Japan’s yen takes the spotlight in central bank week

SINGAPORE  – The U.S. dollar barely moved in Asian trades on Monday, even as sterling blipped higher and the yen dipped, as a Japanese holiday and a bunch of upcoming central bank meetings sucked the air out of markets.

The Bank of Japan’s policy meeting on Friday is the highlight of the week in Asia, after Governor Kazuo Ueda stoked speculation of an imminent move away from ultra-loose policy.

That’s made the BOJ somewhat of a standout in a week packed with central bank meetings, with the U.S. Federal Reserve seen doing a hawkish pause on Wednesday and Bank of England possibly raising rates one last time on Thursday.

The yen was flat versus the greenback between 147.63 and 147.88 per dollar, with markets in Japan closed for a national holiday. In the days since Ueda’s remarks about a early move from negative rates, it has dropped 1.3 percent and taken losses for 2023 to more than 11 percent.

Carol Kong, economist and currency strategist at Commonwealth Bank of Australia, said she expects the yen to be volatile leading up to the policy meeting and that investors may have potentially misinterpreted Ueda’s comments.

The recent spell of weakness in Japanese wages and possibility prices too could soften and push the BOJ farther from its inflation goal, the case for a BOJ policy tightening is still not very strong, Kong said.

“In terms of the direction of travel, dollar/yen can definitely track higher…particularly if Governor Ueda sounds dovish and dashes hopes of policy tightening at the upcoming meeting,” she said.

Wei-Liang Chang, FX and credit strategist at DBS Bank, said market participants expect the BOJ could give guidance on when its negative interest rate policy will be reversed and the path of rate hikes beyond that.

“Anticipation of new BOJ rate guidance could support the yen into the meeting date, with the FOMC meeting also contributing to volatility this week,” Chang said.

The dollar index was a tad lower at 105.23, with the euro up 0.12 percent at $1.0705. Sterling was last trading at $1.2395, up 0.1 percent on the day.

Stark divergences in economic growth and in yields will keep the dollar propped up mostly, investors expect, particularly against the euro. Sterling has slid nearly 6 percent against the dollar since mid-July, while the euro has dropped more than 5 percent as the UK labor market and economy and the euro zone economy slowed.

The European Central Bank raised interest rates to 4% last week but said this hike could be its last.

With Japan shut, cash Treasuries were untraded on Monday.

U.S. Treasury yields have been edging higher, with the two-year above the 5 percent threshold and up 25 bps this month, spurred by rising government spending and the anticipation of the Fed keeping rates high for longer faces to rein in inflation that’s still above target. Last week’s U.S. retail sales data played a part, reducing the odds of recession even further.

Futures are pricing in almost no chance that the Fed raises interest rates at the end of its two-day meeting next Wednesday.

The Bank of England is likely to hike interest rates for the 15th time and take benchmark borrowing costs to 5.5 percent, and markets are already looking for a pause in a massive tightening cycle that has policymakers worried about the cooling economy.

UK inflation figures for August are also due on Wednesday, just ahead of the meeting.

Meanwhile, oil prices are adding a layer of complication to central banks’ growth-inflation dilemmas. Oil is also on track for its biggest quarterly increase since Russia’s invasion of Ukraine in the first quarter of 2022.

Brent crude futures are at 10-month highs above $93 a barrel, after having posted a third weekly gain on supply tightness spearheaded by Saudi Arabian production cuts and some optimism around Chinese demand.

-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

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 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

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

Global stocks uninspired as focus turns towards US jobs data

LONDON — Global stock markets traded in fairly narrow ranges Thursday as the attention in markets shifted towards upcoming U.S. jobs data following the publication of the minutes to the Federal Reserve’s last board meeting.

KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was steady around its all-time closing high at 7,188, while Germany’s DAX fell 0.2 percent to 11,564. The CAC-40 in France was 0.2 percent lower at 4,891. U.S. stocks were poised for modest losses at the open with Dow futures and the broader S&P 500 futures down 0.2 percent.

FED MINUTES: U.S. central bank officials think they may need to accelerate interest rate hikes if a faster-growing economy leads to lower than expected unemployment. For now they believe they can stick to gradual increases, according to minutes of the Fed’s December meeting. Officials also discussed the impact of Donald Trump’s proposed economic stimulus program and attributed surging stock prices, rising bond rates and the stronger dollar following the election to investor enthusiasm over the president elect’s plans.

JUST THE PRECURSOR: The minutes were just a taster for the likely big economic event of the week — Friday’s publication of the nonfarm payrolls report for December. Though the upcoming moves by the incoming Trump administration are likely to have an impact on Fed rate hike predictions, the backdrop is likely to remain that the U.S. economy is growing strongly with unemployment falling steadily. Later Thursday, traders will have the monthly non-manufacturing survey from the Institute for Supply Management to digest.

ANALYST TAKE: “Given the uncertainties that lie ahead though, I expect it will be another volatile year in which expectations for interest rates will change on a regular basis,” said Craig Erlam, senior market analyst at OANDA.

UPBEAT ASIA: Solid figures out of China and Hong Kong raised investor optimism about the outlook for their economies. Caixin’s monthly purchasing managers index, or PMI, for the services industry posted its biggest rise in activity for 17 months in December. The Nikkei composite PMI for Hong Kong, meanwhile, showed that activity expanded for the first time since February 2015.

ASIA’S DAY: Japan’s benchmark Nikkei 225 index fell 0.4 percent to close at 19,520.69 a day after hitting its highest level in 13 months as the yen’s strength hurt shares of some exporters. South Korea’s Kospi edged 0.2 percent lower to 2,041.95 but Hong Kong’s Hang Seng rose 1.5 percent to 22,456.69. The Shanghai Composite index in mainland China added 0.2 percent to 3,165.41. Australia’s S&P/ASX 200 climbed 0.3 percent to 5,753.30.

CURRENCIES: The euro clawed back some further ground against the dollar, trading 0.2 percent higher at $1.0508, while the dollar slid 0.7 percent at 116.37.

ENERGY: Benchmark U.S. crude was up 36 cents at $53.62 a barrel while Brent rose 41 cents to $56.87 a barrel in London. TVJ

source: business.inquirer.net

China stock markets among world’s worst in 2016

SHANGHAI, China — China is the world’s second-largest economy and has one of the fastest growth rates of any G20 nation, but its stock markets have been among the worst performing in the world this year.

Starting with a botched attempt to reduce volatility that instead triggered a spectacular meltdown, Chinese bourses have spent the year struggling against feckless policymakers, massive capital flight and a languishing currency.

The benchmark Shanghai Composite Index (SCI) struggled towards the finish line Thursday down 12.5 percent for the year, compared to falls of 0.6 percent by the Hang Seng Index in Hong Kong and 2.2 percent for Japan’s Nikkei 300. Both markets are trading Friday.

As of Thursday, it had the worst showing among the 40-plus countries tracked by Wall Street Journal’s Market Data Center, behind even debt-ridden Portugal.

It is a significantly worse performance than 2015’s wild ride, when the SCI surged by 60 percent in the first half before plunging by more than 40 percent in under three months. Even so, it finished the year with an overall gain of 9.4 percent.

Then authorities brought in a “circuit breaker” mechanism in January to automatically shut down trading if prices plunged. It went into effect twice in one week, kicking off a self-reinforcing selling panic that spread to global markets, and was scrapped after just four days.

“The Chinese market had a meltdown this year, and so far it has only half recovered from that,” Northeast Securities analyst Shen Zhengyang told AFP, adding the market was still in “slow and gradual restoration”.

The chairman of the China Securities Regulatory Commission was sacked over the debacle.

His replacement, Liu Shiyu, has kept a low profile, hurting market confidence and leaving investors seeking direction, said Oliver Rui, a professor at the China Europe International Business School (CEIBS).

“People don’t understand much about the regulator’s policy direction,” he said, adding that the lack of clarity partly explained the market’s weak performance.

The falling yuan — lowered seven percent by the central bank over the year in the face of a surging dollar — has also driven investors abroad in search of better performance.

“When the yuan falls, market capital runs off overseas to hedge the risks,” said Dickie Wong, Hong Kong-based research director for Kingston Securities, adding it also made foreign investors “less optimistic about mainland companies”.

Missed connection

Even the year’s few bright spots have failed to live up to expectations.

Earlier this month, China launched a long-delayed programme connecting its second exchange in Shenzhen — which has lost 14.8 percent so far this year — with the bourse in Hong Kong.

The Hong Kong-Shenzhen Stock Connect builds on a similar scheme with Shanghai and gives foreign investors access to many mainland tech shares.

But it has so far failed to live up to the hype, with Shenzhen’s shares more expensive than those in Hong Kong, making it unattractive to foreign investors, while the entry threshold for mainlanders to buy Hong Kong shares was set as high as half a million yuan ($72,000).

Other anticipated reforms, such as a new system for initial public offerings (IPOs), have all failed to materialise or were quietly shelved after January’s drama.

Currently, the Chinese government — rather than the market — decides which companies offer shares and when, and at what price.

As a result Chinese flotations are always underpriced, which “sends the wrong signals to the market”, according to Oliver Rui of CEIBS.

Authorities should “not intervene too much” but “are always afraid that the market will lose control”, he told AFP.

“But if you do not let go, then you will never know if the market can accept the new system or not. Mistakes are a necessary step.”

‘Least profitable’

Unlike most global exchanges where institutions hold sway, China’s stock markets are dominated by small investors, heightening volatility and short-termism.

Government-backed funds injected billions of dollars into China’s markets in 2015 in an effort to stop them bleeding out, and still play a major role, ignoring profit, loss and everything in between, and creating huge price distortions.

“In such an environment, it’s quite difficult for investors to apply whatever money-making strategies that they have learned over the years,” said Citic Securities analyst Zhang Qun.

He called China’s stock market “the least profitable” option in China or abroad.

Even so, brokers are mildly optimistic about next year — but hedge their bets with huge ranges for their 2017 year-end forecasts.

China Merchant Securities projects the SCI at anything from 2,900 — a six percent decline — to 3,800, which would represent a leap of 23 percent.

“With the government taking tighter controls over the property market and bonds also falling, not many choices are left,” said Kingston’s Dickie Wong. “Funds must go somewhere and stocks are ultimately one choice.” CBB

source: business.inquirer.net

Australia to sell $13M bitcoins confiscated as proceeds of crime

CANBERRA, Australia — An official says about $13 million in bitcoins will be auctioned in Sydney in June after Australian police confiscated the digital currency as proceeds of crime.

Ernst & Young transaction partner Adam Nikitins said Tuesday that the accountancy firm is running the process, which is only the second such bitcoin auction in the world after the U.S. Marshals Service sold 144,000 bitcoins over two years ending in 2015 that had been confiscated from Ross Ulbricht, who founded the online drug bazaar Silk Road.

Bidders can register from Wednesday until June 7 for the 24,518 bitcoins on offer. The 48-hour sealed auction will take place from June 20.

Based on Tuesday’s bitcoin price of $533.80, the cryptocurrency is valued at almost $13.1 million.

source: business.inquirer.net

World stocks rise again on stimulus hopes, yuan’s gain

HONG KONG — World stock markets were mostly higher Tuesday as a strengthening yuan and hopes for more central bank stimulus gave investors relief from the mauling that markets have suffered so far this year.

KEEPING SCORE: European stocks were higher in early trading. France’s CAC 40 climbed 0.4 percent to 4,131.18 and Britain’s FTSE 100 added 0.2 percent to 5,831.64. Germany’s DAX dipped 0.3 percent to 9,181.45. U.S. benchmarks were poised to open sharply higher after a long weekend. Dow futures rallied 1.5 percent to 16,148.00 and broader S&P 500 futures jumped 1.5 percent to 1,886.40.

STIMULUS HOPES: Investor sentiment remained positive that central banks would continue to ease monetary policy thanks to comments from the head of the European Central Bank. With the ECB set to discuss policy measures on March 10, Mario Draghi told the European Parliament on Monday that the bank has a range of instruments it can deploy if it decides more stimulus is needed. Earlier, a disappointing report on Japanese economic growth also raised hopes for more policy easing.

RENMINBI RELIEF: China’s strengthening currency also helped boost sentiment. The yuan hovered near its strongest level so far this year a day after the central bank guided the currency, also known as the renminbi, sharply higher. Previous weakness in the yuan triggered worries the Chinese economy was in worse shape than thought. Meanwhile, new yuan loans jumped 71 percent in January, the official Xinhua news agency reported Tuesday, suggesting solid demand in the world’s No. 2 economy.

ANALYST’S TAKE: “Since the start of January everything went south and we really needed some positive news,” said Jackson Wong, associate director at Huarong International Securities. “Factors that were affecting the markets negatively have turned positive now: the yen is weaker, the renminbi is stronger, global markets like the U.S. are stabilizing. All the negative catalysts from January are turning better.”

ASIA’S DAY: Japan’s Nikkei 225 added 0.2 percent to close at 16,054.43 after soaring 7.2 percent the day before, which was its biggest daily gain since September. South Korea’s Kospi rose 1.4 percent to 1,888.30 and Hong Kong’s Hang Seng advanced 1.1 percent to 19,122.08. The Shanghai Composite Index in mainland China surged 3.3 percent to 2,836.57 and Australia’s S&P/ASX 200 was up 1.4 percent to 4,910.00. Benchmarks in Taiwan and most of Southeast Asia also rose.

ENERGY: Benchmark U.S. crude rose $1.28, or 4.4 percent, to $30.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $3.23 to settle at $29.44 a barrel on Friday. Brent crude, a benchmark for international oils, added $1.38 to $34.77 a barrel in London.

CURRENCIES: The dollar eased to 114.06 yen from 114.54 yen in Monday’s trading. The euro edged up to $1.1174 from $1.1168. TVJ

source: business.inquirer.net

Bitcoin’s ‘blockchain’ tech may transform banking

New York, United States—The technology that drives the shadowy cryptocurrency bitcoin is drawing interest from the established banking industry, which sees a potential to revolutionize the sector.

Although bitcoin and related virtual currencies are limited to a small set of transactions and are often associated with the underground economy, the so-called blockchain technology is gaining currency in the financial world.

A blockchain is essentially a shared, encrypted “ledger” that cannot be manipulated, offering promise for secure transactions that allow anyone to get an accurate accounting of money, property or other assets.

“The blockchain, which is the technology behind the encryption and e-certification, that is a technology which might very well be very useful,” said Jamie Dimon, chairman and chief executive of JPMorgan Chase at a conference earlier this year.

Leah Gerstner, a vice president for public affairs at American Express, said the financial group made its first investment in a digital currency company called Abra “as a way to get a better understanding of blockchain technology and explore its potential.”

Gerstner told AFP that “we believe blockchain technology is playing an important role.”

The use of blockchain began in 2009 with the introduction of bitcoin and other virtual currencies that are generated by complex chains of interactions among a huge network of computers around the planet, and are not backed by any government or central bank, unlike traditional currencies.

The blockchain offers potential to the traditional finance sector due to its ease of transaction with verification from any point on the platform.

“You can imagine a number of potential use cases for this technology in financial services across both business-to-consumer and business-to-business transactions—from international money transfers to stored value,” Gerstner said.

The Linux Foundation recently announced a new collaborative “Open Ledger” project to advance blockchain technology, teaming with tech firms such as IBM and Intel, stock exchanges and major banks including Wells Fargo and Mitsubishi UFJ.

“Distributed ledgers are poised to transform a wide range of industries” including banking and shipping, among others, said Jim Zemlin, executive director at The Linux Foundation.

Transparency, lower costs
Blockchain technology could lower the cost for many kinds of consumer cash transfers that now are handled by companies like Western Union and MoneyGram.

The banking industry could save $15 billion to $20 billion in transaction costs for international payments by using the technology, according to Banco Santander, which is working on its own virtual currency.

A consortium of global banks including Morgan Stanley, HSBC, UBS, Credit Suisse, Barclays, Societe Generale and Commerzbank are working with the finance tech startup R3 to use blockchain technology for a wide range of applications.

Others moving forward include Bank of America, Citigroup and Goldman Sachs, which is working on its own virtual currency that could cut out intermediaries for settlements between financial institutions.

The technology could help facilitate instantaneous, secure financial transfers which now sometimes can take days when moving internationally, according to blockchain backers.

“This would change the way settlements of securities are traditionally carried out,” said Prableen Bajpai, founding director of the India-based research firm FinFix.

The use of a cryptographic currency such as the one being developed by Goldman Sachs “facilitates rapid, secure and confirmed transactions via network, thereby eliminating the need for a third party,” Bajpai said.

“The results are extremely timely and efficient settlements.”

Another advantage is that transactions could be made without revealing identities and other information—which could be important for institutions trying to keep personal data secure from hackers.

But a number of issues need to be resolved before virtual currencies and blockchain technology become mainstream.

The anonymity of the transactions is something that concerns regulators seeking to crack down on money laundering, and financing of criminal or terrorist activity.

New York state, for example, is pressing to require the identification of those engaging in financial transactions.

Nonetheless, many see blockchain technology as the wave of the future.

“Ultimately, blockchain could become a way for those around the world who don’t have a bank account to make purchases on the Internet. And that could affect the banks, as well as credit card companies like American Express, MasterCard, and Visa,” says Ed Yardeni at Yardeni Research.

“Blockchain still needs to show that it can grow to the size of Visa’s or MasterCard’s networks. But there are certainly many smart folks throwing a lot of money at the technology, which may one day prove disruptive.”

source: business.inquirer.net

Factbox: What is Bitcoin?

TOKYO — Frenchman Mark Karpeles, 30, the CEO of collapsed Bitcoin exchange MtGox, has been arrested in Tokyo on theft allegations as Japanese investigators grill him over the disappearance of hundreds of millions of dollars worth of the virtual currency.

Here are some key facts about Bitcoin.

Q. What is it?

A. Bitcoin is a virtual currency that is created from computer code. Unlike a real-world currency like the US dollar or the euro, it has no central bank and is not backed by any government.

Instead, its community of users control and regulate it. Advocates say this makes it an efficient alternative to traditional currencies, because it is not subject to the whims of a state that may wish to devalue its money to inflate away debt, for example.

Just like other currencies, Bitcoins can be exchanged for goods and services — or for other currencies — provided the other party is willing to accept them.

Q. Where does it come from?

A. Bitcoin is based on a piece of software written by an unknown person or people in 2009 under the Japanese-sounding name Satoshi Nakamoto. Other digital currencies followed but Bitcoin was by far the most popular.

Transactions happen when heavily encrypted codes are passed across a computer network. The network as a whole monitors and verifies the transaction, in a process that is intended to ensure no single Bitcoin can be spent in more than one place simultaneously.

Users can “mine” Bitcoins — bring new ones into being — when their computers run these complicated and increasingly difficult processes.

However, the model is limited and only 21 million units will ever be created.

Q. What’s it worth?

A. Like any other currency, its value fluctuates. But unlike most real-world analogues, Bitcoin’s value has swung wildly in a short period.

When the unit first came into existence it was worth a few US cents. Its price topped out at well over $1,000 in 2013. Now, a single Bitcoin is worth about $235.

There are presently more than 14.5 million units in circulation. Some economists point to the fact that — because it is limited — its price will increase over the long run, making it less useful as a currency and more a vehicle to store value, like gold. But others point to Bitcoin’s volatility, security issues and other weaknesses.

Q. What’s the future?

A. Some commentators say that like many technological developments, the first iteration of a product will encounter difficulties, possibly terminal ones. But the trail it blazes might smooth the way for the next crypto currency.

Problems include an apparent vulnerability to theft when Bitcoins are stored in digital wallets. This may be what has happened at MtGox.

The virtual currency movement also faces legitimacy issues because of the way it allows for anonymous transactions — the very thing that libertarian adopters like about it.

Detractors say Bitcoin’s use on the underground Silk Road website, where users could buy drugs and guns with it, is proof that it is a bad thing.

Some governments, including Russia and China, have heavily restricted how Bitcoins can be used.

If Bitcoin does become more widely accepted, experts say, it could lead to more government regulations, which would negate the very attraction of the Bitcoin concept.

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

China, Singapore to allow direct trading between currencies

SINGAPORE—China and Singapore have agreed to allow direct trading between each other’s currency, Singapore’s central bank said Tuesday.

The move, along with other agreements on financial cooperation, is expected to bolster Singapore’s status as a leading offshore trading center for the Chinese yuan, officially called the renminbi(RMB).

“China and Singapore will introduce direct currency trading between the Chinese yuan and Singapore dollar,” the Monetary Authority of Singapore (MAS) said in a statement, adding that details will be announced separately.

The statement was issued after a meeting between senior officials from both countries led by Singapore Deputy Prime Minister Teo Chee Hean and visiting Chinese Vice Premier Zhang Gaoli.

China will also grant Singapore-based investors a 50 billion yuan ($8.2 billion) investment quota under its Renminbi Qualified Foreign Institutional Investor program, MAS said.

This would allow investors based in the city-state to use the yuan to invest in Chinese stocks and bonds.

The program “will help to diversify the base of investors in China’s capital markets and promote adoption of the RMB for investment”, MAS said.

Chinese institutional investors will also be allowed to use the yuan to invest in Singapore’s capital markets.

“The new initiatives will further promote the international use of the renminbi through Singapore,” the MAS said.

Its managing director Ravi Menon added: “Financial ties between the two countries have deepened considerably and Singapore is well placed to promote greater use of the RMB in international trade and investment in the years to come.”

China’s rise as the world’s second-biggest economy has seen the yuan take on a bigger role in international financial markets.

Britain last week said that direct trading between the yuan and the British pound will be allowed.

China also has similar direct trading arrangements for the yuan with the US dollar, the Japanese yen and the Australian dollar.

source: business.inquirer.net

Dollar sags in Asia on Syrian tension

TOKYO—The dollar edged down against the safe-haven yen in Asia on Tuesday due to concerns over a possible US military action against Syria.

The dollar was at 98.29 yen in Tokyo afternoon trade, down from 98.51 yen in New York Monday afternoon.

The euro bought $1.3373 and 131.45 yen compared with $1.3369 and 131.68 yen.

The greenback lost ground in the wake of a decline in Tokyo stocks and due to concerns over a possible US military strike against Syria, said a dealer at a Japanese bank.

“The possibility of the US military attacks could make investors risk averse, weighing on the dollar,” he told Dow Jones Newswires.

US Secretary of State John Kerry gave the most explicit warning yet to Damascus that the US would take action over the chemical weapons attack, which he labelled a “moral obscenity”.

Speaking amid reports that Washington and its allies are preparing to launch a punitive cruise missile strike on Syrian targets, Kerry accused Bashar al-Assad’s regime of engaging in a cover-up.

“Let me be clear. The indiscriminate slaughter of civilians, the killing of women and children and innocent bystanders by chemical weapons is a moral obscenity,” he declared in a televised statement.

“By any standard it is inexcusable, and despite the excuses and equivocations that some have manufactured, it is undeniable.”

Emerging Asia currencies were mostly lower, with the Indian rupee trading at 65.32 to the dollar, down from 64.23 Monday afternoon and close to a record low of 65.56 last week.

Expectations of an end to the US stimulus programme have seen investors in recent months repatriate some of the vast sums that have poured into emerging economies, hitting currencies and equities.

“Coming on the heels of Friday’s soft US new home sales report, the market has become even more alert to the (US) economy’s readings into the September 18 FOMC,” National Australia Bank said.

Some speculate the US central bank would announce its start of tapering the bond-buying programme at the next September 17-18 meeting of the policy-setting Federal Open Market Committee.

The dollar rose to 10,925 Indonesian rupiah from 10,770 on Monday.

It went up to 44.43 Philippine pesos from 44.20 pesos, to 1,115.85 South Korean won from 1,113.20 won, and to Sg$1.2824 from Sg$1.2791, and to Tw$29.97 from Tw$29.89.

The Thai baht was flat at 32.16 baht.

The Australian dollar fell to 89.81 US cents from rose to 90.39 cents. The Chinese yuan fetched 16.03 yen against 16.07 yen.

source: business.inquirer.net