Markets drop as traders nervously await US jobs data

HONG KONG - Asian stocks mostly fell Thursday ahead of key US jobs data at the end of the week, after Federal Reserve boss Jerome Powell warned it could ramp up its pace of interest rate hikes if the economy shows no sign of slowing.

Markets have been falling since the start of February as a string of forecast-beating indicators have shattered hopes the US central bank could pause its tightening campaign soon, and even cut borrowing costs by the year's end.

And on Tuesday, Powell delivered another blow by telling lawmakers that with inflation still stubbornly high and the jobs market tight, officials were prepared to hike by half a percentage point at their next meeting as they struggle to control prices.

That would be twice the last increase, which followed a period of bumper increases last year.

The prospect of rates going ever higher -- with some predicting six percent from the current 4.5-4.75 percent -- has ramped up fears the world's top economy could tip into recession. Analysts pointed out that bond markets suggest a contraction is on the cards.

He reiterated monetary policymakers' determination to quell inflation on Wednesday in a second day of testimony to US lawmakers, though he did say the decision would be driven by data, with a close eye on the labour market.

"If -- and I stress that no decision has been made on this -- but if the totality of the data were to indicate that faster tightening is warranted, we'd be prepared to increase the pace of rate hikes," he said.

"Inflation is coming down but it's very high," he added. "Some part of the high inflation that we are experiencing is very likely related to a very tight labour market."

Meanwhile, the Fed's "beige book" survey of economic conditions said "inflationary pressures remained widespread" and that "labour market conditions remained solid".

RECESSION FEARS HIT OIL

Powell's comments "helped briefly pull yields lower and pull the US dollar off its highs for the day, but the reality remains that markets are slowly starting to come to the realisation that rates are likely to remain higher for longer and that the terminal rate is also likely to settle at a much higher level", said CMC Markets' Michael Hewson.

Traders are now awaiting Friday's non-farm payrolls figures for February, with a strong reading likely to put pressure on the Fed to hike by 50 basis points. 

In a worrying sign for risk appetite, a report on the private sector showed a bigger-than-expected jump in jobs last month -- double January's number -- while wage growth remained solid.

After a tepid day on Wall Street, Asian markets mostly edged down.

Hong Kong was flat while Shanghai fell with Singapore, Seoul, Wellington, Taipei, Mumbai and Manila. London, Paris and Frankfurt followed suit at the open.

Tokyo, Sydney, Bangkok and Jakarta rose.

Growing concerns about rising rates causing a possible recession were keeping pressure on oil prices, which extended Wednesday's losses.

"Crude prices can't shake off fears that the Fed is going to send the US economy into a bad recession," said OANDA's Edward Moya, adding that data showing a small dip in US stockpiles was unable to shake off the unease.

"The amount of crude demand uncertainty over the short-term is keeping oil prices heavy. WTI crude looks like it will be stuck between the mid-$70s and the low $80s until we have a better idea on what type of recession the Fed will trigger."

Key figures around 0820 GMT

Tokyo - Nikkei 225: UP 0.6 percent at 28,623.15 (close)

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,925.74 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,276.09 (close)

London - FTSE 100: DOWN 0.3 percent at 7,909.47

Euro/dollar: UP at $1.0554 from $1.0547 on Wednesday

Pound/dollar: UP at $1.1847 from $1.1845

Euro/pound: UP at 89.09 pence from 89.01 pence

Dollar/yen: DOWN at 136.83 yen from 137.43 yen 

West Texas Intermediate: DOWN 0.2 percent at $76.51 per barrel

Brent North Sea crude: DOWN 0.2 percent at $82.51 per barrel

New York - Dow: DOWN 0.2 percent at 32,798.40 (close)

Agence France-Presse

Asian markets mixed after Wall St tumble as recession fears return

HONG KONG - Markets were mixed Thursday while oil prices fell and the dollar weakened after disappointing US data renewed worries about a recession in the world's biggest economy.

The optimism that has flowed through trading floors since the start of the year took a knock this week as concern about inflation and rising interest rates are replaced by growth fears and their impact on company profits.

The downbeat mood offset hopes that China's economy will enjoy a strong recovery this year -- having suffered its worst annual growth in 46 years in 2022 -- as it moves away from its zero-Covid policy.

All three main indexes on Wall Street sank more than one percent Wednesday in response to figures showing retail sales, and shrank at the quickest pace in more than a year, while producer prices fell the most since the beginning of the pandemic. 

Industrial production also came in worse than forecast.

While data indicating the economy was struggling has in recent months spurred equities on hopes it will allow the Federal Reserve to slow down its pace of rate hikes, analysts said traders are now concerned about the economic outlook.

"'Bad news is bad news' once again for markets, with weak retail sales and industrial production seeing risk assets sell-off," said National Australia Bank's Tapas Strickland.

The data "adds to the theme of the economy slowing and heading into recession in 2023, and pushes back on the soft landing narrative dominating markets since January".

Tokyo, Hong Kong, Singapore, Mumbai and Manila all fell, though Shanghai, Sydney, Seoul, Bangkok and Jakarta edged up.

Wellington's NZX 50 and the New Zealand dollar suffered only small losses despite Prime Minister Jacinda Ardern's shock announcement that she will step down next month, saying she no longer has "enough in the tank".

Expectations that US interest rates will not rise as much as previously feared weighed on the dollar, with the yen bouncing back strongly after Wednesday's Bank of Japan decision not to further tweak monetary policy.

However, several Federal Reserve officials have pushed back against such speculation, warning they will continue to tighten policy until they have brought inflation down from its multi-decade highs.

Worries about recession were also weighing on oil prices, despite hopes for a spike in demand as China reopens to the world. Both main contracts dropped around one percent in afternoon exchanges.

But SPI Asset Management's Stephen Innes said Asian investors could be in for a positive year.

"The clear message to start 2023 has been clear as a whistle: while last year was about Fed and ECB normalization, this year will be about China and Japan normalization, which should continue to drive Asia’s fortunes higher in 2023," he said in a note. 

Key figures around 0710 GMT 

Tokyo - Nikkei 225: DOWN 1.4 percent at 26,405.23 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 21,656.55

Shanghai - Composite: UP 0.5 percent at 3,240.28 (close)

Dollar/yen: DOWN at 127.84 yen from 128.80 yen on Wednesday

Euro/dollar: UP at $1.0805 from $1.0797 

Pound/dollar: DOWN at $1.2341 from $1.2344

Euro/pound: UP at 87.53 pence from 87.43 pence

West Texas Intermediate: DOWN 1.2 percent at $78.51 a barrel

Brent North Sea crude: DOWN 1.0 percent at $84.13 a barrel

New York - Dow: DOWN 1.8 percent at 33,296.96 (close)

London - FTSE 100: DOWN 0.3 percent at 7,830.70 (close) 

Agence France-Presse

Asia extends stocks rally as dollar drops on Fed rate optimism

HONG KONG –– Asian stocks extended a global rally Thursday and the dollar sank after Federal Reserve boss Jerome Powell flagged a rate hike slowdown and China signaled a softer approach to fighting COVID.

A growing sense of hope that months of sharp monetary tightening around the world is finally reining inflation back from its decades-long highs sent equities surging in November, even as policymakers warned more work had to be done.

And in a much-anticipated speech Wednesday, Powell said the full effects of the Fed's belt-tightening had yet to be felt but that it "makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down".

He signaled the US central bank's December gathering would likely see officials lift borrowing costs by 50 basis points, having pushed them up by a bumper 75 points at the past four meetings.

However, Powell did say policy would need to remain tight "for some time" to restore price stability, echoing comments from other Fed officials who suggested there might not be any cuts until 2024.

Analysts said the reaction to Powell's remarks -- which had been expected to be his most dovish in some time -- highlighted a sense of relief among investors that a long-hoped-for pivot was on the cards.

All 3 main indexes on Wall Street surged, with the Nasdaq leading the way as rate-sensitive tech firms rocketed.

The gains extended November's rally and helped claw back more of the hefty losses suffered for much of 2022.

The dollar also suffered a sell-off, tanking more than 1 percent against the yen to levels not seen since August.

The greenback's losses come after it soared across the board this year as Fed monetary policy diverged more and more from other central banks.

CHINA COVID HOPE

Investors were "putting those nasty thoughts of a bear market to bed as the December Santa Rally springs alive", said Stephen Innes at SPI Asset Management.

"Indeed investors are reveling in the afterglow of moderating Fed signals. And with the Fed done with jumbo hikes, it's seemingly enough to mark the bottom in the bear market and could lead to a sustainable rally."

He added that bets on rates topping 5 percent were fading and the advance in markets could push into the new year, with another slowdown in November inflation potentially fueling a bull rally -- when a market rises 20 percent from its recent low. 

"Still," he warned, "inflation will need to play along."

In another sign of hope, data earlier showed that eurozone inflation eased for the first time in 17 months in November.

Hong Kong led the gains in Asia again, with tech giants including Alibaba and Tencent tracking massive gains in their US-listed stock, while Shanghai ended well up.

Those rallies were also helped by signs that China is edging towards a more pragmatic approach to fighting the coronavirus, having hammered the economy this year with its strict zero-COVID strategy of lockdowns and mass testing.

After widespread unrest against the measures -- and calls for more political freedoms -- authorities have announced moves aimed at loosening some restrictions.

On Wednesday, Vice Premier Sun Chunlan, who heads China's COVID campaign, told the National Health Commission that the fight was entering a new phase as omicron weakens and more people are vaccinated.

Bloomberg News also noted that she did not refer to "dynamic COVID-zero", the term used to explain Beijing's strategy. 

"It is clear that the authorities are setting the stage for COVID measures to be relaxed," said Justin Tang, at United First Partners. "Equity prices will see a boost as China joins the rest of the world in living with COVID."

Among other markets, Tokyo, Sydney and Taipei added more than one percent while Singapore, Seoul, Wellington, Mumbai and Bangkok were also in positive territory.

Key figures around 3:10 p.m. in Manila

Tokyo - Nikkei 225: UP 0.9 percent at 28,226.08 (close)

Hong Kong - Hang Seng Index: UP 1.3 percent at 18,841.88

Shanghai - Composite: UP 0.5 percent at 3,165.47 (close)

Dollar/yen: DOWN at 136.30 yen from 138.03 yen on Wednesday

Euro/dollar: UP at $1.0454 from $1.0408 on Wednesday

Pound/dollar: UP at $1.2114 from $1.2052

Euro/pound: DOWN at 86.30 pence from 86.34 pence

West Texas Intermediate: DOWN 0.5 percent at $80.15 per barrel

Brent North Sea crude: DOWN 0.5 percent at $86.50 per barrel

New York - Dow: UP 2.2 percent at 34,589.77 (close)

London - FTSE 100: UP 0.8 percent at 7,573.05 (close)

Agence France-Presse

Asian markets mostly higher on hopes for coronavirus vaccine

Shares were mostly higher in Asia on Wednesday as investors were encouraged by news that an experimental COVID-19 vaccine under development by Moderna and the U.S. National Institutes of Health revved up people’s immune systems just as desired.

Tokyo’s Nikkei 225 advanced 1.6% to 22,945.50, while the Kospi in South Korea added 0.9% to 2,201.96. In Australia, the S&P/ASX 200 added 1.7% to 6,039.50. Hong Kong’s Hang Seng was nearly unchanged at 25,476.31, while the Shanghai Composite Index slipped 0.5% to 3,397.63. Shares were mixed in Southeast Asia and rose in Taiwan.

The Bank of Japan kept its ultra-easy monetary stance unchanged as it wrapped up a policy meeting. It forecast that the economy would improve later in the year, assuming there is no major “second wave” of outbreaks of the new coronavirus.

But the central back acknowledged very high uncertainties over the outlook for the world’s third largest economy. The bank’s growth forecast for the year was downgraded to minus 5.7%- minus 4.5% from the earlier forecast of minus 5%-minus 3%.

The report also raised the issue of financial stability, noting that the “vulnerability of the financial system could increase,” said Marcel Thieliant of Capital Economics.

Investors are awaiting April-June economic growth data for China, which is due later in the week.

The focus for now was on news that scientists soon will begin a 30,000-person study to see if the experimental vaccine developed by Moderna and the NIH is strong enough to protect against the coronavirus.

News about the vaccine came after the end of trading for U.S. markets, where after another day of unsettled trading the S&P 500 rose 1.3% to 3,197.52. The Dow Jones Industrial Average added 2.1% to 26,642.59, lifted by gains for UnitedHealth Group and Caterpillar, among others.

Upbeat earnings news is helpful, “But the cherry on top has to be the positive virus vaccine update as optimism on the vaccine is more than a show stopper. Its the ultimate recession stopper,” Stephen Innes of AxiCorp said in a commentary.

“The positive coverage on a potential Covid-19 vaccine represents a rotating carousel of positive news that is overwhelming rising virus cases in the U.S.,” he said.

On Wall Street, big tech-oriented stocks lagged behind, holding the Nasdaq composite to a more modest gain of 0.9% to 10,488.58.

The earnings reporting season has kicked off with three of the nation’s biggest banks painting a mixed picture of how badly the coronavirus pandemic is ripping through their businesses.

Like the broader market, financial stocks drifted between gains and losses for much of the day before turning higher in the afternoon. JPMorgan Chase, Wells Fargo and Citigroup said they collectively set aside nearly $27 billion during the second quarter to cover loans potentially going bad due to the recession.

The yield on the 10-year Treasury held at 0.63% after rallying back from a morning dip on Tuesday to 0.60%. It tends to move with investors’ expectations of the economy and inflation.

Benchmark U.S. crude oil rose 10 cents to $40.39 per barrel in electronic trading on the New York Mercantile Exchange. It gained 19 cents to settle at $40.29 per barrel on Tuesday. Brent oil, the international standard, picked up 13 cents to $43.03 per barrel. It rose 18 cents to $42.90 a barrel in London.

In currency dealings, the dollar bought 107.27 Japanese yen, up from 107.23 yen late Tuesday. The euro also was almost unchanged, rising to $1.1406 from $1.1401.

Associated Press

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 stocks decline as traders mull Trump inquiry

BEIJING  — Asian stocks fell Friday as traders weighed data showing slower U.S. economic growth and also the possible impact of an impeachment inquiry of President Donald Trump.

The congressional inquiry into Trump is throwing more volatility into a market that already was nervous over U.S.-Chinese trade tension.

“The impeachment of Trump will now become a drawn-out saga that feels like annoying supermarket music,” Jeffrey Halley of Oanda said in a report.

Also Thursday, the Commerce Department reported the U.S. economy grew at a modest 2% in the second quarter, sharply lower than the past year’s 3%-plus growth rates.

The Shanghai Composite Index advanced 0.2% to 2,933.47 on the last day of trading before Chinese markets close for a weeklong holiday.

Tokyo’s Nikkei 225 lost 1.4% to 21,747.82 as a long-dreaded Oct. 1 hike in Japan’s sales tax to 10% from the current 8% loomed. The Hang Seng in Hong Kong shed 0.3% to 25,982.54 and Seoul’s Kospi dropped 1.2% to 2,048.86.

Sydney’s S&P-ASX 200 gained 0.4% to 6,703.70. Markets in Taiwan, New Zealand and Southeast Asia retreated.

Traders were encouraged by a Chinese Commerce Ministry announcement that importers had agreed to buy U.S. soybeans as the two sides make conciliatory gestures ahead of trade talks. That followed an earlier decision to list punitive tariffs on soybeans, the biggest Chinese import from the United States.

Plans to go ahead with negotiations next month have helped to ease market jitters but there has been no sign of progress toward resolving the bruising tariff war over trade and technology.

On Wall Street, the Standard & Poor’s 500 index fell 0.2% to 2,977.62 and the Dow Jones Industrial Average slid 0.3% to 26,891.12. The Nasdaq dropped 0.6% to 8,030.66.

While many analysts say the Trump probe isn’t likely to affect the market significantly, it does add a degree of uncertainty and could complicate the White House’s efforts to resolve trade disputes with China and other nations.

ENERGY: Benchmark U.S. crude lost 29 cents to $56.12 per barrel in electronic trading on the New York Mercantile Exchange. The contract gave up 8 cents to $56.41 on Thursday. Brent crude, used to price international oils, fell 56 cents to $61.18 per barrel in London. It retreated 31 cents the previous session to $61.74.

CURRENCY: The dollar declined to 107.72 yen from Thursday’s 107.83 yen. The euro rose to $1.0925 from $1.0920./gsg

source: business.inquirer.net

Asian stocks lower ahead of Trump-Xi meeting at G-20 summit

BEIJING – Major Asian stock markets declined Tuesday as traders looked ahead to a meeting between the American and Chinese presidents amid hopes for renewed trade talks.

Benchmarks in Tokyo, Shanghai and Hong Kong declined. Seoul and Sydney were little-changed.

Investors were encouraged by the announcement that top U.S. and Chinese negotiators, Trade Representative Robert Lighthizer and Vice Premier Liu He, talked Monday by phone. No details were released.

Traders looked ahead to a planned meeting between Presidents Donald Trump and Xi Jinping at this week’s Group of 20 meeting of major economies in Japan.

Forecasters expect the leaders to reassure financial markets by agreeing to revive trade talks without a timeline or committing to any details.

The conflict over Beijing’s technology ambitions and trade surplus was weighed on global trade and fed fears it will depress global growth.

Tensions have worsened after Washington tightened sanctions on Chinese tech giant Huawei.

“Both presidents have a very low bar of merely agreeing to resume trade talks, without having to iron out any of the sticking points at the G20,” said Chang Wei Liang of Mizuho Bank in a report.

The realities of achieving a settlement “will probably be relegated to the backseat as the ‘feel good’ factor of the G20 displaces caution,” Chang said.

The Shanghai Composite Index lost 1.1% to 2,974.69 and Tokyo’s Nikkei 225 shed 0.2% to 21,241.28. Hong Kong’s Hang Seng retreated 0.9% to 28,268.14.

Seoul’s Kospi added one point to 2,128.00 while Sydney’s S&P-ASX 200 gained three points to 6,667.40. Taiwan also declined while markets in Southeast Asia and New Zealand advanced.

On Wall Street, smaller company stocks had their worst day since May, helping to erase some of last week’s gains after the benchmark Standard & Poor’s 500 index closed at an all-time high.

The S&P 500 index slipped 0.2% to 2,945.35. The Dow Jones Industrial Average rose less than 0.1% to 26,727.54. The Nasdaq composite dropped 0.3% to 8,005.70.

The Russell 2000 index of smaller companies slid 1.3% to 1,530.08, its biggest single-day loss since May 31.

Investors have been reassured by statements from the Federal Reserve this month that suggest the central bank is prepared to cut interest rates in response to a slowing global economy. Even so, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

The U.S.-Chinese standoff was triggered by complaints Beijing steals or pressures companies to hand over technology.

Lighthizer and Liu wrapped up their latest round of talks in May with no date to meet again. China laid out conditions for a settlement in early June, saying it must be “balanced,” reflecting complaints Washington is pushing for a one-sided deal and to retain punitive tariffs on Chinese goods.

ENERGY: Benchmark U.S. crude fell 50 cents to $57.40 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 47 cents on Monday to close at $57.90. Brent crude, used to price international oils, lost 51 cents to $63.67 per barrel in London. It shed 27 cents the previous session to $64.18.

CURRENCY: The dollar declined to 107.05 yen from Monday’s 107.29 yen. The euro edged up to $1.1403 from $1.1400. /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 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 stocks mostly higher ahead of Fed’s rate decision

SEOUL, South Korea — Asian stock markets were mostly higher on Wednesday ahead of the Federal Reserve’s decision on interest rates. The Fed was widely expected to announce later in the day an increase in the key policy rate for the first time in a year.

KEEPING SCORE: Japan’s Nikkei 225 edged 0.1 percent higher to 19,270.35 and the Shanghai Composite Index rose 0.1 percent to 3,157.06. South Korea’s Kospi slipped 0.1 percent to 2,035.12, but Hong Kong’s Hang Seng index gained 0.5 percent to 22,558.20 and Australia’s S&P/ASX 200 rose 0.8 percent to 5,588.10. Stocks in Southeast Asia were mixed.

FED WATCH: Market investors expect the Federal Reserve to announce a rate hike, the first since December 2015, at the end of the two-day Federal Open Market Committee meeting on Wednesday. Investors will listen for clues about future policy and the economic outlook under President-elect Donald Trump from Fed Chair Janet Yellen’s press conference. The central bank has kept rates low since the 2008 financial crisis.

ANALYST’S TAKE: “Against a backdrop of solid US economic data, an improving jobs market and changes that Trump Administration could potentially bring to the capital market, expectation for a 25 basis points rate hike by the Federal Reserve hit 100 percent several weeks ago,” said Margaret Yang of CMC Markets.

WALL STREET: U.S. stocks finished higher on Tuesday. The Dow Jones industrial average climbed 114.78 points, or 0.6 percent, to 19,911.21. The Standard & Poor’s 500 index picked up 14.76 points, or 0.7 percent, to 2,271.72. The Nasdaq composite climbed 51.29 points, or 0.9 percent, to 5,463.83.

JAPAN TANKAN: The Bank of Japan’s quarterly “tankan” survey of more than 10,000 companies found improved confidence among big Japanese manufacturers as the yen has weakened against the U.S. dollar since Trump was elected U.S. president. The report comes a day before the Bank of Japan is due to hold its last meeting of the year, where it is expected to leave policy unchanged given hints of improved conditions in the economy, the world’s fourth largest.

OIL: Benchmark U.S. crude fell 61 cents at $52.37 per barrel in New York. The contract rose 15 cents to close at $52.98 on Tuesday. Brent crude, the international standard, lost 58 cents to $55.14 a barrel in London.

CURRENCIES: The dollar rose to 115.20 yen from 115.06 yen. The euro was flat at $1.0635. TVJ

source: business.inquirer.net

Asian stocks mixed as shock of Paris attacks fades

BEIJING — Asian stocks were mixed Wednesday as the shock of the Paris terror attacks faded and an uptick in U.S. inflation added support for a possible interest rate hike.

KEEPING SCORE: Tokyo’s Nikkei 225 gained 0.8 percent to 19,785.73 points and the Shanghai Composite Index shed 0.3 percent to 3,593.89. Hong Kong’s Hang Seng was unchanged at 22,264.42. Sydney’s S&P ASX/200 shed 0.2 percent to 5,107.30 and Seoul’s Kospi advanced 0.2 percent to 1,966.63. Jakarta and New Zealand also gained while Taiwan and Singapore retreated. On Tuesday, Wall Street ended little changed, with the Dow Jones industrial average up 0.04 percent and the Standard & Poor’s 500 index down 0.1 percent. The Nasdaq composite gained 0.03 percent.

TERRORISM JITTERS: Investors restored calm in European markets following the attacks in Paris that left 129 people dead and more than 350 injured. Travel and tourism stocks suffered but markets were unexpectedly resilient. Germany’s DAX rose 2.4 percent, helped by a report showing German business optimism rose in November due to strong domestic demand. The data didn’t fully reflect the Paris attacks, though the survey’s authors say it does not appear to have had a significant impact. France’s CAC 40 jumped 2.8 percent. Britain’s FTSE 100 rose 2 percent.

US INFLATION: The consumer price index rose 0.2 percent in October after falling the prior two months. That could increase the likelihood the Federal Reserve will begin raising interest rates from historic lows as early as next month. That would be “a psychological boost that the economy is self-sustaining enough that the Fed could get off the zero interest rate policy,” said David Chalupnik, head of equities at Nuveen Asset Management.

ANALYST’S TAKE: “Markets are fading risk-aversion moves despite still elevated terror-related tensions,” said Mizuho Bank in a report. U.S. inflation data “suggests that price pressures are rising towards the Fed’s 2% inflation goal, supporting calls for the Fed to hike rates next month.”

WALL STREET: Investors weighed mixed results from retailers ahead of the start of the Christmas shopping season amid worries sales will be weak. Urban Outfitters fell 3.8 percent after the retailer’s latest quarterly sales fell short of expectations. Wal-Mart Stores rose 3.5 percent after the company reported improved customer traffic and an increase in a key sales figure for the third quarter, even as a stronger dollar pressured its performance overseas. Energy stocks were among the biggest decliners due to a fall in oil prices.

ENERGY: Benchmark U.S. crude gained 32 cents to $40.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $1.07 on Tuesday to close at $40.67. Brent crude, used to price international oils, rose 40 cents to $43.97 per barrel in London. It fell 99 cents the previous session to $43.57.

CURRENCY: The dollar gained to 123.4150 yen from Tuesday’s 123.4090. The euro edged down to $1.0636 from $1.0645. TVJ

source: business.inquirer.net

Asian stocks mostly lower as oil hits new lows

HONG KONG – Asian markets mostly slipped Tuesday, following a sell-off in Europe and the United States, as oil prices plunged to more than five-year lows and data indicated Chinese manufacturing activity shrank in December.

The dollar and euro edged lower against the yen after losing pace Monday owing to the uncertainty caused by the weak crude, which has increased pressure on Russia’s economy, spooking investors.

Tokyo tumbled 1.80 percent, Hong Kong lost 0.65 percent, Sydney slipped 0.39 percent and Seoul was 0.62 percent lower, while Shanghai rose 0.55 percent.

In China, banking giant HSBC said its preliminary index of manufacturing activity came in at 49.5 this month, compared with 50 in November. Anything below 50 points to contraction and anything above shows growth.

The figures are the latest in a long line that show the world’s number two economy is slowing. However, Shanghai shares advanced — extending a recent bull run — on hopes the government will introduce new measures to spur growth.

Oil-linked firms are being hammered after crude prices plunged by about half from their June highs, weighed down by an oversupply on world markets, falling demand and OPEC’s decision to maintain high output levels.

Despite the benefits cheap oil brings to some, global stock markets have been dragged down by energy giants and analysts warn there could be further falls on the way.

On Tuesday in Asia, US benchmark West Texas Intermediate for January delivery fell 38 cents to $55.53 while Brent crude for January eased 48 cents to $60.58 — both to levels last seen in mid-2009.

‘More pain in store’

US shares tumbled, with the Dow off 0.58 percent, the S&P 500 falling 0.63 percent and the Nasdaq slumping 1.04 percent.

Earlier Monday, London’s FTSE 100 ended down 1.87 percent, while equity markets in France and Germany fell more than 2.5 percent.

“Oil prices continue to slide, and that is now the chief worry to Russia, which is essentially an oil-exporting economy,” Yoshihiro Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.

“The creeping fear is that Russia may default, reminding investors of the prior Greek fiscal panic, and require a bailout. Beyond that, a ‘domino effect’ of worsening fiscal conditions at other oil-exporting nations may take hold.

“Oil prices look far from settled at the mid-$50 level, so more pain may yet be in store.”

Moscow was forced to ramp up interest rates early Tuesday, to 17 percent from 10.5 percent, after the ruble plunged to a fresh record-low against the dollar.

The slide came as the Russian central bank said weak oil prices could lead to a contraction of nearly five percent next year and as tensions with the United States over the Ukraine crisis increased.

The uncertainty pushed the yen up as traders looked for safer investments. The dollar was buying 117.75 yen early Tuesday against 117.81 yen in New York

The euro was at 146.48 yen from 146.50 yen, and $1.2441 from $1.2435.

The yen is considered a safe haven in times of turmoil.

Gold was at $1,198.07 an ounce compared with $1,210.54 late Monday.

source: business.inquirer.net

Asian stocks take breather after last week’s surge

HONG KONG–Asian markets were mixed Monday as traders took a breather after last week’s rally, but Shanghai hit a 21-month high on hopes of Chinese stimulus measures after a weak manufacturing report.

Wall Street Friday had provided a healthy lead, with the Dow and S&P 500 reaching new highs after Japan’s central bank said it would ramp up its own stimulus program to kickstart growth.

The dollar held on to Friday’s gains against the yen, sitting at seven-year highs. Friday’s news came days after the US Federal Reserve ended its own stimulus.

Sydney eased 0.36 percent, or 19.7 points, to 5,506.9, while Seoul dropped 0.58 percent, or 11.46 points, to close at 1,952.97.

Hong Kong ended 0.34 percent lower, dipping 82.09 points to 23,915.97. But Shanghai closed 0.41 percent higher, adding 9.85 points to 2,430.03, its highest since February last year.

Tokyo was shut for a public holiday.

Global markets and the dollar surged on Friday after the Bank of Japan said it would widen its asset-purchasing scheme to boost lending and try to avoid a recession.

After a jump in Asian shares, including a near-five percent rise in Tokyo, Wall Street powered ahead.

The Dow leapt 1.13 percent and the S&P 500 added 1.17 percent–both hitting all-time highs–while the Nasdaq gained 1.41 percent.

However, dealers took a breather for the first day of November trade, with profit-takers moving in.

Dollar at seven-year highs

China at the weekend released an index of manufacturing activity that showed growth slowed in October, the latest data indicating the world’s second-largest economy slowing down.

The official purchasing managers’ index (PMI) came in at 50.8 last month, the National Bureau of Statistics said, lower than 51.1 in September. Readings above 50 indicate growth while anything below points to contraction.

PMI tracks activity in China’s factories and workshops and is a closely watched indicator of the health of the economy.

On Monday a separate report by HSBC came in a 50.4, the strongest result since July.

“Overall, the manufacturing sector continued to stabilize in October; however, the sequential momentum likely weakened,” said HSBC. “The economy still shows clear signs of insufficient effective demand.”

The figures have raised hopes that Beijing will introduce new economy-boosting measures, with some analysts suggesting officials will cut the amount of cash banks must keep in reserve in order to boosting lending.

“More new infrastructure projects and continuous monetary easing might improve manufacturing for the coming months,” Haitong Securities said, according to Dow Jones Newswires.

On currency markets the dollar bought 112.76 yen–its highest since December 2007–against 112.25 yen Friday in New York.

The euro was at $1.2489 and 140.85 yen compared with $1.2525 and 140.71 yen.

Oil prices were mixed. US benchmark West Texas Intermediate for December delivery fell 39 cents to $80.15, while Brent crude was down 53 cents at $85.33.

The price of gold fell to $1,172.85 an ounce from $1,173.87 late Friday.

In other markets:

— Taipei rose 0.34 percent, or 30.10 points, to 9,004.86.

Taiwan Semiconductor Manufacturing Co. closed 0.38 percent higher at Tw$131.0, while Hon Hai Precision Industry gained 2.19 percent to Tw$98.1.

— Wellington climbed 0.56 percent, or 30.39 points, to 5,418.22.

Genesis Energy surged 2.99 percent to NZ$2.07 and Air New Zealand was steady at NZ$2.01.

— Manila ended 1.35 percent higher, adding 97.12 points to 7,312.85.

GT Capital Holdings gained 1.39 percent to 1,024 pesos while Philippine Long Distance Telephone rose 4.42 percent to 3,262 pesos.

— Jakarta closed flat, edging down 4.04 points to 5,085.51.

Carmaker Astra International rose 1.48 percent to 6,875 rupiah, while state miner Aneka Tambang lost 2.58 percent to 945 rupiah.

— Kuala Lumpur ended flat at 1,853.34.

Public Bank shed 0.3 percent to 18.48 ringgit, while budget carrier AirAsia gained 2.4 percent to 2.56 ringgit.

— Singapore closed 0.51 percent, or 16.59 points, higher at 3,290.84.

DBS Bank advanced 1.84 percent to end at Sg$18.82 and Singapore Telecom added 0.53 percent to finish at Sg$3.80.

— Bangkok closed down 0.31 percent, or 4.98 points, to 1,579.18.

Coal producer Banpu dropped 2.65 percent to 27.50 baht, while supermarket operator Big C Supercenter gained 3.43 percent to 241 baht.

— Mumbai ended little changed at 27,860.38.

Gail India fell 5.70 percent to 499.00 rupees, while Sesa Sterlite gained 2.17 percent to 261.30 rupees.

source: business.inquirer.net

Asian stocks down on recovery, Ebola worries

SEOUL — Asian stocks fell Thursday amid worries about the strength of US and European recoveries and the first American case of Ebola.

Keeping Score: Japan’s Nikkei 225 index lost 1.7 percent to 15,815.45 points and South Korea’s Kospi fell 0.9 percent to 1,973.31. Australia’s S&P/ASX 200 declined 0.7 percent to 5,295.7. Stocks in Southeast Asia also lost ground. Markets in Hong Kong and China were closed for a public holiday.

Slow German Data: A survey showed German manufacturing unexpectedly contracted in September for the first time in 15 months, the latest sign Europe is being hurt by sanctions imposed on Russia over its role in Ukraine.

US Manufacturing: A closely watched monthly survey by the Institute for Supply Management came in below expectations, helping to drive a selloff on Wall Street.

Ebola: US airlines were among the hardest hit as investors fretted people would be discouraged from traveling after reports of the country’s first case of Ebola.

Analyst Take: “Confirmation of a case of Ebola in the US has joined a growing list of bad news stories with geo-political tensions in Ukraine and Hong Kong, and growth concerns around China and Europe sapping risk appetite,” said Niall King of CMC Markets in a commentary.

Wall Street: The Dow Jones industrial average index lost 1.4 percent to 16,804.71. The broader Standard & Poor’s 500 declined 1.3 percent to 1,946.16 and the Nasdaq composite fell 1.6 percent to 4,422.09.

European Central Bank Focus: Caution prevailed among investors ahead of a meeting of European Central Bank policymakers. Though no change in interest rates is anticipated, there will be great interest in what ECB President Mario Draghi says about possible monetary stimulus following recent weak economic news in Europe.

US Data: The US Labor Department is due to report the number of people who applied for unemployment benefits last week. Economists forecast that weekly applications rose a slight 5,000 to a seasonally adjusted 298,000. The Commerce Department will report August factory orders. Orders in July rose 10.5 percent in their biggest one-month gain since 1992.

Energy: Benchmark US oil added 17 cents to $90.90 per barrel in electronic trading in New York. The contract fell 43 cents to settle at $90.73 on Wednesday. The price of oil was pushed down by plentiful supplies and a rise in the U.S. dollar — in which oil sales are priced — against other currencies.

Currencies: The dollar fell to 108.65 yen from 109.07 yen. The euro rose to $1.266 from $1.262.

source: business.inquirer.net

Asian shares slip on profit-taking

HONG KONG–Asian markets mostly slipped Monday on profit-taking after the big gains at the end of last week, while the dollar eased from more than six-year highs against the yen.

Investors seemed unimpressed after the Group of 20 said the world’s biggest economies were on track to achieve an extra 1.8 percent growth on top of current projections within five years.

Tokyo, which on Friday ended at an almost seven-year high, slipped 0.71 percent, or 115.27 points, to 16,205.90, while Sydney shed 1.29 percent, or 70.1 points, to 5,363.0. Seoul lost 0.71 percent, or 14.55 points, to 2,039.27.

Shanghai fell 1.70 percent, or 39.59 points, to 2,289.87 and Hong Kong sank 1.44 percent, or 350.67 points, to 23,955.49 as investors await the release Tuesday of preliminary manufacturing data out of China.

Desmond Chua, market analyst at CMC Markets in Singapore, said a series of economic reports had come in below expectations. He added that another weak reading “will underscore weakness in the Chinese economy.”

Wellington was the stand-out performer, jumping 1.06 percent, or 54.95 points, to 5,236.29 after the pro-business National Party won a resounding election victory at the weekend.

Regional markets ended last week on a high, helped by news that Scottish voters had rejected independence from the United Kingdom.

But there are still concerns about the Chinese economy as dealers look ahead to the release of HSBC’s purchasing managers index (PMI) that market watchers expect to indicate further weakness in the economy.

Softbank falls despite Alibaba surge

On Wall Street a surge in new listing Alibaba helped the Dow rise 0.08 percent Friday to hit a new record high. But the S&P 500 finished down 0.96 points and the Nasdaq dipped 0.30 percent.

Alibaba rallied 38.1 percent to $93.89 on its debut after its IPO raised a world record $25 billion.

However, in Tokyo Monday Softbank, which holds about a third of Alibaba’s shares, slipped 6.1 percent on profit-taking despite saying it would probably book a gain of about $4.6 billion from the IPO. The firm rose about 30 percent in the six weeks leading up to the listing.

The dollar bought 108.86 yen, compared with 108.99 yen in New York and sitting close to levels not seen since 2008. While it is well off the 109.21 yen earlier Friday in Asia, analysts are tipping it to break the 110 yen barrier soon.

The euro bought $1.2858 and 139.99 yen, against $1.2832 and 139.84 yen in US trade.

The G20 at the weekend said members could overcome geopolitical tensions and financial problems to boost global growth.

Finance ministers and central bank governors at the two-day meeting said in a communique that reforms agreed so far–including accelerating infrastructure investment, financial reform and encouraging free trade–could add 1.8 percent to GDP and create millions of new jobs.

But more work was needed to meet a desired two percent goal agreed in Sydney earlier this year.

In New Zealand investors cheered a third straight election win for the party of Prime Minister John Key, who has been credited with hauling the economy out of torpor following the financial crisis.

On oil markets US benchmark West Texas Intermediate for October delivery eased 40 cents to $92.01, while Brent crude for November fell 48 cents to $97.91 in afternoon trade.

Gold was at $1,213.14 an ounce at 1140 GMT, against $1,221.56 an ounce late Friday.

In other markets:

— Taipei closed down 1.14 percent, or 105.80 points, at 9,134.65.

Taiwan Semiconductor Manufacturing Co. shed 2.40 percent to Tw$122.0, while Hon Hai Precision was 0.50 percent lower at Tw$100.5.

— Manila was 0.10 percent lower, dipping 7.43 points to 7,279.86.

Philippine Long Distance Telephone Co. fell 0.97 percent to 3,270 pesos, while SM Prime Holdings bucked the trend to rise 1.13 percent to 17.90 pesos.

— Bangkok added 0.29 percent, or 4.60 points, to 1,589.51.

Concert promoters BEC World soared 5.56 percent to 47.50 baht, while Delta Electronics rose 2.81 percent to 64 baht.

– Kuala Lumpur lost 3.4 points, or 0.19 percent, to end at 1,846.05.

Tenaga Nasional shed 1.45 percent to 12.20 ringgit, Petronas Gas fell 0.17 percent to 22.98 and Sime Darby added 0.11 percent to 9.12 ringgit.

— Jakarta ended down 0.15 percent, or 7.78 points, at 5,219.80.

Cigarette maker Gudang Garam gained 1.80 percent to 56,500 rupiah, while telecoms firm Telekomunikasi Indonesia slipped 2.55 percent to 2,870 rupiah.

— Mumbai closed up 116.32, or 0.43 percent, at 27,206.74.

Gitanjali Gems gained 6.55 percent to 73.25 rupees, while Suzlon Energy slid 9.80 percent to 18.40 rupees.

— Singapore closed down 0.26 percent, or 8.48 points, at 3,296.57.

DBS Bank rose 0.22 percent to Sg$18.17 while oil rig maker Keppel Corp eased 0.47 percent to Sg$10.50.

source: business.inquirer.net

Asian stocks sink on global economy fears

HONG KONG – Asian stock markets were pummeled Monday by the possibility of slowing growth in China and a further reduction in U.S. central bank stimulus.

Stocks sank as investors sought out havens such as the Japanese yen, which strengthened to a seven week high against the dollar, and gold, which was at its highest in more than two months.

Investors were awaiting a two-day meeting of the U.S. Federal Reserve starting Tuesday, where officials are expected to reduce the central bank’s monthly bond buying by another $10 billion to $65 billion. Recent signs of a sustained recovery in the world’s biggest economy will play a big role in the decision by Fed officials to scale back stimulus for a second time.

Emerging markets have been propped up for years by investors seeking higher returns using a tide of so-called “easy money” from the Fed and other central banks but now that the end for those policies looks to be near, some investors are fleeing stocks. The turmoil has slammed some places particularly hard, such as Argentina, where the peso dropped 16 percent against the dollar over two days last week.

“The growing turmoil in emerging markets is inflicting damage on risk assets across the board and no letup is expected in the near term,” said Mitul Kotecha, head of global markets research for Asia at Credit Agricole CIB, in a report.

The global sell-off was triggered by the preliminary results Thursday of a survey showing that China’s massive manufacturing industry would contract in January for the first time in six months, the latest sign that a painful slowdown in the world’s No. 2 economy is likely to continue.

“We’ve seen brief slowdowns in China before,” said Michael Every, head of financial markets research for Asia-Pacific at Rabobank. “The difference is we don’t expect to see rapid acceleration again this time, because they’re trying to clamp down on credit growth to prevent nonperforming loans going even higher than they are.”

Japan’s Nikkei 225 sank 2.3 percent to 15,023.08 as they dollar edged higher to 102.42 yen from 102.38 late Friday. The yen has strengthened significantly in the past few days, which is negative for export stocks.

Hong Kong’s Hang Seng lost 2 percent to 21,987.65 and Seoul’s Kospi dropped 1.3 percent to 1,915.27. In mainland China, the Shanghai Composite Index dropped 0.7 percent to 2,031.24. Benchmarks in Taiwan, Singapore, Philippines, Indonesia and New Zealand also slipped.

The Australian stock market was closed for a holiday.

In the U.S. on Friday, the Dow finished down 2 percent at 15,879 and the Standard & Poor’s 500 fell 2.1 percent to 1,790. The Nasdaq composite fell 2.2 percent to 4,128.

The euro strengthened to $1.3683 from $1.3676.

In energy markets, benchmark crude for March delivery was up 6 cents to $96.70 in electronic trading on the New York Mercantile Exchange. The contract fell 68 cents to close at $96.64 on Friday.

source: business.inquirer.net

Asian stocks fall further on Wall Street decline

BEIJING  — Asian markets fell further Friday after overnight declines on Wall Street, weaker Chinese manufacturing and gloomy outlooks for South Korean automakers.

Oil edged up to stay above $95 a barrel after suffering its biggest one-day drop in 14 months.

Major indexes closed out 2013 at or near record highs, but investors seemed reluctant to chase more gains in the new year.

China’s benchmark Shanghai Composite Index shed 0.4 percent to 2,101.30, adding to the previous day’s 0.3 percent loss after an HSBC Corp. survey showed manufacturing activity weakened in December. Analysts said that suggested China’s modest economic recovery might be fading.

“We expect the upcoming set of data releases to show China’s economy losing steam in December,” said UBS economist Tao Wang in a report.

Hong Kong’s Hang Seng tumbled 1.2 percent to 23,045.5.

South Korea’s Kospi gave up 0.8 percent to 1,950.98 after Hyundai Motor Co. and Kia Motors Corp. said they expect 2014 to see their weakest sales growth in a decade.

Tokyo was closed for the last day of its New Year’s break.

Investors looked ahead to comments later Friday by U.S. Federal Reserve Chairman Ben Barnanke for indications about the possible pace of further reductions in monetary stimulus.

Elsewhere, Taiwan’s Taiex lost 0.5 percent to 8,572.16 and Sydney’s S&P ASX 200 declined 0.5 percent to 5,341.50. Singapore and Malaysia also fell.

New Zealand bucked the trend to add 0.5 percent to 5,129.26.

On Thursday, U.S. stocks fell despite data showing healthy December manufacturing growth. Analysts said prices were bound to pull back after higher corporate profits and Fed stimulus pushed markets to record levels in 2013.

The Standard & Poor’s 500 index turned in its worst performance in three weeks, declining 0.9 percent. The Dow Jones and the Nasdaq both slid 0.8 percent.

In Europe, Britain’s FTSE 100 closed down 0.5 percent on Thursday while France’s CAC-40 and Germany’s DAX both shed 1.6 percent.

In currency markets, the U.S. dollar edged up 104.8 yen. The euro was down 0.1 percent at $1.366.

Benchmark oil for February delivery gained 13 cents a barrel to $95.57 in electronic trading on the New York Mercantile Exchange. The contract plunged $2.98 the previous day to settle at $95.44.

source: business.inquirer.net

Asian stock markets subdued after Wall Street slip

MANILA, Philippines — Asian stock markets mostly flitted between gains and losses Wednesday after an improvement in U.S. service industries reinforced expectations the Federal Reserve will reduce monetary stimulus that has propelled stocks higher.

The Institute for Supply Management’s services index rose in October despite forecasts it would soften due to last month’s partial shutdown of the U.S. government. Investors concluded that it makes it more likely that the Fed will start reducing its bond purchases, which have kept interest rates low, within a few months.

Hong Kong’s Hang Seng inched up 0.2 percent to 23,091.45 and China’s Shanghai Composite added 0.3 percent to 2,164.64. India’s Sensex reversed early losses to rise 0.1 percent to 20,989.24. Benchmarks in Singapore and the Philippines were slightly lower.

Japan’s Nikkei 225 defied the narrow range, reversing early losses to rise 0.9 percent to 14,359.57.

“Nobody is buying,” said Francis Lun of GE Oriental Financial Group in Hong Kong. “I think the biggest news globally is the IPO debut of Twitter tomorrow,” he said.

Other analyst say investors remain cautious ahead of possible market moving data and policy meetings this week.

They include the European Central Bank meeting on Thursday where it may foreshadow a further reduction to record low interest rates and the advance estimate of U.S. third quarter economic growth due the same day. U.S. October jobs figures are due on Friday.

China’s leaders are also scheduled to meet in Beijing from November 9-12 to craft a new blueprint for the world’s No. 2 economy as its state-led growth model runs out of oomph.

On Wall Street, stocks took a break from a record-breaking run.

Some weak corporate earnings reports on Tuesday held the market back, pushing the major indexes slightly lower.

The S&P 500 index dropped 4.96 points, or 0.3 percent, to 1,762.97. The index is nine points below its record close of 1,771.95 set Oct. 29.

The Dow Jones industrial average fell 20.90 points, or 0.1 percent, to 15,618.22. The Nasdaq composite added 3.27, or less than 0.1 percent, at 3,939.86.

Benchmark crude for December delivery was up 50 cents at $93.87 in electronic trading at the New York Mercantile Exchange. The contract fell $1.25 to $93.37 a barrel on Monday.

In currencies, the euro rose to $1.3510 from $1.3476 late Tuesday. The dollar rose to 98.74 yen from 98.51 yen.

source: business.inquirer.net