Business

Asia stocks fall as Wall Street rally stalls

Published

5 months ago

December 21, 2023

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Asia stocks fall as Wall Street rally stalls

Asian shares fell on Thursday after Wall Street snapped a long winning streak, while Treasury yields were near five-month lows on hopes Britain’s notably soft inflation reading would be echoed in looming US price data.

The equities rally, which had been driven by falling interest rates and the Federal Reserve’s dovish turn, stalled on Thursday even after US economic data that beat expectations initially turned the major indexes green. A far steeper-than-expected decline in British inflation also took markets by surprise.

“Three US benchmark averages sharply retreated in the late session after hitting their respective intraday highs, snapping a more-than-one-week winning streak. This could be due to an overbought market as rate cuts optimism ran out of steam,” said Tina Teng, market analyst at CMC Markets.

“Global government bond yields accelerated falling due to risk-off sentiment.”

Investors on Thursday will be monitoring the Indonesian central bank’s latest policy decision, consumer price inflation and trade figures from Hong Kong, and producer price inflation data from South Korea.

Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6%, after US stocks tumbled to close sharply lower in the previous session. The index is up 1.7% so far this month.

US stock futures, the S&P 500 e-minis, were up 0.17%.

Australian shares were down 0.4%, while Japan’s Nikkei stock index slid 1.49%.

China’s blue-chip CSI300 index remained flat in early trade. It is on track for a sixth straight weekly loss, which could be its worst weekly performance in 12 years and a record fifth consecutive monthly loss.

Hong Kong’s Hang Seng index opened down 0.86%.

On Wednesday, an abrupt mid-afternoon nosedive ended Wall Street’s impressive rally.

All three major US stock indexes, which were at or near record highs this week, veered lower late in the session to end 1.3% to 1.5% below Tuesday’s close. The Dow Jones Industrial Average fell 1.27%, the S&P 500 lost 1.47% and the Nasdaq Composite dropped 1.5%.

In US Treasuries, the yield on benchmark 10-year Treasury notes reached 3.8603% compared with its US close of 3.877% on Wednesday when it fell to an almost five-month month low as government bond yields fell globally after the British inflation data.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 4.3503% compared with a US close of 4.369%.

In currencies, the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was down at 102.38. The greenback on Wednesday strengthened against sterling after the British inflation data fuelled speculation of rate cuts by the Bank of England.

Sterling was last trading at $1.2644, up 0.06% on the day, while the euro was up 0.1% at $1.0949.

In commodities, global oil benchmark Brent hovered above $80 a barrel amid jitters over global trade disruptions and geopolitical tensions in the Middle East following attacks on ships in the Red Sea by Yemen’s Iran-aligned Houthi forces.

Brent crude was last trading at $79.70 per barrel and US crude dipped 0.81% to $73.62 a barrel.

Gold was slightly higher. Spot gold was traded at $2033.2513 per ounce.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

2 days ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

2 days ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

2 days ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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