Tokyo stocks open lower on weak tech shares

TOKYO -- Tokyo stocks opened lower Wednesday, dragged down by technology shares that tracked an overnight decline of U.S. counterparts.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 518.06 points, or 1.55 percent, from Tuesday to 32,958.52. The broader Topix index was down 26.29 points, or 1.12 percent, at 2,311.07.

On the top-tier Prime Market, decliners included securities house, insurance, and electric power and gas issues.

At 9 a.m., the dollar fetched 142.95-98 yen compared with 143.29-39 yen in New York and 142.71-73 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.1006-1010 and 157.33-42 yen against $1.0979-0989 and 157.40-50 yen in New York, and $1.0979-0980 and 156.69-73 yen in Tokyo late Tuesday afternoon.

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 rise after calm night in China

HONG KONG –– Asian equities rose and the dollar weakened Tuesday as China avoided another night of protests after a weekend of unrest across the country fueled uncertainty in the world's number two economy.

The gains were led by a rally in Hong Kong and Shanghai, with property firms enjoying a much-needed surge on the back of moves to ease funding restrictions on troubled developers.

However, the sentiment was tempered by warnings from top Federal Reserve policymakers that US interest rates would rise further and could go higher than initially thought to fight inflation.

The remarks were partly to blame for big losses of more than 1 percent in Wall Street's 3 main indexes.

China was rocked by demonstrations at the weekend calling for more political freedoms and an end to the country's long-running and economically painful zero-COVID strategy that has seen millions thrown into lockdown for months.

Several arrests were made and security forces were out in force Monday to prevent a repeat of the protests, which were the most widespread since pro-democracy demonstrations were crushed in 1989.

The return of some calm helped Hong Kong stocks rally more than 3 percent and Shanghai more than 1 percent, with some commentators suggesting the unrest could actually help push leaders to ease some of the strict containment measures. 

Property firms were among the best performers after China said it would end a ban on firms raising cash by selling stocks, marking the latest measure to ease pressure on the sector, which has seen several companies collapse and threatens the wider economy.

Sydney, Seoul, Singapore, Wellington, Taipei and Jakarta were also in positive territory, though Tokyo dipped with Manila.

Attention is turning to the United States this week with a number of Fed officials due to speak, including boss Jerome Powell, while Friday sees the release of key jobs data, which could provide an idea about the bank's plans for monetary policy.

Bets on a slowdown in its pace of rate hikes have boosted markets for the past weeks, but some high-ranking members on Monday looked to play down the chances of a more dovish pivot.

St. Louis Fed chief James Bullard warned "markets are underpricing a little bit the risk that the (policy board) will have to be more aggressive rather than less aggressive in order to contain the very substantial inflation that we have in the US".

And Richmond Fed president Thomas Barkin added: "I'm very supportive of a path that is slower, probably longer and potentially higher than where we were before."

The officials indicated borrowing costs would not likely come down until the end of next year or in 2024.

Key figures around 10:30 a.m. in Manila 

Tokyo - Nikkei 225: DOWN 0.6 percent at 27,999.82 (break)

Hong Kong - Hang Seng Index: UP 3.6 percent at 17,920.01

Shanghai - Composite: UP 1.6 percent at 3,128.24

Euro/dollar: UP at $1.0357 from $1.0347 on Monday

Dollar/yen: DOWN at 138.85 yen from 138.87 yen

Pound/dollar: UP at $1.1992 from $1.1952

Euro/pound: DOWN at 86.40 pence from 86.50 pence

West Texas Intermediate: FLAT at $77.24 per barrel

Brent North Sea crude: UP 0.2 percent at $83.34 per barrel

New York - Dow: DOWN 1.5 percent at 33,849.46 (close)

London - FTSE 100: DOWN 0.2 percent at 7,474.02 (close)

Agence France-Presse

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

Tokyo stocks open up 0.63 percent

TOKYO – Tokyo stocks opened 0.63 percent higher on Monday as investors awaited developments on the European debt crisis ahead of crucial talks by the region’s leaders.

The benchmark Nikkei index at the Tokyo Stock Exchange opened up 54.03 points at 8,697.78.

The Nikkei will likely struggle for a clear direction before a series of important meetings in Europe this week, said Hiroichi Nishi, general manager of equity division at SMBC Nikko Securities.

“Investors are likely to wait to assess development(s) at many important meetings in Europe,” Nishi told Dow Jones Newswires.

German Chancellor Angela Merkel and French President Nicolas Sarkozy are due to meet later Monday. European Union summit talks are planned for Thursday and Friday.

Italy on Sunday unveiled a draconian austerity programme worth 20 billion euros ($27 billion) in an effort to avoid bankruptcy for the eurozone’s third largest economy but warned a new recession was looming.

The euro bought $1.3417 and 104.73 yen in early Asian trade Monday, up from $1.3403 and 104.56 yen in New York late Friday. The dollar was almost unchanged, trading at 78.05 yen.

Nishi said some sense of overheating had emerged in the Nikkei index over the past few sessions with eased concerns over the European sovereign debt crisis and the US economy.

Closely watched US jobs data showed Friday that the unemployment rate sank to a 32-month low of 8.6 percent in November. The blue-chip Dow Jones Industrial Average rose 0.01 percent to end at 12,019.42.


source: http://business.inquirer.net/33561/tokyo-stocks-open-up-0-63-percent