The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months.

"After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities.

"There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US&nbsp;polls."

The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said.

Most Asian currencies rallied on hopes after a phone call between the US&nbsp;and Chinese presidents raised hopes of a thaw in trade tensions.

The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday.

Going ahead, traders will closely watch the results of US&nbsp;mid-term Congressional polls next week for a cue on the dollar.

Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said.

A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt.

Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war. A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months. "After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities. "There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US polls." The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said. Most Asian currencies rallied on hopes after a phone call between the US and Chinese presidents raised hopes of a thaw in trade tensions. The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday. Going ahead, traders will closely watch the results of US mid-term Congressional polls next week for a cue on the dollar. Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said. A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt. Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

Rupee rises most in five years, beats most Asian peers

Asian markets went into freefall Thursday, tracking a plunge on Wall Street, with trading floors awash with negativity on geopolitical concerns and following weak US economic and earnings data.

The bloodletting is the latest to hit global equities, which have been pummelled this year by a wave of problems led by the China-US trade war and rising Federal Reserve interest rates.

On top of those in recent weeks has been a brewing nuclear standoff between the US and Russia, the killing of a Saudi journalist, Brexit and Italy's budget row with the European Union.

US stocks have broadly managed to avoid the hefty selling witnessed elsewhere -- even clocking up a few record highs -- thanks to a strong economy and mostly positive corporate results.

However, New York has finally succumbed as investors contemplate an end to the decade of cheap credit and the imposition of steep tariffs by the US and China in their ever-deepening trade row, to which there is no end in sight.

Wednesday say the Dow and the S&amp;P 500 wipe out their gains for the year, while the Nasdaq dived more than four per cent as the under-pressure tech sector took another beating.

The selling came after data showed US home sales were at their slowest pace for nearly two years, while the Fed said firms nationwide are worried about the tariffs as well as labour shortages.

And those losses filtered through to Asia, where Tokyo was scythed 2.2 per cent, Shanghai dived almost three per cent and Sydney sank 2.1 per cent, also losing its gains for the year.

'Sharks are circling'&nbsp;

Hong Kong lost more than two per cent, with airline Cathay Pacific collapsing 6.5 per cent after it admitted to suffering a major data leak affecting up to 9.4 million passengers.

Seoul shed 2.8 per cent as data showed the South Korean economy expanded at a slower pace than expected in the third quarter.

Wellington lost 1.2 per cent, Manila fell 2.4 per cent and Taipei retreated 2.5 per cent.

"With the S&amp;P and Nasdaq having been drawn into the global equity maelstrom, the US bellwethers are no longer the invincible titans that have held up global market sentiment for what seems like an eternity," said Stephen Innes, head of Asia-Pacific trade at OANDA.

"With China-US trade hopes fading as both sides appear to be digging in for the long haul things could get blustery in a hurry. Indeed the sharks are circling."

Key figures around 0210 GMT&nbsp;

Tokyo - Nikkei 225: DOWN 2.2 percent at 21,377.20 (close)

Hong Kong - Hang Seng: DOWN 2.3 percent at 24,666.92&nbsp;

Shanghai - Composite: DOWN 1.9 percent at 2,554.36&nbsp;

Euro/dollar: UP at $1.1408 from $1.1393 at 2100 GMT

Pound/dollar: UP at $1.2892 from $1.2884

Dollar/yen: DOWN at 111.90 from 112.19 yen&nbsp;

Oil - West Texas Intermediate: DOWN 57 cents at $66.25 per barrel&nbsp;

Oil - Brent Crude: DOWN 68 cents at $75.49 per barrel&nbsp;

New York - Dow: DOWN 2.4 percent at 24,583.42 (close)

New York - S&amp;P 500: DOWN 3.1 percent at 2,656.10 (close)

New York - Nasdaq: DOWN 4.4 percent at 7,108.40 (close)

London - FTSE 100: UP 0.1 percent at 6,962.98 points (close)

Asian markets went into freefall Thursday, tracking a plunge on Wall Street, with trading floors awash with negativity on geopolitical concerns and following weak US economic and earnings data.

Asian markets went into freefall Thursday, tracking a plunge on Wall Street, with trading floors awash with negativity on geopolitical concerns and following weak US economic and earnings data. The bloodletting is the latest to hit global equities, which have been pummelled this year by a wave of problems led by the China-US trade war and rising Federal Reserve interest rates. On top of those in recent weeks has been a brewing nuclear standoff between the US and Russia, the killing of a Saudi journalist, Brexit and Italy's budget row with the European Union. US stocks have broadly managed to avoid the hefty selling witnessed elsewhere -- even clocking up a few record highs -- thanks to a strong economy and mostly positive corporate results. However, New York has finally succumbed as investors contemplate an end to the decade of cheap credit and the imposition of steep tariffs by the US and China in their ever-deepening trade row, to which there is no end in sight. Wednesday say the Dow and the S&P 500 wipe out their gains for the year, while the Nasdaq dived more than four per cent as the under-pressure tech sector took another beating. The selling came after data showed US home sales were at their slowest pace for nearly two years, while the Fed said firms nationwide are worried about the tariffs as well as labour shortages. And those losses filtered through to Asia, where Tokyo was scythed 2.2 per cent, Shanghai dived almost three per cent and Sydney sank 2.1 per cent, also losing its gains for the year. 'Sharks are circling' Hong Kong lost more than two per cent, with airline Cathay Pacific collapsing 6.5 per cent after it admitted to suffering a major data leak affecting up to 9.4 million passengers. Seoul shed 2.8 per cent as data showed the South Korean economy expanded at a slower pace than expected in the third quarter. Wellington lost 1.2 per cent, Manila fell 2.4 per cent and Taipei retreated 2.5 per cent. "With the S&P and Nasdaq having been drawn into the global equity maelstrom, the US bellwethers are no longer the invincible titans that have held up global market sentiment for what seems like an eternity," said Stephen Innes, head of Asia-Pacific trade at OANDA. "With China-US trade hopes fading as both sides appear to be digging in for the long haul things could get blustery in a hurry. Indeed the sharks are circling." Key figures around 0210 GMT Tokyo - Nikkei 225: DOWN 2.2 percent at 21,377.20 (close) Hong Kong - Hang Seng: DOWN 2.3 percent at 24,666.92 Shanghai - Composite: DOWN 1.9 percent at 2,554.36 Euro/dollar: UP at $1.1408 from $1.1393 at 2100 GMT Pound/dollar: UP at $1.2892 from $1.2884 Dollar/yen: DOWN at 111.90 from 112.19 yen Oil - West Texas Intermediate: DOWN 57 cents at $66.25 per barrel Oil - Brent Crude: DOWN 68 cents at $75.49 per barrel New York - Dow: DOWN 2.4 percent at 24,583.42 (close) New York - S&P 500: DOWN 3.1 percent at 2,656.10 (close) New York - Nasdaq: DOWN 4.4 percent at 7,108.40 (close) London - FTSE 100: UP 0.1 percent at 6,962.98 points (close)

Asian markets suffer bloodletting on trade, geopolitical fears

Asian markets rose Friday, tracking a rally on Wall Street where investors were buoyed by the Federal Reserve's positive outlook for the US economy, and oil added to gains with predictions it could be headed back to $100.

While concerns over the China-US trade row hang in the air, equities continue to be supported by optimism that the global economy and companies are in rude health.

That was reinforced by the Fed Wednesday as it lifted interest rates and indicated more to come over the next year citing the strong labour market and playing down concerns about vulnerabilities in the financial system.

"One thing that's telling is the current price action which sees investors continually coming back for more. That suggests the gushing US economy and not trade wars, continues to influence investors' decisions," said Stephen Innes, head of Asia-Pacific trading at OANDA.

All three Wall Street indexes ended with gains and Asia followed suit.

Tokyo led the way, ending the morning 1.7 per cent higher as exporters were boosted by the weaker yen, which is at its lowest level against the dollar this year.

Hong Kong added 0.5 per cent, Shanghai gained 0.8 per cent, Sydney rose 0.6 per cent and Singapore climbed 0.7 per cent. Wellington and Taipei each edged up 0.2 per cent while there were also solid performances in Manila and Jakarta, though Seoul edged slightly lower.

Euro struggles&nbsp;

While the prospect of higher US rates has lifted the dollar, the upbeat mood is also helping emerging market and high-yielding currencies, which have been swiped in recent weeks by the trade war fears.

The South Korean won, Indonesian rupiah, Thai baht and Mexican peso were all being bought while the Turkish lira jumped more than one per cent, despite ongoing concerns about the country's economy.

The euro continued to struggle after losing almost one per cent as Italy's populist government agreed on a budget deficit target of 2.4 per cent of gross domestic product for next year, fuelling fears of a bust-up with Brussels.

Crude prices extended gains on growing concerns about supplies following a decision not to increase output by key producers, just as Iran faces export sanctions and Venezuela continues to be dogged by political and economic crises.

Also, the US energy secretary this week ruled out using the country's emergency stockpiles to ease prices.

Bloomberg News reported that the chief executive of oil and gas major Total, Patrick Pouyanne, saw prices swinging to the $100 levels last seen in mid-2014.&nbsp;

"Everyone’s worried about the tightness in supply at the moment and that’s continuing to push up prices," Will Yun, a commodities analyst at Hyundai Futures, said. "But volatility is coming as we’re still waiting for further response from the US."

Asian markets rose Friday, tracking a rally on Wall Street where investors were buoyed by the Federal Reserve's positive outlook for the US economy, and oil added to gains with predictions it could be headed back to $100.

Asian markets rose Friday, tracking a rally on Wall Street where investors were buoyed by the Federal Reserve's positive outlook for the US economy, and oil added to gains with predictions it could be headed back to $100. While concerns over the China-US trade row hang in the air, equities continue to be supported by optimism that the global economy and companies are in rude health. That was reinforced by the Fed Wednesday as it lifted interest rates and indicated more to come over the next year citing the strong labour market and playing down concerns about vulnerabilities in the financial system. "One thing that's telling is the current price action which sees investors continually coming back for more. That suggests the gushing US economy and not trade wars, continues to influence investors' decisions," said Stephen Innes, head of Asia-Pacific trading at OANDA. All three Wall Street indexes ended with gains and Asia followed suit. Tokyo led the way, ending the morning 1.7 per cent higher as exporters were boosted by the weaker yen, which is at its lowest level against the dollar this year. Hong Kong added 0.5 per cent, Shanghai gained 0.8 per cent, Sydney rose 0.6 per cent and Singapore climbed 0.7 per cent. Wellington and Taipei each edged up 0.2 per cent while there were also solid performances in Manila and Jakarta, though Seoul edged slightly lower. Euro struggles While the prospect of higher US rates has lifted the dollar, the upbeat mood is also helping emerging market and high-yielding currencies, which have been swiped in recent weeks by the trade war fears. The South Korean won, Indonesian rupiah, Thai baht and Mexican peso were all being bought while the Turkish lira jumped more than one per cent, despite ongoing concerns about the country's economy. The euro continued to struggle after losing almost one per cent as Italy's populist government agreed on a budget deficit target of 2.4 per cent of gross domestic product for next year, fuelling fears of a bust-up with Brussels. Crude prices extended gains on growing concerns about supplies following a decision not to increase output by key producers, just as Iran faces export sanctions and Venezuela continues to be dogged by political and economic crises. Also, the US energy secretary this week ruled out using the country's emergency stockpiles to ease prices. Bloomberg News reported that the chief executive of oil and gas major Total, Patrick Pouyanne, saw prices swinging to the $100 levels last seen in mid-2014. "Everyone’s worried about the tightness in supply at the moment and that’s continuing to push up prices," Will Yun, a commodities analyst at Hyundai Futures, said. "But volatility is coming as we’re still waiting for further response from the US."

Asian markets rally with Wall Street on growth optimism

Asian markets swung on Thursday as investors considered the prospect of more US interest rate hikes and Donald Trump's latest broadside in his trade war with China.

The US central bank lifted borrowing costs for the third time this year, as expected, citing an increasingly strong economy and jobs market, with governor Jerome Powell saying he saw no vulnerabilities in the financial system.

The post-meeting statement removed mention of being "accommodative", which was seen as symbolically important as observers said it indicated the bank is moving away from the days of lower rates. However, Powell said this did not mean the Fed would tighten policy more quickly.

Still, the bank is widely expected to lift rates again in December, while analysts are betting on another three in 2019.

Powell also said there remained risks from trade tensions, which could lift inflation, but added it was too soon to tell what impact it would have.

After the meeting, Wall Street's three main indexes fell and the dollar edged up on the prospect of higher rates through the year.

In Asia, markets fluctuated but by the end of the morning, Tokyo was down 0.1 per cent, while Singapore added 0.5 per cent and Seoul rose 0.6 per cent.

Hong Kong edged up 0.2 per cent, Shanghai shed 0.2 per cent, Taipei gained 0.3 per cent and Sydney was flat.

Eye on Hong Kong rates&nbsp;

Trump ramped up his criticism of China on Wednesday, accusing it of trying to sway November's mid-term elections against his Republican party because of the trade row and admitting his relationship with President Xi Jinping may have been permanently damaged.

His comments will do little to ease concerns about an all-out trade war between the two economic giants, which have exchanged tariffs on hundreds of billions of dollars worth of goods, with no sign of a let-up in hostilities.

On oil markets, both main contracts jumped more than one per cent after US energy secretary Rick Perry pushed back against speculation the government could tap its emergency stockpiles in order to lower prices.

Crude is around four-year highs after OPEC and other key producers decided against lifting output, despite being urged to do so by Trump.

Hong Kong dealers are keeping a close eye on commercial interest rates after the Hong Kong Monetary Authority -- the de facto central bank -- lifted its benchmark rate Thursday in line with the Fed owing to the city's dollar peg.

But retail borrowing costs have not been raised by lenders since 2006 owing to a huge pile of cash swirling around in Hong Kong's financial system, which means they have had easy access to cheap money.

However, with much of that cash now having been soaked up by the HKMA to support the weakening local dollar, bets are on a rise in rates.

HKMA chief executive Norman Chan said: "Many market participants are expecting that the prime rate and saving deposit rates may soon be raised."

The prospect of higher borrowing costs for consumers hit property stocks in Hong Kong, with Sino Land down more than one per cent, Country Garden 0.8 per cent off and New World Development 0.2 per cent lower.

Asian markets swung on Thursday as investors considered the prospect of more US interest rate hikes and Donald Trump's latest broadside in his trade war with China.

Asian markets swung on Thursday as investors considered the prospect of more US interest rate hikes and Donald Trump's latest broadside in his trade war with China. The US central bank lifted borrowing costs for the third time this year, as expected, citing an increasingly strong economy and jobs market, with governor Jerome Powell saying he saw no vulnerabilities in the financial system. The post-meeting statement removed mention of being "accommodative", which was seen as symbolically important as observers said it indicated the bank is moving away from the days of lower rates. However, Powell said this did not mean the Fed would tighten policy more quickly. Still, the bank is widely expected to lift rates again in December, while analysts are betting on another three in 2019. Powell also said there remained risks from trade tensions, which could lift inflation, but added it was too soon to tell what impact it would have. After the meeting, Wall Street's three main indexes fell and the dollar edged up on the prospect of higher rates through the year. In Asia, markets fluctuated but by the end of the morning, Tokyo was down 0.1 per cent, while Singapore added 0.5 per cent and Seoul rose 0.6 per cent. Hong Kong edged up 0.2 per cent, Shanghai shed 0.2 per cent, Taipei gained 0.3 per cent and Sydney was flat. Eye on Hong Kong rates Trump ramped up his criticism of China on Wednesday, accusing it of trying to sway November's mid-term elections against his Republican party because of the trade row and admitting his relationship with President Xi Jinping may have been permanently damaged. His comments will do little to ease concerns about an all-out trade war between the two economic giants, which have exchanged tariffs on hundreds of billions of dollars worth of goods, with no sign of a let-up in hostilities. On oil markets, both main contracts jumped more than one per cent after US energy secretary Rick Perry pushed back against speculation the government could tap its emergency stockpiles in order to lower prices. Crude is around four-year highs after OPEC and other key producers decided against lifting output, despite being urged to do so by Trump. Hong Kong dealers are keeping a close eye on commercial interest rates after the Hong Kong Monetary Authority -- the de facto central bank -- lifted its benchmark rate Thursday in line with the Fed owing to the city's dollar peg. But retail borrowing costs have not been raised by lenders since 2006 owing to a huge pile of cash swirling around in Hong Kong's financial system, which means they have had easy access to cheap money. However, with much of that cash now having been soaked up by the HKMA to support the weakening local dollar, bets are on a rise in rates. HKMA chief executive Norman Chan said: "Many market participants are expecting that the prime rate and saving deposit rates may soon be raised." The prospect of higher borrowing costs for consumers hit property stocks in Hong Kong, with Sino Land down more than one per cent, Country Garden 0.8 per cent off and New World Development 0.2 per cent lower.

Asian markets fluctuate after Fed hike, Trump China comments

HSBC will invest $15-17 billion in the next three years in areas including technology and its core Asian markets of Hong Kong and China as it swings from a strategy of cost-cutting to growth, new Chief Executive John Flint said on Monday.

The announcement is Flint's first public indication to shareholders of the strategy he intends to pursue at HSBC, which has struggled to meet its profit goals in recent years after a shrinking of its global empire also cut income.

The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns.

The bank is targeting a return on tangible equity of 11 per cent by 2020, Flint said and will sustain its dividends at current levels.

"After a period of restructuring, it is now time for HSBC to get back into growth mode," Flint said.

The main points of the bank's refreshed strategy will likely come as little surprise for HSBC investors, with the focus squarely on further expansion in China and its prosperous southern Pearl River Delta region in particular.

The bank will also pursue further expansion in the British mortgage market as one of eight new strategic targets, HSBC said.

HSBC shares showed little reaction to the announcement, remaining flat at 0852 GMT compared with as 1 per cent rise in the FTSE 350 British banks index.

The bank has found no silver bullet for its underperforming US&nbspbusiness, the strategy update released to investors on Monday showed, with HSBC set to focus on trying to grow its market share among internationally-focused mid-sized companies.

Flint in February said the bank was reviewing its US&nbspfranchise, which has suffered from lack of scale and the consequences of its disastrous $15 billion acquisition of consumer lender Household in 2003.

The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns

HSBC will invest $15-17 billion in the next three years in areas including technology and its core Asian markets of Hong Kong and China as it swings from a strategy of cost-cutting to growth, new Chief Executive John Flint said on Monday. The announcement is Flint's first public indication to shareholders of the strategy he intends to pursue at HSBC, which has struggled to meet its profit goals in recent years after a shrinking of its global empire also cut income. The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns. The bank is targeting a return on tangible equity of 11 per cent by 2020, Flint said and will sustain its dividends at current levels. "After a period of restructuring, it is now time for HSBC to get back into growth mode," Flint said. The main points of the bank's refreshed strategy will likely come as little surprise for HSBC investors, with the focus squarely on further expansion in China and its prosperous southern Pearl River Delta region in particular. The bank will also pursue further expansion in the British mortgage market as one of eight new strategic targets, HSBC said. HSBC shares showed little reaction to the announcement, remaining flat at 0852 GMT compared with as 1 per cent rise in the FTSE 350 British banks index. The bank has found no silver bullet for its underperforming US&nbspbusiness, the strategy update released to investors on Monday showed, with HSBC set to focus on trying to grow its market share among internationally-focused mid-sized companies. Flint in February said the bank was reviewing its US&nbspfranchise, which has suffered from lack of scale and the consequences of its disastrous $15 billion acquisition of consumer lender Household in 2003.

HSBC to invest $15-17 billion by 2020 as strategy pivots to growth

Markets saw a price correction on the first session of the new June series derivatives on Friday, with the Sensex losing over 95 points and the Nifty closing below the 10,700-mark.

Weakness in banking stocks offset gains in auto despite robust GDP numbers for the January-March quarter amid sustained foreign fund outflows.

Leads from other Asian markets too were not supportive on renewed global trade war worries.

The 30-share Sensex closed lower by 95.12 points, or 0.27 per cent, at 35,227.26 after shuttling between 35,438.22 and 35,177.35 on alternate bouts of buying and selling.&nbsp;

It had rallied 416.27 points yesterday on optimistic buying by participants ahead of GDP numbers.

Also, the NSE Nifty shed 39.95 points, or 0.37 per cent, to finish at 10,696.20. During the session, it moved between 10,764.75 and 10,681.50.

Markets started on a positive note after data showed that India's January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy.

However, early gains were completely wiped-off after selling emerged in the later part of the session.

Both the Sensex and Nifty, however, registered gains for the week.&nbsp;

The Sensex climbed 302.39 points, or 0.87 per cent, while the Nifty gained 91.05 points, or 0.86 per cent, during this week.

Leads from other Asian markets too were not supportive on renewed global trade war worries

Markets saw a price correction on the first session of the new June series derivatives on Friday, with the Sensex losing over 95 points and the Nifty closing below the 10,700-mark. Weakness in banking stocks offset gains in auto despite robust GDP numbers for the January-March quarter amid sustained foreign fund outflows. Leads from other Asian markets too were not supportive on renewed global trade war worries. The 30-share Sensex closed lower by 95.12 points, or 0.27 per cent, at 35,227.26 after shuttling between 35,438.22 and 35,177.35 on alternate bouts of buying and selling. It had rallied 416.27 points yesterday on optimistic buying by participants ahead of GDP numbers. Also, the NSE Nifty shed 39.95 points, or 0.37 per cent, to finish at 10,696.20. During the session, it moved between 10,764.75 and 10,681.50. Markets started on a positive note after data showed that India's January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy. However, early gains were completely wiped-off after selling emerged in the later part of the session. Both the Sensex and Nifty, however, registered gains for the week. The Sensex climbed 302.39 points, or 0.87 per cent, while the Nifty gained 91.05 points, or 0.86 per cent, during this week.

Sensex sheds 95 points; banking, PSU stocks slip

The BSE Sensex logged a fall of 156 points to end at 35,387.88 on Wednesday amid uncertainty over government formation in Karnataka and no let-up in selling by foreign investors.

Moreover, there was a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea.

Brokers said investor sentiment was subdued following uncertainty over government formation in Karnataka, which has thrown up a hung verdict.

The 30-share Sensex opened lower at 35,452.35 points and moved between 35,241.63 and 35,543.89 before settling lower by 156.06 points, or 0.44 per cent, at 35,387.88.

On Tuesday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.

The 50-share NSE Nifty too stayed in the red through the session and finally settled 60.75 points, or 0.56 per cent down at 10,741.10. Intra-day, it moved between 10,699.70 and 10,790.45.

On the macro front, trade deficit widened to $13.7 billion in April, which further affected momentum.

Foreign portfolio investors (FPIs), who have been net sellers in the past few sessions, sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, according to provisional data.&nbsp

There was also a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea

The BSE Sensex logged a fall of 156 points to end at 35,387.88 on Wednesday amid uncertainty over government formation in Karnataka and no let-up in selling by foreign investors. Moreover, there was a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea. Brokers said investor sentiment was subdued following uncertainty over government formation in Karnataka, which has thrown up a hung verdict. The 30-share Sensex opened lower at 35,452.35 points and moved between 35,241.63 and 35,543.89 before settling lower by 156.06 points, or 0.44 per cent, at 35,387.88. On Tuesday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government. The 50-share NSE Nifty too stayed in the red through the session and finally settled 60.75 points, or 0.56 per cent down at 10,741.10. Intra-day, it moved between 10,699.70 and 10,790.45. On the macro front, trade deficit widened to $13.7 billion in April, which further affected momentum. Foreign portfolio investors (FPIs), who have been net sellers in the past few sessions, sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, according to provisional data.

Sensex sheds at 156 points on political uncertainty

Asian markets built on the past week's gains Friday following another rally in New York as traders welcomed a below-forecast US inflation read that dampened expectations for a sharp lift in interest rates.

While geopolitical tensions continue to linger after Donald Trump pulled out of the Iran nuclear pact this week, dealers were buoyed by the prospect of cheaper borrowing after data showed consumer prices edged up only slightly in April.

News that Trump and Kim Jong Un had agreed to meet on June 12 in Singapore -- the first US-North Korean summit in history -- lifted optimism and fuelled hopes for peace on the Korean peninsula.

The inflation data provided some relief to trading floors, which have fluctuated over recent months on worries that an improving US economy and an expected surge in inflation will force the Federal Reserve to tighten monetary policy.

"The market is breathing a sigh of relief that there was not an upside surprise to the inflation stats," Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email to clients.

The news lifted all three main indexes on Wall Street and those gains extended into Asia.

Hong Kong rose one per cent, marking a fifth-straight gain, while Tokyo ended 1.2 per cent higher.

Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains.

Manila was 2.3 per cent higher a day after data showed the economy expanded at a strong pace in the first three months of the year, and despite a central bank interest rate hike.

However, Sydney finished marginally lower and Shanghai lost 0.4 per cent.

Oil rally sputters

Greg McKenna, chief market strategist at AxiTrader, offered a word of caution, warning: "Sure, (consumer price) inflation didn't surprise on the upside.

"But that doesn't mean the Fed isn't still going to raise rates two or three more times this year and it doesn't mean quantitative tightening isn't going to continue."

Still, lower expectations for US rates hurt the dollar on Thursday and it struggled to recover in Asia with high-yielding currencies such as the Australian dollar, Mexican peso, Indonesian rupiah and South Korean won gaining ground.

Even the pound held its own despite the Bank of England slashing its economic growth and inflation outlook.

Movements in the crude market were tepid after recent surges that came on the back of Trump's Iran decision and data showing US demand for the commodity appeared to be picking up.

However, both main contracts remain around highs not seen since November 2014 and there is still talk of further rises to around $80 a barrel.

An exchange of rockets between Israel and Iran was also keeping traders wary of a flare-up in the volatile Middle East, with the Syria crisis still raging.

In early European trade London and Frankfurt each rose 0.1 per cent but Paris shed 0.2 per cent.

Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains

Asian markets built on the past week's gains Friday following another rally in New York as traders welcomed a below-forecast US inflation read that dampened expectations for a sharp lift in interest rates. While geopolitical tensions continue to linger after Donald Trump pulled out of the Iran nuclear pact this week, dealers were buoyed by the prospect of cheaper borrowing after data showed consumer prices edged up only slightly in April. News that Trump and Kim Jong Un had agreed to meet on June 12 in Singapore -- the first US-North Korean summit in history -- lifted optimism and fuelled hopes for peace on the Korean peninsula. The inflation data provided some relief to trading floors, which have fluctuated over recent months on worries that an improving US economy and an expected surge in inflation will force the Federal Reserve to tighten monetary policy. "The market is breathing a sigh of relief that there was not an upside surprise to the inflation stats," Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email to clients. The news lifted all three main indexes on Wall Street and those gains extended into Asia. Hong Kong rose one per cent, marking a fifth-straight gain, while Tokyo ended 1.2 per cent higher. Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains. Manila was 2.3 per cent higher a day after data showed the economy expanded at a strong pace in the first three months of the year, and despite a central bank interest rate hike. However, Sydney finished marginally lower and Shanghai lost 0.4 per cent. Oil rally sputters Greg McKenna, chief market strategist at AxiTrader, offered a word of caution, warning: "Sure, (consumer price) inflation didn't surprise on the upside. "But that doesn't mean the Fed isn't still going to raise rates two or three more times this year and it doesn't mean quantitative tightening isn't going to continue." Still, lower expectations for US rates hurt the dollar on Thursday and it struggled to recover in Asia with high-yielding currencies such as the Australian dollar, Mexican peso, Indonesian rupiah and South Korean won gaining ground. Even the pound held its own despite the Bank of England slashing its economic growth and inflation outlook. Movements in the crude market were tepid after recent surges that came on the back of Trump's Iran decision and data showing US demand for the commodity appeared to be picking up. However, both main contracts remain around highs not seen since November 2014 and there is still talk of further rises to around $80 a barrel. An exchange of rockets between Israel and Iran was also keeping traders wary of a flare-up in the volatile Middle East, with the Syria crisis still raging. In early European trade London and Frankfurt each rose 0.1 per cent but Paris shed 0.2 per cent.

Most Asian markets end healthy week on a positive note

Asian stocks plunged Tuesday after a<a href="http://www.wionews.com/business-economy/wall-street-crash-dow-jones-plunges-to-historic-low-sp-500-nasdaq-hit-31929"> record-breaking loss on Wall Street</a>, extending a global rout as panicked investors fret over rising US borrowing costs and take profits after months of market euphoria.

Tokyo led a collapse throughout the region, briefly diving almost seven percent before closing down 4.7 per cent. Hong Kong was down more than four percent and Sydney and Singapore each sank three per cent.

Other assets were also hammered, with a slump in oil prices scything energy firms, while higher-yielding currencies have been hit by a flight to safe havens.

Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history and wiped out all its 2018 gains, while the S&amp;P 500 also took a beating to sit down for the year.

Global stocks have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.

The winning streak was fanned by the passage of Donald Trump&#39;s massive tax cuts bill in December, which led several big-name firms to announce pay rises and bonuses.

At the same time the economy continues to improve across the board.

Volatility warning

But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields -- at four-year highs -- and the likelihood of fresh Federal Reserve interest rate rises.

Selling kicked in on Friday when official data showed another jump in US jobs and a rally in wage growth, fuelling fears that inflation will surge this year and the Fed will be forced to raises rates more than expected.&nbsp;

The so-called Vix volatility index more than doubled in US trade on Monday.

Among other Asian markets Seoul lost 1.5 percent, Taipei sank five percent, Manila plunged 1.1 percent and Shanghai gave up 3.4 percent. Mumbai was 0.9 percent lower, Bangkok plunged 2.4 percent and Jakarta and Kuala Lumpur were also well down.

&quot;How far it goes down? You tell me,&quot; Steven Wieting, global chief investment strategist at Citigroup, told Bloomberg TV. You cannot keep up this speed of decline &quot;day after day after day without finding some sort of bottom rather quickly&quot;, he added, predicting further volatility.

Energy firms were among the biggest victims, with Inpex losing more than four percent in Tokyo, while CNOOC, PetroChina and Sinopec were down between five and 6.5 percent in Hong Kong. Sydney-listed Woodside Petroleum was off nearly four three percent and BHP shed 2.7 percent.

Tech giants were also targeted after disappointing earnings reports from Apple and Google parent Alphabet. Tencent, Sharp and Samsung all got a bloody nose.

On currency markets the yen, considered a go-to unit in times of turmoil and uncertainty, climbed against the dollar. The greenback, however, rose against the pound and euro thanks to the rate rise expectations.

Bitcoin hammered

The commodity-dependent Australian dollar tanked one percent against its US counterpart, while South Korea&#39;s won, Indonesia&#39;s rupiah and the Mexican peso were among the other big losers.

And bitcoin continued its spiral downwards after some banks banned their customers from buying it with credit cards. The news is the latest to hit the cryptocurrency after recent crackdowns by authorities in India, South Korea, China and Russia.

The unit was down more than 20 percent to a three-month low below $6,000 -- less than a third of its value near $20,000 in December, which sparked warnings of a bubble.

However, while trading floors are awash with red, analysts remained upbeat, saying the selling represented a much-needed correction.

Peter Garnry, head of equity strategy at Saxo Bank, who last month predicted a pullback, said: &quot;We believe this is a healthy correction in equity markets but also likely short-lived as the higher US 10-year yield is still not in the danger zone.&quot;

And Sean Fenton, a portfolio manager at Tribeca Investment Partners in Sydney, said: &quot;I actually think there&#39;s buying opportunities, maybe not today, but through this week as this sell-off exacerbates.&quot;

Key figures around 0710 GMT

Tokyo - Nikkei 225: DOWN 4.7 percent at 21,610.24 (close)

Hong Kong - Hang Seng: DOWN 4.5 percent at 30,789.12

Shanghai - Composite: DOWN 3.4 percent at 3,370.65 (close)

Euro/dollar: DOWN at $1.2370 from $1.2373 at 2200 GMT

Pound/dollar: DOWN at $1.3955 from $1.3958

Dollar/yen: DOWN at 108.93 yen from 109.13 yen

Oil - West Texas Intermediate: DOWN 66 cents at $63.49 per barrel

Oil - Brent North Sea: DOWN 67 cents at $66.95 per barrel

New York - DOW: DOWN 4.6 percent at 24,345.75 (close)

New York - S&amp;P 500: DOWN 4.1 percent at 2,648.94 (close)

London - FTSE 100: DOWN 1.5 percent at 7,334.98 (close)

Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history, wiping out all its 2018 gains

Asian stocks plunged Tuesday after a record-breaking loss on Wall Street, extending a global rout as panicked investors fret over rising US borrowing costs and take profits after months of market euphoria. Tokyo led a collapse throughout the region, briefly diving almost seven percent before closing down 4.7 per cent. Hong Kong was down more than four percent and Sydney and Singapore each sank three per cent. Other assets were also hammered, with a slump in oil prices scything energy firms, while higher-yielding currencies have been hit by a flight to safe havens. Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history and wiped out all its 2018 gains, while the S&P 500 also took a beating to sit down for the year. Global stocks have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook. The winning streak was fanned by the passage of Donald Trump's massive tax cuts bill in December, which led several big-name firms to announce pay rises and bonuses. At the same time the economy continues to improve across the board. Volatility warning But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields -- at four-year highs -- and the likelihood of fresh Federal Reserve interest rate rises. Selling kicked in on Friday when official data showed another jump in US jobs and a rally in wage growth, fuelling fears that inflation will surge this year and the Fed will be forced to raises rates more than expected. The so-called Vix volatility index more than doubled in US trade on Monday. Among other Asian markets Seoul lost 1.5 percent, Taipei sank five percent, Manila plunged 1.1 percent and Shanghai gave up 3.4 percent. Mumbai was 0.9 percent lower, Bangkok plunged 2.4 percent and Jakarta and Kuala Lumpur were also well down. "How far it goes down? You tell me," Steven Wieting, global chief investment strategist at Citigroup, told Bloomberg TV. You cannot keep up this speed of decline "day after day after day without finding some sort of bottom rather quickly", he added, predicting further volatility. Energy firms were among the biggest victims, with Inpex losing more than four percent in Tokyo, while CNOOC, PetroChina and Sinopec were down between five and 6.5 percent in Hong Kong. Sydney-listed Woodside Petroleum was off nearly four three percent and BHP shed 2.7 percent. Tech giants were also targeted after disappointing earnings reports from Apple and Google parent Alphabet. Tencent, Sharp and Samsung all got a bloody nose. On currency markets the yen, considered a go-to unit in times of turmoil and uncertainty, climbed against the dollar. The greenback, however, rose against the pound and euro thanks to the rate rise expectations. Bitcoin hammered The commodity-dependent Australian dollar tanked one percent against its US counterpart, while South Korea's won, Indonesia's rupiah and the Mexican peso were among the other big losers. And bitcoin continued its spiral downwards after some banks banned their customers from buying it with credit cards. The news is the latest to hit the cryptocurrency after recent crackdowns by authorities in India, South Korea, China and Russia. The unit was down more than 20 percent to a three-month low below $6,000 -- less than a third of its value near $20,000 in December, which sparked warnings of a bubble. However, while trading floors are awash with red, analysts remained upbeat, saying the selling represented a much-needed correction. Peter Garnry, head of equity strategy at Saxo Bank, who last month predicted a pullback, said: "We believe this is a healthy correction in equity markets but also likely short-lived as the higher US 10-year yield is still not in the danger zone." And Sean Fenton, a portfolio manager at Tribeca Investment Partners in Sydney, said: "I actually think there's buying opportunities, maybe not today, but through this week as this sell-off exacerbates." Key figures around 0710 GMT Tokyo - Nikkei 225: DOWN 4.7 percent at 21,610.24 (close) Hong Kong - Hang Seng: DOWN 4.5 percent at 30,789.12 Shanghai - Composite: DOWN 3.4 percent at 3,370.65 (close) Euro/dollar: DOWN at $1.2370 from $1.2373 at 2200 GMT Pound/dollar: DOWN at $1.3955 from $1.3958 Dollar/yen: DOWN at 108.93 yen from 109.13 yen Oil - West Texas Intermediate: DOWN 66 cents at $63.49 per barrel Oil - Brent North Sea: DOWN 67 cents at $66.95 per barrel New York - DOW: DOWN 4.6 percent at 24,345.75 (close) New York - S&P 500: DOWN 4.1 percent at 2,648.94 (close) London - FTSE 100: DOWN 1.5 percent at 7,334.98 (close)

Asian markets plunge as Wall Street rout spreads

The benchmark BSE Sensex rose by 92 points to 34,936.03 in early trade on Tuesday on continued buying by investors driven by encouraging quarterly earnings amid a firm trend in other Asian bourses.

The 30-share index, which gained 410.44 points in the previous three sessions, rose further by 92.52 points, or 0.26 per cent, at 34,936.03.

IT, capital goods, consumer durables and FMCG stocks were leading the rally.

The NSE Nifty was also trading higher by 20.25 points, or 0.18 per cent, at 10,761.80.

Brokers said that the market mood remained buoyant, bolstered by foreign institutional investors&#39; buying coupled with a firming trend at other Asian markets.

They said, however, concerns prevailed over trade deficit ballooning to a three-year high.

Trade deficit or difference between imports and exports was USD 14.88 billion in December, up about 41 per cent year- on-year, as crude oil and gold import bill inflated, the commerce ministry data showed.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 32.92 crore on net basis while domestic institutional investors (DIIs) sold equities to the tune of Rs 173.28 crore yesterday, provisional data showed.

In the Asian region, Hong Kong&#39;s Hang Seng was up 1.08 per cent, Japan&#39;s Nikkei gained 0.55 per cent while Shanghai Composite index edged higher by 0.28 per cent in early trade on Tuesday.

The US markets were shut on Monday for the Martin Luther King Jr. Holiday.

IT, capital goods, consumer durables and FMCG stocks were leading the rally.

The benchmark BSE Sensex rose by 92 points to 34,936.03 in early trade on Tuesday on continued buying by investors driven by encouraging quarterly earnings amid a firm trend in other Asian bourses. The 30-share index, which gained 410.44 points in the previous three sessions, rose further by 92.52 points, or 0.26 per cent, at 34,936.03. IT, capital goods, consumer durables and FMCG stocks were leading the rally. The NSE Nifty was also trading higher by 20.25 points, or 0.18 per cent, at 10,761.80. Brokers said that the market mood remained buoyant, bolstered by foreign institutional investors' buying coupled with a firming trend at other Asian markets. They said, however, concerns prevailed over trade deficit ballooning to a three-year high. Trade deficit or difference between imports and exports was USD 14.88 billion in December, up about 41 per cent year- on-year, as crude oil and gold import bill inflated, the commerce ministry data showed. Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 32.92 crore on net basis while domestic institutional investors (DIIs) sold equities to the tune of Rs 173.28 crore yesterday, provisional data showed. In the Asian region, Hong Kong's Hang Seng was up 1.08 per cent, Japan's Nikkei gained 0.55 per cent while Shanghai Composite index edged higher by 0.28 per cent in early trade on Tuesday. The US markets were shut on Monday for the Martin Luther King Jr. Holiday.

Sensex gains 92 points on earnings, global cues

The BSE Sensex soared to life-time high of 34,331.85 and the NSE Nifty crossed the 10,600 level for the first time in early trade today on strong gains in pharma, IT and banking stocks amid optimism over quarterly earnings by corporates.

Asian markets trading with gains after more records on Wall Street influenced the trading sentiment here.

The 30-share Sensex soared by 178 points, or 0.52 per cent, to 34,331.85 points, breaching its previous record high (intra-day) of 34,188.85 hit on January 5.

The gauge had gained 360.47 points in the previous two sessions.

All the sectoral indices, led by realty, healthcare and infrastructure were trading in the positive zone, rising up to 1.52 per cent

Major gainers that helped both the key indices to scale new highs were Sun Pharma, Yes Bank, Dr Reddy&#39;s, L&amp;T, Infosys, HDFC Ltd, Power Grid, ONGC, Coal India, ICICI Bank, Indusind Bank, Hero MotoCorp, Tata Steel and Tata Motors, gaining up to 3.72 per cent.

The 50-issue Nifty crossed the 10,600 level for the first time by gaining 46.95 points, or 0.44 per cent, to trade at an all-time high of 10,605.80 surpassing its previous intra-day high of 10,566.10 touched on January 5.

Among 50 Nifty scrips, 42 were trading with gains, led by pharma stocks.

Sentiment remained upbeat on sustained capital inflows and widespread buying by retail investors amid expectations of encouraging third quarterly earnings, to be announced this week, brokers said.

Among Asian markets, Hong Kong&#39;s Hang Seng index was up 0.01 per cent while Shanghai Composite Index rose 0.39 per cent. Financial markets in Japan are closed today for a public holiday.

The US Dow Jones Industrial Average ended 0.88 per cent higher in Friday&#39;s trade.

Asian markets trading with gains after more records on Wall Street influenced the trading sentiment

The BSE Sensex soared to life-time high of 34,331.85 and the NSE Nifty crossed the 10,600 level for the first time in early trade today on strong gains in pharma, IT and banking stocks amid optimism over quarterly earnings by corporates. Asian markets trading with gains after more records on Wall Street influenced the trading sentiment here. The 30-share Sensex soared by 178 points, or 0.52 per cent, to 34,331.85 points, breaching its previous record high (intra-day) of 34,188.85 hit on January 5. The gauge had gained 360.47 points in the previous two sessions. All the sectoral indices, led by realty, healthcare and infrastructure were trading in the positive zone, rising up to 1.52 per cent Major gainers that helped both the key indices to scale new highs were Sun Pharma, Yes Bank, Dr Reddy's, L&T, Infosys, HDFC Ltd, Power Grid, ONGC, Coal India, ICICI Bank, Indusind Bank, Hero MotoCorp, Tata Steel and Tata Motors, gaining up to 3.72 per cent. The 50-issue Nifty crossed the 10,600 level for the first time by gaining 46.95 points, or 0.44 per cent, to trade at an all-time high of 10,605.80 surpassing its previous intra-day high of 10,566.10 touched on January 5. Among 50 Nifty scrips, 42 were trading with gains, led by pharma stocks. Sentiment remained upbeat on sustained capital inflows and widespread buying by retail investors amid expectations of encouraging third quarterly earnings, to be announced this week, brokers said. Among Asian markets, Hong Kong's Hang Seng index was up 0.01 per cent while Shanghai Composite Index rose 0.39 per cent. Financial markets in Japan are closed today for a public holiday. The US Dow Jones Industrial Average ended 0.88 per cent higher in Friday's trade.

Sensex at new high on fund inflows; Nifty above 10,600

Asian stocks struggled again on Thursday, with uncertainty over next week&#39;s presidential election sending investors rushing for the sidelines, pushing safe havens such as the yen and gold higher.

With just days to go until the November 8 poll, maverick tycoon Donald Trump has closed what was once considered an unassailable lead over market-favourite Hillary Clinton, upending early confidence.

The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon.

And while she is still tipped to win, analysts said the late run by Trump has fired uncertainty, sparking a sell-off across the world.

&ldquo;The move to take risk off the table continues,&rdquo; Chris Weston, chief market strategist in Melbourne at IG Ltd., said in an e-mail to clients.

&ldquo;We have reached a point where there is a buyers&#39; strike, where money managers have reduced their risk, increased cash allocations within the portfolio and are happy to ride out this mini-storm of uncertainty. This is a perfect breeding ground for short sellers who love the combination of uncertainty and lack of bids.&rdquo;

In Asian trade Hong Kong was 0.2 per cent down in the afternoon and Singapore gave up 0.3 per cent while Sydney closed 0.1 per cent lower and Wellington tanked more than one per cent. There were also deep losses in Taipei and Manila.

But Shanghai ended 0.8 per cent higher and Seoul put on 0.3 per cent. Tokyo was closed for a public holiday.

Dollar struggles

The rush for safety saw gold prices climb back above $1,300 for the first time since the start of October, while the yen was also stronger.

In Asian trade the dollar bought 102.73 yen, down from 103.42 yen in New York and well off the levels above 105 yen seen at the start of the week.

The euro, pound and most high-yielding Asia-Pacific units also made inroads on the greenback, which got no help from an expected Federal Reserve decision to hold interest rates and flag a possible hike in December.

Fears of a Trump presidency has led to speculation the Fed could hold off a December hike, which has been largely priced into markets, owing to fears about his impact on the economy.

The Mexican peso fell further against the dollar, with the greenback buying 19.45 pesos, against 19.36 pesos in the US.

The peso has steadily fallen on concerns of a potential victory for Trump, whose anti-Mexican rhetoric has included a pledge to remove undocumented migrants, build a wall along the border and tear up a US trade deal with its neighbour to the south.

Attention now turns to the release Friday of October US jobs data, which will provide a clearer snapshot of the US economy, with analysts saying a strong reading will cement the argument for a rate rise next month.

The weaker dollar provided some much needed lift to oil prices, with both main contracts rallying after a recent sell-off fuelled by worries over the chances of success for OPEC&#39;s agreement to cut production. Crude is priced in dollars and a weaker unit makes the commodity cheaper for holders of other currencies.

(AFP)

&nbsp;

&nbsp;

With just days left, Donald Trump has closed what was thought of as an unassailable lead over market favourite Hillary Clinton

Asian stocks struggled again on Thursday, with uncertainty over next week's presidential election sending investors rushing for the sidelines, pushing safe havens such as the yen and gold higher. With just days to go until the November 8 poll, maverick tycoon Donald Trump has closed what was once considered an unassailable lead over market-favourite Hillary Clinton, upending early confidence. The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon. And while she is still tipped to win, analysts said the late run by Trump has fired uncertainty, sparking a sell-off across the world. “The move to take risk off the table continues,” Chris Weston, chief market strategist in Melbourne at IG Ltd., said in an e-mail to clients. “We have reached a point where there is a buyers' strike, where money managers have reduced their risk, increased cash allocations within the portfolio and are happy to ride out this mini-storm of uncertainty. This is a perfect breeding ground for short sellers who love the combination of uncertainty and lack of bids.” In Asian trade Hong Kong was 0.2 per cent down in the afternoon and Singapore gave up 0.3 per cent while Sydney closed 0.1 per cent lower and Wellington tanked more than one per cent. There were also deep losses in Taipei and Manila. But Shanghai ended 0.8 per cent higher and Seoul put on 0.3 per cent. Tokyo was closed for a public holiday. Dollar struggles The rush for safety saw gold prices climb back above $1,300 for the first time since the start of October, while the yen was also stronger. In Asian trade the dollar bought 102.73 yen, down from 103.42 yen in New York and well off the levels above 105 yen seen at the start of the week. The euro, pound and most high-yielding Asia-Pacific units also made inroads on the greenback, which got no help from an expected Federal Reserve decision to hold interest rates and flag a possible hike in December. Fears of a Trump presidency has led to speculation the Fed could hold off a December hike, which has been largely priced into markets, owing to fears about his impact on the economy. The Mexican peso fell further against the dollar, with the greenback buying 19.45 pesos, against 19.36 pesos in the US. The peso has steadily fallen on concerns of a potential victory for Trump, whose anti-Mexican rhetoric has included a pledge to remove undocumented migrants, build a wall along the border and tear up a US trade deal with its neighbour to the south. Attention now turns to the release Friday of October US jobs data, which will provide a clearer snapshot of the US economy, with analysts saying a strong reading will cement the argument for a rate rise next month. The weaker dollar provided some much needed lift to oil prices, with both main contracts rallying after a recent sell-off fuelled by worries over the chances of success for OPEC's agreement to cut production. Crude is priced in dollars and a weaker unit makes the commodity cheaper for holders of other currencies. (AFP)

Asian markets on edge over election uncertainty

Asian stocks struggled again on Thursday, with uncertainty over next week&#39;s presidential election sending investors rushing for the sidelines, pushing safe havens such as the yen and gold higher.

With just days to go until the November 8 poll, maverick tycoon Donald Trump has closed what was once considered an unassailable lead over market-favourite Hillary Clinton, upending early confidence.

The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon.

And while she is still tipped to win, analysts said the late run by Trump has fired uncertainty, sparking a sell-off across the world.

&ldquo;The move to take risk off the table continues,&rdquo; Chris Weston, chief market strategist in Melbourne at IG Ltd., said in an e-mail to clients.

&ldquo;We have reached a point where there is a buyers&#39; strike, where money managers have reduced their risk, increased cash allocations within the portfolio and are happy to ride out this mini-storm of uncertainty. This is a perfect breeding ground for short sellers who love the combination of uncertainty and lack of bids.&rdquo;

In Asian trade Hong Kong was 0.2 per cent down in the afternoon and Singapore gave up 0.3 per cent while Sydney closed 0.1 per cent lower and Wellington tanked more than one per cent. There were also deep losses in Taipei and Manila.

But Shanghai ended 0.8 per cent higher and Seoul put on 0.3 per cent. Tokyo was closed for a public holiday.

Dollar struggles

The rush for safety saw gold prices climb back above $1,300 for the first time since the start of October, while the yen was also stronger.

In Asian trade the dollar bought 102.73 yen, down from 103.42 yen in New York and well off the levels above 105 yen seen at the start of the week.

The euro, pound and most high-yielding Asia-Pacific units also made inroads on the greenback, which got no help from an expected Federal Reserve decision to hold interest rates and flag a possible hike in December.

Fears of a Trump presidency has led to speculation the Fed could hold off a December hike, which has been largely priced into markets, owing to fears about his impact on the economy.

The Mexican peso fell further against the dollar, with the greenback buying 19.45 pesos, against 19.36 pesos in the US.

The peso has steadily fallen on concerns of a potential victory for Trump, whose anti-Mexican rhetoric has included a pledge to remove undocumented migrants, build a wall along the border and tear up a US trade deal with its neighbour to the south.

Attention now turns to the release Friday of October US jobs data, which will provide a clearer snapshot of the US economy, with analysts saying a strong reading will cement the argument for a rate rise next month.

The weaker dollar provided some much needed lift to oil prices, with both main contracts rallying after a recent sell-off fuelled by worries over the chances of success for OPEC&#39;s agreement to cut production. Crude is priced in dollars and a weaker unit makes the commodity cheaper for holders of other currencies.

&nbsp;

(AFP)

&nbsp;

&nbsp;

With just days to go until the US polls, tycoon Donald Trump has closed ?an unassailable lead over market-favourite Hillary Clinton

US elections 2016: Asian markets on edge over election uncertainty

Most Asian share markets tumbled on Monday while the US dollar added to gains made after Federal Reserve chair Janet Yellen indicated a US interest rate increase remains on the cards for this year. 
 
European markets also looked set for a weak start, with financial spreadbetters expecting Germany&#39;s DAX to open down 0.7 per cent, and the blue-chip Euro Stoxx 50 to begin the day 0.6 per&nbsp; cent lower. British markets are closed for a holiday. 
 
The broadest index of MSCI, a US-based provider of investment decision support tools to investment institutions worldwide, of Asia-Pacific shares outside Japan extended losses to 1 per cent. 
 
Japan&#39;s Nikkei bucked the trend, closing 2.3 per cent higher, the biggest one-day gain in three weeks, as the yen weakened against the resurgent dollar. 
 
China&#39;s CSI 300 index and the Shanghai Composite slipped 0.2 per cent. Hong Kong&#39;s Hang Seng shed 0.4 per cent. 
 
The case for a US rate hike has strengthened in recent months, with a lot of new jobs being created, and economic growth looks likely to continue at a moderate pace, Yellen said in a speech at the Fed&#39;s annual monetary policy conference in Jackson Hole, Wyoming, on Friday. 
 
While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. She described consumer spending as &quot;solid&quot; but noted that US business investment was weak and exports hurt by a strong dollar. 
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<h5>While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices.</h5>
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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices." target="_blank">&nbsp;</a></div>
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Comments by the Fed&#39;s No. 2 policymaker, vice chair Stanley Fischer, following Yellen&#39;s speech also bolstered the case for a hike this year. 
 
Asked on CNBC whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen&#39;s comments were &quot;consistent with answering yes&quot; to both questions, albeit still data-dependent. 
 
Among the first data to be scrutinised will be US consumer confidence for August, due on Tuesday; productivity, manufacturing and construction figures on Thursday; and August non-farm payrolls data rounding out the week on Friday. 
 
Global factory activity surveys will also be released on Thursday. 
 
Traders have modestly raised expectations for US rate increases this year, but remain cautious. 
 
The odds of a hike in September rose to 33 per cent following the comments, from 21 per cent on Thursday, according to CME Group&#39;s FedWatch tool. Traders were pricing in a 59.1 per cent chance of a hike in December, up from 51.8 per cent on Thursday. 
 
&quot;While the move towards another Fed rate hike will likely cause bouts of consternation in investment markets, I don&rsquo;t see the same degree of uncertainty that we saw around last year&rsquo;s Fed rate hike,&quot; Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. 
 
&quot;It&#39;s clear from the Fed&#39;s actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the U.S. economy and of the impact of a rising U.S. dollar in doing some of its work for it.&quot; 
 
The comments from Yellen and Fischer dragged Wall Street lower at the close. 
 
But they proved a boon for the US currency, with the dollar index, which tracks the greenback against six global peers, jumping 0.8 percent on Friday. It held steady at 95.552 on Monday. 
 
The dollar rose 0.5 per cent to a two-week high of 102.34 yen on Monday. That followed gains of 1.3 per cent on Friday, its biggest one-day advance in almost seven weeks. 
 
Japanese household spending and retail sales data for July are due on Tuesday. Investors are seeking some sign that Prime Minister Shinzo Abe&#39;s massive stimulus programmes are having an effect, after figures on Friday showed a decline in consumer prices by the most in three years in July. 
 
The euro was flat at $1.120 after tumbling 0.8 per cent on Friday, its biggest one-day slide since July 15. 
 
In commodities, crude prices retreated on the rally in the dollar and concerns about growing output after exports from Iraq in August exceeded July levels. 
 
Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran&#39;s right to regain market share lost during international sanctions that were only lifted in January. 
 
US crude futures dropped 1.5 per cent to $46.95. 
 
Global benchmark Brent crude retreated 1.2 per cent to $49.31. 
 
The stronger dollar also weighed on gold. Spot gold slipped 0.2 per cent to $1,318.10, after earlier touching a five-week low. 
 
(Reuters)

Federal Reserve chair Janet Yellen had indicated a US interest rate increase remains on the cards for this year

Most Asian share markets tumbled on Monday while the US dollar added to gains made after Federal Reserve chair Janet Yellen indicated a US interest rate increase remains on the cards for this year. European markets also looked set for a weak start, with financial spreadbetters expecting Germany's DAX to open down 0.7 per cent, and the blue-chip Euro Stoxx 50 to begin the day 0.6 per cent lower. British markets are closed for a holiday. The broadest index of MSCI, a US-based provider of investment decision support tools to investment institutions worldwide, of Asia-Pacific shares outside Japan extended losses to 1 per cent. Japan's Nikkei bucked the trend, closing 2.3 per cent higher, the biggest one-day gain in three weeks, as the yen weakened against the resurgent dollar. China's CSI 300 index and the Shanghai Composite slipped 0.2 per cent. Hong Kong's Hang Seng shed 0.4 per cent. The case for a US rate hike has strengthened in recent months, with a lot of new jobs being created, and economic growth looks likely to continue at a moderate pace, Yellen said in a speech at the Fed's annual monetary policy conference in Jackson Hole, Wyoming, on Friday. While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. She described consumer spending as "solid" but noted that US business investment was weak and exports hurt by a strong dollar. While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. Comments by the Fed's No. 2 policymaker, vice chair Stanley Fischer, following Yellen's speech also bolstered the case for a hike this year. Asked on CNBC whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen's comments were "consistent with answering yes" to both questions, albeit still data-dependent. Among the first data to be scrutinised will be US consumer confidence for August, due on Tuesday; productivity, manufacturing and construction figures on Thursday; and August non-farm payrolls data rounding out the week on Friday. Global factory activity surveys will also be released on Thursday. Traders have modestly raised expectations for US rate increases this year, but remain cautious. The odds of a hike in September rose to 33 per cent following the comments, from 21 per cent on Thursday, according to CME Group's FedWatch tool. Traders were pricing in a 59.1 per cent chance of a hike in December, up from 51.8 per cent on Thursday. "While the move towards another Fed rate hike will likely cause bouts of consternation in investment markets, I don’t see the same degree of uncertainty that we saw around last year’s Fed rate hike," Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. "It's clear from the Fed's actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the U.S. economy and of the impact of a rising U.S. dollar in doing some of its work for it." The comments from Yellen and Fischer dragged Wall Street lower at the close. But they proved a boon for the US currency, with the dollar index, which tracks the greenback against six global peers, jumping 0.8 percent on Friday. It held steady at 95.552 on Monday. The dollar rose 0.5 per cent to a two-week high of 102.34 yen on Monday. That followed gains of 1.3 per cent on Friday, its biggest one-day advance in almost seven weeks. Japanese household spending and retail sales data for July are due on Tuesday. Investors are seeking some sign that Prime Minister Shinzo Abe's massive stimulus programmes are having an effect, after figures on Friday showed a decline in consumer prices by the most in three years in July. The euro was flat at $1.120 after tumbling 0.8 per cent on Friday, its biggest one-day slide since July 15. In commodities, crude prices retreated on the rally in the dollar and concerns about growing output after exports from Iraq in August exceeded July levels. Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran's right to regain market share lost during international sanctions that were only lifted in January. US crude futures dropped 1.5 per cent to $46.95. Global benchmark Brent crude retreated 1.2 per cent to $49.31. The stronger dollar also weighed on gold. Spot gold slipped 0.2 per cent to $1,318.10, after earlier touching a five-week low. (Reuters)

Most Asia stocks slide on Fed officials' rate comments, dollar firms

Asian shares slipped today after touching a near one-year peak, while Japanese stocks tumbled and the yen strengthened as the Bank of Japan&#39;s (BOJ) fresh stimulus measures disappointed markets. 
 
The BOJ modestly increased purchases of exchange-traded funds, but maintained its base money target at 80 trillion yen ($775 billion) and the pace of purchases of other assets, including Japanese government bonds. 
 
The central bank also held at 0.1 per cent the interest it charges to a portion of excess reserves financial institutions leave with the central bank. 
 
Japan&#39;s Nikkei, which swung between gains and losses right after the announcement, was last trading down 1.5 per cent. The index, which touched a seven-week high last week, was on track for a 2.4 per cent weekly drop, shrinking gains for July to 4.2 per cent. 
 
Dollar sees biggest one-day decline after Brexit&nbsp; 
 
The dollar weakened 1.9 per cent to 103.27 yen, its biggest one-day decline since June 24, after the UK&#39;s decision to leave the European Union (EU). 
 
Before the BOJ&#39;s decision, many investors warned of a big chance of disappointment because markets have long expected more stimulus, making it difficult for BOJ Governor Haruhiko Kuroda to spring a surprise. 
 
&quot;The BOJ did not live up to expectations,&quot; said Norio Miyagawa, senior economist at Mizuho Securities in Tokyo. &quot;Increasing ETF purchases makes no contribution to achieving 2 per cent inflation. The BOJ won&#39;t admit it, but it has reached the limits of quantitative easing and negative rates.&quot; 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan pulled back 0.3 per cent after hitting the highest level since Aug. 11, leaving it on track for gains of 1 per cent for the week, and 5.5 per cent for the month. 
 
Wall Street shares remained near all-time highs, with tech heavyweights Alphabet and Amazon rising after the bell as their earnings beat expectations. 
 
The stronger yen also weighed on the dollar index, which slipped 0.4 per cent to 96.364, putting it on track for a slide of 0.6 per cent for the week, but a gain of 0.2 per cent for the month. 
 
European shares fell on Thursday, as markets awaited the release of the stress test results on European banks on Friday night. 
 
The euro stood little changed at $1.1084 . It is up almost 1 per cent this week, but poised for a 0.2 per cent loss in July. 
 
Elsewhere in markets, oil prices fell to three-month lows, with US benchmark now down more than 20 per cent from this year&#39;s peak on growing worries that the world might be pumping more crude than needed. 
 
US crude futures fell to as low as $40.95 per barrel and were last down 0.2 per cent at $41.08. It&#39;s set for a drop of 7 per cent for the week and 14.9 per cent in July. 
 
International benchmark Brent crude futures dropped 0.1 per cent to $42.65. It is down 6.7 per cent this week and 14 per cent this month. 
 
(Reuters)&nbsp;

'The BOJ did not live up to expectations. It won't admit, but it has reached the limits of quantitative easing and negative rates.'

Asian shares slipped today after touching a near one-year peak, while Japanese stocks tumbled and the yen strengthened as the Bank of Japan's (BOJ) fresh stimulus measures disappointed markets. The BOJ modestly increased purchases of exchange-traded funds, but maintained its base money target at 80 trillion yen ($775 billion) and the pace of purchases of other assets, including Japanese government bonds. The central bank also held at 0.1 per cent the interest it charges to a portion of excess reserves financial institutions leave with the central bank. Japan's Nikkei, which swung between gains and losses right after the announcement, was last trading down 1.5 per cent. The index, which touched a seven-week high last week, was on track for a 2.4 per cent weekly drop, shrinking gains for July to 4.2 per cent. Dollar sees biggest one-day decline after Brexit The dollar weakened 1.9 per cent to 103.27 yen, its biggest one-day decline since June 24, after the UK's decision to leave the European Union (EU). Before the BOJ's decision, many investors warned of a big chance of disappointment because markets have long expected more stimulus, making it difficult for BOJ Governor Haruhiko Kuroda to spring a surprise. "The BOJ did not live up to expectations," said Norio Miyagawa, senior economist at Mizuho Securities in Tokyo. "Increasing ETF purchases makes no contribution to achieving 2 per cent inflation. The BOJ won't admit it, but it has reached the limits of quantitative easing and negative rates." MSCI's broadest index of Asia-Pacific shares outside Japan pulled back 0.3 per cent after hitting the highest level since Aug. 11, leaving it on track for gains of 1 per cent for the week, and 5.5 per cent for the month. Wall Street shares remained near all-time highs, with tech heavyweights Alphabet and Amazon rising after the bell as their earnings beat expectations. The stronger yen also weighed on the dollar index, which slipped 0.4 per cent to 96.364, putting it on track for a slide of 0.6 per cent for the week, but a gain of 0.2 per cent for the month. European shares fell on Thursday, as markets awaited the release of the stress test results on European banks on Friday night. The euro stood little changed at $1.1084 . It is up almost 1 per cent this week, but poised for a 0.2 per cent loss in July. Elsewhere in markets, oil prices fell to three-month lows, with US benchmark now down more than 20 per cent from this year's peak on growing worries that the world might be pumping more crude than needed. US crude futures fell to as low as $40.95 per barrel and were last down 0.2 per cent at $41.08. It's set for a drop of 7 per cent for the week and 14.9 per cent in July. International benchmark Brent crude futures dropped 0.1 per cent to $42.65. It is down 6.7 per cent this week and 14 per cent this month. (Reuters)

After touching one-year peak, Asian shares slip despite Japan stimulus

Asian share markets enjoyed a relief rally on Monday as upbeat US jobs data lessened immediate concerns about the health of the world&#39;s largest economy, while the long-run fallout from Brexit kept sovereign yields near record lows. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan jumped 1.9 per cent to a one-month top. Australia added 1.8 per cent and Shanghai 1 per cent. 
 
Japan&#39;s Nikkei climbed 3.5 per cent, its biggest daily gain in three months, following a clear win by the government in upper house elections. 
 
Prime Minister Shinzo Abe&#39;s ruling coalition won a landslide victory giving it the power to potentially revise the nation&#39;s post-war pacifist constitution for the first time. 
 
&quot;Abe&#39;s victory boosted confidence in investor sentiment, and winning a two-thirds majority sends foreign investors a message that Abe&#39;s policies will see a progress,&quot; said Hikaru Sato, a senior technical analyst at Daiwa Securities. 
 
The Asian rebound came after news the US economy added 287,000 jobs last month, well above median forecasts and recovering from a very weak May report. 
 
In the end, investors concluded the data was not strong enough to revive the prospect of a rate hike from the Federal Reserve for the next few months, benefiting bonds and stocks. 
 
The Dow gained 1.4 per cent, while the S&amp;P 500 firmed 1.53 per cent and the Nasdaq 1.64 per cent. The rise set the seal on an eight-session run that has seen US equities add $1.4 trillion to market capitalisation. 
 
Fed officials are scheduled to speak several times this week, offering plenty of opportunities for the market to glean clues about policy. 
 
One major event this week will be a Bank of England meeting on Thursday when it might well cut its 0.5 per cent rate to offset the economic drag from the vote to leave the European Union. 
 
Governor Mark Carney has already opened the door to easing, including the expansion of its 375 billion-pound bond-buying programme. 
 
NO END TO UNCERTAINTY 
 
The only question was timing, with analysts in a Reuters poll divided on whether a cut would come this week or in August. 
 
Various reports on Monday argued for urgent action, with consumer spending falling last month, the business outlook darkening by the most in four years and economic activity in London slowing sharply. 
 
&quot;The outcome of the UK referendum has dealt a significant shock to the outlook for the global economy,&quot; warned Christian Keller, an economist at Barclays. 
 
&quot;It introduced a higher uncertainty about Europe&#39;s future, and raised questions about globalisation more generally,&quot; he added. &quot;Confidence and financial channels could potentially propagate the effects to the US, China and beyond.&quot; 
 
That was one factor behind the relentless demand for sovereign debt that has driven down yields, which move inversely to prices, and kept the pound at its weakest since 1985. 
 
Benchmark US 10-year paper was paying 1.37 per cent, with Japan at -0.28 per cent and Germany -0.20 per cent. 
 
Sterling was stuck at $1.2950 on Monday, having failed utterly to rebound from the 13 per cent loss suffered in the immediate wake of Brexit. 
 
The Japanese yen eased a little to 100.71 per dollar, while the euro stayed on the defensive at $1.1049 having touched a low of $1.1003 on Friday. 
 
In commodity markets, spot gold was a shade higher around $1,368.40 per ounce. 
 
Crude prices edged down to near two-month lows on seasonally weak consumption, despite comments from Saudi Arabia&#39;s oil minister that the oil market was becoming more balanced. 
 
Brent crude was down 39 cents at $46.37 a barrel, while NYMEX crude fell 45 cents to $44.96. 
 
(Reuters)

The Asian rebound came after news came in that the US economy added 287,000 jobs last month, well above median forecasts

Asian share markets enjoyed a relief rally on Monday as upbeat US jobs data lessened immediate concerns about the health of the world's largest economy, while the long-run fallout from Brexit kept sovereign yields near record lows. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.9 per cent to a one-month top. Australia added 1.8 per cent and Shanghai 1 per cent. Japan's Nikkei climbed 3.5 per cent, its biggest daily gain in three months, following a clear win by the government in upper house elections. Prime Minister Shinzo Abe's ruling coalition won a landslide victory giving it the power to potentially revise the nation's post-war pacifist constitution for the first time. "Abe's victory boosted confidence in investor sentiment, and winning a two-thirds majority sends foreign investors a message that Abe's policies will see a progress," said Hikaru Sato, a senior technical analyst at Daiwa Securities. The Asian rebound came after news the US economy added 287,000 jobs last month, well above median forecasts and recovering from a very weak May report. In the end, investors concluded the data was not strong enough to revive the prospect of a rate hike from the Federal Reserve for the next few months, benefiting bonds and stocks. The Dow gained 1.4 per cent, while the S&P 500 firmed 1.53 per cent and the Nasdaq 1.64 per cent. The rise set the seal on an eight-session run that has seen US equities add $1.4 trillion to market capitalisation. Fed officials are scheduled to speak several times this week, offering plenty of opportunities for the market to glean clues about policy. One major event this week will be a Bank of England meeting on Thursday when it might well cut its 0.5 per cent rate to offset the economic drag from the vote to leave the European Union. Governor Mark Carney has already opened the door to easing, including the expansion of its 375 billion-pound bond-buying programme. NO END TO UNCERTAINTY The only question was timing, with analysts in a Reuters poll divided on whether a cut would come this week or in August. Various reports on Monday argued for urgent action, with consumer spending falling last month, the business outlook darkening by the most in four years and economic activity in London slowing sharply. "The outcome of the UK referendum has dealt a significant shock to the outlook for the global economy," warned Christian Keller, an economist at Barclays. "It introduced a higher uncertainty about Europe's future, and raised questions about globalisation more generally," he added. "Confidence and financial channels could potentially propagate the effects to the US, China and beyond." That was one factor behind the relentless demand for sovereign debt that has driven down yields, which move inversely to prices, and kept the pound at its weakest since 1985. Benchmark US 10-year paper was paying 1.37 per cent, with Japan at -0.28 per cent and Germany -0.20 per cent. Sterling was stuck at $1.2950 on Monday, having failed utterly to rebound from the 13 per cent loss suffered in the immediate wake of Brexit. The Japanese yen eased a little to 100.71 per dollar, while the euro stayed on the defensive at $1.1049 having touched a low of $1.1003 on Friday. In commodity markets, spot gold was a shade higher around $1,368.40 per ounce. Crude prices edged down to near two-month lows on seasonally weak consumption, despite comments from Saudi Arabia's oil minister that the oil market was becoming more balanced. Brent crude was down 39 cents at $46.37 a barrel, while NYMEX crude fell 45 cents to $44.96. (Reuters)

Asia stocks hit four-week high after strong US jobs data

Asian stocks pushed higher again on Monday, building on last week&#39;s rally as central banks around the world promised support to financial markets after Britain&#39;s vote to leave the European Union (EU) fuelled fears of another rout. 
 
The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and Eurozone data. 
 
However, analysts warned there was still a plenty of headwinds as Britain and EU leaders must agree a breakaway deal, while the global economy remained fragile. 
 
Tokyo rose 0.4 per cent by the break, Hong Kong climbed 1.3 per cent, Shanghai added 0.8 per cent and Seoul 0.3 per cent. 
 
South Korea&#39;s promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated. 
 
On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- raising the possibility of a cut in rates. 
 
Richard Jerram, chief economist at Bank of Singapore, said, &quot;Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU.&quot; 
 
But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News, &quot;While the potential for increased liquidity from central banks has helped calm stock markets, there&rsquo;s still a lot of uncertainty out there. 
 
&quot;The strengthening US dollar isn&rsquo;t good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened,&quot; he added.&nbsp; 
 
The Pound edged up against the dollar after taking a hammering from the referendum outcome. In early trade it bought $1.3307 against $1.3267 Friday in New York and is well up from the 31-year low $1.3121 touched at the start of last week. 
 
(AFP)

The optimism that characterised last week continued as investors tracked another surge helped by upbeat US and Eurozone data

Asian stocks pushed higher again on Monday, building on last week's rally as central banks around the world promised support to financial markets after Britain's vote to leave the European Union (EU) fuelled fears of another rout. The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and Eurozone data. However, analysts warned there was still a plenty of headwinds as Britain and EU leaders must agree a breakaway deal, while the global economy remained fragile. Tokyo rose 0.4 per cent by the break, Hong Kong climbed 1.3 per cent, Shanghai added 0.8 per cent and Seoul 0.3 per cent. South Korea's promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated. On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- raising the possibility of a cut in rates. Richard Jerram, chief economist at Bank of Singapore, said, "Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU." But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News, "While the potential for increased liquidity from central banks has helped calm stock markets, there’s still a lot of uncertainty out there. "The strengthening US dollar isn’t good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened," he added. The Pound edged up against the dollar after taking a hammering from the referendum outcome. In early trade it bought $1.3307 against $1.3267 Friday in New York and is well up from the 31-year low $1.3121 touched at the start of last week. (AFP)

Asian markets extend rally on central bank hopes

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