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Jun 13, 2013

Nikkei Leads Gains in Asia Relief Rally: Latest Asian Markets At The Time, June 13, 2013.

Japan's Nikkei bounced back to trade within sight of the 13,000 mark on Friday, leading a rebound in Asian stocks after the previous day's hefty losses as strong U.S. data lifted confidence about the ability of the world's largest economy to withstand any pullback in monetary stimulus.

The Nikkei rose as much as 3 percent after Thursday's savage sell-off wiped out 6.4 percent off the market's value. Australia's S&P ASX 200 recovered from Thursday's five-and-a-half-month low and Seoul shares rebounded from a seven-week low hit the previous day.

Greater Chinese markets tracked Asia's recovery story with the Shanghai Composite rising from Thursday's fresh 2013 low.

"Why would you panic when there's a bargain sale at the local supermarket? It's the time to fill up your trolley, not panic and throw everything out" said Nicholas Smith, director and strategist at CLSA.

Upbeat retail sales and unemployment claims data in the U.S. triggered a rally on Wall Street overnight and soothed rattled nerves ahead of next week's Federal Reserve policy meeting.
(Read More: Why the Fed Will Try to Calm Market Nerves)

What's on Tap
Volatile currency moves remain a concern after dollar-yen dived below the 95-handle in early Asian trade, moving off it's session high of 95.8. Japanese finance minister Taro Aso had no comment in response to the sudden dip.

Markets digested minutes from the Bank of Japan's (BOJ) May 21-22 policy meeting. Members of the central bank stated that monetary stimulus should be limited to two years due to possible financial imbalances. One member also said that limited stimulus may help stabilize the volatile Japanese government bond (JGB) market.
Meanwhile, Japan's cabinet approved a government plan of major investment tax breaks on Friday, in a move designed to slash investment taxes for corporates and encourage investment. In a video message, Prime Minister Shinzo Abe promised to take more steps after next month's upper house elections.
  Name Price   Change %Change
NIKKEI Nikkei 225 Index 12843.54   398.16 3.20%
HSI Hang Seng Index 21104.75   217.71 1.04%
ASX 200 S&P/ASX 200 4767.50   71.70 1.53%
SHANGHAI Shanghai Composite Index 2145.25   -3.11 -0.14%
KOSPI KOSPI Index 1890.37   7.64 0.41%
CNBC 100 CNBC 100 ASIA IDX 6712.08   80.25 1.21%
Nikkei Up 3%

Exporter stocks licked some of their wounds with automaker Suzuki Motor rebounding by over 3 percent following a 5 percent loss in the previous session. Machinery makers JTEKT rallied 7 percent while Yamaha rose 6 percent.

For the week, the index is headed towards a loss of 1 percent but if it can hold onto current gains, that figure is likely to lower.

(Read More: What Japan Can Teach the Fed About QE Addiction)

Analysts say fears that Prime Minister Shinzo Abe's economic policies, known as "Abenomics," have run out of steam and a lack of clear evidence that the Japanese economy is back on track is to blame for the Nikkei's recent volatility.

"When will the BOJ cry uncle? When will they give markets what they want?," said Kathy Lien, Managing Director at BK Asset Management. "This (market sell-off) is Japan's own doing, they had the opportunity to provide markets with a small dose of stimulus and they did nothing because they were stubborn and overconfident that their policies were enough to stabilize markets," she told CNBC.

Australia Rallies 1.5%
Australia's equity market posted broad-based gains after falling to its lowest levels since January on Thursday. As a sure sign of the recovery story, the Relative Strength Index (RSI) for the benchmark index rose to 31 from a reading of 21 on Thursday. An index is considered 'oversold' when its RSI falls below 30.

Banks rose with a 3 percent rally in National Australia Bank but mining stocks were the session's out-performer after iron ore prices rose above $112 per ton. Gindalbie Metals added 8 percent, while Fortescue Metals and Arrium surged over 5 percent.

Meanwhile, the Aussie dollar lost some steam to trade at $0.9606 against the greenback after rising 2 percent overnight.

Shanghai Off Lows
China's benchmark index inched up in early trade to rise above the 2,150 level but still traded well below its 200-day simple moving average of 2,188 points.

(Read More: China Gets the Post-Holiday Blues as Stocks Slump)

Infrastructure stocks were big gainers with Long Yuan Construction up 1 percent and China State Construction higher by 1.4 percent.
Seoul Recovers 0.4%

Seoul's benchmark index snapped a three-day losing streak after falling to its lowest level for 2013 in the previous session as investors went bargain hunting for battered exporter stocks. Still, the index remained below the key 1,900 level and is set to post a loss of 1.8 percent for the week.

After six consecutive sessions of heavy selling, shares of market heavyweight Samsung Electronics gained as much as 1 percent. The stock plunged to a seven-month low on Thursday.

Automaker Kia Motors rose 1 percent, finally benefiting from a stronger Japanese yen as general sentiment improved.

By's Nyshka Chandran. Follow her on Twitter

Latest Asian Stock Markets In The News; June 13, 2013.


Hong Kong stocks pull higher; Sinopec, property up HONG KONG (MarketWatch) -- Hong Kong stocks pulled higher Friday in the wake of a rebound on Wall Street and for most regional markets, with the property and energy sectors leading the bounce. The Hang Seng Index added 0.9% to 21,066.46 and the Hang Seng China Enterprises Index rose 1% to 9,782.11. Shares of China Petroleum & Chemical Corp., also known as Sinopec , climbed 1.5% after Reuters reported the refining giant is negotiating to join a $20 billion liquefied natural gas project run by Russia's Novatek. China Overseas Land & Investment Ltd. [s:CAOVY] and Cheung Kong Holdings Ltd. rose 1.7% each in the beaten-down property sector, while heavyweight HSBC Holdings PLC climbed 1.1% among financials. China's Shanghai Composite gained 0.1% in choppy trade after dropping for eight straight trading days.

Asian markets rebound, led by Japan stocks Asian stocks rebound on eased worries about the Federal Reserve’s monetary policy and an improvement in U.S. economic data, with relief buying helping Japanese equities stage a rebound after Thursday’s hefty losses.

Bank of Japan mulls more moves: minutes Bank of Japan minutes for the May meeting suggest the radical easing introduced in April leaves scope for further action. 8:51 p.m. Today

Syria Has Used Chemical Weapons Against Rebels, U.S. and European Officials Conclude: NYT I Breaking News; June 13, 2013.

BREAKING NEWS Thursday, June 13, 2013
Syria Has Used Chemical Weapons Against Rebels, U.S. and European Officials Conclude
American and European intelligence analysts now believe that President Bashar al-Assad’s troops have used chemical weapons against rebel forces in the civil war in Syria, an assessment that will put added pressure on a deeply divided Obama administration to develop a response to a provocation that the president himself has declared a “red line.”
According to an internal memorandum circulating inside the government on Thursday, the “intelligence community assesses that the Assad regime has used chemical weapons on a small scale against the opposition multiple times in the last year.” President Obama said in April that the United States had physiological evidence that the nerve gas sarin had been used in Syria, but lacked proof of who used it and under what circumstances. He now believes that the proof is definitive, according to American officials.
But a flurry of high-level meetings in Washington this week only underscored the splits within the Obama administration about what actions to take to quell the fighting, which has claimed more than 90,000 people. The meetings were hastily arranged after Mr. Assad’s troops — joined by fighters from the militant group Hezbollah — claimed the strategic city of Qusayr and raised fears in Washington that large parts of the rebellion could be on the verge of collapse.


Supreme Court Rules Human Genes May Not Be Patented: The New York Times Global Update; June 13, 2013.

June 13, 2013
Compiled 20:44 GMT

Global Update


Supreme Court Rules Human Genes May Not Be Patented

The ruling will shape the course of research and testing, and it may alter the willingness of businesses to invest in understanding genetic material.

Turkish Protesters Get 'Final' Warning to Clear Out of Park

Prime Minister Recep Tayyip Erdogan said the use of force was justified against demonstrators occupying an Istanbul park.

Conflicting Goals Complicate an Effort to Forge a Trans-Atlantic Trade Deal

A pact is considered unlikely, but the desire for economic growth could overcome political problems.

Op-Ed Contributors

Pivot to a Trans-Atlantic Market

The United States and Europe can forge the world's premier trade pact, but only if they keep a firm eye on the goal.

Video: Three Men and a Future President?

The Times's Carolyn Ryan discusses Hillary Rodham Clinton, her potential presidential aspirations and her relationship with three powerful men.

Syrian Death Toll Approaches 93,000, U.N. Says

Navi Pillay, the United Nations human rights chief, said the figure is probably understated and called for an end to the violence.

Bill Clinton's Dissent on Syria Puts White House on the Spot

After former President Bill Clinton endorsed a more robust American intervention in Syria, the White House said it would not act to "satisfy critics."

Starved for Arms, Syria Rebels Make Their Own

A clandestine network of primitive weapons plants stands as a signature of a militarily lopsided war.

S.E.C. Charges and Fines Revlon for Misleading Shareholders

The Securities and Exchange Commission announced that Revlon hid crucial information from its independent board members related to a complex corporate finance transaction.

Gannett Agrees to Buy Belo for $1.5 Billion

The Gannett Company agreed to buy the Belo Corporation for about $1.5 billion in cash, in a deal that almost doubles Gannett's television operations.

Two Ex-Interns Sue Condé Nast Over Wages

The interns, who worked for W Magazine and The New Yorker, say they were paid less than $1 an hour.
Bits Blog

Microsoft to Open Mini-Stores Inside Best Buy

The stores, at 1,500 to 2,200 square feet, will be the biggest stores-within-a-store at Best Buy, which has similar dedicated areas for Samsung and Apple products.
Bits Blog

Secret Surveillance Court May Reveal Some Secrets

The Federal Intelligence Surveillance Court, in a rare ruling, said its opinion could be subject to a Freedom of Information Act request by the San Francisco-based Electronic Frontier Foundation.
Bits Blog

Google Offers Some Detail About How It Transfers Data to the Government

On a day of damage control, the tech company's chief legal officer, David Drummond, talked about how it electronically sends user data in response to lawful requests.
On Soccer

Surprise and Some Delight as U.S. and Mexico Switch Roles

The United States is in first place in its six-team World Cup qualifying tournament, 2 points ahead of the onetime soccer power Mexico, despite playing one fewer game.

For Rugby Players, Lions Matches Leave an Indelible Mark

The long tours give British and Irish players a chance to forge lifelong bonds, while opponents only get one chance in their career to play against the all-star squad.

Latest Updates: A Soggy First Round Splashes On

A rain delay stopped play at the U.S. Open for three and a half hours, but golfers are back on the course at Merion Golf Club - for now.

Colorado Wildfire Destroys Hundreds of Homes

The fire in the Colorado Springs suburb of Black Forest nearly doubled in size overnight and has forced nearly 40,000 people to flee the area.

Inspector in Philadelphia Collapse Commits Suicide

The city building inspector, Ronald Wagenhoffer, had surveyed a downtown building weeks before it collapsed, killing six people.

Police Agencies Are Assembling Records of DNA

Local law enforcement agencies have moved into what had been the domain of the F.B.I. and state crime labs, and the trend is expected only to accelerate after a recent Supreme Court decision.
Op-Ed Columnist

After the Shooting

The world moves on quickly after headline-grabbing gun violence. For the victims, the pain never ends.
Op-Ed Columnist

The Worst of Both Worlds

The reason most Americans disapprove of Congress isn't because of a specific policy or bad ethical behavior but because of inaction and partisan gridlock.
Op-Ed Contributor

Turkey's Growing Pains

The public discontent in Taksim Square and across the nation are a reflection of maturing democratic discourse.

S.E.C. Charges and Fines Revlon for Misleading Shareholders. DealBook P.M. Edition; June 13, 2013.

Ronald Perelman, the billionaire financier and Revlon chairman.
S.E.C. Charges and Fines Revlon for Misleading Shareholders The Securities and Exchange Commission announced that Revlon hid crucial information from its independent board members related to a complex corporate finance transaction.
    When Bernanke Confounds, Wall Street Reaches for Theories Amid the current turmoil in global markets, one question is being obsessively debated on Wall Street: Just what was Ben S. Bernanke thinking three weeks ago when he said that the Federal Reserve might soon cut back its stimulus efforts?
    Gracia Martore, chief executive of Gannett.
    Gannett Agrees to Buy Belo for $1.5 Billion The Gannett Company agreed to buy the Belo Corporation for about $1.5 billion in cash, in a deal that almost doubles Gannett's television operations.
    In Fight Over Bank Rules, Regulator Calls for Compromise Bart Chilton, a Democratic member of the Commodity Futures Trading Commission, called on his agency to strike a compromise over plans to rein in risky trading overseas.
    With HD Supply I.P.O., a Reminder of the Buyout Boom HD Supply Holdings is planning an initial public offering that would value the entire company at about $4.3 billion, far less than the price paid by three private equity firms six years ago.
    Not a Pretty Start for Coty Shares Shares of the cosmetics and fragrance giant Coty slipped in their trading debut on the New York Stock Exchange, after one of the biggest I.P.O.'s in the United States this year.
    Indian Tire Maker's Shares Tumble Over Deal for Cooper Shares of Apollo Tyres plunged more than 25 percent in India on news of its proposed $2.5 billion acquisition of Cooper Tire and Rubber over concerns about the amount of debt it was taking on.
    R.B.S. Faces Doubts About Its Direction The departure of Stephen Hester as chief executive has raised concerns about how Royal Bank of Scotland will navigate a planned exit by its largest stakeholder, the British government. Its shares tumbled about 4 percent on Thursday.
    Economic Reports Data to be released on Friday include the University of Michigan's preliminary consumer sentiment index.
    Corporate Earnings Companies scheduled to release quarterly reports on Friday include Smithfield Foods.
    In the United States On Friday, Thomas M. Hoenig, the vice chairman of the Federal Deposit Insurance Corporation, and H. Rodgin Cohen, chairman of the Wall Street law firm Sullivan & Cromwell, will be among panelists for a debate on "too big to fail" banks at the Brookings Institution.
    Overseas On Friday, inflation and employment data for the euro zone will be released.

    Quotation of the Day
    "By erecting informational barriers, Revlon kept critically important information from its board and, in turn, misled investors."
    Antonia Chion, an associate director in the S.E.C.'s division of enforcement, on charges on that the cosmetics company misled shareholders.
    DealBook Video
    Executive Covets Goldman Seat Where a Friend Snugly Sits Gary D. Cohn has long been considered the man who will be the next C.E.O. of Goldman Sachs; the problem is the current chief isn't ready to leave.

Stocks Rally 1% to End Near Session Highs, Dow Spikes Nearly 200; Vix Skids 11%: Wall Street at Close Report by CNBC, June 13, 2013.

Stocks rallied to close near session highs Thursday, with major averages wiping out the previous session's losses, lifted by a pair of better-than-expected economic data and as investors shrugged off another steep selloff in the Japanese market.

(Read More: After-Hours Buzz: NWSA, RH & More)
Name Price Change %Change
DJIA Dow Jones Industrial Average 15176.08
180.85 1.21%
S&P 500 S&P 500 Index 1636.36
23.84 1.48%
NASDAQ Nasdaq Composite Index 3445.36
44.93 1.32%

The Dow Jones Industrial Average soared 180.85 points, or 1.21 percent, to finish at 15,176.08. Caterpillar and Pfizer led the Dow gainers, while Microsoft slipped.

The S&P 500 jumped 23.84 points, or 1.48 percent, to close at 1,636.36. And the Nasdaq rallied 44.94 points, or 1.32 percent, to end at 3,445.37.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, tumbled near 16.

All key S&P sectors closed firmly in positive territory, boosted by financials and telecoms.
Nagging worries about the Federal Reserve tapering its bond-buying program and disappointment over the Bank of Japan's decision pushed the market sharply lower in the last two days. Despite the session's rally, major averages are currently on pace for their worst monthly performance since October 2012.

(Read More: Can US Stocks Weather Taper Tantrum?)

El-Erian on the Global Selloff Dissecting the day's major business news, with the "Fast Money" traders. PIMCO CEO Mohamed El Erian, discusses the global sell off. 
"We had some good data and the market seems to have stopped looking at the turmoil in Japan—at least for today," said Brian Gendreau, market strategist at Cetera Financial. "But everyone's focused on the Fed now…Volatility will likely continue—the Vix is a bit higher than usual, which implies a little bit of apprehension and people getting concerned." On the economic front, weekly jobless claims declined 12,000 to a seasonally adjusted 334,000 last week, according to the Labor Department, falling near the lowest level in nearly five years. And retail sales climbed 0.6 percent in May, according to the Commerce Department, topping expectations for a gain of 0.4 percent. Retail sales account for about 30 percent of consumer spending. Meanwhile, business inventories rose 0.3 percent in April, according to the Commerce Department, in line with expectations. Inventories are a key component of GDP changes. And import and export prices declined unexpectedly in May. Earlier, Japan's benchmark Nikkei plunged over 6 percent, pushing the benchmark firmly back in bear market territory for the second time in less than a week. The index has tumbled more than 20 percent from last month's 5 1/2-year high of 15,942. (Read More: What Japan Can Teach the Fed About QE Addiction) Interestingly, the dollar/yen dropped below the key 95-handle to a new 10-week low, but stocks still held gains, signaling a trend reversal as equities have moved very closely with the yen for the past several weeks. Elsewhere in Asia, markets experienced a bout of heavy selling with the Shanghai Composite down nearly 3 percent, Seoul shares falling to a new eight-week low and Australia's S&P ASX 200 hitting a fresh five-and-a-half-month low. Emerging markets also extended losses as capital flows continue to exit local equities. Thailand's SET index and Philippine's benchmark index slumped over 5 percent each, extending broad losses. (Read More: Is It Game Over for Japanese Equities?) "We are seeing the first signs of a lack of confidence in the ability of central banks to control the interest rates, and to stimulate inflation and real GDP growth rates," said Viktor Shvets, head of strategy research, Asia, at Macquarie.
Coty slipped in its market debut on the New York Stock Exchange. The beauty-products maker priced its IPO at $17.50 a share. (Read More: Sniff Sniff: Here's Where Coty Smells Growth) Apple edged higher amid buzz that the tech giant may be launching iPhones with bigger screens, cheaper models, and in a range of colors over the next year, according to Reuters, citing sources familiar with the matter. Apple declined to comment.   DuPont declined after the chemical company it expects to see full-year earnings at the lower end of its previously issued guidance, citing unseasonably cool weather across the U.S. and Europe. Safeway surged after Empire, the operator of Canadian grocery chain Sobeys, said it will acquire the supermarket chain's operations in Canada for approximately $5.7 billion. In addition, JPMorgan and Guggenheim raised their price target on Safeway. Gannett spiked to lead the S&P 500 gainers after the newspaper chain said it will acquire television company Belo for $1.5 billion. The deal will nearly double Gannett's broadcasting holdings, making the company the fourth-largest U.S. owner of major network affiliates. Meanwhile, a U.K. parliamentary report out on Thursday panned Google for aggressively avoiding paying corporate tax in Britain, and said its international reputation will be damaged until it pays what it owes. Treasurys cut their gains after the government sold $13 billion in 30-year bonds at a high yield of 3.355 percent. The bid-to-cover ratio, an indicator of demand, was 2.47. —By CNBC's JeeYeon Park. Follow JeeYeon on Twitter:

Stocks leap on easing Fed worries, upbeat data: Wall Street at Close Report by MarketWatch; June 13, 2013.

By Kate Gibson, MarketWatch 
NEW YORK (MarketWatch)U.S. stocks rallied on Thursday, with the S&P 500 index marking its best day in five months, bolstered by upbeat economic data and a late-session report in The Wall Street Journal that eased worries about the Federal Reserve’s monetary policy. 

U.S. stock indexes were already surging as positive economic reports overrode concern about the Japanese market, but rose to session highs in the wake of the Journal piece. 

“There’s a Wall Street Journal report about the Fed not likely to do anything at this meeting,” said Dan Greenhaus, chief global strategist at BTIG LLC. A story written by Journal reporter Jon Hilsenrath, considered an influential voice on central-bank policy, said that Federal Reserve Chairman Ben Bernanke would likely reiterate the Fed expects a “considerable” amount of time to pass between ending the central bank’s bond-buying program and raising short-term rates. The Federal Open Market Committee will issue a monetary-policy decision next week. 

Tallying its best session since Jan. 2, the Standard & Poor’s 500 index SPX +1.48%  rose 23.84 points, or 1.5%, to 1,636.36, with financials pacing gains that included all of its 10 major industry sectors. 

“We had a decent jobless-claims number and retail sales were pretty solid,” said Matt Kaufler, portfolio manager at Federated Investors. “Both are very encouraging signs of the ongoing mending of the U.S. economy, which helped negate concerns about what happened in Japan overnight.” 

The Labor Department said applications for unemployment benefits fell by 12,000 to 334,000 last week. The four-week moving average declined to 345,250 last week from 352,500. Separate numbers from the Commerce Department had retail sales climbing 0.6% in May, the largest jump in three months, and coming after a 0.1% rise in April.

Are central banks confusing markets?
After another drop in the Nikkei, have the central banks stopped communicating with the markets? Economics editor David Wessel discusses. 

After falling as much as 41 points, the Dow Jones Industrial Average DJIA +1.21% rose as much as 207, and finished at 15,176.08, up 180.85 points, or 1.2%. After three consecutive sessions of losses, its longest such streak this year, Thursday’s gains cut the Dow’s weekly losses down to 0.5%. 

A day after boosting its quarterly dividend by 8 cents to 60 cents a share, heavy-equipment maker Caterpillar Inc. CAT +2.32%   led blue-chip gains, which included 26 of the index’s 30 components.
The Nasdaq Composite index COMP +1.32%  added 44.94 points, or 1.3%, to 3,445.37. 

For every stock falling, nearly six gained on the New York Stock Exchange, where almost 756 million shares traded. 

Composite volume neared 3.4 billion. 

U.S. Treasury prices rose, with the yield on the 10-year note 10_YEAR +0.05%  used in determining mortgage rates and other consumer loans falling to 2.149%. The price of crude CLN3 +0.83%  rose 81 cents to $96.69 a barrel and gold futures GCQ3 -0.52%  declined $14.20 to $1,377.80 an ounce on the New York Mercantile Exchange. 

The U.S. dollar DXY -0.28%  fell against the yen USDJPY +0.26% , as investors rattled by stocks sinking in Japan unwound bets that Japan’s currency would soften. 

“It appears that the global markets are feeling the reaction of global traders suddenly trying to unwind global carry-trade positions in light of the fact that the currency used to put on the trade, the yen, has suddenly moved up to a 10-week high versus the dollar,” Fred Dickson, chief investment strategist at Davidson Companies, said in emailed comments. 

The direction of Fed policy, and specifically when the central bank may scale back its bond purchases, has been a primary concern for investors in recent weeks. 

“The market’s in a bit of a tug of war in that you have this fear on any given day of the new buzz word, or tapering, by the Fed, and will the market be able to ride without training wheels, if you will, or the assistance of the Fed,” said Kaufler. 

And then there’s “spillover concern from the Nikkei, fueled by their own monetary policy,” added Kaufler of Japan, where the Nikkei Stock Average JP:NIK -6.35% plunged 6.4% Thursday, pushing it back into bear-market territory. 

Among notable U.S. stock moves Thursday, Williams Cos. WMB -0.97%  fell 1% after the pipeline company said a blast occurred Thursday morning at a facility in Geismar, La. At least two people died and nearly 50 were reportedly injured in the chemical-plant explosion. 

Gannett Co. Inc. GCI +34.01%  shares rallied 34% after the publisher of USA Today agreed to purchase television company Belo Corp. BLC +28.33%  for about $1.5 billion

Safeway Inc. SWY -0.28%   jumped 7.4% after the grocer said it would sell its stores in Canada and use the proceeds to pay down debt and repurchase stock. 

Kate Gibson is a reporter for MarketWatch, based in New York.