Month: November 2015

Asian stocks get a boost from US lead, firm oil price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian stocks rallied early Wednesday, thanks to a positive lead from Wall Street and firmer crude oil prices.

Overnight, a fifth straight day of gains for energy counters alongside a rise in tech majors helped propel major US averages.

The Dow Jones Industrial Average and S&P 500 ended up 0.5 and 0.3 percent respectively, while the tech-heavy Nasdaq Composite gained 0.4 percent. The Nasdaq 100 closed up 0.3 percent at 4,719.05, topping its previous record close set in March 2000 during the dotcom bubble.

“Part of [the rise in energy stocks] was due to news of possible supply disruption in Brazil and Libya, pushing the price of Brent crude higher and in general, there’s a tight correlation between the movements in Brent and energy stocks. I see a favorable backdrop for investing in energy: cheap valuations, low expectations and I think oil prices could move higher from here so that’s a good formula for success,” Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds, told CNBC.

Nikkei leaps 2 percent

Japan’s Nikkei 225 index rose as it played catch-up with its regional peers after being closed for a public holiday in the previous trading session.

Among gainers, Inpex and JX Holdings surged 5.6 and 4.2 percent respectively on the back of a near 4 percent leap in oil prices. Nissan rallied 3.8 percent as investors cheered the announcement of a 38 percent jump in profit for the July-September quarter.

Meanwhile, Japan Post Holdings opened up 15.5 percent to 1,617 yen in its Tokyo debut on Tuesday, following a massive initial public offering (IPO) that amounted to USD 11.5 billion. The long-awaited market debut topped the IPO price of 1,400 yen.

Japan Post Bank also jumped more than 15 percent to 1,652 yen, versus an IPO price of 1,450 yen. Japan Post Insurance remains untraded as of 9.38am local time.

Takata’s stock bucked the uptrend following news that it could be fined up to USD 200 million for lapses in its recall of faulty air bag inflators.. Shares of the air bag maker slumped 3.1 percent from the get-go.

China stocks up

China’s key Shanghai Composite index nudged up 0.4 percent at the open, while the blue-chip CSI300 index advanced 0.5 percent.

Hong Kong’s Hang Seng index outpaced its mainland peers to notch up nearly 1 percent.

Taiex rises 0.9 percent

Taiwan’s weighted index hit its highest level since July 24, with tech plays getting a boost from gains in their US counterparts.

Large-cap Taiwan Semiconductor Manufacturing Co. rallied 1.4 percent, while key tech names such as Catcher Technology and Hon Hai Precision Industry climbed 1.7 and 0.8 percent respectively.

ASX jumps 0.8 percent

Australia’s benchmark S&P ASX 200 index extended gains on Wednesday, underpinned by jumps in miners and banks.

Commonwealth Bank of Australia and National Australia Bank rose more than 1 percent each, while Westpac gained 0.9 percent. Market bellwether BHP Billiton advanced 2.7 percent, while Rio Tinto and Fortescue Metals climbed 1 and 1.9 percent respectively.

Woodside Petroleum, Santos and Oil Search rose between 0.2 and 1.1 percent.

Retailers were bolstered by data which showed a 0.4 percent rise in September retail sales, in line with expectations. Harvey Norman and JB Hi-Fi widened gains to 1.4 and 0.9 percent each, while Myer recouped early losses to add 0.5 percent.

Kospi slips 0.2 percent

South Korea’s Kospi index turned negative after the bourse’s top weighted stock Samsung Electronics receded 1.3 percent.

Among early-trade winners, SK Innovation rose 2.1 percent, while S-Oil and GS Holdings rallied more than 1 percent each.

Automakers such as Hyundai Motor and Kia Motors made modest advances, a day after surging more than 2 and 4 percent on the back of industry data which showed a rise in domestic auto sales last month.

Elsewhere in the region, policymakers in Thailand will commence their monthly monetary policy meeting on Wednesday. According to HSBC’s economist Nalin Chutchotitham, the Bank of Thailand is in no hurry to cut rates after the announcement of stimulus measures worth a combined 364 billion baht (USD 11.2 billion) earlier this month.

In addition, comments from Governor Veerathai Santiprabhob on October 21 about how a prolonged low-rates environment may compromise long-term economic stability suggest “lingering reservations about lowering rates further,” Chutchotitham added in a note dated October 30.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Victoria’s Secret debuts $2M Fantasy Bra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Victoria’s Secret has lifted the lid on its always much-anticipated Fantasy Bra, which will be featured on the runway at its annual Fashion Show next week.

The L Brands-owned lingerie label on Monday debuted its Fireworks Fantasy Bra and detachable belt, valued at USD 2 million. The Mouawad-designed bra features more than 6,500 precious gems, including diamonds, yellow sapphires and blue topaz, and is set in 18-karat gold.

It’s the second-straight year when the showstopper has been worth USD 2 million, although last year’s show — held in London for the first time — featured two Fantasy Bras.

The honors this year will be done by Victoria’s Secret Angel Lily Aldridge, who will wear the bra for the first time.

For those of you who don’t have millions to spend on lingerie, the piece was based off Victoria’s Secret’s Very Sexy Flirt bra, which goes on sale Nov. 11 and will retail in the double — not seven — figures.

The Victoria’s Secret Fashion Show returns to New York City next week, and will air Dec. 8 on CBS.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wall Street rally takes Asian shares higher

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian equity markets staged a comeback on Tuesday, with investors encouraged by the upbeat handover from Wall Street.

Major US averages climbed nearly 1 percent or more overnight, helped by gains in energy and healthcare counters.

The Nasdaq Composite led advances with a rise of 1.5 percent, while the Dow Jones Industrial Average closed up 0.9 percent. The S&P 500 gained more than 1 percent to top 2,100 points. The last time the index crossed 2,100 in intraday trade was August 18, and its last close above that level was on August 17.

Mainland stocks edge up

China’s key Shanghai Composite index nudged up 0.1 percent amid jitters surrounding a crackdown on illegal futures trading and ongoing anticorruption investigations into companies such as Dongfeng Motor Group.

According to state-owned Xinhua news agency, the manager of Zexi Investment, Xu Xiang, was detained by police on Sunday. Xu, one of China’s largest private money managers, is being investigated on charges of suspected insider trading. Meanwhile, the President of Agricultural Bank of China, Zhang Yun, was taken away to assist authorities with an investigation, the Financial Times reported Monday, citing local media reports from Sina Finance and QQ Finance.

The latest developments come as Beijing intensified a probe on alleged market manipulation following a dramatic meltdown in its equity markets earlier in June and July.

Meanwhile, the Communist Party’s anti-graft regulator said Monday it is investigating the president of Dongfeng Motor Group —China’s second-biggest automaker by sales— for “suspected severe violation of discipline”. Discipline violations generally refer to corruption.

Shares of the Shenzhen-listed automaker retreated 2.5 percent early Tuesday in reaction to the news.

ASX jumps 1.2 percent

A broad-based rally led Australia’s S&P ASX 200 index up from Monday’s three-week low, as investors await the Reserve Bank of Australia’s (RBA) policy decision due at 2.30pm local time.

The central bank is expected to hold interest rates steady at its monthly meeting today, according to a report by Natixis dated October 29.

The cash rate is already at a historically low level and there are no specially negative news coming from the real economy or the currency, we argue that the RBA will prefer to save its ammunition by keeping the cash rate on hold at 2.00 percent at the November 3 meeting,” wrote Natixis’ chief economist for Asia Pacific, Alicia Garcia Herrero.

Also grabbing attention is the Melbourne Cup, Australia’s premier annual horse race, which could result in thin trading volumes on Tuesday.

Westpac rallied 1.3 percent, a day after tumbling 2.5 percent on the back of delivering its annual cash profit numbers. Australia and New Zealand Bank, Commonwealth Bank of Australia and National Australia Bank jumped between 0.9 and 1.4 percent.

Market bellwether BHP Billiton advanced 1.6 percent, while rivals such as Rio Tinto and Fortescue Metals piled on 1 percent each.

Oil and gas producer Santos extended gains by surging 3.8 percent, a day after announcing the sale of its Stag oil field to Malaysia’s Sona Petroleum.

Gold-related counters were mixed after gold prices slipped to four-week lows in the prior trading session. Evolution Mining and Endeavour Mining dropped 1.9 and 0.3 percent respectively, while Newcrest Mining clawed back early losses to tick up 0.2 percent.

Kospi gains 0.8 percent

South Korea’s Kospi index headed north, thanks to hefty buy orders for the shares of carmakers.

Hyundai Motor and Kia Motors climbed 2.5 and 3.4 percent respectively, given a lift by industry data released on Monday which showed October auto sales in South Korea rose 8.7 percent from a year ago period. Ssangyong Motor gained 0.4 percent.

However, the bourse’s heaviest weighted stock Samsung Electronics eased 0.7 percent.

On the domestic data front, inflation in Asia’s fourth-biggest economy unexpectedly rose at the fastest pace in almost a year, according to official data released prior to Tuesday’s market open. The consumer price index (CPI) increased 0.9 percent in October from a year earlier, beating expectations for a 0.8 percent gain and compared with a 0.6 percent advance in September.

Elsewhere in the region, Hong Kong releases September retail sales at 4.30 am local time. Markets in Japan are closed for the Culture Day holiday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China Caixin October PMI rises to 48.3 vs 47.2 in September

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s factory activity fell for an eighth straight month in October but at a slower pace as export orders flickered into life, a private survey showed on Monday, pointing to continued sluggishness in the world’s second-largest economy.

The Caixin/Markit China Manufacturing Purchasing Managers’ Index(PMI) edged up to 48.3 in October from 47.2 in September.

The highest reading since June 2015 will likely fuel hopes that the industry’s long slump may be bottoming out. But it remained well below the 50 mark, signifying a further contraction that will raise doubts about whether China’s economy could see a modest pick-up in the fourth quarter.

Taken together with official factory and services sector surveys released on Sunday, the readings reinforced most economists’ views that business conditions in China are continuing to cool at a gradual albeit uneven rate, with no signs of a hard landing which recently spooked global investors.

Suggesting some improvement in soft global demand, the Caixin survey showed new export orders expanded for the first time since June, albeit marginally. The sub-index rose to 50.7 from 44.6 in September.

Demand at home remained sluggish, however. The overall new orders sub-index, which covers domestic and export orders, shrank for the fourth month in a row in October, though the contraction was more modest than in September.

“The slight upswing shows the manufacturing industry’s overall weakening has slowed down, indicating that previous stimulus measures have begun to take effect,” said He Fan, Chief Economist at Caixin Insight Group.

Manufacturers shed jobs for the 24th straight month on weakening sales, but again the rate of reduction was the weakest in three months.

China’s official factory survey released on Sunday showed activity unexpectedly shrank for a third straight month, though the contraction was modest. The NBS survey pointed to weaker export orders and further layoffs.

The private survey focuses on small and mid-sized companies, which are facing greater strains from the economic slowdown, while the official gauge looks more at larger, state firms.

MORE POLICY SUPPORT EXPECTED

“The data reinforce our view that the last PBOC interest rate cut (announced on Oct 23) was to preempt weak October activity data,” ING economists said in a note.

“In addition to setting global investor sentiment to risk-off, we think they will raise the consensus forecast for PBOC rate cuts.”

Beijing has rolled out a flurry of support steps since last year to avert a sharper slowdown, including slashing interest rates six times since November. But such measures have been slower to take effect than in the past, and economists remain wary about the outlook.

“Weak aggregate demand remained the biggest obstacle to economic growth, and the risk of deflation resulting from the continued fall in the prices of bulk commodities needs attention,” said He.

China’s economy grew 6.9 percent between July and September from a year earlier, dipping below 7 percent for the first time since the global financial crisis, though some market watchers believe real growth levels are much lower than official data suggest.

Weighed down by a property downturn, weak exports, factory overcapacity and high levels of local debt, growth is expected to slow to a quarter-century low of around 7 percent this year.

Many economists have expected that economic growth would bottom out in the third quarter, with a modest improvement late this year and into early 2016 as additional stimulus measures gradually take effect.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian mkts mixed as China Caixin PMI falls for 8th month

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian stocks held on to losses early Monday, even as a private survey of China’s mammoth manufacturing sector indicated factory activity fell for an eighth straight month in October, but at a slower pace.

Caixin’s final purchasing managers’ index (PMI) for October stood at 48.3, official data showed, better than Reuters’ estimate of 47.50 and recovering from September’s fresh six-and-a-half year low of 47.2.

Over the weekend, China’s official purchasing managers’ index (PMI) came in at 49.8 for October, according to data from the National Bureau of Statistics (NBS), contracting for a third straight month. The reading was unchanged from the previous month but missed market expectations of 50.0, adding to fears that the world’s second-biggest economy may be stalling despite the latest slew of stimulus.

China markets down

Share markets in China opened down on Monday, with the key Shanghai Composite index easing 0.7 percent.

Blue-chips mostly fell, with Industrial and Commercial Bank of China (ICBC) slipping 0.2 percent and heavyweight PetroChina down 1 percent.

Among other indexes, both the blue-chip CSI300 and the Shenzhen Composite fell 0.7 and 0.5 percent respectively, while Hong Kong’s Hang Seng index headed down 1 percent.

Nikkei skids 1.7 percent

Japan’s Nikkei 225 index pulled back from Friday’s two-month high, falling below the 19,000 mark in early trade.

Stocks with heavy exposure to the mainland traded on the back foot amid more China-related concerns. Steel producers Nippon Steel and Sumitomo Metal tumbled 5.8 percent, while JFE Holdings and Nisshin Steel slumped 3.9 and 2.9 percent respectively. Construction equipment makers Komatsu and Hitachi Construction Machinery Co declined more than 1 percent each.

Banking stocks were also sold off, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group down more than 2 percent each.

Kospi adds 0.1 percent

South Korea’s Kospi index outperformed regional peers early Monday, thanks to modest gains in the bourse’s top two weighted stocks.

Samsung Electronics and Hyundai Motor elevated 0.7 and 0.3 percent respectively, while chipmaker SK Hynix climbed 1.5 percent.

On the domestic data front, South Korea’s September current account surplus touched a three-month high of USD 9.76 billion on a seasonally adjusted basis, central bank data showed on Monday. Exports fell 0.9 percent to USD 44.5 billion in September, while imports dropped 7.8 percent to USD 33.2 billion, the data showed. This produced a goods account surplus of USD 11.3 billion.

ASX sags 1.3 percent

Australia’s S&P ASX 200 index hit its lowest level since October 14, on course to chalk up its sixth session of losses, as financials headed south.

Westpac more than doubled losses to 2 percent, despite the country’s No.3 lender by assets on Monday posting a 3 percent rise in annual cash profit. Australia and New Zealand Banking, National Australia Bank and Commonwealth Bank of Australia sagged more than 1 percent each.

Investment bank Macquarie Group tumbled 3.2 percent on news that it was planning a share purchase plan.

Gold prices at three-week lows sapped appetite for related stocks down under. Evolution Mining and Endeavor Mining fell 3.4 and 2.1 percent respectively.

Santos, which remains in the spotlight as investors await the next move from bidders keen on the oil and gas producer’s assets, rallied 3.1 percent.

Meanwhile, the Turkish lira hit 2.9146 per dollar on Monday, hitting its strongest since August 17, following news that the ruling AK partysurged to victory in national elections on Sunday.

Wall Street finished weaker last Friday amid a mixed bag of earnings report. The blue-chip Dow Jones Industrial Average and S&P 500closed down 0.5 percent each, while the Nasdaq Composite shed 0.4 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow