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Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that <a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">OPEC</a> and other countries may agree to extend production cuts in a bid to support prices.

Brent was up 26 cents, or 0.4 per cent, at $62.85 a barrel by 0349 GMT, while US&nbsp;crude was 27 cents, or 0.5 per cent, higher at $58.12 a barrel. Brent touched its highest since August 1, while US crude rose to the highest since July 31.

US oil gained more than 2 per cent&nbsp;on Monday, while Brent finished the day 1.7 per cent&nbsp;higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of <a href="https://www.wionews.com/business-economy/saudi-arabia-replaces-aramco-chairman-ahead-of-potential-ipo-247313">Saudi Arabia</a>'s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term.

A meeting of OPEC and OPEC+ countries in Abu Dhabi this week "is stirring up hopes for additional supply cuts," said Stephen Innes, Asia Pacific market strategist at AxiTrader.&nbsp;

Still, Russia's oil output in August exceeded its quota under the OPEC+ agreements.

"Markets will need to see concrete progress on the production front, even as the world's economy slows, to sustain gains," said Jeffrey Halley, senior market analyst at OANDA.

Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the US-China trade war rumbles on.

Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the US-China trade war and increasing US supplies.

In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday. 
Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices.

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices. Brent was up 26 cents, or 0.4 per cent, at $62.85 a barrel by 0349 GMT, while US crude was 27 cents, or 0.5 per cent, higher at $58.12 a barrel. Brent touched its highest since August 1, while US crude rose to the highest since July 31. US oil gained more than 2 per cent on Monday, while Brent finished the day 1.7 per cent higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday. Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained. He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term. A meeting of OPEC and OPEC+ countries in Abu Dhabi this week "is stirring up hopes for additional supply cuts," said Stephen Innes, Asia Pacific market strategist at AxiTrader. Still, Russia's oil output in August exceeded its quota under the OPEC+ agreements. "Markets will need to see concrete progress on the production front, even as the world's economy slows, to sustain gains," said Jeffrey Halley, senior market analyst at OANDA. Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the US-China trade war rumbles on. Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the US-China trade war and increasing US supplies. In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday. Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.

Oil hits six-week high on hopes of extended OPEC output cuts

The country's largest lender State Bank of India (SBI) on Monday announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 basis points across all tenors.

The one-year MCLR will come down to 8.15 per cent per annum from 8.25 per cent per annum from Tuesday. This is the fifth consecutive cut in MCLR in during the current financial year 2019-20.

"In view of the falling interest rate scenario and surplus liquidity, SBI also realigns its interest rate on term deposits from September 10," it said in a statement.

"The bank will slash retail term deposit rates by 20 to 25 basis points and bulk term deposit rates by 10 to 20 basis points across tenors."

SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country.

As on June 30, the bank has a deposit base of over Rs 28 lakh crore with current account savings account (CASA) ratio of 45.1 per cent and advances of over Rs 19 lakh crore. SBI has about 35 per cent and 36 per cent of market share in home loans and auto loans respectively.

The bank has the largest network of 22,088 branches in India and an ATM/CDM network of over 58,495.

The number of customers using internet banking facility is more than 66 million and mobile banking services stand at 14.8 million. Downloads for YONO -- an integrated digital and lifestyle platform by SBI -- are over 23 million with more than 16 million logins per day.

On social media platforms, SBI has the highest number of followers on Facebook, YouTube, LinkedIn and Pinterest. The bank tops the list of followers on Facebook and YouTube across all banks worldwide, according to the statement.

The country's largest lender State Bank of India (SBI) on Monday announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 basis points across all tenors.

The country's largest lender State Bank of India (SBI) on Monday announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 basis points across all tenors. The one-year MCLR will come down to 8.15 per cent per annum from 8.25 per cent per annum from Tuesday. This is the fifth consecutive cut in MCLR in during the current financial year 2019-20. "In view of the falling interest rate scenario and surplus liquidity, SBI also realigns its interest rate on term deposits from September 10," it said in a statement. "The bank will slash retail term deposit rates by 20 to 25 basis points and bulk term deposit rates by 10 to 20 basis points across tenors." SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country. As on June 30, the bank has a deposit base of over Rs 28 lakh crore with current account savings account (CASA) ratio of 45.1 per cent and advances of over Rs 19 lakh crore. SBI has about 35 per cent and 36 per cent of market share in home loans and auto loans respectively. The bank has the largest network of 22,088 branches in India and an ATM/CDM network of over 58,495. The number of customers using internet banking facility is more than 66 million and mobile banking services stand at 14.8 million. Downloads for YONO -- an integrated digital and lifestyle platform by SBI -- are over 23 million with more than 16 million logins per day. On social media platforms, SBI has the highest number of followers on Facebook, YouTube, LinkedIn and Pinterest. The bank tops the list of followers on Facebook and YouTube across all banks worldwide, according to the statement.

SBI reduces MCLR and interest rates on time deposits across all maturities

Equity benchmark indices were in the negative territory during early hours on Monday, dragged by a substantial fall in auto and metal stocks, despite their Asian peers showing gains.

At 10 am, the BSE S&amp;P Sensex was down by 53 points at 36,928 while the Nifty 50 lowered by 13 points to 10,933.

At the National Stock Exchange, all sectoral indices were in the red except for Nifty FMCG and pharma which showed marginal gains. Nifty auto and metal both were down by 1.16 per cent.

Among stocks, auto major were the worst sufferers.

Tata Motors skidded by 2.5 per cent, Eicher Motors by 1.7 per cent, Maruti by 1.3 per cent and Bajaj Auto by 1 per cent.

Reports said a bleak revenue position has prompted the Goods and Services Tax (GST) fitment committee to hold back from approving any cut on the GST on cars from 28 to 18 per cent, as was demanded by the auto industry.

Metal stocks too took a hit.

JSW Steel and Tata Steel declined by 1.7 per cent each while Hindalco was down by 1.4 per cent and Vedanta by 1.3 per cent. Besides, IT major HCL Technologies and private lender IndusInd Bank were in the red.

However, UPL, Sun Pharma, Hindustan Lever, Indiabulls Housing Finance and Wipro were in the positive zone.

Meanwhile, Asian stocks moved up amid a cautious mood as investors hoped for stimulus to support growth in the world's major economies.

The MSCI's broadest index of Asia Pacific shares outside Japan added 0.1 per cent.

The Shanghai Composite Index was up by 0.4 per cent, South Korea's KOSPI rose by 0.7 per cent and Japan's Nikkei was up by 0.4 per cent. 
&nbsp;

Equity benchmark indices were in the negative territory during early hours on Monday, dragged by a substantial fall in auto and metal stocks, despite their Asian peers showing gains.

Equity benchmark indices were in the negative territory during early hours on Monday, dragged by a substantial fall in auto and metal stocks, despite their Asian peers showing gains. At 10 am, the BSE S&P Sensex was down by 53 points at 36,928 while the Nifty 50 lowered by 13 points to 10,933. At the National Stock Exchange, all sectoral indices were in the red except for Nifty FMCG and pharma which showed marginal gains. Nifty auto and metal both were down by 1.16 per cent. Among stocks, auto major were the worst sufferers. Tata Motors skidded by 2.5 per cent, Eicher Motors by 1.7 per cent, Maruti by 1.3 per cent and Bajaj Auto by 1 per cent. Reports said a bleak revenue position has prompted the Goods and Services Tax (GST) fitment committee to hold back from approving any cut on the GST on cars from 28 to 18 per cent, as was demanded by the auto industry. Metal stocks too took a hit. JSW Steel and Tata Steel declined by 1.7 per cent each while Hindalco was down by 1.4 per cent and Vedanta by 1.3 per cent. Besides, IT major HCL Technologies and private lender IndusInd Bank were in the red. However, UPL, Sun Pharma, Hindustan Lever, Indiabulls Housing Finance and Wipro were in the positive zone. Meanwhile, Asian stocks moved up amid a cautious mood as investors hoped for stimulus to support growth in the world's major economies. The MSCI's broadest index of Asia Pacific shares outside Japan added 0.1 per cent. The Shanghai Composite Index was up by 0.4 per cent, South Korea's KOSPI rose by 0.7 per cent and Japan's Nikkei was up by 0.4 per cent.

Equity indices in negative zone, auto and metal stocks falter

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies.

The drop comes after a surprise 3.3 per cent rebound in July despite the yearlong battle with Washington and weakening global demand.&nbsp;

But economists cited by Bloomberg had forecast a 2.2 percent rise ahead of the release of Sunday's figures by the customs administration.&nbsp;

China's trade surplus also dropped sharply in August to $34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6 percent on-year, matching the July figure.&nbsp;

Washington imposed new tariffs on September 1 as it stepped up its high-pressure campaign to coerce Beijing into a new trade deal.&nbsp;

The additional levies come on top of the 25 per cent tariffs on $250 billion in imports already in place.

China said Thursday that new talks with the US would be held in Washington in early October.&nbsp;

In a sign of continued pressure on the Chinese economy, Beijing's central bank announced Friday it would cut deposit reserve requirements for banks.

The measure would allow an estimated $126 billion in additional loans to businesses facing an economic slowdown.&nbsp;

China's GDP growth was 6.2 per cent on-year in the second quarter, the lowest rate in nearly three decades.

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies.

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies. The drop comes after a surprise 3.3 per cent rebound in July despite the yearlong battle with Washington and weakening global demand. But economists cited by Bloomberg had forecast a 2.2 percent rise ahead of the release of Sunday's figures by the customs administration. China's trade surplus also dropped sharply in August to $34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6 percent on-year, matching the July figure. Washington imposed new tariffs on September 1 as it stepped up its high-pressure campaign to coerce Beijing into a new trade deal. The additional levies come on top of the 25 per cent tariffs on $250 billion in imports already in place. China said Thursday that new talks with the US would be held in Washington in early October. In a sign of continued pressure on the Chinese economy, Beijing's central bank announced Friday it would cut deposit reserve requirements for banks. The measure would allow an estimated $126 billion in additional loans to businesses facing an economic slowdown. China's GDP growth was 6.2 per cent on-year in the second quarter, the lowest rate in nearly three decades.

China's exports fall in August as US trade war rumbles

Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.

Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music.

The long-rumoured Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies.

Kaola, launched by NetEase in 2015, aggressively targets shoppers in China by offering products from top brands such as Gucci, Shisheido and Burberry, primarily sourcing goods directly from suppliers to resell to consumers.

Its more curated product line up based on popularity ensures it a loyal consumer base of shoppers, whereas Alibaba's Tmall allows a larger range of overseas brands to launch and manage virtual storefronts on its platform, said Ker Zheng, who tracks China's online retail sector at consultancy Azoya.

"Kaola does not have to share user time or basket space with cheaper, non-imported products," said Zheng.

Kaola and Yanxuan, another NetEase-run line of private-label, company-branded goods, accounted for nearly half the gaming company's revenue in the June quarter.

NetEase does not break down sales from Kaola.

Playing defence

The Kaola deal will boost Alibaba's access to wealthy Chinese buyers, who account for more than a third of the luxury goods sector's worldwide revenues, as online sales slow at home.

Online retail sales in China grew 17.8 per cent in the first half of 2019, versus 32.4 per cent a year earlier, government data shows.

The acquisition will also help the tech giant face rising competition from rivals such as Pinduoduo.

In response to competition from Pinduoduo, which offers group-buying deals on household goods, Alibaba has already revamped Juhuasuan, its group-buying service.

It also launched Taobao Xinxuan, a line of private-label, house-brand goods.

"Pinduoduo has a will to move towards international brands or cross-border e-commerce, so in the future, they would definitely want Kaola. For Alibaba, they'd want to prevent this," said Liu Yiming, who tracks China's e-commerce sector at the research division of 36kr.

The investment in NetEase Cloud Music, along with private-equity firm Yunfeng, which is backed by the tech giant's founder Jack Ma, is also a way for Alibaba and NetEase to ally against a common rival,&nbsp;Tencent Holdings.

Tencent Music dominates the Chinese music streaming market with an 83.8% share through three streaming services, according to Quest Mobile and Macquarie Research, but it recently reported the slowest increase in a key growth metric.

It is under investigation by China's antitrust authority in a review that could end exclusive licensing deals it forged with the world's biggest record labels, Bloomberg has reported.

Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.

Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers. Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music. The long-rumoured Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies. Kaola, launched by NetEase in 2015, aggressively targets shoppers in China by offering products from top brands such as Gucci, Shisheido and Burberry, primarily sourcing goods directly from suppliers to resell to consumers. Its more curated product line up based on popularity ensures it a loyal consumer base of shoppers, whereas Alibaba's Tmall allows a larger range of overseas brands to launch and manage virtual storefronts on its platform, said Ker Zheng, who tracks China's online retail sector at consultancy Azoya. "Kaola does not have to share user time or basket space with cheaper, non-imported products," said Zheng. Kaola and Yanxuan, another NetEase-run line of private-label, company-branded goods, accounted for nearly half the gaming company's revenue in the June quarter. NetEase does not break down sales from Kaola. Playing defence The Kaola deal will boost Alibaba's access to wealthy Chinese buyers, who account for more than a third of the luxury goods sector's worldwide revenues, as online sales slow at home. Online retail sales in China grew 17.8 per cent in the first half of 2019, versus 32.4 per cent a year earlier, government data shows. The acquisition will also help the tech giant face rising competition from rivals such as Pinduoduo. In response to competition from Pinduoduo, which offers group-buying deals on household goods, Alibaba has already revamped Juhuasuan, its group-buying service. It also launched Taobao Xinxuan, a line of private-label, house-brand goods. "Pinduoduo has a will to move towards international brands or cross-border e-commerce, so in the future, they would definitely want Kaola. For Alibaba, they'd want to prevent this," said Liu Yiming, who tracks China's e-commerce sector at the research division of 36kr. The investment in NetEase Cloud Music, along with private-equity firm Yunfeng, which is backed by the tech giant's founder Jack Ma, is also a way for Alibaba and NetEase to ally against a common rival, Tencent Holdings. Tencent Music dominates the Chinese music streaming market with an 83.8% share through three streaming services, according to Quest Mobile and Macquarie Research, but it recently reported the slowest increase in a key growth metric. It is under investigation by China's antitrust authority in a review that could end exclusive licensing deals it forged with the world's biggest record labels, Bloomberg has reported.

Alibaba dials up luxury push with $2 billion buys of Netease e-commerce arm

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however.

In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June.

The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest.

Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent.

Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict.

Upbeat US data on Thursday also helped sentiment.

US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI).

"The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

On Thursday, the Dow added 1.4 per cent, the S&amp;P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent.

Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar."

The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent.

The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen.

The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal.

Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit.

The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce.

The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields.

US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities.

The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns.

"The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities.

Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week.

The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia.

Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions.

Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions. The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however. In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June. The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest. Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent. Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict. Upbeat US data on Thursday also helped sentiment. US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI). "The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. On Thursday, the Dow added 1.4 per cent, the S&P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent. Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar." The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent. The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen. The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal. Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit. The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce. The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields. US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities. The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns. "The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities. Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week. The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia. Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions. Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asia shares rise on trade talks hope, firm US data; safe havens sold

Bank of Japan Governor Haruhiko Kuroda said cutting interest rates further into negative territory is among the bank's policy options, according to an interview with the Nikkei newspaper published on Friday.

Cutting rates "further into the negative zone is always an option," the newspaper quoted him as saying in the interview, held on Thursday.

Kuroda said while Japan's economy was sustaining momentum to achieve the BOJ's 2 per cent&nbsp;inflation target, risks surrounding the overseas economy were heightening.

"There are various things we can do, such as combining various tools or enhancing them," Kuroda was quoted as saying on what the BOJ could do if it were to ease again.

But Kuroda also stressed that the BOJ must take into account the impact any policy change could have on Japan's banking system and financial market functions.

Life insurers and pension funds have seen the return on their investments decline significantly due to falling long-term yields, which could hurt consumer sentiment, he said.

Kuroda also said yields on super-long Japanese government bonds with maturities of 20 or 30 years have "fallen a bit too far."

Markets are rife with speculation the BOJ could ease policy as early as this month to fend off an unwelcome yen spike that could be caused by expected monetary easing steps by the US Federal Reserve and the European Central Bank.

But some BOJ policymakers are wary of ramping up stimulus due to the rising cost of prolonged easings, such as the strain years of ultra-low interest rates are inflicting on financial institutions

Bank of Japan Governor Haruhiko Kuroda said cutting interest rates further into negative territory is among the bank's policy options, according to an interview with the Nikkei newspaper published on Friday.

Bank of Japan Governor Haruhiko Kuroda said cutting interest rates further into negative territory is among the bank's policy options, according to an interview with the Nikkei newspaper published on Friday. Cutting rates "further into the negative zone is always an option," the newspaper quoted him as saying in the interview, held on Thursday. Kuroda said while Japan's economy was sustaining momentum to achieve the BOJ's 2 per cent inflation target, risks surrounding the overseas economy were heightening. "There are various things we can do, such as combining various tools or enhancing them," Kuroda was quoted as saying on what the BOJ could do if it were to ease again. But Kuroda also stressed that the BOJ must take into account the impact any policy change could have on Japan's banking system and financial market functions. Life insurers and pension funds have seen the return on their investments decline significantly due to falling long-term yields, which could hurt consumer sentiment, he said. Kuroda also said yields on super-long Japanese government bonds with maturities of 20 or 30 years have "fallen a bit too far." Markets are rife with speculation the BOJ could ease policy as early as this month to fend off an unwelcome yen spike that could be caused by expected monetary easing steps by the US Federal Reserve and the European Central Bank. But some BOJ policymakers are wary of ramping up stimulus due to the rising cost of prolonged easings, such as the strain years of ultra-low interest rates are inflicting on financial institutions

Bank of Japan's Kuroda says deepening negative rates is among options: Nikkei

Indian shares rose for a third straight session on Friday, in line with gains in broader Asia, as US-China trade tensions eased, with IT firm Tech Mahindra Ltd leading gains after scoring a deal with US&nbsp;telecoms firm AT&amp;T Inc.

The broader NSE Nifty was up 0.49 per cent at 10,900.8 as of 0432 GMT, while the benchmark BSE Sensex was 0.53 per cent higher at 36,834.88.

Both indexes were, however, set to finish the week over 1 per cent lower, after seeing heavy sell off earlier in the week on worries of slowing economic growth.

"Foreign investors are still net sellers in the market due to the slowdown," said Anita Gandhi, whole-time director at Arihant Capital Markets, adding that markets are still awaiting measures from the government to stimulate the economy.

"There is intent on the government`s part, but we are yet to see an announcement to boost the economy, after which we may see a let up in the stock market."

Meanwhile, foreign investors pulled out 5.61 billion rupees ($78.21 million) from capital markets on Thursday, according to NSE data.

Asian stocks edged higher on Friday after the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their trade conflict.

In the local markets, Tech Mahindra climbed as much as 5.3 per cent to over 10-week high, after it said it would expand its collaboration with AT&amp;T to accelerate the US&nbsp;telecom company`s IT network application, shared systems modernisation and movement to the cloud.

The stock was the top percentage gainer on both indexes.

Private-sector lender Axis Bank Ltd climbed 2.3 per cent to a one-week high.

However, mortgage lender Indiabulls Housing Finance Ltd capped gains on the index as it fell nearly 10 per cent on reports that a public interest litigation had been filed against the company and its promoters.

The stock, which had already lost around 48 per cent this year up to last close, touched an over four-and-a-half year low on Friday.

Drugmaker Sun Pharmaceutical Industries Ltd fell as much as 4 per cent after it confirmed that India`s market regulator was conducting a forensic audit of the company`s financial statements for the years ended March 2016 to March 2018.

Indian shares rose for a third straight session on Friday, in line with gains in broader Asia, as US-China trade tensions eased, with IT firm Tech Mahindra Ltd leading gains after scoring a deal with US telecoms firm AT&T Inc.

Indian shares rose for a third straight session on Friday, in line with gains in broader Asia, as US-China trade tensions eased, with IT firm Tech Mahindra Ltd leading gains after scoring a deal with US telecoms firm AT&T Inc. The broader NSE Nifty was up 0.49 per cent at 10,900.8 as of 0432 GMT, while the benchmark BSE Sensex was 0.53 per cent higher at 36,834.88. Both indexes were, however, set to finish the week over 1 per cent lower, after seeing heavy sell off earlier in the week on worries of slowing economic growth. "Foreign investors are still net sellers in the market due to the slowdown," said Anita Gandhi, whole-time director at Arihant Capital Markets, adding that markets are still awaiting measures from the government to stimulate the economy. "There is intent on the government`s part, but we are yet to see an announcement to boost the economy, after which we may see a let up in the stock market." Meanwhile, foreign investors pulled out 5.61 billion rupees ($78.21 million) from capital markets on Thursday, according to NSE data. Asian stocks edged higher on Friday after the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their trade conflict. In the local markets, Tech Mahindra climbed as much as 5.3 per cent to over 10-week high, after it said it would expand its collaboration with AT&T to accelerate the US telecom company`s IT network application, shared systems modernisation and movement to the cloud. The stock was the top percentage gainer on both indexes. Private-sector lender Axis Bank Ltd climbed 2.3 per cent to a one-week high. However, mortgage lender Indiabulls Housing Finance Ltd capped gains on the index as it fell nearly 10 per cent on reports that a public interest litigation had been filed against the company and its promoters. The stock, which had already lost around 48 per cent this year up to last close, touched an over four-and-a-half year low on Friday. Drugmaker Sun Pharmaceutical Industries Ltd fell as much as 4 per cent after it confirmed that India`s market regulator was conducting a forensic audit of the company`s financial statements for the years ended March 2016 to March 2018.

Nifty, Sensex extend gains; Tech Mahindra leads gains on AT&T deal

China's central bank said on Friday it was cutting the amount of <a href="https://www.wionews.com/world/us-china-trade-war-to-knock-05-points-off-global-growth-french-finance-minister-247859">cash that banks must</a> hold as reserves for the third time this year, releasing $126.35 billion&nbsp;in liquidity to shore up the flagging economy.

Analysts had expected China to announce more policy easing measures soon as the world's second-largest economy comes under growing pressure from escalating US&nbsp;tariffs and sluggish domestic demand.

The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) by 50 basis points (bps) for all banks, with an additional 100 bps cut for qualified city commercial banks. The RRR for large banks will be lowered to 13.0 per cent.

The PBOC has now slashed the ratio seven times since early 2018. The size of the latest move was at the upper end of market expectations, and the number of funds released will be the largest so far in the current easing cycle.

The broad-based cut, which will release 800 billion yuan in liquidity, is effective September&nbsp;16. The additional targeted cut will release 100 billion yuan, in two phases effective October 15 and November 15.

"The move shows policymakers are increasingly worried but it’s far from enough to stabilise the economy," said Larry Hu, head of Greater China economics at Macquarie Group in Hong Kong.

"The key constraint is that everything is slowing down corporates are not willing to invest because of the trade war, a global slowdown, and weak infrastructure and property sector growth."

The latest move to spur bank lending followed a cabinet meeting on September 4 that pledged to implement both broad and targeted cuts in the RRR "in a timely manner".

The PBOC said it will maintain a prudent monetary policy and avoid a flood-like stimulus while increasing counter-cyclical adjustments and maintaining reasonable and abundant liquidity.

Analysts say China's economic growth has likely cooled further this quarter from a near 30-year low of 6.2 per cent in April-June. Morgan Stanley says it is now tracking the lower end of the government's full-year target range of around 6-6.5 per cent. 
&nbsp; 
With Washington imposing new tariffs from September 1 and threatening more measures from October 1 and December 15, some economists have recently cut their China growth estimates for next year to below 6 per cent, which would breach Beijing's longer-term development goal.

The central bank is also widely expected to cut one or more of its key policy interest rates in mid-September for the first time in four years as it works to reduce corporate funding costs.

"I think it's very likely they will cut the LPR (loan prime rate) by about 5-10 bps later this month. I also expect another RRR cut of 50 bps by the end of this year,” Macquarie's Hu said.

Despite a slew of support measures and policy easing since last year, China's economy is still struggling to get back on a firm footing.

July's data showed growth stumbled more sharply than expected as the intensifying trade war with the United States took a heavier toll, and August factory surveys pointed to continued weakness.

Prior to the latest RRR cut, the central bank had pumped out 3.63 trillion yuan in net liquidity through reserve cuts since early 2018, according to Reuters calculations based on PBOC data and analyst estimates.

The PBOC's hefty injections have helped bring down companies' borrowing costs, which had jumped early last year as regulators clamped down on riskier types of financing and debt.

But analysts have cautioned that some companies may be merely refinancing existing debt at better rates, rather than borrowing to fund fresh investments.

Analysts say the problem is not a lack of credit the PBOC has injected generous amounts of liquidity but weakening business and consumer confidence as the trade war drag on. That has weighed on activity from manufacturing and investment to retail sales.

In the latest escalation in the protracted trade dispute, the United States began imposing 15 per cent&nbsp;tariffs on a variety of Chinese goods on September&nbsp;1&nbsp;including footwear, smartwatches, and flat-panel televisions and China began imposing new duties on US crude.

The next high-level trade talks are slated for early October, but a lasting peace seems more elusive than ever.

The government has repeatedly said it will not resort to "flood-like" stimulus as it did in past economic downturns, which left a mountain of debt and sparked fears of property market bubbles.

Instead, Beijing has relied more on fiscal stimuli such as increased infrastructure spending and tax cuts, though the boost has been milder than expected so far.

The cabinet said on Wednesday China will allow local governments to issue special-purpose bonds earlier than normal next year to help steady growth, and specified for the first time that about 20 per cent&nbsp;of all special purpose bonds issued by every province could be used as project capital.

Many local governments are facing increasing fiscal strains as tax cuts and the broader economic slowdown reduce revenues, hampering their ability to implement infrastructure projects.

The OECD has estimated that China's fiscal stimulus was equivalent to 4.25 per cent of gross domestic product (GDP) in 2019, up from 2.94 per cent last year.

China's central bank said on Friday it was cutting the amount of cash that banks must hold as reserves for the third time this year, releasing $126.35 billion in liquidity to shore up the flagging economy.

China's central bank said on Friday it was cutting the amount of cash that banks must hold as reserves for the third time this year, releasing $126.35 billion in liquidity to shore up the flagging economy. Analysts had expected China to announce more policy easing measures soon as the world's second-largest economy comes under growing pressure from escalating US tariffs and sluggish domestic demand. The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) by 50 basis points (bps) for all banks, with an additional 100 bps cut for qualified city commercial banks. The RRR for large banks will be lowered to 13.0 per cent. The PBOC has now slashed the ratio seven times since early 2018. The size of the latest move was at the upper end of market expectations, and the number of funds released will be the largest so far in the current easing cycle. The broad-based cut, which will release 800 billion yuan in liquidity, is effective September 16. The additional targeted cut will release 100 billion yuan, in two phases effective October 15 and November 15. "The move shows policymakers are increasingly worried but it’s far from enough to stabilise the economy," said Larry Hu, head of Greater China economics at Macquarie Group in Hong Kong. "The key constraint is that everything is slowing down corporates are not willing to invest because of the trade war, a global slowdown, and weak infrastructure and property sector growth." The latest move to spur bank lending followed a cabinet meeting on September 4 that pledged to implement both broad and targeted cuts in the RRR "in a timely manner". The PBOC said it will maintain a prudent monetary policy and avoid a flood-like stimulus while increasing counter-cyclical adjustments and maintaining reasonable and abundant liquidity. Analysts say China's economic growth has likely cooled further this quarter from a near 30-year low of 6.2 per cent in April-June. Morgan Stanley says it is now tracking the lower end of the government's full-year target range of around 6-6.5 per cent. With Washington imposing new tariffs from September 1 and threatening more measures from October 1 and December 15, some economists have recently cut their China growth estimates for next year to below 6 per cent, which would breach Beijing's longer-term development goal. The central bank is also widely expected to cut one or more of its key policy interest rates in mid-September for the first time in four years as it works to reduce corporate funding costs. "I think it's very likely they will cut the LPR (loan prime rate) by about 5-10 bps later this month. I also expect another RRR cut of 50 bps by the end of this year,” Macquarie's Hu said. Despite a slew of support measures and policy easing since last year, China's economy is still struggling to get back on a firm footing. July's data showed growth stumbled more sharply than expected as the intensifying trade war with the United States took a heavier toll, and August factory surveys pointed to continued weakness. Prior to the latest RRR cut, the central bank had pumped out 3.63 trillion yuan in net liquidity through reserve cuts since early 2018, according to Reuters calculations based on PBOC data and analyst estimates. The PBOC's hefty injections have helped bring down companies' borrowing costs, which had jumped early last year as regulators clamped down on riskier types of financing and debt. But analysts have cautioned that some companies may be merely refinancing existing debt at better rates, rather than borrowing to fund fresh investments. Analysts say the problem is not a lack of credit the PBOC has injected generous amounts of liquidity but weakening business and consumer confidence as the trade war drag on. That has weighed on activity from manufacturing and investment to retail sales. In the latest escalation in the protracted trade dispute, the United States began imposing 15 per cent tariffs on a variety of Chinese goods on September 1 including footwear, smartwatches, and flat-panel televisions and China began imposing new duties on US crude. The next high-level trade talks are slated for early October, but a lasting peace seems more elusive than ever. The government has repeatedly said it will not resort to "flood-like" stimulus as it did in past economic downturns, which left a mountain of debt and sparked fears of property market bubbles. Instead, Beijing has relied more on fiscal stimuli such as increased infrastructure spending and tax cuts, though the boost has been milder than expected so far. The cabinet said on Wednesday China will allow local governments to issue special-purpose bonds earlier than normal next year to help steady growth, and specified for the first time that about 20 per cent of all special purpose bonds issued by every province could be used as project capital. Many local governments are facing increasing fiscal strains as tax cuts and the broader economic slowdown reduce revenues, hampering their ability to implement infrastructure projects. The OECD has estimated that China's fiscal stimulus was equivalent to 4.25 per cent of gross domestic product (GDP) in 2019, up from 2.94 per cent last year.

China cuts banks' reserve ratios, frees up $126 billion for loans as economy slows

Indian shares closed higher on Friday as investors cheered the government`s assurance for the ailing domestic auto sector, amid easing US-China trade tensions.&nbsp;

The broader NSE Nifty ended 0.91% higher at 10,946.20, while the benchmark BSE Sensex closed up 0.92% at 36,981.77.

However, weak economic data left both indexes in the red for the week, with the NSE Nifty and BSE Sensex finishing down 0.75% and 0.94%, respectively.

Autos led gains on Friday for the second straight session, and the index closed up 2.61%.

India`s junior finance minister Anurag Thakur said the government was open to taking car-makers` requests for lower taxes to the tax council, a day after industry bosses urged New Delhi to revive the sector plagued by plunging sales and job losses.

Eicher Motors was the top gainer on the NSE Nifty, ending 4.15% higher, while Indiabulls Housing Finance, down 4.97%, was the top loser.

Indian shares closed higher on Friday as investors cheered the government`s assurance for the ailing domestic auto sector, amid easing US-China trade tensions. The broader NSE Nifty ended 0.

Indian shares closed higher on Friday as investors cheered the government`s assurance for the ailing domestic auto sector, amid easing US-China trade tensions. The broader NSE Nifty ended 0.91% higher at 10,946.20, while the benchmark BSE Sensex closed up 0.92% at 36,981.77. However, weak economic data left both indexes in the red for the week, with the NSE Nifty and BSE Sensex finishing down 0.75% and 0.94%, respectively. Autos led gains on Friday for the second straight session, and the index closed up 2.61%. India`s junior finance minister Anurag Thakur said the government was open to taking car-makers` requests for lower taxes to the tax council, a day after industry bosses urged New Delhi to revive the sector plagued by plunging sales and job losses. Eicher Motors was the top gainer on the NSE Nifty, ending 4.15% higher, while Indiabulls Housing Finance, down 4.97%, was the top loser.

Nifty, Sensex end higher; autos lead gains

Trade policy uncertainty driven by the Trump administration's escalating dispute with China means hundreds of billions of dollars in lost US output and as much as $850 billion lost globally through early next year, research published this week by the Federal Reserve suggests.

The Fed researchers analysed newspaper articles and corporate earnings calls to estimate trade policy uncertainty, finding it has recently "shot up to levels not seen since the 1970s."

Other economists, notably Stanford University professor Nicholas Bloom and his colleagues, have documented a similar rise in uncertainty

The Fed researchers then estimated the blow such uncertainty delivers to economic activity, as businesses pull back on investment and production. They concluded that globally and in the United States, its impact is around 1 per cent to GDP.

With US GDP estimated at about $20 trillion, and world GDP at about $85 trillion, a 1 per cent impact would put the drag from trade uncertainty at about $200 billion to US GDP, and $850 billion to global GDP, according to Reuters calculations.

The estimates, the researchers said, are uncertain.

But they are notable in that they are among the first to quantify the large impact of President Donald Trump's approach to trade deals, which he says put the US economy at a global disadvantage.

In an effort to win better trade terms, the Trump administration has jacked up tariffs on hundreds of billions of dollars of Chinese imports and imposed or threatened to impose duties on imports from other trading partners, including Mexico and the European Union. China and other countries in turn have threatened or imposed their own tariffs on US goods.

Trump has called on the Fed to slash US interest rates to support the economy and offset the effects of the trade war.

Fed policymakers for their part have said they will not let politics dictate interest-rate policy. But they have consistently called out the tariffs as detrimental to US growth. Fed Chair Jerome Powell last month cited trade policy uncertainty as an important reason for the global economic slowdown and weak US manufacturing.

Chicago Fed President Charles Evans on Wednesday argued that increased trade tensions could slow US potential growth to 1.5 per cent a year, half what Trump said his administration would deliver.

Trade policy uncertainty driven by the Trump administration's escalating dispute with China means hundreds of billions of dollars in lost US output and as much as $850 billion lost globally through early next year, research published this week by the Federal Reserve suggests.

Trade policy uncertainty driven by the Trump administration's escalating dispute with China means hundreds of billions of dollars in lost US output and as much as $850 billion lost globally through early next year, research published this week by the Federal Reserve suggests. The Fed researchers analysed newspaper articles and corporate earnings calls to estimate trade policy uncertainty, finding it has recently "shot up to levels not seen since the 1970s." Other economists, notably Stanford University professor Nicholas Bloom and his colleagues, have documented a similar rise in uncertainty The Fed researchers then estimated the blow such uncertainty delivers to economic activity, as businesses pull back on investment and production. They concluded that globally and in the United States, its impact is around 1 per cent to GDP. With US GDP estimated at about $20 trillion, and world GDP at about $85 trillion, a 1 per cent impact would put the drag from trade uncertainty at about $200 billion to US GDP, and $850 billion to global GDP, according to Reuters calculations. The estimates, the researchers said, are uncertain. But they are notable in that they are among the first to quantify the large impact of President Donald Trump's approach to trade deals, which he says put the US economy at a global disadvantage. In an effort to win better trade terms, the Trump administration has jacked up tariffs on hundreds of billions of dollars of Chinese imports and imposed or threatened to impose duties on imports from other trading partners, including Mexico and the European Union. China and other countries in turn have threatened or imposed their own tariffs on US goods. Trump has called on the Fed to slash US interest rates to support the economy and offset the effects of the trade war. Fed policymakers for their part have said they will not let politics dictate interest-rate policy. But they have consistently called out the tariffs as detrimental to US growth. Fed Chair Jerome Powell last month cited trade policy uncertainty as an important reason for the global economic slowdown and weak US manufacturing. Chicago Fed President Charles Evans on Wednesday argued that increased trade tensions could slow US potential growth to 1.5 per cent a year, half what Trump said his administration would deliver.

Trade uncertainty to trim $850 billion global output

&nbsp;US job growth likely slowed further in August, but the pace of gains probably remains sufficient to keep the economy expanding moderately amid rising threats from trade tensions and weakness overseas that have left financial markets fearing a recession.

The Labor Department's closely watched monthly employment report on Friday will come in the wake of a survey on Tuesday that showed manufacturing contracting for the first time in three years in August. The economy's waning fortunes, underscored by an inversion of the US Treasury yield curve, have been largely blamed on the White House's year-long trade war with China.

Washington and Beijing slapped fresh tariffs on each other on Sunday. While the two economic giants on Thursday agreed to hold high-level talks in early October in Washington, the uncertainty, which has eroded business confidence, lingers.

The economy is also facing headwinds from Britain's potentially disorderly exit from the European Union, and softening growth in China and the rest of the world.

The Federal Reserve is expected to cut interest rates again this month to keep the longest economic expansion in history, now in its 11th year, on track. The US central bank lowered borrowing costs in July for the first time since 2008.

"The general message from the labour market is that businesses are cutting back on hiring, but they are not laying off workers and that is important," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. "Consumers are what's keeping the economy moving at this point."

Nonfarm payrolls probably increased by 158,000 jobs last month after advancing 164,000 in July, according to a Reuters survey of economists. The anticipated job gains would be below the monthly average of 165,000 over the last seven months, but still above the roughly 100,000 per month needed to keep up with growth in the working-age population.

The unemployment rate is forecast unchanged at 3.7 per cent for a third straight month.

August job growth could, however, fall short of expectations because of a seasonal quirk related to students leaving their summer jobs and returning to school. Over the past several years, the initial August job count has tended to exhibit a weak bias, with revisions subsequently showing strength.

Other factors favouring slower job growth include declines in both the Institute for Supply Management's manufacturing and services industries employment measures in August. In addition, global outplacement firm Challenger, Gray &amp; Christmas reported a 37.7 per cent jump in planned job cuts by U.S-based employers in August.

Bullish consumers

But first-time applications for unemployment benefits, a more timely indicator of labour market health, have been hovering near historically low levels. Consumers were very bullish about the labour market in August and the government likely started recruiting for the 2020 Census last month.

Though the trade impasse does not appear to be spilling over to the labour market, job growth has been slowing since mid-2018.

The government last month estimated that the economy created 501,000 fewer jobs in the 12 months through March 2019 than previously reported, the biggest downward revision in the level of employment in a decade. That suggests job growth over that period averaged around 170,000 per month instead of 210,000. The revised payrolls data will be published next February.

The government has also trimmed economic growth for the second quarter. The employment report is expected to show average hourly earnings gaining 0.3 per cent last month, matching July's rise. But the annual increase in wages is seen dipping to 3.1 per cent from 3.2 per cent in July as last year's surge falls out of the calculation.

"Recent downward revisions to estimates of economic growth, corporate profits, and employment growth all suggest that the economy is displaying classic late-cycle symptoms," said Michael Feroli, an economist at JP Morgan in New York. "Moreover, these symptoms are unlikely to go away entirely even if a truce is reached in the current trade tensions."

The length of the workweek will also be watched for clues on how soon companies might start laying off workers. The average workweek fell to its lowest level in nearly two years in July as manufacturers and other industries cut hours for workers. It is forecast rising to 34.4 hours in August from 34.3 hours in July.

"While one month does not make a trend, hours worked is a leading indicator worth noting," said Beth Ann Bovino, US chief economist at S&amp;P Global Ratings in New York. "A prolonged drop in hours worked signals that businesses may reduce hiring, with layoffs and cutbacks in private spending to likely follow."

Manufacturing employment is expected to have risen by 8,000 jobs last month after increasing 16,000 in July. But factory payrolls could surprise on the downside after the ISM reported on Tuesday that its gauge of factory employment dropped in August to its lowest level since March 2016.

Manufacturing has ironically borne the brunt of the Trump administration's trade war, which the White House has argued is intended to boost the sector. Factories cut overtime for workers in July.

Government employment could get a lift from hiring for the 2020 decennial census, which could create roughly 40,000 temporary jobs.

US job growth likely slowed further in August, but the pace of gains probably remains sufficient to keep the economy expanding moderately amid rising threats from trade tensions and weakness overseas that have left financial markets fearing a recession.

US job growth likely slowed further in August, but the pace of gains probably remains sufficient to keep the economy expanding moderately amid rising threats from trade tensions and weakness overseas that have left financial markets fearing a recession. The Labor Department's closely watched monthly employment report on Friday will come in the wake of a survey on Tuesday that showed manufacturing contracting for the first time in three years in August. The economy's waning fortunes, underscored by an inversion of the US Treasury yield curve, have been largely blamed on the White House's year-long trade war with China. Washington and Beijing slapped fresh tariffs on each other on Sunday. While the two economic giants on Thursday agreed to hold high-level talks in early October in Washington, the uncertainty, which has eroded business confidence, lingers. The economy is also facing headwinds from Britain's potentially disorderly exit from the European Union, and softening growth in China and the rest of the world. The Federal Reserve is expected to cut interest rates again this month to keep the longest economic expansion in history, now in its 11th year, on track. The US central bank lowered borrowing costs in July for the first time since 2008. "The general message from the labour market is that businesses are cutting back on hiring, but they are not laying off workers and that is important," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. "Consumers are what's keeping the economy moving at this point." Nonfarm payrolls probably increased by 158,000 jobs last month after advancing 164,000 in July, according to a Reuters survey of economists. The anticipated job gains would be below the monthly average of 165,000 over the last seven months, but still above the roughly 100,000 per month needed to keep up with growth in the working-age population. The unemployment rate is forecast unchanged at 3.7 per cent for a third straight month. August job growth could, however, fall short of expectations because of a seasonal quirk related to students leaving their summer jobs and returning to school. Over the past several years, the initial August job count has tended to exhibit a weak bias, with revisions subsequently showing strength. Other factors favouring slower job growth include declines in both the Institute for Supply Management's manufacturing and services industries employment measures in August. In addition, global outplacement firm Challenger, Gray & Christmas reported a 37.7 per cent jump in planned job cuts by U.S-based employers in August. Bullish consumers But first-time applications for unemployment benefits, a more timely indicator of labour market health, have been hovering near historically low levels. Consumers were very bullish about the labour market in August and the government likely started recruiting for the 2020 Census last month. Though the trade impasse does not appear to be spilling over to the labour market, job growth has been slowing since mid-2018. The government last month estimated that the economy created 501,000 fewer jobs in the 12 months through March 2019 than previously reported, the biggest downward revision in the level of employment in a decade. That suggests job growth over that period averaged around 170,000 per month instead of 210,000. The revised payrolls data will be published next February. The government has also trimmed economic growth for the second quarter. The employment report is expected to show average hourly earnings gaining 0.3 per cent last month, matching July's rise. But the annual increase in wages is seen dipping to 3.1 per cent from 3.2 per cent in July as last year's surge falls out of the calculation. "Recent downward revisions to estimates of economic growth, corporate profits, and employment growth all suggest that the economy is displaying classic late-cycle symptoms," said Michael Feroli, an economist at JP Morgan in New York. "Moreover, these symptoms are unlikely to go away entirely even if a truce is reached in the current trade tensions." The length of the workweek will also be watched for clues on how soon companies might start laying off workers. The average workweek fell to its lowest level in nearly two years in July as manufacturers and other industries cut hours for workers. It is forecast rising to 34.4 hours in August from 34.3 hours in July. "While one month does not make a trend, hours worked is a leading indicator worth noting," said Beth Ann Bovino, US chief economist at S&P Global Ratings in New York. "A prolonged drop in hours worked signals that businesses may reduce hiring, with layoffs and cutbacks in private spending to likely follow." Manufacturing employment is expected to have risen by 8,000 jobs last month after increasing 16,000 in July. But factory payrolls could surprise on the downside after the ISM reported on Tuesday that its gauge of factory employment dropped in August to its lowest level since March 2016. Manufacturing has ironically borne the brunt of the Trump administration's trade war, which the White House has argued is intended to boost the sector. Factories cut overtime for workers in July. Government employment could get a lift from hiring for the 2020 decennial census, which could create roughly 40,000 temporary jobs.

Slower US job growth expected, but enough to support economy

Equity benchmark indices were in the positive territory during early hours on Thursday tracking positive developments on the global horizon.At 10:15 am, the BSE S&amp;P Sensex was up by 128 points at 36,852 while the Nifty 50 edged higher by 59 points to 10,904.

At the National Stock Exchange, sectoral indices were mixed. Nifty metal gained by 2.4 per cent. Nifty auto, FMCG, IT and pharma too were in the green but financial services, PSU bank and realty witnessed marginal losses.

Among stocks, ONGC gained by 6.1 per cent, Coal India by 5.1 per cent, NTPC by 4.6 per cent, and Indian Oil Corporation by 4.5 per cent.Metal stocks were up with Vedanta gaining 2.8 per cent, Tata Steel by 2.6 per cent and JSW Steel by 2.1 per cent.

However, HDFC slipped by 2.1 per cent to Rs 2,054.35 per share while ICICI Bank was down by 1.5 per cent, State Bank of India and Kotak Mahindra Bank lost by 0.6 per cent each.

Meanwhile, Asian stocks shot up after China announced another round of trade talks with the United States next month.

The development came amid fears of an escalating trade war that could trigger a global economic recession.

The United States plans to increase the tariff rate to 30 per cent from the 25 per cent duty already in place on 250 billion dollars worth of Chinese imports from October 1.

Equity benchmark indices were in the positive territory during early hours on Thursday tracking positive developments on the global horizon.At 10:15 am, the BSE S&P Sensex was up by 128 points at 36,852 while the Nifty 50 edged higher by 59 points to 10,904.

Equity benchmark indices were in the positive territory during early hours on Thursday tracking positive developments on the global horizon.At 10:15 am, the BSE S&P Sensex was up by 128 points at 36,852 while the Nifty 50 edged higher by 59 points to 10,904. At the National Stock Exchange, sectoral indices were mixed. Nifty metal gained by 2.4 per cent. Nifty auto, FMCG, IT and pharma too were in the green but financial services, PSU bank and realty witnessed marginal losses. Among stocks, ONGC gained by 6.1 per cent, Coal India by 5.1 per cent, NTPC by 4.6 per cent, and Indian Oil Corporation by 4.5 per cent.Metal stocks were up with Vedanta gaining 2.8 per cent, Tata Steel by 2.6 per cent and JSW Steel by 2.1 per cent. However, HDFC slipped by 2.1 per cent to Rs 2,054.35 per share while ICICI Bank was down by 1.5 per cent, State Bank of India and Kotak Mahindra Bank lost by 0.6 per cent each. Meanwhile, Asian stocks shot up after China announced another round of trade talks with the United States next month. The development came amid fears of an escalating trade war that could trigger a global economic recession. The United States plans to increase the tariff rate to 30 per cent from the 25 per cent duty already in place on 250 billion dollars worth of Chinese imports from October 1.

Equity indices in green on positive global cues, metal stocks shine

Weaker demand from abroad drove a bigger-than-expected drop in German industrial orders in July, suggesting that struggling manufacturers could tip Europe's biggest economy <a href="https://www.wionews.com/business-economy/uk-business-activity-contracts-over-brexit-turmoil-raises-recession-risk-247628">into a recession in the third quarter</a>.

Germany's export-reliant economy is suffering from slower global growth and business uncertainty caused by US&nbsp;President Donald Trump's 'America First' trade policies and Britain's planned, but delayed, exit from the European Union.

Contracts for 'Made in Germany' goods fell 2.7 per cent from the previous month in July, data showed on Thursday, driven by a big drop in bookings from non-euro zone countries, the economy ministry said. That undershot a Reuters consensus forecast for a 1.5 per cent&nbsp;drop.

"The misery in manufacturing continues. The decline in new orders significantly increases the risk of a recession for the German economy," VP Bank analyst Thomas Gitzel said.

Germany's gross domestic product contracted by 0.1 per cent&nbsp;quarter-on-quarter in the second quarter on weaker exports, with the decrease in foreign sales mainly driven by Britain and below average demand from China.

"The danger is great that negative growth will also be recorded in the third quarter," Gitzel added.

The economy ministry said new orders in manufacturing had a weak start to the third quarter and that the outlook for the sector was also looking grim.

"In light of still unresolved international trade conflicts and muted business expectations in manufacturing, there are still no signs of a fundamental improvement in the industrial sector in the coming months," the ministry added.

Orders from non-euro zone countries plunged nearly 7 per cent&nbsp;on the month while demand from other euro zone countries and domestic bookings rose slightly, the data showed.

Without the distorting effects of bulk orders, industrial orders rose 0.5 per cent&nbsp;on the month in July, the ministry added.

The overall reading for June was revised up to an increase of 2.7 from a previously reported 2.5 per cent&nbsp;increase.

The VDMA business association said engineering orders in July fell by 3 per cent&nbsp;in real terms from the previous year, driven by weaker demand from both domestic and foreign clients.

"The business and export outlook is still gloomy for the second half of the year given the economic and political risks," VDMA chief economist Ralph Wiechers said.

Germany's DIHK business association said that companies around the globe were reluctant to invest due to slowing world trade and growing business uncertainty.

"So there is little light on the horizon for German industry which is characterized by its large share of capital goods producers," DIHK economist Kevin Heidenreich.

Carsten Brzeski from ING noted that the downward trend in manufacturing was not only driven by weaker foreign demand and trade conflicts.

"Since the start of the year, domestic orders have actually dropped more than foreign orders, suggesting that global woes have reached the domestic economy," Brzeski added.

Labour market data showed last week that seasonally adjusted unemployment rose in August, eroding a pillar of growth that has helped support Germany's traditionally export-driven economy.

With its sales abroad hit by a worsening trade climate, a global economic slowdown and the increasingly chaotic run-up to Brexit, the bulk of Germany's growth momentum is now being generated domestically - a dependency that leaves it exposed to any weakening of the jobs market.

Goldman Sachs Chief Financial Officer Stephen Scherr said on Thursday that the German economy is in the "early days of a slowdown".

The government expects economic growth to slow to 0.5 per cent&nbsp;this year from 1.5 per cent&nbsp;in the previous year. This would be the weakest expansion since 2013 when the euro zone struggled amid a sovereign debt crisis.

Weaker demand from abroad drove a bigger-than-expected drop in German industrial orders in July, suggesting that struggling manufacturers could tip Europe's biggest economy into a recession in the third quarter.

Weaker demand from abroad drove a bigger-than-expected drop in German industrial orders in July, suggesting that struggling manufacturers could tip Europe's biggest economy into a recession in the third quarter. Germany's export-reliant economy is suffering from slower global growth and business uncertainty caused by US President Donald Trump's 'America First' trade policies and Britain's planned, but delayed, exit from the European Union. Contracts for 'Made in Germany' goods fell 2.7 per cent from the previous month in July, data showed on Thursday, driven by a big drop in bookings from non-euro zone countries, the economy ministry said. That undershot a Reuters consensus forecast for a 1.5 per cent drop. "The misery in manufacturing continues. The decline in new orders significantly increases the risk of a recession for the German economy," VP Bank analyst Thomas Gitzel said. Germany's gross domestic product contracted by 0.1 per cent quarter-on-quarter in the second quarter on weaker exports, with the decrease in foreign sales mainly driven by Britain and below average demand from China. "The danger is great that negative growth will also be recorded in the third quarter," Gitzel added. The economy ministry said new orders in manufacturing had a weak start to the third quarter and that the outlook for the sector was also looking grim. "In light of still unresolved international trade conflicts and muted business expectations in manufacturing, there are still no signs of a fundamental improvement in the industrial sector in the coming months," the ministry added. Orders from non-euro zone countries plunged nearly 7 per cent on the month while demand from other euro zone countries and domestic bookings rose slightly, the data showed. Without the distorting effects of bulk orders, industrial orders rose 0.5 per cent on the month in July, the ministry added. The overall reading for June was revised up to an increase of 2.7 from a previously reported 2.5 per cent increase. The VDMA business association said engineering orders in July fell by 3 per cent in real terms from the previous year, driven by weaker demand from both domestic and foreign clients. "The business and export outlook is still gloomy for the second half of the year given the economic and political risks," VDMA chief economist Ralph Wiechers said. Germany's DIHK business association said that companies around the globe were reluctant to invest due to slowing world trade and growing business uncertainty. "So there is little light on the horizon for German industry which is characterized by its large share of capital goods producers," DIHK economist Kevin Heidenreich. Carsten Brzeski from ING noted that the downward trend in manufacturing was not only driven by weaker foreign demand and trade conflicts. "Since the start of the year, domestic orders have actually dropped more than foreign orders, suggesting that global woes have reached the domestic economy," Brzeski added. Labour market data showed last week that seasonally adjusted unemployment rose in August, eroding a pillar of growth that has helped support Germany's traditionally export-driven economy. With its sales abroad hit by a worsening trade climate, a global economic slowdown and the increasingly chaotic run-up to Brexit, the bulk of Germany's growth momentum is now being generated domestically - a dependency that leaves it exposed to any weakening of the jobs market. Goldman Sachs Chief Financial Officer Stephen Scherr said on Thursday that the German economy is in the "early days of a slowdown". The government expects economic growth to slow to 0.5 per cent this year from 1.5 per cent in the previous year. This would be the weakest expansion since 2013 when the euro zone struggled amid a sovereign debt crisis.

Germany risks recession risk as industrial orders plunge

India's benchmark BSE Sensex reversed early gains and closed slightly lower on Thursday as sluggish economic growth kept investors cautious and the government's assurance to the ailing auto sector failed to bring much cheer.

India's benchmark BSE Sensex reversed early gains and closed slightly lower on Thursday as sluggish economic growth kept investors cautious and the government's assurance to the ailing auto sector failed to bring much cheer. The Sensex closed down 0.22% at 36,644.42, while the broader NSE Nifty ended 0.03% higher at 10,847.90. Road and transport minister Nitin Gadkari said the government would cut taxes on hybrid cars and not ban petrol and diesel vehicles at a time when the industry is fretting about plans to switch to electric vehicles. The news helped the Nifty auto index close about 2.3% higher. Tata Motors was the top gainer with a jump of 7.81%. Financial and banking stocks were among the top losers. Shadow bank Housing Development Finance Corp was the top loser on the NSE index with a drop of 2.66%.

Sensex, Nifty erase gains on slowdown worries

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%.

US stock futures reversed early losses and rose 1%.

The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell.

China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing.

China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September&nbsp;in preparation for negotiations in early October, hinting at progress in reducing trade friction.

Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details.

"Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo.

"It's the same about Brexit, which means less downside risk."

Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub.

In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31.

But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour.

Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan.

US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets.

The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%.

The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug&nbsp;21 on Wednesday but narrowed slightly in Asian trade.

The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession.

US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%. US stock futures reversed early losses and rose 1%. The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell. China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing. China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September in preparation for negotiations in early October, hinting at progress in reducing trade friction. Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details. "Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo. "It's the same about Brexit, which means less downside risk." Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub. In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31. But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour. Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan. US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets. The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%. The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug 21 on Wednesday but narrowed slightly in Asian trade. The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession. US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Confirmation of US: China trade talks buoys global shares, investor spirit

Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day.

The departure of John Slosar was announced less than three weeks after mounting Chinese regulatory scrutiny led to the shock exit of its chief executive, Rupert Hogg.

Cathay shares had closed 7.2% higher on Wednesday as the Hong Kong market was lifted by reports of the withdrawal of a controversial extradition bill, which was officially announced after the market closed.

Long-serving Swire Pacific Ltd executive Patrick Healy was appointed as Cathay's new chairman on Wednesday following the resignation of Slosar, who had served in the role since 2014.

"As John would have retired soon anyway it's not really a huge setback as a business," an analyst said of Slosar's departure. "However it's always awful to see when politics dictate like this."

The analyst, who was not authorised to speak publicly about personnel changes, said he believed if the political situation in Hong Kong stabilised, the situation at Cathay should as well.

Daiwa Capital Markets analyst Kelvin Lau said the extradition bill's withdrawal was positive for Cathay, even though protests were not expected to end immediately.

"We expect this to be a turning point where the situation would at least not worsen," he said in a note to clients, adding that recent personnel changes at the airline should satisfy the requirements of the Chinese regulator and were likely to instil confidence among customers.

China's aviation regulator last month said crew who engaged in the anti-government protests in Hong Kong posed a threat to the safety and should be suspended from staffing flights to the mainland and over its airspace.

Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day.

Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day. The departure of John Slosar was announced less than three weeks after mounting Chinese regulatory scrutiny led to the shock exit of its chief executive, Rupert Hogg. Cathay shares had closed 7.2% higher on Wednesday as the Hong Kong market was lifted by reports of the withdrawal of a controversial extradition bill, which was officially announced after the market closed. Long-serving Swire Pacific Ltd executive Patrick Healy was appointed as Cathay's new chairman on Wednesday following the resignation of Slosar, who had served in the role since 2014. "As John would have retired soon anyway it's not really a huge setback as a business," an analyst said of Slosar's departure. "However it's always awful to see when politics dictate like this." The analyst, who was not authorised to speak publicly about personnel changes, said he believed if the political situation in Hong Kong stabilised, the situation at Cathay should as well. Daiwa Capital Markets analyst Kelvin Lau said the extradition bill's withdrawal was positive for Cathay, even though protests were not expected to end immediately. "We expect this to be a turning point where the situation would at least not worsen," he said in a note to clients, adding that recent personnel changes at the airline should satisfy the requirements of the Chinese regulator and were likely to instil confidence among customers. China's aviation regulator last month said crew who engaged in the anti-government protests in Hong Kong posed a threat to the safety and should be suspended from staffing flights to the mainland and over its airspace.

Cathay shares fall nearly 4% after chairman resigns

Equity benchmark indices were flat in a choppy trading session during early hours on Wednesday tracking subdued global cues.

At 10:15 am, the BSE S&amp;P Sensex was up by 50 points at 36,613 while the Nifty 50 edged lower by 11 points to 10,809.

At the National Stock Exchange, sectoral indices were mixed.

Nifty pharma was down by 1.4 per cent. Auto, financial services, banks, media and realty too were in the red while FMCG, IT and metal witnessed marginal gains.

Traders said that due to lack of major domestic triggers, the market could be largely driven by global trends.Among stocks, Sun Pharma slipped by 3.8 per cent to Rs 422.30 per share while IndusInd Bank was down by 2.5 per cent.

Zee Entertainment, Tata Motors, Titan, Eicher Motors, Maruti and Reliance Industries showed some losses.

However, Bharti Infratel gained by 1.5 per cent while Vedanta was up by 1.4 per cent. State Bank of India, Indian Oil Corporation and Bharti Airtel showed marginal gains.

Meanwhile, Asian stocks bounced led by Chinese markets after a report showed growth in the country's service sector accelerating despite broader economic headwinds.

The Shanghai Composite Index added 0.45 per cent while MSCI's index of Asia-Pacific shares outside Japan gained 0.5 per cent. But sentiment in the wider region remained subdued amid worries about a global recession.

 
&nbsp;

Equity benchmark indices were flat in a choppy trading session during early hours on Wednesday tracking subdued global cues. At 10:15 am, the BSE S&P Sensex was up by 50 points at 36,613 while the Nifty 50 edged lower by 11 points to 10,809.

Equity benchmark indices were flat in a choppy trading session during early hours on Wednesday tracking subdued global cues. At 10:15 am, the BSE S&P Sensex was up by 50 points at 36,613 while the Nifty 50 edged lower by 11 points to 10,809. At the National Stock Exchange, sectoral indices were mixed. Nifty pharma was down by 1.4 per cent. Auto, financial services, banks, media and realty too were in the red while FMCG, IT and metal witnessed marginal gains. Traders said that due to lack of major domestic triggers, the market could be largely driven by global trends.Among stocks, Sun Pharma slipped by 3.8 per cent to Rs 422.30 per share while IndusInd Bank was down by 2.5 per cent. Zee Entertainment, Tata Motors, Titan, Eicher Motors, Maruti and Reliance Industries showed some losses. However, Bharti Infratel gained by 1.5 per cent while Vedanta was up by 1.4 per cent. State Bank of India, Indian Oil Corporation and Bharti Airtel showed marginal gains. Meanwhile, Asian stocks bounced led by Chinese markets after a report showed growth in the country's service sector accelerating despite broader economic headwinds. The Shanghai Composite Index added 0.45 per cent while MSCI's index of Asia-Pacific shares outside Japan gained 0.5 per cent. But sentiment in the wider region remained subdued amid worries about a global recession.

Equities flat in choppy session, Asian stocks bounce led by Chinese markets

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from <a href="https://www.wionews.com/business-economy/oil-prices-pegged-back-by-mounting-concern-over-us-economy-246329">China's services sector</a>, after three days of losses due to fears about a weakening global economy.

Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US&nbsp;West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel.

Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year.

China is the world's second-largest oil consumer and largest importer.

But US&nbsp;President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US&nbsp;recession.

US&nbsp;data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month.

Some analysts argued that the overall fundamentals of the oil market remained discouraging.

"The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said.

Data due this week on US&nbsp;oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US&nbsp;Labor Day holiday on Monday.

US&nbsp;crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday.

"Crude oil remains troubled by reports that production from OPEC, Russia and the US&nbsp;all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said.

But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry.

In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero.

The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy. Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel. Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year. China is the world's second-largest oil consumer and largest importer. But US President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US recession. US data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month. Some analysts argued that the overall fundamentals of the oil market remained discouraging. "The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said. Data due this week on US oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US Labor Day holiday on Monday. US crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday. "Crude oil remains troubled by reports that production from OPEC, Russia and the US all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said. But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry. In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero. The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rise nearly 3% on China service sector expansion

Hong Kong's private sector activity declined at the fastest pace in more than a decade in August, a business survey showed on Wednesday, as an <a href="https://www.wionews.com/world/hong-kong-police-fire-beanbag-rounds-in-overnight-clashes-with-protesters-247486">escalating trade war and local political unrest </a>hit all aspects of demand.

The IHS Markit Hong Kong Purchasing Managers' Index (PMI) sank to 40.8 in August from 43.8 in July, signalling the steepest deterioration in the private sector since February 2009.

"The latest PMI data reveal a Hong Kong economy flirting with recession in the third quarter as business activity is increasingly aggravated by protest-related paralysis," said Bernard Aw, Principal Economist at IHS Markit.

Hundreds of thousands of people have taken to the streets since mid-June in protests calling for greater democracy in the former British territory. The demonstrations pose a direct challenge to Beijing, which has accused foreign powers, particularly the United States and Britain, of fomenting unrest.

Both the trade headwinds and political crisis have fanned business pessimism, with confidence slumping to its lowest on record, the survey showed.

New orders continued declining and at the sharpest pace since February 2009, dragged by a record decline in new business from mainland China.

Hong Kong is on the verge of its first recession in a decade as the economy shrank 0.4% in April-June from the previous quarter, data showed, as increasingly violent protests turned away tourists and hit retail sales in one of the world's most popular shopping destinations.

Hong Kong's private sector activity declined at the fastest pace in more than a decade in August, a business survey showed on Wednesday, as an escalating trade war and local political unrest hit all aspects of demand.

Hong Kong's private sector activity declined at the fastest pace in more than a decade in August, a business survey showed on Wednesday, as an escalating trade war and local political unrest hit all aspects of demand. The IHS Markit Hong Kong Purchasing Managers' Index (PMI) sank to 40.8 in August from 43.8 in July, signalling the steepest deterioration in the private sector since February 2009. "The latest PMI data reveal a Hong Kong economy flirting with recession in the third quarter as business activity is increasingly aggravated by protest-related paralysis," said Bernard Aw, Principal Economist at IHS Markit. Hundreds of thousands of people have taken to the streets since mid-June in protests calling for greater democracy in the former British territory. The demonstrations pose a direct challenge to Beijing, which has accused foreign powers, particularly the United States and Britain, of fomenting unrest. Both the trade headwinds and political crisis have fanned business pessimism, with confidence slumping to its lowest on record, the survey showed. New orders continued declining and at the sharpest pace since February 2009, dragged by a record decline in new business from mainland China. Hong Kong is on the verge of its first recession in a decade as the economy shrank 0.4% in April-June from the previous quarter, data showed, as increasingly violent protests turned away tourists and hit retail sales in one of the world's most popular shopping destinations.

Protests, trade war push Hong Kong August business activity to lowest since Feb 2009: Report

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in <a href="https://www.wionews.com/world/hong-kong-leader-carrie-lam-announces-withdrawal-of-extradition-bill-report-247563">Hong Kong</a>, Italy and Britain.

The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback.

Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest.

In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally.

Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added.

"Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions."

In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656.

The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent&nbsp;to 117.045 yen.

The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week.

Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools.

Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924.

The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent&nbsp;against the dollar, which fell to 7.1511 yuan.

The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward.

Sterling bounced 0.9 per cent&nbsp;to $1.2185 , and against the euro it rallied 0.4 per cent&nbsp;to 90.45 pence.

Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback. Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest. In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally. Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added. "Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions." In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656. The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent to 117.045 yen. The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week. Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools. Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924. The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent against the dollar, which fell to 7.1511 yuan. The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward. Sterling bounced 0.9 per cent to $1.2185 , and against the euro it rallied 0.4 per cent to 90.45 pence. Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

Dollar, yen fall as global tensions ease

British business activity shrank in August, slammed by weakness in the key construction, manufacturing and services sectors, as the economy suffers from <a href="https://www.wionews.com/world/brexit-row-uk-pm-johnson-proposes-early-election-on-october-15-247599">Brexit turmoil</a>, a key survey showed Wednesday.

The purchasing managers' index (PMI) for all UK sectors dropped to 49.7 from 50.3 in July, according to IHS Markit, which compiles the data.

A figure below 50 indicates contraction.

"The PMI surveys are so far indicating a 0.1-percent contraction of GDP in the third quarter," which would mean Britain had fallen into recession, noted Chris Williamson, chief business economist at IHS Markit.

Britain's economy unexpectedly shrank in the second quarter of the year.

The official definition of recession is two quarters of economic contraction in a row.

"Companies have grown increasingly gloomy about the outlook due to the political situation and uncertainty surrounding Brexit, adding to downside risks in the coming months," Williamson added.&nbsp; 
&nbsp;

British business activity shrank in August, slammed by weakness in the key construction, manufacturing and services sectors, as the economy suffers from Brexit turmoil, a key survey showed Wednesday.

British business activity shrank in August, slammed by weakness in the key construction, manufacturing and services sectors, as the economy suffers from Brexit turmoil, a key survey showed Wednesday. The purchasing managers' index (PMI) for all UK sectors dropped to 49.7 from 50.3 in July, according to IHS Markit, which compiles the data. A figure below 50 indicates contraction. "The PMI surveys are so far indicating a 0.1-percent contraction of GDP in the third quarter," which would mean Britain had fallen into recession, noted Chris Williamson, chief business economist at IHS Markit. Britain's economy unexpectedly shrank in the second quarter of the year. The official definition of recession is two quarters of economic contraction in a row. "Companies have grown increasingly gloomy about the outlook due to the political situation and uncertainty surrounding Brexit, adding to downside risks in the coming months," Williamson added.

UK business activity contracts over Brexit turmoil, raises recession risk

India is likely to miss its fiscal deficit target for the current financial year, despite receiving an additional dividend from the the Reserve Bank of India (RBI), five government officials and advisers said, as tax collections have sunk amid a sharp slowdown.

India is likely to miss its fiscal deficit target for the current financial year, despite receiving an additional dividend from the the Reserve Bank of India (RBI), five government officials and advisers said, as tax collections have sunk amid a sharp slowdown. With economic growth falling to a six-year low of 5% in the April-June quarter, the sources said the government could toward the end of 2019 be forced to raise the fiscal deficit target to 3.5% of GDP from 3.3%, amid pressure for additional stimulus measures. The officials asked not to be identified as they have not been authorized to discuss the matter with media. A Finance Ministry spokesman did not immediately respond to requests for comment. Tax collections could fall by as much as 1 trillion rupees ($14 billion), or 4% of $344 billion annual target, two of the officials said, noting that sharp shortfalls are expected both in goods and services tax (GST) and income tax collections. "Overshooting the fiscal deficit target is inevitable this year as the economic slowdown has hit government revenue," a senior adviser said, adding the deficit would rise unless the government resorts to hefty spending cuts. Separately, a finance ministry official said plans to sell minority stakes in some state-run entities including electricity producer NTPC, state insurer General Insurance Corp and construction finance company HUDCO could be deferred, as market sentiment has weakened. Two government advisers said they have also urged the Prime Minister Narendra Modi-led government to defer the fiscal target to tackle the economic slowdown and outline stimulus steps to help the hard hit sectors such as autos and textiles. Downward revisions Private economists have revised growth forecasts to as low as 5.8% for 2019/20, one percentage point lower than the prior year, saying the slowdown could persist for two or three years while much needed cyclical as well as structural reforms are put in place. The flat manufacturing sector growth of 0.6% during the April-June period, and contraction in the auto sector by nearly 30% in July, has hit GST and corporate tax collections, while consumer spending cuts amid job losses have dented revenue collections. So far, the government has resisted pressure to announce a big bang stimulus package while nudging the RBI to cut its benchmark repo rate, which is already down 110 basis points since February. Another government adviser said despite receiving a bonanza of around $8 billion in extra dividends from the RBI, the fiscal deficit would rise as nominal GDP growth has fallen well below the budgeted estimate for the fiscal year. Policy advisers fear that the government's recently outlined plan to merge 10 state-run banks into four mega banks this year, could also prove to be a distraction for bankers, reducing their focus on credit growth, delaying recoveries on bad loans, and in turn impacting their profits and their dividend payouts to the government. In 2018/19, government revenue receipts fell 11% against the budgeted target, and the government resorted to spending cuts of 1.46 trillion rupees ($20.42 billion), and the deficit rose 3.4% of GDP against initial target of 3.3%.

India likely to miss fiscal deficit target amid pressure for more stimulus: Report

Indian shares ended higher on Wednesday, as gains in banking and steelmaker shares helped markets recover from earlier losses, with sentiment lifted by easing political tensions in Hong Kong and Europe.

Indian shares ended higher on Wednesday, as gains in banking and steelmaker shares helped markets recover from earlier losses, with sentiment lifted by easing political tensions in Hong Kong and Europe. The broader NSE Nifty ended up 0.43% at 10,844.65, while the benchmark BSE Sensex closed 0.44% higher at 36,724.74. The rupee strengthened about 0.5% against the dollar by 1012 GMT, trading at 72.05 versus the previous close of 72.40. In broader Asia, Hong Kong's main share index surged more than 4% after a report that the controversial extradition bill that has plunged the Chinese-ruled city into its worst political crisis in decades would be withdrawn. Hong Kong leader Carrie Lam later made a formal announcement. European stocks were also buoyed as political developments in Italy and Britain eased investor nerves. Back home, top lenders HDFC Bank Ltd and State Bank of India climbed 1.7% and 2.5%, respectively. The Nifty Bank index rose 1.1%. Tata Steel Ltd and JSW Steel Ltd both advanced over 2%, while drugmaker Dr. Reddy's Laboratories Ltd topped gains with a 2.8% jump.

Nifty, Sensex recover on boost from banks, steelmakers

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 per cent. India, closed on Monday, led losses, with the benchmark dropping 1 per cent following worse-than-expected economic growth data on Friday.

China's mainland shares were fractionally lower while Japan's Nikkei inched up 0.1 per cent.

European shares are expected to dip, with pan-European Euro Stoxx 50 futures down 0.09 per cent.

In an escalation of their trade war, the United States on Sunday began imposing 15 per cent&nbsp;tariffs on a variety of Chinese goods, and China began imposing new duties on US crude oil.

Although US President Donald Trump has said both sides would still meet for talks later this month, tensions show little sign of abating.

China said on Monday it lodged a complaint against the United States at the World Trade Organisation over US import duties, trashing the latest tariff actions as violating the consensus reached by leaders of China and the United States in a meeting in Osaka.

"We have so many problems around the world, starting from the US-China trade war and Brexit. But investors appear to be getting used to be exposed to them," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management

"No one really thinks Washington and Beijing will solve the issues. But as long as the US economy keeps going, stock prices will have limited downside," he said.

US manufacturing survey by the Institute for Supply Management (ISM) due at 1400 GMT Tuesday is a major focus for investors.

Although US manufacturing activity has been slowing in recent months, the ISM's index has so far stayed above 50, pointing to growth in the sector.

US bond yields rose a tad on profit-taking after a market holiday in the United States on Monday.

The 10-year US Treasuries yield rose 2.5 basis points to 1.532 per cent, off a three-year low of 1.443 per cent touched last week. The yield dropped 51.5 basis points last month, the biggest monthly drop since August 2011.

In the currency market, sterling dropped as much as 0.58 per cent to $1.1993, its lowest level since January 2017, extending Monday's 0.85 per cent fall.

Prime Minister Johnson implicitly warned lawmakers on Monday that he would seek an election on Oct 14 if they tied his hands on Brexit, ruling out ever countenancing a further delay to Britain's departure from the European Union.

On Tuesday, lawmakers will decide whether to move Britain one step closer to a snap election when they vote on the first stage of their plan to block Johnson from pursuing a no-deal Brexit.

"Depending on further developments in UK politics, the pound could see sharp moves in the coming week or two. We think it could fall to as low as $1.13 this month," said Sumino Kamei, senior currency strategist at MUFG Bank.

Uncertainties over Brexit have already hit the UK economy, with a survey by the IHS Markit/CIPS showing British manufacturing contracted last month at the fastest rate in seven years.

The picture is not much better in Europe, and the European Central Bank is widely expected to cut interest rates further into negative levels next week to cushion the blow, pressuring the euro.

The common currency fell 0.25 per cent to a two-year low of $1.0939. The two-year German government bond yield has dipped to minus 0.919 per cent on Monday, near its record low around minus 0.964&nbsp; per cent&nbsp;hit in early 2017.

The offshore Chinese yuan dropped to a record low of 7.1975 per dollar on Tuesday morning while the Australian dollar

traded down 0.15 per cent at $0.6705, cutting some losses after the Reserve Bank of Australia kept interest rates on hold.

Still, the Aussie stayed within a stone's throw from a decade-low of $0.66775 hit last month.

Argentine bond prices fell to record lows on Monday and the official and black-market pesos diverged after the country imposed capital controls in a bid to stem a currency rout that is sharpening the risk of default.

The peso closed 0.88 per cent stronger in official markets but closed 0.79 per cent weaker in the black market at 63.5 per dollar.

Oil prices were also dented by concerns over the trade war. US West Texas Intermediate (WTI) crude lost 0.47 per cent to $54.84 per barrel. International benchmark Brent futures dipped 0.05 per cent to $58.63 per barrel.

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

Global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 per cent. India, closed on Monday, led losses, with the benchmark dropping 1 per cent following worse-than-expected economic growth data on Friday. China's mainland shares were fractionally lower while Japan's Nikkei inched up 0.1 per cent. European shares are expected to dip, with pan-European Euro Stoxx 50 futures down 0.09 per cent. In an escalation of their trade war, the United States on Sunday began imposing 15 per cent tariffs on a variety of Chinese goods, and China began imposing new duties on US crude oil. Although US President Donald Trump has said both sides would still meet for talks later this month, tensions show little sign of abating. China said on Monday it lodged a complaint against the United States at the World Trade Organisation over US import duties, trashing the latest tariff actions as violating the consensus reached by leaders of China and the United States in a meeting in Osaka. "We have so many problems around the world, starting from the US-China trade war and Brexit. But investors appear to be getting used to be exposed to them," said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management "No one really thinks Washington and Beijing will solve the issues. But as long as the US economy keeps going, stock prices will have limited downside," he said. US manufacturing survey by the Institute for Supply Management (ISM) due at 1400 GMT Tuesday is a major focus for investors. Although US manufacturing activity has been slowing in recent months, the ISM's index has so far stayed above 50, pointing to growth in the sector. US bond yields rose a tad on profit-taking after a market holiday in the United States on Monday. The 10-year US Treasuries yield rose 2.5 basis points to 1.532 per cent, off a three-year low of 1.443 per cent touched last week. The yield dropped 51.5 basis points last month, the biggest monthly drop since August 2011. In the currency market, sterling dropped as much as 0.58 per cent to $1.1993, its lowest level since January 2017, extending Monday's 0.85 per cent fall. Prime Minister Johnson implicitly warned lawmakers on Monday that he would seek an election on Oct 14 if they tied his hands on Brexit, ruling out ever countenancing a further delay to Britain's departure from the European Union. On Tuesday, lawmakers will decide whether to move Britain one step closer to a snap election when they vote on the first stage of their plan to block Johnson from pursuing a no-deal Brexit. "Depending on further developments in UK politics, the pound could see sharp moves in the coming week or two. We think it could fall to as low as $1.13 this month," said Sumino Kamei, senior currency strategist at MUFG Bank. Uncertainties over Brexit have already hit the UK economy, with a survey by the IHS Markit/CIPS showing British manufacturing contracted last month at the fastest rate in seven years. The picture is not much better in Europe, and the European Central Bank is widely expected to cut interest rates further into negative levels next week to cushion the blow, pressuring the euro. The common currency fell 0.25 per cent to a two-year low of $1.0939. The two-year German government bond yield has dipped to minus 0.919 per cent on Monday, near its record low around minus 0.964 per cent hit in early 2017. The offshore Chinese yuan dropped to a record low of 7.1975 per dollar on Tuesday morning while the Australian dollar traded down 0.15 per cent at $0.6705, cutting some losses after the Reserve Bank of Australia kept interest rates on hold. Still, the Aussie stayed within a stone's throw from a decade-low of $0.66775 hit last month. Argentine bond prices fell to record lows on Monday and the official and black-market pesos diverged after the country imposed capital controls in a bid to stem a currency rout that is sharpening the risk of default. The peso closed 0.88 per cent stronger in official markets but closed 0.79 per cent weaker in the black market at 63.5 per dollar. Oil prices were also dented by concerns over the trade war. US West Texas Intermediate (WTI) crude lost 0.47 per cent to $54.84 per barrel. International benchmark Brent futures dipped 0.05 per cent to $58.63 per barrel.

Asia stocks dented by trade war, Brexit showdown paralyses pound

The stock market benchmark S&amp;P BSE Sensex tumbled over 400 points in early morning trade on Tuesday, as investors reacted to the lower GDP growth rate numbers.

Gross domestic product (GDP) grew 5% in the first quarter of FY20, data released by the government showed, marking the slowest growth since the fourth quarter of FY13.&nbsp;

GDP growth was 8% in the year-earlier quarter and 5.8% in the preceding one. China’s economy grew 6.2% in the June quarter.&nbsp;

At 10.20 am, the Sensex was down 426 points at 36,905. The benchmark Sensex opened at 37,181.76 from its previous close of 37,332.79.

The broader Nifty was down 130 points or 1.18 per cent lower at 10,893.25.

The stock market benchmark S&P BSE Sensex tumbled over 400 points in early morning trade on Tuesday, as investors reacted to the lower GDP growth rate numbers. Gross domestic product (GDP) grew 5% in the first quarter of FY20, data released by the government showed, marking the slowest growth since the fourth quarter of FY13.

The stock market benchmark S&P BSE Sensex tumbled over 400 points in early morning trade on Tuesday, as investors reacted to the lower GDP growth rate numbers. Gross domestic product (GDP) grew 5% in the first quarter of FY20, data released by the government showed, marking the slowest growth since the fourth quarter of FY13. GDP growth was 8% in the year-earlier quarter and 5.8% in the preceding one. China’s economy grew 6.2% in the June quarter. At 10.20 am, the Sensex was down 426 points at 36,905. The benchmark Sensex opened at 37,181.76 from its previous close of 37,332.79. The broader Nifty was down 130 points or 1.18 per cent lower at 10,893.25.

Sensex tumbles 400 points, Nifty falls below 10,900