ECB will push back against current market pricing for ECB rate hikes," wrote MUFG currency analyst Lee Hardman in a note to clients.

"The ECB's continued reluctance to raise rates should continue to weigh on the euro as other G10 central banks embark on hiking cycles."

ING strategists noted that, so far in 2021, energy-exporting currencies whose central banks are preparing to tighten - such as the Canadian dollar or Norwegian crown - have outperformed.

"The worst performers in the G10 space are the JPY and the EUR, both net energy importers, suffering the negative income shock from higher energy prices and with some of the most dovish central banks in the world," they wrote in a note to clients.

"Low energy inventories for both gas and crude and no signs that supply frictions are going to be eased anytime soon suggests this story should continue to play out."

China's offshore yuan was a touch stronger against the dollar, with the pair changing hands at 6.3771.

A call between China's Vice Premier Liu He and US Treasury Secretary Janet Yellen was seen as positive for Sino-US relations.

Bitcoin was down around 0.6 percent at $62,742.65 at 1138 GMT, having fallen below the all-time high of $67,016.50 it reached last week.

(Reporting by Elizabeth Howcroft; editing by John Stonestreet and Angus MacSwan)

-reuters-

Turkish lira hits another historic low amid pandemic

LONDON (AP) — Turkey’s currency tumbled further Friday, hitting another record low.

The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19% versus the U.S. currency since the beginning of the year. It was trading around 7.17 on Friday afternoon.

The drop is fueled by high inflation, a wide current account deficit and the Turkish government’s push for cheap credit to drive an economy that was already fragile before the COVID-19 pandemic hit.

Analysts have expressed concerns over the level of Turkey’s reserves and Turkish President Recep Tayyip Erdogan’s aversion to high interest rates.

Turkey had been hoping for an influx of foreign currency through exports and tourism revenues, but the pandemic has sharply undermined the tourism industry and disrupted global commerce.

Speaking after Friday prayers at the recently reconverted Hagia Sophia mosque in Istanbul, Erdogan said “there are serious zigzags in the global economy after the pandemic.”

He added: “I believe the Turkish lira will fall into place ... these are temporary fluctuations.”

AP

Stock markets mixed as China-US tensions return to fore

Equities were mixed Wednesday as profit-taking and worries about deteriorating China-US relations were weighed against optimism over the gradual reopening of economies around the world.

Hong Kong extended losses as police fired pepper-ball rounds as anti-China protesters took to the city's streets, with investors fearing the demonstrations could erupt into the worst unrest since last summer.

The broad trend across global markets has been upward for weeks as virus deaths and infections ease in most countries and governments begin to reopen their battered economies, fanning hopes for a recovery in the second half of the year.

Confidence has also come from mind-boggling amounts of stimulus and central bank pledges of support, with the latest coming from the eurozone, where European Commission President Ursula von der Leyen is due to unveil a trillion-euro revival plan for the bloc.

However, there was little fresh desire for risk assets with eyes on the simmering row between the world's top two economies, fuelled by Donald Trump's barracking of China over its role in the pandemic, and made worse this week by Beijing looking to tighten its grip on Hong Kong.

The financial hub was thrown back into the spotlight Friday when Chinese officials proposed a controversial security law that many fear could ring the death knell for the city.

And Trump appeared to agree, with his press secretary Kayleigh McEnany telling a briefing he had said it is "hard to see how Hong Kong can remain a financial hub if China takes over".

Washington has already said it could terminate its preferential trading status over the issue.

Markets are also fretting over reports that the US has warned it will impose sanctions on Chinese entities and officials if it goes ahead with the law.

While China and Hong Kong leader Carrie Lam have sought to ease worries about the extent of the law plans, Jeffrey Halley at OANDA warned that no matter how they try to dress it up "the passage of the security legislation from Beijing will have consequences for the beleaguered (city) and will further darken relations between the US and China."

Concerns about the growing crisis have weighed on the yuan, losing almost three percent this year, with observers suggesting it could hit a record low.

- Hong Kong protest worries -

Meanwhile, there are concerns about another flare-up in the city as lawmakers prepare to discuss a law that bans insulting China's national anthem.

Seven months of sometimes violent demonstrations last year hammered the local economy and raised questions about its future.

Hong Kong fell 0.4 percent, Shanghai lost 0.3 percent and Sydney fell 0.1 percent, while Kuala Lumpur dropped more than one percent as Malaysia struggled to contain its virus. There were also losses in Jakarta, Bangkok and Singapore.

But Tokyo, Mumbai, Manila, Seoul, Taipei and Wellington saw gains.

In early trade, London, Paris and Frankfurt were all higher. The gains in Paris as dealers brushed off a warning from officials that France's economy could contract 20 percent in the second quarter.

Still, National Australia Bank's Tapas Strickland, said in a note: "Risk sentiment continues to surge as activity lifts following the gradual easing of containment restrictions around the world, while vaccine hopes remain high with 10 different vaccines currently at the human trial stage."

He also cited comments from Federal Reserve official James Bullard that the third quarter "very likely, right behind the worst quarter, will be the best quarter of all time on the growth perspective".

Wall Street, where the New York Stock Exchange trading floor reopened after two months of closure, finished higher, with the Dow gaining 2.2 percent.

Oil markets slipped on China-US tensions, and after reports said Russia could begin easing up on its supply cuts in July.

Massive reductions by Moscow and other major producers including Saudi Arabia have helped fuel a surge in prices over the past month, with WTI doubling since the end of April.

But analysts said the commodity will likely continue to win support from the easing of lockdowns, which is expected to boost demand as people get back on the road.

- Key figures at around 0810 GMT -

Tokyo - Nikkei 225: UP 0.7 at 21,419.23 (close)

Hong Kong - Hang Seng: DOWN 0.4 percent at 23,301.36 (close)

Shanghai - Composite: DOWN 0.3 percent at 2,836.80 (close)

London - FTSE 100: UP 0.7 percent at 6,112.97

Euro/dollar: DOWN at $1.0954 from $1.0984 at 2040 GMT Friday

Dollar/yen: UP at 107.51 yen from 107.54 yen

Pound/dollar: DOWN at $1.2292 from $1.2335

Euro/pound: DOWN at 89.11 pence from 89.04 pence

West Texas Intermediate: DOWN 2.3 percent at $33.55 per barrel

Brent North Sea crude: DOWN 2.2 percent at $35.37 per barrel

New York - Dow: UP 2.2 percent at 24,995.11 (close)

Agence France-Presse

Asian markets gain as China closes down for Lunar New Year

BANGKOK — Shares were mostly higher in quiet trading on Friday in Asia as China began a week-long Lunar New Year festival that is being overshadowed by the outbreak of a new virus that has killed 25 people and sickened more than 800.

Japan’s Nikkei 225 index rose less than 0.1% to 23,811.54 and in Hong Kong the Hang Seng gained 0.2% to 27,949.64.


Australia’s S&P ASX/200 picked up 0.2% to 7,100.30 and the Sensex in India also rose 0.2%, to 41,473.97.

Markets were closed in Shanghai and the rest of mainland China, South Korea, Malaysia and Taiwan.

As authorities confirmed more cases of the new virus first reported in the central Chinese city of Wuhan, investors continued to monitor developments in the international effort to keep it from spreading further and potentially harming the global economy.

The World Health Organization decided Thursday against declaring the outbreak a global emergency for now.

Such a declaration could increase resources for battling the outbreak but also result in trade and travel restrictions and other economic damage.

Fears that the coronavirus could spread have weighed on global markets this week, driving up demand for U.S. government bonds and safe-play stocks.

Market “traders are weighing the anticipated China growth fallout against the backdrop of the current global growth recovery. While the calculus is not coming up roses, it’s far from a state of global market panic,” Stephen Innes of AxiCorp said in a commentary.

“Still, if risk aversion starts to spread beyond China’s borders and starts to affect more than the usual suspect’s luxury, travel, and tourism, then we will likely see a more significant dive in the broader global indices,” he said.

Major U.S. stock indexes closed mostly higher Thursday, as gains in technology and industrial companies offset declines elsewhere in the market.


The S&P 500 notched a small gain for the second straight day, climbing 0.1% to 3,325.54, while a modest pickup nudged the Nasdaq composite to an all-time high of 9,402.48, up 0.2%.

The Dow Jones Industrial Average edged 0.1% lower to 29,160.09, its third straight day of losses as the benchmark was weighed down by a steep drop in shares of Travelers Cos.

The Russell 2000 index of smaller company stocks rose less than 0.1%, to 1,685.01.

Traders also had their eye on a mixed batch of company earnings reports, including encouraging quarterly results from American Airlines and Citrix Systems, and disappointing report cards from Travelers and Raymond James Financial.

“Today was driven a bit by earnings, but also by the coronavirus fears,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Asian markets had a really tough night and that was our lead-in, that put a bit of extra pressure on the market coming in.”
Excluding the Nasdaq, the major U.S. stock indexes are on track to end the week with a loss.

Bond prices rose, pulling the yield on the 10-year Treasury lower to 1.73% from 1.77% late Wednesday.

Benchmark crude oil gained 14 cents to $55.73 per barrel in electronic trading on the New York Mercantile Exchange. It fell $1.15 to settle at $55.59 a barrel on Thursday. Brent crude oil, the international standard, picked up 18 cents to $62.22 per barrel. It dropped $1.17 to close at $62.04 a barrel overnight.

Gold fell back, losing $4.30 to $1,561.10. Silver shed 3 cents to $17.80 per ounce and copper fell 4 cents to $2.73 per pound.
The dollar rose to 109.52 Japanese yen from 109.49 yen on Thursday. The euro weakened to $1.1053 from $1.1056.

source: business.inquirer.net

Asian shares mixed amid uncertainties on Brexit, China trade

TOKYO –  Asian shares were mixed Monday amid uncertainties about Britain’s exit from the European Union and the ongoing trade conflict between the U.S. and China

Japan’s benchmark Nikkei 225 gained nearly 0.3% in early trading to 22,548.07. South Korea’s Kospi picked up 0.2% to 2,065.68, while Hong Kong’s Hang Seng added 0.2% to 26,778.99. The S&P/ASX 200 in Australia lost 0.1% to 6,640.40, while the Shanghai Composite slipped 0.1% to 2,934.30.

Shares fell in Taiwan and were mixed in Southeast Asia.

British Prime Minister Boris Johnson is trying to win over rebellious lawmakers in time to meet the Oct. 31 Brexit deadline for the UK’s exit from the 28-nation European Union.

A vote over the weekend ended with an amendment that delays the proposed deal, leaving the situation uncertain. And EU officials have not yet responded to Johnson’s reluctant request for an extension of the month’s end deadline.

“The can is not kicked far down the road with UK Prime Minister Boris Johnson expected to seek a new ‘meaningful vote’ on his deal as soon as Monday with the countdown to the Brexit deadline,” Jingyi Pan of IG said in a commentary.


Meanwhile, Japan reported that its exports fell 5.2% from a year earlier in September while imports slipped 1.5%. The resulting deficit of 123 billion yen ($1.1 billion) reflected weak exports to China, South Korea and other Asian countries, customs data showed.

The mixed performance to start the week is a continuation of the wobbles that ended last week, when the S&P 500 index logged its second straight weekly gain even though stock indexes ended lower on Friday.

Technology companies led the slide, which erased the major U.S. indexes’ gains from the day before. Communication services, industrials and health care stocks also fell, outweighing gains in real estate companies, banks and elsewhere in the market.

Investors are focusing on company earnings reports, searching for a clearer picture on the impact that the trade war between the U.S. and China is having on corporate profits and the broader economy.

The S&P 500 index fell 0.4% to 2,986.20. The index is just 1.3% below its all-time high set in late July.

The Dow Jones Industrial Average dropped 1% to 26,770.20 and the Nasdaq lost 0.8%, to 8,089.54. The Russell 2000 index of smaller stocks gave up 0.4% to 1,535.48.

Uncertainty over the standoff between Beijing and Washington has been roiling markets. Negotiators reached a truce last week that kept the conflict over trade and technology from escalating further, but both sides still have many issues to work out before reaching a substantive deal.

ENERGY: Benchmark crude oil dipped 10 cents to $53.68 a barrel in electronic trading on the New York Mercantile Exchange. It fell 15 cents to $53.78 a barrel Friday. Brent crude oil, the international standard, dropped 20 cents to $59.22 a barrel.

CURRENCIES: The dollar rose to 108.50 Japanese yen from 108.38 yen on Friday. The euro slipped to $1.1158 from $1.1174./gsg

source: business.inquirer.net

Asian shares mostly higher as investors look ahead to Fed

TOKYO – Asian shares were mostly higher Monday amid a wait-and-see attitude about the direction of interest rates and the trade dispute between the U.S. and China.

Japan’s benchmark Nikkei 225 gained 0.3% to 21,170.63 in morning trading.

Australia’s S&P/ASX 200 lost 0.3% to 6,535.50, while South Korea’s Kospi edged up nearly 0.2% to 2,099.26.

Hong Kong’s Hang Seng gained 1.2% to 27,447.42, while the Shanghai Composite was up 0.2% at 2,888.58.

On Wall Street, stocks ended a choppy week of trading with modest losses.

The S&P 500 index fell 4.66 points, or 0.2%, to 2,886.98 Friday and ended the week with a slim gain of 0.5%.

The Dow Jones Industrial Average dropped 17.16 points, or 0.1%, to 26,089.61.

The Nasdaq composite slid 40.47 points, or 0.5%, to 7,796.66.

The Russell 2000 index of small company stocks dropped 13.30 points, or 0.9%, to 1,522.50.

Earlier this month, Federal Reserve Chair Jerome Powell set off a market rally after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to slow economic growth.

The Fed holds its next meeting of policyholders this week, but no action on rates is expected.

Economists expect Fed officials to wait until the second week of July to indicate whether they intend to cut rates, after seeing the next government report on the jobs market and other economic data.

Market watchers are also closely watching the results of the G-20 summit in late June, where President Donald Trump and Chinese President Xi Jinping could meet and try to negotiate a deal on trade.

“Sentiments around the ability to achieve a positive turn in U.S.-China trade negotiations, should the Trump-Xi meeting materialize at the sidelines of the G-20, remain tentative,” says Vishnu Varathan of Mizuho Bank in Singapore.

“And the G-20 itself is merely a stage to kick the can down the road and a long, long way off a complete retraction of global trade tensions.”

ENERGY:

Benchmark crude oil added 15 cents to $52.66 a barrel. It rose 0.4% to settle at $52.51 a barrel Friday. Brent crude oil, the international standard, added 29 cents to $62.30 a barrel.

CURRENCIES:

The dollar rose to 108.57 Japanese yen from 108.23 yen on Friday. The euro weakened to $1.1222 from $1.1263. /gsg

source: business.inquirer.net

Asian shares mixed on jitters over Hong Kong protests

SINGAPORE – Asian stocks were mixed on Thursday as protesters in Hong Kong vowed to keep opposing a proposed extradition bill they fear would whittle down the Chinese territory’s legal autonomy.

The protests threaten to shake confidence in the hub for many regional and international businesses and investors.

Hong Kong’s Hang Seng gave up 0.5% to 27,163.46, extending its losses after closing down 1.7% on Wednesday.

The Shanghai Composite index added 0.1% to 2,912.47 while South Korea’s Kospi lost 0.8% to 2,092.11.

Japan’s Nikkei 225 index lost 0.8% to 20,958.25.

Australia’s S&P ASX 200 picked up 0.1% to 6,550.10 after the release of better-than-expected jobs data.

Shares fell in Taiwan and throughout Southeast Asia.

On Wednesday, thousands of protesters clashed with police and were confronted with rounds of tear gas as they demonstrated on the streets of Hong Kong.

At least 72 people were brought to hospitals, with two in serious condition, the Hong Kong Hospital Authority said.

They obstructed the flow of traffic and delayed a debate on a bill that would allow criminal suspects in Hong Kong to be sent for trial in mainland China.

“The Hong Kong crisis could continue to escalate in the coming days and should weigh on risk appetite. Trade deal updates could fall to the second page of papers, but eventually we could see Chinese politics blend together,” Edward Moya of OANDA said in a market commentary.

President Donald Trump has said he expects to meet Chinese leader Xi Jinping at the Group of 20 summit in Osaka later this month.

But he said he’s prepared to expand existing tariffs if a deal with Beijing falls through. Representatives from both countries have had 11 rounds of trade talks but have yet to ink an agreement.

Wall Street suffered its second straight loss on Wednesday as bank and technology companies slid. Investors were worried that a trade dispute between the world’s two largest economies would drag on for longer than expected.

The S&P 500 index eased 0.2% to 2,879.84 and the Dow Jones Industrial Average also fell 0.2% to 26,004.83. The tech-heavy Nasdaq composite dropped 0.4% to 7,792.72. The Russell 2000 index of smaller company stocks edged up less than 0.1% to 1,519.79.

ENERGY: Benchmark U.S. crude lost 9 cents to $51.05 per barrel in electronic trading on the New York Mercantile Exchange. It shed $2.13 to $51.14 per barrel on Wednesday. Brent crude oil, the international standard, fell 7 cents to $59.90 per barrel. The contract lost $2.32 to $59.97 per barrel in the previous session.

CURRENCIES: The dollar slipped to 108.32 Japanese yen from 108.50 yen late Wednesday. The euro rose to $1.1293 from $1.1288. /gg

source: business.inquirer.net

World shares extend losses ahead of US economic growth data

BANGKOK – Shares edged lower in Europe on Friday following a lackluster day in Asia ahead of the release of U.S. economic growth data later in the day.

Benchmarks fell Friday in Paris, London, Tokyo and Shanghai but rose in Hong Kong and Sydney.


Economists have been upgrading their estimates, with many forecasting that GDP expanded at an annual rate of close to 3% in the first three months of the year. That would be up a full percentage point from previous estimates.

Germany’s DAX was nearly unchanged early Friday at 12,280.80 while the CAC40 in Paris lost 2.33 points to 5,555.34.

Britain’s FTSE 100 fell 0.3% to 7,411.37.

Wall Street looked set for a weak open, with the future contract for the Dow down 0.1% and that for the S&P 500 also off 0.1%.

In Asian trading, concern that China may temper its economic stimulus pulled benchmarks lower for a second straight day.

The Shanghai Composite index fell 1.2% to 3,086.40 while Japan’s Nikkei 225 index slipped 0.2% to 22,258.73.

South Korea’s Kospi declined 0.5% to 2,179.31. Australia’s S&P ASX 200 edged 0.1% higher to 6,385.60, while the Hang Seng in Hong Kong added 0.2% to 29,605.01.

India’s Sensex jumped 0.9% to 39,066.97.

Shares fell in Taiwan, Singapore, Malaysia and Thailand but rose in Jakarta.

China-U.S. trade talks are again on the agenda, for next week in Beijing, with further talks in Washington slated for May 8.

President Donald Trump has said his Chinese counterpart, Xi Jinping, might be visiting the White House soon, but the timing remained unclear. Progress on a deal resolving a conflict over Beijing’s technology policies that has involved billions of dollars in tariffs being imposed on each other’s products would reassure investors who have been rattled by the uncertainty.

In the U.S., earnings reporting season is about a third of the way in, and investors are searching for clues about whether profit growth can accelerate later this year following a weak first quarter.

Analysts are forecasting a drop of 2.8% in earnings for S&P 500 companies this time around, not as bad as the 4% decline they were expecting a few weeks ago.

ENERGY: Benchmark U.S. crude gave up $1.07 to $64.14 per barrel in electronic trading on the New York Mercantile Exchange. It lost 68 cents to $65.21 per barrel on Thursday. Brent crude, the international standard, plunged $1.20 to $72.43 per barrel.

CURRENCIES: The dollar was trading at 111.74 Japanese yen, up from 111.63 yen on Thursday. The euro rose to $1.1141 from $1.1333.  /gsg

source: business.inquirer.net

Asian shares fall as Fed minutes show data may tweak stance

SINGAPORE (AP) – Asian markets were mostly lower on Thursday after the U.S. Federal Reserve released minutes of its meeting in March.

While most officials believed the central bank would leave interest rates unchanged for the rest of the year, several said their views could shift with incoming data.


Hong Kong’s Hang Seng gave up 0.6% to 29,929.66 and the Shanghai Composite index fell 0.8% to 3,215.79.

The Kospi in South Korea was flat at 2,224.44. Australia’s S&P ASX 200 slid 0.4% to 6,198.70.

Japan’s benchmark Nikkei 225 bucked the regional trend, adding 0.1% to 21,711.38. Shares fell in Taiwan, Thailand and Indonesia but rose in Singapore.

The Federal Open Market Committee released minutes from a meeting in March on Wednesday.

There were no major surprises. It showed that most officials believed that the central bank would leave its key policy rate unchanged for the rest of the year.

This was in line with the outcome of the March 19-20 meeting, where the Fed trimmed its 2019 rate hikes outlook from two to none.

In the minutes, several Fed officials also said that they may feel differently, depending on the data that surfaces.

Weaker growth and lower inflation expectations could prompt the Fed to cut rates, while stronger growth and rising inflation expectations could warrant a rate hike.

An indication of flexibility caused Asian markets to open in a “slightly soft mood,” said Selena Ling, chief economist at OCBC Bank.


“The FOMC minutes suggested that rates could head in either direction from here, but members generally favor being patient for the remainder of the year,” she added in an interview.

China reported inflation figures in March on Thursday that met market expectations. The country’s producer price index rose 0.4% in March from a year ago, according to National Bureau of Statistics.

This was up from February’s 0.1% increase. Its consumer price index picked up 2.3% in March from a year earlier, as compared to a 1.5% gain in the previous month.

Over on Wall Street, strong gains by technology companies and small-company stocks lifted indexes, while utilities lagged.

The broad S&P 500 index climbed 0.3% to 2,888.21. The Dow Jones Industrial Average was less than 0.1% higher at 26,157.16 and the Nasdaq composite jumped 0.7% to 7,964.24. The Russell 2000 index of smaller-company stocks rebounded 1.4% to 1,581.55.

ENERGY: Benchmark U.S. crude dropped 32 cents to $64.29 per barrel. It added 63 cents to settle at $64.61 per barrel on Wednesday. Brent crude shed 28 cents to $71.45 per barrel. The contract gained $1.12 to $71.73 per barrel in London.

CURRENCIES: The dollar strengthened to 111.11 yen from 111 yen late Wednesday. The euro rose to $1.1276 from $1.1273. /gsg

source: business.inquirer.net

Asian shares sink, tracking Friday’s retreat on Wall Street

BANGKOK — Shares tumbled in Asia on Monday after Wall Street ended last week with a broad retreat, while Thailand’s market saw a moderate loss following a general election that appeared likely to keep the incumbent, junta-backed prime minister in power.

Japan’s Nikkei 225 stock index tumbled 3.2 percent to 20,930.27, while the Shanghai Composite index declined 1.1 percent to 3,072.06.


The Hang Seng in Hong Kong lost 1.8 percent to 28,583.60 and South Korea’s Kospi declined 1.7 percent to 2,149.39.

The S&P ASX 200 gave up 1.2 percent to 6,120.60.

Investors are awaiting China-U.S. trade talks that are due to resume Thursday in Beijing.

Thailand’s SET dropped 0.9 percent after a military-backed party won the most votes in the country’s first election since a 2014 coup after tilting the electoral system in its favor.

The outcome is likely to add to nearly two decades of political instability in Thailand.

The preliminary results raise the likelihood that Prayut Chan-ocha, will stay on as prime minister with backing from a coalition.

“However, the transition to the new government may not be smooth,” Sian Fenner of Oxford Economics said in a commentary.

“It is unlikely that any party will win a clear majority and potential friction between political parties and the military could lead to economic activity being significantly disrupted,” Fenner said.

Shares also were lower across the rest of Southeast Asia and India’s Sensex fell 0.9 percent to 37,820.15.

Wall Street was roiled Friday by new signs that global economic growth is slowing.

The jitters triggered a sell-off in stocks and sent bond yields sharply lower, flashing a possible recession warning.

The wave of selling knocked 460 points off the Dow Jones Industrial Average and gave the benchmark S&P 500 index its worst day since Jan. 3.

The Russell 2000 index of smaller company stocks fell more than the rest of the market as traders offloaded risker assets.

The S&P 500 index dropped 1.9 percent to 2,800.71 and the Dow Jones Industrial Average gave up 1.8 percent to 25,502.32.

The Nasdaq composite, which is heavily weighted with technology stocks, slid 2.5 percent to 7,642.67. The Russell 2000 lost 3.6 percent, to 1,505.92.

Worried investors shifted money into bonds, which sent yields much lower. The yield on the 10-year Treasury dropped to 2.43 percent from 2.54 percent late Thursday, a big move.

The slide in bond yields hurt bank stocks which, along with technology companies, accounted for much of the broad decline in stocks. The utilities sector was the only one to eke out a gain.

Factory production in the euro currency alliance fell at its steepest rate in about six years, according to surveys of manufacturers’ purchasing managers.

ENERGY: Energy futures continued their slide. Benchmark U.S. crude oil slid 51 cents to $58.53 per barrel in electronic trading on the New York Mercantile Exchange. It lost 1.6 percent to settle at $59.04 a barrel on Friday. Brent crude shed 48 cents to $66.55 per barrel. It fell 1.2 percent to close at $67.03 a barrel on Friday.

Wall Street was roiled Friday by new signs that global economic growth is slowing.

The jitters triggered a sell-off in stocks and sent bond yields sharply lower, flashing a possible recession warning.

The wave of selling knocked 460 points off the Dow Jones Industrial Average and gave the benchmark S&P 500 index its worst day since Jan. 3.

The Russell 2000 index of smaller company stocks fell more than the rest of the market as traders offloaded risker assets.

The S&P 500 index dropped 1.9 percent to 2,800.71 and the Dow Jones Industrial Average gave up 1.8 percent to 25,502.32.

The Nasdaq composite, which is heavily weighted with technology stocks, slid 2.5 percent to 7,642.67. The Russell 2000 lost 3.6 percent, to 1,505.92.

Worried investors shifted money into bonds, which sent yields much lower. The yield on the 10-year Treasury dropped to 2.43 percent from 2.54 percent late Thursday, a big move.

The slide in bond yields hurt bank stocks which, along with technology companies, accounted for much of the broad decline in stocks. The utilities sector was the only one to eke out a gain.

Factory production in the euro currency alliance fell at its steepest rate in about six years, according to surveys of manufacturers’ purchasing managers.

ENERGY: Energy futures continued their slide. Benchmark U.S. crude oil slid 51 cents to $58.53 per barrel in electronic trading on the New York Mercantile Exchange. It lost 1.6 percent to settle at $59.04 a barrel on Friday. Brent crude shed 48 cents to $66.55 per barrel. It fell 1.2 percent to close at $67.03 a barrel on Friday.

CURRENCIES: The dollar was lower against the Japanese yen, at 109.85 yen, down from 109.91 yen on Friday. The euro was little changed at $1.1301, down from $1.1303./gsg

source: business.inquirer.net

Asian shares waver as China, US begin trade negotiations

SINGAPORE  — Asian stocks were mixed in narrow trading on Thursday as China and the U.S. kicked off two days of trade negotiations in Beijing. Regional indexes have advanced for three straight days on hopes that both sides will make headway on big issues like Beijing’s technology policy.

Hong Kong’s Hang Seng edged 0.2 percent lower to 28,433.04. Australia’s S&P/ASX 200 shed 0.1 percent to 6,059.40 while the Kospi in South Korea rebounded 1.1 percent to 2,225.85. The Shanghai Composite index inched 0.1 percent higher to 2,724.20.


Japan’s benchmark Nikkei 225 finished almost flat at 21,139.71, despite preliminary data showing that its economy grew by 1.4 percent in 2018’s fourth quarter, helped by strong domestic demand. This was a vast improvement from a broad contraction in the previous quarter. Shares were flat in Taiwan but rose in Singapore, Thailand and the Philippines.

“For Asia markets, the exhaustion of the positive sentiment that powered U.S. markets overnight looks to invite the region to tread water in the session,” Jingyi Pan of IG said in a commentary.

China-U.S. trade talks under way in Beijing have spurred trading on hopes that the two sides might resolve their dispute before the U.S. raises tariffs on $200 billion in Chinese goods as of March 2.

Trump has hinted that he might hold off on these tariffs if enough progress was made at the talks. On Wednesday, he told reporters discussions were “going along very well”.

On Thursday, China said its exports expanded 9.1 percent in January from a year earlier to $217.6 billion, reversing a decline in December. But its exports to the United States fell 2.4 percent to $36.4 billion and imports from the U.S. plunged 41.2 percent to $9.2 billion. The country’s overall imports dropped 1.5 percent to 178.4 billion.

WALL STREET: U.S stocks edged higher on hopes that negotiators will come close to a deal after trade talks. Energy companies, retailers and industrial stocks climbed. The S&P 500 added 0.3 percent to 2,753.03 and the Dow Jones Industrial Average gained 0.5 percent to 25,543.27. The Nasdaq composite rose 0.1 percent to 7,420.38. The Russell 2000 index of smaller company stocks gained 0.3 percent to 1,542.94.

ENERGY: U.S. crude rose 41 cents to $54.31 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 80 cents to settle at $53.90 per barrel in New York. Brent crude, used to price international oils, gained 58 cents to $64.19 per barrel. It added $1.19 close at $63.61 per barrel in London.

CURRENCIES: The dollar rose to 111.12 yen from 110.98 yen late Wednesday. The euro strengthened to $1.1284 from $1.1261. /gsg

source: newsinfo.inquirer.net

Asian shares mostly higher with all eyes on Trump-Kim summit

TOKYO — Asian shares were mostly higher Tuesday as market players tried to digest the summit between President Donald Trump and North Korean leader Kim Jong Un in Singapore.

KEEPING SCORE: Japan’s benchmark Nikkei 225 was up 0.3 percent to finish at 22,878.35. Australia’s S&P/ASX 200 was up 0.2 percent at 6,054.40. South Korea’s Kospi fell 0.5 percent to 2,468.88 after fluctuating earlier in the day. Hong Kong’s Hang Seng’s rose 0.4 percent to 31,181.78, while the Shanghai Composite index added 0.9 percent to 3,079.36.

WALL STREET: The Dow Jones industrial average rose 5.78 points, or less than 0.1 percent, to 25,322.31. The Standard & Poor’s 500 index rose 2.97 points, or 0.1 percent, to 2,782.00 and the Nasdaq composite rose 14.41 points, or 0.2 percent, to 7,659.93.



SUMMIT WATCH: Trump and Kim concluded their summit by signing a joint document in which they committed to working “toward complete denuclearization of the Korean Peninsula” and to joining together “to build a lasting and stable peace regime” on the Korean Peninsula. The broad promises largely reiterated past agreements and included a commitment to “establish new U.S.-DPRK relations” but not an agreement to end the technical state of war.

CENTRAL BANKS: The Federal Reserve will start a two-day meeting on interest rates on Tuesday, wrapping up on Wednesday. Investors expect the nation’s central bank to raise interest rates from their current level of 1.75 percent to 2 percent, but most attention will be on how many rate hikes Fed officials are considering doing later this year. On Friday, the Bank of Japan is due to give its latest policy update.

ANALYST’S TAKE: “Deal or no deal? Just don’t ask what comprises a ‘deal’ and we are fine. At the risk of sounding a tad frivolous, that appears to be the truth of the matter,” said Vishnu Varathan of Mizuho Bank in Singapore of the Trump-Kim summit.

ENERGY: Benchmark U.S. crude rose 33 cents to $66.43 a barrel. It was up 36 cents to $66.10 per barrel Monday in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, added 26 cents to $76.72 per barrel in London.

CURRENCIES: The dollar rose to 110.36 yen from 109.48 yen late Monday in Asia. The euro fell to $1.1766 from $1.1799.

source: business.inquirer.net

Stock market rally fades ahead of US holiday

BEIJING  — The rally in global stock markets, which saw the Dow close above 19,000 for the first time, petered out on Wednesday as investors prepared for a holiday in the U.S.

KEEPING SCORE: Britain’s FTSE 100 rose 0.3 percent to 6,636 while Germany’s DAX shed 0.6 percent to 10,655. France’s CAC 40 dropped 0.4 percent to 4,529. On Wall Street, the futures for the Dow Jones industrial average and the Standard & Poor’s 500 index were both unchanged, a day after the Dow closed above the 19,000 mark for the first time. The U. S. markets will be closed Thursday for Thanksgiving holiday.

WALL STREET: U.S. markets have been the focus since the election of Donald Trump as U.S. president, which many investors bet will be positive for companies. They expect less regulation of financial services and possibly tax cuts as well as spending on infrastructure. He has affirmed plans to withdraw from the Trans-Pacific Partnership but avoided mentioning his campaign pledge to build a wall along the Mexican border. “As Trump has rowed back and not mentioned some of his more extreme policy sound bites, some worries about the nature of his presidency may have begun to abate,” Alex Furber of CMC Markets said in a report. That has helped U.S. indexes hit record highs, with the Dow surpassing 19,000 for the first time and closing at a record high six times in the two weeks.

ANALYST’S TAKE: “The bulls have got control here,” Chris Weston of IG said in a report. “U.S. equity and many other developed markets are going higher, at least in the short-term.” Weston noted investors assume the U.S. Federal Reserve will go ahead with an interest rate hike in December. “Emerging markets have found support and are even attracting buyers,” said Weston. “If the Fed were to assess financial conditions in the wake of a potential rate hike they would be wholly enthused.”

ASIA’S DAY: Sydney’s S&P-ASX 200 rose 1.3 percent to 5,484.40 and Seoul’s Kospi advanced 0.2 percent to 1,987.95. India’s Sensex gained 0.5 percent to 26,081.22 and Hong Kong’s Hang Seng ended unchanged at 22,676.69. The Shanghai Composite Index shed 0.2 percent to 3,241.14. Japanese markets were closed for a holiday. Benchmarks in New Zealand and Taiwan gained while Indonesia retreated.

ENERGY: Benchmark U.S. crude fell 16 cents to $47.87 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 21 cents on Tuesday. Brent crude, used to price international oils, shed 12 cents to $49.00 in London. The contract added 22 cents the previous session.

CURRENCY: The dollar was roughly steady at 111.21 yen while the euro fell to $1.0615 from Tuesday’s $1.0630. TVJ

source: business.inquirer.net

Mexico’s peso plummets to new low on Trump effect

MEXICO CITY—The Mexican peso endured one of its worst week in two decades, falling to a new record low on Friday over concerns about President-elect Donald Trump’s economic policies.

The currency traded at 21.15 pesos per dollar on Friday afternoon, down 8.75 percent compared to last week and 1.65 percent from late Thursday, according to private bank Citibanamex.

The peso had started the day even worse, sinking to 21.45 to the dollar, before regaining some ground.

It was among the worst weeks for the peso since an economic crisis and devaluation of the peso in 1995.

The peso had rallied in the hours preceding Tuesday’s election on optimism that Democratic candidate Hillary Clinton would win.

But Trump’s triumph sent the Mexican currency past the 20 pesos barrier on Wednesday while the stock market plunged.

Shares fell 0.54 percent on Friday compared to Thursday and were down 3.68 percent for the week.

The Republican billionaire has vowed to make Mexico pay for a massive border wall and renegotiate the North America Free Trade Agreement (NAFTA).

While Mexico’s government criticized some of Trump’s remarks during the campaign, President Enrique Peña Nieto said Friday he felt “very optimistic” about relations with the new US administration.

Finance Minister Jose Antonio Meade reiterated on Friday that the government, which has international reserves of $175.1 billion, does not need to intervene in the markets to protect the peso for now.

There is “volatility in all the global markets and therefore an intervention wouldn’t have had the impact that we would have hoped,” he said.

But authorities remain “vigilant” in case action is needed, Meade said.

source: business.inquirer.net

Global stocks slide on looming Brexit risk

NEW YORK, United States — World stock markets extended losses Monday as fears heightened that Britain could vote to leave the European Union in next week’s referendum.

Tokyo’s main stocks index dived 3.5 percent to a two-month low point by Monday’s close, as worries over Britain’s EU membership vote on June 23 sparked a rally in the safe-haven yen currency, which in turn hammered shares in Japanese exporters.

Craig Erlam, senior market analyst at Oanda trading group, said “risk aversion” continued to drive markets ahead of “a number of key risk events”.

“The UK referendum next week is right at the top of this list given the destabilization effects that a vote to leave the EU could have on global markets,” he said in a note to investors.

US stocks joined the global retreat, falling for a third straight day and pushing the S&P down 0.8 percent. But shares in professional networking company LinkedIn shot up 46.6 percent on news of its $26.2 billion takeover by Microsoft.

Shares of US travel-oriented equities were especially weak, with American Airlines, Delta Air Lines and United Continental all losing at least 3.5 percent in the aftermath of Sunday’s deadly attack by a lone gunman at a gay nightclub in Orlando, Florida.

London’s FTSE 100 index lost 1.2 percent. In the eurozone, Frankfurt’s DAX 30 index and the CAC 40 in Paris were both about 1.8 percent lower. Banking stocks weighed in Milan, where the main index slid 2.9 percent to its lowest level since February.

In foreign exchange, the British pound hit two-month lows against both the euro and dollar.

The pound’s latest tumble against the dollar “could be the tip of the iceberg” if Britons opt to quit the EU, said Alex Holmes, of Capital Economics.

The European single currency meanwhile sank as low as 119 yen, the lowest level since February 2013.

Central banks on tap

Markets also are on edge as the US, Japanese and British central banks meet this week.

Few expect any move on interest rates from the US Federal Reserve and Bank of England, but observers are divided over whether the Bank of Japan will announce more stimulus.

“Chances of the Fed raising interest rates this month are nil at this point, with a July raise looking less and less likely,” Mark Vickery, of Zacks Investment Research, said in a note to clients.

For Oanda’s Erlam, the Brexit risk is also playing a role in the Fed’s timing.

“The Fed will meet this week and while the (May) jobs report may have given them a reason to put off raising interest rates again, the closing of the gap ahead of the UK referendum is likely the real reason behind the delay,” he said.

Hong Kong’s main stocks index tumbled 2.5 percent and Shanghai dived 3.2 percent, while Seoul sank 1.9 percent and Singapore 1.6 percent.

source: business.inquirer.net

Q&A: What is a market ‘correction’ and why does it matter?

A dismal start for the stock market this year has pushed the Standard & Poor’s 500 index into what is known as a “correction,” or decline of 10 percent or more from a recent peak. Here are some common questions asked about corrections and what they mean to investors:

WHAT IS A STOCK MARKET CORRECTION?

A “correction” is a Wall Street term for when an index like the S&P 500 or the Nasdaq — or an individual stock — falls 10 percent from its most-recent high. The S&P 500, the index that investors pay most attention to, fell 48 points Wednesday to 1,890, which is 10.4 percent below its recent high of 2,109 set on November 3. A correction is not the same as a bear market, which is defined as when a stock index or individual stock falls 20 percent from its most-recent peak.

IS THE ENTIRE STOCK MARKET IN A CORRECTION?

Almost. The Nasdaq, a technology-dominated index that far outperformed the other two major indexes in 2015, is lagging the other indexes this year and fell into a correction on Monday. On Wednesday it fell 159 points to 4,526, and it is now down 12.2 percent from its recent peak on December 2. The Dow Jones industrial average, comprised of just 30 stocks, is not quite there. It fell 364 points on Wednesday to 16,151, 9.9 percent below its November 3 peak.

___

WHEN WAS THE LAST TIME WE HAD A CORRECTION?

The U.S. stock market entered into its last correction in August. That correction, much like this one, was sparked by financial turmoil in China.

Chinese stock markets have been extremely volatile in recent months, rising to record highs and then plummeting on worries about policy changes, slowing economic growth and a weaker currency. While U.S. investors are not exposed to those stock markets directly, China has been the engine of global economic growth since the financial crisis and weakness there concerns investors everywhere.

Those concerns have had an outsized effect on prices of oil and other commodities because China is such a big consumer, and energy companies have led markets lower in recent weeks.

___

ARE CORRECTIONS A NORMAL THING FOR THE MARKET?

Stock market corrections have historically happened every 18 months. The August correction was the first in nearly 4 years, an unusually long gap. Even the most bullish of market strategists say a correction is ultimately healthy for a market because it removes some of the froth and speculation, and allows investors to buy stocks at more reasonable prices.

source: business.inquirer.net

Bank fines help end US stocks’ 5-day record run

NEW YORK–Wall Street’s five-day record run ended Wednesday after huge fines for rigging the foreign exchange market sent the shares of three leading US banks tumbling.

But the Nasdaq ended firmly higher on gains by Apple and Yahoo.

The Dow Jones Industrial Average finished down 2.70 points (0.02 percent) at 17,612.20.

The broad-market S&P 500 fell 1.43 (0.07 percent) to 2,038.25, while the tech-rich Nasdaq Composite added 14.58 (0.31 percent) at 4,675.13.

US, British and Swiss regulators levied $4.2 billion in fines on six of the world’s largest banks for manipulation of the foreign exchange market.

Shares of the three US banks on the list all fell: JPMorgan Chase (-1.3 percent), Citigroup (-0.7 percent) and Bank of America (-0.2 percent).

But the banks and the markets in general shed much steeper earlier losses, demonstrating the continued strength of support after both the Dow and S&P 500 set fresh records for five straight sessions.

But small regional banks generally earned a boost from BB&T’s $2.5 billion takeover of regional bank Susquehanna Bancshares. Susquehanna gained 32.5 percent, while BB&T lost 1.7 percent.

Otherwise market losses were more measured as investors caught their breath after the five-day rally by the Dow and S&P 500.

“We are nearing new highs, we need a pretty good catalyst to move higher,” said Art Hogan, chief market strategist at Wunderlich Securities.

The Nasdaq hit its best level since late March 2000, but remained well shy of the all-time high above 5,048 that March 10, when the index turned downward to what became a severe crash.

Pushing the Nasdaq higher were Apple, up 1.5 percent to its all-time high of $111.25, and Yahoo, which gained 3.2 percent on news of its purchase of video advertising service BrightRoll for $640 million.

Oil company shares lost ground as the price of crude continued its fall. ExxonMobil gave up 1.1 percent, Chevron 0.7 percent, and ConocoPhillips 0.8 percent.

Bond prices were flat after the market was closed Tuesday for a holiday. The yield on the 10-year US Treasury held at 2.36 percent, unchanged from Monday, while the 30-year slipped to 3.08 percent from 3.09 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Dollar edges down in Asia ahead of Yellen remarks – Lead

TOKYO- The dollar edged down in Asia Wednesday, taking a breather from a rally driven by speculation the Fed will soon start tapering its huge stimulus drive.

The greenback bought 99.48 yen in Tokyo afternoon trade, weakening from 99.62 yen in New York Tuesday.

The euro strengthened to $1.3447 from $1.3433 while it bought 133.76 yen compared with 133.82 yen in US trade.

Dealers are awaiting remarks Thursday from Janet Yellen, President Barack Obama’s nominee to succeed Chairman Ben Bernanke at the Federal Reserve, said a senior dealer at a major bank in Tokyo.

Some investors want to push the dollar above the 100-yen mark but “many of us just don’t want to make aggressive moves before we confirm Ms Yellen makes no negative surprises,” the dealer said.

Yellen will appear before US senators Thursday to defend her nomination as Fed policymakers debate whether the stimulus policy known as quantitative easing is still needed to support the world’s largest economy.

The central bank will hold its regular two-day policy meeting next month after upbeat US data fuelled speculation that it could start tapering its $85-billion-a-month bond-buying program before year’s end.

Traders also are awaiting eurozone industrial production figures for September, due later Wednesday, which will be followed by July-September economic growth data on Thursday.

The dollar was higher against other Asia-Pacific currencies.

It rose to Sg$1.2495 from Sg$1.2486 on Tuesday, to Tw$29.59 from Tw$29.56, to 63.73 Indian rupees from 63.53 rupees, and to 43.77 Philippine pesos from 43.70 pesos.

The greenback inched up to 31.59 Thai baht from 31.57 baht and to 1,072.93 South Korean won from 1,071.20 won.

The Australian dollar fell to 93.04 US cents from 93.29 cents, while the Chinese yuan was at 16.30 yen against 16.31 yen.

source: business.inquirer.net

Asian shares mixed ahead of US jobs data

HONG KONG – Asian markets were mixed in cautious trading on Tuesday as investors awaited the release of delayed US September jobs data later in the day.

The dollar edged up against the yen, returning to its upward trend after this month’s Washington standoff over the debt ceiling and budget had sent investors running to the Japanese unit.

Tokyo rose 0.13 percent, or 19.68 points, to 14,713.25 thanks to the weakening yen, while Sydney climbed 0.40 percent, or 21.3 points, to 5,373.1. Seoul added 0.15 percent, or 3.11 points, to end at 2,056.12.

However, Shanghai fell 0.83 percent, or 18.59 points, to end at 2,210.65 and Hong Kong lost 0.52 percent, or 122.16 points, to end at 23,315.99.

“Market participation levels are likely to remain low until data can help confirm the state of the US economic recovery,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

With last week’s global rally – fuelled by the US deal to reopen the government after 16 days and avert a devastating default – out of the way, attention has turned back to economic numbers, with the non-farm payrolls figures in focus.

They had been due out at the beginning of the month but were put off because of the US government shutdown. Traders will pore over them for clues about the state of the US economy.

However, Kathy Lien, managing director at BK Asset Management, said there would likely be a cautious reaction to a strong report because it predates the shutdown, which likely depressed hiring.

She added that if jobs growth misses expectations, “the dollar could be in even more trouble because October payrolls are expected to be much weaker.”

Economists say there is a good chance the US Federal Reserve will delay winding down its stimulus program – which depressed the value of the dollar – until possibly the new year.

On currency markets, the dollar was changing hands at 98.34 yen in the afternoon compared with 98.15 yen in New York on Monday, while the euro fetched $1.3674 and 134.49 yen compared with 1.3681 and 134.26 yen.

Wall Street was unable to provide a strong lead as investors took a breather after last week’s strong gains.

The Dow was flat and the S&P 500 edged up marginally to another record high, while the tech-rich Nasdaq added 0.15 percent.

In oil trade, New York’s main contract, West Texas Intermediate for delivery in November, fell 80 cents to $98.42 a barrel, extending its slide after hitting three-month lows late Monday. However, Brent North Sea crude for December gained 22 cents to $109.86.

Gold cost $1,310.44 at 0841 GMT compared with $1,315.41 on Monday.

In other markets:

– Taipei was virtually unchanged, dipping 1.05 points to 8,418.27.

Taiwan Semiconductor Manufacturing Co. rose 1.36 percent to Tw$111.5 while Chunghwa Telecom fell 1.95 percent to Tw$90.6.

– Wellington rose 0.61 percent, or 29.23 points, to 4,831.79.

Fletcher Building was up 1.37 percent at NZ$9.64 and Air New Zealand added 1.92 percent to NZ$1.59.

– Manila ended flat, edging up 6.04 points to 6,603.60.

Ayala Land fell 0.15 percent to 30.60 pesos and its parent Ayala Corp. shed 0.57 percent to 612 pesos.

source: business.inquirer.net