Asian markets up on recovery hopes, yen sinks after BoJ decision

HONG KONG - Asian markets rose Wednesday to maintain their strong start to the year, with Tokyo soaring and the yen tumbling after the Bank of Japan decided against further tweaking monetary policy.

Weak earnings from banking titan Goldman Sachs, a jobs warning by Microsoft, and a plunge in manufacturing data highlighted the bumpy road ahead for the United States, the world's top economy, even as optimism over inflation and the interest rate outlook improved.

Still, hopes for China's recovery continued to provide much-needed support, with Vice Premier Liu He telling the Davos forum that growth will likely rebound this year as the country reopens from zero-Covid while adding that Covid infections had peaked.

His comments came after data showed the economy expanded last year at its slowest pace since 1976 -- excluding pandemic-hit 2020 -- but beat forecasts.

The news added to hopes for a global recovery after last year's pain caused by rising prices, rate hikes, China's economic woes, a spike in energy costs and the war in Ukraine.

"Last fall, there was broad consensus that China was in the wrong place, Europe was slipping into a recession, and the Fed was ultimately caught 'wrong-footed' by very sticky inflation," said SPI Asset Management's Stephen Innes.

"But fast-forward to these early weeks of January, and China's reopening has put the country on a path to much better growth, investors are far more optimistic about Europe's recovery, and the bane of all ills US inflation is even starting to recede."

Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, Bangkok, Mumbai and Jakarta were all on the rise, though Seoul dipped.

Tokyo was the standout, however, piling on more than two percent after the Bank of Japan left its key policy rate unchanged.

But the yen tumbled from around 128.50 per dollar to more than 131 Wednesday after the move. It also tumbled against the euro and sterling.

Traders had been keenly anticipating the decision, which came after the BoJ last month shocked markets by announcing a tweak that allowed its tightly controlled bond yields to move in a wider bracket.

Clifford Bennett, chief economist at ACY Securities, said the decision indicated the BoJ was "acting appropriately in what is still an uncertain economic growth path, and still low inflation levels".

While other central banks have hiked rates, "Japan has long been a different story and remains so", he added in a note.

The move in December sent the yen soaring, and while the bank held firm Wednesday, there is a growing expectation that officials will eventually move away from the policy of buying up bonds to keep yields in check.

"Speculation will remain that it will eventually review its policy," said Takahide Kiuchi, executive economist at Nomura Research Institute and a former BoJ policy board member.

"Market focus will now shift to the appointment of a new governor," he told AFP, noting that the bank needs to "make its policy flexible" whoever is appointed.

However, other observers said if the BoJ continued to stick to its position, the Japanese unit could fall back to around 135 per dollar.

The strategy has been in place for years as the BoJ has attempted to boost the stuttering economy by keeping borrowing costs low, but with other central banks hiking rates, the yen came under immense pressure and hit a three-decade low of around 152 per dollar in October.

Key figures around 0520 GMT 

Tokyo - Nikkei 225: UP 2.5 percent at 26,790.52

Hong Kong - Hang Seng Index: UP 0.2 percent at 21,616.17

Shanghai - Composite: UP 0.1 percent at 3,228.60

Dollar/yen: UP at 131.40 yen from 128.13 yen on Tuesday

Euro/dollar: DOWN at $1.0772 from $1.0794 

Pound/dollar: DOWN at $1.2283 from $1.2285

Euro/pound: DOWN at 87.70 pence from 87.85 pence

West Texas Intermediate: UP 0.9 percent at $80.89 a barrel

Brent North Sea crude: UP 0.8 percent at $86.58 a barrel

New York - Dow: DOWN 1.1 percent at 33,910.85 (close)

London - FTSE 100: DOWN 0.1 percent at 7,851.03 (close)

Agence France-Presse

Asian markets rise again on recovery hope as inflation data looms

HONG KONG - Asian equities pushed higher Wednesday as investors were buoyed by China's reopening and optimism that key data due this week will signal a further slowdown in US inflation.

Traders tracked a Wall Street advance as they brushed off fresh warnings that Federal Reserve rates would continue to rise and a World Bank decision to slash its global growth forecast.

After a stumble Tuesday, regional markets resumed the upward push that has characterized the start of the year thanks to China's emergence from nearly three years of zero-COVID isolation.

The reopening, easing of Beijing's tech crackdown and moves to help the property sector have raised hopes for the world's number-two economy, a crucial driver of world growth.

SPI Asset Management's Stephen Innes said: "Despite a solid start to the year, there should be a lot more upside to China's stocks, with earnings upgrades to drive further outperformance.

"Although we are not pitching a tent in that camp just yet, many investors are starting to believe China's reopening could be faster than expected on pent-up demand, a robust economic rebound and fewer supply constraints."

In early trade, Hong Kong again led the gains by piling on more than one percent, having already added about eight percent in 2023. Shanghai, Tokyo, Sydney, Seoul and Singapore were also in the ascendancy, though there were small losses in Wellington, Taipei and Manila.

Focus this week is on Thursday's US consumer price index, which is expected to show that price gains eased further in December.

But while that could possibly allow the Federal Reserve to take a lighter approach to its monetary tightening campaign, policymakers continue to push back against any pivot away from rate hikes.

Markets were battered last year by fears that almost a year of hikes will tip the economy into recession.

Bank boss Jerome Powell said that "restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy".

Meanwhile, Fed governor Michelle Bowman said that while inflation was coming down, "we have a lot more work to do" and that once rates had peaked they would have to stay there for some time. 

She added that "unemployment has remained low as we have tightened monetary policy and made progress in lowering inflation".

"I take this as a hopeful sign that we can succeed in lowering inflation without a significant economic downturn," she said.

And JP Morgan Chase CEO Jamie Dimon said borrowing costs could actually go higher than the five percent priced in by markets, suggesting they could hit six percent.

There was little reaction to the World Bank slashing its 2023 global growth forecast by about half and a warning that the economy was "perilously close" to recession owing to high inflation, rising interest rates and Russia's invasion of Ukraine.

Economists have warned of a slump in the world economy as countries battle soaring costs and central banks simultaneously hike interest rates to cool demand amid ongoing disruptions from the war in Ukraine.

The World Bank's latest forecast points to a "sharp, long-lasting slowdown", with growth pegged at 1.7 percent this year, roughly half the pace it predicted in June, according to its Global Economic Prospects report.

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

Tokyo - Nikkei 225: UP 1.1 percent at 26,457.56 (break)

Hong Kong - Hang Seng Index: 1.5 percent at 21,642.27

Shanghai - Composite: UP 0.3 percent at 3,177.88

Dollar/yen: UP at 132.44 yen from 132.21 yen on Tuesday

Euro/dollar: DOWN at $1.0733 from $1.0739

Pound/dollar: UP at $1.2156 from $1.2153

Euro/pound: DOWN at 88.31 pence from 88.34 pence

West Texas Intermediate: DOWN 0.8 percent at $74.54 a barrel

Brent North Sea crude: DOWN 0.7 percent at $79.51 a barrel

New York - Dow: UP 0.6 percent at 33,704.10 (close)

London - FTSE 100: DOWN 0.4 percent at 7,694.49 (close)

Agence France-Presse

Asia tracks Wall St losses on Fed tightening concerns

HONG KONG - Asian stocks opened with losses on Monday, as unease lingered over tightening monetary policy by the Fed and investors awaited earnings reports by retailers due this week.

Wall Street stocks mostly fell Friday. Both the S&P 500 and the Nasdaq retreated as the yield on the 10-year US Treasury note climbed above 2.7 percent, a signal markets are preparing for more tightening as the Federal Reserve battles inflation.

The losses continued Monday in Tokyo, as well as in Hong Kong and Shanghai where the main indexes lost more than two percent.

Taipei and Seoul were also down, while Sydney and Jakarta posted slight gains.

"Stocks are soft at the Monday open on increasing evidence the Federal Reserve will take a more committed approach to its monetary policy inflation-fighting stance," said Stephen Innes at SPI Asset Management.

"However, markets have been surprisingly resilient as discussions under the surface debated whether this week's US March CPI data will hint at the peak of the inflation cycle and help the Fed's chance to better engineer a soft landing, however narrow that path may seem."

And Takashi Hiroki, chief strategist of Monex, added: "Focus this week is on the US and Chinese consumer price indexes for March," among other data, to glean clues on the Fed's monetary policy and that of other central banks.

The US central bank has recently taken a hawkish tone as it embarks on an aggressive tightening path, prompting traders to fret over the prospect of higher interest rates.

The euro climbed as much as 0.7 percent against the dollar before paring the gain, suggesting some relief over the French election but ongoing wariness.

Investors had fretted about the implications of a victory for President Emmanuel Macron's nationalist rival Marine Le Pen in the midst of the war in Ukraine, given her long-standing sympathies for Russia.

Macron was set to beat Le Pen in the first round of elections Sunday by a larger-than-expected margin, the two candidates advancing to a run-off later this month.

"Make no mistake: nothing is decided," Macron told supporters.

Agence France-Presse

Asian markets down as investors look to uncertain 2022

HONG KONG - Asian stocks were mostly down in Wednesday trade as a "Santa Claus rally" showed signs of fatigue and continued fears over the Omicron variant -- as well as uncertainty about economic prospects for 2022 -- weighed on markets.

Covid-19 cases have surged across the world, prompting governments to impose new measures to limit contagion while the travel industry faced thousands of flight cancellations.

Warnings from the World Health Organization that the risk from the variant remains "very high" have compounded the sense that the pandemic is far from over, though data showing a reduced risk of hospitalization has lifted spirits.

Reflecting the uncertainty, Tokyo closed down in thin holiday trade on Wednesday, with the market weighed down by US futures losses.

Seoul was also down, while Sydney and Wellington rose. Europe opened mixed, with London's FTSE slightly up while Paris and Frankfurt fell. 

In China, markets fell, in a slide analysts partly attributed to losses in shares of major liquor brands -- including Kweichow Moutai, one of the world's biggest drinks companies.

"The drop is mostly contributed by some blue chips, in particular the baijiu names," Zhang Gang, a strategist at Central China Securities, told Bloomberg.

"It's likely that some funds want to cash out before the year-end after the recent rebound."

Hong Kong's Hang Seng Index was down as investors eyed uncertain prospects for 2022 as well as a continued debt crisis in the mainland's property market.

A continued regulatory clampdown by Beijing on overseas listings by Chinese firms has also weighed down markets -- though expectations that the country's central bank will add further stimulus in 2022 offered some hope.

FITS AND STARTS 

But trading volumes remain thin going into the new year, when prospects for global growth and the long-term impact of the Omicron variant are expected to become clearer.

Moody's economist Mark Zandi said in a note the Omicron wave would dent growth in the first quarter, but "not have a material impact" on 2022 overall because of a rebound later in the year.

"Even after the Omicron wave abates, there will almost surely be others. But we expect each new wave to be less disruptive to the healthcare system and economy than the wave before it," he said.

Katie Nixon, chief investment officer for Northern Trust Wealth Management, was also upbeat, saying her firm was "pretty constructive going into 2022".

"We're having fits and starts related to this Omicron variant of course. This will create maybe demand delayed but not destroyed," she told Bloomberg TV.

There was also optimism on oil markets, with crude holding a roughly one-month high on hopes that the Omicron variant will not dent global travel in the ways many had feared.

Agence France-Presse

Asian stocks on hold for Lunar New Year, bitcoin eyes record highs

TOKYO/NEW YORK - Asian shares hovered just below a record high on Friday as mixed US economic data caused some investors to show restraint after a global stock market rally pushed many bourses to dizzying heights.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.05 percent, trading just shy of an all-time high reached in the previous session. Australian stocks lost 0.63 percent. Shares in Tokyo fell 0.2 percent, pulling back from 30-year highs.

Futures for the S&P 500 declined 0.12 percent. Euro Stoxx 50 futures were up 0.03 percent, German DAX futures slipped 0.14 percent, and FTSE futures eased 0.13 percent, pointing to a subdued start to European trading.

Markets in Greater China and most of Southeast Asia are closed on Friday for the Lunar New Year holiday. China’s stock and bond markets, foreign exchange and commodity futures markets are closed through Feb. 17 for the holiday.

Bitcoin surged to a new record high after BNY Mellon said it would offer custodian services for cryptocurrencies. The dollar headed for a weekly loss, stung by bitcoin’s assent and disappointing U.S. economic data.

Trading in the United States and Europe on Thursday did not move prices enough to provide much direction, said Tom Piotrowski, a market analyst at CommSec in Sydney.

“We didn’t get much of a lead-in from the northern hemisphere,” Piotrowski said. “Markets are in a bit of a holding pattern waiting for the next catalyst and it is just a question of whether that catalyst is going to be a positive one or a negative one.”

World stock markets were holding close to record highs on Thursday as investors weighed some tepid economic data against increasing vaccinations against COVID-19 and the prospect that more government spending and continued cheap money from central banks will drive higher growth and, eventually, inflation.

The MSCI world equity index, which tracks shares in 49 countries, fell 0.03 percent on Friday, also pulling back from a record high.

On Wall Street, the Nasdaq and S&P 500 eked out gains of 0.4 percent and 0.2 percent, respectively, while the Dow Jones Industrial Average slipped 0.02 percent.

Prices held near records as investors bet on more government spending, although enthusiasm was tempered when U.S. President Joe Biden said that China was poised to “eat our lunch,” raising fears of renewed strain on Sino-U.S. ties.

U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, which caused some traders to temper the optimism about the economic outlook.

Bitcoin reached a record high of $49,000 before erasing gains.

BNY Mellon’s announcement that it will help clients hold, transfer and issue digital assets came just days after Elon Musk’s Tesla revealed it had bought $1.5 billion worth of the cryptocurrency and would accept it as a form of payment for its cars.

Spot gold fell 0.17 percent to $1,822.21 per ounce. U.S. gold futures fell 0.14 percent to $1,829.50. Gold prices are still on track for their best week in three amid broad dollar selling.

The dollar index edged up by 0.05 percent on Friday but was still on course for a 0.6 percent weekly decline.

Soft demand at an auction of $27 billion of new 30-year Treasuries on Thursday rattled bond investors.

The yield on 10-year U.S. Treasuries rose to 1.1599 percent. The 30-year yield initially rose but then fell back to 1.9398 percent.

Brent crude fell 0.57 percent to $60.79 a barrel, having dropped half a percent the previous session. U.S. oil fell 0.64 percent to $57.88 a barrel, after falling by 0.8 percent on Thursday.

OPEC cut its demand forecast and the International Energy Agency said the market was still oversupplied, which cast a gloom over energy markets.

-reuters-

Asian stocks at 2-week high as Trump returns to White House

SINGAPORE - Asian stock markets advanced to a two-week high on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh U.S. stimulus package appeared to brighten.

Bonds and the dollar nursed losses amid the improving risk appetite, while oil extended gains.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt "real good", though one of his doctors cautioned that he may not be out of the woods yet. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.71 percent to a two week-high, led by Hong Kong climbing 0.88 percent. Japan's Nikkei also added 0.41 percent.

Separately, U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and were preparing to talk again Tuesday, continuing their work towards a deal on coronavirus relief spending. 

As well as Trump's health, "there is also some market attention on whether the U.S. Congress will pass the extra stimulus bill," said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management

"If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired," he said.

S&P 500 futures rose 0.08 percent after the best daily gain on the S&P 500 index in a month overnight. Oil held sharp overnight gains. 

Australia's ASX 200 was more subdued, up 0.17 percent, ahead of a central bank meeting at 0330 GMT and the government's budget later in the day.

China's markets remain closed for a holiday.

Asian markets on Monday unwound most of a Friday selloff in the wake of Trump's COVID-19 diagnosis. That improvement also caused Wall Street to rally sharply overnight with energy, tech and healthcare stocks leading. The Dow rose 1.7 percent, the S&P 500 1.8 percent and the Nasdaq 2.3 percent. 

Bond markets also joined in, with the safe-haven asset being sold - especially at the long end - in line with the optimistic mood. The yield on U.S. 30-year government bonds rose 10 basis points to a four month high of 1.5930 percent, before easing slightly. 

Benchmark 10-year yields hit a more than five-week high, and held just shy of that in Asian morning trading at 0.7634 percent.

"Improved near-term stimulus prospects and then potentially bigger deficits under a Biden presidency that has the benefit of clean sweep, are behind the yield gains here," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

In currency markets, the dollar was under pressure on other majors apart from the yen, since higher yields can often draw flows from Japan. 

The yen hovered at 105.7 per dollar, while the risk-sensitive Australian and New Zealand dollars edged ahead, with the Aussie last up 0.13 percent at $0.7191.

Oil jumped more than 5 percent overnight and held there in Asia, supported by optimism surrounding Trump's health and a supply squeeze as a strike shut six Norwegian offshore oil and gas fields. 

The strike will cut Norway's total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association (NOG). 

U.S. crude last stood at $39.27 up 0.13 percent and, Brent crude rose 0.2 percent to $41.37. Gold was steady at $1,912 an ounce.

-reuters-

Asia stocks set to rise after Wall Street gains on oil rebound

WASHINGTON -- Asian equity markets were poised to edge higher on Thursday after rebounding crude prices and the promise of more US government aid to ease the economic pain inflicted by the coronavirus crisis helped calm global equity markets.

Better-than-expected US corporate earnings also lifted equities, analysts said, prompting investors to edge out of perceived safe-haven assets like US Treasuries on Wednesday.

Australian S&P/ASX 200 futures were up 0.94 percent at 20:59 GMT (4:59 a.m. in Manila), while Japan's Nikkei 225 futures were down 0.18 percent.

The Nikkei 225 index closed down 1.97 percent at 19,280.78​​​ on Wednesday. The futures contract is up 0.15 percent from that close.​ Hong Kong's Hang Seng index futures rose 0.13 percent.

On Wall Street, all 11 S&P 500 sector indexes traded higher as the US Senate unanimously approved the new relief package, adding to trillions of dollars in stimulus that have helped Wall Street rebound from its March lows.

The House of Representatives is expected on Thursday to clear the relief, which would be the fourth coronavirus measure passed by Congress, and would boost the overall federal financial response to almost $3 trillion.

In Europe, traders were buoyed after Italy breezed through a major debt sale on Tuesday and speculation continued that the European Central Bank would provide more support measures.

Still, it may take European Union countries until the summer if not longer to agree on how to finance aid to help economies recover from the pandemic as major disagreements persist, a bloc official said on Wednesday.

Brent oil rose more than 7 percent, after earlier in the day touching its lowest level since 1999, on the prospects for further production cuts to reduce the glut in the oil market, sending the S&P 500 energy index up 3.6 percent.

US crude was trading up 4.72 percent to $14.43 per barrel.

Dozens of vessels have been booked in recent days to store at least 30 million barrels of jet fuel, gasoline and diesel at sea, as on-land tanks are full or already booked, according to traders and shipping data reviewed by Reuters.

US storage onshore is swiftly filling, with inventories now at 518.6 million barrels, not far from an all-time record.

On Wall Street, the Dow Jones Industrial Average rose 456.94 points, or 1.99 percent, to 23,475.82, the S&P 500 gained 62.75 points, or 2.29 percent, to 2,799.31 and the Nasdaq Composite added 232.15 points, or 2.81 percent, to 8,495.38.

Shares of US-listed Chinese companies may face headwinds after the head of the US securities regulator warned investors against putting money into Chinese companies due to ongoing governance issues with their disclosures.

MSCI's gauge of stocks across the globe gained 1.78 percent following a broad rally in Europe.

The dollar index rose 0.259 percent, with the euro down 0.13 percent to $1.0808.

The Canadian dollar fell 0.14 percent versus the greenback at 1.42 per dollar after the nation's death toll from the coronavirus rose by less than 10 percent for the third day in a row, data showed on Wednesday, and some provinces prepared to start lifting shutdowns imposed to fight the outbreak.

Gains in the oil market helped draw investors into riskier assets, pulling government bond yields higher.

Benchmark 10-year notes last rose 4/32 in price to yield 0.6175 percent, from 0.619 percent.

-reuters-

Asia stocks rise on bets of more coronavirus stimulus as dollar rally fades

TOKYO -- Asian stocks rose on Friday as investors wagered policymakers will roll out additional stimulus measures to combat the coronavirus pandemic after US unemployment filings surged to a record.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent. Australian shares were up 2.02 percent, while Japan's Nikkei stock index rose 3.65 percent.

E-Mini futures for the S&P 500 rose 0.81 percent in Asia following 3 consecutive days of gains in the S&P 500 on Wall Street.

The dollar nursed losses against major currencies as central banks' steps to solve a dollar shortage in funding markets started to gain traction.

The US House of Representatives is expected to pass a $2 trillion stimulus package later on Friday that will flood the world's largest economy with money to stem the damage caused by the pandemic.

The US Federal Reserve has already slashed rates to zero and launched quantitative easing. The Fed will also take the unprecedented step of offering a direct backstop for corporate loans.

The United States is now the country with the most coronavirus cases, surpassing even China, where the flu-like illness first emerged late last year. Policymakers may need to offer more stimulus as the virus slams the brakes on economic activity and increases healthcare spending.

"I'm not sure what measures are left, but the reaction in stocks shows some people hoping for more stimulus thought the market was a little oversold," said Yukio Ishizuki, FX strategist at Daiwa Securities in Tokyo.

"Currencies tell a different story. The dollar is the lead actor. The mad rush to buy dollars due to liquidity concerns is starting to fade."

The number of Americans filing claims for unemployment benefits surged to a record of more than 3 million last week as strict measures to contain the coronavirus pandemic ground the country to a sudden halt, data showed on Thursday.

The jobless blowout was announced shortly after Federal Reserve Chairman Jerome Powell said that the United States "may well be in recession," an unusual acknowledgement by a Fed chair that the economy may be contracting even before data confirms it.

Global equity markets took the data in their stride, partly because most central banks have already aggressively eased policy and governments are backing this up with big fiscal spending.

Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy to limit job and income losses from the coronavirus and "do whatever it takes to overcome the pandemic."

In the currency market, the greenback fell 0.25 percent to 109.34 yen in Asia on Friday, on pace for a 1.3 percent weekly decline.

The dollar was also headed for weekly declines against the Swiss franc, the pound, and the euro .

The US currency's fall after two weeks of gains suggests that the Fed's efforts to relieve a crunch in the dollar funding market are working, some analysts said.

The yield on benchmark 10-year Treasury notes rose slightly in Asia to 0.8383 percent, while the two-year yield edged up to 0.2946 percent.

Yields were still headed for a weekly decline, taking cues from the Fed's extraordinary steps to bolster markets and the $2 trillion stimulus package.

US crude ticked up 1.77 percent to $23 a barrel in Asia. Energy markets have been caught in a tug-of-war between hopes for stimulus spending and worries about excess supplies of crude.

Gold, normally bought as a safe haven, was slightly lower. Spot gold fell 0.30 percent to $1,626.58 per ounce.

Gold market participants remained concerned about a supply squeeze following a sharp divergence between prices in London and in New York. The coronavirus has grounded planes normally used to transport gold and closed precious metals refineries

source: news.abs-cbn.com

Asian markets braced for deeper rout as virus panic worsens

SINGAPORE -- Asia's stocks were poised to plunge further on Friday as panic gripped world financial markets and even safe-haven assets such as gold were ditched to cover losses in the wipeout.

S&P 500 futures are down 0.5 percent in Asia. Nikkei futures were 10.88 percent lower in late New York trade. Australia's benchmark lost 7 percent and New Zealand's index was last more than 8 percent, its biggest intraday drop on record.

Currency trading was erratic amid poor liquidity and a rush to secure financing in dollars.

Overnight, Wall Street's Dow industrials index suffered its largest daily decline since the 1987 Black Monday crash.


The plunge, as the coronavirus pandemic spreads, gathered steam after US President Donald Trump spooked investors with a move to restrict travel from Europe, and after the European Central Bank disappointed markets by holding back on rate cuts.

Trade was halted on the S&P 500 after it hit downdraft circuit breakers. It fell further when trade resumed, eventually losing 9.5 percent to close 27 percent below February's peak.

Gold fell 3.5 percent, yields on long-dated US Treasuries rose amid the panic, and in the currency markets, investors stampeded into the dollar.

"Everyone is just de-risking," said Stuart Oakley, Nomura's global head of flow FX in Singapore.

"It's not just a case of the stock market going down, anyone who's long the stock market needs to chop out...it's just a case of people wanting to bring risk back to flat," he said.

In a televised address late on Wednesday, US President Donald Trump imposed restrictions on travel from Europe to the United States, shocking investors and travelers.

Traders were disappointed after hoping to see broader measures to fight the spread of the virus and blunt its expected blow to economic growth.

The New York Federal Reserve pumped more liquidity to banks to try and stabilize the system as markets show signs of stress.

MSCI's gauge of stocks across the globe shed 9.51 percent and was down more than 20 percent from its 52-week peak.

The VIX volatility index - Wall Street's "fear gauge" - and an equivalent measure of volatility for the Euro Stoxx 50 hit their highest since the 2008 financial crisis.

In early Asia currency trade volumes were light and tight liquidity exaggerated moves. The dollar handed back some gains to the yen, pound and franc and Australian dollar lifted about 1 percent from an 11-year low to $0.6287.

The euro found footing at $1.1171 after falling as far as $1.1054 overnight.

source: news.abs-cbn.com

Asia stocks extend global rout on coronavirus fears

TOKYO — Stocks in Asia sank at the open on Thursday, extending a global rout as fears intensify over the spread of the new coronavirus, now dubbed a pandemic by the World Health Organization.

As the economic impact of the COVID-19 outbreak grows, markets worldwide are in free-fall and companies are sounding the alarm.

It was a sea of red for Asian markets at the open, with Tokyo's benchmark Nikkei 225 index down 2.24 percent to 18,980.22 and the broader Topix index falling 2.42 percent to 1,351.61.

Australia's ASX was down 2.6 percent an hour into trade, with New Zealand's benchmark NZX 50 down nearly three percent in early afternoon trade. South Korea's KOSPI was down 1.22 percent in early trade.

The jitters followed another brutal session on the US markets, with wave after wave of bad news, including Hilton withdrawing its earnings forecast and Boeing saying it would suspend most hiring and overtime pay.

The coronavirus outbreak has left virtually no sector untouched, though travel and tourism have been particularly hard-hit as countries institute travel bans and quarantine requirements.

The Dow Jones Industrial Index plunged around 1,465 points, or 5.9 percent, to 23,553.22 on Wednesday, in a bruising session that left the index more than 20 percent below its peak, making it a bear market.

Leading stock markets in Europe also retreated, including the FTSE 100 which dropped 1.4 percent despite the Bank of England slashing its key interest rate to a record low and the government pledging $39 billion of fiscal stimulus.

Analysts said markets were struggling under the weight of twin crises: the burgeoning coronavirus outbreak and an oil price war.

Oil prices slid further on Thursday morning, with Brent crude at $35.72 a barrel, after Saudi Arabia and Gulf partner UAE stepped up a price war with plans to flood the global markets.

The move is the latest escalation of a fight among oil producers after Russia balked at an OPEC-backed plan to cut production in response to lost demand from the coronavirus.

"The virus itself continues to spread in Europe and the US, meaning more extensive containment measures are likely, which will weigh further on global growth," wrote Tapas Strickland, senior analyst at National Australia Bank.

"Markets are crying out for a coordinated response to COVID-19 headwinds and a lack of concrete US policy action is rattling markets," he said.

Investors were expected to closely monitor an address to the nation by US President Donald Trump, scheduled for 9 a.m. in Manila, but it was not immediately clear if financial support offered by his administration would be enough to calm the markets.

"The market is faced with 2 highly uncertain bearish shocks in the form of an unholy COVID-19 economic catastrophe in Italy, and most of Europe, compounded by a dizzying oil price downdraft," wrote Stephen Innes, chief market strategist at AxiCorp

"Nothing is immune from this insidious virus. Still, the market may not be yet pricing in a worst-case scenario from this double whammy risk beat-down," he warned.

On the currency markets, the dollar fetched 104.57 yen in early Asian trade, against 104.54 yen in New York late Wednesday.

Agence France-Presse

World stock rebound stalls as doubts about US coronavirus response grow

TOKYO -- Asian shares and Wall Street futures fell on Wednesday as growing skepticism about Washington's stimulus package to fight the coronavirus outbreak knocked the steam out of an earlier rally.

Markets had been recovering from a brutal global selloff on Monday that was triggered by the double shock of an oil price crash and the worsening outbreak.

Those gains looked short-lived in early Asian trade, with U.S. stock futures falling 1.54 percent and MSCI's broadest index of Asia-Pacific shares outside Japan down 0.04 percent. Australian shares were down 1.31 percent. Japan's Nikkei index erased early losses to rise 0.24 percent.

Earlier this week, US President Donald Trump said he would take "major steps" to ease economic strains caused by the spread of the flu-like virus. Headlines focused on discussions of payroll tax cut, which helped lift market sentiment.

However, the lack of major announcements since then has left some investors unimpressed.

"We were promised something substantive from the Trump administration, and if it hasn't come yet at this hour, then it looks like it is being delayed," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"That's why markets have a negative tone. From a global investor's perspective, there are still a lot of downside risks."

On Wall Street all three major indexes jumped nearly 5 percent on Tuesday, one day after US equities markets suffered their biggest one-day losses since the 2008 financial crisis.

The dollar gave up gains and fell against the yen, the Swiss franc and the euro as uncertainty set in.

Benchmark US 10-year Treasury yields were last at 0.7603 percent, more than double Monday's record low yield of 0.3180 percent.

Further gains in yields could be limited because there are still strong expectations that the US Federal Reserve and other central banks will support fiscal stimulus with monetary easing.

Market participants largely expect the Fed to cut interest rates for the second time this month at the conclusion of next week's regularly scheduled policy meeting after surprising investors last week with 50 basis point rate cut.

The euro is also in focus before a European Central Bank meeting on Thursday, where policymakers will face pressure to ease policy after Italy put its entire country on lockdown in an attempt to slow new coronavirus infections.

US crude fell 0.52 percent to $34.18 a barrel, dashing hopes that the market could stabilize.

On Monday the oil market collapsed and futures saw their largest percentage drop since 1991 Gulf War as a price war between Saudi Arabia and Russia broke out.

Many analysts say investors need to remain on guard for further market volatility, because the coronavirus still poses a risk to public health in many countries, which could place additional strain on the global economy.

The virus emerged late last year in the central Chinese province of Hubei but has since spread rapidly outside of China, leading to more than 4,000 deaths.

Restrictions on movement and factory closures aimed at stopping the epidemic are putting the brakes on global economic activity.

source: news.abs-cbn.com

Asia shares try to find a floor after COVID-19 triggers free fall

SYDNEY -- Asian markets were set for a fraught session on Tuesday after Wall Street suffered its biggest one-day loss since the 2008 financial crisis, piling pressure on policy makers globally to short-circuit the panic.

Speculation of more central bank rate cuts and possible fiscal stimulus did see US Treasury yields edge up from historic lows, and oil prices paused after the steepest fall since the 1991 Gulf war.

"The collapse in oil prices and associated credit concerns for producers has added another negative layer to a market already on its knees over the COVID-19 outbreak," said Rodrigo Catril, a senior FX strategist at National Australia Bank.

"Talk of coordinated fiscal and monetary support is getting louder," he added, noting US President Donald Trump was promising "major" steps to support the economy.

E-Mini futures for the S&P 500 were at least trying to steady, rallying 1 percent in Asia after an early slide.

Nikkei futures also came off lows, though they were still 600 points below Monday's cash close.

Wall Street had been on the brink of a bear market with all the major indices down almost 20 percent from their all-time peak, which amazingly were touched just 13 sessions ago.

The Dow fell an eye-watering 7.79 percent, while the S&P 500 lost 7.60 percent and the Nasdaq 7.29 percent. All 11 major sectors of S&P 500 ended the session deep in the red, with energy and financials taking the worst hit.

Energy stocks led the losses globally after Brent crude futures closed down 24 percent as markets braced for a price war between Saudi Arabia and Russia.

US crude inched up 92 cents to $32.05 on Tuesday, though that followed a 24 percent plunge overnight.

Headlines on the coronavirus were no better with Italy ordering everyone across the country not to move around other than for work and emergencies, while banning all public gatherings.

CENTRAL BANK CIRCUIT BREAKER

Such has been the conflagration of market wealth, that analysts assumed policy makers would have to react aggressively to prevent a self-fulfilling economic crisis.

"Without a circuit-breaker, there is a risk the volatility tightens global financial conditions and weakens economies," said Kim Mundy, an international economist at CBA.

"Because of the risks, we expect central banks to cut policy interest rates further as well as use other, unconventional, monetary policy tools."

The US Federal Reserve on Monday sharply stepped up the size of its fund injections into markets to head off stress.

Having delivered an emergency rate cut only last week, investors are fully pricing an easing of at least 75 basis points at the next Fed meeting on March 18, while a cut to near zero was now seen as likely by April.

Britain's finance minister is due to deliver his annual budget on Wednesday and there is much talk of coordinated stimulus with the Bank of England.

The European Central Bank meets on Thursday and will be under intense pressure to act, even though rates there are already deeply negative.

Bonds have charged ahead of the central banks to essentially price in a global recession of unknown length. Yields on 10-year US Treasuries reached as low as 0.318 percent - a level unthinkable just a week ago - and were last at 0.54 percent.

The dive in yields and Fed rate expectations has put an end to a multi-year uptrend for the dollar, to the benefit of the Japanese yen, euro and Swiss franc.

The dollar was huddled at 102.48 yen, having shed 2.8 percent overnight in the largest one-day drop since late 2016. Chart support was put around 101.20 but was unlikely to stop a retreat to the next major bear target at 100.00.

The euro was lording it at $1.1430, after climbing 1.4 percent on Monday to the highest in over 13 months at $1.1492.

Gold was restrained to $1,668.20 per ounce amid talk some investors were having to sell to raise cash to cover margin calls in stocks and other assets.

source: news.abs-cbn.com

Asia shares follow Wall Street higher as virus risk lurks

SYDNEY -- Asian shares were looking to rally for a fourth straight session on Thursday as US markets swung sharply higher and another dose of central bank stimulus offered some salve for the global economic outlook.

Wall Street seemed to find relief in the strong performance of former Vice President Biden in the Democratic nomination campaign. Biden is considered less likely to raise taxes and impose new regulations than rival Bernie Sanders.

The US House of Representatives also approved an $8.3 billion funding bill to combat the spread of the virus, sending the emergency legislation to the Senate.

In another wild swing the Dow surged 4.53 percent, while the S&P 500 gained 4.22 percent and the Nasdaq 3.85 percent.

Asian markets followed, if a little more cautiously. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2 percent, in its fourth day of gains.

Japan's Nikkei rose 0.8 percent and hard-hit Australian shares finally managed a bounce of 1.6 percent. E-Mini futures for the S&P 500 dipped 0.4 percent after its overnight jump.

That was not to say the coronavirus news had got any brighter, with mounting deaths across the globe, Italy closing all of its schools and airlines cutting more flights.

"There is little doubt that the covid-19 outbreak will slow global growth considerably this quarter, and we expect it to actually produce a rare non-recessionary contraction in GDP," said JPMorgan economist Joseph Lupton.

He noted the bank's all-industry PMI measure of activity for February slumped 6.1 points, the largest one-month drop on record, and at 46.1 was at the lowest since May 2009.

The Federal Reserve and Bank of Canada had both responded by cutting interest rates by 50 basis points, and markets in the euro zone are pricing in a 90 percent chance that the ECB will cut its deposit rate, now minus 0.50 percent, by 10 basis points next week.

Yet, as policymakers grapple with the best strategy to avoid a global recession, some major central bank have been less keen to follow suit.

In the end, monetary policy was not a cure for the disease and the impact was likely to get worse before it got better.

"As we test more folks for COVID-19 in the United States, the case loads will rise and perhaps exponentially. So in the short term, risk assets obviously remain beholden to COVID-19 headlines," Tom Porcelli, chief US economist at RBC Capital Markets.

"We have to get past the threshold where COVID-19 shifts from panic to headline exhaustion and subsequent news on it becomes more and more of a fade," he added. "Then risk assets can move higher in earnest."

HEALTHY, FOR NOW

At least the US economy was in healthy shape to face the risks, with services sector activity jumping to a one-year high in February, while private payrolls gained 183,000.

The better data combined with the rally in stocks to nudge 10-year Treasury yields up from all-time lows under 1 percent to reach 1.05 percent. Yields had fallen for 10 straight days, the longest slide in at least a generation.

That move gave the dollar a modest lift, with the euro dipping back to $1.1131 from a two-month high of $1.1212 hit earlier in the week.

The dollar also inched up to 107.57 yen, from a five-month trough of 106.84, while the dollar index firmed to 97.389.

Gold steadied after jumping in the wake of the Fed's rate cut, and was last at $1,637.13 per ounce.

Crude oil prices were mixed as major oil producers, including Saudi Arabia, tried to bring Russia on board for deeper supply cuts to try to offset a slump in demand.

Brent crude futures were off 16 cents at $51.70 a barrel, while US crude added 55 cents to $47.33.

source: news.abs-cbn.com

Asian stocks, US Treasury yields fall as pandemic fears intensify

TOKYO -- Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows.

The S&P 500 and the Dow Jones Industrial Average both shed more than 3 percent on Tuesday in their fourth straight session of losses.

That led MSCI's broadest index of Asia-Pacific shares outside Japan down 0.6 percent. Australian shares were down 1.77 percent, while Japan's Nikkei stock index slid 1.1 percent.

Yields on 10-year and 30-year US Treasuries teetered near record lows as worries about the economic impact of the virus outbreak boosted safe-haven assets.

Oil prices recovered some recent losses in Asia, but there are lingering concerns that expected output cuts by major oil producers will not be enough to offset a decline in global energy demand caused by the virus.

The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge.

"What we are seeing is share markets are playing catch up," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Other asset markets have been flashing warning signs for weeks. A corrective bounce in equities is possible, but we still have a lot of downward momentum."

While the stock rout has been global, the recent pace of selling in Asia has not been as severe as it has on Wall Street, which has been hit hard by the escalation of virus cases outside of Asia.

The S&P 500 lost $2.14 trillion in market capitalization over the last four sessions, according to S&P Dow Jones Indices analyst Howard Silverblatt.

US stock futures rose 0.5 percent in Asia on Wednesday, but that did little to brighten the mood.

Adding to recent fears was an alert from the US Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States, signalling a change in tone for the Atlanta-based US health agency.

The virus has claimed almost 3,000 lives in mainland China but has spread to dozens of other countries. Of increasing concern to investors, however, in the rising death toll in other countries.

Drastic travel restrictions slammed the brakes on China's manufacturing and consumer spending, and there are worries other countries will face similar disruptions.

The yield on benchmark 10-year Treasury notes traded at 1.3521 percent on Wednesday in Asia, close to a record low of 1.3070 percent The 30-year yield stood at 1.8274 percent, above a record low of 1.7860 percent.

The decline in yields weighed on the dollar. The greenback was last quoted at 110.25 yen, continuing a pullback from a 10-month high of 112.23 yen.

The dollar traded at $1.0877 per euro, off an almost three-year high of $1.0778 reached on Feb. 20.

US crude ticked up 0.58% to $50.19 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, have been sending signals that they will cut output further.

However, oil could come under more pressure as weekly US supply reports due later on Wednesday are expected to show a rise in inventories, according to a Reuters poll.

source: news.abs-cbn.com

Asian shares ease off 3-week highs as virus fears return

SYDNEY -- Asian shares stepped back from three-week highs on Monday as investors weighed the near-term hit on global growth from a fast-spreading coronavirus outbreak in China, although expectations of further policy stimulus helped stem losses.

Trading is expected to be light as US stocks and bond markets will be shut on Monday for a public holiday.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent to 555.50, easing further from last week's top of 558.30, which was the highest since late January.

Australian shares and South Korea's KOSPI index were each down 0.3 percent.

Japan's Nikkei fell more than 1 percent after data showed the country's economy contracted at an annualized pace of 6.3 percent in October-December, shrinking at the fastest pace since the second quarter of 2014.

The hit to the world's third-largest economy comes amid fresh concerns about weakness in the current quarter, as the coronavirus damages output and tourism, stoking fears Japan may be on the cusp of a recession.

Worryingly, Singapore downgraded its 2020 economic growth forecast due to the coronavirus outbreak, while China's economy is also widely expected to take a sharp hit.

Within China's Hubei province - the epicentre of the coronavirus epidemic, authorities reported 1,933 new cases on Monday, about 5 percent higher than the previous day.

Nationwide figures, due later in the day, are also expected to show an increase from the 2,009 cases last reported.

In a bid to help cushion the jolt from the epidemic, China's Finance Minister announced plans on Sunday to roll out targeted and phased tax and fee cuts to help relieve difficulties for businesses.

"There is also an expectation of fresh monetary policy support this week (from China) with a possible reduction of 5 basis points when the monthly prime loan rate is set," said Ray Attrill, head of forex strategy at National Australia Bank.

BULL RUN

Asia's woes have yet to spread elsewhere, with Wall Street indexes scaling record highs.

E-Mini futures for the S&P500 were up 0.1 percent in early Asian trading on Monday.

Talk of a US middle class tax cut and a proposal to encourage everyday Americans to invest in the equities market boosted share market sentiment late last week, Betashares chief economist David Bassanese said.

Bassanese had misgivings about the plan, saying it reminded him of former US President George Bush encouraging Americans to buy a home during a housing boom.

"It adds to my suspicion that this decade-long bull market could eventually end via a blow-off bubble, driven by central bank persistent low interest rate policy," he said in a note.

Later in the week, flash manufacturing activity data for February are due for the Eurozone, the United Kingdom and the United States which is likely to capture at least some of the early impacts of the viral epidemic.

Action was relatively muted in the currency markets, with the dollar flat against the yen at 109.74. It was unchanged on the pound at $1.3049 and a tad weaker on the euro at $1.0837.

The risk-sensitive Aussie, which is also played as a liquid proxy for the Chinese yuan, was also barely moved at $0.6716.

That left the dollar index at 99.093.

In commodities, gold inched slightly lower to $1,583.15 an ounce.

Oil futures were mixed with Brent crude down 8 cents at $57.24 and US crude up 4 cents at $52.09.

source: news.abs-cbn.com

Asian markets fall as coronavirus concerns weigh on sentiment

SYDNEY -- Stocks and oil fell while safe-haven gold rose on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity.

As many as 908 people have so far died in China's central Hubei province as of Sunday with most of the new deaths in the provincial capital of Wuhan, the epicenter of the outbreak.

MSCI's broadest index of Asia-Pacific shares outside Japan stumbled 0.7 percent to be on track for its second straight day of loss. Japan's Nikkei fell 0.8 percent while South Korea's KOSPI was off 1.4 percent and Australian shares eased 0.5 percent.

The losses extended from Wall Street on Friday where the Dow fell 0.9 percent, the S&P 500 declined 0.5 percent while the Nasdaq dropped 0.5 percent. E-mini futures for S&P 500 were down 0.3 percent on Monday.

"Expect markets to be sensitive to virus headlines. In this environment, we favor defensive positioning," ANZ economists wrote in a note.

"Markets will be sensitive to coronavirus news, as factories and ports in China reopen. The extent to which that is achievable will indicate the level of ongoing disruption," they added.

As Chinese authorities made plans for millions of people returning to work after an extended Lunar New Year break a large number of workplaces and schools are still likely to remain closed and many white-collar employees will work from home.

Worries about the hit to the world's second-largest economy has hurt investor risk appetite though confidence in China's ability to contain the epidemic has prevented sharp losses.

China's central bank has taken a raft of measures to support the economy, including reducing interest rates and flushing the market with liquidity. From Monday, it will provide special funds for banks to re-lend to businesses working to combat the virus.

Despite the measures, many of China's usually teeming cities have almost become ghost towns as authorities ordered virtual lockdowns, cancelled flights, closed factories and shut schools.

On Friday, Singapore raised its coronavirus alert level and reported more cases not linked to previous infections or travel to China.

An advance team of international experts led by the World Health Organization (WHO) left for Beijing to help investigate the epidemic, the Geneva-based agency said on Sunday.

The virus has dominated broader market sentiment with better-than-expected US jobs data on Friday failing to lift sentiment.

Non-farm payrolls increased by 225,000 jobs in January, with employment at construction sites increasing by the most in a year amid milder-than-normal temperatures, the Labor Department said.

Benchmark 10-year U.S. Treasury notes ticked higher to push yields down to 1.5645 percent.

Euro zone bond yields fell after German industrial output tumbled in December to notch its biggest fall since January 2009, fanning concerns about the bloc's biggest economy.

The euro held near four-month lows at $1.0950.

The dollar slipped against the yen to be on track for a second straight day of losses. It was last at 109.61 yen.

The Australian dollar, considered a liquid proxy for China plays, briefly hit an 11-year low of $0.6679. It fell 0.2 percent last week to clock its six straight weekly loss. That left the dollar index flat at 98.662.

Oil prices slipped as Russia said it would need more time before committing to output cuts along with the Organization of the Petroleum Exporting Countries and other producers amid falling demand for crude as China battles the coronavirus.

Since Jan. 17, oil prices have fallen by 14 percent while copper has is down around 10 percent.

Brent crude futures declined 52 cents to $53.95 a barrel, while US crude futures slipped 45 cents to $49.87 a barrel.

U.S. gold futures added 0.3% at $1,577.5 an ounce. Spot gold was higher at $1,574.4.

source: news.abs-cbn.com

Asian stocks perk up, safe-havens pullback on hopes for China stimulus

TOKYO -- Asian stocks steadied on Wednesday on hopes of additional Chinese stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 percent. Australian shares were up 0.58 percent, while Japan's Nikkei stock index rose 1.19 percent.

The safe-haven yen and Swiss franc nursed losses versus the dollar while the yuan held on to gains in offshore trade in a tentative sign of improvement in risk appetite as investors monitor the impact of the virus.

Oil prices, however, remained weak on worries about a long-term dent in demand for energy and other commodities despite hopes for more output cuts from OPEC and its allies.

China and other countries have imposed travel restrictions to try to contain a new virus that emerged in the central Chinese city of Wuhan late last year, slamming the breaks on manufacturing and tourism in the world's second-largest economy.


Many investors argue that any slowdown will be temporary and that Chinese policy steps are reason to remain optimistic about the growth outlook, but so far public health officials have not found a way to stop the spread of the virus both inside and outside of China.

"We're going to have a strong day in Asia, but whether this is the reversal of a downtrend remains to be seen," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Oil investors remain pessimistic about demand disruptions, but equity investors, especially overseas, are discounting the impact of the virus."

US stock futures fell 0.18 percent in Asia on Wednesday. The S&P 500 rose 1.5 percent on Tuesday and the tech-heavy Nasdaq rose to a record high.

The People's Bank of China (PBOC) is likely to lower its key lending rate - the loan prime rate - on Feb. 20, and cut banks' reserve requirement ratios in the coming weeks, policy sources told Reuters.

The PBOC has already pumped hundreds of billions of dollars into the financial system this week. This helped Chinese stocks stabilize on Tuesday following a rout that wiped out around $700 billion in market capitalization on Monday when Chinese markets opened after an extended holiday.

The virus has already claimed nearly 500 lives. Japan's health minister said on Wednesday 10 people on a cruise ship at the port of Yokohama have tested positive for the new virus.

In the currency market, the yen traded at 109.46 per dollar, close to the lowest in almost a week. The Swiss franc held steady at 0.9635 versus the dollar following a 0.3 percent decline on Tuesday.

In the offshore market, the yuan traded at 6.9898 per dollar after rising on Tuesday for the first time in five trading sessions.

Benchmark 10-year Treasury yields extended gains in Asia, rising to 1.6043 percent in another sign of receding concern about the coronavirus.

US crude ticked up 0.12 percent to $49.67 a barrel in Asia but remained below the psychologically important $50 a barrel mark.

US oil futures have lost 14.8 percent since China confirmed on Jan. 21 that human-to-human infection of the previously unknown virus is possible, which kicked of a rout in global markets as the number of cases and the death toll rose.

source: news.abs-cbn.com

World stocks at record high as techs lead relief rally

TOKYO -- The world's shares hit a record high on Friday as a relief over de-escalation of US-Iranian tensions quickly prompted investors to bet on faster global growth, especially in the technology sector.

MSCI's broadest gauge of the world's stocks in 49 countries rose a tad to hit an all-time high and its index on Asia-Pacific shares outside Japan rose 0.18 percent.

Japan's Nikkei rose 0.43 percent while Australian stocks rallied 0.67 percent to a record high.

That followed record-setting in the pan-regional STOXX 600 index in Europe and the three major stock indexes on Wall Street.

The S&P 500 gained 0.67 percent, with its technology sector rising more than 1 percent. Apple gained 2.1 percent, helped by news that the sales of its iPhones in China in December jumped more than 18 percent year on year.

Investors welcomed the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-US trade talks, to Washington next week to sign a trade deal with the United States.

Liu will visit Washington on Jan. 13-15 and US President Donald Trump has said the so-called phase one deal will be signed on Jan. 15.

"We will have a symbolic event of Sino-US dialogue. Given the current strength of the market, it is hard not to expect this rally to continue for the time being," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

Global shares quickly erased losses that followed missile attacks from Iran targeting US forces in Iraq, as the two countries moved to defuse the tension.

Waning worries about all-out war in the Middle East pushed down gold, safe-harbor currencies and oil.

Gold eased off to $1,552.80 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday.

Against the yen, the US dollar traded at 109.52 yen , having hit a two-week high of 109.58 in US trade on Thursday.

The euro stood little changed at $1.1105, having fallen to $1.10915 in the US trade, its lowest in about 2 weeks.

Oil prices were sharply lower from their highs hit in the wake of Iran's missile attack.

US West Texas Intermediate (WTI) crude fell to as low as $58.66 per barrel on Thursday and last stood at $59.51, down slightly on the day, compared to Wednesday's peak of $65.65.

source: news.abs-cbn.com