Stocks dip, oil slides and havens shine as growth nerves nag

SYDNEY, Australia - Stock markets slipped on Thursday and safe havens such as government bonds, gold and the yen were supported in Asia, as a hint of uneasiness crept in over the outlook for interest rates and growth, particularly outside of the United States.

Oil prices skidded to a six-week low on concern about a supply overhang and the prospect of China, Japan and the United States dipping into their fuel reserves, with Brent futures last at $79.77, more than 8 percent off last month's three-year high.

The risk-sensitive Australian dollar also fell to a six-week trough of $0.7256.

Japan's Nikkei was down 0.6 percent in early trade. MSCI's broadest index of Asian shares outside Japan dropped 0.5 percent and S&P 500 futures were flat after the index eased a little bit overnight.

The mood was softest in Hong Kong where concern over the earnings outlook weighed on tech stocks and an almost 5 percent drop in heavyweight Alibaba dragged the Hang Seng about 1 percent lower.

"We do seem to have stalled somewhat as we head into the year end," said Jun Bei Liu, a portfolio manager at Tribeca Investment Partners in Sydney.

"Investors perhaps are just taking a bit of pause," she said, in the wake of a strong US results season, but as inflation and China's slowdown loom as macroeconomic headwinds.

The yen, a safe-haven asset which has also lately been sensitive to oil prices, had its sharpest one-day jump against the dollar in three months on Wednesday while gold rose almost 1 percent and Treasuries rallied along the curve.

Gold rose a further 0.1 percent to $1,869 an ounce in Asia on Thursday. The yen edged up to 113.94 per dollar.

Benchmark 10-year Treasury yields were steady in Tokyo at 1.5889 percent after falling about 5.5 basis points overnight.

The day ahead is quiet on the calendar, with appearances from central bankers in Australia, the United States and Europe and US jobless claims data the highlights.

BIG DOLLAR

Against the backdrop of apparent caution is a surging US dollar, as US data has turned surprisingly strong just as doubts have arisen over the outlook for other major economies.

On Wednesday figures showed a jump in building permits and the backlog of house construction rose to a 15-year high - underscoring strong demand on the heels of a better-than-expected retail sales report on Tuesday.

By contrast Europe is grappling with a fourth wave of COVID-19 cases and fresh restrictions to curb it, while the central bank is pushing back on pressure to raise rates.

The euro has recovered from a trip below $1.13 on Wednesday but remains shaky at $1.1325 and is braced for its worst month on the dollar since June when the Federal Reserve had surprised investors with a hawkish shift in tone.

Currency traders are also assessing a sharp downdraft in the Aussie/yen cross, often a barometer of market sentiment. It fell through its 200-day moving average on Tuesday and has lost almost 4 percent in a dozen sessions.

"You've got the perfect storm there for bears," said Matt Simpson, senior analyst at brokerage City Index. "Fundamentally and technically Aussie/yen looks pretty good with lower oil prices."

(Reporting by Tom Westbrook in Sydney Editing by Shri Navaratnam)

-reuters-

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-

Asia shares mostly lower amid rising coronavirus cases, Washington turmoil

NEW YORK - Asian stocks were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season.

Political uncertainty dominated trading as House Democrats introduced a resolution to impeach U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol last week.

Several big tech giants, including Twitter Inc, Amazon.com Inc , Alphabet Inc, Facebook Inc and Apple Inc, have taken actions against Trump and his network of supporters, as concerns mounted over the risk of continued violence.

Twitter’s stock tumbled 6.4 percent on Monday after the micro-blogging site permanently suspended Trump’s account last Friday.

Investors also kept an eye on the continued spread of the coronavirus globally as cases surpassed 90 million on Monday, according to a Reuters tally.

“The weakness was led by tech and I think the banning of Trump’s account by Twitter and Amazon stepping up against Parler all brought a renewed focus on increased regulation and reining in on tech,” said Thomas Hayes, chairman of Great Hill Capital in New York.

Japan’s Nikkei slipped 0.48 percent, South Korea’s KOSPI fell 0.91 percent and Hong Kong’s Hang Seng index futures lost 0.54 percent.

Defying the broader selloff, Australia’s S&P/ASX 200 rose 0.24 percent.

On Wall Street, the Dow Jones Industrial Average fell 0.29 percent, the S&P 500 lost 0.66 percent and the Nasdaq Composite dropped 1.25 percent.

Investors are expecting guidance on the extent to which executives see a rebound in 2021 earnings and the economy from results and conference calls from JP Morgan, Citi and Wells Fargo Friday.

Meanwhile, longer-term Treasury yields were at their highest since March before new long-dated supply coming this week and on speculation of more U.S. fiscal stimulus as Democrats will have control of Congress and the White House.

“People are optimistic to see the yield curve steepening and it could help spreads and net interest margins for banks,” Hayes said.

Benchmark 10-year notes last fell 11/32 in price to yield 1.1443 percent, from 1.107 percent late on Friday.

The spread between the two-year and 10-year Treasury yields brushed against 100 basis points to hit its steepest since July 2017.

The climb in yields in turn offered some support to the dollar, which rose to its highest in over two weeks against a basket of currencies.

The U.S. dollar index rose 0.256 percent, with the euro down 0.54 percent to $1.2152. The Japanese yen weakened 0.24 percent versus the greenback at 104.20 per dollar, while Sterling was last trading at $1.3516, down 0.35 percent on the day.

Crude oil prices fell, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns across the globe, as well as the stronger dollar.

U.S. crude recently fell 0.1 percent to $52.19 per barrel and Brent was at $55.61, down 0.68 percent on the day.

Safe-have spot gold dropped 0.2 percent to $1,844.27 an ounce. Silver fell 1.70 percent to $24.94.

-reuters-

Asian markets mostly down as virus fears grow

HONG KONG - Asian markets fell Monday following a steep drop on Wall Street as the jubilation from last week's enormous US stimulus package faded and investors returned their attention to the soaring infection and death rate of the coronavirus.

Donald Trump finally signed off the more than $2 trillion pump-priming measures on Friday, but equities -- which enjoyed a rally for much of the week -- ended on a negative note as dealers took profits.

While the disease ravages populations and the global economy grinds to a halt with 40 percent of the planet in lockdown, experts are struggling to get a grip on the scale of the crisis that is forecast to cause a worldwide recession.

And analysts say there are likely more dark days ahead, with Trump abandoning his timetable for life returning to normal in the United States and extending emergency restrictions for another month.

The president said he expected the country to "be well on our way to recovery" by June 1 -- dropping his previous target of mid-April.

Meanwhile, senior US scientist Anthony Fauci issued a tentative prediction that COVID-19 could claim up to 200,000 lives in the US.

Governments and central banks have acted to shore up the global economy, pledging around $5 trillion in stimulus support, with China on Monday joining the party by lowering bank borrowing costs and pumping billions of dollars into financial markets, while Singapore also eased rates.

AxiCorp's Stephen Innes said markets looked like they were "nearing policy fatigue where it becomes less effective, and as the surprise element diminishes, no one cares".

"So, while policy responses in the US and Europe have been spectacular... the coronavirus keeps spreading globally, deepening fears of the economic and financial impact across countries. More market turmoil likely lies ahead."

He also pointed out that with the corporate reporting season approaching "now we are about to enter a vortex of bad earnings, bad economic data, and bankruptcies."

THE BIG UNKNOWN

The downbeat mood weighed on Asian equities, though most pared their morning losses. Tokyo and Hong Kong ended more than one percent down, while Shanghai was off 0.9 percent. Mumbai and Manila lost more than two percent, while Taipei slipped 0.7 percent.

Seoul was flat, while there were also losses in Bangkok and Jakarta.

Singapore slid more than four percent as investors brushed off the city-state's monetary policy easing measures that came days after data showed it was heading for a deep recession.

However, Sydney soared seven percent in its best one-day performance ever following a more than five percent slide Friday. Traders also were buoyed by data pointing to a slowdown in new infections in Australia as well as an $80 billion economic government support package that was unveiled after markets closed but was widely expected.

In early trade, London and Paris each lost around 2.8 percent while Frankfurt was down 1.6 percent.

"The big question for markets is whether the huge stimulus introduced so far across the globe will be enough to help the global economy withstand the economic shock from the COVID-19 containment measures," said National Australia Bank's Rodrigo Catril.

"To answer this question one needs to know the magnitude of the containment measures and for how long they will be implemented. This is the big unknown and it suggests markets are likely to remain volatile until this uncertainty is resolved."

The return to a risk-averse environment on trading floors also sent the dollar back up against higher-yielding currencies with the Mexican peso, Indonesian rupiah and South Korean won losing more than one percent apiece.

The South African rand plunged more than two percent to a record low after Moody's slashed its credit rating on the country to below investment grade.

Crude plunged with the market remaining in turmoil, with the Saudi-Russian price war adding to the impact of battered demand caused by the virus. And there are warnings the commodity, already at near two-decade lows, could sink even further as production remains heightened and storage tanks around the world approach full capacity.

"When the storage capacity is filled, we should probably expect a response from Saudi Arabia, Russia, and other essential oil producers," Innes added, though he warned "the longer their response takes, the higher the risk of another steep decline in oil prices".

source: news.abs-cbn.com

Asian shares edge up; investors anxious over earnings, Brexit

SYDNEY -- Asian shares pulled ahead on Thursday with corporate earnings buffeting trading as investors remained anxious about the business impact of the Sino-US trade war while Brexit uncertainties kept overall sentiment in check.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent with Japan's Nikkei up 0.5 percent at a one-year high. Australian shares climbed 0.5 percent while South Korea's KOSPI inched 0.4 percent higher.

South Korea earlier reported third quarter growth slightly below expectations, though exports showed signs of recovery, while a private survey showed Japanese factory activity shrank at the fastest pace in over three years in October, hurt by slowing global demand and trade frictions.

On Wall Street overnight, the Dow and the Nasdaq added 0.2 percent each while the S&P 500 gained 0.3 percent.

Telsa shares jumped 21 percent in after-hours trading following a surprise third quarter profit.

Microsoft also posted forecast-beating profit and revenue numbers after the closing bell though the outlook was darkened by slower-than-expected take-up of its Azure cloud services.

Earlier, shares of US industrial bellwethers Boeing Co and Caterpillar Inc ended about 1 percent higher each despite big earnings misses.

RBC Capital Markets' chief economist Tom Porcelli pointed to consistently alarming headlines since the first quarter of 2018 suggesting poor Caterpillar earnings meant a recession was round the corner, though that has yet to transpire.

"We have been down this road before with CAT," Porcelli said in a note titled 'Still Waiting For Recession.'

"If you keep saying a recession is here, it is a mathematical certainty that at some point you will be right," he wrote. "Maybe try again after CAT's next quarterly earnings report."

So far, results from about 125 of the S&P500 companies are out with analysts expecting earnings to have declined 2.9 percent year-over-year, according to IBES data from Refinitiv.

Risk appetite was also aided by a ceasefire in northern Syria which resulted in the lifting of US sanctions against Turkey.

Later in the day, European and US manufacturing numbers are due while the European Central Bank meets, with no change to policy expected at President Mario Draghi's last meeting. Draghi will be replaced by Christine Lagarde.

Activity in the currency market was rather muted.

Sterling paused at $1.2918 after rising 0.3 percent on Wednesday with Brexit developments in focus.

Britain appears closer than ever to resolving its 3-1/2-year Brexit conundrum but there are still hurdles to clear.

EU member states on Wednesday delayed a decision on whether to grant Britain a three-month Brexit extension. Prime Minister Boris Johnson said if the deadline is deferred to the end of January, he would call an election.

"The Brexit battle looks like it will drag on," economists at ANZ wrote in a note.

"The UK government will not meet its current timetable of leaving the EU on 31 October, and an extension appears likely. In the meantime, Brexit uncertainty will keep weighing on UK business investment and activity."

The single currency was flat at $1.1135. The Japanese yen was a shade higher at 108.62 per dollar while the Australian dollar was barely changed at $0.6852.

That left the dollar index mostly unchanged at 97.461 against a basket of six major currencies.

In commodity markets, U.S. crude eased 30 cents to $55.67 while Brent slipped 28 cents to $60.89.

Gold was treading water at $1,492.5 an ounce.

source: news.abs-cbn.com

Asian stocks make cautious gains ahead of key Brexit summit

TOKYO -- Asian stocks and Wall Street futures inched higher on Tuesday as some investors held out hope that Britain still had a chance to avoid a messy exit from the European Union at key negotiations this week.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.01 percent. Australian shares were up 0.12 percent, while Japan's Nikkei stock index rose 1.38 percent.

Capping the broader gains, however, was a perceived lack of progress coming out of US-China trade negotiations. Reports of a "Phase 1" trade deal between the United States and China last week had earlier cheered markets but the dearth of details around the agreement has since curbed this enthusiasm with oil prices extending declines and the safe-haven yen holding gains versus dollar.

The focus has now shifted to Europe where officials from Britain and the EU will meet at a make-or-break summit on Thursday and Friday that will determine whether or not Britain is headed for a so-called no-deal Brexit.

"Given the parliamentary intervention, I would say the chance of a no-deal Brexit is around 10 percent to 20 percent," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.

"If there is a deal, sterling would rally and risk assets would rally, but the reaction could be limited to a day."

US stock futures rose 0.19 percent on Tuesday in Asia after the S&P 500 ended 0.14 percent lower.

Traders, however, cautioned that sentiment remains fragile because the outcome of Brexit talks is far from certain and the US-China trade war remains a risk to global growth.

British Prime Minister Boris Johnson wants to strike an exit deal at an EU summit on Thursday and Friday to allow an orderly departure on Oct. 31.

The main sticking point remains the border between EU member Ireland and Northern Ireland, which belongs to the UK. Some EU politicians have expressed guarded optimism that a deal can be reached.

However, diplomats from the EU have indicated they are pessimistic about Johnson's proposed solution for the border and want more concessions.

In the currency market, sterling held steady at $1.2608, below a three-month high of $1.2708.

The yen, often considered a safe haven in times of economic uncertainty, edged higher to 108.40 per dollar.

A perceived lack of progress in resolving a prolonged trade row between the United States and China also weighed on investor confidence.

The United States agreed to delay an Oct. 15 increase in tariffs on Chinese goods while Beijing said it would buy as much as $50 billion of US agricultural products after tense negotiations last week.

However, the United States has left in place tariffs on hundreds of billions of dollars of Chinese goods.

Trade experts and China market analysts say chances are high that Washington and Beijing will fail to agree on any specifics - as happened in May - in time for a mid-November meeting between Trump and Chinese President Xi Jinping.

US crude dipped 0.22 percent to $53.47 following a 2 percent decline overnight due to worries that global energy demand will remain weak.

Brent crude also fell 0.29 percent to $59.18 per barrel.

By early last week, hedge funds had become the most bearish towards petroleum prices since the start of the year, according to an analysis of position records published by the U.S. Commodity Futures Trading Commission and ICE Futures Europe. 

source: news.abs-cbn.com

Asian shares buoyed by US jobs, trade talks in focus

TOKYO -- Asian shares edged higher on Monday after data showed the US unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world's largest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.25 percent. Japan's Nikkei stock index rose 0.29 percent, while Australian shares were up 0.48 percent.

US Treasury yields inched higher as Friday's data on the US jobs market suggests the Federal Reserve may not need to cut interest rates further.

Sentiment toward the US economy deteriorated sharply last week after disappointing data on manufacturing and services suggested the trade war was taking a toll, and more rate cuts would be needed to avert a potential recession in the world's biggest economy.

The modest increase in US jobs has eased some of these concerns, but traders warn that downside risks loom large on the horizon. The US unemployment rate fell to 3.5 percent in September to reach the lowest since December 1969. Non-farm payrolls also grew in September, but slightly less than expected.

The focus will shift to the next round of US-China trade negotiations expected in Washington on Oct. 10-11 to see if the two sides can end a bruising year-long trade war that has hurt global growth and raised the risk of recession.

"Moderate job growth and subdued inflation in the United States is a positive for stocks," said Shusuke Yamada, head of FX and Japan equity strategy at Merrill Lynch Japan Securities in Tokyo. "However, the dollar is a little soft heading into US-China trade talks. I see some scope for yen gains, but it is not likely to be a big move higher."

US stock futures, fell 0.35 percent in Asia on Monday after the S&P 500 ended 1.4 percent higher on Friday.

In currency markets, the yen gained slightly and the yuan slipped after Bloomberg reported that Chinese officials are signalling they are increasingly reluctant to agree to a broad trade deal pursued by US President Donald Trump.

The yuan weakened about 0.20 percent in offshore trade to 7.1285 yuan per dollar. There is no onshore trading as Monday is the last day of China's holiday break.

The United States and China have slapped tariffs on each other's goods as part of a long-running dispute over Beijing's trading practices, which Washington says are unfair.

Central banks around the world have been easing policy to offset the negative impact from the trade war.

The Fed has already lowered interest rates twice this year, but a strong jobs market suggests further rate cuts may not be necessary.

The yield on benchmark 10-year Treasury notes rose to 1.5187 percent compared with its US close of 1.5140 percent on Friday.

Worries about political instability in Hong Kong could hurt market sentiment after China's army took the unusual step of issuing warnings to anti-government protesters in Hong Kong over the weekend.

Four months of often violent protests against Chinese rule has pushed the former British colony to the brink of recession and posed a serious challenge to Beijing's control of the city.

Spot gold, an asset that is often bought during times of uncertainty as a safe-haven, rose 0.26 percent to $1,508.19 per ounce.

The yen, also considered a safe-haven asset edged slightly higher to 106.78 versus the US dollar and gained to 72.20 per Australian dollar.

US crude dipped 0.34 percent to $52.63 a barrel as worries about oversupply regularly weigh on oil futures prices.

source: news.abs-cbn.com

Asia stocks paralyzed, bonds electrified by recession risk

SYDNEY -- Asian shares braced for more volatility on Thursday as eye-catching easings by central banks stoked fears of global recession, driving US yields to near-record lows and lifting gold past $1,500 for the first time since 2013.

Spot gold was last at $1,503.56 per ounce, having been as far as $1,510. The precious metal has surged 16 percent since May as the worsening Sino-US trade dispute sparked a rush to safe havens.

"Financial markets are raising risks of recession," said JPMorgan economist Joseph Lupton.

"Equities continue to slide and volatility has spiked, but the alarm bell is loudest in rates markets, where the yield curve inverted the most since just before the start of the financial crisis."

Early Thursday, Asian share markets were wobbly, as investors tried to find their footing after enduring a string of heavy losses. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.03 percent, having shed 8 percent in less than two weeks.

Japan's Nikkei inched up 0.1 percent, and away from seven-month lows. E-Mini futures for the S&P 500 lost 0.13 percent.

There was much relief that Wall Street had managed a late come back overnight, so that the Dow ended with a loss of just 0.09 percent having been down 500 points at one stage. The S&P 500 tacked on 0.08 percent and the Nasdaq 0.38 percent.

Stocks had initially been pressured by the flight to bonds. Yields on US 30-year bonds dived as deep as 2.123 percent, not far from an all-time low of 2.089 percent set in 2016.

Ten-year yields dropped further below three-month rates, an inversion that has reliably predicted recessions in the past.

The latest spasm began when central banks in New Zealand, India and Thailand surprised markets with aggressive easings, while the Philippines is expected to cut later Thursday.

FED TO THE RESCUE?

"The decision by these APAC central banks to "go hard and early" has provided further fuel to concerns of a global recession," said Rodrigo Catril, a senior FX strategist at National Australia Bank. "This also means that the Fed will need to come to the rescue."

Chicago Fed President Charles Evans signaled on Wednesday he was open to lowering rates to bolster inflation and to counter risks to economic growth from trade tensions.

Futures moved to price in a 100 percent probability of an Fed easing in September and a near 30 percent chance of a half-point cut. Some 75 basis points of easing is implied by January, with rates ultimately reaching 1 percent.

Dire data on German industrial output stoked concerns Europe might already be in recession and pushed bund yields deeper into negative territory.

All of which fueled speculation that the major central banks would also have to take drastic action, if only to prevent an export-crimping rise in their currencies.

The Bank of Japan would be under particular pressure as its yen has gained sharply from the flood to safe havens, leaving it at 106.10 per dollar from 109.30 just a week ago.

The euro has also bounced to $1.1217, from a two-year trough of $1.1025, while the US dollar index has backtracked to 97.595, from a recent peak of 98.932.

New Zealand's dollar was still picking up the pieces after sliding as much as 2.6 percent on Wednesday when the country's central bank slashed rates by a steep 50 basis points and flagged the risk of negative rates.

The kiwi was huddled at $0.6447 having shed 1.3 percent for the week so far.

Oil prices were attempting a recovery as talk that Saudi Arabia was mulling options to halt crude's descent helped offset a build in stockpiles and fears of slowing demand.

Brent crude futures climbed $1.20 to $57.43, though that followed steep losses on Wednesday, while US crude rose $1.23 to $52.32 a barrel.

source: news.abs-cbn.com

Asia stocks dip on likely smaller Fed rate cut, oil gains

TOKYO -- Asia stocks eased on Monday as investors reduced expectations of an aggressive interest rate cut by the Federal Reserve, while heightened Middle East tensions following an Iranian seizure of a British tanker lifted crude oil prices.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent.

South Korea's KOSPI shed 0.3 percent, Australian stocks lost 0.2 percent and Japan's Nikkei fell 0.5 percent.

Global equity markets had risen briefly towards the end of last week after dovish comments by New York Fed President John Williams boosted the prospect of the central bank lowering rates by 50 basis points at its July 30-31 meeting.

But the stock markets gave back those gains on Friday, with Wall Street shares ending in negative territory, after the New York Fed walked back Williams' comments by saying his speech was not about potential policy action at the upcoming Fed meeting.

Expectations for a 50 bp cut were scaled back further after the Wall Street Journal reported the Fed was likely to cut rates by 25 bps when it meets later this month, and may make further cuts in the future given global growth and trade uncertainties.

"The possibility of a 50 bp cut has almost dissipated following the WSJ report and the New York Fed's attempt to tone down earlier comments by Williams," wrote Kenji Yamamoto, economist at Daiwa Securities.

The dollar and U.S. Treasury yields rose on the greater likelihood of a shallower 25 bp rate cut.

The dollar index against a basket of 6 major currencies was steady at 97.152 after rising 0.4 percent on Friday.

The benchmark 10-year Treasury yield stretched Friday's rise and climbed to 2.058 percent.

The greenback was nearly flat at 107.830 yen after adding 0.4 percent on Friday thanks to the rise in U.S yields.

The euro was little changed at $1.1218 after shedding 0.5 percent on Friday.

In commodities, Brent crude futures were up 1.26 percent at $63.26 per barrel following a gain of about 0.9 percent on Friday.

Crude was buoyant after Iran's Revolutionary Guards on Friday captured a British-flagged oil tanker in the Gulf after Britain seized an Iranian vessel earlier this month, further raising tensions along a vital international oil shipping route.

US crude futures advanced 0.83 percent to $56.09 per barrel.

Gold slipped from a 6-year high as the dollar firmed and as expectations for a deep rate cut by the Fed were dialed back.

Spot gold traded at $1,425.82 an ounce after going as high as $1,452.60 on Friday, its strongest since May 2013.

source: news.abs-cbn.com

Asia stocks firm as Fed props up rate cut expectations

TOKYO -- Asian stocks advanced on Friday after a top Federal Reserve official cemented expectations of a US interest rate cut later this month, fueling appetite for riskier assets and keeping a cap on the dollar.

New York Fed President John Williams said on Thursday that policymakers could not wait for economic disaster to hit before adding stimulus, in a speech read as a strong argument in favor of quick monetary action.

In oil markets, crude surged after the United States said its navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, raising concerns about supply disruptions out of the region.

The comments by Williams made it a virtual certainty the Fed would cut interest rates by 25 basis points at its July 30-31 policy meeting and also fueled expectations of an even deeper 50 basis point reduction.

Financial markets quickly reacted, with Fed fund rate futures at one point pricing in almost 70 percent chance of a 50 bp cut at the month-end meeting. The odds eased to around 40 percent after the New York Fed clarified that Williams' speech was not about immediate policy direction.

Wall Street shares shook off a sluggish start and moved higher overnight thanks to Williams' dovish comments.

The Shanghai Composite Index and Hong Kong's Hang Seng were both up 1 percent.

Australian stocks added 0.7 percent, South Korea's KOSPI rose 1 percent and Japan's Nikkei advanced 1.65 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1 percent, bouncing back from the previous day's losses.

Over the week, the index has climbed a modest 1 percent, as riskier assets were partly capped by US President Donald Trump's reiteration of his threat to impose further duties on Chinese imports. The two sides resumed talks recently to seek an end to a year-long trade war that has rattled financial markets and slowed global growth.

"Dovish Fed policy expectations do provide support for the equity markets, which are set to rebound after suffering losses the previous day," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. "But factors such as US-China trade issues and tensions over Iran are likely to limit the markets' gains."

The dollar index against a basket of six major currencies stood little changed at 96.787 after losing roughly 0.5 percent overnight to a two-week low of 96.671 in the wake of comments from the Fed's Williams.

The greenback was up 0.2 percent at 107.520 yen, crawling away from a three-week trough of 107.210 on Thursday after the New York Fed's clarification of Williams' comments. The currency had previously lost 0.6 percent against its Japanese peer.

The euro was 0.1 percent lower at $1.1267 after climbing 0.45 percent the previous day.

US Treasury yields were lower across the board in light of Williams' dovish views. The 2-year yield was at 1.7826 percent after touching a two-week low of 1.7520 percent. The 10-year yield declined to a 10-day trough of 2.023 percent and was last at 2.0363 percent.

In commodities, US crude oil futures reversed a large part of the previous day's deep losses, rising 1.8 percent to $56.34 per barrel.

Crude rallied after the reports the US Navy had destroyed the Iranian drone, clawing back earlier losses during the week. Oil prices had fallen on Thursday amid expectations that crude output would rise in the Gulf of Mexico following last week's hurricane in the region.

Spot gold extended the previous day's rally made on the prospects of lower US interest rates and brushed a six-year high of $1,452.60 an ounce, before pulling back a touch to $1,443.36. Middle East tensions also helped boost safe-haven gold.

source: news.abs-cbn.com

Asia stocks rise, dollar sags as Fed chair sets stage for rate cut

TOKYO -- Asian stocks rose and the dollar sagged on Thursday after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month.

In an appearance before his congressional overseers on Wednesday, Powell confirmed that the US economy was still under threat from disappointing factory activity, tame inflation and a simmering trade war.

Powell said the central bank stands ready to "act as appropriate".

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent, while Japan's Nikkei added 0.15 percent.

South Korea's KOSPI climbed 0.7 percent. Australian stocks were steady.

US stocks ended higher on Wednesday and the S&P 500 briefly crossed the 3,000-point mark for the first time following Powell's remarks.

"The markets had hoped for Powell to express dovish views and they got what they wanted," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"The focus going forward is US data, such as tonight's CPI, and whether the economy warrants a 50 basis point rate cut this month."

A strong June US jobs report released earlier this month had curbed market expectations that the Fed could lower rates by 50 basis points (bps), and the markets had viewed a 25 bps cut as a more likely option.

But the Fed chair's cautious stance on the world's largest economy helped revive views of a chance of heftier easing at the next Fed policy meeting on July 30-31.

The chance of a 50 bps cut rose to 27.6 percent from 3.3 percent on Tuesday, according to CME Group's FedWatch tool.

The dollar index against a basket of 6 major currencies stood at 97.055 after falling 0.4 percent overnight, when it pulled back from a three-week peak of 97.588 in the wake of Powell's comments.

The greenback was down 0.15 percent at 108.320 yen, forced off a 6-week high of 108.990 scaled the previous day.

The euro nudged up 0.1 percent to $1.1259 after gaining 0.4 percent on Wednesday.

The Australian dollar was steady at $0.6961 following an overnight rise of 0.5 percent against the broadly weaker dollar. The surge helped the Aussie pull away from a 2-1/2-week trough of $0.6910.

The 10-year US Treasury yield was at 2.052 percent after dropping on Wednesday from a three-week high of 2.113 percent following the Fed chair's congressional testimony.

In commodities, US crude oil futures extended the previous day's large gains to touch $60.63 per barrel, their highest since May 23.

The contract had surged 4.5 percent on Wednesday after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.

source: news.abs-cbn.com

Asian markets cautious as everything rides on dovish Powell

SYDNEY -- Asian shares inched ahead on Wednesday while higher Treasury yields lifted the dollar as markets wondered if the world's most powerful central banker would confirm or confound expectations for US policy easing this month.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent, after 3 sessions of losses.

South Korea climbed 0.6 percent, but Japan's Nikkei lagged with a loss of 0.15 percent. E-Mini futures for the S&P 500 added a slim 0.08 percent.

Federal Reserve Chair Jerome Powell testifies before the US Congress on Wednesday and Thursday and investors have a lot riding on him sounding suitably dovish.

Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting, but have abandoned wagers on a half-point move. They had implied a 25 percent probability of an aggressive cut before Friday's upbeat jobs report.

"We still think the odds favor of a 25 bps "insurance" cut," said Kevin Cummins, a senior US economist at NatWest Markets.

"The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signaled the likelihood of cuts."

Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the US economy run "a little hotter."

Lurking in the background, US and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said.

Wall Street had been dully circumspect, with the Dow ending Tuesday down 0.08 percent, while the S&P 500 added 0.12 percent and the Nasdaq 0.54 percent.

MORE YIELD

The cooling in US rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.909 percent from the recent trough of 1.696 percent.

That in turn has helped the dollar bounce on a basket of currencies to 97.537 from a June low of 95.843.

The dollar also firmed to 108.96 yen, while the euro faded to $1.1204 having been as high as $1.1412 just a couple of weeks ago.

The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy.

The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policy makers tried to slow the currency's recent rally.

The dollar's gains took the shine off gold, which eased 0.3 percent to $1,393.14 per ounce.

Oil prices were supported by Middle East tensions and OPEC supply cuts.

Brent crude futures rose 67 cents to $64.83, while US crude gained 83 cents to $58.66 a barrel.

source: news.abs-cbn.com

Asia stocks capped ahead of Fed, oil on defensive

TOKYO -- Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent.

Australian stocks added 0.1 percent while Japan's Nikkei dipped 0.05 percent.

The Fed, facing fresh demands by US President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

Fresh hopes for looser US monetary policy have been a tonic for risk assets markets, which were buffeted last month by an escalation in the trade conflict between Washington and Beijing. The S&P 500 has gained 5 percent this month after sliding in May on trade war fears.

Focus is now on how close the Fed could be to cutting interest rates amid the raging US-China trade war, signs of the economy losing steam and pressure by President Trump to ease policy.

"The FOMC (Federal Open Market Committee) meeting is the week's biggest event so there will be a degree of caution prevailing in the markets," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"Expectations for a rate cut in July have increased significantly, so the markets could experience disappointment if the Fed does not send strong signals of impending easing."

US Treasury yields dipped on Monday after the New York Fed's "Empire" gauge of business growth in the state showed a fall this month to its weakest in more than 2-1/2-years, fanning rate cut expectations.

The dollar index against a basket of six major currencies stood little changed at 97.507 after pulling back from a two-week high on the decline in Treasury yields.

The pound traded at $1.2542 after retreating overnight to a six-month low of $1.2532 on Monday on concerns that arch-Brexiteer Boris Johnson will replace Theresa May as prime minister.

The euro was a shade higher at $1.1224 after spending the previous day confined to a narrow range.

US crude oil futures shed 0.08 percent to $51.89 per barrel after retreating 1.1 percent the previous day.

Oil prices had slipped on Monday as weak Chinese economic data released at the end of last week led to fears of lower global demand for the commodity.

Concerns over weakening demand overshadowed tensions in the Middle East, which remained high following last week's attacks on two oil tankers in the Gulf of Oman.

source: news.abs-cbn.com

Asian shares edge up, trade, geopolitical tensions cap gains

TOKYO -- Asian stocks inched higher on Monday, with a rebound in the Hong Kong market helping the mood, as investors remained cautious ahead of a closely-watched Federal Reserve meeting.

But the simmering trade dispute between the United States and China as well as political tensions in the Middle East kept risk-appetite in check.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, after opening slightly weaker. Japan's Nikkei average ticked up by a similar amount.

Asian markets got a quick boost after Hong Kong's Hang Seng Index jumped as much as 1.4 percent. At the weekend, the territory's leader Carrie Lam climbed down on a bill that would have allowed extradition to China.

The Hang Seng fell for three sessions in a row through Friday, after the extradition bill triggered mass protests and some of the worst unrest seen in the territory since Britain handed it back to Chinese rule in 1997.

"Last week the issue looked as if it would become another thorny point between the United States and China. As the bill is now being postponed indefinitely, things will likely calm down, which is good for markets," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.

Mainland Chinese shares also firmed, with the benchmark Shanghai Composite up 0.2 percent and the blue-chip CSI 300 rising 0.2 percent.

US Secretary of State Mike Pompeo told Fox News on Sunday that President Donald Trump would raise the issue of Hong Kong's human rights with China's President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month.

Wall Street stocks ended lower on Friday as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to US-China trade worries.

Investors are waiting for more clues from the Fed after policymakers raised expectations for a rate cut in recent weeks.

Strong US retail sales data on Friday rolled back expectations of a Fed rate cut at this week's meeting to 21.7 percent, from 28.3 percent on Thursday, according to CME Group's FedWatch tool. But bets of an easing at the July meeting remain high at 85 percent.

"The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is center stage," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

A private gauge on eurozone's manufacturing sector as well as US-China trade frictions will also be watched closely, Chandler said.

Financial markets were sideswiped by a sudden escalation in Sino-US trade tensions in early May, with growing anxiety among investors that a protracted standoff could tip the global economy into recession.

Geopolitical tensions in the Middle East added another layer of uncertainty after the United States blamed Iran for attacks on two oil tankers in the Gulf of Oman last week.

Hopes that global central banks will keep the money spigots open have helped to temper some of the fears, and all eyes are on the Fed's two-day meeting starting on Tuesday.

The Bank of Japan also meets this week and is widely expected to reinforce its commitment to retain a massive stimulus program for some time to come.

The retail sales report also sent short-dated US Treasury yields higher, flattening the yield curve.

Benchmark 10-year notes was last at 2.091 percent, while two-year bond yield edged up, shrinking the spread between two- and 10-year yields to 23.6 basis points compared to more than 30 earlier this month.

A Reuters poll showed a growing number of economists expect the Fed policymakers to cut interest rates this year, although the majority still see it holding steady.

In currency markets, the dollar index against a basket of six major currencies climbed to 97.583 on Friday, its highest level in almost two weeks, after the US retail sales data eased fears that the world's largest economy is slowing sharply.

The index last stood at 97.488, while the euro fetched $1.1222, near the lower end of its weekly trading range.

Oil prices rose on Monday after US Secretary of State Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week.

Brent futures rose 0.4 percent to $62.24 a barrel, while US West Texas Intermediate (WTI) crude futures gained 0.3 percent to $52.66.

Spot gold was little changed at $1,341.48 an ounce after hitting a 14-month peak on Friday.

Bitcoin jumped overnight to $9,391.85, its highest level in 13 months. It was last quoted at $9,104.64.

source: news.abs-cbn.com

US stock futures, Asian shares gain as Mexico tariffs averted

TOKYO -- US stock futures and Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, while weak US jobs data raised hopes for US interest rate cuts.

The Mexican peso jumped 1.75 percent in early Monday trade to 19.2579 on the dollar on news of the removal of the tariff threat.

But relief was widespread, as global investors had feared that opening up another trade conflict, while still battling with China, could tip the United States and other economies into recession.

S&P500 mini futures rose 0.4 percent and the 10-year U.S. Treasuries yield jumped back 3 basis points to 2.115 percent , after hitting a 21-month low of 2.053 percent on Friday on soft US jobs data.

Japan's Nikkei gained 1.2 percent and South Korea's Kospi rose 0.55 percent while Australian markets were closed for a holiday, with MSCI's index of Asia-Pacific shares outside Japan almost flat.

The improved risk sentiment also helped lift the dollar against the yen 0.15 percent to 108.38 yen.

"The deal with Mexico is boosting sentiment while expectations of US rate cuts will be also supporting share prices," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"Still, with limited progress seen so far in US-China trade talks, the most important issue for markets, stock prices will be able to rise only so much," he added.

Expectations the Fed will cut rates kept the dollar on the defensive after a weak jobs report from the US Labor Department.

Nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll.

Wage growth, closely watched for its impact on inflation, slowed to 3.1 percent from a year earlier, the slowest annual increase since September. Just three months earlier, wages had been rising at their fastest rate in a decade.

Although Fed funds rate futures prices dropped on Monday after the Mexico deal, they are still pricing in more than two 25-basis point rate cuts by the end of this year, with one almost fully priced in by July.

"I would expect optimism to rule markets until the next Fed's meeting," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

The Federal's next policy meeting is set for next week, on June 18-19.

The euro was little changed at $1.1329 near a 2-1/2-month high of $1.1348 touched on Friday. The common currency held firm near five-month highs against sterling at 88.965 pence.

Gold slipped 0.2 percent but stood not far from Friday's 14-month high of $1,348.1 per ounce, near a major resistance around $1,350.

The Chinese yuan was soft. The offshore yuan traded at 6.9385 yuan per dollar, having hit a seven-month low of 6.9616 on Friday.

China's trade data due later in the day will be keenly watched for the impact of the Sino-US trade war.

Group of 20 finance leaders on Sunday said that trade and geopolitical tensions have "intensified", raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening US-China trade conflict.

Oil prices extended gains after Saudi Arabia said on Friday OPEC and non-member Russia were close to agreeing to extend an output production cut beyond June and as Wall Street rallied.

Brent futures rose 0.8 percent to $63.79 per barrel while U.S. crude futures rose 0.8 percent to $54.44.

source: news.abs-cbn.com

Asian shares edge up but growth worries cap gains

SHANGHAI -- Shares in Asia inched higher and safe-haven assets gave up some overnight gains on Tuesday, as investors paused for breath after a volatile Wall Street session, but deeper concerns about growth have capped broader improvements in risk sentiment.

Investor focus has shifted to monetary policy this week with Australia's central bank all but certain to cut interest rates to a fresh low at its meeting on Tuesday and India also tipped to ease on Thursday.

Most equity markets in the region shook off Wall Street's overnight weakness, which took the Nasdaq into correction territory. In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.17 percent.

"Sentiment remains downbeat and the weakness across the board in purchasing managers indices, published Monday, helped to feed the anxiety surrounding the outlook for global growth," analysts at ANZ said in a morning note.

US manufacturing growth slowed further in May to its weakest pace in more than two-and-a-half years, defying expectations for a modest rebound.

Australian shares were up 0.24 percent ahead of the expected interest rate cut by the Reserve Bank of Australia, as the bank hopes to revive growth.

But Japan's Nikkei gave up early gains to turn down 0.29 percent.

On Monday, the Nasdaq fell 1.61 percent to 7,333.02, taking it more than 10 percent lower than its May 3 closing record, as fears that US antitrust regulators could target Alphabet, Facebook and Amazon.com dragged down shares in those companies.

The Dow Jones Industrial Average eked out a 0.02 percent gain to 24,819.78 and the S&P 500 lost 0.28 percent to 2,744.45.

The cautious gains in equities on Tuesday were accompanied by a rise in the yield on the safe-haven benchmark 10-year US Treasury, which had dipped to 2.0607 percent, its lowest level since September 2017, on Monday. On Tuesday morning in Asia, 10-year notes yielded 2.0934 percent, up from a US close of 2.081 percent on Monday.

The two-year yield turned higher, rising to 1.8597 percent Tuesday compared with a US close of 1.84 percent. The yield had fallen earlier, reflecting raised expectations of a more accommodative Federal Reserve. St. Louis Fed president James Bullard on Monday said that a US interest rate cut "may be warranted soon" given risks to global growth posed by trade tensions and weak US inflation.

In further signs that investors' nerves remain unsettled, gold gained 0.12 percent to $1,326.41 per ounce, just off a three-month high, and Japan's yen strengthened, with the dollar dropping 0.18 percent against the Asian safe-haven to 107.87.

"Risk aversion has also been seen with the yen carry trade unwinding as the markets comprehend that the US technology containment strategy towards China is unlikely to reverse," analysts at Jefferies said in a note.

"In the short term, positioning has become so bearish that 'a ceasefire' could spark a risk rally."

The euro was 0.08 percent stronger at $1.1249, while the dollar index, which tracks the greenback against a basket of six major rivals, was up 0.05 percent at 97.186.

Crude prices rebounded after dropping on Monday on mounting trade worries.

US crude gained 0.3 percent to $53.41 a barrel and Brent crude rose 0.18 percent to $61.39 per barrel.

source: news.abs-cbn.com

Asia stocks sag, bonds rally as trade war fears persist

TOKYO -- Asian stocks tracked Wall Street losses on Thursday as rhetoric from Beijing and Washington over trade matters kept alive investor concerns about the tariff war's impact on global economic growth.

The risk aversion propped up global safe-haven assets such as government bonds, with yields on German benchmark debt approaching record lows.

The dispute between the world's two largest economies showed few signs of abating, with Chinese newspapers reporting that Beijing could use rare earths to strike back at Washington after US President Donald Trump remarked he was "not yet ready" to make a deal with China over trade.

Japan's Nikkei was down 0.5 percent and Australian stocks shed 0.66 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan stood little changed after slipping to a four-month low the previous day.

"The equity markets are in the midst of pricing in a long-term trade war, with participants shaping their portfolios in anticipation of a protracted conflict," said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

"The upcoming G20 summit could provide the markets with relief, as the United States and China could use the event to begin negotiating again over trade."

The G20 meeting is set for June 28-29 in Japan.

Amid the flight-to-safety Germany's 10-year bond yield fell to a three-year trough of minus 0.179 percent overnight. A drop below minus 0.200 percent set in 2016 would take the yield to a record low.

Spanish and Portuguese 10-year yields fell to record lows as deeply negative German Bund yields have encouraged investors to look elsewhere for returns.

Elsewhere, the 10-year US Treasury yield stood at 2.267 percent after falling to a 20-month low of 2.210 percent on Wednesday.

Lower Treasury yields not withstanding, the dollar index against a basket of six major currencies was steady at 98.139 following two straight days of gains, with the greenback serving as a safe haven.

The euro was a shade higher at $1.1141, pulling back slightly following three successive days of losses.

The dollar was little changed at 109.615 yen after bouncing back from a two-week low of 109.150 brushed on Wednesday.

Oil prices rose modestly following volatile trading on Wednesday, when they fell to near three-month lows at one point as trade war fears also gripped the commodity markets.

U.S. crude futures were up 0.43 percent at $59.06 per barrel after brushing $56.88 the previous day, their lowest since March 12.

Trade worries have weighed on oil but supply constraints linked to the Organization of the Petroleum Exporting Countries' output cuts and political tensions in the Middle East have offered some support.

source: news.abs-cbn.com

Asia stocks steady, euro little moved as EU vote shows limited gains by nationalists

TOKYO -- Asia stocks edged up early on Monday, and the euro was confined to a narrow range after the weekend's European Parliament elections highlighted the deepening political fragmentation of the 28-country bloc.

The euro was a shade higher at $1.1211, holding within a tight $1.2272-$1.2754 range in what was a limited reaction to so far the exit polls.

Estimates after the European Parliament polls closed on Sunday showed that the two largest centrist groups - the European Peoples' Party (EPP) to the right and the Socialists & Democrats (S&D) on the left - will no longer hold a majority in the new 751-seat chamber.

Analysts said the single currency's muted reaction to the preliminary vote outcome came as the results showed populist and far-right parties in some countries were unlikely to have gathered as much support as anticipated.

A centrist, pro-EU coalition would still be possible in the new chamber that will sit for the first time on July 2nd. But it would be more difficult to piece together among more numerous partners, according to the European Parliament's estimates.

The longer-term impact of the election, therefore, remained unclear, analysts say.

"It's difficult to foresee what will happen to Brexit, the political situation in Italy and elections in Greece just by looking at the vote count," said Shin Kadota, senior strategist at Barclays in Tokyo.

"We may not see an immediate market reaction, as the election outcome will have to seep in first before beginning to have a political impact on the various countries."

The pound was 0.1 percent higher at $1.2727. Sterling had bounced back from a near five-month trough of $1.2605 after British Prime Minister Theresa May said she would quit early next month.

The dollar index against a basket of six major currencies inched down 0.05 percent to 97.563.

In equities, MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 percent.

Gains were limited by persistent concerns that the China-U.S. trade conflict was fast turning into a technology cold war between the world's two largest economies.

Japan's Nikkei climbed 0.2 percent.

Wall Street's major indexes edged higher on Friday in a rebound from the previous session's losses after comments from US President Donald Trump regarding trade relations with China gave the wary markets a bit of a respite.

US crude futures crawled up 0.38 percent to $58.85 per barrel, trimming some of the deep losses suffered last week when trade tensions clouded the global demand outlook for the commodity.

Brent crude rose 0.79 percent to 69.24 per barrel.

source: news.abs-cbn.com