Month: March 2018

Asia trade mixed as investors search for direction after Cohn resignation

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

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Asian markets traded mixed on Wednesday, as risk appetite appeared to recover slightly after taking a knock earlier on news that a top Trump economic advisor would be resigning.

The Nikkei 225 hovered around the flat line, paring losses after earlier sliding around 1 percent.

South Korea’s Kospi reversed early losses to edge higher by 0.62 percent on strength in the technology and manufacturing sectors, with heavyweight Samsung Electronics advancing 3.19 percent. Steelmaker Posco rose 1.43 percent.

Overnight news that North Korea was open to talks with the U.S. on denuclearization was also in focus as stocks with exposure to North Korea jumped. Shinwon, which Reuters said formerly managed factories in the Kaesong industrialized zone, surged 18.27 percent.

Down Under, the S&P/ASX 200 declined 0.7 percent. All of the benchmark’s sub-indexes traded in the red, with the exception of gold producer stocks, which rose 2.17 percent.

Greater China markets were subdued. The Hang Seng Index shed 0.08 percent, while mainland markets were mixed: The Shanghai composite edged up 0.19 percent and the Shenzhen composite traded lower by around the same level.

Trade fears, which had eased slightly in recent sessions, were in focus after White House chief economic advisor Gary Cohn resigned from the Trump administration.

While Cohn’s departure date has not been announced, the development comes after Trump’s announcement last week that tariffs would be implemented on steel and aluminum imports. Cohn, a free trade advocate, had been against the tariffs.

The dollar slid against the safe-haven yen on the news, fetching 105.81 at 9:36 a.m. HK/SIN, after falling as low as 105.43 earlier and compared to the 106.11 seen at the end of the New York session.

The SPDR S&P 500 ETF Trust also fell 1.5 percent while U.S. stock index futures traded lower. Dow Jones industrial average futures were down 289 points after earlier falling by more than 400 points.

Following Trump’s threat that European Union car taxes could be taxed after the bloc said it would not sit idly by US tariffs, one expert cautioned that tensions could continue to simmer.

“It won’t end there. It is not hard to characterize current market behavior as complacent,” wrote ING Chief Economist Robert Carnell in a note.

In corporate news, Japan’s Kobe Steel on Tuesday said CEO Hiroya Kawasaki would resign on April 1 following a data falsification scandal. Shares of Kobe Steel were down 5.32 percent, under-performing the broader index.

What’s on tap

Here’s the economic calendar for Wednesday (all times in HK/SIN):

4:00 p.m.: China foreign exchange reserves

Malaysia’s central bank will make its interest rates decision at 3:00 p.m. later in the day.

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 shares rally as trade fears ease; Nikkei jumps more than 2%

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

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Asian stocks rallied on Tuesday, tracking gains seen in the US and Europe in the last session as concerns over a potential trade war faded.

Japan’s Nikkei 225 jumped 2.29 percent, or 482.02 points, in the early going, with the dollar extending gains against the yen as trade-related fears abated. The dollar fetched 106.31 yen at 9:29 a.m. HK/SIN after falling as low as 105.34 in the overnight session.

Exporters gained in the morning, with automakers, technology and manufacturers higher for the most part. Large caps recorded significant gains, with Fast Retailing up 2.58 percent.

Over in South Korea, the benchmark Kospi advanced 1.46 percent in the morning, with gains seen across sectors, including chipmakers and steel producers. Tech heavyweight Samsung Electronics jumped 3.85 percent and SK Hynix was up nearly 5 percent.

Hong Kong’s Hang Seng Index surged 1.57 percent after the index slipped below the 30,000 level in the last session. Gains on the mainland were smaller, with the Shanghai composite edging up by 0.15 percent and the Shenzhen composite adding 0.25 percent.

Elsewhere, the S&P/ASX 200 rose 1.37 percent, with all 12 of its sub-indexes trading in positive territory.

The energy and materials sectors were the best-performing sectors in the morning, rising 2.33 percent and 2.14 percent, respectively, while the heavily weighted financials sub-index gained 1.08 percent.

Asian stock indexes had closed lower for the most part on Monday as China’s National People’s Congress kicked off. China would work toward a growth target of around 6.5 percent this year, Chinese Premier Li Keqiang said on Monday.

In individual stocks, Japan’s Kobe Steel rose 0.81 percent. The company’s Chief Executive Officer Hiroya Kawasaki is slated to step down after a data falsification scandal that erupted last year, Reuters reported, citing Nikkei.

Meanwhile, energy-related stocks and oil producers in the region rose as oil prices held onto gains after settling 2.2 percent higher in the last session. Australia’s Woodside Petroleum went up 2.45 percent and Japan’s JXTG Holdings advanced 3.94 percent, while shares of CNOOC listed in Hong Kong popped 4.62 percent.

US West Texas Intermediate edged up 0.22 percent to trade at USD 62.71 after settling 2.2 percent higher on Monday. Brent crude futures climbed 0.21 percent to trade at USD 65.68.

Trade war fears ease

Stateside, the Dow Jones industrial average gained after four straight days of losses, which came after Donald Trump’s announcement last week that tariffs would be implemented on steel and aluminum imports.

Trump on Monday appeared to signal those tariffs could be open to negotiation, tweeting that the tariffs will not be implemented if a “fair” NAFTA agreement is reached.

The tariffs also encountered push back from Republican House Speaker Paul Ryan, who said he was “extremely worried” about the plan.

US stock indexes recorded gains of more than 1 percent, with the Dow closing up 336.70 points, or 1.37 percent. Elsewhere, European markets appeared to shrug off concerns over the prospects of a hung parliament in Italy, with the pan-European STOXX 600 gaining 1.04 percent.

The dollar index, which tracks the greenback against a basket of currencies, slipped to trade at 89.906 at 9:30 a.m. HK/SIN after climbing above the 90 handle in the last session.

Meanwhile, the Australian dollar edged up to trade at $0.7785 from Monday’s close of USD 0.7761 ahead of the Reserve Bank of Australia’s interest rates decision at 11:30 a.m. HK/SIN. Most expect the central bank to hold rates steady.

“[T]raders shouldn’t expect much from the central bank as there hasn’t been any meaningful traction in the Australian economy over the past few months,” Kathy Lien, managing director of FX strategy for BK Asset Management, said in a note.

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

These are the top 10 tech companies to work for in India

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

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India, home of the world’s fastest-growing economy, is quickly becoming one of the globe’s greatest technology hubs.

That is partially thanks to the country’s abundance of highly skilled technical graduates, whose numbers are growing at a rate of 7 percent per year, according to the latest study from India’s ministry of commerce and industry.

It is also credit to India’s thriving start-up scene, which is ranked third in the world, accounting for 4,750 businesses.

However, this means competition can be fierce and choosing the right place to work is all the more important. Based on reviews from current or former employees, U.S. employment search engine company Indeed has ranked the top technology companies to work for in India.

“The companies featured on our Best Places to Work — Tech Companies in India list are not only industry leaders, but also firms known for valuing their employees and offering them great opportunities for career progression,” said Sashi Kumar, managing director of Indeed India.

He added that they also placed a strong emphasis on leadership programs and company culture.

“Companies that can attract the best talent across sectors are able to create and maintain a strong sense of community and provide capable mentorship. This is especially true of technology firms which strive to create a productive environment for their employees, ensuring optimum levels of job satisfaction,” he said.

Here’s a breakdown of the top companies:

10. Cognizant Technology Solutions

Cognizant Technology Solutions provides IT services, such as digital, technology, consulting and operations services.

Offices: Bangalore, Chennai, Coimbatore, Gurgaon, Hyderabad, Kochi, Kolkata, Mangalore, Mumbai and Pune.

9. HP

Information technology company HP was established in 1939, and in 2015 was split into two divisions: HP Inc, which develops personal computers, printers and 3D printing solutions; and Hewlett Packard Enterprise, which focuses on providing business services and financial services.

Offices: Bangalore, Chennai, Gurgaon, Kolkata, Lucknow, Mumbai, New Delhi and Udham Singh Nagar.

8. SAP

Software company SAP produces computer software to manage business operations and customer relations.

Offices: Bangalore, Chandigarh, Gurgaon, Kolkata, Mumbai and New Delhi.

7. Microsoft

Technology company Microsoft develops, manufactures, supports and sells computer software, electronics, personal computers and services. Its most recognized products include the Microsoft Windows operating systems and the Internet Explorer browser.

Offices: Ahmedabad, Bangalore, Chennai, Hyderabad, Gurgaon, Kochi, Kolkata, New Delhi and Pune.

6. Cisco

Cisco develops, manufactures and sells networking hardware and telecommunications equipment. The company also has a number of subsidiaries that specialize in specific tech markets, including Internet of Things and security.

Offices: Bangalore, Chennai, Colombo, Kolkata, Gurugam, Hyderabad, Mumbai, New Delhi and Pune.

5. Tata Consultancy Services (TCS)

Tata Consultancy Services is an information technology service, consulting and business solutions company. It is a subsidiary of multinational conglomerate Tata Group, which is made up of 29 publicly listed enterprises including Tata Steel, Tata Motors, which owns Jaguar Land Rover) and Tata Communications.

Offices: Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chennai, Coimbatore, Gandhinagar, Gurugram, Hyderabad, Jamshedpur, Kochi, Kolkata, Lucknow, Mapusa, Mumbai, Nagpur, New Delhi, Noida, Patna, Pune, Raipur, Trivandrum and Vadodara.

4. IBM

Established over a century ago as the Computing-Tabulating-Recording Company, the American technology company has been known as IBM, short for International Business Machines, since 1924. Its core business focuses on manufacturing hardware, middleware and software, as well as providing hosting and consulting services.

Offices: Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Chennai, Coimbatore, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi, Noida, Pune and Visakhapatnam.

3. Intel

Intel is a technology company that specializes in producing communications and computing products, including microprocessors and semiconductor chips.

Offices: Ahmedabad, Bangalore, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi, Noida, Pune and Secunderabad.

2. Amazon

Amazon is an e-commerce and cloud computing business. Launched initially as an online bookstore, it now sells a range of products and streaming services, as well as producing consumer electronics. Most recently, the company launched an automated grocery store in the U.S.

Offices: Bangalore, Chennai, New Delhi, Hyderabad and Mumbai.

1. Google

Google is a technology company focusing on internet-related services and products. Those include search engine, cloud computing, advertising technologies, software and hardware.

Offices: Bangalore, Mumbai, Gurgaon and Hyderabad.

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 shares off to a soft start while the euro gives up its gains

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

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Asian markets edged lower and the euro slipped early on Monday. Meanwhile, Wall Street finished mostly higher in the last session as markets continued to focus on recently announced metals tariffs.

Japan’s Nikkei 225 edged down 0.56 percent in early trade amid the firmer yen.

Exporters were mostly lower in the morning, with automakers and technology names coming under pressure. Honda Motor and Toyota were down 1.28 percent and 0.36 percent, respectively. Sony shed 0.65 percent and Nintendo lost 1.11 percent.

Meanwhile, steel producers extended losses seen in the last session, with JFE Holdings down 2.35 percent, while retailers clawed back slight gains. Fast Retailing rose 1 percent.

Meanwhile, South Korea’s benchmark Kospi slipped 0.23 percent. Technology names were mixed in early trade, with Samsung Electronics down 0.96 percent and SK Hynix edging up 0.65 percent.

Elsewhere, Australia’s S&P/ASX 200 traded lower by 0.3 percent.

Seven of the benchmark’s 12 sub-indexes traded in negative territory in the early going, with the materials sub-index declining 0.6 percent. Mining majors BHP and Rio Tinto were down 1.35 percent and 0.98 percent, respectively.

The country’s “Big Four” banks traded in negative territory, with the sector edging down 0.6 percent in the morning. Westpac declined 0.91 percent, leading losses in the sector.

Of note, China’s National People’s Congress will kick off later in the day.

Chinese Premier Li Keqiang on Monday said the country was targeting GDP growth of around 6.5 percent this year, Reuters reported. That was the same growth target it had in 2017.

Italy’s elections in focus

Parliamentary elections in Italy at the weekend look set to result in a hung parliament, according to an exit poll.

The exit poll by Rai state television on Sunday evening showed the anti-establishment Five Star Movement would be the largest single party, but a center-right bloc which features former Prime Minister Silvio Berlusconi’s Forza Italia party would gain the most seats.

Here’s a guide to the key figures and parties in the election.

After climbing above the USD 1.236 handle earlier, the euro pared some gains to last trade at USD 1.2322 as market digested the latest election developments.

Also in other political news, members of Germany’s Social Democrats party on Sunday voted to back German Chancellor Angela Merkel’s conservatives.
US stocks mostly higher

Stateside, Wall Street was a mixed picture at the end of Friday trade, although stocks closed above their session lows.

Markets remained focused on U.S. President Donald Trump’s announcement last week that tariffs of 25 percent and 10 percent would be imposed on steel and aluminum imports, respectively.

Despite negative reactions to the decision, Trump doubled down in a tweet on Friday, saying that “trade wars are good, and easy to win.”

The Dow Jones industrial average closed lower by 0.29 percent, or 70.92 points, at 24,538.06. Other indexes closed in positive territory: The S&P 500 ended the day up 0.51 percent at 2,691.25, with health care shares the best performers.

In currencies, the dollar index, which tracks the greenback against a basket of currencies, stood at 89.935 at the end of last week.

Against the yen, the dollar traded at 105.61, a touch below last Friday’s close of 105.69.

The yen had firmed on Friday after Bank of Japan Governor Haruhiko Kuroda indicated the central bank would think about exiting easy monetary policy if inflation targets are met in fiscal 2019.

On the commodities front, oil prices extended gains seen in the last session. US West Texas Intermediate rose 0.59 percent to trade at USD 61.61 per barrel. Brent crude futures tacked on 0.57 percent to trade at USD 64.74 after settling almost one percent higher on Friday.

What’s on tap

Here’s the economic calendar for Monday (all times in HK/SIN):

8:30 a.m.: Japan Nikkei services PMI
9:45 a.m.: China Caixin composite and services PMIs
12:00 p.m.: Malaysia balance of trade

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

Indian military scrambles to keep up after China moves to put forces in Africa

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

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Competition between historical rivals China and India is spreading across the ocean.

From Tanzania to Sri Lanka, the two Asian heavyweights both are trying to establish a stronger military and economic presence in countries along the Indian Ocean in a quest for regional supremacy.

China, the world’s second biggest economy, is establishing what some policy experts call a “string of pearls” — a network of defense and commercial facilities — around the Indian Ocean. Beijing in 2016 revealed plans to launch its first overseas military base in Djibouti.

Numerous business projects by state-owned Chinese enterprises under President Xi Jinping’s massive Belt and Road program, which includes a port in Tanzania, have reinforced its efforts.

New Delhi, unsettled by the thought of Beijing dominating its own backyard, is responding in kind.

On a visit to Oman this year, Prime Minister Narendra Modi secured access to naval facilities in the Middle Eastern state, which is near the Strait of Hormuz. More than 30 percent of seaborne oil exports pass through that narrow waterway daily.

Earlier this year, India signed a 20-year pact with the Seychelles to build an airstrip and a jetty for its navy. Last November, Modi’s team inked a pact with Singapore that may boost Indian access to that country’s Changi naval base.

“It seems that we are in the middle of a base race across the Indian Ocean,” David Brewster, senior research fellow at at the Australian National University, wrote in a recent note published on think tank The Lowy Institute. “Watch this space.”

The Indian Ocean, which borders Africa, the Middle East, Asia and Australia, is home to major sea lanes and choke points that are crucial to global trade. Nearly 40 percent of the world’s offshore petroleum is produced in the Indian Ocean, which also has rich mineral deposits and fisheries.

Putting commercial projects to military use?

Commercial projects undertaken by Indian and Chinese companies could also be put to military purposes.

When China Merchants Port Holdings signed a 99-year lease on Sri Lanka’s Hambantota Port in July, worries emerged that China’s navy would make use of the facility despite Sri Lanka’s assurances to the contrary. A few months later, Reuters reported that New Delhi was looking to take over Hambantota’s local airport.

Indian and Western diplomats “are convinced that Hambantota will end up becoming a Chinese military and naval base, or another Djibouti,” the Observer Research Foundation, an Indian think tank, said in an October report.

The Maldives and Myanmar, both recipients of Chinese investment, also seen as possible areas that China’s military could use.

It’s a similiar story in Iran, where India Ports Global is developing the deep-sea Chabahar port — widely seen as a counter to China’s Gwadar port in Pakistan.

“Future military uses of Chabahar by India cannot be ruled out,” said Brewster. The $85 million Chabahar project, located only about 350 kilometers from Gwadar, is aimed at creating a transit route between India, Iran and Afghanistan.

The Indian Ocean has also become a hotspot for weapons technology.

Beijing plans to deploy sea-based anti-missile systems there, according to recent reports. And analysts said New Delhi’s 2017 request for U.S. aerial drones was aimed at monitoringChinese activity in the ocean.

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

Markets in Asia decline as dollar steadies; Nikkei falls 307 points

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

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Asian stocks declined on the first trading day of the month after finishing February with losses. Declines in the region also tracked sharp losses seen stateside in the previous session.

The Nikkei 225 declined 1.39 percent, or 307.24 points, on the first day of March. Automakers, technology stocks and financials traded lower.

Heavyweight SoftBank Group lost 0.94 percent, Toyota slid 1.71 percent and apparel company Fast Retailing was off 0.78 percent. Among manufacturing names, Fanuc declined 1.74 percent and Kyocera shed 1.75 percent.

In Sydney, the S&P/ASX 200 declined 0.74 percent. Losses were led by the energy sub-index, which fell 2.05 percent in the morning. Mining majors were also weaker in the morning, with Rio Tinto falling 3.96 percent and Fortescue Metals losing 1.69 percent.

Oil producers were lower in early trade as crude prices remained soft: Santos fell 1.49 percent and Oil Search lost 4.37 percent.

Australia’s “Big Four” banks were also weaker in the day, with ANZ down 1.19 percent while its peers recorded slighter losses.

Hong Kong’s Hang Seng Index extended losses in early trade, edging down by 0.6 percent. Financials were in negative territory in the morning, with insurer AIA falling 1.07 percent and heavily weighted HSBC off by 0.51 percent.

Property developers were a mixed picture: Country Garden tacked on 0.99 percent while CK Asset slipped 0.37 percent. Index heavyweight Tencent shrugged off broader market sentiment to trade higher by 1.11 percent.

Mainland markets traded slightly higher after recent losses: The Shanghai composite edged up by 0.15 percent and the Shenzhen composite added 0.34 percent in the early going.

Caixin manufacturing PMI for February released on Thursday came in at 51.6, a touch above the 51.3 forecast in a Reuters poll. Official manufacturing PMI had missed forecasts, with analysts noting the impact of the Lunar New Year holiday on manufacturing activity.

Markets in South Korea and Thailand were closed for holidays on Thursday.

Asian markets finished February with losses after a global rout in stock markets earlier that month. The Shanghai composite and Hang Seng Index were down 6.4 percent and 6.2 percent, respectively. That was their worst month in more than two years.

US stocks fell on Wednesday despite the Dow Jones industrial average advancing as much as 166 points earlier in the session, with the 30-stock index closing lower by 1.5 percent at 25,029.20.

For the month, the Dow and S&P 500 closed lower by 4.3 percent and 3.9 percent, respectively.

Dollar steadies

In currencies, the dollar index, which tracks the greenback against a basket of six currencies, firmed to trade at 90.703 by 9:34 a.m. HK/SIN after touching a five-week high in the overnight session.

The dollar had firmed after new Federal Reserve Chairman Jerome Powell gave a positive assessment of the US economy on Tuesday and signaled interest rates could rise more than three times this year.

Powell is due to address Congress again on Thursday during US market hours.

Gains in the dollar index also came as the euro slid in the last session, ahead of elections in Italy at the weekend. The currency was a touch softer at USD 1.2184. Meanwhile, sterling extended losses to trade at USD 1.3746 after Wednesday’s sharp fall which came about on Brexit worries.

Against the yen, however, the dollar was steady at 106.63, compared to levels around the 107 handle seen during Asian trade in the last session.

On the energy front, prices were steady following the overnight drop in prices, after data reflected an increase in US stockpiles. US West Texas Intermediate were flat at USD 61.64 per barrel. Brent crude futures, meanwhile, slipped 0.17 percent to trade at USD 64.62.

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