Tag Archives: NIKKEI 225

Business

Indexes trade higher as investors react to Fed minutes

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SINGAPORE — Asia-Pacific markets were mostly higher on Thursday as investors watch for market reaction to the latest Fed minutes.

In South Korea, the Kospi advanced 1.83% after closing more than 2% lower on Wednesday, and the Kosdaq climbed around 1.43%.

Samsung Electronics shares rose 3.19% after the company released earnings guidance for the second quarter of 2022. Operating profit likely rose to 14.1 trillion won ($10.8 billion) in the April to June quarter, up from 12.57 trillion won a year ago.

Japan’s Nikkei 225 gained 1.44%, and the Topix index rose 1.39%.

The S&P/ASX 200 was up 0.45%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.88% higher.

Mainland China markets were higher. The Shanghai Composite rose 0.51%, and the Shenzhen Component climbed around 1%. Both indexes fell on Wednesday as Covid concerns came back into focus.

Beijing city said Covid vaccinations would be required to enter sports centers, entertainment venues and more starting next week.

Hong Kong’s Hang Seng index was one of the few losers in the region, slipping 0.41%.

It’s really just clear they’re on this rate hiking path purely until inflation cools off.

Anthony Raza

Head of multi-asset strategy, UOB Asset Management

Federal Reserve officials recognized that a “more restrictive stance” in policy could be suitable if inflation doesn’t ease, even if it slows the economy, the meeting minutes said.

“Participants recognized that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2 percent as critical to achieving maximum employment on a sustained basis,” the document said.

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Fed officials also said a hike of 50 or 75 basis points would be likely at the July meeting.

The Federal Open Market Committee is concerned about inflation expectations becoming unanchored, a ANZ research note said on Thursday.

“The Fed is understandably eager to reinforce to the public that it has got this, and hiking 75bp [and signaling many more hikes to come] certainly reinforces the message,” the note said.

Anthony Raza of UOB Asset Management told CNBC’s “Squawk Box Asia” on Thursday that the Fed’s “hands are tied at this point.”

“It’s really just clear they’re on this rate hiking path purely until inflation cools off,” said Raza, who is head of multi-asset strategy. “I think that’s going to be a slow process,” he added, estimating that it will take around a year.

U.S. markets gained slightly on Wednesday stateside.

The Dow Jones Industrial Average rose 69.86 points, or 0.23%, to 31,037.68. The S&P 500 advanced 0.36% to 3,845.08, and the Nasdaq Composite traded 0.35% higher to close at 11,361.85.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.870.

The Japanese yen traded at 135.73 per dollar, and the Australian dollar was at $0.6817.

Oil futures recovered earlier losses to rise in Asia trade after tumbling on Tuesday and Wednesday.

U.S. West Texas Intermediate futures gained 0.52% to $99.04 per barrel, and Brent crude futures climbed 0.54% to $101.23 per barrel.

The U.S. crude benchmark settled 1% lower on Wednesday after an 8% tumble on Tuesday. The international benchmark settled 2% down at $100.69 after falling below the $100 level during Wednesday’s session.

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Business

Asia-Pacific markets are mixed as investors search for direction

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SINGAPORE — Australian stocks rose more than 1% while Hong Kong and South Korean markets were lower on Monday ahead of Australia and Malaysia central bank decisions this week.

The S&P/ASX 200 advanced 1.26%, with banking and retail stocks in the green.

Japan and mainland China markets were also higher.

The Nikkei 225 in Japan pared earlier gains to trade 0.54% higher, while the Topix index climbed around 1%.

In China, the Shanghai Composite gained 0.14% and the Shenzhen Component rose 0.9%.

We probably will be bumping along the bottom, maybe a bit more downside from here.

Dan Fineman

Co-head of Asia-Pacific equity strategy, Credit Suisse

Hong Kong and South Korea stocks were down.

The Hang Seng index was closed on Friday and slipped as much as 1.8% in early trade on Monday. It was last down 0.59%.

Exchange-traded funds will be included in the stock connect scheme that links Hong Kong and mainland China from Monday.

South Korea’s Kospi initially struggled for direction and was last down 0.91%, while the Kosdaq shed 1.92%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.13% lower.

In Southeast Asia, Indonesia’s Jakarta Composite dropped 2.54%.

Dan Fineman, co-head of Asia-Pacific equity strategy at Credit Suisse, said markets appear to have adequately priced in the amount of Fed hikes that are to come, but that the “very high risk of recession” means markets are unlikely to rally.

“I think that the worst is behind us. We probably will be bumping along the bottom, maybe a bit more downside from here, but I think the difficulties of the first half will not be repeated on the same scale in the second half,” he told CNBC’s “Street Signs Asia” on Monday.

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Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 105.143.

“The possibility of 75bp hikes at its June and July meetings is keeping the USD strong in the near term, but we maintain our core view that dollar strength will wane later in the year,” Richard Yetsenga, chief economist at ANZ, wrote in a Monday note.

The Japanese yen traded at 135.14 per dollar, strengthening from levels as weak as 137 per dollar last week. The Australian dollar was at $0.6806 after recovering from below $0.679 recently.

Oil futures fell in Asia’s afternoon trade. U.S. crude futures shed 0.22% to $108.19 per barrel, while Brent crude futures slipped 0.21% to $111.39.

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Business

Recession, currencies, oil, Russian debt

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SINGAPORE — Shares in the Asia-Pacific traded higher on Monday as investors assess inflation and recession fears.

Hong Kong’s Hang Seng index was up 2.13%, with the Hang Seng Tech index up 3.46%. Alibaba’s shares in the Chinese city rose 4.13% while Meituan was up 4.09%.

Mainland Chinese markets also gained. The Shanghai Composite climbed 0.56%, and the Shenzhen Component rose 0.766%.

Japan’s Nikkei 225 hovered around 1%, while the Topix rose 0.78%. In Australia, the S&P/ASX 200 advanced 1.69%.

The Kospi in South Korea gained 1.73%, and the Kosdaq was 2.78% higher.

MSCI’s broadest index of Asia-Pacific shares rose 1.51%.

Russia defaulted on foreign-currency sovereign debt for the first time in more than 100 years, Bloomberg reported. The country’s central bank foreign reserves remain frozen.

In company news, Trip.com is set to report its first-quarter financial results on Monday in the U.S. after the market close.

Later this week, China and Japan will be reporting Purchasing Managers’ Index data, while Hong Kong will commemorate the 25th anniversary of its handover. China’s President Xi Jinping is expected to visit Hong Kong for the occasion, state media Xinhua reported over the weekend.

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On Friday in the U.S., stocks rallied to snap previous losing streaks.

“It just highlights the fact that markets are going to be very volatile until we do pass that peak in inflation and the outlook for central banks being as hawkish as they are,” said Kerry Craig, global market strategist at JPMorgan Asset Management.

He said markets tend to be choppy as many central banks in developed economies enter a new cycle for rate hikes.

“It’s when you have clarity on that path forward, then you start to refocus on the fundamentals,” he told CNBC’s “Squawk Box Asia” on Monday.

Futures fell slightly on Sunday night following last week’s comeback.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.010.

The Japanese yen traded at 134.61 per dollar, strengthening from levels above 136 against the greenback last week. The Australian dollar was at $0.6920.

Oil futures fell in Asia in early trade on Monday. U.S. crude dropped 0.33% to $107.27 per barrel, while international benchmark Brent crude slid 0.11% to $113 per barrel.

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Business

Wall Street, Bank of Japan, currencies, oil

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The rebound in U.S. equities overnight … will be taken with a pinch of salt as elevated inflation and risks to growth persist.

Lavanya Venkateswaran

economist, Mizuho Bank

The S&P/ASX 200 in Australia declined 0.18%. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.34%.

Major indexes in the U.S. jumped on Tuesday after weeks of declines. The Dow Jones Industrial Average gained 641.47 points or 2.15% to 30,530.25, while the S&P 500 rose 2.45% to 3,764.79. The tech-focused Nasdaq advanced 2.51% to 11,069.302.

“The rebound in U.S. equities overnight … will be taken with a pinch of salt as elevated inflation and risks to growth persist,” Lavanya Venkateswaran, an economist at Mizuho Bank, said in a note.

“If you are a global investor and you’re seeking a diversification of risk in your portfolio, what’s very interesting is that the dependency of, let’s say the Chinese equity market, on what’s happening in the U.S. is becoming less and less,” said Jim McCafferty, joint-head of APAC equity research at Nomura.

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Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded at 104.590.

The Australian dollar was at $0.6926, after falling from levels above $0.702 late last week.

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Business

Data show Chinese factory activity contracted again in May

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SINGAPORE — Shares in Asia-Pacific were mixed in Tuesday trade as investors watched for market reaction to the release of official Chinese factory activity data for May. Oil prices rose after EU leaders agreed to ban 90% of Russian crude.

The Shanghai Composite in mainland China was close to flat while the Shenzhen Component dipped 0.196%. Hong Kong’s Hang Seng index traded 0.18% higher.

China’s official manufacturing Purchasing Managers’ Index for May came in at 49.6, an improvement over April’s reading of 47.4.

The May reading was above the 48.6 level expected from a Reuters poll but still below the 50-point mark that separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.

The Nikkei 225 in Japan hovered close to the flatline while the Topix index declined 0.09%. Over in South Korea, the Kospi climbed 0.1%.

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Australian stocks were lower as the S&P/ASX 200 fell 0.23%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded little changed.

Markets in the U.S. were closed on Monday for a holiday.

Oil prices rise after EU agrees on Russia sanctions

Oil prices traded higher in the morning of Asia hours, after European Union leaders agreed to ban most Russian oil for its invasion of Ukraine by the end of 2022.

The agreement would “effectively cut around 90% of oil imports from Russia to the EU by the end of the year,” European Commission President Ursula von der Leyen said in a tweet.

International benchmark Brent crude futures gained 0.62% to $122.43 per barrel. U.S. crude futures jumped 2.41% to $117.84 per barrel.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.616 — still off levels above 102 seen last week.

The Japanese yen traded at 128.08 per dollar following yesterday’s weakening from levels below 127.2 against the greenback. The Australian dollar was at $0.7184, against an earlier high of $0.7203.

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Business

Hong Kong’s Hang Seng leads gains in Asia; Alibaba shares soar

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SINGAPORE — Shares in Asia-Pacific rose in Friday morning trade, with investors monitoring shares of Alibaba in Hong Kong after the Chinese tech giant posted better-than-expected fourth-quarter earnings on Thursday.

In Friday morning trade, shares of Alibaba in Hong Kong surged 12.08% after it reported Thursday fourth-quarter earnings of 7.95 yuan ($1.18) per share, excluding items, on revenues of 204.05 billion yuan ($30.28 billion).

That was higher than analyst expectations for earnings of 7.31 yuan a share on CNY199.25 billion in revenue, according to StreetAccount.

Other Chinese tech stocks in the city also saw big gains, with Tencent rising 3.71% while Netease surged 5.39%. The broader Hang Seng index in Hong Kong climbed 2.78%.

Mainland Chinese stocks also traded higher, with the Shanghai Composite up about 0.5% while the Shenzhen Component advanced 0.845%.

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The Nikkei 225 in Japan gained 0.88% as shares of conglomerate SoftBank Group surged 4.47%. The Topix index advanced 0.62%. South Korea’s Kospi also jumped 1.15%.

In Australia, the S&P/ASX 200 climbed 1.07%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.57% higher.

Overnight on Wall Street, the S&P 500 jumped 1.99% to 4,057.84. The Dow Jones Industrial Average surged 516.91 points, or 1.61%, to 32,637.19. The tech-heavy Nasdaq Composite outperformed as it rose 2.68% to 11,740.65.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.691 — off levels above 102.2 seen earlier in the week.

The Japanese yen traded at 127.01 per dollar, still stronger than levels above 127.8 seen against the greenback earlier this week. The Australian dollar changed hands at $0.7103, holding above the $0.705 level that it momentarily fell below earlier in the week.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures rising around 0.2% to $117.61 per barrel. U.S. crude futures hovered above the flatline, trading at $114.14 per barrel.

— CNBC’s Samantha Subin contributed to this report.

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Business

China economic data, Covid, inflation

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SINGAPORE — Shares in the Asia Pacific rose on Monday as investors watched for a slew of Chinese economic data.

Japan’s Nikkei 225 gained 1.54%, while the Topix advanced 0.93% in early trading.

The Kospi in South Korea rose 0.46%, and the Kosdaq was 1.43% higher.

In Australia, the S&P/ASX 200 climbed 0.73%.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.33%

Stock indexes in Asia and around the world were volatile last week over inflation concerns. Tech stocks and cryptocurrencies were hit hard, though bitcoin has since pared some losses. U.S. stocks rebounded on Friday, but still posted losses for the week.

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China will report data on April’s industrial production, retail sales, fixed asset investment and unemployment on Monday — investors are looking to those numbers for clues on the impact of the country’s zero-Covid policy on the economy.

“While Shanghai provided some positivity for markets, it is not clear when China will pivot to living with Covid,” Tapas Strickland, director of economics at National Australia Bank, said in a note. NAB expects economic data for April to slow sharply.

Shanghai authorities said on Sunday that some businesses will begin to resume in-store operations, Reuters reported.

Markets in Singapore, Malaysia, Indonesia and Thailand are closed for a holiday on Monday.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.553, slightly higher than last week’s levels.

The Japanese yen traded at 129.45 per dollar, still stronger than the 130 levels seen last week. The Australian dollar was at $0.6943.

Oil futures rose early in Asia trade. U.S. crude futures climbed 0.23% to $110.74 per barrel, while international benchmark Brent crude futures were up 0.8% at $111.77 per barrel.

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Business

Asia-Pacific stocks mixed; China keeps benchmark lending rate unchanged

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SINGAPORE — Shares in Asia-Pacific were mixed in Wednesday trade as China defied expectations by keeping its benchmark lending rate unchanged.

The Shanghai composite in mainland China fell 0.21% while the Shenzhen component shed 0.648%. Hong Kong’s Hang Seng index, which fell more than 2% on Tuesday, gained 0.82%.

China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%. A majority of the traders and analysts surveyed in a snap Reuters poll expected a cut in the loan prime rate this month.

Investors have been watching for signs of policy support from Chinese authorities as the mainland continues to grapple with its worst Covid outbreak since the initial shock of the pandemic in 2020.

“I really don’t expect, you know, they’re very keen to put on the rate cuts … in the near term,” said Eva Lee, head of greater China equities at UBS Global Wealth Management’s chief investment office.

China’s second-quarter growth rate is set to be weak, but authorities are likely to make moves toward ensuring sufficient liquidity in the system rather than flooding it, Lee told CNBC’s “Street Signs Asia” on Wednesday.

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The Nikkei 225 in Japan climbed 0.78% as shares of Fast Retailing jumped more than 2%. The Topix index advanced 0.88%.

Australian stocks also traded in positive territory as the S&P/ASX 200 gained 0.27%. South Korea’s Kospi sat below the flatline.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.6% higher.

Yen recovers partially against dollar

The Japanese yen traded at 128.57 per dollar, stronger as compared to an earlier low of 129.40 seen against the greenback.

The moves came after the Bank of Japan on Wednesday said it would offer to buy an unlimited amount of 10-year Japanese government bonds at 0.25%. The Japanese yen has been weakening for weeks against the dollar amid expectations the Bank of Japan will lag the U.S. Federal Reserve in normalizing monetary policy.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 100.699 after earlier touching a high above 101.

The Australian dollar changed hands at $0.7411, still lower as compared to levels above $0.745 seen last week.

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures climbing 1.02% to $108.34 per barrel. U.S. crude futures gained 0.93% to $103.51 per barrel.

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Business

Data shows China producer inflation surging in March

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SINGAPORE — Chinese stocks led losses in Asia-Pacific markets on Monday morning as investors reacted to China’s inflation data for March.

The Shanghai composite was down about 2% while the Shenzhen component tumbled around 3%.

Hong Kong’s Hang Seng index dropped 2.4%. Hong Kong-listed shares of Chinese electric vehicle maker Nio plunged more than 8% after the firm announced a suspension in production due to disruptions at its supply chain partners as a result of Covid.

The more notable fact is the big gap between [China’s consumer price index] and [producer price index], and that indicates that pricing power amongst most companies in China is weak and they’re taking a hit on margins.

Ramiz Chelat

Portfolio manager, Vontobel Asset Management

China’s producer inflation for March was higher than expected. The producer price index surged 8.3% as compared with a year ago, official data showed Monday, above expectations for a 7.9% increase in a Reuters poll.

Chinese consumer inflation also rose more than expected in March, with the consumer price index climbing 1.5% year-on-year. That was above expectations in a Reuters poll for a 1.2% increase.

The data release comes as mainland China is fighting to control its worst wave of Covid since the beginning of the pandemic in early 2020.

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“I think the more notable fact is the big gap between CPI and PPI, and that indicates that pricing power amongst most companies in China is weak and they’re taking a hit on margins,” Ramiz Chelat, portfolio manager at Vontobel Asset Management, told CNBC’s “Street Signs Asia” on Monday.

“Given the infectiousness of omicron, we could see more localized lockdowns being a recurring theme,” he said. “We think you need to be very selective in China, look for companies that can deliver in a growth-challenged environment.”

Elsewhere, the Nikkei 225 in Japan slipped 0.71% while the Topix index shed 0.61%. South Korea’s Kospi dipped 0.55%.

Australia’s S&P/ASX 200 bucked the overall trend regionally as it climbed slightly.

Over in Southeast Asia, shares of tech firm GoTo soared more than 15% from their issue price as they made their debut in Indonesia. The broader Jakarta Composite also gained 1.15%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.36% lower.

Oil falls more than 2%

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 2.34% to $100.38 per barrel. U.S. crude futures shed 2.4% to $95.90 per barrel.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.934 after recently crossing the 100 level.

The Japanese yen traded at 124.93 per dollar, weaker as compared to levels below 123.2 seen against the greenback last week. The Australian dollar was at $0.7422 following last week’s drop from above $0.763.

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Business

Asia-Pacific stocks mixed; mainland China markets closed

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SINGAPORE — Shares in Asia-Pacific struggled for direction on Monday, as investors continue to monitor the U.S. Treasury yield curve.

The Nikkei 225 in Japan slipped fractionally as shares of Tokyo Electron dropped around 2%. The Topix index climbed about 0.1%.

South Korea’s Kospi dipped 0.49%.Elsewhere in Australia, the S&P/ASX 200 rose 0.43%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.08% lower.

Markets in mainland China are closed on Monday and Tuesday this week for holidays.

A closely watched part of U.S. Treasury yields inverted on Friday as short-term rates jumped following the release of jobs data stateside, raising concerns over a potential recession on the horizon.

The benchmark 10-year Treasury yield last sat at 2.3895%, while the rate on the 2-year Treasury note was at 2.4625%. Yields move inversely to prices, with 1 basis point equal to 0.01%.

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Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.627, as compared to levels below 98 seen in late March.

The Japanese yen traded at 122.52 per dollar, stronger than levels above 124 seen against the greenback last week. The Australian dollar was at $0.7485, having traded in a range between $0.747 and $0.753 for much of last week.

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.88% to $103.47 per barrel. U.S. crude futures slipped 0.93% to $98.35 per barrel.

— CNBC’s Patti Domm contributed to this report.

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