Tag Archives: Asian

DNA from ancient population in Southern China suggests Native Americans’ East Asian roots

The lateral view of the skull unearthed from Red Dear Cave. Credit: Xueping Ji

For the first time, researchers successfully sequenced the genome of ancient human fossils from the Late Pleistocene in southern China. The data, published July 14 in the journal Current Biology, suggests that the mysterious hominin belonged to an extinct maternal branch of modern humans that might have contributed to the origin of Native Americans.

“Ancient DNA technique is a really powerful tool,” Su says. “It tells us quite definitively that the Red Deer Cave people were modern humans instead of an archaic species, such as Neanderthals or Denisovans, despite their unusual morphological features,” he says.

The researchers compared the genome of these fossils to that of people from around the world. They found that the bones belonged to an individual that was linked deeply to the East Asian ancestry of Native Americans. Combined with previous research data, this finding led the team to propose that some of the southern East Asia people had traveled north along the coastline of present-day eastern China through Japan and reached Siberia tens of thousands of years ago. They then crossed the Bering Strait between the continents of Asia and North America and became the first people to arrive in the New World.

The journey to making this discovery started over three decades ago, when a group of archaeologists in China discovered a large set of bones in the Maludong, or Red Deer Cave, in southern China’s Yunnan Province. Carbon dating showed that the fossils were from the Late Pleistocene about 14,000 years ago, a period of time when modern humans had migrated to many parts of the world.

The reproduced portrait of the Red Deer Cave People or Mengziren. Credit: Xueping Ji

From the cave, researchers recovered a hominin skull cap with characteristics of both modern humans and archaic humans. For example, the shape of the skull resembled that of Neanderthals, and its brain appeared to be smaller than that of modern humans. As a result, some anthropologists had thought the skull probably belonged to an unknown archaic human species that lived until fairly recently or to a hybrid population of archaic and modern humans.

In 2018, in collaboration with Xueping Ji, an archaeologist at Yunnan Institute of Cultural Relics and Archaeology, Bing Su at Kunming Institute of Zoology, Chinese Academy of Sciences, and his colleagues successfully extracted ancient DNA from the skull. Genomic sequencing shows that the hominin belonged to an extinct maternal lineage of a group of modern humans whose surviving decedents are now found in East Asia, the Indo-China peninsula, and Southeast Asia islands.

The finding also shows that during the Late Pleistocene, hominins living in southern East Asia had rich genetic and morphologic diversity, the degree of which is greater than that in northern East Asia during the same period. It suggests that early humans who first arrived in eastern Asia had initially settled in the south before some of them moved to the north, Su says.

The excavation site of Maludong (Red Deer Cave). Credit: Xueping Ji

“It’s an important piece of evidence for understanding early human migration,” he says.

Next, the team plans to sequence more ancient human DNA by using fossils from southern East Asia, especially ones that predated the Red Deer Cave people.

“Such data will not only help us paint a more complete picture of how our ancestors migrate but also contain important information about how humans change their physical appearance by adapting to local environments over time, such as the variations in skin color in response to changes in sunlight exposure,” Su says.







Middle Pleistocene human skull reveals variation and continuity in early Asian humans


More information:
Bing Su, A Late Pleistocene human genome from Southwest China, Current Biology (2022). DOI: 10.1016/j.cub.2022.06.016. www.cell.com/current-biology/f … 0960-9822(22)00928-9

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DNA from ancient population in Southern China suggests Native Americans’ East Asian roots (2022, July 14)
retrieved 15 July 2022
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Asian stocks fall to two-year low, euro nears par with dollar on growth fears

HONG KONG, July 12 (Reuters) – Global equities faltered, oil fell and the euro inched closer to parity with the safe haven dollar on Tuesday as the prospect of further tightening by central banks, renewed COVID outbreaks in China and Europe’s energy shortages spooked investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.3% to its lowest level in two years, while Japan’s Nikkei (.N225) lost 2%.

Futures also pointed to a week open in the U.S. and Europe, as U.S. S&P 500 e-minis , lost 0.6%, Nasdaq futures fell 0.7%, pan-region Euro Stoxx 50 futures shed 0.8% and FTSE futures slipped 0.44%.

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The euro fell as low as $1.0005 against the U.S. dollar, moving ever closer to parity for the first time since December 2002, as investors worry an energy crisis will tip the region into a recession.

“Risk-off sentiment is dominating global markets,” said Yuting Shao, macro strategist at State Street Global Markets.

“The dollar is the go-to international reserve currency. So when there is a recessionary risk or there’s pickup of volatility, the greenback is the currency that people rush to because that is the safest,” Shao added.

The dollar index , which tracks the currency against a basked of six peers rose to 108.44, the highest since October 2002.

The focus for this week will be macro data including U.S. consumer inflation on Wednesday, and comments from Federal Reserve Officials as investors look for clues on the outcome of the Fed’s upcoming policy meeting before officials enter the pre-meet blackout period.

A high inflation reading would add pressure for the Fed to step up its already aggressive pace of interest rate increases.

Also high on investors’ list of worries is the fact that a growing number of Chinese cities, including the commercial hub Shanghai, are adopting fresh COVID-19 curbs starting from this week to rein in new infections after finding a highly-transmissible Omicron subvariant. read more

By early afternoon, Hong Kong’s benchmark Hang Seng Index (.HSI) fell 1.21% to its lowest since June 17, while the mainland China blue chip CSI300 (.CSI300) lost 1.3%.

Additionally, the surging cost of energy in Europe is a major fear as the biggest single pipeline carrying Russian natural gas to Germany entered annual maintenance, with flows expected to stop for 10 days.

Investors are worried the shutdown might be extended because of the war in Ukraine, restricting European gas supply further and tipping the struggling eurozone economy into recession. read more

The yield on benchmark 10-year Treasury notes was at 2.9595%, having dropped back below 3% overnight as investors bought safe haven Treasuries amid a sell-off on Wall Street.

Growth fears were also weighing on oil, despite concerns about the tight supply.

Brent crude futures fell $1.35, or 1.3%, to $105.75 a barrel, while U.S. West Texas Intermediate crude was at $102.64 a barrel, down $1.45, or 1.4%.

Gold was slightly lower. Spot gold was traded at $1728.98 per ounce.

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North Korea says U.S.-South Korea-Japan agreement materialises U.S. plan for ‘Asian NATO’

SEOUL (Reuters) – North Korea criticised the United States, South Korea and Japan’s recent agreement on strengthening military cooperation to be a means to materialise a U.S. plan for a military alliance like NATO in the region.

North Korea’s foreign ministry spokesperson said as much to a question put by KCNA, the state news agency reported on Sunday.

“The reality clearly shows that the real purpose of the U.S. spreading the rumour about ‘threat from North Korea’ is to provide an excuse for attaining military supremacy over the Asia-Pacific region,” said the spokesperson.

“The prevailing situation more urgently calls for building up the country’s defences to actively cope with the rapid aggravation of the security environment,” the spokesperson added.

The leaders of the United States, South Korea and Japan met on the sidelines of a NATO summit last week and agreed to explore further means to reinforce “extended deterrence” against North Korea.

(Reporting by Jihoon Lee; editing by Jonathan Oatis)

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Florida woman charged with hate crime for pepper-spraying Asian women in NYC

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A Florida woman accused of making anti-Asian remarks and pepper-spraying four people in New York City earlier this month has been charged with hate crimes. 

Madeline Barker, 47, of Central Florida, was arraigned in court Saturday, where she was formally charged with attempted assault as a hate crime, assault as a hate crime, and harassment as a hate crime, according to court records. 

Madeline Barker in New York City. 
(NYPD Hate Crimes)

Police say witnesses saw Barker on June 11 pepper spray four women during a verbal altercation and made anti-Asian remarks at the intersection of 14th Street and Ninth Avenue in Chelsea. 

Barker is accused of telling the women: “Go back where you came from! Go back to your country!” 

SUSPECT IN DEADLY TAIWANESE CHURCH SHOOTING IN CALIFORNIA CHARGED WITH HATE CRIME

She was arrested after an eyewitness recognized her on the street and called the cops, an assistant district said in Manhattan Criminal Court. 

Madeline Barker made her first court appearance on Saturday. 
(NYPD Hate Crimes)

Barker made her first court appearance on Saturday and was ordered held on $20,000 bail, The New York Post reported. 

Her legal aid counsel reportedly told the judge the case had been “amplified by media sensation.” 

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She’s due back in court on Thursday. 

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Asian stocks slide as Fed hike fears tip Wall St into bear market

HONG KONG, June 14 (Reuters) – Asian shares slid sharply and the safe-haven dollar held near a two-decade peak on Tuesday after Wall Street hit a confirmed bear market milestone on fears aggressive U.S. interest rate hikes would push the world’s largest economy into recession.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.45% in volatile trade, clawing back some of its earlier losses.

Australia’s benchmark S&P/ASX200 (.AXJO) closed 3.55% lower while Japan’s Nikkei stock index (.N225) was down 1.32%, having fallen as much as 2% earlier in the session.

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The negative tone in Asia followed a bleak U.S. session on Monday, which saw Goldman Sachs forecast a 75 basis point interest rate hike at the Federal Reserve’s next policy meeting on Wednesday. read more

However, investors appeared to be shaking off the gloom heading into European trade with the pan-region Euro Stoxx 50 futures up 0.83%, German DAX futures 0.9% higher and FTSE futures rising 0.62%. U.S. stock futures also added 1.17%.

“While there is clearly a risk from a significant policy tightening, it remains unlikely that there will be a fully fledged recession, with the unemployment rate jumping by two or more percentage points,” said Stephen Koukoulas, managing director at the Canberra-based Market Economics.

“Rather, it is certain growth will slow – which is the aim of the policy tightening – and by late this year, inflation pressures should start to ease.”

In Hong Kong, the Hang Seng Index (.HSI) pared earlier losses to be up 0.26% after trading in negative territory for most of the day. China’s CSI300 Index (.CSI300) retraced some of its lost ground to be off 0.23%.

Expectations for aggressive U.S rate hikes have risen after inflation in the year to May shot up by a sharper than predicted 8.6%.

“The U.S. market is the biggest in the world so when it catches a cold the rest of the world does as well,” said Clara Cheong, global market strategist at JP Morgan Asset Management.

“There will be short-term volatility in Asia but we think in the medium to longer term in Asia ex-Japan, earnings expectations have already been downgraded so there is a relatively brighter outlook here than other parts of the world.”

Cheong said China monetary easing and the re-opening of ASEAN economies from COVID-19 lockdowns could shield the region from some of the financial market fallout.

On Wall Street overnight, fears of a U.S. recession kicked the S&P 500 (.SPX) down 3.88%, while the Nasdaq Composite (.IXIC) lost 4.68%. The Dow Jones Industrial Average (.DJI) fell 2.8%.

The benchmark S&P 500 is now down more than 20% from its most recent record closing high, confirming a bear market, according to a commonly used definition.

Benchmark 10-year Treasury yields hit their highest since 2011 on Monday and a key part of the yield curve inverted for the first time since April as investors braced for the prospect that Fed attempts to stem soaring inflation would dent the economy.

The yield on benchmark 10-year Treasury notes rose to 3.3466% compared with its U.S. close of 3.371% on Monday. The two-year yield , which rises with traders’ expectations of higher Fed fund rates, touched 3.3804% compared with a U.S. close of 3.281%.

In currency markets, the dollar index , which tracks the greenback against a basket of major currencies, was at 104.98, just off a two-decade peak of 105.29 it hit on Monday. read more

Against the Japanese yen, the U.S. currency was at 134.59, just below its recent high of 135.17.

The European single currency rose 0.2% to $1.0432, having lost 2.8% in a month.

Bitcoin fell around 4.5% on Tuesday to $21,416, a fresh 18-month low, extending Monday’s 15% fall as markets were jolted by crypto lender Celsius suspending withdrawals. read more

Oil markets began to recover late in the Asian session with U.S. crude up 0.13% at $121.08 a barrel, having traded down most of Tuesday. Brent crude firmed slightly to $122.42 per barrel.

Gold shrugged off a weaker start with the spot price gaining 0.42% to $1,826.65 per ounce.

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Reporting by Scott Murdoch in Hong Kong; Additional reporting by Alun John; Editing by Sam Holmes

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U.S. and China likely to trade blows at Asian security meeting

SINGAPORE, June 9 (Reuters) – The United States and China are expected to use Asia’s top security meeting this week to trade blows over everything from Taiwan’s sovereignty to the war in Ukraine, although both sides have indicated a willingness to discuss managing differences.

The Shangri-La Dialogue, which attracts top-level military officials, diplomats and weapons makers from around the globe, will take place June 10-12 in Singapore, the first time the event has been held since 2019 after it was postponed twice because of COVID-19.

Ukraine’s President Volodymyr Zelenskiy will address the meeting in a virtual session on Saturday, organisers said.

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On the sidelines of the summit, U.S. Defense Secretary Lloyd Austin and Chinese Minister of National Defence General Wei Fenghe are expected to hold their first face-to-face meeting since President Joe Biden took office.

“We expect, from our perspective, the substance of that meeting to be focused on managing competition in regional and global issues,” a senior U.S. official said.

The official said the focus would be on trying to set guard rails in the tense relationship between the two countries and ensure that issues would not spill over into some sort of military misunderstanding or miscommunication.

“We are taking every effort to ensure that it is a professional, substantive meeting and we are going to be talking about some very serious issues, but no desire on the part of the United States to make a public spectacle,” the official said.

Chinese media have also said Beijing will use the meeting to discuss cooperation with the United States.

Austin and Wei are likely to then use speeches over the weekend to re-affirm their commitment to the Asia-Pacific region, while delivering some pointed remarks in the direction of the other.

Relations between China and the United States have been tense in recent months, with the world’s two largest economies clashing over everything from Chinese belligerence towards Taiwan, its military activity in the South China Sea and Beijing’s attempts to expand influence in the Pacific region.

“The key issue this year is inevitably going to be the U.S.-China competitive relationship,” said Meia Nouwens, Senior Fellow for Chinese Defence Policy and Military Modernisation at The International Institute for Strategic Studies, the think tank that organises the event.

“There’s a new sense of urgency with regards to the People’s Liberation Army’s ongoing modernisation and the assertiveness that we’ve seen from China in the last two years.”

Although the summit is focused on Asian security issues, Russia’s invasion of Ukraine will remain central to discussions. The conflict, which has killed tens of thousands of people, uprooted millions and reduced cities to rubble, entered its 100th day last week.

Ukraine will send a delegation to the meeting but the Russians will not be attending, according to a source familiar with the list of attendees.

“American participants will use the occasion to criticise China’s strategic partnership with Russia,” said Li Mingjiang, associate professor at the S. Rajaratnam School of International Studies in Singapore.

“We’ll see some inferences of the China-Russia partnership as a coalition of autocracies … China will defend their relationship with Russia, their position and policy in response to Ukraine.”

‘COME OUT SWINGING’

With U.S. military and political capital soaked up by the war in Ukraine, Austin will be under pressure to convince China’s rivals in Asia that they can rely on Washington.

“They say that China is this huge threat and they’re even saying it’s an acute threat. Yet it seems a major part of the attention and resources are basically going to Europe,” said Elbridge Colby, a former senior Pentagon official. “It’s not about words, it’s about walking the walk.”

Bilateral talks between the United States and China, and much of the conference, will likely focus on Taiwan.

China, which claims democratic Taiwan as its own territory, has increased military activity near the island over the past two years, responding to what it calls “collusion” between Taipei and Washington.

“The U.S. is going to come out swinging on Taiwan specifically but also China’s growing assertiveness throughout the Indo-Pacific,” said Derek Grossman, a senior defence analyst at the RAND Corporation, a think tank.

This month, Biden said the United States would get involved militarily should China attack Taiwan, although the administration has since clarified that U.S. policy on the issue has not changed and Washington does not support Taiwan’s independence.

Washington has had a long-standing policy of strategic ambiguity on whether it would defend Taiwan militarily.

The Pacific islands have also emerged as a key front in Washington’s strategic competition with China.

Biden’s special envoy is due to visit the Marshall Islands next week amid growing U.S. worries about China’s efforts to expand its influence in the region. Last week, a virtual meeting of 10 Pacific foreign ministers hosted by Chinese Foreign Minister Wang Yi in Fiji agreed to defer consideration of a Chinese proposal for a sweeping trade and security pact. read more

Also looming over the Shangri-La Dialogue is the increasing military threat posed by North Korea, which has carried out at least 18 rounds of weapons tests this year, underscoring its evolving nuclear and missile arsenals.

Officials from South Korea, the United States and Japan said on Wednesday that North Korea’s recent missile tests were “serious, unlawful” provocations. read more

Japanese Prime Minister Fumio Kishida will open the conference on Friday with a keynote speech in which he is expected to call for peaceful resolutions to disputes in the Asia-Pacific region.

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Reporting Idrees Ali and Chen Lin; writing by Joe Brock; Editing by Raju Gopalakrishnan

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Asian elephant mom carries dead calf for weeks, new eye-opening videos reveal

Asian elephants, like their African cousins, seem to mourn their dead, sometimes even carrying their lost infants in their trunks for days or weeks, new research finds. 

Whether elephants understand death in the same way humans do is unknown — and probably unknowable. But Asian elephants (Elephas maximus) are social creatures, and the new research adds to the evidence that they experience some sort of emotional response when they lose one of their own.

“Understanding elephants’ response to death might have some far reaching effects on their conservation,” study co-authors Sanjeeta Sharma Pokharel of the Smithsonian’s National Zoo and Conservation Biology Institute and Nachiketha Sharma of the  Kyoto University Institute for Advanced Study, wrote to Live Science in an email. “We have personally observed that when people witness an elephant responding to a dead kin, there will be some sense of relatedness, compassion and empathy towards the species. Therefore, anything which instantly connects people might pave the way for coexistence in elephant ranging countries.” 

Death ritual

African bush elephants (Loxodonta africana) have long been observed reacting emotionally when a herd member dies. They might approach the body and touch it with their trunks, kick at the corpse or stand nearby as if on guard. Asian elephants, however, are less well-understood. They tend to live in forested habitat, so they are harder to observe in the wild than savanna-dwelling African elephants.

Related: The longest living animals on Earth

“They can be 100 feet [30 meters] away from you, and you might not see them because the forest is so dense,” said Brian Aucone, the senior vice president for life sciences at the Denver Zoo, who was not involved in the new study. .

To get around this, Pokharel, Sharma, and their co-author Raman Sukumar, all of the Indian Institute of Science at the time, turned to YouTube, where remarkable animal videos are a staple. They searched the site for keywords related to Asian elephants and death, and uncovered 39 videos of 24 cases between 2010 and 2021 in which one or more Asian elephants were seen reacting to the loss of a herdmate. Eighty percent of the videos showed wild elephants, 16% captive elephants and 4% semi-captive elephants (typically, semi-captive elephants are animals that work in the timber industry or in tourist parks in Asia).

Some of the most striking behaviors seen in the videos occurred when a calf died. In five of the 12 videos showing a deceased calf, a female adult — likely the mother — was seen carrying the calf. Based on the state of decomposition of the corpse, it appeared that this carrying behavior went on for days or weeks.

Indian Forest Service ranger Parveen Kaswan uploaded one such video in 2019, showing an Asian elephant dragging the body of a calf across a road in what he likened to a “funeral procession” in a post on Twitter at the time.

“I think they’re holding on and trying to grasp what has happened, and there’s something happening there with their interaction with their offspring, just like it would be with us,” Aucone said of the behavior.

Other common elephant reactions seen in the videos included restlessness or alertness when near the corpse; exploratory movements such as approaching or investigating the body; or touching and smelling. Elephants communicate through scent, Aucone said, so the sniffing is not surprising. In 10 cases, the elephants tried to lift, nudge or shake the body, as if to attempt to revive their lost comrade. In 22 cases, they seemed to stand vigil over the body.

“We’ve seen some of this before ourselves,” Aucone told Live Science. When the zoo euthanizes older elephants due to illness or infirmity, the staff give herdmates a chance to say goodbye, Aucone said. The survivors often sniff the deceased elephant or lay their trunks by its mouth, a social behavior.

Animal grief

Elephants aren’t the only social creatures that react to death, especially to the death of babies. Orca mothers have been observed pushing their dead calves around, as have dolphins. In 2018, an orca female named Tahlequah off the coast of Washington held on to her lost baby for 17 days. Other female orcas were seen huddled around Tahlequah and her dead newborn in the hours after the baby’s death in what looked like a circle of grief. Ape and monkey mothers sometimes carry around dead infants for weeks or months.

In the case of the elephants, which are devoted to caring for their young, the mother-calf bond is fundamental, Pokharel, Sharma and Sukumar wrote in the study, published Wednesday (May 18) in the journal Royal Society Open Science. This is true of primates, as well, Pokharel and Sharma told Live Science.

“[T]he mother-calf/infant bonding in both elephants and primates have some striking similarities as both nurture their young until they become strong enough to forage and defend themselves,” they wrote. “Therefore, this long lasting bond between mothers and calves/infants may potentially motivate mothers to respond towards their unresponsive calves. It is very difficult to predict the exact causations and functionality behind the dead infants carrying. But, some of the YouTube videos certainly provide evidence that some species may have some sense of death awareness.”

Originally published on Live Science.



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Asian shares bounce as China moves to boost housing

FILE PHOTO – An investor stands in front of an electronic board showing stock information at a brokerage house in Shanghai, China, August 24, 2015. REUTERS/Aly Song

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  • MSCI Asia ex-Japan +1.8%, Nikkei +1.3%
  • European shares set to follow Asia’s lead
  • Equities rally after China cuts loan prime rate
  • Global equities set for 7th weekly loss

SHANGHAI, May 20 (Reuters) – Asian shares jumped on Friday after China cut a key lending benchmark to support a slowing economy, but a gauge of global equities remained set for its longest weekly losing streak on record amid investor worries about sluggish growth.

China cut its five-year loan prime rate (LPR) by 15 basis points on Friday morning, a sharper cut than had been expected, as authorities seek to cushion an economic slowdown by reviving the housing sector. The five-year rate influences the pricing of mortgages. read more

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) quickly built on early gains after the cut and was last up more than 1.8%.

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European equities were set to follow Asia’s lead, with pan-region Euro Stoxx 50 futures , German DAX futures and FTSE futures all up more than 1%.

Chinese blue-chips also rose 1.8%, boosted by foreign buying, and Hong Kong’s Hang Seng index (.HSI) jumped more than 2%, while Australian shares (.AXJO) rose 1.1%. In Tokyo, the Nikkei stock index (.N225) gained 1.3%.

“While it certainly will not suffice to reverse growth headwinds in Q2, (the cut) constitutes a move in the right direction so markets might be reacting to expectations of stronger easing going forward,” said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong.

Despite the gains in Asian shares, MSCI’s All-Country World Price Index (.MIWD00000PUS) remained headed for its seventh straight week in the red, the longest such stretch since its inception in 2001. It would also be the longest including back-tested data extending to January 1988.

Concerns over the impact of battered supply chains on inflation and growth have prompted investors to dump shares, with Cisco Systems Inc (CSCO.O) on Thursday tumbling to an 18-month low after it warned of persistent component shortages, citing the impact of China’s COVID lockdowns. read more

On Friday, China’s financial hub of Shanghai bruised residents’ hopes for a smooth end to restrictions as it announced three new COVID-19 cases outside of quarantined areas – though plans to end a prolonged city-wide lockdown on June 1 appeared to remain on track. read more

Industrial output in the city shrank more than 60% in April from a year earlier due to the impact of coronavirus restrictions. read more

“The focus of (Chinese) officials has been to come up with easing policies to mitigate the impact of COVID suppression … The problem is that such easing policies will not have any real impact so long as the COVID suppression policy is tightly enforced,” said Christopher Wood, global head of equities at Jefferies.

The gains in Asia came after a late rally on Wall Street petered out, leaving the Dow Jones Industrial Average (.DJI) down 0.75%, the S&P 500 (.SPX) 0.58% lower and the Nasdaq Composite (.IXIC) off by 0.26%.

STRONGER YUAN

In the currency market, the dollar index retreated from small earlier gains to nudge down 0.12% to 102.79, heading for its first losing week in seven.

Moves elsewhere were muted, with the dollar just on the stronger side of flat against the safe-haven yen at 127.76. The euro was barely higher at $1.0586, erasing earlier losses.

China’s onshore yuan logged bigger moves, turning around from a 0.32% dip to strengthen to a two-week high of 6.6699 per dollar. The more freely traded offshore yuan also hit a two-week high at 6.6855 per dollar.

While longer-dated U.S. government bond yields ticked higher following China’s LPR cut, mirroring gains in equities, they later moderated.

The U.S. 10-year yield was last at 2.855%, flat from Thursday’s close, and down from a top of 2.922% earlier on Friday. The two-year yield climbed to 2.6327% compared with a U.S. close of 2.611%.

Crude prices pared losses after China’s LPR announcement but later extended falls on worries a demand recovery could falter.

Brent crude was last down 0.53% at $111.45 per barrel and U.S. West Texas Intermediate crude was 1.21% lower at $110.85 per barrel.

Gold bounced higher and was set for its first weekly gain since mid-April, helped by the weaker dollar. Spot gold , rose 0.26% to $1,846.49 per ounce.

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Reporting by Andrew Galbraith; Editing by Lincoln Feast and Sam Holmes

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Asian markets tumble after a tough day on Wall Street

Hong Kong’s Hang Seng tumbled 2.8%, leading losses in the region. Japan’s Nikkei also dropped more than 2%. Korea’s Kospi was down 1.6%. China’s Shanghai Composite Index shed 1%.

The US stock market had a steep sell-off on Wednesday, as investors grow increasingly worried about rising inflation and a possible economic recession. The Dow Jones Industrial Average lost 3.6%, its worst trading day since June 2020. The S&P 500 sank 4%, and the Nasdaq Composite skidded 4.7%.

Stock futures continued their downward trend on Thursday morning in Asia. The Dow futures were down 0.4%. The S&P 500 futures and Nasdaq futures were down 0.5% and 0.8% respectively.

Elevated inflation readings out of UK and Canada were “a reminder for markets that the fight against inflation among central banks globally will be a challenging process,” said Jun Rong Yeap, a market strategist for IG Group, on Thursday.

“An uptick in Covid-19 cases in China seems to dampen earlier hopes of a quick easing in overall virus restrictions, potentially contributing to the market risk aversion,” he added.

The Chinese economy is likely to contract in the second quarter, as Covid lockdowns wreak havoc on activity. Consumer spending and factory output both shrank sharply last month, while unemployment surged to the highest level since the initial coronavirus outbreak in early 2020.
A top official in China tried once again on Thursday to lift the spirits of its huge tech industry. But markets were still deeply concerned about the growth prospects of the country’s big internet companies.

Those concerns were reinforced Wednesday when Tencent reported zero revenue growth in the first quarter, a worse outcome than expected.

“Despite recent assurances laid out by China authorities, the relief in China tech has proved to be short-lived thus far, as market participants await for more concrete policy follow-through in order to restore longer-term confidence,” Yeap said.

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Asian shares track Wall Street’s inflation-fueled retreat

TOKYO (AP) — Shares dropped sharply in Asia on Thursday after a broad retreat on Wall Street triggered by dismal results from major retailer Target that renewed worries over the impact of high inflation.

Hong Kong’s Hang Seng led the declines, dropping 3.1%, while Tokyo’s Nikkei 225 index was 2.7% lower.

The Dow Jones Industrial Average sank more than 1,100 points, or 3.6%, and the S&P 500 had its biggest drop in nearly two years Wednesday, shedding 4%. That was its steepest decline since June 2020. The tech-heavy Nasdaq fell 4.7%.

The benchmark index is now down more than 18% from the record high it reached at the beginning of the year. That’s shy of the 20% decline that’s considered a bear market.

The Federal Reserve is trying to temper the impact from the highest inflation in four decades by raising interest rates. Many other central banks are on a similar track. But the Bank of Japan has stuck to its low interest rate policy and the gap between those benchmark rates of the world’s largest and third-largest economies has pushed the dollar’s value up against the Japanese yen.

Japan recorded a trade deficit in April as imports ballooned 28% as energy prices soared amid the war in Ukraine and the yen weakened against the dollar.

Japan’s exports grew to 8.076 trillion yen ($63 billion) last month, up 12.5% from the previous year, according to Ministry of Finance data released Thursday. Imports totaled 8.915 trillion yen ($70 billion) in April, up from 6.953 trillion yen in April 2021, and the highest since comparable numbers began to be taken in 1979.

The Nikkei 225 in Tokyo lost 2.7% to 26,196.50 and the Hang Seng in Hong Kong dropped 3.1% to 20,007.39. In South Korea, the Kospi shed 1.7% to 2,582.35, while Australia’s S&P/ASX 200 gave up 1.6% to 7,069.90.

The Shanghai Composite index fell 1.1% to 3.052.34.

On Wednesday, the S&P 500 fell 165.17 points to 3,923.68, while the Dow slid 1,164.52 points to 31,490.07. The Nasdaq slid 566.37 points to 11,418.15.

Smaller company stocks also fell sharply. The Russell 2000 fell 65.45 points, or 3.6%, to 1,774.85.

Target lost a quarter of its value after reporting earnings that fell far short of analysts’ forecasts. Inflation, especially for shipping costs, dragged its operating margin for the first quarter to 5.3%. It had been expecting 8% or higher.

Target warned that its costs for freight this year would be $1 billion higher than it estimated just three months ago. And Target and Walmart each provided anecdotal evidence that inflation is weighing on consumers, saying they held back on purchasing big-ticket items and changed from national brands to less expensive store brands.

The report comes a day after Walmart said its profit took a hit from higher costs. The nation’s largest retailer fell 6.8%, adding to its losses from Tuesday.

The weak reports stoked concerns that persistently rising inflation is putting a tighter squeeze on a wide range of businesses and could cut deeper into their profits.

Other big retailers also racked up hefty losses. Dollar Tree fell 14.4% and Dollar General slid 11.1%. Best Buy fell 10.5% and Amazon fell 7.2%.

Technology stocks, which led the market rally a day earlier, were the biggest drag on the S&P 500. Apple lost 5.6%, its biggest decline since September 2020.

Bond yields fell as investors shifted money into lower-risk investments. The yield on the 10-year Treasury fell to 2.88% from 2.97% late Tuesday.

The disappointing report from Target comes a day after the market cheered an encouraging report from the Commerce Department that showed retail sales rose in April, driven by higher sales of cars, electronics, and more spending at restaurants.

Investors worry the Fed could trigger a recession if it raises interest rates too high or too quickly. Worries persist about global growth as Russia’s invasion of Ukraine puts even more pressure on prices for oil and food while lockdowns in China to stem COVID-19 cases worsens supply chain problems.

Such factors led the United Nations to cut its forecast for global economic growth this year from 4% to 3.1%.

In other trading, benchmark U.S. crude oil rose 41 cents to $110.00 per barrel in electronic trading on the New York Mercantile Exchange. It dropped $2.81 to $109.59 on Wednesday.

Brent crude, the basis for pricing for international trading, climbed 92 cents to $110.03 per barrel.

The dollar rose to 128.46 Japanese yen from 128.20 yen late Wednesday. The euro strengthened to $1.0487 from $1.0464.

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AP Business writers Damian J. Troise and Alex Veiga contributed.

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