US stocks mostly up as holiday shopping season begins

NEW YORK -- Wall Street stocks mostly climbed to end a shortened trading day on Friday, with investors keeping close watch on consumer spending at the unofficial start of the year-end shopping season.

The Dow Jones Industrial Average rose 0.3 percent to 35,390.15.

The broad-based S&P 500 edged up 0.1 percent to 4,559.34, while the tech-heavy Nasdaq Composite Index ticked down 0.1 percent to 14,250.85.

Markets closed early on "Black Friday," the Friday after the Thanksgiving holiday when retailers often offer major discounts.

The annual sales day, which is followed by the newer "Cyber Monday," marks the start of the holiday shopping season.

"Today's lack of movement can be ascribed to a general lack of trading interest befitting the day after Thanksgiving," said Briefing.com in a note.

Consumers are expected to be increasingly price-conscious this year, still jaded by stubborn inflation and lingering effects from the upheaval of the pandemic.

But "how that ends up impacting retailers' profits remains to be seen" for now, Briefing.com added.

Among major retailers, Walmart shares advanced 0.7 percent while Target was up 0.5 percent.

Amazon shares were flat after it was hit by strikes in Europe, as workers demand better wages and working conditions.

UNI Global Union warned Amazon would face strikes and protests in more than 30 countries around the world, including the United States.

Agence France-Presse

Stock markets rise as US inflation data, ECB rate loom

NEW YORK -- Global markets rose on Monday at the start of a busy week that includes the release of key US inflation data and a European Central Bank decision on interest rates.

Wall Street pushed higher, with traders already focused on Wednesday's consumer price index (CPI) report, which could determine the Federal Reserve's next move on interest rates.

"Today's generally quiet session means that attention is focusing squarely on the US CPI data and ECB decision due this week," said Chris Beauchamp, chief market analyst at online trading platform IG.

"With the risk that both could deliver nasty surprises, risk appetite has been limited," he added.

Investors have worried that the Fed's rate-hike campaign to combat high inflation could tip the world's biggest economy into a severe recession.

But US Treasury Secretary Janet Yellen said Sunday she was optimistic that the economy was on course for a soft landing.

"I am feeling very good about that prediction," she said. "I think you'd have to say we're on a path that looks exactly like that."

She added: "Every measure of inflation is on the road down."

The Paris and Frankfurt stock exchanges closed higher even though the European Commission cut its 2023 growth outlook for the eurozone, from 1.1 percent to 0.8 percent.

The data will give the ECB more food for thought when it meets Thursday to decide whether to continue or pause its own rate hikes.

The commission said the higher borrowing costs had an impact on the eurozone economy.

"The new forecasts won't come as a major surprise and may even prove overly optimistic over time but they do come days ahead of the next ECB meeting and could tempt some policymakers into voting to pause the tightening cycle," said Craig Erlam, senior market analyst at the OANDA trading platform.

"Weaker economic readings will probably drive a lively debate and they obviously won't suggest, if they do hike, that it's job done," he added.

Elsewhere, London also rose while Tokyo and Hong Kong finished lower.

After a slow start, Asian traders turned more positive through the day and tracked last week's gains on Wall Street, with data showing a pick-up in Chinese inflation lifting sentiment.

Traders took heart from news that China's consumer price index rebounded in August, having contracted the month before.

While the 0.1 percent rise was less than expected, it gave traders some hope that the economy is slowly on the mend after a painful 2023 so far.

On currency markets, the yen picked up after sinking last week to a 10-month low against the dollar, with support coming from comments seen as hawkish by Bank of Japan boss Kazuo Ueda.

He told the Yomiuri newspaper that policymakers would have a better idea later in the year about wage rises, a key data point for rate decisions.

The yen has tumbled around 10 percent owing to the BoJ's refusal to move away from its ultra-loose monetary policy while the Fed pushed borrowing costs to a two-decade high.

The yuan also bounced back from a 16-year low against the dollar after the People's Bank of China said it would crack down on speculation that distorts the value of the currency after months of volatility.

In energy markets, gas prices rallied as strikes continued at Chevron plants in Australia.

Agence France-Presse

European stocks dip, oil prices rise

LONDON — European stocks slid Monday as a positive lead from Asia on Chinese stimulus measures petered out, while oil prices continued their march higher.

Equities trading in the United States was closed for a public holiday.

"European markets have struggled for gains today in the absence of the US, as the initial boost of a China stimulus inspired rally from Asia markets has started to fade, even though basic resources have outperformed," said market analyst Michael Hewson at CMC Markets.

Data showing a jump in new home sales in China brightened sentiment in Asian trading as a sign that recent government measures to boost the struggling property sector were helping.

Investors are hoping for still more measures to stimulate the world's second largest economy after a number of announcements last week, including reducing mortgage down payments and tax incentives.

"While these individual easing measures may not appear substantial, their collective implementation clearly signals policymakers' intentions to stabilize the property market, spur economic growth, and boost overall sentiment," said SPI Asset Management's Stephen Innes.

"Further targeted measures are anticipated to be incrementally introduced until policymakers are content with the achieved results."

However, observers say that traders are yearning for the government to unveil a big-bang stimulus similar to the $550 billion seen in 2008 during the global financial crisis.

News that battered developer Country Garden had won approval from creditors to extend a deadline for a key bond repayment, narrowly avoiding a potential default, provided some much-needed relief from worries over China's property sector.

Meanwhile, oil prices pushed to or near to their highest levels this year on the prospect that Saudi Arabia and Russia will extend their production caps.

"The continued risk of a tighter market is helping to drive markets higher, raising the prospect that if Chinese demand does pick up in the second half of the year, prices could jump through $90 a barrel thus posing further upside risk to sticky inflation," said Hewson.

The main international contract, Brent crude, briefly hit $89 per barrel.

"That there is still plenty of momentum so close to $90 a barrel may suggest we could see a strong push to break above which would represent a big shift in the market dynamic in quite a short period of time," said Craig Erlam at OANDA trading platform.

Agence France-Presse

Global stocks finish mixed to cap lackluster August

NEW YORK -- Global indexes mostly dipped on Thursday, capping off a lackluster month of growth for markets around the world.

European stocks mostly slipped, as did major Asian markets with the exception of Japan's Nikkei 225 index, which rose on renewed confidence in manufacturing stocks after auto giant Toyota posted strong earnings results.

Wall Street stumbled to end Thursday's session, with the Dow and S&P 500 both falling as traders digested the latest inflation numbers and looked ahead to jobs data that could prove crucial to future interest rate decisions.

A small rally on Thursday failed to save the Nasdaq from seeing its worst month of the year, while the pan-European Euro Stoxx 50 also saw a disappointing month overall.

Both the US Federal Reserve and the European Central Bank have adopted a more data-dependent approach on whether to increase interest rates further.

That made the latest inflation data all the more important ahead of the next monetary policy meetings due in September.

The Fed's preferred measure of inflation, the personal consumption expenditures (PCE) price index, rose to a 3.3 percent annual increase in July, up from 3.0 percent in June.

Thursday's data was "probably widely viewed as just fine," Craig Erlam of the OANDA trading platform told AFP.

"It's good enough for now but there's still a lot of improvement needed over the coming months," he added, before the Fed can begin relaxing monetary policy.

Sticky inflation

Across the Atlantic, stocks in Frankfurt rose while those in Paris fell after data showed the annual rate of inflation in the eurozone remained unchanged in August at 5.3 percent. This came as a smaller drop in energy prices balanced out a rise in food and drinks costs.

Analysts said the data increased the chance of the European Central Bank deciding against a further interest rate hike next month. That in turn weighed on the euro.

"With unemployment starting to show signs of increasing across the bloc, markets are starting to price an increased probability of a pause in the ECB's rate hiking cycle when the governing council next meets on September 14th," said analyst Michael Hewson at CMC Markets.

In Asia, China revealed that factory activity shrank again this month while services weakened, which will likely pile further pressure on authorities to press ahead with measures to kickstart the sputtering economy.

Officials have announced a series of pledges to help various sectors -- particularly the property industry -- and there is an expectation that more is on the way.

In the latest measure, local reports Thursday said the central bank is drawing up policies that will make it easier for private firms, including developers, to access funding.

But analysts say more wide-ranging government spending will be required to appease nervous investors.

Fresh data showing the country's manufacturing sector contracted for a fifth straight month in August only added to the arguments for more help.

On the corporate front, shares in UBS jumped six percent after the bank giant said it would fully absorb the Swiss unit of its recently-swallowed rival Credit Suisse.

Agence France-Presse

Global dividends hit record $568 bn in second quarter

PARIS, France -- Dividends paid by the world's biggest listed companies soared to a record $568.1 billion in the second quarter, with payouts to shareholders expected to grow further despite economic uncertainty, a study showed Wednesday.

Payments by the 1,200 biggest public companies rose more than expected, increasing by 4.9 percent compared to the same April-to-June period last year, according to the report by asset management firm Janus Henderson.

Banks accounted for half of the world's dividend growth as their margins were boosted by interest rate hikes, the report said.

Automakers represented one-seventh of the increase.

Firms in Europe, excluding Britain, led the pack with payouts rising by 9.7 percent to $184.5 billion. North American companies paid out $165.3 billion, a 4.2 percent increase.

Swiss food giant Nestle was the world's biggest dividend payer, followed by British bank HSBC and German automaker Mercedes-Benz.

Ben Lofthouse, head of global equity income at Janus Henderson, said global economic growth is "moderating" as interest rates increase.

"Markets now expect global profits to be flat this year, after soaring to record highs in 2022, and when we speak to companies around the world, they are now more cautious about the outlook," Lofthouse said.

Central banks have hiked rates as they battle high inflation. Lenders have responded by increasing their own rates, boosting their profits.

While a weaker economy is usually bad for banks, their rising margins are driving dividend payouts, Lofthouse said.

However, he added, "we do expect dividend growth to continue."

Agence France-Presse

US stocks mostly fall as tech rally peters out

NEW YORK -- A rally in tech shares ran out of steam Tuesday, as US stocks mostly retreated amid worries over higher Treasury bond yields that offset investor appetite to keep buying equities.

European and Asian stocks pushed higher, following up on Monday's session in New York, which saw the tech-focused Nasdaq surge.

The Nasdaq eked out a 0.1 percent gain on Tuesday, but both the Dow and S&P 500 retreated.

"Today it's a sober mindset," said Interactive Brokers strategist Steve Sosnick.

He added that Monday's rally in tech shares was probably "overenthusiastic" in light of rising bond yields.

Stocks have been under pressure in August, most recently due to a spike in Treasury bond yields to multi-year peaks, on expectations that interest rates will stay higher for longer.

Markets are looking ahead to an address on Friday by Federal Reserve Chair Jerome Powell for clues on future monetary policy.

Powell "likely will continue to emphasize the Fed's laser-focus on taming inflation, even with the central bank's benchmark funds rate already at the highest level in 22 years," said a note from Charles Schwab.

There is also still unease among traders about the Chinese economy, with another small cut in interest rates doing little to allay fears of a painful slowdown.

While authorities have pledged a series of measures to get the post-Covid recovery back on track, there has been little detail and they are facing growing calls to unveil more wide-ranging stimulus.

Adding to the problems are fears about the country's property sector. A number of major developers, including Country Garden and Evergrande, are on the ropes with vast debts and struggling to meet interest obligations.

"Policy easing announcements intended to invigorate market confidence have fallen short of their desired impact," said SPI Asset Management's Stephen Innes.

Agence France-Presse

Global stock markets slump after US ratings downgrade

NEW YORK — Global stock markets slumped Wednesday after Fitch stripped the United States of its top credit rating, citing a growing federal debt burden and an "erosion of governance."

Fitch's decision Tuesday night to downgrade the United States from AAA to AA+ sparked a fiery rebuttal from the Biden administration.

Treasury Secretary Janet Yellen characterized Fitch's move as "entirely unwarranted," calling it "puzzling in light of the economic strength we see in the United States."

Wall Street's main indices moved lower, with the S&P 500 finishing down 1.4 percent.

Europe's main markets closed with losses of more than one percent.

"Market participants were already contending with the nagging notion that the stock market was overbought on a short-term basis and due for a pullback," said market analyst Patrick O'Hare at Briefing.com.

"It didn't necessarily need another excuse to continue with a consolidation trade, yet Fitch Ratings provided one after Tuesday's close when it downgraded its US credit rating to AA+ from AAA."

Ratings downgrades often mean it becomes more expensive for a government to borrow, but the status of US government bonds, or Treasuries, as a highly liquid safe-haven asset actually saw their yield dip immediately after the announcement.

The yield on 10-year bonds later rose in trading on Wednesday, which traders said was more due to expectations of higher volumes of US borrowing than the Fitch downgrade.

DOWNGRADE 'CHANGES LITTLE' 

Stephen Innes, managing partner at SPI Asset Management, said the downgrade will be "unlikely" to "cause a significant Treasuries sell-off or prompt a major shift in investor behavior mainly because investors experienced a similar downgrade from S&P in 2011 and came away unscathed."

Michael Hewson, chief market analyst at CMC Markets UK, agreed the impact would be minimal.

"The loss of the AAA rating is damaging from a political point of view, but it changes little in the wider scheme of things when it comes to the investability of the US relative to its peers," he said.

"It’s not as if China, or any other country in Europe is any safer when it comes to investability, as well as political stability."

The downgrade follows a long, drawn-out row between Republicans and Democrats earlier this year over raising the US borrowing ceiling, which had fueled fears of a devastating default by the world's top economy.

While a deal was eventually struck, the saga rattled markets and reinforced the sense of long-running deadlock on Capitol Hill that has seen the gears of government jammed up.

In an interview with CNBC, Fitch Ratings senior director Richard Francis pointed to a "pretty steady deterioration in governance over the last couple of decades" in the United States.

Among the elements he highlighted was January 6, referring to the date in 2021 when supporters of Donald Trump stormed Congress in a bid to prevent certification of his rival Joe Biden's election victory.

Other factors, he added, included "constant brinksmanship surrounding the debt ceiling" along with Republicans and Democrats' inability to generate "meaningful, long-term solutions" on fiscal issues surrounding programs like social security and Medicare.

Agence France-Presse

Asian markets mixed but little joy as traders eye more Fed hikes

HONG KONG - Markets were mixed Thursday, with little buying enthusiasm after minutes from a Federal Reserve policy meeting indicated interest rates will likely keep rising longer than previously feared.

A blockbuster jobs report and sticky inflation data this month have dealt a hammer blow to earlier expectations the US central bank could soon pause its monetary tightening campaign or even cut borrowing costs before year's end.

Several Fed officials have lined up to warn traders they were too optimistic and that with the labour market still strong, rates would need to keep rising until it had weakened and prices were under control.

Minutes from the Fed's February 1 decision reinforced that broad agreement as policymakers try to get inflation down to their target of two percent.

"Participants observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to two percent, which was likely to take some time," the minutes said.

"Almost all participants agreed that it was appropriate to raise the target rate for the federal funds rate 25 basis points at this meeting."

And it noted that "a few participants" were in favour of a 50-point increase.

Analysts pointed out that the minutes came before the latest jobs and inflation figures.

National Australia Bank's Taylor Nugent, meanwhile, noted "the absence of any mention of 'disinflation' in the minutes, which contrasts (bank boss Jerome) Powell's press conference where he noted many times that the disinflationary process was underway".

After a healthy rally through January, global markets have rowed back this month as investors come to terms with the higher-for-longer rates narrative and recession fears return.

After Wednesday's sell-off, Asian markets were mixed.

Hong Kong, Shanghai, Sydney, Singapore, Mumbai Bangkok and Manila all fell, though Seoul, Wellington, Taipei and Jakarta edged up.

London dipped at the open, though Frankfurt and Paris edged higher.

"One of our big concerns coming into this year was the market was anticipating an event that wasn't likely to occur, that being a dovish Fed pivot," Oaktree Capital Management's Danielle Poli told Bloomberg Television.

"The market has woken back up a little bit in these last two weeks."

Investors are now awaiting the release of US jobless claims later in the day, which could provide a fresh idea about the strength of the labour market.

Crude prices edged up slightly Thursday but made only a small dent in the losses of at least three percent suffered the day before as the prospect of higher rates and a possible recession drags on demand expectations.

Agence France-Presse

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

Markets boosted by rate hopes ahead of Fed decision

HONG KONG - Most markets rose Monday ahead of a crucial Federal Reserve policy meeting later in the week, with investors hoping for a less hawkish tilt in their plans for interest rates.

A sense of relief has settled on trading floors over the past week following a report that the US central bank could take its foot off the accelerator in its push to rein in decades-high inflation.

Adding to the positive mood has been an indication that others around the world are looking at slowing down, though the excitement was tempered Friday by record inflation readings in Europe and data showing prices remained elevated.

Asian dealers were given a strong lead from Wall Street, where all three main indexes ended more than two percent higher thanks to a rally in tech firms following a strong earnings report from Apple.

Tokyo, Seoul, Sydney, Singapore, Taipei, Mumbai, Bangkok and Wellington all piled on more than one percent, while Jakarta was also up.

However, Hong Kong and Shanghai fell on concerns about China's growth outlook as the government continues its zero-Covid strategy of lockdowns, with restrictions imposed in towns and cities nationwide.

Data showing activity in the factory and services sectors contracted last month highlighted the impact the measures are having on the world's number two economy.

The drops also come after China announced a tally of over 2,500 new virus cases, the biggest outbreak in more than two months, fanning concerns of further painful shutdowns.

All eyes are on the Fed's policy meeting, which ends Wednesday.

While it is widely expected to announce a fourth successive 75 basis point hike, traders will be poring over the post-meeting statement looking for a hint that officials are open to dialing back the pace of increases.

The gathering comes as other central banks have recently indicated they are willing to ease up, with Canada raising rates less than expected last week, while authorities in Australia and Europe have taken a more dovish view.

Concerns that rapidly rising borrowing costs will send economies into a recession have hammered markets globally this year.

"There has been a succession of central bank downshifts, adding to the 'peak hawkishness' theme running through macro markets," said SPI Asset Management's Stephen Innes. "And investors are entirely focused on these U-turns as peak rates get priced in. 

"So, people don't want to miss the stock market rally wagon, especially if the Fed conveys a similar policy downshift this week, sending the rally into overdrive as pivot procrastinators will be forced to chase."

The policy decision is followed Friday by the release of US jobs figures, which will give a fresh snapshot of the economy in light of rising prices and interest rates.

A better-than-expected earnings season has also provided support to global markets, easing concerns that tighter monetary policies would hammer firms' bottom lines, though big-name tech giants have taken a blow.

National Australia Bank's Rodrigo Catril said more than 70 percent of companies that had reported had beaten forecasts, though he added that while markets had risen over the past month, some traders remained cautious.

"Those with a positive inclination may look at October's equity performance as a sign of a new uptrend while others would suggest we have not yet seen the worst given the lag effects from monetary policy and the prospect of still more tightening to come," he said in a note.

Key figures around 0710 GMT 

Tokyo - Nikkei 225: UP 1.8 percent at 27,587.46 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 14,700.12

Shanghai - Composite: DOWN 0.8 percent at 2,893.48 (close)

Euro/dollar: DOWN at $0.9945 from $0.9967 on Friday

Pound/dollar: DOWN at $1.1596 from $1.1618 

Dollar/yen: UP at 147.76 yen from 147.46 yen

Euro/pound: UP at 85.79 pence from 85.77 pence

West Texas Intermediate: DOWN 0.9 percent at $87.09 per barrel

Brent North Sea crude: DOWN 1.0 percent at $94.85 per barrel

New York - Dow: UP 2.6 percent at 32,861.80 (close)

London - FTSE 100: DOWN 0.4 percent at 7,047.67 (close) 

Agence France-Presse

Stocks drop and dollar rises as inflation, rate fears return

HONG KONG - Equities tumbled Thursday, tracking a sell-off on Wall Street, while the dollar jumped further as surging inflation, interest rate hikes and recession fears returned to the fore.

Traders in Europe were keeping tabs on Westminster a day after Prime Minister Liz Truss's government was plunged into a fresh crisis and facing collapse following the resignation of home secretary Suella Braverman.

That came days after the sacking of finance minister Kwasi Kwarteng and has left Truss's premiership on a knife-edge.

The positive start to the week, helped by forecast-beating earnings and a major UK government policy U-turn, gave way to the downbeat mood that has characterized markets all year as traders contemplated an extended period of uncertainty.

News that UK inflation bounced back above 10 percent in September highlighted the struggle central banks have in bringing prices down, despite lifting borrowing costs in recent months.

That followed a similarly glum reading out of New Zealand earlier in the week and helped push up government bond yields around the world, indicating higher interest rates.

The unease on trading floors, and concerns that prices are showing no sign of easing, also sent investors back into the safety of the dollar, adding more inflationary pressure outside the United States and dragging on stock markets.

"As is often the case, rising US yields and the strong US dollar are the sledgehammers pounding global equities lower," said SPI Asset Management's Stephen Innes. 

After Wall Street's drop, markets across Asia were deep in the red, with selling also fuelled by concerns about the Chinese economy as Covid cases spike in the country and leaders stick to lockdown strategies.

A decision to delay the release of third-quarter growth data this week added to the unease among investors.

Hong Kong led losses, shedding almost three percent at one point, while Tokyo, Sydney, Seoul, Wellington, Taipei, Shanghai, Mumbai and Manila were also in the red.

There was a brief rally in the afternoon sparked by a report that China was considering easing quarantine rules for people coming into the country, though traders were unable to maintain momentum.

London's FTSE 100 fell in the morning. Frankfurt was also down but Paris edged up.

The losses wiped out most of the gains enjoyed at the start of the week, even as positive earnings reports came in from Netflix and top Wall Street banks, with Ellen Hazen of F.L.Putnam Investment Management warning worse could be yet to come.

"As we look at third-quarter results, we think there are going to be more misses than the market is currently expecting," she told Bloomberg Radio.

"If you look at GDP for this year, it keeps getting revised downward and it's really hard for companies to keep growing their earnings in the face of that."

On forex markets the dollar briefly broke to as high as 150.08 yen for the first time since 1990, putting pressure on Japanese authorities who said saying they were keeping a close watch on the market and were ready to step in to support the beleaguered currency.

But analysts warned the yen would continue to slide as long as the Bank of Japan refuses to tighten monetary policy at the same time as the Federal Reserve presses on with its sharp rate hikes.

The pound was also back under pressure, having bounced Monday after Britain's new finance minister Jeremy Hunt reversed virtually all of Truss's debt-fuelled, tax-cutting mini-budget that hammered financial markets.

Sterling was hovering just above $1.12 -- against more than $1.14 Tuesday -- owing to the chaos in Westminster, with many of the prime minister's own party calling for her to stand down, while there is speculation that more members of the cabinet could walk.

Oil prices extended Wednesday's rally that came in reaction to a drop in US petroleum stockpiles, and despite President Joe Biden's decision to release 15 million barrels from US strategic reserves.

The crude was the last batch to be released from the 180 barrels pledged by Biden earlier this year, aimed at bringing costs down.

But Innes added: "Markets will mostly ignore further releases from the Strategic Petroleum Reserves -- prices are elevated because of the medium- and longer-term gap between supply and demand resulting from years of oil industry swoon and the resulting low capital expenditure.

"So, the impact of additional... releases will likely have diminishing returns with (reserves) at a multi-decade low."

Key figures around 0810 GMT 

Tokyo - Nikkei 225: DOWN 0.9 percent at 27,006.96 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 16,280.22 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,035.05 (close)

London - FTSE 100: DOWN 0.2 percent at 6,914.36

Pound/dollar: DOWN at $1.1210 from $1.1219 on Wednesday

Dollar/yen: UP at 149.90 yen from 149.88 yen

Euro/dollar: UP at $0.9794 from $0.9778 

Euro/pound: UP at 87.18 pence from 87.10 pence

West Texas Intermediate: UP 1.5 percent at $86.86 per barrel

Brent North Sea crude: UP 1.2 percent at $93.52 per barrel

New York - Dow: DOWN 0.3 percent at 30,423.81 (close)

Agence France-Presse

Markets drop again as traders brace for another big Fed hike

HONG kong - Markets fell Monday as traders extended last week's rout across risk assets, with expectations high that the Federal Reserve will this week announce another outsized interest rate hike.

With recent data showing US inflation rooted at four-decade highs, investors are increasingly pessimistic about the outlook for the global economy.

Some observers have warned of a sharp recession in many countries caused by the huge rate increases, which are hitting families in the pocket.

And with uncertainty rife owing to a range of issues, including Russia's war in Ukraine and China's lockdown-induced slowdown, equities are in danger of revisiting the lows they hit in June.

Several central banks are due to make rate announcements this week, with Japan and Britain among the biggest, although the main event is Wednesday's Fed decision.

There had been a hope that after two 75-basis-point increases in a row, and economic data showing weakness, officials would take their foot off the pedal this month.

But last Tuesday's disappointing consumer price figures shocked traders and ramped up bets for a third successive 75-point rise, while some have predicted a whole percentage point move.

Policymakers, including Fed boss Jerome Powell, have repeatedly said their ultimate aim is to bring inflation under control, even if that means sending the economy into recession.

"It is clear that the Fed will project hawkish messaging, once again reiterating that it will bring down inflation unconditionally," said Vasileios Gkionakis at Citigroup.

Wall Street's worst week since June ended with more losses after FedEx reported Thursday that it shipped fewer packages than expected over the summer owing to weakness in the global economy.

That came as CEO Raj Subramaniam said he expects a global recession.

Asian equity investors continued the selling on Monday.

Hong Kong closed down one percent, even after reports that the city's government was considering ending mandatory hotel quarantine for incoming travelers.

Shanghai was also down despite news that megacity Chengdu was ending a two-week Covid-19 lockdown that saw 21 million people affected.

Sydney, Seoul, Singapore, Taipei, Manila and Wellington were also in the red, though Mumbai and Bangkok inched up and Jakarta was flat. Tokyo was closed for a holiday.

Frankfurt and Paris both opened lower. London was closed for the funeral of Queen Elizabeth II.

The prospect of more big Fed rate hikes is also keeping the dollar at multi-decade highs against its major peers, with the yen feeling most of the pressure as the Bank of Japan refuses to tighten policy.

"Speculative selling of the yen is readily justified by the ongoing widening in US-Japan yield differentials," said Ray Attrill, of National Australia Bank.

"Until or unless something happens to arrest or reverse this spread widening, the yen is susceptible to additional selling pressure."

The Japanese unit last week hit a fresh 24-year low of 144.99 to the dollar, though it has bounced slightly after comments from BoJ officials that signaled they were ready to intervene to provide support.

Oil prices dipped despite the news out of Chengdu as demand fears are fuelled by the growing fear of recession around the world.

Agence France-Presse

Asian markets drop as Fed minutes cause fresh rate hike woe

HONG KONG - Markets dropped in Asia on Thursday following a sell-off in New York spurred by minutes from the Federal Reserve indicating officials intended to keep lifting interest rates to tackle decades-high inflation.

While policymakers said they would eventually have to start tempering their tightening pace, they said they would keep borrowing costs elevated "for some time", though admitted there was a risk of going too far and damaging the economy.

The minutes dampened hopes that after a period of quick, sharp increases this year, the bank could possibly begin lowering them in 2023 once inflation was coming down.

Bets on a more dovish approach in the new year had been boosted by data showing inflation came down quicker in July than expected. That helped drive a rally in equities from their June lows and weighed on the dollar.

But the realization that policy would likely stay restrictive undermined the sense of optimism, pushing all three indexes on Wall Street down Wednesday with the tech-heavy Nasdaq taking the biggest hit, while the dollar rallied and extended gains in Asia. 

And news that UK inflation spiked above 10 percent for the first time since 1982 added to the downbeat mood.

Asian traders appeared increasingly worried that the Fed will slip up as it tries to bring down inflation without causing another recession in the world's biggest economy.

Tokyo, Hong Kong, Sydney, Shanghai, Seoul, Taipei, Mumbai, Wellington and Bangkok were down, though Singapore, Manila and Jakarta edged up. 

London fell in the morning while Frankfurt and Paris rose.

"The key takeaway from these minutes would appear to show that there is little inclination on the part of anyone on the (policy board) to even look at the possibility of rate cuts," said Michael Hewson at CMC Markets.

He added that they "chime with more recent comments from Fed officials which suggest that we could see at least another 1.5% in rate rises by year end".

And JP Morgan Asset Management's Meera Pandit told Bloomberg Television: "We do still anticipate there's going to be a lot of interest-rate volatility in the back half of the year, especially once markets start to perhaps acknowledge the fact that we might not necessarily see cuts in 2023 that are being priced in."

Sentiment was also dragged by continuing worries about China's economy, with Goldman Sachs and Nomura slashing their growth outlooks again following another weak round of data and as the country reels from Covid-19 lockdowns.

The announcements came after Beijing on Monday cut interest rates in a surprise move, before Premier Li Keqiang called on six key provinces -- accounting for about 40 percent of the economy -- to bolster pro-growth policies.

But Nomura economists said that while officials will likely unveil further measures "rolling out a comprehensive stimulus package is of low probability in a year of government reshuffle, while the need for maintaining zero-Covid makes conventional stimulus measures much less effective". 

Agence France-Presse

Shares of BTS label tumble after band announces hiatus

SEOUL — Shares in the management agency of the K-pop supergroup BTS plummeted Wednesday in early trading in Seoul after the band announced they were taking an indefinite break.

The 7 members, credited with generating billions of dollars for the South Korean economy, dropped the bombshell during their streamed "FESTA" dinner, part of a celebration that marks their anniversary as a group.

The news sent shares of the band's label HYBE tumbling -- it was down about 27 percent as of 10:40 a.m. local time (9:40 a.m. in Manila).

The stock -- down nearly 60 percent so far this year -- was headed for its lowest close on record since its trading debut in October 2020, wiping $1.6 billion off its market value, Bloomberg News reported.

The group cited the pressures of fame and success in explaining the break, and said they planned to focus on solo pursuits.

BTS's label enjoyed a surge in profits despite the group staging fewer concerts during the COVID-19 pandemic.

The septet is the first all-South Korean act to reign over Billboard's US top singles chart, a milestone they achieved with "Dynamite" -- the first BTS song performed completely in English.

They are also one of few acts since The Beatles to release 4 albums that hit number 1 stateside in less than 2 years.

The group has twice been nominated for a Grammy but has yet to win.

BTS recently made headlines for visiting the White House to deliver a message to US President Joe Biden on the fight against anti-Asian racism.

BTS has said they were going on short breaks before, first in 2019 and later in December 2021.

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

China bubble tea firm debuts after $650 million IPO caps labor of love

HONG KONG - Chinese bubble tea chain Nayuki edged down on its Hong Kong market debut Wednesday after raising more than US$650 million in an IPO that marked the culmination of a literal labor of love for the co-owners who created the firm on a blind date.

The company joins a handful of bubble tea outlets to go public in recent years as the beverage -- which comes loaded with milk, sugar and tapioca pearls -- storms out from its Asian fanbase to gain a global following.

It also makes it the latest Chinese business to list in Hong Kong, even as a series of tepid performances by new companies spark concerns about the city's IPO market.

Targeting well-heeled young consumers, the 550-store chain opened its first outlet in the southern metropolis of Shenzhen in 2015.

Entrepreneur Peng Xin reportedly pitched her business idea to Zhao Lin -- a professional in the food industry -- over a blind date two years earlier.

Within months, the pair married and became business partners.

"After we met, I enthusiastically told him about my entrepreneurial dream for two to three hours and asked, 'Mr Zhao, what do you think of my idea?'," Peng said, according to Chinese news site Jiemian in 2018.

"He said, 'I think your idea is very good. If you want to get it off the ground more quickly, you could go out with me and we could start a business together'.

"Half a year later we got married and a year after, we opened Nayuki."

Their brand prides itself on innovative drinks, fresh ingredients and a cool cafe decor to set it apart in China's crowded bubble tea environment.

Shares in the firm fell to HK$18.86 from their listing price of HK$19.80. 

The company had sold 257.3 million shares, raising US$656 million and valuing it at US4.38 billion, according to Bloomberg News.

The company plans to use cash from the IPO to open 650 more stores this year and next.

But it clocked up losses of 203 million yuan (US$31.4 million) last year as it embarked on an aggressive expansion drive, though revenue grew 22 percent.

The rapid scale-up has drawn comparisons to embattled chain Luckin Coffee -- which burned through millions of dollars to challenge dominant US titan Starbucks, before facing a raft of scandals.

However, research firm China Insights Industry Consultancy estimates the country's appetite for freshly made tea drinks will rocket threefold to US$53.2 billion by 2025, said Nayuki in its prospectus.

"I drink bubble tea a lot if I'm especially stressed, consuming eight to 10 cups a week," said one student at a Beijing store.

Another consumer in her 20s surnamed Li told AFP: "I try to control myself, but I end up coming about once or twice a week."

Agence France-Presse

Starbucks sales miss as virus spike keeps customers at home

Starbucks Corp on Tuesday reported a larger-than-expected fall in quarterly sales as the renewed surge in coronavirus cases in the United States kept customers at home.

The world’s largest coffee chain’s global same-store sales fell 5 percent in its first quarter, which ended Dec. 27, more than analysts’ estimates of a 3.4 percent decline, according to Refinitiv IBES data.

Shares fell slightly in extended trading.

The second wave of COVID-19 infections and accompanying restrictions dented traffic at the coffee chain’s stores, hampering its efforts to boost demand through product launches and new drive-thrus.

Comparable sales declined 6 percent for the Americas region, compared with a 5.2 percent fall expected by analysts.

But in China, Starbucks’ biggest growth market, comparable sales rose 5 percent as the company benefited from the popularity of its rewards program and the return of pre-coronavirus consumer habits.

Customers also spent more money per order, helping to offset fewer transactions.

Starbucks also said Chief Operating Officer Roz Brewer would be leaving the company next month to take a chief executive officer role at another company.

Walgreens Boots Alliance Inc later announced that Brewer would take the helm at the company effective March 15.

For the second quarter, Starbucks said it expects U.S. comparable sales to rise between 5 percent and 10 percent, while in China they were forecast to grow nearly two-fold a year after the pandemic hit the region.

The company did not change its guidance of an expected rebound overall this year, with global comparable sales expected to rise 18 percent to 23 percent in 2021.

Net revenue fell 5 percent to $6.7 billion, missing expectations of $6.93 billion.

The Seattle-based company has been closing some stores, adding drive-thrus to others, remaking some with smaller cafes and building a few with no seating at all as it focuses on expanding to-go options.

Overall, the company opened 278 net new stores in the quarter, for 4 percent year over year growth. It now has 32,938 stores around the world, 51 percent of which are company-operated.

Starbucks also saw coffee lovers return to its Rewards loyalty program, with its count of 90-day active U.S. members increase 15 percent year over year to 21.8 million.

-reuters-

Japan's financial watchdog to order Tokyo bourse to swiftly report on trading system glitch

TOKYO - Japan's financial watchdog will order the Tokyo Stock Exchange (TSE) to report swiftly on its system glitch that halted trading at the bourse for the whole day on Thursday, Finance Minister Taro Aso said.

The Financial Services Agency needs to examine the case after the stock exchange clears up the system trouble and takes steps to prevent a recurrence, Aso told reporters after a cabinet meeting.

The TSE resumed normal trading on Friday, with the main index starting slightly higher a day after the worst-ever outage brought the world's third-largest equity market to a standstill.

-reuters-

World stocks pull back as virus worries resurface

NEW YORK -- Stock markets eased back on Thursday as worries that the world has not seen the last of the coronavirus pandemic caused investors to take some profits after a recent strong run.

US data showing 1.5 million workers filed for unemployment benefits last week -- only slightly less than the prior week -- added to jitters about the economic outlook.

In Europe, investors were underwhelmed by the Bank of England's latest monetary policy decisions, which undermined the pound and London stocks.

Wall Street finished little changed after a choppy session, as investors weighed weak economic data against optimism over the impact of monetary stimulus.

Art Hogan, chief market strategist at National Securities, described the market as being "in a bit of a stalemate" with worrisome economic and coronavirus trends offset by reassuring support from the Federal Reserve and hopes for coronavirus treatments.

Global markets were still "a bit cautious as uncertainty regarding a second wave of COVID-19 continues to simmer, countering recent economic data that has suggested improvement as economies reopen," said analysts at Charles Schwab.

Earlier, Asian equity indices had closed mixed after a 2-day rally.

The Bank of England on Thursday unveiled an extra £100 billion of cash stimulus to prop up Britain's coronavirus-hit economy, a figure in line with expectations, but analysts said the market had hoped for some forward-looking reassurance.

"BoE watchers could feel a little short-changed," said Kallum Pickering at Berenberg.

"The market had expected a clear signal that the BoE would ease policy significantly further at a later date or that the bank was seriously contemplating further expanding its toolkit in response to the COVID-19 mega-recession," he said.

While countries are slowly reopening their economies -- with flights resuming, bars, cafes and restaurants serving people and professional football returning -- new infections continue to surge in some places and are flaring up again in others.

Eyes are on Beijing, which has imposed new lockdowns, closed schools and banned flights again after the emergence of new clusters.

Meanwhile, hospitalizations have risen in Texas among other US states since Memorial Day, and California on Thursday required face masks in public indoor spaces following a jump in cases.

KEY FIGURES AROUND 2030 GMT (4:30 a.m. Friday in Manila)

New York - Dow: DOWN 0.2 percent at 26,080.10 (close)

New York - S&P 500: UP 0.1 percent at 3,115.34 (close)

New York - Nasdaq: UP 0.3 percent at 9,943.05 (close)

London - FTSE 100: DOWN 0.5 percent at 6,224.07 (close)

Frankfurt - DAX 30: DOWN 0.8 percent at 12,281.53 (close)

Paris - CAC 40: DOWN 0.8 percent at 4,958.75 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,249.90 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 22,355.46 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 24,464.94 (close)

Shanghai - Composite: UP 0.1 percent at 2,939.32 (close)

West Texas Intermediate: UP 2.3 percent at $38.84 per barrel

Brent North Sea crude: UP 2.0 percent at $41.51 per barrel

Euro/dollar: DOWN at $1.1203 from $1.1244 at 2050 GMT

Dollar/yen: DOWN at 106.99 yen from 107.01

Pound/dollar: DOWN at $1.2422 from $1.2555

Euro/pound: UP at 90.18 from 89.55 pence

Agence France-Presse