Tag: asian shares

Asia cautious ahead of central bank, data fest

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

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Asian share markets drifted lower on Monday while currencies kept to familiar ranges ahead of a busy week peppered with central bank meetings, corporate results and updates on US inflation and payrolls.

Technology and energy shares led Japan’s Nikkei down 0.4 percent in early trade, while tech also featured in South Korea’s 0.2 percent decline.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.03 percent.

The week ahead features quarterly earnings from more than 140 S&P 500 companies, including Apple Inc.

Disappointing results from Intel Corp and Twitter Inc soured the mood on the Nasdaq on Friday, though the S&P 500 and Dow still ended firmer for the week.

Analysts at JPMorgan cited relatively aggressive moves into “value” stocks – in particular banks – and away from shares particularly leveraged to growth.

“Tech really began cracking on Tuesday before the floodgates opened on Friday,” they wrote in a note.

“The rotation will likely continue, benefiting value categories at the expense of momentum/tech as rates are biased higher,” they added. “Europe’s higher weighting to banks/resource will help it vs the US”

CENTRAL BANK WATCH

The US Federal Reserve meets on Tuesday and Wednesday and is widely expected to stand pat while reaffirming the outlook for further gradual rate rises.

The market is almost fully priced for a hike in September and leaning toward a further move before year-end.

A policy meeting by the Bank of Japan on Tuesday has taken on greater importance amid talk it could tweak its massive asset-buying campaign.

Elias Haddad, a senior currency strategist at Commonwealth Bank of Australia, doubted the BoJ would move just yet, but felt it may abandon the negative interest rate applied to accounts held by financial institutions at the central bank.

The BoJ could also modify its annual objective of accumulating 80 trillion yen ($720 billion) of Japanese government bonds, as well as potentially lifting its target yield for 10-year JGBs. Those yields recorded the highest close since January 2016 last week.

“Any of these policy changes would be interpreted as a step toward less monetary policy accommodation, dragging USD/JPY lower,” Haddad said.

Just the chance of such a shift has sent the yen higher in the last week or so, pulling the dollar down to around 110.96 yen from a peak of 113.18 earlier in the month.

Against a basket of currencies the dollar was hovering at 94.680, having repeatedly failed to clear resistance around 95.652 this month.

The euro has had problems of its own as the European Central Bank emphasized that rates would not be rising until the second half of next year. On Monday, the euro was flat at $1.1658, corralled between support around $1.1570 and resistance at $1.1750.

In Asia, eyes will be on China’s yuan after it suffered its longest weekly losing streak since November 2015. It hit a 13-month low at 6.8369 per dollar last week.

In commodity markets, oil prices were supported by easing trade tensions and Saudi Arabia’s temporary shutdown of a key crude shipping lane.

US crude added 25 cents to $68.94 in early trade, while Brent rose 1 cent to $74.30 a barrel.

Spot gold eased a touch to $1,222.52.

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

Asian shares struggle as trade fears keep investors cautious

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

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Asian stocks struggled to gain traction on Friday, following a mixed end to Wall Street trade and as the worsening Sino-US trade dispute kept investors in the region cautious, despite signs of rapprochement between the United States and Europe.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade.

Japan’s Nikkei eked out a 0.3 percent gain though it was capped by worries that the Bank of Japan could scale down its asset purchase at its upcoming policy review next week.

MSCI’s gauge of stocks across the globe hit four-month highs on Thursday, with European car maker shares gaining 2.6 percent after the European Union and the United States agreed to negotiate on trade, easing fears of a transatlantic trade war.

US industrial shares also made gains, rising 0.8 percent though the S&P 500 Index dipped 0.30 percent on Thursday, due to a 19 percent dive in Facebook on its earnings showing slowing usage.

While that pushed down the Nasdaq Composite 1.01 percent, other US tech firms held firm, with Amazon.com shares gaining 3.2 percent after market following its stellar earnings.

The 10-year US Treasuries yield edged up to 2.9840 percent, its highest level in 1-1/2 months, on receding worries about trade tensions.

Yet Asian shares were more subdued as trade disputes between Washington and Beijing have shown few signs of abating.

“Now that Washington does not need to use its energy to fight with Europe, it could increase pressure on China,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.

The Chinese yuan stayed near its 13-month low touched earlier this week.

The offshore yuan traded at 6.8283 per dollar, near Tuesday’s low of 6.8448.

The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, fell to its lowest levels since May last year, having fallen 2.7 percent so far this month.

The euro traded at $1.1641, having fallen 0.73 percent on Thursday after the European Central Bank signaled no change in its timetable to move away from ultra low rates or end its bond purchase program.

The dollar ticked up to 111.22 yen after hitting a low of 110.58 yen the previous day, its lowest level in more than half a month, in part helped by a rise in US yields.

In commodities, oil prices extended their recovery, after Saudi Arabia suspended oil shipments through a strait in the Red Sea following an attack on two oil tankers.

Brent crude futures traded at $74.45 per barrel, down 0.1 percent, though they were up 1.9 percent so far this week.

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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 stocks inch up after Trump, Juncker pledge cuts to trade barriers

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

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Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work toward eliminating trade barriers on industrial goods.

In a news conference following a meeting between the two leaders on Wednesday, Trump said he and Juncker had agreed to work to lower industrial tariffs on both sides and to increase European imports of liquefied natural gas and soybeans from the United States, among other measures.

The meeting helped to extend a rally in global stocks into its fourth day, as investors took heart from a rare piece of good news amid global concerns over trade.

But a warning from Facebook Inc. of the risk of slowing growth, which saw the company’s stock fall as much as 24 percent in after-hours trading Wednesday, highlighted risks for investors and businesses in the current earnings season.

Globally, markets also remain worried about the heated tariff dispute between the United States and China.

“This deal, along with the breakdown of a large M&A deal, leave investors fearing that the trade war has just turned even more so on China,” Citi analysts wrote in a note Thursday, referring to Qualcomm Inc dropping its $44 billion bid for NXP Semiconductors after failing to secure Chinese regulatory approval.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent.

Australian shares fell 0.4 percent and Japan’s Nikkei stock index was 0.2 percent lower.

On Wednesday, the Dow Jones Industrial Average rose 0.68 percent to 25,414.1, the S&P 500 gained 0.91 percent to 2,846.07 and the Nasdaq Composite added 1.17 percent to 7,932.24.

But S&P 500 E-mini futures turned lower Thursday morning in Asia, falling 0.2 percent to 2836.25.

News of the respite from trade tensions pushed US treasury yields higher, with the yield on 10-year notes touching six-week highs. Around 0012 GMT, it was at 2.9727 percent, compared with its US close of 2.936 percent on Wednesday.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, hit 2.6734 percent compared with a US close of 2.657 percent.

Earlier in the week, treasury prices had slumped along with Japanese government bonds on speculation the Bank of Japan may soon start to taper its massive stimulus.

The BOJ is said to be considering at next week’s rate review changing the composition of exchange-traded funds it buys as part of its stimulus programme.

The dollar dropped 0.2 percent against the yen to 110.79.

The euro was up less than 0.1 percent on the day at $1.1735, while the dollar index, which tracks the greenback against a basket of six major rivals, fell 0.2 percent to 94.139.

US crude ticked up 0.4 percent at $69.54 a barrel. Brent crude was 0.9 percent higher at $74.61 per barrel.

Gold moved slightly higher as the dollar eased. Spot gold was traded at $1233.01 per ounce.

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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

Asia stocks gain on firmer Wall Street, China hopes; US yields elevated

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

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Asian stocks rode higher on Wednesday thanks to strong US corporate earnings and hopes China will boost fiscal support for its economy, while long-term US yields hovered near six-week highs on speculation the Bank of Japan could be less accommodative.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.17 percent.

The index extended gains from the previous day, when it was lifted after China said it will adopt a more vigorous fiscal policy to help tackle external uncertainties.

Australian stocks  dipped 0.1 percent, South Korea’s KOSPI advanced 0.35 percent and Japan’s Nikkei rose 0.5 percent

Overnight on Wall Street, the S&P 500 closed at its highest level since Feb. 1 as Alphabet’s blowout results bolstered expectations of a robust earnings season.

“Gains by US shares are providing support for equities, as well as China’s stimulus plan. Corporate earnings will continue to come out and these will be a key focal point for the markets, which also have to keep an eye on trade developments,” said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.

In currencies, the dollar index against a basket of six major currencies was little changed at 94.594, having edged up from a near two-week low of 94.207 plumbed at the start of the week on the back of higher US Treasury yields.

The 10-year Treasury note yield stood at 2.950 percent after climbing to a six-week peak of 2.973 percent overnight.

The yield had shot up on speculation the BOJ was edging closer to unwinding its aggressive monetary stimulus, following reports by Reuters and other media late last week that the central bank was holding preliminary discussions on possible changes to its monetary policy.

The euro was flat at $1.1684 while the dollar edged up 0.1 percent to 111.31 yen.

The pound was up 0.05 percent at $1.3151, building on gains from the previous day on news that British Prime Minister Theresa May would lead negotiations on the country’s departure from the European Union.

The Australian dollar was also buoyant, trading a shade higher at $0.7427 after gaining 0.5 percent on Tuesday when hopes for China’s stimulus lifted the currency.

The Aussie, which if often used as liquid proxy for China plays, also benefited as prices of commodities such as industrial metals rose on Chinese stimulus hopes.

Copper on the London Metal Exchange (LME) traded at $6,270.50 per tonne after soaring 2.7 percent overnight to a two-week peak of $6,328.00.

On Tuesday, LME zinc rose 2.4 percent and LME nickel advanced 1.5 percent.

Brent crude futures was up 0.45 percent at $73.76 a barrel, adding to the previous day’s gains as market focus shifted away from oversupply concerns to the possibility of increasing Chinese demand.

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 shares higher on US earnings but trade worries rattle offshore yuan

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

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Asian shares made early gains on Thursday as upbeat Wall Street earnings supported global investor sentiment, although trade war jitters pushed China’s offshore yuan to a fresh one-year low.

The dollar retreated from a three-week high as investors cashed in on gains the currency made after US Federal Reserve Chairman Jerome Powell’s two-day testimony reinforced a strong economic outlook.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53 percent, while Japan’s Nikkei and the Australian benchmark advanced 0.42 percent and 0.38 percent, respectively.

On Wall Street, the Dow Jones Industrial Average rose 0.32 percent and the S&P 500 gained 0.22 percent to hit a more than five-month high, while the Nasdaq Composite declined marginally by 0.01 percent.

Stock markets were also supported by the Powell reiterating that the US economy was healthy, even though he warned that rising world protectionism would over time pose a risk to the global economic expansion.

“While strong U.S. corporate earnings certainly helped boost sentiments, but that’s not enough to push the stocks meaningfully higher from here,” said Yasuo Sakuma, chief investment officer at Libra Investments.

On the foreign exchange market, the trade war fears between the United States and China kept the offshore yuan to 6.7650 per dollar, to hit its lowest level since July, 2017.

The dollar index against a basket of six major currencies, rose to a three-week high of 95.4 before settling around 95.08, up 0.2 percent. Against the Japanese yen, the dollar hit a 6-1/2 month high of 113.140 yen on Wednesday. The euro was down 0.16 percent to $1.164.

In his two-day congressional testimony, the Fed’s Powell said he believed the United States was on course for years more of steady growth, and played down the risks to the US economy of an escalating trade conflict.

However, in the Fed’s Beige book released on Wednesday, manufacturers in every one of the central bank’s 12 districts expressed concern about the impact of tariffs, even as the US economy continued to expand at a moderate to modest pace.

“Trade war fears are something that won’t go away overnight. Investors need to be prepared for various possibilities, such as the United States versus China and the United States versus European Union,” said Libra’s Sakuma.

Benchmark US 10-year notes fell in price to yield 2.875 percent, from 2.862 percent on Tuesday. The US yield curve remained near its flattest in nearly 11 years.

Oil prices rose 1.0 percent overnight after US government data indicated bullish demand for gasoline and distillates, which overshadowed a surprise build in U.S. crude inventories and US crude oil production’s hitting 11 million barrels per day for the first time.

US crude last traded at $68.86 per barrel, up 0.15 percent on the day, and Brent was at $72.82, down 0.11 percent, in Asian trade.

Spot gold was little changed, after falling to a one-year intra-day low of $1221.50 per ounce on Wednesday.

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 rise tracking Wall Street after Powell’s upbeat comments

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

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Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the US central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough.

Japan’s Nikkei leapt out of the blocks with a 1 percent gain as a weakening yen promised to fatten exporters’ profits.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.16 percent and South Korea’s market 0.85 percent.

Federal Reserve Chairman Jerome Powell stuck with an upbeat assessment on the US economy while downplaying the impact of global trade risks on the outlook for rate rises.

“The outlook is consistent with two further quarter point rate increases this year, likely in September and December,” said Barclays economist Michael Gaspen.

“The main risk is that individuals, business, and financial markets have underestimated the desire of Trump to re-orient trade flows and that further steps to implement tariffs will lead to a reduction in confidence, a slowdown in hiring, and a correction in equity markets,” he added.

BofA Merrill Lynch’s latest fund manager survey showed a trade war remained the biggest risk cited by no less than 60 percent of respondents.

For now, US companies seem to be profiting mightily from tax cuts as the earnings season shifts into high gear. Analysts now see second-quarter S&P 500 earnings growth of 21.2 percent, up from 20.7 percent on July 1.

Of the 39 companies in the index that have reported so far, 84.6 percent have come in ahead of Street expectations. The Dow ended Tuesday up 0.22 percent, while the S&P 500 gained 0.40 percent and the Nasdaq 0.63 percent.

POUND IN PERIL

Powell’s support for more rate hikes sent two-year Treasury yields to the highest in nearly a decade and lifted the dollar broadly.

Against a basket of currencies, the dollar was up at 95.045, after jumping 0.46 percent overnight. It also climbed to its highest since January against the yen at 113.07.

The euro was stuck at $1.1655, after weakening 0.4 percent on Tuesday.

The pound suffered another bout of Brexit jitters after British Prime Minister Theresa May only just cleared the latest parliamentary hurdle to her leaving plans.

Bank of England Governor Mark Carney warned a no-deal Brexit would have “big” economic consequences and force a review of plans to raise interest rates.

Sterling was last huddled at $1.3104, after sliding 0.9 percent overnight.

The rising US dollar coupled with the prospect of higher US interest rates spelt trouble for gold, which crashed through major chart support to hit a one-year low.

Spot gold was 1.1 percent lower at $1,226.91 per ounce, having cratered at $1,225.58. The slightly less precious metal is down more than 5 percent for the year.

Oil prices also eased early on Wednesday, with Brent off 53 cents at $71.63 a barrel. US crude was quoted down 31 cents at $67.77 a barrel.

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 shares extend recovery on Wall Street gains

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

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Asian shares were higher on Friday following gains on Wall Street overnight, as concerns over an escalating US trade war with China took a breather.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, building on a 0.6 percent rise on Thursday, after US stocks ended the day higher.

Australian shares also gained 0.2 percent, while Japan’s Nikkei stock index was 1.2 percent higher.

Shares in Asia had recovered on Thursday after dropping on an announcement from Washington that the US planned to institute 10 percent tariffs on an additional $200 billion in Chinese imports.

The US slapped import tariffs of 25 percent on $34 billion worth of Chinese goods on July 6, prompting a matching response from China.

But while China has vowed to retaliate to the new tariffs, the lack of a specific response to date has sparked a global relief rally.

On Thursday, the Dow Jones Industrial Average rose 0.91 percent to 24,924.89, the S&P 500 gained 0.87 percent to 2,798.29 and the Nasdaq Composite added 1.39 percent to 7,823.92.

On Friday, S&P 500 e-mini futures rose to a five-month high on expectations of solid earnings growth among US firms despite the trade war threat.

“Some have suggested that Chinese officials are easing back their rhetoric with the intention of going back to the negotiation table, perhaps in light of increased concerns about economic impacts,” ANZ analysts wrote in a note on Friday. “But it is not clear whether it is truly a change in tone or if the US news was a surprise to China’s economic team and a reaction is being prepared.”

On Thursday, US Treasury Secretary Steven Mnuchin said that the US and China could reopen trade talks, but only if Beijing was willing “to make serious efforts to make structural changes.”

The dollar, which has been a safe haven amid global uncertainty over trade, touched 112.70 against the yen, its highest level since Jan. 10. At 0003 GMT, it was changing hands at 112.67, up 0.1 percent.

The dollar index, which tracks the greenback against a basket of six major rivals, was up 0.1 percent at 94.868. The euro was down less than 0.1 percent at $1.1665. In commodities, US crude was flat at $70.32 a barrel. Brent crude gave up some ground, falling 0.2 percent to $74.34 per barrel. Brent prices had risen on Thursday after a warning from the International Energy Agency about the world’s stretched oil supply cushion drove concerns about spare capacity.

The warning came after supply disruptions in recent weeks from countries including Venezuela, Norway, Canada and Libya.

Spot gold was flat, trading at $1246.58 per ounce.

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 stocks sag on trade war fears, dollar buoyant

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

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Asian stocks remained under pressure on Thursday from fears of an escalation in the US-China trade war, while the dollar stood stall after rallying against its peers amid the turmoil in broader markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 percent.

The index slumped 1 percent on Wednesday along with a slide in global equities after US President Donald Trump’s threat of imposing tariffs on another $200 billion of Chinese goods deepened the trade row between the world’s two largest economies.

Australian stocks rose 0.35 percent, South Korea’s KOSPI was flat and Japan’s Nikkei gained 0.75 percent.

“The markets had some time to digest the latest trade war developments and are poised to begin consolidating. It has become a pattern of reacting to each new development and hoping that trade strains ease in the next few months through negotiations,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

The dollar was buoyant, supported by mounting trade tensions and strong US inflation data.

The dollar index against a basket of six major currencies was steady at 94.703 after gaining 0.6 percent overnight.

Against the yen, which usually gains in times of political tension and market turmoil, the greenback rallied 0.9 percent on Wednesday to touch a six-month high above 112.00 yen.

“The dollar has managed to gain even against the yen due to ongoing trade concerns, with commodity-linked currencies having slid along with the downturn in commodities and providing a broad lift for the dollar,” said Ichikawa at Sumitomo Mitsui Asset Management.

Commodity-linked currencies such as the Australian dollar suffered deep losses on Wednesday. The Aussie traded little changed at $0.7366 after dropping 1.2 percent overnight.

The Canadian dollar was steady at C$1.3208 per dollar following a loss of 0.75 percent the previous day.

The euro was flat at $1.1675 after shedding 0.6 percent on Wednesday.

In commodities, US crude futures inched up 0.25 percent to $70.57 a barrel after tumbling 5 percent the previous day as trade tensions threatened to hurt oil demand and news that Libya would reopen its ports raised expectations of growing supply. [

Brent crude rose 0.7 percent to $73.93 a barrel after tanking 6.9 percent overnight.

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

Stocks slip, yen rises as US raises stakes in trade conflict

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

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Asian stocks retreated and perceived safe havens such as the yen and US Treasuries rose on Wednesday after the United States said it would impose tariffs on an extra $200 billion worth of Chinese imports, sharply escalating the trade war between the world’s two biggest economies.

Washington decided to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday.

The United States had just imposed tariffs on $34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on US imports in the first shots of a heated trade war. US President Donald Trump had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 percent. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.

South Korea’s KOSPI lost 1 percent and Japan’s Nikkei fell 1.2 percent.

S&P 500 and Dow futures were down 0.8 percent and 0.95 percent, respectively, pointing to a lower open for Wall Street later in the day.

“The markets still remain sensitive to the trade-related theme, which is something investors have to take into account for the long term,” said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo.

“At the same time, the trade dispute can easily be blamed for a variety of ills. But it could mask over factors that could also weigh on equities in the longer run, such as tighter monetary policies led by the United States.”

The yen, often sought in times of political tensions and market turmoil, gained against a number of peers.

The dollar was down 0.1 percent at 110.88 yen, pulled back from a near two-month peak of 111.355.

The euro fell 0.25 percent to 130.11 yen and the Australian dollar lost 0.7 percent to 82.24 yen.

The Aussie, considered a liquid proxy for China-related trades, fell 0.5 percent against the dollar to $0.7422.

The 10-year Treasury note yield fell roughly 4 basis points to 2.8345 percent, pulling back from the previous day’s peak of 2.875 percent.

Brent crude futures lost 0.57 percent to $78.41 a barrel. Oil had risen the previous day, supported by a larger-than expected US stock draw and supply concerns in Norway and Libya.

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 shares edge higher, sterling slugged by UK politics

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

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Asian share markets crept higher on Monday following favorable U.S. jobs data, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt.

The pound peeled off around a third of a US cent to $1.3292 in early trading as news broke British Brexit Secretary David Davis and Brexit Minister Steven Baker had resigned.

The loss came just two days after a meeting at May’s Chequers country residence supposedly sealed a cabinet deal on Brexit and underlines the deep divisions in her ruling Conservative Party over the departure from the EU.

Sentiment in other markets was mostly positive after Friday’s US payrolls report showed tame wages and more people looking for work.

“The combination of rising employment and increased labor force participation suggests healthy but not tightening labor market conditions in June, something that will allow the Fed to continue to hike rates at a gradual pace,” said Kevin Cummins, a senior US economist at RBS.

The balanced report helped Wall Street end last week in the black and Japan’s Nikkei followed up with gains of 1 percent on Monday.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent, on top of 0.7 percent rally on Friday when the launch of U.S. tariffs on Chinese imports came and went without too many fireworks.

“While trade tensions fan concerns about the future, incoming data show a soaring US economy, a healthy labor market, and some rebound in Europe and Japan,” said Barclays economist Michael Gapen.

“For now, overall policies and financial conditions still support growth and investment,” he added. “A sharper-than-expected China slowdown from a domestic credit crunch and external trade tensions could be the main risk to global growth.”

The focus this week would be on Chinese data for June covering inflation, new loans and international trade. The United States also releases inflation figures, while the Bank of Canada might well hike rates on Wednesday.

In currency markets, the US dollar was mostly softer following the jobs report, with sterling being an exception.

Against a basket of currencies the dollar had pulled back to 93.925, from a top of 94.486 on Friday. The euro held its gains at $1.1750, while the dollar was flat on the yen at 110.48.

In commodity markets, oil prices were little moved in early trade after a mixed end to last week.

US crude futures gained 2 cents to $73.82 a barrel, while Brent eased 1 cent to $77.10 a barrel.

Gold was little changed at $1,256.39 an ounce.

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