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Showing posts with label Asia-Pacific. Show all posts
Showing posts with label Asia-Pacific. Show all posts

May 9, 2022

Asia-Pacific, Europe, and US Market Closing Reports | Monday, May 9, 2022:

 ASIA-PACIFIC

cnbc.com

Japan's Nikkei falls more than 2% as Asia stocks slip; China's April trade data come in above expectations

Eustance Huang

SINGAPORE — Shares in Asia-Pacific largely fell on Monday as investors watched for market reaction to Chinese trade data that came in better-than-expected.

In Japan, the Nikkei 225 fell 2.53% to close at 26,319.34, leading losses among the region’s major markets as shares of Fast Retailing dropped 6.26%. The Topix index shed 1.96% to 1,878.39.

Mainland Chinese stocks closed mixed, with the Shanghai Composite rising fractionally to 3,004.14 while the Shenzhen Component slipped 0.409% to about 10,765.63.

China’s dollar-denominated exports grew 3.9% year-on-year in April, customs data showed Monday. They were above expectations for a 3.2% rise by analysts in a Reuters poll.

China’s dollar-denominated imports were unchanged in April compared to a year ago, better than an expected 3% drop, according to Reuters.

The data came as mainland China continued to battle its worst Covid outbreak since early 2020. Chinese President Xi Jinping on Thursday emphasized that the country should stick to its “dynamic zero-Covid” policy.

“It is unclear how quickly China will pivot towards living with COVID,” Tapas Strickland, an economist at National Australia Bank, wrote in a Monday note. “As for data, it is expected to take a backseat given lockdowns/enhanced restrictions in many parts of the country.”

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Elsewhere, South Korea’s Kospi slipped 1.27% to close at 2,610.81 while the S&P/ASX 200 in Australia declined 1.18% on the day to 7,120.70.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3%.

“We’ve cautioned about getting too bearish,” Steve Brice, chief investment officer at Standard Chartered Wealth Management, told CNBC’s “Street Signs Asia” on Monday.

“If you look at indicators … from a market perspective, that bearishness is coming through as well, and that’s usually a buying opportunity,” said Brice. “I know there’s a lot of challenges out there … in terms of the inflation outlook, but you know, the markets are already pricing in very, very sharp monetary policy tightening. At some point we will find a bottom.”

Markets in Hong Kong were closed on Monday for a holiday.

TICKER COMPANY NAME PRICE CHANGE %CHANGE
Nikkei 225 Index*NIKKEI26319.34-684.22-2.53
Hang Seng Index*HSI20001.96-791.44-3.81
S&P/ASX 200*ASX 2007120.7-84.9-1.18
Shanghai*SHANGHAI3004.142.580.09
KOSPI Index*KOSPI2610.81-33.7-1.27
CNBC 100 ASIA IDX*CNBC 1008243.6-120.09-1.44

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.991 following a recent jump from levels below 103.2.

The Japanese yen traded at 131.09 per dollar, weaker as compared with levels below 129 seen against the greenback last week. The Australian dollar changed hands at $0.7007 after last week’s drop from above $0.721.

Oil prices were lower in the afternoon of Asia trading hours, with international benchmark Brent crude futures declining 0.3% to $112.05 per barrel. U.S. crude futures dipped 0.46% to $109.27 per barrel.

________________________________________________________________________________

EUROPE

 

cnbc.com

European markets close down 2.8% as travel, tech stocks lead losses; oil prices fall 5%

Elliot Smith, Holly Ellyatt

LONDON — European stocks on Monday fell to two-month lows as global investors fled risk assets en masse due to fears over inflation.

The pan-European Stoxx 600 provisionally ended down 2.8%, hitting its lowest level since Mar. 8. Travel and tech shares led the losses, down 5.8% and 4.8% respectively, as all sectors and major bourses traded firmly in negative territory.

The risk aversion for European markets comes after regional stocks retreated at the end of the last trading week on the back of a rout in U.S. markets, with Wall Street posting its worst day since 2020 last Thursday.

U.S. stocks fell sharply Monday, pushing the S&P 500 to a fresh 52-week low, as traders struggled to find their footing after a dramatic week of trading stateside. Shares in Asia-Pacific also retreated on Monday.

"Even the volatility of volatility is on the rise. The Vix index, which tracks expected volatility of the S&P 500, dropped a fifth in the first half of the week before leaping 25 per cent on Thursday. It's now more than double the five-year average."

Stuart Kirk

Global Head of Research and Responsible Investments, HSBC

Global markets have been volatile in recent weeks as uncertainty reigns over the outlook for monetary policy, inflation and economic growth.

"Even the volatility of volatility is on the rise. The Vix index, which tracks expected volatility of the S&P 500, dropped a fifth in the first half of the week before leaping 25 per cent on Thursday. It's now more than double the five-year average," said Stuart Kirk, HSBC global head of research and responsible investments.

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Investors are also keeping an eye on the war in Ukraine as dozens are feared dead after a school in the Luhansk region in eastern Ukraine was hit by Russian shelling. Luhansk is one of the two regions that make up the Donbas, where Russian troops are now largely concentrating their attacks.

Russia was also under scrutiny on Monday, as it held its "Victory Day" — a holiday commemorating the Soviet Union's defeat of Nazi Germany in World War II.

In his speech, President Vladimir Putin attempted to justify his unprecedented invasion of Ukraine by claiming without evidence that the West was "preparing for the invasion of our land, including Crimea," according to a Reuters translation.

U.S. first lady Jill Biden made a surprise visit to Ukraine on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.

Also weighing on investor sentiment are continued coronavirus lockdowns in China. In oil markets, international benchmark Brent crude futures sank 5.2% to $106.52 a barrel while U.S. light crude futures fell 5.6% to $103.61. China is the world's largest oil importer.

In terms of individual share price movement in Europe, German food delivery company Delivery Hero slumped 13% to the bottom of the Stoxx 600.

British advertising agency S4 Capital plunged 11% after being forced to cut its earnings outlook after an auditing issue forced a delay to the publication of its full-year results.

— CNBC's Jesse Pound contributed to this market report.

_________________________________________________________________________________ 

US

Source: cnbc.com

Dow falls more than 600 points, S&P 500 tumbles below 4,000 to the lowest level in a year

Samantha Subin, Jesse Pound

Stocks fell sharply Monday, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year as the market sell-off continued.

The Dow Jones Industrial Average dropped 610 points, or 1.9%. The S&P 500 fell 3.1%, while the Nasdaq Composite lost 4.2%.

The S&P 500 traded as low as 3,988.23 on the day, dipping below the 4,000 mark for the first time since April 2021 and pulling back 17% from a 52-week high as traders struggled to bounce back from last week's big market swings. All sectors except for consumer staples dipped into the red.

Amid the losses, the benchmark 10-year Treasury note yield hit its highest level since late 2018, trading well above 3%.

"This is significant repricing, this is significant dislocation and this is all being spurred and driven by Federal Reserve policy," said Jeff Kilburg of Sanctuary Wealth. "The only way I see us finding the bottom in equities short-term, the only way I see markets healing is if the Fed has the ability with the tools in their toolbox to calm down interest rates. The 10-year note needs to go back under 3%."

Rising rates continued to crush technology names such as Meta Platforms and Alphabet, which fell more than 4.3% and 1.7%, respectively. Amazon, Apple and Netflix all fell nearly 3%, while Tesla and Nvidia dipped more than 6%.

The combination of high rates and a potential recession as inflation surges also hit other areas of the market. Consumer stocks like Nike suffered along with industrials such as Caterpillar and Deere. Bank stocks also came under pressure with Bank of America falling more than 3%.

Boeing marked the biggest loser in the Dow, plunging more than 7% followed by energy bellwether Chevron which slipped 5.5% as U.S. oil futures continued to slide. Amgen, Walmart, Home Depot and 3M remained bright spots in the market, posting gains despite the broader sell-off.

"We expect markets to remain volatile, with risks skewed to the downside as stagflation risks continue to increase," wrote Barclays' Maneesh Deshpande. "While we cannot discount sharp bear market rallies, we think upside is limited."

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Chart analysts are also seeing signs of a prolonged market downturn emerge.

"Our thinking is that stocks are likely to continue lower because we have not yet seen enough technical evidence to suggest a bottom process has started," wrote JC O'Hara of MKM Partners. "Technical indicators are not oversold enough. The volume profile has shown little if any signs of real capitulation."

On the earnings front, Palantir cratered 21% on weak revenue guidance and BioNTech gained 5.8% following a strong quarter. First-quarter earnings season is slowing down, but there are several notable reports including Walt Disney and Occidental Petroleum slated for later in the week.

In other corporate news, Rivian shares plunged nearly 15% after CNBC's David Faber reported on Saturday that Ford is looking to sell 8 million shares in the electric vehicle maker.

Monday's moves came as Wall Street finished an erratic week of eye-popping day-to-day swings as investors weighed the prospects of rising interest rates against the potential of slower economic growth.

The moves followed remarks from Federal Reserve Chair Jerome Powell, indicating the central bank was not considering a 75-basis-point rate hike at upcoming meetings. Stocks rallied and rates slipped following the comments before reversing course on Thursday.

May 6, 2022

Asia-Pacific, Europe, and US Markets Closing Report | Friday, May 06, 2022:

Asia- Pacific

cnbc.com

Hong Kong's Hang Seng index drops more than 3% following Wall Street tumble

Eustance Huang

SINGAPORE — Shares in Asia-Pacific largely declined on Friday after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020.

Hong Kong's Hang Seng index led losses regionally as it fell 3.81% to close at 20,001.96. In mainland China, the Shanghai Composite slipped 2.16% to end the trading day at 3,001.56 while the Shenzhen Component shed 2.141% to 10,809.88.

"In Asia of course we're very much influenced by what the U.S. Fed does and the U.S. economy but now we face the zero-Covid problem from China," Richard Martin, a business consultant and managing director at IMA Asia, told CNBC's "Street Signs Asia" on Friday.

Data shows China's recent Covid lockdowns are hitting more than just Beijing and Shanghai, where the bulk of new infections have been found.

"A lot of the components and materials come out of China, so in addition to weak demand from China, we're going to have a shortage of components from China which on the supply side into the markets across Asia will stop factories running," Martin said.

With no obvious news flow to explain the sharp reversal, it seems instead that the relief of Powell indicating 75bp moves were likely a step too far gave way to a renewed focus on high inflation and a challenging growth outlook.

Taylor Nugent

economist, National Australia Bank

Technology stocks in the region sold off, following the tech-heavy Nasdaq Composite's nearly 5% drop overnight stateside.

Shares of Tencent declined 4.69% while Alibaba fell 6.57% and Meituan slipped 4.68%. Hong Kong's Hang Seng Tech index dropped 5.23% to 4,036.26. The broader risk-off sentiment also extended to electric vehicle stocks, with Xpeng plunging 9.84% while Nio shed 11.47%.

In Japan, shares of conglomerate SoftBank Group dropped 2.27%. South Korea's Kakao slipped 5.28% while industry heavyweight Samsung Electronics declined 2.06%.

Other Asia-Pacific markets mostly dip

South Korea's Kospi dropped 1.23% on the day to 2,644.51. The S&P/ASX 200 in Australia shed 2.16% to close at 7,205.60. Singapore's Straits Times index slipped 1.39%, as of 4:20 p.m. local time.

Japanese stocks bucked the overall trend regionally as they returned to trade on Friday after being closed for holidays much of this week. The Nikkei 225 closed 0.69% higher at 27,003.56 while the Topix index gained 0.93% to 1,915.91.

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MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.74%.

Overnight on Wall Street, the Dow Jones Industrial Average plunged 1,063.09 points — or 3.12% — to 32,997.97. The S&P 500 fell 3.56% to 4,146.87.

Thursday's moves on Wall Street were a sharp reversal from a Wednesday rally after the U.S. Federal Reserve increased its benchmark interest rate by half a percentage point, in line with market expectations and also the biggest hike in two decades.

Fed Chairman Powell also indicated raising rates by 75 basis points at a time is "not something the committee is actively considering."

"With no obvious news flow to explain the sharp reversal, it seems instead that the relief of Powell indicating 75bp moves were likely a step too far gave way to a renewed focus on high inflation and a challenging growth outlook," Taylor Nugent, an economist at National Australia Bank, wrote in a Friday note.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.617 after a recent jump from below 103.

The Japanese yen traded at 130.50 per dollar, weaker as compared to levels below 130 seen against the greenback earlier in the week. The Australian dollar was at $0.7081 after yesterday's decline from levels above $0.721.

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures up 0.54% to $111.50 per barrel. U.S. crude futures also gained 0.49% to $108.79 per barrel.

cnbc.com

Hong Kong's Hang Seng index drops more than 3% following Wall Street tumble

Eustance Huang

SINGAPORE — Shares in Asia-Pacific largely declined on Friday after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020.

Hong Kong's Hang Seng index led losses regionally as it fell 3.81% to close at 20,001.96. In mainland China, the Shanghai Composite slipped 2.16% to end the trading day at 3,001.56 while the Shenzhen Component shed 2.141% to 10,809.88.

"In Asia of course we're very much influenced by what the U.S. Fed does and the U.S. economy but now we face the zero-Covid problem from China," Richard Martin, a business consultant and managing director at IMA Asia, told CNBC's "Street Signs Asia" on Friday.

Data shows China's recent Covid lockdowns are hitting more than just Beijing and Shanghai, where the bulk of new infections have been found.

"A lot of the components and materials come out of China, so in addition to weak demand from China, we're going to have a shortage of components from China which on the supply side into the markets across Asia will stop factories running," Martin said.

With no obvious news flow to explain the sharp reversal, it seems instead that the relief of Powell indicating 75bp moves were likely a step too far gave way to a renewed focus on high inflation and a challenging growth outlook.

Taylor Nugent

economist, National Australia Bank

Technology stocks in the region sold off, following the tech-heavy Nasdaq Composite's nearly 5% drop overnight stateside.

Shares of Tencent declined 4.69% while Alibaba fell 6.57% and Meituan slipped 4.68%. Hong Kong's Hang Seng Tech index dropped 5.23% to 4,036.26. The broader risk-off sentiment also extended to electric vehicle stocks, with Xpeng plunging 9.84% while Nio shed 11.47%.

In Japan, shares of conglomerate SoftBank Group dropped 2.27%. South Korea's Kakao slipped 5.28% while industry heavyweight Samsung Electronics declined 2.06%.

Other Asia-Pacific markets mostly dip

South Korea's Kospi dropped 1.23% on the day to 2,644.51. The S&P/ASX 200 in Australia shed 2.16% to close at 7,205.60. Singapore's Straits Times index slipped 1.39%, as of 4:20 p.m. local time.

Japanese stocks bucked the overall trend regionally as they returned to trade on Friday after being closed for holidays much of this week. The Nikkei 225 closed 0.69% higher at 27,003.56 while the Topix index gained 0.93% to 1,915.91.

Stock picks and investing trends from CNBC Pro:

MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.74%.

Overnight on Wall Street, the Dow Jones Industrial Average plunged 1,063.09 points — or 3.12% — to 32,997.97. The S&P 500 fell 3.56% to 4,146.87.

Thursday's moves on Wall Street were a sharp reversal from a Wednesday rally after the U.S. Federal Reserve increased its benchmark interest rate by half a percentage point, in line with market expectations and also the biggest hike in two decades.

Fed Chairman Powell also indicated raising rates by 75 basis points at a time is "not something the committee is actively considering."

"With no obvious news flow to explain the sharp reversal, it seems instead that the relief of Powell indicating 75bp moves were likely a step too far gave way to a renewed focus on high inflation and a challenging growth outlook," Taylor Nugent, an economist at National Australia Bank, wrote in a Friday note.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.617 after a recent jump from below 103.

The Japanese yen traded at 130.50 per dollar, weaker as compared to levels below 130 seen against the greenback earlier in the week. The Australian dollar was at $0.7081 after yesterday's decline from levels above $0.721.

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures up 0.54% to $111.50 per barrel. U.S. crude futures also gained 0.49% to $108.79 per barrel.

_________________________________________________________________________________

Europe

 


European stocks close 1.6% lower as investors fret over rate hikes, surging inflation
Elliot Smith

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSE 100*FTSE 7414.55-88.72-1.18650824055
DAX*DAX13725.01-177.51-1.2869913618
CAC 40 IndexCAC6258.36-110.04-1.73113118282

The pan-European Stoxx 600 fell 1.6% by the close, with retail stocks shedding 2% as almost all sectors and major bourses finished in negative territory. Oil and gas stocks gained 0.7%.

The Dow Jones Industrial Average plunged more than 1,000 points and the Nasdaq Composite fell nearly 5% on Thursday, erasing Wednesday’s rally. Initial relief over the Federal Reserve’s ruling out of more aggressive hikes seemingly gave way once again to fears that a sharp hiking cycle in order to rein in red-hot inflation could harm economic growth.

U.S. stocks lost further ground on Friday morning. Meanwhile the dollar continues to strengthen amid economic anxiety, with the dollar index notching a fresh 20-year high on Friday morning.

Concern about inflation is the culprit, as ever, and the wild swings we’ve seen this week are a reminder that sentiment is about as fragile as a porcelain doll.

Russ Mould

Investment Director, AJ Bell

Russ Mould, investment director at AJ Bell, said market sentiment had turned once traders had time to chew over the Fed guidance and assess the outlook more thoroughly.

“Concern about inflation is the culprit, as ever, and the wild swings we’ve seen this week are a reminder that sentiment is about as fragile as a porcelain doll,” he said.

“The other fear is that the cure for inflation, higher rates, could be as bad as the disease if they choke off growth and even lead to recession.”

Monetary policy remains a key dictator of market sentiment. Global bond yields have surged in recent weeks as investors react to interest rate hikes from the Fed and the Bank of England. The European Central Bank has yet to follow suit, but momentum appears to be building for a summer hike.

ECB member and Governor of the Bank of Finland Olli Rehn told CNBC on Friday that market turbulence can be attributed to the “pervasive uncertainty” that is overshadowing the economic outlook.

“In Europe, we are facing this especially because of the sheer proximity and especially because of the excessive energy dependency on Russian fossil fuels,” he said.

“As far as the European economy is concerned, we have already downgraded our growth forecasts because of these factors. On the other hand, the European economy is still growing, the recovery is on, employment is improving, and we are seeing that there is plenty of fiscal and monetary accommodation that is supporting the economy still.”

Rehn called for a 25-basis-point rate hike at the ECB’s next policy meeting in order to prevent inflation expectations becoming “entrenched.”

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Earnings continue to affect individual share price movement in Europe, with Adidas and British Airways parent IAG among those reporting before the bell on Friday.

Shares of drug ingredients business EUROAPI climbed more than 8% on the Sanofi spin-off’s Paris stock market debut.

Spanish pharmaceutical company Grifols also added more than 9% after posting an improved first-quarter EBITDA margin.

At the bottom of the European blue chip index, Danish hospital equipment manufacturer Ambu slid more than 11% after cutting its guidance.

Investors are also monitoring Russia’s progress in eastern and southern Ukraine as its forces appear to have escalated assaults in the regions.

__________________________________________________________________________________

US 

 

cnbc.com

Stocks fall on Friday to close out tumultuous week, Dow drops for sixth straight week

Jesse Pound, Hannah Miao

Stocks lost ground in choppy trading on Friday as investors struggled to find a floor after a dramatic week that saw the Dow Jones Industrial Average post both its best and worst days since 2020.

The S&P 500 shed 0.57% to close at 4,123.34, while the Nasdaq Composite fell 1.40% to settle at 12,144.66. The Dow shed 98.60 points, or 0.30%, to finish at 32,899.37. The losses on Friday clinched a losing week for all three major indexes despite starting off the period with three straight positive sessions.

The moves came after stocks sold off sharply on Thursday. The Dow lost more than 1,000 points, and the tech-heavy Nasdaq Composite fell nearly 5%. Both indexes notched their worst single-day drops since 2020. The S&P 500 fell 3.56%, its second-worst day of the year.

Thursday's losses erased Wednesday's big post-Federal Reserve meeting rally. Fed Chair Jerome Powell ruled out the prospect of larger rate hikes on Wednesday, sending the S&P 500 and the Dow to their best daily gains since 2020.

"The widely anticipated relief rally seen in equities and bonds post the 'less hawkish than feared' Fed on Wednesday was short lived," Barclays strategist Emmanuel Cau said in a note to clients. "Although aggressive 75bp hikes going forward may be off the table, the implied policy tightening cycle ahead is still very hawkish, in our view. Unless surging inflation quickly reverses its course (watch US CPI print next Wednesday), central banks may have no other choice than slowing growth to slow inflation and stay credible."

Tech stocks were again an area of weakness for the market on Friday. Amazon fell 1.4%, while Microsoft and Nvidia dropped about 0.9%. Netflix and Crowdstrike fell 3.9% and 8.9%, respectively.

Speculative areas of the market such as biotech and solar energy were hit hard on Friday. Illumina dropped more than 14%, while Enphase Energy fell 8.4%.

Tech was and underperformer for the market all week, e-commerce stocks in particular. Amazon and Shopify finished the week down roughly 7.7% and 11.6%, respectively.

"That underperformance that we have seen is directly tied to the rise in real yields, which are now in positive territory," said Angelo Kourkafas, an investment strategist at Edward Jones. "The issue with tech is not only the valuation pressures as the result of a different interest rate regime, but also there has been some pull-forward of demand. ... That's one of the key trends so far this earnings season."

For the week, the Dow finished down 0.24% for its sixth consecutive negative week. The S&P 500 and Nasdaq finished with losses of 0.21% and 1.54%, respectively, for their fifth straight losing week.

The Nasdaq closed about 25% below its record high from last November.

Moves in the Treasury market appeared to be affecting equities on Friday. The 10-year Treasury yield rose to 3.13% for the first time since 2018, coinciding roughly with the lows of the day for stocks, but eased back from that level later in the session.

Energy was a bright spot for the market, with EOG Resources jumping 7.1%. Oil prices rose again on Friday, which is a positive for energy stocks but is leading to worries about slowing economic growth and higher inflation.

On the earnings front, shares of Under Armour dropped more than 23% after the apparel company missed estimates on the top and bottom lines. That appeared to hurt rival Nike, whose shares dropped about 3.5% and weighed on the Dow.

Insurance stock Cigna jumped nearly 6% after a better-than-expected quarterly report.

The losses Friday came despite an April jobs report that showed a gain of 428,000 jobs, more than the 400,000 expected by economists surveyed by Dow Jones.

One weak area of the report was the labor force participation rate, which was little changed month over month and remains 1.2 percentage points below its pre-pandemic level. Economists believe that a recovery in participation could help stem the rise in wages and, by extension, inflation.

"If we are to get a soft landing, we are going to have to see a recovery in participation at a pretty rapid clip," said Luke Bartholomew, senior economist at Abrdn.

Elsewhere in economic data, the Fed's consumer credit data showed an increase of $52.4 billion in March, more than double what economists expected, according to Dow Jones.

— CNBC's Michael Bloom contributed to this report.

May 3, 2022

Asia-Pacific, Europe and US Markets Closing Report | Tuesday, May 3, 2022:

 ASIA

Source: cnbc.com

Hong Kong stocks rise as Alibaba slips; Australia hikes interest rate

Weizhen Tan

SINGAPORE — Stocks across Asia-Pacific mostly declined on Tuesday, as Australia hiked its interest rate for the first time in more than a decade.

Australia's S&P/ASX 200 declined 0.42% to close at 7,316.20 and the Australian dollar last declined to $0.7090, after jumping to levels around $0.7121 following the hike.

Australia's central bank said Tuesday the cash rate will be increased by 25 basis points to 0.35% — the first rate hike since November 2010.

The hike was larger than the analyst estimate for 15 basis points to 0.25%, according to the median forecast of a Reuters poll of 32 economists.

In other markets, Hong Kong's Hang Seng index edged down 0.1% in the last hour of trade. Shares of Alibaba earlier fell more than 9%, before last paring losses to decline 1.37%.

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The stock had fallen following unconfirmed rumors that linked the company's founder Jack Ma to a national security investigation. Chinese state media reported that the Hangzhou security bureau on April 25 took "criminal coercive measures" on an individual with the last name Ma over suspicion of using the internet to endanger national security.

CNBC was unable to confirm the Chinese report. Alibaba and the Jack Ma Foundation did not immediately respond to a request for comment.

U.K.-based bank HSBC's stock in Hong Kong rose about 2% in the afternoon. On Friday, Reuters reported HSBC's top shareholder Chinese insurance giant Ping An called for the bank's break-up.

Ronald Wan, non-executive chairman at Partners Financial Holdings, told CNBC's "Street Signs Asia" on Tuesday: "When we look at this matter, we need to add in some sort of a political element as well."

"Definitely the Hong Kong operation can be operating independently ... separated from other parts of operation. I think it can follow the instruction of the government ...more correctly," Wan said. "For the global investors, I think they need to make a decision whether they should accept this ... separation or spinoff."

Over in South Korea, the Kospi fell 0.26% to finish at 2,680.46. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.32%.

Several markets are closed in the region for holidays, including China, Japan, Singapore and India. Hong Kong will return to trade from a holiday on Monday.

Over in Europe, shares in the region abruptly fell on Monday, driven by a brief crash in Swedish markets. It was caused by a single sell order trade from Citigroup, reportedly tied to a wrong calculation relating to a Nasdaq index that involved Swedish stocks.

In U.S. stocks, the S&P 500 and Nasdaq Composite hit new lows for the year before closing in positive territory for the day.

The Nasdaq Composite rose 1.63% to 12,536.02, while the S&P 500 rose 0.57% to 4,155.38. The Dow Jones Industrial Average gained 84.29 points, or 0.26%, to close at 33,061.50. The Dow was down more than 500 points at its session lows.

The yield on the benchmark U.S. 10-year Treasury note rose about 11 basis points to 2.994% on Monday, hitting a high of 3.01% during the session — the highest since Dec. 3, 2018.

Financial markets expect the U.S. central bank on Wednesday to announce a half-percentage point increase in the Fed's benchmark interest rate. 

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.626, rising from levels around 103.4 earlier.

The Japanese yen traded at 130.23 per dollar, as it stayed at levels weaker than 129.

Oil prices declined in the afternoon of Asia trading hours, with international benchmark Brent crude futures falling 0.87% to $106.61 per barrel. U.S. crude futures lost 0.85% to trade at $104.26 per barrel.

— CNBC's Evelyn Cheng contributed to this report.

_____________________________________________________________________________

 Europe


European stocks close higher after 'flash crash'; German 10-year yield tops 1%

Elliot Smith

LONDON — European markets closed mostly higher on Tuesday, attempting to claw back Monday’s sharp losses, as investors monitored earnings and key monetary policy decisions around the world.

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSE 100*FTSE 7561.3316.780.221078045022
DAX*DAX14039.47100.40.7286472680
CAC 40 IndexCAC6476.1850.570.7983360013

The pan-European Stoxx 600 closed up 0.5%, with oil and gas shares adding over 4% to lead the gains as most sectors and major bourses finished in positive territory.

Corporate earnings continued to drive Europe’s most significant individual share price movement. German raw materials company Covestro fell 4.9% after cutting its guidance while Danish facility management company ISS gained 13.6% after strong first-quarter results.

Germany’s 10-year bund yield rose above 1% on Tuesday morning for the first time since 2015, just two months after it was below zero. Yields move inversely to prices.

Last week, data showed euro zone inflation reaching a fresh record high of 7.5% in April, piling further pressure on the European Central Bank to hike interest rates in line with more hawkish stances from the U.S. Federal Reserve and Bank of England.

European markets closed sharply lower a day earlier as investors digested weak economic data out of China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.

Focus will turn this week to monetary policy decisions from major central banks, with the U.S. Federal Reserve expected to announce a half-percentage point increase to its benchmark interest rate on Wednesday. Market fears have been mounting as to how aggressive policymakers will have to be in order to rein in inflation.

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Australia on Tuesday hiked its interest rate for the first time in more than a decade as consumer prices surge.

U.S. stocks were higher in morning trade on Tuesday after a volatile session Monday. Wall Street is coming off a brutal April, the worst since March 2020 for the S&P 500 and the Dow.

Global investors continue to monitor the war in Ukraine and its geopolitical implications, with EU leaders set to work on a Russian oil embargo this week.

__________________________________________________________________________________

US MARKET

 
cnbc.com

Stocks rise for second straight day ahead of expected Fed hike

Jesse Pound, Sarah Min

U.S. stocks rose slightly on Tuesday as investors looked forward to a pivotal Federal Reserve decision.

The S&P 500 rose 0.48% to 4,175.48. The Dow Jones Industrial Average gained 67.29 points, or 0.20%, to close at 33,128.79. The tech-heavy Nasdaq Composite added 0.22% to finish at 12,563.76.

Tuesday’s gains built on a late rally from the previous session, which saw all three major averages erase sizable losses to close higher for the day.

“For the first time in several days, sellers appear exhausted, and shorts are a bit nervous than longs (there aren’t many people who feel ‘the’ bottom is in, but even bears are anxious about a sharp rebound rally),” Adam Crisafulli of Vital Knowledge said in a note to clients.  

Those positive moves for stocks come ahead of a widely anticipated Federal Reserve decision on Wednesday.

Wall Street is largely expecting the central bank to raise rates by 50 basis points this week, while some investors believe expectations of aggressive monetary tightening from the central bank are already priced into markets.

Billionaire hedge fund manager Paul Tudor Jones said on CNBC’s “Squawk Box” Tuesday that, with the Fed tightening and signs that the economy is slowing, capital preservation should be the main goal for investors.

“You can’t think of a worse environment than where we are right now for financial assets. Clearly you don’t want to own bonds and stocks,” Jones said.

Tuesday’s gains were broad in the S&P 500, but led by the energy sector. Exxon Mobil added more than 2%, and EOG Resources rose 3.8%. Defensive sectors such as health care and utilities also outperformed, with Pfizer gaining nearly 2% after reporting a stronger-than-expected first quarter.

Financials were another bright spot, with JPMorgan and Morgan Stanley each rising more than 2%.

Stocks are coming off a brutal stretch of weeks. April was the worst month since March 2020 for the Dow and S&P 500. It was the worst month for the Nasdaq since 2008.

“We think the data continues to paint a picture of extreme fear and a contrarian opportunity for longer-term investors, even though there is scope for further movement/more downside in the very near term on some gauges,” RBC strategist Lori Calvasina said in a note to clients.

The S&P 500 is trading in correction territory, down about 13% from its record highs, but the size and length of this drawdown is in line with historical corrections, according to LPL Financial.

The expected rate hike comes as there are growing concerns about the global economy, due in part to China’s lockdowns and the war in Europe.

“Markets continue to be hostage to the China Covid-19 response and the geopolitics, which are overshadowing what is still a very resilient fundamental picture,” JPMorgan strategist Mislav Matejka said in a note to clients.

The benchmark 10-year Treasury yield retreated after hitting a new milestone on Monday. The bond yield hit 3.01% during the previous session, its highest point since December 2018, but fell back below the 3% level on Tuesday.

Corporate earnings reports were spurring individual stock moves on Tuesday.

Chegg’s stock price plummeted roughly 30% after the textbook company issued weak guidance for the full year despite exceeding earnings expectations. Expedia and Hilton tumbled 14% and about 4.2%, respectively, after their quarterly reports.

On the positive side, shares of Clorox rose nearly 3% after the company’s fiscal third-quarter results topped expectations. Chemical stock Chemours surged more than 17% after the company raised its guidance and showed success raising prices.

There were some positive signs for the economy on the data front. Factory orders for March rose 2.2%, better than expected. Job openings came in at 11.5 million, an all-time high.

 

 

Apr 21, 2022

How did Asia-Pacific, Europe , and US Markets Close on Thursday, April 21, 2022:

 ASIA-PACIFIC MARKETS

 

Source: cnbc.com

Mainland Chinese markets tumble more than 2%, leading losses in mixed Asia trading day

Eustance Huang

SINGAPORE — Shares in Asia-Pacific were mixed on Thursday as investors continued to watch China's Covid situation along with moves in the Japanese yen.

Chinese stocks led losses regionally, with the Shanghai composite shedding 2.26% to 3,079.81 while the Shenzhen component fell 2.703% to 11,084.28.

Shares of Chinese oil firm CNOOC, however, soared more than 27% from their issue price as they made their Shanghai debut. CNOOC's Hong Kong-listed shares, on the other hand, declined 2.51%.

Hong Kong's Hang Seng index slipped 1.25% to close at 20,682.22.

Investors watched for signs of policy support from Chinese authorities as the mainland continues to grapple with its most severe Covid wave since the initial outbreak in 2020. Its strict zero-Covid policy has raised questions about China's economic outlook.

China remains "well-positioned to further stimulate growth," especially when inflation is "not really an issue" currently in the country, said Thomas Rupf, head of trading execution and chief investment officer Asia at VP Bank in Singapore.

"The main priority is clearly now on the Covid side," Rupf told CNBC's "Squawk Box Asia" on Thursday. "We expect over the next few months, more targeted measures also on the infrastructure side and they still have room to also reduce rates slightly as well."

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The Nikkei 225 in Japan gained 1.23% on the day to 27,553.06 while the Topix index advanced 0.67% to 1,928. South Korea's Kospi climbed 0.35% to close at 2,728.21.

In Australia, the S&P/ASX 200 nudged 0.31% higher to end the trading day at 7,592.80.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.37%.

Yen watch

The Japanese yen traded at 128.13 per dollar after strengthening from levels above 129 against the greenback yesterday.

Still, the Japanese currency remains weaker as compared with levels below 126 seen against the dollar last week. The yen has struggled for weeks against the dollar amid expectations the Bank of Japan will be slower in normalizing monetary policy than the U.S. Federal Reserve.

"Buying on dips will remain the theme so long as the Fed retains its hawkish rhetoric, and the BOJ continues with its unlimited bond-buying," OCBC Treasury Research's Frances Cheung and Terence Wu wrote in a Thursday note.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.952 following a recent drop from around 101.

The Australian dollar changed hands at $0.7451, still higher than levels below $0.736 seen earlier this week.

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures up 1.65% to $108.56 per barrel. U.S. crude futures climbed 1.51% to $103.73 per barrel.

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EUROPE MARKETS 

 

Source: cnbc.com

European stocks close higher as traders track earnings and Ukraine developments

Holly Ellyatt

LONDON — European stocks closed higher Thursday as investors digested a fresh batch of corporate results and kept an eye on developments in the war between Russia and Ukraine.

The pan-European Stoxx 600 index closed up by 0.4%, with industrials rising 1.9% to lead the gains as most sectors and bourses finished in positive territory.

Earnings was the big driver of individual share price movement Thursday. Finnish mining services firm Metso Outotec was the top performer of the day, climbing more than 11% after reporting strong first-quarter orders.

AkzoNobel shares climbed almost 7% after the Dutch paints and coatings maker reported stronger-than-expected quarterly earnings. The company said higher pricing helped to offset cost pressures resulting from supply chain issues, China's Covid resurgence and the war in Ukraine.

At the opposite end of the benchmark, Kinnevik plunged nearly 10% after the Swedish investment firm posted a 6% decline in its net asset value.

In geopolitical news, the war in Ukraine remains at the forefront of market participants' minds in Europe, with the second phase of the conflict, focusing on the Donbas region in eastern Ukraine, fully underway now.

Russia has set a new ultimatum for surrender in the heavily destroyed city of Mariupol, where Ukrainian forces and reportedly hundreds of civilians are holed up in the Azovstal steel plant. Meanwhile, officials in Ukraine continue to call for more weapons support and faster delivery as Russia intensifies its bombardment of the Donbas.

The Ukraine War has catalysed a tsunami of negative economic events around the global economy – and markets are remaining pretty much blind to the long-term consequences.

Bill Blain

Strategist at Shard Capital

U.S. President Joe Biden on Thursday authorized a further $1.3 billion in security and direct economic assistance to Ukraine. Follow CNBC's live blog for the latest developments in Ukraine.

On Wall Street, U.S. stocks rose as investors digested more quarterly reports from the likes of Tesla and United Airlines. Weekly jobless claims came in slightly higher than expected Thursday.

Investors are now awaiting a speech from Federal Reserve Chair Jerome Powell, who will talk at 1 p.m. ET during the International Monetary Fund Debate on the Global Economy. The discussion will be moderated by CNBC's Sara Eisen.

_______________________________________________________________________________

US MARKET

 

Source: cnbc.com

Nasdaq slides 2%, Dow falls more than 350 points in sharp reversal as rising rates weigh on stocks

Fred Imbert, Tanaya Macheel, Hannah Miao

Stocks fell Thursday in a sharp reversal, as a jump in Treasury yields offset the optimism coming from another batch of solid corporate earnings.

The Dow Jones Industrial Average traded lower by 368.03 points, or 1.05%, to close at 34,792.76. The S&P 500 dropped 1.48% to 4,393.66, and the Nasdaq Composite slid 2.07% to 13,174.65.

The major averages were all up sharply earlier in the day, as traders cheered strong quarterly earnings. The Dow was up as much as 331 points, or 0.9%; the S&P 500 and Nasdaq each jumped more than 1% at their highs of the day.

Treasury yields were up sharply on the day, with the benchmark 10-year rate trading above 2.9% for much of the session — near its highest level since late 2018.

Loading chart...

The 10-year started the year near 1.5% and has shot up as the Federal Reserve tightens monetary policy to get a hold of soaring prices in the U.S.

"Although we expect inflation to peak very soon, if it hasn't already done so, continued supply chain disruptions and a slow increase in labor force participation due to retirements and continued concerns over Covid, could easily keep the inflation rate more than double the Fed's 2% target," wrote Joseph Kalish, chief global macro strategist at Ned Davis Research.

"As a result, the Fed may need to hike rates more than the peak 3.25% to 3.50% range currently priced into the markets a year from now," he added.

Thursday's move in rates came as Fed Chairman Jerome Powell signaled that bigger rate hikes may be coming next month.

Speaking at the International Monetary Fund Debate on the Global Economy on Thursday afternoon, Powell said it is "appropriate in my view to be moving a little more quickly" to raise interest rates. "I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. ... I would say 50 basis points will be on the table for the May meeting."

However, many high profile investors are skeptical that the Fed can get inflation under control without causing economic damage.

"They're going to need three times — skill, time and luck — to get to a soft landing," Allianz chief economic advisor Mohamed El-Erian said on "Closing Bell."

Thursday's sell-off was broad, but some strong individual moves after earnings helped keep the major indexes from even sharper declines.

Energy and materials stocks were a weakness for the market on Thursday, with Mosaic falling 9.4% and Chevron losing 4.6%. Clean energy stocks also struggled, with the Invesco Solar ETF sliding nearly 7%.

Notable declines in the tech sectors came from Nvidia, falling about 6%, and Netflix and Alphabet, losing 3.5% and 2.5%, respectively. Elsewhere on Wall Street, Warner Bros. Discovery retreated 6.9% after news of the company shutting down CNN+.

Earnings

Investors also pored over the latest quarterly reports, which included stronger-than-expected numbers from Tesla.

Tesla shares jumped more than 3% after its first-quarter numbers beat analyst expectations, thanks in part to strong car deliveries. Several analysts lauded Tesla after the release, with one calling it a "core holding." The stock did close well off its highs of the session, however.

Airlines were another bright spot. United added roughly 9% after the airline forecasted a profit in 2022. CEO Scott Kirby told CNBC on Wednesday he'd never seen "such a hockey stick increase of demand," referring to business travel and leisure bookings. American rose 3.8% after projecting a pre-tax profit for the second quarter.

More than 17% of S&P 500 companies have reported earnings through Thursday's open, with nearly 81% of those names beating analyst expectations, according to FactSet.

"I'm cautiously optimistic that earnings will keep beating, with a couple of outliers," Jeff Kilburg, chief investment officer, at Sanctuary Wealth, told CNBC.

"'Boring' names – American staple names that we forgot about – are doing better than expected," he continued, citing IBM as an example. "It's a big divergence from sentiment, especially with the 10-year [Treasury yield] nearly doubling. The shift from growth to value is really hitting its stride."

With Thursday's declines, the Nasdaq Composite is now down 1.3% for the week, while the S&P 500 is clinging to a marginal gain. The Dow is up about 1% for the week.

— CNBC's Jesse Pound contributed to this report.

 

Nov 26, 2021

Asia-Pacific, Europe & U. S. Markets Closing on Friday, November 26, 2021.

cnbc.com

ASIA  


Japan, Hong Kong drop more than 2% each as Asia-Pacific markets slip amid renewed Covid fears

Eustance Huang

SINGAPORE — Shares in Asia-Pacific dropped on Friday, with stocks in Hong Kong and Japan leading losses regionally as fears of a new Covid variant weighed on investor sentiment.

World Health Organization officials said Thursday they are monitoring a new variant with "a large number of mutations." A special meeting is scheduled for Friday to discuss its implications for vaccines and treatments.

Hong Kong's Hang Seng index saw sharp losses on Friday, falling 2.67% to close at 24,080.52. The variant has been detected in Hong Kong, according to South Africa's Minister of Health Joe Phaahla.

The Nikkei 225 in Japan dropped 2.53% to close at 28,751.62 while the Topix index fell 2.01% to 1,984.98. Shares of SoftBank Group plummeted 5.19% following a Bloomberg report that Chinese regulators have asked Didi, which the Japanese conglomerate holds a sizable stake in, to delist from the U.S.

In mainland China, the Shanghai composite declined 0.56% to close at 3,564.09 while the Shenzhen component finished the trading day 0.342% lower at 14,777.17.

South Korea's Kospi closed 1.47% lower at 2,936.44.

The S&P/ASX 200 in Australia fell 1.73% on the day to 7,279.30. Australia's retail sales in October jumped 4.9% month-on-month, seasonally adjusted, according to official estimates released Friday. That was far higher than the 2.5% increase predicted in a Reuters poll.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 2.18%.

Yen strengthens amid flight to safety

The Japanese yen, widely seen as a safe-haven currency, strengthened in Friday trading as investors scrambled for cover. The yen last traded at 114.07 per dollar, as compared with levels above 115 seen earlier against the greenback.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.608 — still above levels below 96.5 seen earlier in the trading week.

The South African rand weakened more than 2% against the greenback, last trading at 16.3177 per dollar.

The Australian dollar fell to $0.7118, extending losses following yesterday's drop from levels above $0.72.

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Oil drops more than 4%

Oil prices were lower in the afternoon of Asia trading hours, with international benchmark Brent crude futures down 4.38% to $78.62 per barrel. U.S. crude futures slipped 5.17% to $74.34 per barrel.

Travel stocks in Asia-Pacific fell on Friday amid the renewed Covid fears.

In Australia, Qantas Airways shares dropped 5.48% while Hong Kong-listed shares of Cathay Pacific slipped 4.11%. Shares of Japan Airlines in Japan plunged 6.48%. Singapore Airlines' stock in Singapore declined 3.43% as of 4:13 p.m. local time.

Markets in the U.S. were closed on Thursday for the Thanksgiving holiday.

_______________________________________________________________________________

EUROPE


European stocks close down 3.7% amid concerns over new Covid variant; worst day since June 2020

Elliot Smith, Matt Clinch

The pan-European Stoxx 600 closed down 3.7%, with travel and leisure stocks cratering 8.8% to lead losses as all sectors and major bourses slid sharply into negative territory. The benchmark saw its biggest percentage decline since June 2020, according to Reuters data.

European investors were already monitoring the acute Covid crisis in the region amid rising infections that prompted a handful of countries to introduce new restrictions.

Italy announced Wednesday evening that it will introduce tighter measures and Germany has narrowly avoided another lockdown, with the incoming government reportedly wanting to wait to see if tighter Covid passport rules help to alleviate rising cases.

But overnight, concerns over a new variant of Covid started to rise, with the U.K. suspending flights from six countries in southern Africa. The new Covid variant has more than 30 mutations to the spike protein, according to South African scientists, and the WHO is holding a special meeting Friday to discuss what it may mean for vaccines and treatments.

Cases have so far been reported in South Africa, Botswana, Israel, Hong Kong and Belgium.

To be sure, the U.N. health agency has said it will take weeks to understand how the variant may impact diagnostics, therapeutics and vaccines.

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On Wall Street, stocks dropped sharply with the Dow Jones Industrial Average dropping 1,000 points, or 2.8%, for its worst day of the year, while the S&P 500 and Nasdaq indexes fell 2.3% and 2.2%, respectively.

Friday is a shortened trading day stateside because of the Thanksgiving holiday, with U.S. markets set to close at 1 p.m. ET.

Shares in Asia-Pacific were also hit hard on Friday, with Hong Kong's Hang Seng index and Japan's Nikkei 225 both shedding more than 2.5% to lead losses.

Read more: A heavily-mutated Covid variant emerges in southern Africa: Here's what we know so far

Pharma stocks climb, travel plummets

At the bottom of the Stoxx 600, British-American cruise operator Carnival plunged more than 16% on the back of the variant news, leading a broad decline for travel and leisure stocks that also saw the likes of British Airways parent IAG, Tui, Rolls-Royce and Airbus tumble.

On the opposite end of the benchmark, Swiss online pharmacy Zur Rose Group and Luxembourg-based lab testing company Eurofins Scientific climbed 8.6% and 7.9%, respectively.

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U. S. 


Dow tumbles 900 points for worst day of year on fears of new Covid variant, S&P 500 drops 2%

Eustance Huang, Jesse Pound

Johannes Eisele | AFP | Getty Images

U.S. stocks dropped sharply on Friday as a new Covid variant found in South Africa triggered a global shift away from risk assets.

The Dow Jones Industrial Average dropped 905.04 points, or 2.53%, for its worst day of the year, closing at 34,899.34. The S&P 500 lost 2.27% to close at 4,594.62, while the Nasdaq Composite slipped 2.23% to finish at 15,491.66. The Dow was down more than 1,000 points at session lows.

The downward moves came after World Health Organization officials on Thursday warned of a new Covid-19 variant that's been detected in South Africa. The new variant contains more mutations to the spike protein, the component of the virus that binds to cells, than the highly contagious delta variant. Because of these mutations, scientists fear it could have increased resistance to vaccines, though WHO said further investigation is needed. On Friday, the WHO deemed the new strain a variant of concern and named it omicron.

The United Kingdom temporarily suspended flights from six African countries due to the variant. Israel barred travel to several nations after reporting one case in a traveler. Two cases were identified in Hong Kong. Belgium also confirmed a case.

"When I read that there's one [case] in Belgium and one in Botswana, we're going to wake up next week and find one in this country. And I'm not going to recommend anyone buy anything today until we're sure that isn't going to happen, and I can't be sure that it won't," CNBC's Jim Cramer said.

Bond prices rose and yields tumbled amid a flight to safety. The yield on the benchmark U.S. 10-year Treasury note fell 15 basis points to 1.49% (1 basis point equals 0.01%). This was a sharp reversal, as yields jumped earlier in the week to above 1.68% at one point. Bond yields move inversely to prices.

Asia markets were hit hard in Friday trade, with Japan's Nikkei 225 and Hong Kong's Hang Seng index both falling more than 2%. Germany's Dax index slid more than 4%. Bitcoin fell 8%.

The Cboe Volatility Index, often referred to as Wall Street's "fear gauge," rose to 28, its highest level in two months. Oil prices also tumbled, with U.S. crude futures down 12% and breaking below $70 per barrel.

Travel-related stocks were hit hardest, with Carnival Corp. and Royal Caribbean down 11% and 13.2%, respectively. United Airlines dropped more than 9%, while American Airlines dropped 8.8%. Boeing lost more than 5%, and Marriott International fell nearly 6.5%.

Bank shares retreated on fears of the slowdown in economic activity and the retreat in rates. Bank of America dropped 3.9%, and Citigroup slid 2.7%.

Industrials linked to the global economy declined, led by Caterpillar, off by 4%. Chevron dropped 2.3% as energy stocks reacted to the rollover in crude prices.

On the flip side, investors huddled into the vaccine makers. Moderna shares surged more than 20%. Pfizer shares added 6.1%.

Some of the stay-at-home plays that gained in the earlier months of the pandemic were higher again. Zoom Video and Peloton each added more than 5%.

Friday was a shortened trading day because of the Thanksgiving holiday with U.S. markets closing at 1 p.m. ET. Holiday weeks often have relatively light trading volume, which can amplify moves in the market.

"It's important to stress that very little is known at this point about this latest strain, including whether it can evade vaccines or how severe it is relative to other mutations. Therefore, it's hard to make any informed investment decisions at this point," Bespoke Investment Group's Paul Hickey said in a note to clients. "Historically speaking, chasing a rally or selling into a sharp decline (especially on a very illiquid trading day) rarely ends up being profitable, but that isn't stopping a lot of people this morning."

Several investment professionals told CNBC on Friday that the sell-off could be a buying opportunity.

"Friday is the day after Thanksgiving — probably not as many traders on the desks, with an early close today. So potentially lower liquidity is causing some of the pullback," Ajene Oden of BNY Mellon Investor Solutions said on CNBC's "Squawk Box." "But the reaction we're seeing is a buying opportunity for investors. We have to think long term."

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Markets were closed Thursday for Thanksgiving and had been split earlier in the week, with the tech-heavy Nasdaq underperforming amid an upward trend in Treasury yields.

The Nasdaq finished the week down 3.5%, while the S&P 500 and Dow slumped by 2.2% and 2%, respectively.

Jun 4, 2021

Asia-Pacific Markets at Close Report: Asia-Pacific Makets Mixed, The Reserve Bank of Indiab(RBI) Hrld Steady on Interest Rates.

Source: cnbc.com

Eustance Huang


SINGAPORE — Shares in Asia-Pacific were mixed on Friday, as the Reserve Bank of India held steady on interest rates.

Hong Kong's Hang Seng index closed 0.17% lower at 28,918.10. In mainland China, the Shanghai composite rose 0.21% on the day to 3,591.84 while the Shenzhen component gained 0.744% to close at 14,870.91.

In Japan, the Nikkei 225 fell 0.4% to close at 28,941.52 while the Topix index finished the trading day fractionally higher at 1,959.19. South Korea's Kospi closed 0.23% lower at 3,240.08.

Meanwhile, stocks in Australia advanced, with the S&P/ASX 200 0.49% higher on the day to 7,295.40.

Shares in India were lower in Friday trade, with the Nifty 50 declining 0.41% and the BSE Sensex falling 0.51%, as of 1:49 p.m. local time. The moves came after the Reserve Bank of India on Friday announced its decision to keep interest rates steady.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.25%.

Tech stock watch

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.551 after a recent climb from below 90.3.

The Japanese yen traded at 110.17 per dollar, weaker than levels below 110 seen against the greenback yesterday. The Australian dollar changed hands at $0.7663, lower than levels above $0.772 seen earlier in the week.

Oil prices rose in the afternoon of Asia trading hours, with international benchmark Brent crude futures 0.45% higher at $71.63 per barrel. U.S. crude futures advanced 0.51% to $69.16 per barrel.

Feb 25, 2019

The U.S. wants North Korea to follow the ‘miracle’ of Vietnam’s path. It might be disappointed.

By Simon Denyer




War veteran Duong Van Dau walks between rows of headstones at a memorial for fallen North Korean pilots in Bac Giang province, Vietnam. (Hau Dinh/AP)

Simon Denyer
Tokyo bureau chief covering Japan, North Korea and South Korea.
VAN TAN, Vietnam — In a grove of trees outside this village north of Hanoi, a small memorial serves as a reminder of the era when North Korea and North Vietnam stood together against “American aggression,” as the war was known here. 
Fourteen headstones mark the original resting place of officers and men from the Korean People’s Army, most of them North Korean fighter pilots who secretly flew for the North Vietnamese air force and lost their lives between 1965 and 1968. 
“We considered each other brothers in the battle against American imperialism,” said Do Thi Hoa, 75, a former Vietnamese ambassador to North Korea.
When President Trump meets North Korean leader Kim Jong Un in Hanoi this week to discuss rapprochement and denuclearization, Washington will point to their host country as a model: Transforming itself since the war, Vietnam “took the plunge into the big ocean” of global trade, in its own words, to become a vibrant, fast-growing market economy that enjoys a close relationship with its former American foes.
“In light of the once-unimaginable prosperity and partnership we have with Vietnam today, I have a message for Chairman Kim Jong Un: President Trump believes your country can replicate this path,” Secretary of State Mike Pompeo said on a trip to Vietnam in July. 
“It’s yours if you’ll seize the moment. The miracle could be yours; it can be your miracle in North Korea as well.”
In Hanoi’s Museum of Military History, the wreckage of B-52s shot down by the Vietnamese is displayed as a reminder of the American bombs that rained down on the city. 
But while North Koreans are still taught to hate “cunning American wolves,” Vietnamese people have embraced Hollywood, KFC and the American Dream. 
More than four decades since the end of the Vietnam War, an astounding 84 percent of Vietnamese people had a favorable view of the United States in 2017, according to the Pew Research Center, higher than any other foreign country surveyed and just one percentage point below the 85 percent of Americans holding a similar view. 
It is enticing to think that North Korea could transform in a similar way, but it is hardly realistic, many experts say.
North Korea’s relationship with Vietnam collapsed in the 1970s, when Kim Il Sung threw his backing behind genocidal Cambodian leader Pol Pot, who loathed Vietnam. Hanoi’s subsequent invasion of Cambodia to overthrow Pol Pot set it at loggerheads with North Korea. The Vietnamese embassy in Pyongyang shrank from 20 staff members to seven, Do said.

Portraits of the late North Korean leader Kim Il Sung, left, and Vietnam’s Ho Chi Minh decorate a classroom wall of the Vietnam-North Korea Friendship Kindergarten in Hanoi. (Manan Vatsyayana/AFP/Getty Images)
As Vietnam embraced market reforms and established diplomatic relations with the United States, the fanatical rulers of Pyongyang saw more betrayal.
“They never said it officially, but we all understood they were not happy when we started to make friends with our previous enemy,” Do said.
But it is not only Vietnam’s relationships with North Korea and the United States that have been upended since the mid-1970s.
An hour’s drive west of that largely forgotten memorial to North Korean pilots, there is a potent symbol of Vietnam’s transformation: a massive Samsung factory complex that employs more than 60,000 people. At its center, a huge, windowless building surrounded by fences, watchtowers and dormitories — designed not to keep workers from escaping but to keep industrial spies out.
South Korean conglomerate Samsung makes a third of its global production in Vietnam, has invested more than $17 billion here and accounts for a quarter of Vietnam’s total exports. South Korea was Vietnam’s second-largest foreign direct investor in 2018, after Japan.
North Korea was the third nation to grant North Vietnam diplomatic recognition in 1950, after the Soviet Union and China, but today, Hanoi’s relationship with Seoul is far deeper than it ever was with Pyongyang. It is founded not just on business, but also on tourism and culture, said Pham Hong Thai at the Vietnamese Academy of Social Sciences, a government think tank. K-pop and K-dramas are popular here.
When Kim Jong Un visits this week, he may promote the idea that his country will follow the Vietnamese path.
Japanese newspaper Sankei Shimbun predicts he will visit a Samsung factory, while the South Korean government also says he is interested in Vietnam’s economic model. 

Tuan Duong Beauty Academy in Hanoi offers free haircuts to anyone wanting to copy the hairstyles of President Trump and Kim Jong Un. (Linh Pham/Getty Images)
North Korean Foreign Minister Ri Yong Ho visited Vietnam in December during a four-nation tour, stopping at Ho Chi Minh’s mausoleum, an academy of agricultural sciences and the picturesque Haiphong Bay. Other North Korean officials have also come to learn from Vietnam’s experience in mining and fisheries, and its success in attracting foreign investment, Pham said.
It is also rumored that Kim will visit Halong Bay, as his grandfather Kim Il Sung did in 1964, but not only to wonder at its emerald seas and limestone karst formations: He is desperately keen to develop a tourism project at Wonsan, a port city on his country’s eastern coast.
While it is clear that Kim would like to establish some carefully walled-off tourism and economic development zones — and learn from Vietnam’s experience — there is a vast difference between that and truly reforming the country’s economy. 
“North Korea’s publicly demonstrated interest in Vietnam’s experience is somewhat for show,” said Leif-Eric Easley, a professor at Ewha Womans University in Seoul. “It is meant to attract international support for North Korea’s economy, even if the Kim regime remains set on minimizing foreign influence in the country and may not intend to denuclearize.” 
Indeed, North Korea’s tolerance of private traders and markets has been matched by reports of a renewed crackdown on foreign cultural influences, such as videos of South Korean dramas and movies.
“Whatever happens with economic development, the government will be very, very, very careful to remain in control,” said Benjamin Katzeff Silberstein, a nonresident fellow at the Stimson Center think tank. “They would rather stay poor than lose power.”
Vietnam’s economic transformation has been enabled by granting its people significant freedoms — to travel, to trade, to communicate with and learn from foreigners — just as China’s success came by unleashing its people’s entrepreneurial ability.
To get rich is glorious,” goes the phrase commonly attributed to Chinese leader Deng Xiaoping. Yet it is impossible to imagine Kim Jong Un making such a bold statement because that would make South Korea roughly 20 times as glorious as the North. Vietnam’s communists were in a much stronger position to undertake risky economic restructuring because they had unified the country before doing so.
Silberstein warns against wishful thinking when it comes to North Korea, as well as the urge to suggest the country will simply follow another nation’s model. 
“Can they learn from Vietnam? Absolutely. And from China? Definitely. But are there things particular to North Korea that will remain particular to North Korea? Definitely,” he said. “It’s a unique country in the level of social control. So why couldn’t it follow a unique combination of economic development under a very, very rigid dictatorship that still controls the flow of information?”
By throwing open the doors to trade and investment, Vietnam’s Communist Party also ceded significant control to global capital, said Go Myong-Hyun, an economist at the Asan Institute for Policy Studies in Seoul. “Capital comes with a lot of baggage, a lot of terms of use,” he said.
Products branded “Made in North Korea” would not be attractive in the global marketplace as long as the country runs prison camps, for example. 
The remains of the 14 North Koreans in Van Tan were repatriated in 2002.
Do was among hundreds of young North Vietnamese who studied in Pyongyang in the 1960s, before being recruited to join the Vietnamese embassy and rising to serve as ambassador. She says Vietnam is still grateful for the support it received from North Korea at that time. 
Young Vietnamese, however, look not to the brutal cultists in Pyongyang but to the opportunities represented by the United States and South Korea. For the young people of North Korea, there are, as yet, no such signposts.

Workers plant trees and flowers on Giang Vo street near the U.S. Embassy in preparation for the summit between Trump and Kim in Hanoi. (Linh Pham/Getty Images)
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