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Zawya
27-06-2025
- Business
- Zawya
Shares rally but dollar weakens with Fed independence seen under threat
SINGAPORE - Asia shares hit their highest level in more than three years on Friday as they tracked a Wall Street rally, though the dollar struggled on concerns about the Federal Reserve's independence and expectations for early rate cuts. Stock indexes worldwide look set to end the week on a positive note, with worries about tensions in the Middle East and uncertainty over tariffs and trade deals on the backburner for now. MSCI's broadest index of Asia-Pacific shares outside Japan touched its strongest level since November 2021 early in the session. It last traded 0.2% higher and is set to clock a 3% gain for the week. Japan's Nikkei jumped 1.5% and surpassed the 40,000 mark for the first time in five months. Reasons for the upbeat mood included news that Washington has reached an agreement with Beijing on how to expedite rare earth shipments to the United States. U.S. Treasury Secretary Scott Bessent also said on Thursday that he has asked Republicans in Congress to scrap the Section 899 retaliatory tax proposal from their tax and spending bill after Washington reached an agreement with Group of Seven industrial countries. "That was something that had been making some investors, especially foreign investors, nervous when that provision was passed by the House. So if that provision gets removed, then that allays one of the concerns from foreign investors," said Khoon Goh, head of Asia research at ANZ. "The cumuluation of these various... positive developments all helped to contribute to the buoyant market mood we're seeing." European futures also gained, with EUROSTOXX 50 futures and DAX futures both up 0.6%, while FTSE futures advanced 0.16%. U.S. stock futures were little changed, though Wall Street had on Thursday closed near record highs, further supported by expectations of imminent Fed rate cuts. FED CUTS COMING Much of the focus for markets over the past two sessions has been on the prospect of an early change of guard at the Fed, after the Wall Street Journal reported that U.S. President Donald Trump has toyed with the idea of selecting and announcing Fed Chair Jerome Powell's replacement by September or October. That knocked an already battered dollar even lower as traders fretted about an erosion of Fed independence and as they moved to price in more U.S. rate cuts this year. The dollar languished near a 3-1/2-year low on Friday and was headed for a 1.4% weekly loss, its largest decline in over a month. For the year, the greenback is already down more than 10% and if it stays that way in the next few days, that will mark its biggest first half-of-a-year fall since the start of the era of free-floating currencies in the early 1970s. Against a weaker dollar, the euro was perched near its highest in over three years at $1.1688. Sterling rose 0.03% to $1.3730. "Trump's desire to 'shadow' the Fed using a designated replacement for Chair Jay Powell isn't a good way to promote the perceptions of integrity and autonomy in U.S. policymaking and, by extension, that of the reserve currency status of the U.S. dollar," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Adding to the Fed cut bets has been a raft of weaker-than-expected U.S. economic data, with attention now shifting to Friday's release of the core PCE price index, the U.S. central bank's preferred measure of inflation. U.S. Treasury yields were steady in Asia after falling the previous session, with the two-year yield at 3.7418% and the benchmark 10-year yield last at 4.2554%. In commodities, oil prices were set for a weekly decline with the Iran-Israel ceasefire holding and easing concerns over Middle East supply risks. Brent crude futures were up 0.41% at $68.01 a barrel while U.S. crude rose 0.46% to $65.53 per barrel on Friday, but both were headed for a fall of more than 10% for the week. Spot gold fell 0.23% to $3,320.25 an ounce.
Malay Mail
27-06-2025
- Business
- Malay Mail
Stocks climb on trade hopes, but dollar sinks as Fed independence fears grow
SINGAPORE, June 27 — Asia shares hit their highest level in more than three years on Friday as they tracked a Wall Street rally, though the dollar struggled on concerns about the Federal Reserve's independence and expectations for early rate cuts. Stock indexes worldwide look set to end the week on a positive note, with worries about tensions in the Middle East and uncertainty over tariffs and trade deals on the backburner for now. MSCI's broadest index of Asia-Pacific shares outside Japan touched its strongest level since November 2021 early in the session. It last traded 0.2 per cent higher and is set to clock a 3 per cent gain for the week. Japan's Nikkei jumped 1.5 per cent and surpassed the 40,000 mark for the first time in five months. Reasons for the upbeat mood included news that Washington has reached an agreement with Beijing on how to expedite rare earth shipments to the United States. US Treasury Secretary Scott Bessent also said on Thursday that he has asked Republicans in Congress to scrap the Section 899 retaliatory tax proposal from their tax and spending bill after Washington reached an agreement with Group of Seven industrial countries. 'That was something that had been making some investors, especially foreign investors, nervous when that provision was passed by the House. So if that provision gets removed, then that allays one of the concerns from foreign investors,' said Khoon Goh, head of Asia research at ANZ. 'The cumuluation of these various... positive developments all helped to contribute to the buoyant market mood we're seeing.' European futures also gained, with EUROSTOXX 50 futures and DAX futures both up 0.6 per cent, while FTSE futures advanced 0.16 per cent. US stock futures were little changed, though Wall Street had on Thursday closed near record highs, further supported by expectations of imminent Fed rate cuts. Fed cuts coming Much of the focus for markets over the past two sessions has been on the prospect of an early change of guard at the Fed, after the Wall Street Journal reported that US President Donald Trump has toyed with the idea of selecting and announcing Fed Chair Jerome Powell's replacement by September or October. That knocked an already battered dollar even lower as traders fretted about an erosion of Fed independence and as they moved to price in more US rate cuts this year. The dollar languished near a 3-1/2-year low on Friday and was headed for a 1.4 per cent weekly loss, its largest decline in over a month. For the year, the greenback is already down more than 10 per cent and if it stays that way in the next few days, that will mark its biggest first half-of-a-year fall since the start of the era of free-floating currencies in the early 1970s. Against a weaker dollar, the euro was perched near its highest in over three years at US$1.1688 (RM4.94). Sterling rose 0.03 per cent to US$1.3730. 'Trump's desire to 'shadow' the Fed using a designated replacement for Chair Jay Powell isn't a good way to promote the perceptions of integrity and autonomy in US policymaking and, by extension, that of the reserve currency status of the US dollar,' said Thierry Wizman, global FX and rates strategist at Macquarie Group. Adding to the Fed cut bets has been a raft of weaker-than-expected US economic data, with attention now shifting to Friday's release of the core PCE price index, the US central bank's preferred measure of inflation. US Treasury yields were steady in Asia after falling the previous session, with the two-year yield at 3.7418 per cent and the benchmark 10-year yield last at 4.2554 per cent. In commodities, oil prices were set for a weekly decline with the Iran-Israel ceasefire holding and easing concerns over Middle East supply risks. Brent crude futures were up 0.41 per cent at US$68.01 a barrel while US crude rose 0.46 per cent to US$65.53 per barrel on Friday, but both were headed for a fall of more than 10 per cent for the week. — Reuters
Reuters
27-06-2025
- Business
- Reuters
Shares rally but dollar weakens with Fed independence seen under threat
SINGAPORE, June 27 (Reuters) - Asia shares hit their highest level in more than three years on Friday as they tracked a Wall Street rally, though the dollar struggled on concerns about the Federal Reserve's independence and expectations for early rate cuts. Stock indexes worldwide look set to end the week on a positive note, with worries about tensions in the Middle East and uncertainty over tariffs and trade deals on the backburner for now. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab touched its strongest level since November 2021 early in the session. It last traded 0.2% higher and is set to clock a 3% gain for the week. Japan's Nikkei (.N225), opens new tab jumped 1.5% and surpassed the 40,000 mark for the first time in five months. Reasons for the upbeat mood included news that Washington has reached an agreement with Beijing on how to expedite rare earth shipments to the United States. U.S. Treasury Secretary Scott Bessent also said on Thursday that he has asked Republicans in Congress to scrap the Section 899 retaliatory tax proposal from their tax and spending bill after Washington reached an agreement with Group of Seven industrial countries. "That was something that had been making some investors, especially foreign investors, nervous when that provision was passed by the House. So if that provision gets removed, then that allays one of the concerns from foreign investors," said Khoon Goh, head of Asia research at ANZ. "The cumuluation of these various... positive developments all helped to contribute to the buoyant market mood we're seeing." European futures also gained, with EUROSTOXX 50 futures and DAX futures both up 0.6%, while FTSE futures advanced 0.16%. U.S. stock futures were little changed, though Wall Street had on Thursday closed near record highs, further supported by expectations of imminent Fed rate cuts. Much of the focus for markets over the past two sessions has been on the prospect of an early change of guard at the Fed, after the Wall Street Journal reported that U.S. President Donald Trump has toyed with the idea of selecting and announcing Fed Chair Jerome Powell's replacement by September or October. That knocked an already battered dollar even lower as traders fretted about an erosion of Fed independence and as they moved to price in more U.S. rate cuts this year. The dollar languished near a 3-1/2-year low on Friday and was headed for a 1.4% weekly loss, its largest decline in over a month. For the year, the greenback is already down more than 10% and if it stays that way in the next few days, that will mark its biggest first half-of-a-year fall since the start of the era of free-floating currencies in the early 1970s. Against a weaker dollar, the euro was perched near its highest in over three years at $1.1688. Sterling rose 0.03% to $1.3730. "Trump's desire to 'shadow' the Fed using a designated replacement for Chair Jay Powell isn't a good way to promote the perceptions of integrity and autonomy in U.S. policymaking and, by extension, that of the reserve currency status of the U.S. dollar," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Adding to the Fed cut bets has been a raft of weaker-than-expected U.S. economic data, with attention now shifting to Friday's release of the core PCE price index, the U.S. central bank's preferred measure of inflation. U.S. Treasury yields were steady in Asia after falling the previous session, with the two-year yield at 3.7418% and the benchmark 10-year yield last at 4.2554%. In commodities, oil prices were set for a weekly decline with the Iran-Israel ceasefire holding and easing concerns over Middle East supply risks. Brent crude futures were up 0.41% at $68.01 a barrel while U.S. crude rose 0.46% to $65.53 per barrel on Friday, but both were headed for a fall of more than 10% for the week. Spot gold fell 0.23% to $3,320.25 an ounce.
The Independent
28-05-2025
- Business
- The Independent
Asian shares are mostly higher after S&P 500 rallies 2%
Asian shares were mostly higher on Tuesday after President Donald Trump's decision to delay a 50% tariff on goods coming from the European Union sparked a rally on Wall Street. U.S. futures were little changed and oil prices rose. Japan's Nikkei 225 gained 0.5% to 37,918.86 and traders were awaiting the outcome of an auction of 40-year Japanese government bonds. Government debt and bonds have become an increasingly important issue for markets in recent weeks as yields have climbed around the world. The 40-year JGB's yield is at a record 3.5% and a recent auction found relatively few buyers. But analysts said worries eased a bit after Japan's finance ministry sent a questionnaire to bond investors that they took as a signal of efforts to calm the market. The dollar slipped against the Japanese yen, trading at 144.33 yen down from 144.36 yen. The euro fell to $1.1312 from $1.1329. Elsewhere in the region, Hong Kong's Hang Seng index lost 0.3% to 23,304.51, while the Shanghai Composite index edged 0.1% higher to 3,342.36. Australia's S&P/ASX 200 gained 0.2% to 8,425.10. The S&P/NZX 50 in New Zealand fell 1.8% after the central bank cut its benchmark interest rate. In South Korea, the Kospi jumped 1.8% to 2,685.44, helped by a global rally in technology shares. Samsung Electronics' shares climbed 3.3% while SK Hynix was up 3%. In Taiwan, the Taiex added 0.4%. Oil prices rose after the U.S. authorization to Chevron to export crude from Venezuela expired Tuesday. The Trump Administration has been trying to wind down U.S. reliance on Venezuelan energy. U.S. benchmark crude oil gained 33 cents to $61.22 per barrel. Brent crude, the international standard, was up 31 cents at $63.88 per barrel. On Tuesday, Wall Street's roller-coaster ride created by Trump's trade policies resumed following the delay for his tariffs on the European Union. U.S. markets had been closed for Memorial Day on Monday, and the S&P 500 leaped 2.1% in its first trading since Trump's announcement. It closed at 5,921.54. The Dow Jones Industrial Average added 1.8% to 42,343.65, and the Nasdaq composite gained 2.5% to 19,199.16. Wall Street's roller coaster had dropped Friday after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union. Talks with the EU have raised hope the United States can reach a deal with one of its largest trading partners, helping to keep global commerce moving and avoiding a possible recession. Trump declared a similar pause on his stiff tariffs for products coming from China earlier this month, which launched an even bigger rally on Wall Street at the time. The uncertainty caused by on-again-off-again tariffs are leaving households and businesses wary about spending and investments. Surveys have already shown U.S. consumers are feeling worse about the economy's prospects and where inflation may be heading because of tariffs. However, a report Tuesday by the Conference Board said confidence among U.S. consumers has improved more in May than economists expected. It was the first increase in six months, and consumers' expectations for income, business and the job market in the short term jumped sharply, though they remain below the level that typically signals a recession ahead. About half the survey results came after Trump paused some of his tariffs on China. On Wall Street, Nvidia rallied 3.2% and was the strongest single force driving the S&P 500 higher ahead of its profit report coming on Wednesday. It's the last to report this quarter among the 'Magnificent Seven' Big Tech companies. Nvidia has been riding a tidal wave of growth created by the frenzy around artificial-intelligence technology, but it's facing criticism that its stock price has shot too high. Informatica climbed 6% after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about $8 billion. Salesforce rose 1.5%. Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.44% from 4.51% late Friday. It had been rising last week, in part because of worries about the U.S. government's rapidly increasing debt. ___ AP Business Writers Matt Ott and Stan Choe contributed.
Associated Press
28-05-2025
- Business
- Associated Press
Asian shares are mostly higher after S&P 500 rallies 2%
Asian shares were mostly higher on Tuesday after President Donald Trump's decision to delay a 50% tariff on goods coming from the European Union sparked a rally on Wall Street. U.S. futures were little changed and oil prices rose. Japan's Nikkei 225 gained 0.5% to 37,918.86 and traders were awaiting the outcome of an auction of 40-year Japanese government bonds. Government debt and bonds have become an increasingly important issue for markets in recent weeks as yields have climbed around the world. The 40-year JGB's yield is at a record 3.5% and a recent auction found relatively few buyers. But analysts said worries eased a bit after Japan's finance ministry sent a questionnaire to bond investors that they took as a signal of efforts to calm the market. The dollar slipped against the Japanese yen, trading at 144.33 yen down from 144.36 yen. The euro fell to $1.1312 from $1.1329. Elsewhere in the region, Hong Kong's Hang Seng index lost 0.3% to 23,304.51, while the Shanghai Composite index edged 0.1% higher to 3,342.36. Australia's S&P/ASX 200 gained 0.2% to 8,425.10. The S&P/NZX 50 in New Zealand fell 1.8% after the central bank cut its benchmark interest rate. In South Korea, the Kospi jumped 1.8% to 2,685.44, helped by a global rally in technology shares. Samsung Electronics' shares climbed 3.3% while SK Hynix was up 3%. In Taiwan, the Taiex added 0.4%. Oil prices rose after the U.S. authorization to Chevron to export crude from Venezuela expired Tuesday. The Trump Administration has been trying to wind down U.S. reliance on Venezuelan energy. U.S. benchmark crude oil gained 33 cents to $61.22 per barrel. Brent crude, the international standard, was up 31 cents at $63.88 per barrel. On Tuesday, Wall Street's roller-coaster ride created by Trump's trade policies resumed following the delay for his tariffs on the European Union. U.S. markets had been closed for Memorial Day on Monday, and the S&P 500 leaped 2.1% in its first trading since Trump's announcement. It closed at 5,921.54. The Dow Jones Industrial Average added 1.8% to 42,343.65, and the Nasdaq composite gained 2.5% to 19,199.16. Wall Street's roller coaster had dropped Friday after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union. Talks with the EU have raised hope the United States can reach a deal with one of its largest trading partners, helping to keep global commerce moving and avoiding a possible recession. Trump declared a similar pause on his stiff tariffs for products coming from China earlier this month, which launched an even bigger rally on Wall Street at the time. The uncertainty caused by on-again-off-again tariffs are leaving households and businesses wary about spending and investments. Surveys have already shown U.S. consumers are feeling worse about the economy's prospects and where inflation may be heading because of tariffs. However, a report Tuesday by the Conference Board said confidence among U.S. consumers has improved more in May than economists expected. It was the first increase in six months, and consumers' expectations for income, business and the job market in the short term jumped sharply, though they remain below the level that typically signals a recession ahead. About half the survey results came after Trump paused some of his tariffs on China. On Wall Street, Nvidia rallied 3.2% and was the strongest single force driving the S&P 500 higher ahead of its profit report coming on Wednesday. It's the last to report this quarter among the 'Magnificent Seven' Big Tech companies. Nvidia has been riding a tidal wave of growth created by the frenzy around artificial-intelligence technology, but it's facing criticism that its stock price has shot too high. Informatica climbed 6% after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about $8 billion. Salesforce rose 1.5%. Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.44% from 4.51% late Friday. It had been rising last week, in part because of worries about the U.S. government's rapidly increasing debt. ___ AP Business Writers Matt Ott and Stan Choe contributed.
