Month: May 2016

Asian stocks mostly higher; Nikkei up 0.5%

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

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Asian markets were mostly higher on Tuesday as traders digested better-than-expected industrial output data from Japan and worse-than-expected data from South Korea.

The Nikkei 225 was up 0.49 percent after trading flat earlier in the session, while in South Korea, the Kospi climbed 0.39 percent.

Australia’s ASX 200 was 0.42 percent lower, weighed by its energy subindex, which shed 1.35 percent, but that follows a 5.6 percent gain over the past four sessions.

Chinese mainland markets were performing better, with the Shanghai Composite up 2.12 percent and the Shenzhen composite up 2.418 percent. In Hong Kong, the Hang Seng index was 0.94 percent higher.

Japan’s industrial output in April saw a 0.3 percent increase from March, beating expectations for a 1.5 percent fall. The better-than-expected data suggested that production was holding up despite weaker exports and impact from the Kumamoto earthquakes, Reuters reported.

Japan’s April household spending fell 0.4 percent year-on-year, the second month of declines, but still came in better than expected, while unemployment rate held steady at 3.2 percent.

After the data, the US dollar/ Japanese yen pair fell as low as 110.77 from levels around 111 before the data. But it recovered to trade at 111.06 at 10:42 a.m. SIN/HK. A weaker yen is generally seen as a positive for Japanese stocks.

Shares of LG Electronics were up 1.26 percent. Daiwa Capital Markets initiated coverage of the stock at “Outperform,” saying the company, a consumer electronics giant, will see strong earnings growth driven by its “market-leader status in OLED TVs” as well as its appliance and vehicle-components businesses.

Virgin Australia shares surged 5.36 percent after it announced on Tuesday that China’s HNA Aviation would buy a 13 percent stake in the Australian airline for AUSD 159 million (USD 114 million). The Australia-China airline alliance is to capitalize on the growing tourism market between the two countries, Reuters reported.

The Australian Bureau of Statistics released data showing Australia’s first-quarter current account deficit was AUSD 20.8 billion, compared with Reuters forecasts of the deficit at AUSD 19.5 billion.

The Australian dollar strengthened against the greenback to USD 0.7229 as of 10:04 a.m. HK/SIN.

South Korea saw industrial activity in April slow by 1.3 percent on-month, the second straight month of declines, coming in worse than a Reuters forecast for a 0.2 percent decline. The service sector output rose by 0.5 percent in the same period.

Meanwhile, the dollar, which had firmed on the back of Federal Reserve rate hike expectations, lost steam on Tuesday, trading against a basket of currencies at 95.709 early Tuesday, after climbing as high as 95.968 in Monday’s session.

India is set to announce its full-year gross domestic product growth.

Brent crude futures were trading at USD 49.67 a barrel, down from the settlement price at USD 49.76 a barrel, while Nymex crude had no settlement but it traded at USD 49.51 a barrel, up 18 cents at 10:05 a.m. HK/SIN time. US were shut on Monday for the Memorial Day holiday.

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

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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 markets trade mixed, Nikkei up 0.7%, Shanghai down 0.4%

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

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Asian stocks trading mixed Monday, despite futures pointing to a higher open.

Australia’s ASX 200 was trading effectively flat, weighed by a 0.81 percent decline in its materials subindex.

Major Australian resource producers were under pressure, with Rio Tinto dipped 0.13 percent, Fortescue Metals down 1.32 percent and BHP Billiton was lower by 0.1 percent.

Japan’s benchmark Nikkei 225 index was up 0.72 percent; while Hong Kong’s Hang Seng index opened higher by 0.17 percent.

Chinese markets were lower, with the Shanghai composite lower by 0.43 percent and the Shenzhen composite dropping 0.821 percent.

Across the Korean Strait, the Kospi was down 0.36 percent, despite a South Korean central bank survey of 1,700 manufacturers showing that business confidence was at a seven-month high.

Japan’s April retail sales fell 0.8 percent year-on-year, compared to market consensus for a 1.2 percent decline, according to Reuters.

Over the weekend, a Japanese government source told news media that Prime Minister Shinzo Abe would most likely postpone the consumption tax hike for fear of upsetting the fragile economy.

In the energy markets, Brent crude was trading at USD 49.38 a barrel, after climbing as high as USD 50.51 last Friday, while US crude was trading at USD 49.41, up 8 cents from its last settlement.

Australia’s Santos was lower 0.44 percent while Oil Search was up 1.17 percent; Japan’s Inpex was up 0.50 percent.

On the currency front, the US dollar/ Japanese yen currency pair was trading at 110.80 at 8:15 a.m. HK/SIN time. A weaker yen is generally a positive for exporter as it increases overseas profits when converted into local currency.

The Australian dollar was trading at 0.7171 against the dollar at 8:30 a.m. HK/SIN time.

“The Aussie dollar is looking increasingly steady below the USD 0.72 level. A trip below USD 0.70 may not be far off if we see strong US economic data this week,” said Angus Nicholson, market analyst at IG, in a Monday note.

The US dollar currency index, which measures the dollar against a basket of currencies, was up 0.42 percent at 95.92.

Last Friday, the dollar had rallied as much as 0.62 percent to 95.76, its highest levels since March 29, after Federal Reserve Chair Janet Yellen said a rate hike in the coming months “would be appropriate,” reported Reuters.

The Dow Jones industrial average closed up 0.25 percent at 17,873.22 on Friday, while the S&P 500 ended 0.43 percent higher at 2,099.06 and the Nasdaq composite closed up 0.5 percent at 4,926.

US markets will be closed Monday for Memorial Day while the UK is also shuttered for a public 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

Medical experts want Rio Olympics delayed or moved due to Zika

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

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More than 100 medical experts, academia and scientists on Friday have called for the Rio Olympic Games to be postponed or moved because of fears that the event could speed up the spread of the Zika virus around the world.

Their assessment counters the view of some leading experts of infectious disease who say that as long as the necessary precautions are taken there is no reason to cancel the Games.

On Thursday, Dr. Tom Frieden, director of the US Centers for Disease Control and Prevention, declared there was no public health reason to cancel or delay this summer’s Games.

In an public letter posted online, the group of 150 leading public health experts, many of them bioethicists, said the risk of infection from the Zika virus is too high. The letter was sent to Dr. Margaret Chan, director-general of the World Health Organization, and urged that the Games, due to be held in Rio de Janeiro in August, be moved to another location or delayed.

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

Japan’s inflation falls for 2nd straight month

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

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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

Asia markets mostly higher; Nikkei up 0.8%, Kospi up 0.3%

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

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Asia markets opened higher on Thursday, led by advances in the energy sector, after overnight gains in oil prices pushed US stocks higher.

In Japan, the Nikkei 225 traded up 0.75 percent, while across the Korean Strait, the Kospi was higher by 0.34 percent. Down Under, the S&P/ASX 200 gave up most of its nearly 0.4 percent gains to trade flat.

Oil prices gained in the US session after US government data showed a larger-than-expected drop in crude inventories. Reuters reported the U.S. Energy Information Administration said crude inventories fell 4.2 million barrels in the week to May 20. Analysts polled by Reuters expected a drop of 2.5 million barrels in inventory.

Global benchmark Brent futures settled up 2.3 percent at USD 49.74 a barrel, while US crude futures added 1.93 percent to USD 49.56.

In the currency market, the Japanese yen saw renewed strength against the dollar, with the pair trading at 109.82 as of 8:29 a.m. HK/SIN.

But the pair could climb ahead. Short-covering in the pair was one of the greatest risks that the dollar/yen pair faces at the moment, according to Kathy Lien, managing director of foreign exchange strategy at BK Asset Management.

“Even after the recent rally, speculative long yen positions are near record highs,” she said in a note late Wednesday.

Japanese exporters mostly shrugged off the fresh yen strength, with Toyota shares up 1.6 percent, Nissan higher by 1.04 percent, and Honda added 0.99 percent.

Usually a stronger yen is a negative for exporters as it reduces their overseas profits when converted to local currency.

Reuters said a poll found that the confidence in Japanese manufacturers fell to a three-year low in May, highlighting the impact of a strong yen on exporters of cars and electronics. The survey tracks the Bank of Japan’s quarterly tankan survey and found the service sector’s mood also fell in may, reported Reuters.

Meanwhile, the dollar lost ground against a basket of currencies, with the dollar index at 95.31 after touching levels as high as 95.661 in Wednesday’s trade, but that’s up from levels under 93 at the beginning of the month.

Angus Nicholson, a market analyst at spreadbetter IG, said the pause in the dollar strength was temporary as economic data stateside continued to be positive.

The New Zealand dollar retreated against the greenback, trading at USD 0.6715 as of 8:37 a.m. HK/SIN, down from levels as high as USD 0.6771 Wednesday.

Foreign exchange strategists at the Commonwealth Bank of Australia said in a morning note that the decline in the Kiwi came after “Fonterra’s milk price forecast for the 2016-17 season was much lower than expected.”

Fonterra shares were down 0.53 percent.

Meanwhile, the two-day G7 Summit 2016 Japan kicks off in Ise-Shima on Thursday.

Major indexes in the US closed higher, with the Dow Jones industrial average up 0.82 percent, the S&P 500 higher by 0.7 percent and the Nasdaq composite adding 0.7 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

China’s central bank fixes yuan at 2011 low against dollar

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

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China’s central bank set the fixing of the yuan at a five-year low against the dollar on Wednesday, as the greenback continues to strengthen on expectations of an imminent increase in interest rates by the Federal Reserve.

The People’s Bank of China (PBOC) set the dollar/yuan reference rate at 6.5693, against Tuesday’s fixing of 6.5468. The fixing was the weakest for the yuan since 2011.

China’s central bank lets the yuan spot rate rise or fall a maximum of 2 percent against the dollar, relative to the official fixing rate.

The dollar index, which measures the greenback against a basket of currencies, traded at 95.65 on Wednesday morning, compared with its previous close at 95.23. This was compared to the 94 level the index traded at in the previous week.

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

June rate hike not set in stone,but labor data favorable:Bullard

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

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A US Federal Reserve rate hike in June or July wasn’t set in stone, but labor data suggested it was time to pull the trigger, St. Louis Fed President James Bullard told CNBC.

“There’s no reason to prejudge June,” Bullard said, adding that the Federal Open Markets Committee would look at the data and decide then.

Muddying the waters on the timing of the move, Bullard noted that there was no reason the Fed must hold a press conference in conjunction with a rate hike. A press conference is scheduled to follow the June 14-15 meeting, but one is not scheduled after the July 26-27 meeting.

“We can wait until we get to the meeting, see what the latest data says, and try to make a good decision there. I think on the issue of press conferences, we have made many moves over the years without press conferences,” he said.

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

Asia markets trade higher; Nikkei up 1.6%, ASX up 1.4%

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

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Asia markets opened sharply higher on Wednesday, with most major indexes advancing around than 1 percent each, after encouraging reports on the housing market stateside saw gains in US stocks.

Japan’s Nikkei 225 was up 1.6 percent, with shares receiving additional boost from a relatively weaker yen against the dollar. Across the Korean Strait, the Kospi advanced 0.82 percent.

Down Under, the benchmark S&P/ASX 200 was up 1.39 percent, led by gains in the heavily-weighted financials subindex, as well as the energy and materials sub-indexes.

US stocks ended higher overnight, with the Dow Jones industrial average closing up 1.22 percent, the S&P 500 higher by 1.37 percent and the Nasdaq composite added 2 percent.

New home sales for April jumped 16.6 percent to a seasonally adjusted annual rate of 619,000 units, topping expectations and the highest level since January 2008, reported Reuters.

In the currency market, the dollar regained momentum, advancing against most major currencies. The dollar index, which measures the greenback against a basket of currencies, traded at 95.65, compared with its previous close at 95.23. This was compared to the 94 level the index traded at in the previous week.

Kathy Lien, managing director for foreign exchange strategy at BK Asset Management, said the positive home sales data “validated the Federal Reserve’s hawkish monetary policy stance.”

“As more central bankers say that two or more hikes in 2016 is likely the more investors start to realize that they are underestimating the Fed’s commitment to normalizing monetary policy,” she said.

The Japanese yen weakened against the dollar, with the pair trading at 110.06 as of 8:15 a.m. HK/SIN.

Major Japanese export stocks were higher, with Toyota shares adding 1.64 percent, Nissan up 1.58 percent and Honda gaining 1.93 percent. A weaker yen is a positive for exporters as it increases their overseas revenue when converted into local currency.

Lien added that she expected “the dollar to extend its gains and look for dollar/yen to head towards 112,” as the market continued to price in its expectations for an imminent rate hike from the Fed.

Oil prices advanced in early Asian hours on Wednesday, with global benchmark Brent futures up 1.05 percent to USD 49.12 as of 8:23 a.m. HK/SIN. US crude futures added 1.17 percent to USD 49.19.

Overnight, oil prices jumped after data from the American Petroleum Institute showed US crude inventories fell 5.1 million barrels last week, beating expectations from analysts, according to Reuters.

In company news, Sony shares advanced 5.01 percent, after the company released its earnings forecast for the fiscal year ending March 31, 2017. Sony said it expected operating income to come in at 300 billion yen (USD 2.72 billion) for fiscal 2017, a 2 percent increase from the 294.2 billion yen for the year ended March 31, 2016.

The company said the earthquakes that hit southern Japan in April disrupted operations prevented them from making earnings forecast earlier.

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

Why India’s spending $500 mn to develop a port in Iran

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

Listen to the Article (6 Minutes)

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