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 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

Asian shares rise as Trump plans to meet Chinese leader

TOKYO  — Asian shares were mostly higher Tuesday as investor jitters over trade eased after U.S. President Donald Trump suspended plans to impose tariffs on Mexican imports and said he expects to meet with the Chinese leader.

Japan’s benchmark Nikkei 225 rose 0.4% in morning trading to 21,208.09.

Australia’s S&P/ASX 200 added 1.3% to 6,528.30.

South Korea’s Kospi gained 0.3% to 2,105.37. Hong Kong’s Hang Seng stood at 27,820.63, up nearly 0.9%, while the Shanghai Composite edged up 1.9% at 2,905.44.

On Wall Street, shares continued their winning streak for a fifth day on Monday.

That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May.


During an interview with CNBC, Trump said he expects to meet with Chinese President Xi Jinping at the Group of 20 summit in Japan later this month.

That may have given investors some cause for optimism in the dispute between Washington and Beijing.

The S&P 500 index gained 13.39 points, or 0.5%, to 2,886.73.

The benchmark index rose 4.4% last week, its best weekly performance of 2019. It’s now about 2% below its record set on April 30.

The Dow Jones Industrial Average rose 78.74 points, or 0.3%, to 26,062.68.

The Nasdaq composite climbed 81.07 points, or 1.1%, to 7,823.17. The Russel 2000 index of smaller companies gained 9.17 points, or 0.6%, to 1,523.56.

ENERGY: Benchmark U.S. crude rose 31 cents to $53.57 a barrel. It slid 1.4% to $53.26 a barrel on Monday. Brent crude oil, the international standard, was up 19 cents at $62.48 a barrel.

CURRENCIES:  The dollar was unchanged at 108.60 yen. The euro rose to $1.1315 from $1.1307. /gg

source: newsinfo.inquirer.net

Asia shares retreat on fears China-US trade row might spread

TOKYO – Asian shares were mostly lower on Friday as worries that the trade standoff between the U.S. and China might expand put investors in a selling mood.

Japan’s benchmark Nikkei 225 fell 0.2% to finish at 21,117.22.


Australia’s S&P/ASX 200 lost 0.6% at 6,456.00. South Korea’s Kospi dropped 0.8% to 2,043.43.

Hong Kong’s Hang Seng edged 0.4% higher to 27,361.48, while the Shanghai Composite inched up 0.1% to 2,855.67.

“Finally, markets appear to be starting to price in the effect of an extended U.S.-China trade war on global growth,” Jeffrey Halley, senior market analyst at Oanda, said in a commentary.

Stocks ended sharply lower on Wall Street on Thursday in a broad sell-off that left the benchmark S&P 500 index on track for its third straight weekly loss and had the Dow Jones Industrial Average down more than 400 points until late afternoon.

Traders sought safety in the bond market, driving bond prices higher, which pulled the yield on the 10-year Treasury to 2.31%, the lowest level in more than a year.

It was at 2.33% by midday Friday in Asia.

The stock market has been gyrating since Washington and Beijing escalated their dispute over trade earlier this month. Now, the two sides have broken off negotiations and appear set for a long standoff.

Investors are concerned that a prolonged trade war could stunt economic growth and hurt corporate profits.

Overnight, President Donald Trump reiterated his complaints that China has “taken advantage” of the United States, with no hint of any progress in resolving the conflict over technology and Beijing’s industrial policies.

The S&P 500 index fell 1.2% to 2,822.24.

The index was down 2.5% before the selling eased. The Dow lost 1.1% to 25,490.47.

The Nasdaq composite dropped 1.6% to 7,628.28. The Russell 200 index of small company stocks gave up 2% to 1,501.38.

The U.S. and China concluded their 11th round of trade talks earlier this month with no agreement.

Instead, the U.S. moved to increase tariffs on Chinese goods, prompting China to reciprocate.

The trade dispute escalated further after the U.S. proposed restrictions on technology sales to China, though it has temporarily backed off.

China is looking for ways to retaliate and has reached out for support from Russia and its neighbors in Asia.

Both the U.S. and China have made overtures about continuing trade talks, but none are scheduled.

That uncertainty has many traders nervous about how and when the trade dispute will be resolved.

ENERGY: Benchmark U.S. crude rose 61 cents to $58.53 a barrel. It plunged 5.7% to settle at $57.91 a barrel on Thursday. Brent crude, the international standard, added 75 cents to $68.51 per barrel.

CURRENCIES: The dollar fell to 109.54 yen from 110.08 yen Thursday. The euro strengthened to $1.1196 from $1.1135. /gg

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 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

Asian shares mixed after Dow record close

HONG KONG—Asian shares were mixed on Thursday as most markets stayed shut for public holidays, with Tokyo tracking a rise on Wall Street after the Federal Reserve said the US economy was picking up.

The Nikkei closed 1.27 percent higher, adding 181.02 points to 14,485.13, with some strong corporate earnings and healthy manufacturing data from China adding to the upbeat mood.

Sydney lost 0.73 percent, or 40.27 points, to finish at 5,448.8 despite a solid earnings report from ANZ bank, which said first-half net profit was up 15 percent.

Wellington was 0.45 percent lower, slipping 23.47 points to close at 5,209.21.

Financial markets in China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand were closed for May Day.

In Japan, investors took their lead from Wall Street, where the Dow Jones Industrial Average closed Wednesday at a fresh record high.

The Fed, concluding a two-day policy meeting, said economic activity had “picked up recently” after a bout of fierce winter weather.

Strong corporate earnings figures also led the Tokyo market higher, with brokerage house Nomura Holdings surging 6.29 percent to 625 yen and Daiwa Securities rising 3.14 percent to 789 after both reported strong earnings from the year ended in March.

Fujitsu jumped 6.33 percent to 638 yen after swinging back to the black for the just-ended fiscal year.

Even so, market analyst Kenichi Hirano of Tachibana Securities said the market remained “trapped in a boxed trading range” due to a general lack of participants and major currency market moves.

“Nevertheless, good earnings reports are welcome, and may help bolster support,” he told Dow Jones Newswires.

In afternoon Tokyo trading, the greenback fetched 102.20 yen from 102.23 yen in New York Wednesday.

The euro rose slightly to $1.3884 and 141.90 yen from $1.3866 and 141.75 yen in US trade.

The yen is under pressure after the Bank of Japan left its monetary policy unchanged but lowered the country’s growth projections, fueling speculation it will expand its huge stimulus drive, which tends to weigh on the currency.

Boost to China manufacturing

BoJ policymakers on Wednesday predicted that the world’s No. 3 economy would expand by 1.1 percent in the fiscal year to next March—down from an earlier 1.4 percent forecast.

But expectations that inflation would come in at 1.3 percent over the same time period were unchanged.

The report was seen as a key measure of whether the BoJ still thinks it can stoke lasting inflation, but there are doubts among a growing number of observers who say the bank will be forced to expand its stimulus program to counter a downturn in the economy.

On Wednesday the BoJ held off from expanding the asset-purchase scheme, awaiting the effects of an April 1 sales tax hike.

In China, the government said Thursday that manufacturing activity had improved in April for a second straight month.

The official purchasing managers index (PMI) was 50.4 in April, the National Bureau of Statistics said in a statement, up from 50.3 in March.

The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy, with a reading of 50 or above indicating growth.

In New York on Wednesday the Dow advanced 0.27 percent to 16,580.84 points, notching its first all-time high of 2014. The last record close, 16,576.66, was set on Dec. 31.

The S&P 500 rose 0.30 percent while the tech-rich Nasdaq Composite Index added 0.27 percent.

Oil prices were down, with West Texas Intermediate (WTI) for June delivery slipping 20 cents to $99.54 a barrel and Brent North Sea crude for June down 34 cents to $107.73 a barrel.

Gold fetched $1,282.76 at 0815 GMT compared with $1,288.50 on Wednesday.

source: business.inquirer.net