Oil prices jumped to near six-month highs on Tuesday as the <a href="https://www.wionews.com/world/us-oil-sanctions-principally-illegal-do-not-attach-any-value-to-it-iran-212672">United States tightened sanctions on Iran</a>, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers.

News that the US had told buyers of Iranian oil to stop purchases by May 1 or face sanctions pushed Brent towards $75 a barrel and made for a lively return from the four-day Easter break for Europe's markets.

Oil and gas shares jumped more than 1.7 per cent for their best start in six weeks, though almost every other sector suffered. So did bonds, as higher energy costs hung over profits and nudged up inflation expectations.

Foreign-exchange market volatility was still largely absent. The dollar held near a three-week high, but the usual beneficiaries of higher oil prices, the Canadian dollar and Norwegian crown, dipped to $1.33 and $8.52 respectively.

"Oil is interesting, but the interesting thing for FX is that we are not getting the usual feed-through in the petro currencies," said Saxo bank's head of FX strategy, John Hardy, adding that might be caused by questions about Chinese stimulus.

Both the Canadian dollar and the crown had gained on Monday, and the Russian rouble, another petro currency, hit its highest against the euro in more than a year its highest against the dollar in a month.

Overnight, MSCI's index of Asia-Pacific shares ended 0.1 per cent higher and Japan's Nikkei closed up 0.2 per cent. Oil and gas gains were offset by losses for airlines and other transport shares facing higher fuel costs.

The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were "adequately supplied," but traders had already been worried about tight supplies.

Oil prices are up nearly 50 per cent since late December, and before the re-imposition of sanctions last year Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries, at around 3 million barrels per day.

Oil prices are "not so high that it crushes manufacturing by putting energy-price inputs up, but it is producing a nice boost to oil-producing nations," said Robert Carnell, Singapore-based chief economist and head of research for the Asia Pacific at ING.

Carnell sees Brent crude's sweet spot at between $65 and $75 per barrel, "Above this, you may see some negative impact."

Sri Lanka

Sri Lanka's stock market and government bonds both fell as trading resumed after bombings had killed more than 300 people on Sunday. Tourism is likely to collapse, which would deal a serious blow to the island's economy and financial markets.

The International Monetary Fund last month extended a $1.5 billion loan to Sri Lanka into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market.

In China, major benchmarks dipped in and out of negative territory amid concern that Beijing will slow the pace of policy easing after unexpectedly strong first-quarter economic data last week.

China's blue-chip stocks have surged over 30 per cent so far this year on expectations of more stimulus and hope Beijing and Washington will reach an agreement to end their nine-month trade dispute.

"We've had a fantastic run in Chinese equities year-to-date. Some profit taking is completely normal. I don't think China is changing its policy that quickly," said Stefan Hofer, chief investment strategist at LGT Bank Asia in Hong Kong.

Oil prices jumped to near six-month highs on Tuesday as the United States tightened sanctions on Iran, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers.

Oil prices jumped to near six-month highs on Tuesday as the United States tightened sanctions on Iran, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers. News that the US had told buyers of Iranian oil to stop purchases by May 1 or face sanctions pushed Brent towards $75 a barrel and made for a lively return from the four-day Easter break for Europe's markets. Oil and gas shares jumped more than 1.7 per cent for their best start in six weeks, though almost every other sector suffered. So did bonds, as higher energy costs hung over profits and nudged up inflation expectations. Foreign-exchange market volatility was still largely absent. The dollar held near a three-week high, but the usual beneficiaries of higher oil prices, the Canadian dollar and Norwegian crown, dipped to $1.33 and $8.52 respectively. "Oil is interesting, but the interesting thing for FX is that we are not getting the usual feed-through in the petro currencies," said Saxo bank's head of FX strategy, John Hardy, adding that might be caused by questions about Chinese stimulus. Both the Canadian dollar and the crown had gained on Monday, and the Russian rouble, another petro currency, hit its highest against the euro in more than a year its highest against the dollar in a month. Overnight, MSCI's index of Asia-Pacific shares ended 0.1 per cent higher and Japan's Nikkei closed up 0.2 per cent. Oil and gas gains were offset by losses for airlines and other transport shares facing higher fuel costs. The White House said after its Iran move it was working with Saudi Arabia and the United Arab Emirates to ensure oil markets were "adequately supplied," but traders had already been worried about tight supplies. Oil prices are up nearly 50 per cent since late December, and before the re-imposition of sanctions last year Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries, at around 3 million barrels per day. Oil prices are "not so high that it crushes manufacturing by putting energy-price inputs up, but it is producing a nice boost to oil-producing nations," said Robert Carnell, Singapore-based chief economist and head of research for the Asia Pacific at ING. Carnell sees Brent crude's sweet spot at between $65 and $75 per barrel, "Above this, you may see some negative impact." Sri Lanka Sri Lanka's stock market and government bonds both fell as trading resumed after bombings had killed more than 300 people on Sunday. Tourism is likely to collapse, which would deal a serious blow to the island's economy and financial markets. The International Monetary Fund last month extended a $1.5 billion loan to Sri Lanka into 2020, a key step in keeping foreign investors involved in what so far this year has been a top-performing frontier debt market. In China, major benchmarks dipped in and out of negative territory amid concern that Beijing will slow the pace of policy easing after unexpectedly strong first-quarter economic data last week. China's blue-chip stocks have surged over 30 per cent so far this year on expectations of more stimulus and hope Beijing and Washington will reach an agreement to end their nine-month trade dispute. "We've had a fantastic run in Chinese equities year-to-date. Some profit taking is completely normal. I don't think China is changing its policy that quickly," said Stefan Hofer, chief investment strategist at LGT Bank Asia in Hong Kong.

World stocks splutter as oil races to near six-month high

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by 0.5 per cent gains in the infotech sector, while Japan's Nikkei bucked the trend and lost 0.2 per cent.

On Wall Street, the S&amp;P 500 gained 1.09 per cent while the Nasdaq Composite rallied 1.42 per cent, both hitting five-month highs.

Apple Inc led the tech sector's advance, rising 3.7 per cent, ahead of the company's expected streaming service debut next week.

The Philadelphia SE Semiconductor Index soared 3.5 per cent, coming within a striking distance from its all-time high marked about a year ago.

"I'd think optimism in the tech sector is the biggest driver now. It reflects expectations that the US and China will eventually reach a trade deal," said Soichiro Monji, senior economist at Daiwa SB Investments.

A US trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29, which will be followed by a trip by Chinese Vice Premier Liu He to Washington in early April.

Thursday's US economic data was also upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply.

The figures mollified worries about the US economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet rolloffs.

The dollar also jumped back, with its index against a basket of six major currencies rising to 96.327 from Wednesday's 1-1/2-month low of 95.735.

The euro traded at $ 1.1374, flat on the day and off Wednesday's 1-1/2-month high of $1.14485.

The dollar stood at 110.74 yen, having hit a five-week low of 110.30 on Thursday.

The benchmark US 10-year notes yield stood at 2.530 per cent after having slipped to as low as 2.500 per cent on Thursday, its lowest since early January last year.

The five-year yield dropped to 2.34 per cent, below the current Fed funds rate around 2.40 per cent, as fed funds rate futures price in about 50 per cent chances of a rate cut this year.

"The main market reaction to the Fed's announcement was that it has become a consensus that the Fed's next move is a rate cut," said Naoya Oshikubo, senior manager at Sumitomo Mitsui Trust Asset.

"As economic data from China and elsewhere has not bottomed out yet, investors will be looking at economic fundamentals for now. If there are improvements, then markets could roll back expectations of a Fed rate cut," he said.

DoubleLine Capital's chief executive Jeffrey Gundlach, known as the "Bond King," said on Thursday that the stock market "likes the fact that they (the Fed) aren't going to give them any problems," for now.

He added, however, the Fed's cautious stance on raising rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility.

Another cloud hanging over markets was Britain's fraught moves to exit from the European Union, as the British pound was bruised anew by rising worries about a no-deal Brexit.

EU leaders said Britain could leave the European Union without a deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May's agreement with Brussels.

EU leaders gave May an extra two months, until May 22, to leave if she wins next week's vote in parliament.

The pound traded at $1.3136, having dropped to $1.3004 the previous day. Against the euro, it hit one-month low of 0.8722 to euro on Thursday and last stood at 0.8664.

Oil dipped but held near 2019 highs reached the previous day, supported by a broad risk-on mood, OPEC production cuts and US sanctions on key producers Iran and Venezuela.

Brent crude oil futures edged down 0.3 per cent to $67.65 per barrel while US crude futures fell 0.3 per cent to $59.81.

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy.

Asian shares hit 6-1/2-month highs on Friday after upbeat US data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by 0.5 per cent gains in the infotech sector, while Japan's Nikkei bucked the trend and lost 0.2 per cent. On Wall Street, the S&P 500 gained 1.09 per cent while the Nasdaq Composite rallied 1.42 per cent, both hitting five-month highs. Apple Inc led the tech sector's advance, rising 3.7 per cent, ahead of the company's expected streaming service debut next week. The Philadelphia SE Semiconductor Index soared 3.5 per cent, coming within a striking distance from its all-time high marked about a year ago. "I'd think optimism in the tech sector is the biggest driver now. It reflects expectations that the US and China will eventually reach a trade deal," said Soichiro Monji, senior economist at Daiwa SB Investments. A US trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29, which will be followed by a trip by Chinese Vice Premier Liu He to Washington in early April. Thursday's US economic data was also upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply. The figures mollified worries about the US economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet rolloffs. The dollar also jumped back, with its index against a basket of six major currencies rising to 96.327 from Wednesday's 1-1/2-month low of 95.735. The euro traded at $ 1.1374, flat on the day and off Wednesday's 1-1/2-month high of $1.14485. The dollar stood at 110.74 yen, having hit a five-week low of 110.30 on Thursday. The benchmark US 10-year notes yield stood at 2.530 per cent after having slipped to as low as 2.500 per cent on Thursday, its lowest since early January last year. The five-year yield dropped to 2.34 per cent, below the current Fed funds rate around 2.40 per cent, as fed funds rate futures price in about 50 per cent chances of a rate cut this year. "The main market reaction to the Fed's announcement was that it has become a consensus that the Fed's next move is a rate cut," said Naoya Oshikubo, senior manager at Sumitomo Mitsui Trust Asset. "As economic data from China and elsewhere has not bottomed out yet, investors will be looking at economic fundamentals for now. If there are improvements, then markets could roll back expectations of a Fed rate cut," he said. DoubleLine Capital's chief executive Jeffrey Gundlach, known as the "Bond King," said on Thursday that the stock market "likes the fact that they (the Fed) aren't going to give them any problems," for now. He added, however, the Fed's cautious stance on raising rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility. Another cloud hanging over markets was Britain's fraught moves to exit from the European Union, as the British pound was bruised anew by rising worries about a no-deal Brexit. EU leaders said Britain could leave the European Union without a deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May's agreement with Brussels. EU leaders gave May an extra two months, until May 22, to leave if she wins next week's vote in parliament. The pound traded at $1.3136, having dropped to $1.3004 the previous day. Against the euro, it hit one-month low of 0.8722 to euro on Thursday and last stood at 0.8664. Oil dipped but held near 2019 highs reached the previous day, supported by a broad risk-on mood, OPEC production cuts and US sanctions on key producers Iran and Venezuela. Brent crude oil futures edged down 0.3 per cent to $67.65 per barrel while US crude futures fell 0.3 per cent to $59.81.

Asian shares hit 6-1/2-month high on tech hopes

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed from Friday's three-week low. Japan's Nikkei gained 0.4 per cent in early trade after four consecutive sessions in the red last week.

Wall Street's main indexes posted their biggest weekly decline since the market tumbled at the end of 2018 last week, falling for the fifth consecutive day on Friday on the shocking payrolls data.

The US economy created only 20,000 jobs in February, the weakest reading since September 2017. As a result, bond yields dropped, with the 10-year Treasuries yield hitting a two-month low of 2.607 per cent.

The two-year yield also hit a two-month low of 2.438 per cent, edging near the current Fed funds rate around 2.40 per cent.

Fed funds futures are pricing in more than 20 per cent chance of a rate cut this year.

"The headline reading was so weak that the market could have reacted more aggressively. I would say markets reacted relatively calmly because there were elements that suggest weakness is temporary," said Tomoaki Shishido, fixed income strategist at Nomura Securities.

While jobs growth was weak, average hourly earnings rose 11 cents, or 0.4 per cent, raising the annual increase to 3.4 per cent, the biggest gain since April 2009.

Fed Chair Jerome Powell said on Friday that the central bank will be careful not to shock financial markets as it stabilises its bond portfolio, saying it does not see problems in the US economy that warrant an immediate change in its policy.

He also said the new normal for the Fed's total liabilities may be in the ballpark of 16.5 per cent of GDP.

Chinese data released over the weekend was slightly weaker though hopes for more policy support are likely to cushion any blows.

New bank loans in China fell a bit more than expected in February from a record the previous month, while money supply growth also missed the forecast.

Following the data, China's central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs.

In the currency market, the euro stood at $1.12345, keeping some distance from Thursday's $1.11765 hit after the European Central Bank's surprisingly dovish stance. It was its lowest since late June 2017.

The dollar was softer at 111.12 yen, having peaked at a 2-1/2-month high of 112.135 last Tuesday.

The British pound was wobbly at $1.2986, having fallen to a three-week low of $1.2945 earlier on Monday on nervousness ahead of a crucial week in the UK’s troubled political debate over EU membership, with parliament expected to reject Prime Minister Theresa May's deal in a vote on Tuesday.

If that happens, lawmakers will vote the next day on whether to leave without a deal on March 29. If they reject that, then on Thursday they are due to vote on a "limited" delay.

Oil prices steadied after dipping on Friday on concerns about a slower US economic growth and surging US oil supply.

US West Texas Intermediate (WTI) crude futures rose 0.2 per cent to $56.18 per barrel.

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed from Friday's three-week low. Japan's Nikkei gained 0.4 per cent in early trade after four consecutive sessions in the red last week. Wall Street's main indexes posted their biggest weekly decline since the market tumbled at the end of 2018 last week, falling for the fifth consecutive day on Friday on the shocking payrolls data. The US economy created only 20,000 jobs in February, the weakest reading since September 2017. As a result, bond yields dropped, with the 10-year Treasuries yield hitting a two-month low of 2.607 per cent. The two-year yield also hit a two-month low of 2.438 per cent, edging near the current Fed funds rate around 2.40 per cent. Fed funds futures are pricing in more than 20 per cent chance of a rate cut this year. "The headline reading was so weak that the market could have reacted more aggressively. I would say markets reacted relatively calmly because there were elements that suggest weakness is temporary," said Tomoaki Shishido, fixed income strategist at Nomura Securities. While jobs growth was weak, average hourly earnings rose 11 cents, or 0.4 per cent, raising the annual increase to 3.4 per cent, the biggest gain since April 2009. Fed Chair Jerome Powell said on Friday that the central bank will be careful not to shock financial markets as it stabilises its bond portfolio, saying it does not see problems in the US economy that warrant an immediate change in its policy. He also said the new normal for the Fed's total liabilities may be in the ballpark of 16.5 per cent of GDP. Chinese data released over the weekend was slightly weaker though hopes for more policy support are likely to cushion any blows. New bank loans in China fell a bit more than expected in February from a record the previous month, while money supply growth also missed the forecast. Following the data, China's central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs. In the currency market, the euro stood at $1.12345, keeping some distance from Thursday's $1.11765 hit after the European Central Bank's surprisingly dovish stance. It was its lowest since late June 2017. The dollar was softer at 111.12 yen, having peaked at a 2-1/2-month high of 112.135 last Tuesday. The British pound was wobbly at $1.2986, having fallen to a three-week low of $1.2945 earlier on Monday on nervousness ahead of a crucial week in the UK’s troubled political debate over EU membership, with parliament expected to reject Prime Minister Theresa May's deal in a vote on Tuesday. If that happens, lawmakers will vote the next day on whether to leave without a deal on March 29. If they reject that, then on Thursday they are due to vote on a "limited" delay. Oil prices steadied after dipping on Friday on concerns about a slower US economic growth and surging US oil supply. US West Texas Intermediate (WTI) crude futures rose 0.2 per cent to $56.18 per barrel.

Asian shares decline as US jobs data clouds global outlook

Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-US trade talks in Washington this week and more policy stimulus from major central banks.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 per cent, recovering from a sharp fall last Friday.

Japan's Nikkei climbed 1.8 per cent to its highest level of the year so far, while Australia's main index rose 0.7 per cent.

Shanghai blue chips bounced 1.6 per cent.

But E-Mini futures for the S&amp;P 500 were flat as the trade was thinned by a holiday in US markets.

The Dow and the Nasdaq had boasted their eighth consecutive weekly gains on wagers the United States and China would hammer out an agreement resolving their protracted trade war.

The two sides will resume negotiations this week, with US President Donald Trump saying he may extend a March 1 deadline for a deal. Both reported progress in five days of talks in Beijing last week.

"That does not rule out a setback or two between now and the start of March," said analysts at CBA in a note.

"Even so, we still think that both sides have good reasons to want to get to an agreement. And, so motivated, it makes an agreement more likely than not."

There are also growing expectations of more reflationary policies from some of the world's more powerful central banks.

The need for stimulus was highlighted on Monday by data showing a sharp slide in Singapore exports and a big drop in foreign orders for Japanese machinery goods.

Beijing is already taking action with China's banks making the newest loans on record in January in an attempt to jumpstart sluggish investment.

Minutes of the Federal Reserve's last policy meeting are due on Wednesday and should provide more guidance on the likelihood or not for rate hikes this year. There is also talk the bank will keep a much larger balance sheet than previously planned.

"Given the range of speakers since the January meeting who support "patience," the Fed minutes should reiterate a dovish message overall," said analysts at TD Securities in a note.

A roll call of Fed officials is speaking at various events this week including a round table on Friday covering the future of its balance sheet.

EYEING THE ECB

The European Central Bank's Olli Rehn told a German newspaper on Sunday that recent data point to a weakening eurozone economy and interest rates would remain at the current level until monetary policy goals have been met.

That came amid much speculation the ECB would launch another round of Targeted Long-Term Refinancing Operations (TLTRO) to support bank lending.

The risk of an easy ECB saw the euro touch a three-month low on Friday before bouncing on dovish comments from Fed officials.

The single currency edged up to $1.1309 but was still within the $1.1213/1.1570 trading range that has held since mid-October. The dollar was steady on the yen at 110.53, having backed away from a two-month top of 111.12.

Sterling was a shade firmer at $1.2909 ahead of Brexit talks between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker this week.

All of which left the dollar at 96.811 on a basket of currencies, inching away from last week's top of 97.368.

In commodity markets, spot gold firmed 0.28 per cent to $1,324.70 per ounce.

Oil prices reached their highest for the year so far, buoyed by OPEC-led supply cuts and US sanctions on Iran and Venezuela.

US crude was last up 36 cents at $55.95 a barrel, while Brent crude futures rose 20 cents to $66.45.

Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-US trade talks in Washington this week and more policy stimulus from major central banks.

Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-US trade talks in Washington this week and more policy stimulus from major central banks. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 per cent, recovering from a sharp fall last Friday. Japan's Nikkei climbed 1.8 per cent to its highest level of the year so far, while Australia's main index rose 0.7 per cent. Shanghai blue chips bounced 1.6 per cent. But E-Mini futures for the S&P 500 were flat as the trade was thinned by a holiday in US markets. The Dow and the Nasdaq had boasted their eighth consecutive weekly gains on wagers the United States and China would hammer out an agreement resolving their protracted trade war. The two sides will resume negotiations this week, with US President Donald Trump saying he may extend a March 1 deadline for a deal. Both reported progress in five days of talks in Beijing last week. "That does not rule out a setback or two between now and the start of March," said analysts at CBA in a note. "Even so, we still think that both sides have good reasons to want to get to an agreement. And, so motivated, it makes an agreement more likely than not." There are also growing expectations of more reflationary policies from some of the world's more powerful central banks. The need for stimulus was highlighted on Monday by data showing a sharp slide in Singapore exports and a big drop in foreign orders for Japanese machinery goods. Beijing is already taking action with China's banks making the newest loans on record in January in an attempt to jumpstart sluggish investment. Minutes of the Federal Reserve's last policy meeting are due on Wednesday and should provide more guidance on the likelihood or not for rate hikes this year. There is also talk the bank will keep a much larger balance sheet than previously planned. "Given the range of speakers since the January meeting who support "patience," the Fed minutes should reiterate a dovish message overall," said analysts at TD Securities in a note. A roll call of Fed officials is speaking at various events this week including a round table on Friday covering the future of its balance sheet. EYEING THE ECB The European Central Bank's Olli Rehn told a German newspaper on Sunday that recent data point to a weakening eurozone economy and interest rates would remain at the current level until monetary policy goals have been met. That came amid much speculation the ECB would launch another round of Targeted Long-Term Refinancing Operations (TLTRO) to support bank lending. The risk of an easy ECB saw the euro touch a three-month low on Friday before bouncing on dovish comments from Fed officials. The single currency edged up to $1.1309 but was still within the $1.1213/1.1570 trading range that has held since mid-October. The dollar was steady on the yen at 110.53, having backed away from a two-month top of 111.12. Sterling was a shade firmer at $1.2909 ahead of Brexit talks between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker this week. All of which left the dollar at 96.811 on a basket of currencies, inching away from last week's top of 97.368. In commodity markets, spot gold firmed 0.28 per cent to $1,324.70 per ounce. Oil prices reached their highest for the year so far, buoyed by OPEC-led supply cuts and US sanctions on Iran and Venezuela. US crude was last up 36 cents at $55.95 a barrel, while Brent crude futures rose 20 cents to $66.45.

Asia markets dare to hope on trade talks, stimulus

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings.

MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged in early trade. Japan's Nikkei was up 1.1 per cent after a market holiday on Monday.

US and Chinese officials expressed hopes on Monday that a new round of talks would bring them closer to easing their months-long trade war.

Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which US&nbsp;tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent.

"There will be no winner in a trade war. So at some point, they will likely strike a deal," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-US tariff row could severely hurt corporate earnings globally.

Analysts are now expecting US corporate earnings for the current quarter to drop 0.2 per cent from last year, which would mark the first contraction since the second quarter of 2016.

In the currency market, the dollar held firm, has gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years.

Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the US currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet.

"We see the dollar's strength essentially stemming from the Fed's balance sheet reduction," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

Growing evidence of a loss of momentum in the global economy has also lifted the US currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment option by default.

The dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.062.

In contrast, the euro dropped to as low as $1.1267 on Monday, its weakest in 2-1/2 months, and last stood at $1.1278.

The dollar popped up to a six-week high of 110.51 yen.

While the dollar drew support from the relative strength of the US economy, its near-term direction hinges on the congressional negotiation on government spending.

A Democratic Senator said on Monday negotiators were working into the night in hopes of striking a deal on funding border security programs through September 30 and averting another round of federal agency shutdowns.

The talks resumed on Monday after having broken down over the weekend.

Oil prices ticked up slightly after falls on Monday as traders weigh support from OPEC-led supply restraint and a slowdown in the global economy.

US crude futures traded at $52.55 per barrel, up 0.27 percent.

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings.

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged in early trade. Japan's Nikkei was up 1.1 per cent after a market holiday on Monday. US and Chinese officials expressed hopes on Monday that a new round of talks would bring them closer to easing their months-long trade war. Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent. "There will be no winner in a trade war. So at some point, they will likely strike a deal," said Mutsumi Kagawa, chief global strategist at Rakuten Securities. The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-US tariff row could severely hurt corporate earnings globally. Analysts are now expecting US corporate earnings for the current quarter to drop 0.2 per cent from last year, which would mark the first contraction since the second quarter of 2016. In the currency market, the dollar held firm, has gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years. Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the US currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet. "We see the dollar's strength essentially stemming from the Fed's balance sheet reduction," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities. Growing evidence of a loss of momentum in the global economy has also lifted the US currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment option by default. The dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.062. In contrast, the euro dropped to as low as $1.1267 on Monday, its weakest in 2-1/2 months, and last stood at $1.1278. The dollar popped up to a six-week high of 110.51 yen. While the dollar drew support from the relative strength of the US economy, its near-term direction hinges on the congressional negotiation on government spending. A Democratic Senator said on Monday negotiators were working into the night in hopes of striking a deal on funding border security programs through September 30 and averting another round of federal agency shutdowns. The talks resumed on Monday after having broken down over the weekend. Oil prices ticked up slightly after falls on Monday as traders weigh support from OPEC-led supply restraint and a slowdown in the global economy. US crude futures traded at $52.55 per barrel, up 0.27 percent.

Asian stocks subdued, focus on new round of Sino-US talks

<a href="http://www.wionews.com/business-economy/apple-facebook-propel-wall-street-to-three-week-peak-189115">Apple Inc, which slashed its quarterly sales</a> forecast last week, has reduced planned production for its three new iPhone models by about 10 per cent for the January-March quarter, the Nikkei Asian Review reported on Wednesday.

That rare forecast cut exposed weakening iPhone demand in China, the world's biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States.

Many analysts and consumers have said the new iPhones are overpriced.

Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, the Nikkei reported, citing sources with knowledge of the request.

The request was made before Apple announced its forecast cut, the Nikkei said. The bleaker sales outlook, which Apple attributed to weak China demand, triggered a broad sell-off in global stock markets.

Market research firm Canalys estimates shipments fell 12 per cent in China last year and expects smartphone shipments in 2019 to dip another 3 per cent, to below 400 million for the first time since 2014.

Overall planned production volume of both old and new iPhones is likely to be cut to a range of 40 million to 43 million units for January-March, from an earlier projection of 47 million to 48 million units, the Nikkei reported, citing one source familiar with the situation.

Apple did not immediately respond to a Reuters request for comment.

The report comes after <a href="http://www.wionews.com/world/samsung-electronics-flags-near-30-slump-in-q4-operating-profit-188930">chip suppliers Samsung Electronics Co Ltd</a> and Skyworks Solutions Inc flagged weak first-quarter chip demand for smartphones.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) and Pegatron Corp. Pegatron declined to comment on the report when contacted by Reuters, while Foxconn did not immediately reply to a request for comment.

There was little reaction to the report among shares of major Apple suppliers, as the market has already digested production cuts after the iPhone maker's forecast cut, analysts said.

Shares of Foxconn, the world's biggest electronics contract manufacturer, were up 1.6 per cent while Pegatron was up 1.3 per cent.

Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd was up 0.5 per cent, while Japan Display Inc was flat.

As Chinese demand has faltered, Apple has increased focus on India, which recently overtook the United States as the world's second-largest smartphone market.

Chief Executive Tim Cook reiterated in an interview with CNBC on Tuesday that India was a major focus for Apple.

Reuters reported last month that Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn this year, citing a person familiar with the matter.

Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, the Nikkei reported, citing sources with knowledge of the request.

Apple Inc, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 per cent for the January-March quarter, the Nikkei Asian Review reported on Wednesday. That rare forecast cut exposed weakening iPhone demand in China, the world's biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States. Many analysts and consumers have said the new iPhones are overpriced. Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, the Nikkei reported, citing sources with knowledge of the request. The request was made before Apple announced its forecast cut, the Nikkei said. The bleaker sales outlook, which Apple attributed to weak China demand, triggered a broad sell-off in global stock markets. Market research firm Canalys estimates shipments fell 12 per cent in China last year and expects smartphone shipments in 2019 to dip another 3 per cent, to below 400 million for the first time since 2014. Overall planned production volume of both old and new iPhones is likely to be cut to a range of 40 million to 43 million units for January-March, from an earlier projection of 47 million to 48 million units, the Nikkei reported, citing one source familiar with the situation. Apple did not immediately respond to a Reuters request for comment. The report comes after chip suppliers Samsung Electronics Co Ltd and Skyworks Solutions Inc flagged weak first-quarter chip demand for smartphones. Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) and Pegatron Corp. Pegatron declined to comment on the report when contacted by Reuters, while Foxconn did not immediately reply to a request for comment. There was little reaction to the report among shares of major Apple suppliers, as the market has already digested production cuts after the iPhone maker's forecast cut, analysts said. Shares of Foxconn, the world's biggest electronics contract manufacturer, were up 1.6 per cent while Pegatron was up 1.3 per cent. Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd was up 0.5 per cent, while Japan Display Inc was flat. As Chinese demand has faltered, Apple has increased focus on India, which recently overtook the United States as the world's second-largest smartphone market. Chief Executive Tim Cook reiterated in an interview with CNBC on Tuesday that India was a major focus for Apple. Reuters reported last month that Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn this year, citing a person familiar with the matter.

Apple cuts first quarter production plan for new iPhones: Report

Benchmark Sensex rose for the third straight session Friday to reclaim the 36,000-mark on across-the-board buying by foreign funds amid a rebound in the rupee.

After surging 400 points intra-day, the 30-share index pared some gains to end at 36,076.72, up 269.44 points or 0.75 per cent.

The broader NSE Nifty spurted 80.10 points, or 0.74 per cent, to 10,859.90.

During the week, the Sensex gained 334.65 points, while the Nifty advanced 105.9 points.

The biggest gainers in the Sensex pack in Friday's session were Sun Pharma, Bajaj Finance, Vedanta, Yes Bank, ICICI Bank, HDFC, Tata Motors, HCL Tech, IndusInd Bank and Axis Bank, rising up to 2.98 per cent.

On the other hand, TCS, Bajaj Auto, Hero MotoCorp, Bharti Airtel, PowerGrid and Infosys shed up to 0.70 per cent.

The gains were led by banking stocks, which rallied on reports that the government was likely to infuse Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds by the end of this month.

Yes Bank, ICICI Bank, Bank of Baroda, SBI and Kotak Bank gained up to 2 per cent.

The rupee, meanwhile, strengthened against the US dollar and was trading 37 paise higher at 69.98.

Brent crude futures rose 1.95 per cent to USD 53.76 per barrel.

On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,731.91 crore Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 663.00 crore, provisional data available with BSE showed.

Elsewhere in Asia, Korea's Kospi ended 0.62 per cent higher, Hong Kong's Hang Seng gained 0.09 per cent and Shanghai Composite Index rose 0.44 per cent, while Japan's Nikkei slipped 0.31 per cent.

In Europe, Paris CAC rose 1.47 per cent, while Frankfurt's DAX fell 1.56 per cent. London's FTSE gained 1.67 per cent.

Benchmark Sensex rose for the third straight session Friday to reclaim the 36,000-mark on across-the-board buying by foreign funds amid a rebound in the rupee. After surging 400 points intra-day, the 30-share index pared some gains to end at 36,076.

Benchmark Sensex rose for the third straight session Friday to reclaim the 36,000-mark on across-the-board buying by foreign funds amid a rebound in the rupee. After surging 400 points intra-day, the 30-share index pared some gains to end at 36,076.72, up 269.44 points or 0.75 per cent. The broader NSE Nifty spurted 80.10 points, or 0.74 per cent, to 10,859.90. During the week, the Sensex gained 334.65 points, while the Nifty advanced 105.9 points. The biggest gainers in the Sensex pack in Friday's session were Sun Pharma, Bajaj Finance, Vedanta, Yes Bank, ICICI Bank, HDFC, Tata Motors, HCL Tech, IndusInd Bank and Axis Bank, rising up to 2.98 per cent. On the other hand, TCS, Bajaj Auto, Hero MotoCorp, Bharti Airtel, PowerGrid and Infosys shed up to 0.70 per cent. The gains were led by banking stocks, which rallied on reports that the government was likely to infuse Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds by the end of this month. Yes Bank, ICICI Bank, Bank of Baroda, SBI and Kotak Bank gained up to 2 per cent. The rupee, meanwhile, strengthened against the US dollar and was trading 37 paise higher at 69.98. Brent crude futures rose 1.95 per cent to USD 53.76 per barrel. On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,731.91 crore Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 663.00 crore, provisional data available with BSE showed. Elsewhere in Asia, Korea's Kospi ended 0.62 per cent higher, Hong Kong's Hang Seng gained 0.09 per cent and Shanghai Composite Index rose 0.44 per cent, while Japan's Nikkei slipped 0.31 per cent. In Europe, Paris CAC rose 1.47 per cent, while Frankfurt's DAX fell 1.56 per cent. London's FTSE gained 1.67 per cent.

Sensex vaults 269 points to reclaim 36,000-mark

<a href="http://www.wionews.com/business-economy/asian-markets-rise-ahead-of-key-meetings-in-china-and-us-184789">Asian share markets </a>slumped on Tuesday as heightened concerns about a <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">slowing global economy</a> sent Wall Street stocks skidding to their lowest levels in more than a year.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break.

Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent.

MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29.

US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off.

On Monday, the S&amp;P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September.

The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent.

A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent

"US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading.

The gloomy data came after weak economic news from China and Europe late last week.

The 10-year US&nbsp;Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August.

FOCUS SHIFTS TO FED

The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year.

But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.

On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening.

"It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet.

White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year.

The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move.

"The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura.

"Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added.

The spectre of a "dovish rate hike" kept the dollar in check.

The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday.

The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent.

The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar.

Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms.

China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed.

Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.

<a href="http://www.wionews.com/business-economy/rupee-rises-37-paise-to-7119-against-us-dollar-on-falling-crude-prices-184949">US crude fell as low</a> as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day.

Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break. Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent. MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29. US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off. On Monday, the S&P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September. The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent. A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent "US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management. In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading. The gloomy data came after weak economic news from China and Europe late last week. The 10-year US Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August. FOCUS SHIFTS TO FED The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year. But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year. On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening. "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet. White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year. The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move. "The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura. "Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added. The spectre of a "dovish rate hike" kept the dollar in check. The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday. The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent. The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar. Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms. China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed. Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand. US crude fell as low as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day. Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asia stocks slide as global growth worries deepen

Japan's Hitachi on Monday announced plans to buy a majority stake in the power grid business of Swiss-Swedish engineering giant ABB for $6.4 billion, in what would be its biggest ever buyout.

The deal would make Hitachi the world's largest power grid company, local media said.

Under the plan, ABB will spin off its power grid unit, for which Hitachi will buy an 80.1 per cent stake for 704 billion yen in early 2020, the Japanese company said in a statement.

"We plan to buy the remaining shares so that Hitachi can make the unit its wholly-owned company," a spokesman said without disclosing, how much that would cost.

ABB's power grid unit makes and operates infrastructure including power transmission equipment and control systems in numerous countries.

The deal would also make Hitachi the world's second-largest heavy electrical equipment maker by revenue, behind only General Electric, according to local media.

The Nikkei business daily first reported the planned deal last Thursday, but Hitachi shares have since dropped 2.5 per cent.

Rating agency Standard &amp; Poor's said the power transmission and distribution business is growing globally, with service solutions a particularly promising field.

But "the business' profitability can be volatile, depending on how well a company manages projects related to equipment delivery", it added.

Japan's Hitachi on Monday announced plans to buy a majority stake in the power grid business of Swiss-Swedish engineering giant ABB for $6.4 billion, in what would be its biggest ever buyout.

Japan's Hitachi on Monday announced plans to buy a majority stake in the power grid business of Swiss-Swedish engineering giant ABB for $6.4 billion, in what would be its biggest ever buyout. The deal would make Hitachi the world's largest power grid company, local media said. Under the plan, ABB will spin off its power grid unit, for which Hitachi will buy an 80.1 per cent stake for 704 billion yen in early 2020, the Japanese company said in a statement. "We plan to buy the remaining shares so that Hitachi can make the unit its wholly-owned company," a spokesman said without disclosing, how much that would cost. ABB's power grid unit makes and operates infrastructure including power transmission equipment and control systems in numerous countries. The deal would also make Hitachi the world's second-largest heavy electrical equipment maker by revenue, behind only General Electric, according to local media. The Nikkei business daily first reported the planned deal last Thursday, but Hitachi shares have since dropped 2.5 per cent. Rating agency Standard & Poor's said the power transmission and distribution business is growing globally, with service solutions a particularly promising field. But "the business' profitability can be volatile, depending on how well a company manages projects related to equipment delivery", it added.

Hitachi to buy majority stake in ABB's power grid arm for $6.4 billion

The British pound lay battered and bruised in Asia on Friday after a bout of political turmoil fanned fears the country could crash out of the European Union without a divorce deal.

Asian share markets fared better as hopes for a thaw in Sino-US trade relations gave Wall Street a fillip, though there were duelling reports on the prospects for an actual agreement.

MSCI's broadest index of Asia-Pacific shares outside Japan was ahead 0.26 per cent in early trade, while Japan's Nikkei added 0.2 per cent.

Still, sterling stole the limelight after a rash of resignations rocked Prime Minister Theresa May's government and threw into doubt her long-awaited Brexit agreement just hours after it was unveiled.

Fears that May's hard-fought deal could collapse sent British markets into gyrations not seen since the June 2016 referendum on EU membership.

The pound suffered its biggest one-day loss against the euro since October 2016 and was last at 88.63 pence. Against the dollar, it was huddled at $1.2777 after shedding 1.6 per cent overnight.

Joseph Capurso, a senior currency strategist at CBA, listed just some of sterling's woes.

"If and when a vote on the withdrawal agreement occurs is uncertain. Whether the withdrawal bill is passed by both houses of Parliament is uncertain," Capurso said in a note.

"Whether the Prime Minister resigns or is challenged for the leadership is uncertain. And, whether there is a second referendum and/or an election is uncertain."

All of which helped British bonds rally sharply as investors wagered the political chaos and risk of a hard Brexit would deter the Bank of England from tightening anytime soon.

Yields on 5-year paper staged the largest one-day decline since the Brexit vote at almost 15 basis points.

DID HE? OR DIDN'T HE?

Absent the British drama, investors chose to be optimistic on the chance of progress on tariffs between the United States and China.

A Financial Times report said US Trade Representative Robert Lighthizer has told some industry executives that another round of US tariffs on Chinese imports has been put on hold.

CNBC later reported that Lighthizer's office had denied the story, but markets were cheered anyway.

The benchmark S&amp;P 500 index gained 1.06 per cent to snap five days of losses, while the Dow rose 0.83 per cent and the Nasdaq 1.72 per cent.&nbsp;

The plunge in sterling lifted the dollar against a basket of currencies to 97.06, even as the euro firmed a touch to $1.1328.

Also underwater was the cryptocurrency Bitcoin which hit a one-year trough overnight after tumbling 10 per cent early in the week when support at $6,000 gave way. It was last changing hands at $5,563.46 on the Bitstamp platform.

In commodity markets, gold was up a shade at $1,214.30.

Oil prices regained a little composure after their recent drubbing, helped by a decline in US fuel stockpiles and the possibility of a cut in OPEC output.&nbsp;

US crude was trading up 3 cents at $56.49. Brent crude was yet to trade but had ended Thursday up 58 cents at $66.70 a barrel.

The British pound lay battered and bruised in Asia on Friday after a bout of political turmoil fanned fears the country could crash out of the European Union without a divorce deal.

The British pound lay battered and bruised in Asia on Friday after a bout of political turmoil fanned fears the country could crash out of the European Union without a divorce deal. Asian share markets fared better as hopes for a thaw in Sino-US trade relations gave Wall Street a fillip, though there were duelling reports on the prospects for an actual agreement. MSCI's broadest index of Asia-Pacific shares outside Japan was ahead 0.26 per cent in early trade, while Japan's Nikkei added 0.2 per cent. Still, sterling stole the limelight after a rash of resignations rocked Prime Minister Theresa May's government and threw into doubt her long-awaited Brexit agreement just hours after it was unveiled. Fears that May's hard-fought deal could collapse sent British markets into gyrations not seen since the June 2016 referendum on EU membership. The pound suffered its biggest one-day loss against the euro since October 2016 and was last at 88.63 pence. Against the dollar, it was huddled at $1.2777 after shedding 1.6 per cent overnight. Joseph Capurso, a senior currency strategist at CBA, listed just some of sterling's woes. "If and when a vote on the withdrawal agreement occurs is uncertain. Whether the withdrawal bill is passed by both houses of Parliament is uncertain," Capurso said in a note. "Whether the Prime Minister resigns or is challenged for the leadership is uncertain. And, whether there is a second referendum and/or an election is uncertain." All of which helped British bonds rally sharply as investors wagered the political chaos and risk of a hard Brexit would deter the Bank of England from tightening anytime soon. Yields on 5-year paper staged the largest one-day decline since the Brexit vote at almost 15 basis points. DID HE? OR DIDN'T HE? Absent the British drama, investors chose to be optimistic on the chance of progress on tariffs between the United States and China. A Financial Times report said US Trade Representative Robert Lighthizer has told some industry executives that another round of US tariffs on Chinese imports has been put on hold. CNBC later reported that Lighthizer's office had denied the story, but markets were cheered anyway. The benchmark S&P 500 index gained 1.06 per cent to snap five days of losses, while the Dow rose 0.83 per cent and the Nasdaq 1.72 per cent. The plunge in sterling lifted the dollar against a basket of currencies to 97.06, even as the euro firmed a touch to $1.1328. Also underwater was the cryptocurrency Bitcoin which hit a one-year trough overnight after tumbling 10 per cent early in the week when support at $6,000 gave way. It was last changing hands at $5,563.46 on the Bitstamp platform. In commodity markets, gold was up a shade at $1,214.30. Oil prices regained a little composure after their recent drubbing, helped by a decline in US fuel stockpiles and the possibility of a cut in OPEC output. US crude was trading up 3 cents at $56.49. Brent crude was yet to trade but had ended Thursday up 58 cents at $66.70 a barrel.

Sterling scarred by Brexit turmoil; Asia shares cling to trade hopes

Some Asian stock markets opened in the red Friday, but losses were relatively muted as traders took a breather after a global rout sparked by fears over higher US interest rates.

Japan's main Nikkei-225 index began the day more than one per cent lower but bounced back in the first hour of trade.&nbsp;

Chinese stocks, which have seen a ferocious sell-off in recent days, also opened with marginal losses, the benchmark Shanghai Composite shedding 0.36 per cent.

But the Kospi index in South Korea bucked the trend and was trading in the green, as was the Hang Seng in Hong Kong as markets in Asia started the fightback.

The past two days have seen something approaching panic in global equity markets, as investors took fright in the face of a perfect storm of rising US interest rates and an intensifying trade war between the US and China.

The global sell-off was also in part due to US President Donald Trump describing the policies of the Federal Reserve as "loco" and "crazy", sparking concerns over the independence of the world's top central bank.

"Markets are finding themselves in a total state of discombobulation as we mercifully head towards the weekend," Stephen Innes, head of trading for Asia Pacific at Oanda, said in a commentary ahead of the opening bell in Japan.

"There have been multiple train wrecks over the past 24 hours, and the continuous wall of worry around US yields and US-China tension still weighs on equity sentiment," he said.

After a see-saw session on Wall Street, the Dow Jones ended 2.1 per cent down, taking its losses for the week to more than five per cent and closing at the lowest levels in months.

Frankfurt, Paris and London all lost at least 1.5 per cent as renewed worries over the eurozone came to the fore amid a budgetary scrap between the European Union and Italy.

Some experts warned that the correction, which came after many indices had hit multi-year highs, would be more than a flash in the pan.

"When we have a recalibration in values, it's not surprising that it takes more than one day," said Art Hogan, chief market strategist at B. Riley FBR.

"In these kinds of moves, it usually takes three days to wash out."

Most market watchers saw last week's surge in the yield of the 10-year US Treasury bond as the catalyst for the two-day rout in the US.

Yields spiked at an unexpectedly fast rate, prompting worries about a sudden acceleration of inflation and more aggressive Federal Reserve interest rate hikes.

Volatility also spread to commodities with big drops in the price of oil after the OPEC cartel cut its forecast for global oil demand.

However, these markets also staged a comeback, bouncing around 19 cents in early Asian trade.

Some Asian stock markets opened in the red Friday, but losses were relatively muted as traders took a breather after a global rout sparked by fears over higher US interest rates.

Some Asian stock markets opened in the red Friday, but losses were relatively muted as traders took a breather after a global rout sparked by fears over higher US interest rates. Japan's main Nikkei-225 index began the day more than one per cent lower but bounced back in the first hour of trade. Chinese stocks, which have seen a ferocious sell-off in recent days, also opened with marginal losses, the benchmark Shanghai Composite shedding 0.36 per cent. But the Kospi index in South Korea bucked the trend and was trading in the green, as was the Hang Seng in Hong Kong as markets in Asia started the fightback. The past two days have seen something approaching panic in global equity markets, as investors took fright in the face of a perfect storm of rising US interest rates and an intensifying trade war between the US and China. The global sell-off was also in part due to US President Donald Trump describing the policies of the Federal Reserve as "loco" and "crazy", sparking concerns over the independence of the world's top central bank. "Markets are finding themselves in a total state of discombobulation as we mercifully head towards the weekend," Stephen Innes, head of trading for Asia Pacific at Oanda, said in a commentary ahead of the opening bell in Japan. "There have been multiple train wrecks over the past 24 hours, and the continuous wall of worry around US yields and US-China tension still weighs on equity sentiment," he said. After a see-saw session on Wall Street, the Dow Jones ended 2.1 per cent down, taking its losses for the week to more than five per cent and closing at the lowest levels in months. Frankfurt, Paris and London all lost at least 1.5 per cent as renewed worries over the eurozone came to the fore amid a budgetary scrap between the European Union and Italy. Some experts warned that the correction, which came after many indices had hit multi-year highs, would be more than a flash in the pan. "When we have a recalibration in values, it's not surprising that it takes more than one day," said Art Hogan, chief market strategist at B. Riley FBR. "In these kinds of moves, it usually takes three days to wash out." Most market watchers saw last week's surge in the yield of the 10-year US Treasury bond as the catalyst for the two-day rout in the US. Yields spiked at an unexpectedly fast rate, prompting worries about a sudden acceleration of inflation and more aggressive Federal Reserve interest rate hikes. Volatility also spread to commodities with big drops in the price of oil after the OPEC cartel cut its forecast for global oil demand. However, these markets also staged a comeback, bouncing around 19 cents in early Asian trade.

Stock losses muted in Asia after global rout

Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs.

MSCI's broadest index of Asia-Pacific shares outside Japan &lt;.MIAPJ0000PUS&gt; was almost flat in early trade, in part as South Korea is closed for a holiday. It stayed below a three-week high hit on Friday.

In Japan, the Nikkei &lt;.N225&gt; edged down 0.4 per cent.

Wall Street shares were mixed, as rises in energy shares on higher oil prices and gains in consumer discretionary shares following strong US consumer confidence were offset by falls in other sectors.

US consumer confidence hit an 18-year high, adding to a string of recent US data that pointed to the strong US&nbsp;economic momentum, despite concerns about trade wars US President Donald Trump is waging.

The Dow Jones Industrial Average &lt;.DJI&gt; fell 0.26 percent, the S&amp;P 500 &lt;.SPX&gt; lost 0.13 percent while the Nasdaq Composite &lt;.IXIC&gt; added 0.18 percent.

The utility sector, sometimes seen as an alternative to bonds because of the relative steadiness of their business, was the worst performer as investors braced for a rate hike by the Federal Reserve later on Wednesday.

The benchmark 10-year Treasury yield &lt;US10YT=RR&gt; rose to as high as 3.113 per cent, near its seven-year peak of 3.128 per cent touched on May 18.

Fed funds rates futures &lt;0#FF:&gt; implied traders are fully pricing in a rate hike on Wednesday, and another 85 per cent chance the Fed would raise rates again in December.

"The focus will be on whether the Fed will indicate its tightening is coming to an end. The Fed may not do so today but I expect markets will soon start looking to that scenario," said Akira Takei, bond fund manager at Asset Management One.

Takei noted that there are already signs that higher rates are starting to hurt the US economy, such as a rise in delinquencies of consumer loans, adding the dollar's softness could be an early sign of growing focus over an end to the US tightening cycle.

The dollar's index against a basket of major currencies stood at 94.169 &lt;=USD&gt;, near Friday's 93.808, a 2-1/2-month low.

The euro traded at $1.1765 &lt;EUR=&gt;, not far from three-month high of $1.18155 touched on Monday.

Many emerging market currencies, such as the Turkish lira &lt;TRYTOM=D4&gt; and the South African rand &lt;ZAR=D4&gt;, also kept some distances from lows hit last month.

A rare exception was the yen &lt;JPY=&gt;, which changed hands at 112.98 to the dollar, near six-month lows of 113.18 set in mid-July.

Oil prices slipped following data showing US crude stocks rose unexpectedly last week and renewed call from Trump on OPEC to boost crude output.

Still they were supported on the whole on concerns of tight supply on US sanctions on Iran's oil exports.

Benchmark Brent futures &lt;LCOc1&gt; hit $82.55 per barrel, its highest since Nov. 10, 2014, on Tuesday and last stood at $81.41, down 0.55 per cent on the day.

US crude futures &lt;CLc1&gt; shed 0.6 per cent to $71.87 per barrel after hitting an 11-week high of $72.78 the previous day. 
&nbsp;

Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs.

Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was almost flat in early trade, in part as South Korea is closed for a holiday. It stayed below a three-week high hit on Friday. In Japan, the Nikkei <.N225> edged down 0.4 per cent. Wall Street shares were mixed, as rises in energy shares on higher oil prices and gains in consumer discretionary shares following strong US consumer confidence were offset by falls in other sectors. US consumer confidence hit an 18-year high, adding to a string of recent US data that pointed to the strong US economic momentum, despite concerns about trade wars US President Donald Trump is waging. The Dow Jones Industrial Average <.DJI> fell 0.26 percent, the S&P 500 <.SPX> lost 0.13 percent while the Nasdaq Composite <.IXIC> added 0.18 percent. The utility sector, sometimes seen as an alternative to bonds because of the relative steadiness of their business, was the worst performer as investors braced for a rate hike by the Federal Reserve later on Wednesday. The benchmark 10-year Treasury yield <US10YT=RR> rose to as high as 3.113 per cent, near its seven-year peak of 3.128 per cent touched on May 18. Fed funds rates futures <0#FF:> implied traders are fully pricing in a rate hike on Wednesday, and another 85 per cent chance the Fed would raise rates again in December. "The focus will be on whether the Fed will indicate its tightening is coming to an end. The Fed may not do so today but I expect markets will soon start looking to that scenario," said Akira Takei, bond fund manager at Asset Management One. Takei noted that there are already signs that higher rates are starting to hurt the US economy, such as a rise in delinquencies of consumer loans, adding the dollar's softness could be an early sign of growing focus over an end to the US tightening cycle. The dollar's index against a basket of major currencies stood at 94.169 <=USD>, near Friday's 93.808, a 2-1/2-month low. The euro traded at $1.1765 <EUR=>, not far from three-month high of $1.18155 touched on Monday. Many emerging market currencies, such as the Turkish lira <TRYTOM=D4> and the South African rand <ZAR=D4>, also kept some distances from lows hit last month. A rare exception was the yen <JPY=>, which changed hands at 112.98 to the dollar, near six-month lows of 113.18 set in mid-July. Oil prices slipped following data showing US crude stocks rose unexpectedly last week and renewed call from Trump on OPEC to boost crude output. Still they were supported on the whole on concerns of tight supply on US sanctions on Iran's oil exports. Benchmark Brent futures <LCOc1> hit $82.55 per barrel, its highest since Nov. 10, 2014, on Tuesday and last stood at $81.41, down 0.55 per cent on the day. US crude futures <CLc1> shed 0.6 per cent to $71.87 per barrel after hitting an 11-week high of $72.78 the previous day.

Asian shares hover below 3-week high as Fed rate hike looms

Apple Inc expects to ship 80 million new model iPhones this year, down 20 percent from what it had planned at the same time last year, Japanese financial daily the Nikkei reported on Friday, citing industry sources.

The California-based firm has asked suppliers to make about 20 percent fewer components for the three new iPhones it plans to launch in the second half of 2018, compared to last year's plans for its iPhone X and iPhone 8 models, the paper reported.

The report added to concerns that consumer passion for new editions of the iconic smartphones may be cooling after years of scorching growth, sending shares in Apple and many of its major suppliers lower and weighing on global stock markets.

"This news needs to be viewed in the context of Apple probably being overly optimistic last year in relation to the prospects for its new phones, leaving it with excess inventory in the first part of this year," Atlantic Equities analyst James Cordwell said.

"At least part of this lower order forecast probably relates to Apple just being a little more realistic."

Apple did not immediately respond to a request for comment.

Shares in the company fell as much as 2 percent on the report, while those in suppliers AMS and Dialog Semi sank 6 percent and 4.1 percent respectively.

US-based supplier Advanced Micro Devices, Micron Technology Intel, Broadcom Inc and Qualcomm Inc were all down between 1 percent and 4 percent.

Many analysts have said the high price of the iPhone X - which sells for $1,000 and is the first iPhone to sport a new design since the launch of the iPhone 6 in 2015 - is also muting demand for the flagship.

"Apple is quite conservative in terms of placing new orders for upcoming iPhones this year," said one of four industry sources cited by the Nikkei Asian Review.

"For the three new models specifically, the total planned capacity could be up to 20 percent fewer than last year's orders."

Top Apple analyst Ming-Chi Kuo said earlier this week that Apple might cut prices of new iPhones to debut later this year by as much as $300, according to several media reports.

Kuo said that Apple was likely to launch a 6.5-inch OLED "IPhone X Plus," a second generation of iPhone X and an iPhone with a 6.1 inch screen.

"As the improvements made to the iPhone each year become increasingly marginal it may become more difficult to convince consumers to pay up for the latest model, when an older generation device is effectively just as good," said Atlantic Equities' Cordwell.

While media speculation about demand for the iPhone X swirled in the past six months, Apple's market value has continued to rise and is now within striking distance of $1 trillion.

DA&nbsp;Davidson & Co analyst Thomas Forte also played down any fears.

"I am not overly concerned ... about the lower supply speculations," he said. "Apple is doing enough in general to keep the ball moving forward."

The California-based firm has asked suppliers to make about 20 percent fewer components for the three new iPhones it plans to launch in the second half of 2018, compared to last year's plans for its iPhone X and iPhone 8 models, the paper reported.

Apple Inc expects to ship 80 million new model iPhones this year, down 20 percent from what it had planned at the same time last year, Japanese financial daily the Nikkei reported on Friday, citing industry sources. The California-based firm has asked suppliers to make about 20 percent fewer components for the three new iPhones it plans to launch in the second half of 2018, compared to last year's plans for its iPhone X and iPhone 8 models, the paper reported. The report added to concerns that consumer passion for new editions of the iconic smartphones may be cooling after years of scorching growth, sending shares in Apple and many of its major suppliers lower and weighing on global stock markets. "This news needs to be viewed in the context of Apple probably being overly optimistic last year in relation to the prospects for its new phones, leaving it with excess inventory in the first part of this year," Atlantic Equities analyst James Cordwell said. "At least part of this lower order forecast probably relates to Apple just being a little more realistic." Apple did not immediately respond to a request for comment. Shares in the company fell as much as 2 percent on the report, while those in suppliers AMS and Dialog Semi sank 6 percent and 4.1 percent respectively. US-based supplier Advanced Micro Devices, Micron Technology Intel, Broadcom Inc and Qualcomm Inc were all down between 1 percent and 4 percent. Many analysts have said the high price of the iPhone X - which sells for $1,000 and is the first iPhone to sport a new design since the launch of the iPhone 6 in 2015 - is also muting demand for the flagship. "Apple is quite conservative in terms of placing new orders for upcoming iPhones this year," said one of four industry sources cited by the Nikkei Asian Review. "For the three new models specifically, the total planned capacity could be up to 20 percent fewer than last year's orders." Top Apple analyst Ming-Chi Kuo said earlier this week that Apple might cut prices of new iPhones to debut later this year by as much as $300, according to several media reports. Kuo said that Apple was likely to launch a 6.5-inch OLED "IPhone X Plus," a second generation of iPhone X and an iPhone with a 6.1 inch screen. "As the improvements made to the iPhone each year become increasingly marginal it may become more difficult to convince consumers to pay up for the latest model, when an older generation device is effectively just as good," said Atlantic Equities' Cordwell. While media speculation about demand for the iPhone X swirled in the past six months, Apple's market value has continued to rise and is now within striking distance of $1 trillion. DA Davidson & Co analyst Thomas Forte also played down any fears. "I am not overly concerned ... about the lower supply speculations," he said. "Apple is doing enough in general to keep the ball moving forward."

Apple to make 20 per cent fewer new model iPhones this year: Nikkei

Shares in Toshiba dived more than nine percent Tuesday after the huge conglomerate delayed the release of financial results expected to include billions of dollars in losses tied to its ailing US nuclear power unit.

The firm plunged 9.45 percent to 226.2 yen ($2) after it surprised markets by saying its nine-month earnings report had &quot;not yet become available&quot;.

A spokeswoman declined to elaborate and it was not clear when the figures, originally due around noon local time (0300 GMT), would be released.

It was also unclear if company executives would still hold a previously scheduled news briefing later in the day.&nbsp;

The sell-off extended morning losses that were sparked by a report in Japan&#39;s Nikkei business daily, which said it is going to issue a warning to shareholders that its future is in jeopardy.

Shares in the firm have almost halved since late December when Toshiba first flagged huge losses in its atomic unit.

Earlier reports said Toshiba -- one of Japan&#39;s best-known firms and a cornerstone of its post-war industrial rise -- was likely to log a net loss of more than $4.0 billion in the April-December period.&nbsp;

The shortfall is linked to losses reportedly topping $6.0 billion at the troubled US nuclear business, once touted as filling a hole left after the 2011 Fukushima crisis slammed the brakes on new atomic projects in Japan.

The reported loss is related to problems with the value placed on a deal involving the purchase of a nuclear services company by Toshiba subsidiary Westinghouse Electric.

The Nikkei report said Toshiba&#39;s mounting losses would force the company to warn investors over its ability to continue as a going concern in its current form.

It would be the first such warning by the group since its birth from a 1939 merger, according to the Nikkei.

Some other reports have said Toshiba chairman Shigenori Shiga and Danny Roderick -- an executive and the former head of Westinghouse Electric -- are expected to step down.

There is speculation that Toshiba will dramatically reduce its nuclear operations and stop building new atomic power plants, but would continue designing and making reactors and other components.

Toshiba has approached South Korean utility Korea Electric Power Corp. about selling part of its stake in British nuclear joint venture NuGeneration.

In April-December 2015, Toshiba reported a 479 billion yen ($4.2 billion) net loss due largely to an embarrassing profit-padding scandal, in which bosses for years systematically pushed subordinates to cover up weak financial results.

The engineering conglomerate, which makes everything from trains to memory chips, is undergoing a major restructuring after the accounting scandal and the losses in its nuclear business.

The company has already sold its medical devices unit to Canon and most of its appliance business to China&#39;s Midea Group.

It is also moving to spin off its memory chip business to repair its battered balance sheet.&nbsp;

(AFP)

The firm's shares plunged 9.45% after it surprised markets by saying its nine-month earnings report had 'not yet become available'

Shares in Toshiba dived more than nine percent Tuesday after the huge conglomerate delayed the release of financial results expected to include billions of dollars in losses tied to its ailing US nuclear power unit. The firm plunged 9.45 percent to 226.2 yen ($2) after it surprised markets by saying its nine-month earnings report had "not yet become available". A spokeswoman declined to elaborate and it was not clear when the figures, originally due around noon local time (0300 GMT), would be released. It was also unclear if company executives would still hold a previously scheduled news briefing later in the day. The sell-off extended morning losses that were sparked by a report in Japan's Nikkei business daily, which said it is going to issue a warning to shareholders that its future is in jeopardy. Shares in the firm have almost halved since late December when Toshiba first flagged huge losses in its atomic unit. Earlier reports said Toshiba -- one of Japan's best-known firms and a cornerstone of its post-war industrial rise -- was likely to log a net loss of more than $4.0 billion in the April-December period. The shortfall is linked to losses reportedly topping $6.0 billion at the troubled US nuclear business, once touted as filling a hole left after the 2011 Fukushima crisis slammed the brakes on new atomic projects in Japan. The reported loss is related to problems with the value placed on a deal involving the purchase of a nuclear services company by Toshiba subsidiary Westinghouse Electric. The Nikkei report said Toshiba's mounting losses would force the company to warn investors over its ability to continue as a going concern in its current form. It would be the first such warning by the group since its birth from a 1939 merger, according to the Nikkei. Some other reports have said Toshiba chairman Shigenori Shiga and Danny Roderick -- an executive and the former head of Westinghouse Electric -- are expected to step down. There is speculation that Toshiba will dramatically reduce its nuclear operations and stop building new atomic power plants, but would continue designing and making reactors and other components. Toshiba has approached South Korean utility Korea Electric Power Corp. about selling part of its stake in British nuclear joint venture NuGeneration. In April-December 2015, Toshiba reported a 479 billion yen ($4.2 billion) net loss due largely to an embarrassing profit-padding scandal, in which bosses for years systematically pushed subordinates to cover up weak financial results. The engineering conglomerate, which makes everything from trains to memory chips, is undergoing a major restructuring after the accounting scandal and the losses in its nuclear business. The company has already sold its medical devices unit to Canon and most of its appliance business to China's Midea Group. It is also moving to spin off its memory chip business to repair its battered balance sheet. (AFP)

Toshiba stocks nosedive after it delays release of financial results

Asian shares rallied to an 18-month peak on Friday, as investors cheered upbeat Chinese trade data and strong gains on Wall Street after US&nbsp;President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses.

China&#39;s January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations, preliminary data showed, getting the economy off to a strong start in 2017.

The increase &quot;is related to the global pick-up in growth in the US, Europe and also emerging economies,&quot; said Jianguang Shen, chief economist at Mizuho Securities in Hong Kong.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent to the highest level since July 2015&nbsp;and was on track to gain 1.5 for the week. The Shanghai Composite Index was up 0.4 per cent.

Japan&#39;s Nikkei stock index surged 2.3 per cent thanks to the tailwind from a weaker currency&nbsp;and was poised to added 2.2 per cent for the week.

&quot;Weaker yen combined with US&nbsp;stock price gains are fuelling an upward trend in the Tokyo market,&quot; said Hiroki Allen, chief representative of Superfund Japan.

Wall Street&#39;s three main indexes notched record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks, though he offered no details.

&quot;The market loves the idea of tax reform,&quot; Chris Weston, chief market strategist at IG in Melbourne, said in a note. &quot;It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the US&nbsp;and global equities will find buyers.&quot;

US&nbsp;economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month.

The dollar index, which tracks the greenback against a basket of six major currencies, was steady on the day at 100.64, on track to gain 0.8 per cent for the week.

The Australian dollar rode the trade data from the China, Australia&#39;s major export market. The Aussie rose 0.3 per cent to $0.7646, also supported by an optimistic view from the country&#39;s central bank, which suggested that further interest rate cuts were off the table.

The euro, under pressure from political concerns as the campaign for France&#39;s presidential election heated up, was 0.1 per cent higher at $1.0663. It was still down 1.1 per cent for the week.

Against its Japanese counterpart, the dollar gained 0.4 per cent to 113.66 yen, up 1 per cent for the week ahead of a meeting later on Friday between Trump and Japan&#39;s Prime Minister Shinzo Abe.

Abe will propose a new cabinet level framework for US-Japan talks on trade, security and macroeconomic issues, including currencies, a Japanese government official involved in planning the summit said.

Crude oil prices extended gains, with US&nbsp;prices bolstered by evidence that gasoline demand could strengthen in the world&#39;s biggest oil market.

US&nbsp;crude added 0.2 per cent to $53.09 a barrel. Brent crude rose 0.1 per cent to at $55.70.

(Reuters)

China's January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations

Asian shares rallied to an 18-month peak on Friday, as investors cheered upbeat Chinese trade data and strong gains on Wall Street after US President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses. China's January exports rose 7.9 per cent from a year earlier, while imports jumped 16.7 per cent, beating expectations, preliminary data showed, getting the economy off to a strong start in 2017. The increase "is related to the global pick-up in growth in the US, Europe and also emerging economies," said Jianguang Shen, chief economist at Mizuho Securities in Hong Kong. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent to the highest level since July 2015 and was on track to gain 1.5 for the week. The Shanghai Composite Index was up 0.4 per cent. Japan's Nikkei stock index surged 2.3 per cent thanks to the tailwind from a weaker currency and was poised to added 2.2 per cent for the week. "Weaker yen combined with US stock price gains are fuelling an upward trend in the Tokyo market," said Hiroki Allen, chief representative of Superfund Japan. Wall Street's three main indexes notched record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks, though he offered no details. "The market loves the idea of tax reform," Chris Weston, chief market strategist at IG in Melbourne, said in a note. "It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the US and global equities will find buyers." US economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month. The dollar index, which tracks the greenback against a basket of six major currencies, was steady on the day at 100.64, on track to gain 0.8 per cent for the week. The Australian dollar rode the trade data from the China, Australia's major export market. The Aussie rose 0.3 per cent to $0.7646, also supported by an optimistic view from the country's central bank, which suggested that further interest rate cuts were off the table. The euro, under pressure from political concerns as the campaign for France's presidential election heated up, was 0.1 per cent higher at $1.0663. It was still down 1.1 per cent for the week. Against its Japanese counterpart, the dollar gained 0.4 per cent to 113.66 yen, up 1 per cent for the week ahead of a meeting later on Friday between Trump and Japan's Prime Minister Shinzo Abe. Abe will propose a new cabinet level framework for US-Japan talks on trade, security and macroeconomic issues, including currencies, a Japanese government official involved in planning the summit said. Crude oil prices extended gains, with US prices bolstered by evidence that gasoline demand could strengthen in the world's biggest oil market. US crude added 0.2 per cent to $53.09 a barrel. Brent crude rose 0.1 per cent to at $55.70. (Reuters)

Asian shares scale 1-1/2-year peak on China trade, Trump's tax cut talk

World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US&nbsp;President Donald Trump will press ahead with a large fiscal spending package.

Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks.

MSCI&#39;s global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street&#39;s main indices reached fresh peaks overnight.

Europe&#39;s index of 300 leading shares and Germany&#39;s DAX both rose 1 per cent and Britain&#39;s FTSE 100 was up 0.7 per cent.

Japan&#39;s Nikkei advanced 1.4 per cent, buoyed by data showing the country&#39;s exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US&nbsp;protectionism looms over the outlook.

US&nbsp;futures pointed to a higher open on Wall Street. On Tuesday the S&amp;P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark.

&quot;US&nbsp;stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the &#39;Trump rally&#39; that we saw in the aftermath of the presidential election,&quot; said Kathleen Brooks, research director at City Index.

Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure.

He also met chief executives of the Big Three US&nbsp;automakers to push for more cars to be built in the United States.

&quot;Wednesday&#39;s key theme is the return of the &#39;Trump trade&#39;,&quot; Brooks said.

Bond yields up

The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US&nbsp;investment, after focusing on protectionism in his first few days in office.

The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday.

While the greenback moved in tandem with the snap back in US&nbsp;Treasury yields overnight, it struggled to make much headway in Asian and European trading.

Lingering concerns about growing protectionism from the Trump administration&nbsp;and the potential negative effects on global trade and growth remained close to the surface.

&quot;It has kept dollar/yen flat despite the S&amp;P 500 hitting new highs and Treasury yields edging up,&quot; Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday.

&quot;There&#39;s no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US&nbsp;trade,&quot; he said.

The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month.

Germany&#39;s 10-year Bund yield rose to a six-week high of 0.38 per cent and France&#39;s benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply.

Sterling was steady at $1.2524 after Britain&#39;s Supreme Court ruled that the government would need approval from parliament before formally triggering the country&#39;s departure from the European Union.

The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week.

Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight.

Renewed optimism over Trump&#39;s growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce.

(Reuters)

Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent

World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US President Donald Trump will press ahead with a large fiscal spending package. Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks. MSCI's global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street's main indices reached fresh peaks overnight. Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent. Japan's Nikkei advanced 1.4 per cent, buoyed by data showing the country's exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US protectionism looms over the outlook. US futures pointed to a higher open on Wall Street. On Tuesday the S&P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark. "US stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the 'Trump rally' that we saw in the aftermath of the presidential election," said Kathleen Brooks, research director at City Index. Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure. He also met chief executives of the Big Three US automakers to push for more cars to be built in the United States. "Wednesday's key theme is the return of the 'Trump trade'," Brooks said. Bond yields up The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US investment, after focusing on protectionism in his first few days in office. The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday. While the greenback moved in tandem with the snap back in US Treasury yields overnight, it struggled to make much headway in Asian and European trading. Lingering concerns about growing protectionism from the Trump administration and the potential negative effects on global trade and growth remained close to the surface. "It has kept dollar/yen flat despite the S&P 500 hitting new highs and Treasury yields edging up," Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday. "There's no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US trade," he said. The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month. Germany's 10-year Bund yield rose to a six-week high of 0.38 per cent and France's benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply. Sterling was steady at $1.2524 after Britain's Supreme Court ruled that the government would need approval from parliament before formally triggering the country's departure from the European Union. The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week. Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight. Renewed optimism over Trump's growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce. (Reuters)

Reignited 'Trump trades' help world stocks hit 19-month high

World stocks, the dollar and oil fell on Wednesday, while safe-haven assets such as gold and the Swiss franc rose as investors were rattled by signs the US presidential race was tightening just days before the vote.

Investors were beginning to rethink their long-held bets of a November 8 victory for Democratic candidate Hillary Clinton amid signs her Republican rival Donald Trump could be closing the gap, deepening the recent decline across major stock markets.

Asian stocks hit a seven-week low on Wednesday, while European bourses followed Wall Street&#39;s lead overnight and slid to a four-month low.

Bonds rose alongside gold, the Swiss franc and Japanese yen, with the yield on 10-year US Treasuries falling for the third day in a row. British gilts, which have recently been slammed by uncertainty surrounding the post-Brexit UK outlook, surged too.

&quot;The lead up to the US presidential election was always expected to be lively but the events of the last couple of days have seriously taken their toll on investor sentiment,&quot; said Craig Erlam, senior market analyst at Oanda in London.

Investor anxiety has deepened in recent sessions over a possible Trump victory given uncertainty on the Republican candidate&#39;s stance on key issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo.

Europe&#39;s index of leading 300 shares was last down 0.4 per cent, having earlier hit a four-month low of 1,313 points. Britain&#39;s Britain&#39;s FTSE and Germany&#39;s DAX fell 0.4 and 0.7 per cent, respectively.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan dropped 1.1 per cent to seven-week lows while the yen&#39;s rise to a two-week high helped push Japan&#39;s Nikkei down 1.8 percent.

US stock futures recovered earlier losses, pointing to a fall of only 0.1 per cent at the open. This would still signify a fresh four-month low for Wall Street.

Pricing a Trump victory

The tumultuous presidential race appeared to tighten after news that the Federal Bureau of Investigation was reviewing more emails as part of a probe into Clinton&#39;s use of a private email server.

While Clinton held a five-percentage-point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, some other polls showed her Republican rival ahead by 1-2 percentage points.

Barclays strategists estimate that a rise in Trump&#39;s polling odds to 50 per cent could see the S&amp;P 500 fall 4-5 percent, and potentially as much as 10-11 percent if he wins.

This has unnerved markets and the CBOE volatility index, often seen as investors&#39; fear gauge, rose to a two-month high above 20 percent.

The tension in markets came as the Federal Reserve holds its two-day policy meeting, with its statement due later on Wednesday. While traders do not expect a rate hike just a week ahead of the presidential election, they are looking for signs that the Fed will move in December.

Investors have grown increasingly confident in recent weeks that the Fed will follow through next month, attaching an 80 percent probability to such a move, according to fed funds futures pricing.

But currency traders have sold the dollar this week in part because they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade, and in part because the uncertainty surrounding a Trump win might lead to a more dovish stance from the Fed in the months ahead.

The dollar fell again on Wednesday, after posting its biggest one-day fall on Tuesday in two months.

The euro rose 0.4 per cent to touch $1.11 for the first time in more than three weeks. It is up about two per cent from its 7-1/2-month low of $1.0851 hit last week.

Against the yen, the dollar fell 0.8 percent to 103.24 yen from three-month high of 105.54 yen set on Friday.

&quot;If you had a long dollar position on the view that the dollar would gain because Clinton would win, you would surely close that position because her victory is less certain,&quot; said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank.

Other safe-haven assets also rose. The Swiss franc hit a four-month high of 1.0750 francs per euro, its highest level since late June, while gold reached a four-week high of $1,297 per ounce.

Oil prices fell for the fourth day in a row, sliding to one-month lows. Brent crude futures fell more than 1 percent to $47.53 per barrel, and US crude was down as low as $46.06. Oil has lost 10 percent in the last two weeks.

(Reuters)

Investors fear Trump's victory because of his uncertain stance on issues of foreign policy, trade relations and immigrants

World stocks, the dollar and oil fell on Wednesday, while safe-haven assets such as gold and the Swiss franc rose as investors were rattled by signs the US presidential race was tightening just days before the vote. Investors were beginning to rethink their long-held bets of a November 8 victory for Democratic candidate Hillary Clinton amid signs her Republican rival Donald Trump could be closing the gap, deepening the recent decline across major stock markets. Asian stocks hit a seven-week low on Wednesday, while European bourses followed Wall Street's lead overnight and slid to a four-month low. Bonds rose alongside gold, the Swiss franc and Japanese yen, with the yield on 10-year US Treasuries falling for the third day in a row. British gilts, which have recently been slammed by uncertainty surrounding the post-Brexit UK outlook, surged too. "The lead up to the US presidential election was always expected to be lively but the events of the last couple of days have seriously taken their toll on investor sentiment," said Craig Erlam, senior market analyst at Oanda in London. Investor anxiety has deepened in recent sessions over a possible Trump victory given uncertainty on the Republican candidate's stance on key issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo. Europe's index of leading 300 shares was last down 0.4 per cent, having earlier hit a four-month low of 1,313 points. Britain's Britain's FTSE and Germany's DAX fell 0.4 and 0.7 per cent, respectively. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.1 per cent to seven-week lows while the yen's rise to a two-week high helped push Japan's Nikkei down 1.8 percent. US stock futures recovered earlier losses, pointing to a fall of only 0.1 per cent at the open. This would still signify a fresh four-month low for Wall Street. Pricing a Trump victory The tumultuous presidential race appeared to tighten after news that the Federal Bureau of Investigation was reviewing more emails as part of a probe into Clinton's use of a private email server. While Clinton held a five-percentage-point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, some other polls showed her Republican rival ahead by 1-2 percentage points. Barclays strategists estimate that a rise in Trump's polling odds to 50 per cent could see the S&P 500 fall 4-5 percent, and potentially as much as 10-11 percent if he wins. This has unnerved markets and the CBOE volatility index, often seen as investors' fear gauge, rose to a two-month high above 20 percent. The tension in markets came as the Federal Reserve holds its two-day policy meeting, with its statement due later on Wednesday. While traders do not expect a rate hike just a week ahead of the presidential election, they are looking for signs that the Fed will move in December. Investors have grown increasingly confident in recent weeks that the Fed will follow through next month, attaching an 80 percent probability to such a move, according to fed funds futures pricing. But currency traders have sold the dollar this week in part because they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade, and in part because the uncertainty surrounding a Trump win might lead to a more dovish stance from the Fed in the months ahead. The dollar fell again on Wednesday, after posting its biggest one-day fall on Tuesday in two months. The euro rose 0.4 per cent to touch $1.11 for the first time in more than three weeks. It is up about two per cent from its 7-1/2-month low of $1.0851 hit last week. Against the yen, the dollar fell 0.8 percent to 103.24 yen from three-month high of 105.54 yen set on Friday. "If you had a long dollar position on the view that the dollar would gain because Clinton would win, you would surely close that position because her victory is less certain," said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank. Other safe-haven assets also rose. The Swiss franc hit a four-month high of 1.0750 francs per euro, its highest level since late June, while gold reached a four-week high of $1,297 per ounce. Oil prices fell for the fourth day in a row, sliding to one-month lows. Brent crude futures fell more than 1 percent to $47.53 per barrel, and US crude was down as low as $46.06. Oil has lost 10 percent in the last two weeks. (Reuters)

Global stocks fall over chances of Trump's victory in US elections

Asian shares edged lower on Tuesday as investors nervously awaited the outcomes of two-day Federal Reserve and Bank of Japan policy meetings. 
 
&quot;The market is more nervous about the BOJ than the Fed as it may give the market a surprise,&quot; said Yutaka Miura, a senior technical analyst at Mizuho Securities. 
 
Global markets have been blowing hot and cold in recent weeks over the Fed&#39;s intentions, which remain far from clarified after both hawkish and dovish comments from several Fed officials. 
 
The consensus is that the Fed will leave interest rates unchanged at the end of its meeting on Wednesday, with investors focusing on the statement as well as Chair Janet Yellen&#39;s speech for clues on the timing of the central bank&#39;s next interest rate increase. 
 
&quot;It&#39;s a lot of uncertainty, leading into the Fed,&quot; said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon. 
 
While Vail, like most strategists and investors, expects the Fed to refrain from taking any new steps, she said its statement could include language that&#39;s been missing from its recent assessments, such as whether economic risks were &quot;balanced&quot; or &quot;close to balanced.&quot; 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, after major US indexes ended a choppy session nearly flat. 
 
Australian shares were 0.2 percent lower. The Australian Securities Exchange opened without incident on Tuesday after technical faults caused extensive disruptions on Monday. 
 
Japan&#39;s Nikkei stock index erased earlier losses and added 0.1 percent, as trading resumed after a public holiday on Monday. Tokyo markets will be closed for another holiday on Thursday, with the highly-anticipated BOJ meeting sandwiched in between the market closures. 
 
The BOJ could make negative interest rates the primary focus of its monetary policy at the conclusion of its meeting on Wednesday, when it conducts what it described as a &quot;comprehensive&quot; assessment of its policies. 
 
Sources have said BOJ policymakers may consider deepening negative interest rates to show its determination to maintain an ultra-easy policy bias. It unveiled the controversial policy in late January. 
 
&quot;The resulting strength of the yen since then can&#39;t really give them a positive outlook on negative rates,&quot; said US Bank Wealth Management&#39;s Vail, adding that &quot;the risk is for lack of any action, given the lack of consensus&quot; among BOJ members. 
 
Rising speculation that the BOJ will stop short of the dramatic action needed to weaken its currency helped send the dollar to a six-day low against the yen of 101.56 yen on Monday. The dollar was last steady on the day at 101.90 yen. 
 
Wary of a flattening Japanese government bond (JGB) yield curve, the BOJ also could seek ways to steepen the curve, such as making its bond buying more flexible. 
 
Policymakers got a taste last week of how markets might react when investors dumped longer-dated bonds on fears the BOJ would slow its purchasing pace. 
 
&quot;We look for the BOJ to take a more flexible stance on the time horizon for reaching its price stability target and on the pace of its JGB purchases, but expect it to refrain from further easing at this meeting,&quot; strategists at Barclays said. 
 
The euro was also steady at $1.1172, remaining well above Monday&#39;s nearly two-week low of $1.1149. 
 
The dollar index, which tracks the greenback against a basket of six major rivals, was slightly higher at 95.874, though it was shy of Friday&#39;s two-week high of 96.108. 
 
US crude oil futures slipped 0.5 percent to $43.07 a barrel, moving further away from overnight highs. Brent edged 0.3 percent lower to $45.82. 
 
Oil had rallied on Monday before settling off its highs on scepticism over Venezuela&#39;s bid to talk up a potential OPEC output freeze, and on indications US crude stockpiles had risen last week. 
 
Spot gold added 0.2 per cent to $1,315.84 an ounce, on expectations that the Fed will stand pat on rates.

(Reuters)

Global markets have been blowing hot and cold in recent weeks over the Fed's intentions, which remain far from clarified

Asian shares edged lower on Tuesday as investors nervously awaited the outcomes of two-day Federal Reserve and Bank of Japan policy meetings. "The market is more nervous about the BOJ than the Fed as it may give the market a surprise," said Yutaka Miura, a senior technical analyst at Mizuho Securities. Global markets have been blowing hot and cold in recent weeks over the Fed's intentions, which remain far from clarified after both hawkish and dovish comments from several Fed officials. The consensus is that the Fed will leave interest rates unchanged at the end of its meeting on Wednesday, with investors focusing on the statement as well as Chair Janet Yellen's speech for clues on the timing of the central bank's next interest rate increase. "It's a lot of uncertainty, leading into the Fed," said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon. While Vail, like most strategists and investors, expects the Fed to refrain from taking any new steps, she said its statement could include language that's been missing from its recent assessments, such as whether economic risks were "balanced" or "close to balanced." MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, after major US indexes ended a choppy session nearly flat. Australian shares were 0.2 percent lower. The Australian Securities Exchange opened without incident on Tuesday after technical faults caused extensive disruptions on Monday. Japan's Nikkei stock index erased earlier losses and added 0.1 percent, as trading resumed after a public holiday on Monday. Tokyo markets will be closed for another holiday on Thursday, with the highly-anticipated BOJ meeting sandwiched in between the market closures. The BOJ could make negative interest rates the primary focus of its monetary policy at the conclusion of its meeting on Wednesday, when it conducts what it described as a "comprehensive" assessment of its policies. Sources have said BOJ policymakers may consider deepening negative interest rates to show its determination to maintain an ultra-easy policy bias. It unveiled the controversial policy in late January. "The resulting strength of the yen since then can't really give them a positive outlook on negative rates," said US Bank Wealth Management's Vail, adding that "the risk is for lack of any action, given the lack of consensus" among BOJ members. Rising speculation that the BOJ will stop short of the dramatic action needed to weaken its currency helped send the dollar to a six-day low against the yen of 101.56 yen on Monday. The dollar was last steady on the day at 101.90 yen. Wary of a flattening Japanese government bond (JGB) yield curve, the BOJ also could seek ways to steepen the curve, such as making its bond buying more flexible. Policymakers got a taste last week of how markets might react when investors dumped longer-dated bonds on fears the BOJ would slow its purchasing pace. "We look for the BOJ to take a more flexible stance on the time horizon for reaching its price stability target and on the pace of its JGB purchases, but expect it to refrain from further easing at this meeting," strategists at Barclays said. The euro was also steady at $1.1172, remaining well above Monday's nearly two-week low of $1.1149. The dollar index, which tracks the greenback against a basket of six major rivals, was slightly higher at 95.874, though it was shy of Friday's two-week high of 96.108. US crude oil futures slipped 0.5 percent to $43.07 a barrel, moving further away from overnight highs. Brent edged 0.3 percent lower to $45.82. Oil had rallied on Monday before settling off its highs on scepticism over Venezuela's bid to talk up a potential OPEC output freeze, and on indications US crude stockpiles had risen last week. Spot gold added 0.2 per cent to $1,315.84 an ounce, on expectations that the Fed will stand pat on rates. (Reuters)

Asia stocks waver as investors nervously await Fed, BOJ

Apple and Google engage in practices that undermine competition in the smartphone app market, Nikkei said, citing a report by Japan&#39;s Ministry of Economy, Trade and Industry. 
 
The report looked at how the two US technology giants, as well as others that control platforms through which smartphone applications are sold, use their positions of power to decide what app developers can and cannot do, Nikkei reported. 
 
Restricting what payment methods developers can accept and limiting their pricing freedom may not directly violate Japan&#39;s anti-monopoly law, but these practices lead to elimination of competitors, Nikkei reported. 
 
Japan&#39;s competition watchdog intends to investigate further and &quot;may choose to conduct on-site inspections if there is sufficient suspicion of regulation breach,&quot; Nikkei reported, citing a high-ranking official. 
 
(Reuters)

Nikkei said the report looked at how the 2 US technology giants use their positions of power to decide what app developers can and cannot

Apple and Google engage in practices that undermine competition in the smartphone app market, Nikkei said, citing a report by Japan's Ministry of Economy, Trade and Industry. The report looked at how the two US technology giants, as well as others that control platforms through which smartphone applications are sold, use their positions of power to decide what app developers can and cannot do, Nikkei reported. Restricting what payment methods developers can accept and limiting their pricing freedom may not directly violate Japan's anti-monopoly law, but these practices lead to elimination of competitors, Nikkei reported. Japan's competition watchdog intends to investigate further and "may choose to conduct on-site inspections if there is sufficient suspicion of regulation breach," Nikkei reported, citing a high-ranking official. (Reuters)

Japan report shows Apple, Google hinder app competition - Nikkei

Asian shares slipped on Monday and the dollar pulled away from last week&#39;s lows on expectations that a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming that the US central bank is gearing up to hike interest rates. 
 
Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak the following day. 
 
On Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the US economy&#39;s current strength in prepared remarks, saying the job market was close to full strength and still improving. 
 
&quot;We are close to our targets,&quot; Fischer said, though he did not directly address the timing of when the US central bank should next raise interest rates. 
 
Last week, New York Fed President William Dudley said a rate hike would be possible in September. Fischer&#39;s remarks fuelled that sense of anticipation, though interest rate futures contracts indicate that market is pricing in about 50/50 odds of an increase in December. 
 
&quot;Fischer&#39;s comments have raised some expectations in the market, particularly after Dudley&#39;s recent comments,&quot; said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.7 per cent, after losing 0.3 per cent last week. Wall Street logged modest losses on Friday, ending nearly flat for the week. 
 
Japan&#39;s Nikkei rose 0.3 per cent, taking solace from a weaker currency ahead of the Jackson Hole meeting. It had skidded 2.2 percent last week, as the dollar dipped below 100 yen. 
 
&quot;Moves in the Japanese market will likely be dominated by the dollar-yen performances after the meeting,&quot; said Masashi Oda, general manager of the strategic investment department at Sumitomo Mitsui Trust Asset Management. &quot;The market could move either way, but most people want some kind of signal at this point.&quot; 
 
The dollar was up 0.6 percent against its Japanese counterpart at 100.84 yen, while the euro was down 0.4 percent at $1.1276, pulling away from last week&#39;s eight-week high of $1.1366. 
 
The dollar index, which tracks the greenback against a basket of six major rivals, added 0.4 per cent to 94.923, pulling away from last week&#39;s low of 94.077, which was its lowest since June 24. 
 
Crude oil futures dropped, giving back some of their recent gains that propelled oil into bull market territory, after technicals had it in a bear market earlier this month. 
 
Crude futures have risen almost $10 a barrel since early August on speculation that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries will agree next month to a production freeze deal with non-OPEC producers led by Russia. 
 
US crude fell 0.9 percent to $48.09 after gaining 9 per cent last week, rising for a second straight week. Brent crude was 1.3 per cent lower at $50.20 a barrel, after gaining 8 per cent last week, rising for a third week in a row. 
 
Gold fell on Monday to its lowest in over a week as the dollar strengthened. Spot gold was down 0.5 percent at $1,334.01 an ounce.

(Reuters) 
 
&nbsp;

Fed Vice Chairman Stanley Fischer gave an upbeat assessment of the US economy's current strength, saying the job market was close to full strength and still improving

Asian shares slipped on Monday and the dollar pulled away from last week's lows on expectations that a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming that the US central bank is gearing up to hike interest rates. Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak the following day. On Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the US economy's current strength in prepared remarks, saying the job market was close to full strength and still improving. "We are close to our targets," Fischer said, though he did not directly address the timing of when the US central bank should next raise interest rates. Last week, New York Fed President William Dudley said a rate hike would be possible in September. Fischer's remarks fuelled that sense of anticipation, though interest rate futures contracts indicate that market is pricing in about 50/50 odds of an increase in December. "Fischer's comments have raised some expectations in the market, particularly after Dudley's recent comments," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7 per cent, after losing 0.3 per cent last week. Wall Street logged modest losses on Friday, ending nearly flat for the week. Japan's Nikkei rose 0.3 per cent, taking solace from a weaker currency ahead of the Jackson Hole meeting. It had skidded 2.2 percent last week, as the dollar dipped below 100 yen. "Moves in the Japanese market will likely be dominated by the dollar-yen performances after the meeting," said Masashi Oda, general manager of the strategic investment department at Sumitomo Mitsui Trust Asset Management. "The market could move either way, but most people want some kind of signal at this point." The dollar was up 0.6 percent against its Japanese counterpart at 100.84 yen, while the euro was down 0.4 percent at $1.1276, pulling away from last week's eight-week high of $1.1366. The dollar index, which tracks the greenback against a basket of six major rivals, added 0.4 per cent to 94.923, pulling away from last week's low of 94.077, which was its lowest since June 24. Crude oil futures dropped, giving back some of their recent gains that propelled oil into bull market territory, after technicals had it in a bear market earlier this month. Crude futures have risen almost $10 a barrel since early August on speculation that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries will agree next month to a production freeze deal with non-OPEC producers led by Russia. US crude fell 0.9 percent to $48.09 after gaining 9 per cent last week, rising for a second straight week. Brent crude was 1.3 per cent lower at $50.20 a barrel, after gaining 8 per cent last week, rising for a third week in a row. Gold fell on Monday to its lowest in over a week as the dollar strengthened. Spot gold was down 0.5 percent at $1,334.01 an ounce. (Reuters)

Asian shares dip, dollar rises as US Fed set to hike rates

Japan&#39;s Fair Trade Commission has raided the office of Amazon Japan on suspicion of pressuring retailers to offer products on more favourable conditions than on rival sites, the Nikkei business daily reported today. 
 
The paper did not say when the raid took place. 
 
Amazon Japan is suspected of imposing conditions on retailers such as forcing them to sell products at a lower price if they were also advertising on other online shopping sites, the Nikkei said, citing sources with knowledge of the case. 
 
A Fair Trade Commission spokesman said he could not confirm the report but added: &quot;I won&#39;t say the contents are incorrect.&quot; 
 
An Amazon Japan spokeswoman declined to comment. 
 
(Reuters)&nbsp;

The online giant is suspected of forcing retailers to sell products at lower price if they were advertising on other online shopping sites

Japan's Fair Trade Commission has raided the office of Amazon Japan on suspicion of pressuring retailers to offer products on more favourable conditions than on rival sites, the Nikkei business daily reported today. The paper did not say when the raid took place. Amazon Japan is suspected of imposing conditions on retailers such as forcing them to sell products at a lower price if they were also advertising on other online shopping sites, the Nikkei said, citing sources with knowledge of the case. A Fair Trade Commission spokesman said he could not confirm the report but added: "I won't say the contents are incorrect." An Amazon Japan spokeswoman declined to comment. (Reuters)

Amazon Japan raided over antitrust practices: Nikkei

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

Japan&#39;s Nikkei posted its biggest weekly gain in 6-1/2 years after a fifth straight winning session today, lifted by Wall Street&#39;s record run and a sagging Yen, while newly-listed Line Corp ended 32 per cent above its IPO price. 
 
Index-heavy Fast Retailing Co soared 18 per cent to its daily limit of 32,660 Yen, and contributed a hefty 197 points to the Nikkei benchmark after the Uniqlo clothing operator reported strong March-May results. 
 
The Nikkei share average rose 0.7 per cent to 16,497.85, its highest closing level since June 10. Helped by fiscal and monetary stimulus hopes, receding Brexit worries and a sliding Yen, the benchmark index gained 9.2 per cent for the week, the biggest weekly gain since December 2009. 
 
In their closely watched Tokyo debut, Line shares opened at 4,900 Yen ($46.17), 48 per cent above their IPO price of 3,300 Yen and rose to as high as 5,000 Yen after the Japanese messaging app firm raised 115 billion Yen from a dual New York-Tokyo listing. It closed at 4,345 Yen. 
 
Buoyed by the ongoing popularity of Pokemon GO, Nintendo Co soared 9.8 per cent, with its trading volume hitting a record high for an individual stock on the Tokyo Stock Exchange. 
 
The head of Niantic, the developer behind Pokemon GO, said he wanted to launch the smash-hit mobile game in about 200 markets soon. 
 
An attack in Nice, France, that killed at least 75 late on Thursday was taken in stride. 
 
The broader Topix gained 0.5 per cent to 1,317.10, with turnover hitting a three-week high of 3.1 trillion yen. 
 
The JPX-Nikkei Index 400 added 0.4 per cent to 11,830.47. 
 
(Reuters)

The Nikkei share average rose 0.7 per cent to 16,497.85, its highest closing level since June 10

Japan's Nikkei posted its biggest weekly gain in 6-1/2 years after a fifth straight winning session today, lifted by Wall Street's record run and a sagging Yen, while newly-listed Line Corp ended 32 per cent above its IPO price. Index-heavy Fast Retailing Co soared 18 per cent to its daily limit of 32,660 Yen, and contributed a hefty 197 points to the Nikkei benchmark after the Uniqlo clothing operator reported strong March-May results. The Nikkei share average rose 0.7 per cent to 16,497.85, its highest closing level since June 10. Helped by fiscal and monetary stimulus hopes, receding Brexit worries and a sliding Yen, the benchmark index gained 9.2 per cent for the week, the biggest weekly gain since December 2009. In their closely watched Tokyo debut, Line shares opened at 4,900 Yen ($46.17), 48 per cent above their IPO price of 3,300 Yen and rose to as high as 5,000 Yen after the Japanese messaging app firm raised 115 billion Yen from a dual New York-Tokyo listing. It closed at 4,345 Yen. Buoyed by the ongoing popularity of Pokemon GO, Nintendo Co soared 9.8 per cent, with its trading volume hitting a record high for an individual stock on the Tokyo Stock Exchange. The head of Niantic, the developer behind Pokemon GO, said he wanted to launch the smash-hit mobile game in about 200 markets soon. An attack in Nice, France, that killed at least 75 late on Thursday was taken in stride. The broader Topix gained 0.5 per cent to 1,317.10, with turnover hitting a three-week high of 3.1 trillion yen. The JPX-Nikkei Index 400 added 0.4 per cent to 11,830.47. (Reuters)

Japan's stock exchange Nikkei posts biggest weekly gain in over 6 years

Asian shares snapped a five-day winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak, having risen 5.6 per cent from its low after the Brexit vote on June 23. 
 
Japan&#39;s Nikkei dropped 0.9 per cent. 
 
Chinese shares rose, with the CSI 300 up 0.3 per cent, while the Shanghai Composite added 0.6 per cent, buoyed in part by a private business survey which showed growth in the services sector jumped to an 11-month high. But Hong Kong&#39;s Hang Seng retreated 0.8 percent. 
 
But trade was thin, with financial and commodities markets in the United States closed on Monday for Independence Day. 
 
In Europe, the FTSEurofirst 300 index fell 0.6 per cent, snapping its four-day winning streak, led by a 1.6 per cent decline in bank shares. 
 
Shares in Italian banks, saddled with a mountain of bad loans, dropped 3.7 per cent after Italian Prime Minister Matteo Renzi&#39;s spokesman said the country had no plans to pump public money into its banks, a move that could be seen as defying EU rules. 
 
Oil prices retreated as analysts predicted demand will weaken amid concerns about the global economic outlook. 
 
Brent crude slipped 0.7 per cent to $49.74 a barrel, after gaining 6.2 per cent over the week through Monday. 
 
US crude slipped 1.2 per cent to $48.41, eating into the 5.7 per cent advance made over the prior week. 
 
Overnight the price of precious and base metals hit multi-month highs before giving up gains as traders bet on more stimulus. 
 
Silver relinquished some of its gains from the past few sessions that had sent it to a two-year high of $21.107 an ounce on Monday. The metal, which rose 14.6 per cent over the week ended Monday, fell 1.8 per cent to $19.93. 
 
Gold also closed at a two-year high of $1,357.40 per ounce on Monday and last stood at $1,344.56. 
 
The price of copper and aluminium hit two-month highs on Monday while lead hit a four-month peak. 
 
&quot;Various commodities are rising even though there is no clear sign of sudden improvement in demand in each market,&quot; said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. 
 
&quot;Their rally seems to be driven by hopes of stimulus.&quot; 
 
Britain&#39;s vote to leave the European Union has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. 
 
Many investors expect the European Central Bank and the Bank of Japan to expand their monetary easing. Base metal prices were also bolstered by talk of stimulus in China. 
 
The euro slid 0.2 per cent to $1.11305, but retained most of the gains made since its 3 1/2-month low of $1.0912 hit in the wake of the UK referendum. 
 
The Bank of England has indicated it could provide stimulus measures to support the economy in coming months. 
 
That kept the pound close to its 31-year trough hit in the wake of the Brexit decision. 
 
Sterling dropped 0.3 per cent to $1.3253, just one per cent above its June 27 low of $1.3122. 
 
The yen strengthened 0.4 per cent to 102.16 to the dollar. 
 
The Australian dollar pulled back 0.3 per cent to $0.7515. On Monday, it shrugged off political uncertainty caused by Australia&#39;s undecided general election to rise to $0.7545, its highest level since June 24, helped by the advance in commodities. 
 
The Australian central bank is widely expected to keep interest rates unchanged at its policy announcement at 0430 GMT. 
 
(Reuters)

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak

Asian shares snapped a five-day winning streak on Tuesday as investors took stock of a rally driven by hopes that central banks will provide more stimulus to offset a likely downturn triggered by Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, but was still within reach of its June 9 peak, having risen 5.6 per cent from its low after the Brexit vote on June 23. Japan's Nikkei dropped 0.9 per cent. Chinese shares rose, with the CSI 300 up 0.3 per cent, while the Shanghai Composite added 0.6 per cent, buoyed in part by a private business survey which showed growth in the services sector jumped to an 11-month high. But Hong Kong's Hang Seng retreated 0.8 percent. But trade was thin, with financial and commodities markets in the United States closed on Monday for Independence Day. In Europe, the FTSEurofirst 300 index fell 0.6 per cent, snapping its four-day winning streak, led by a 1.6 per cent decline in bank shares. Shares in Italian banks, saddled with a mountain of bad loans, dropped 3.7 per cent after Italian Prime Minister Matteo Renzi's spokesman said the country had no plans to pump public money into its banks, a move that could be seen as defying EU rules. Oil prices retreated as analysts predicted demand will weaken amid concerns about the global economic outlook. Brent crude slipped 0.7 per cent to $49.74 a barrel, after gaining 6.2 per cent over the week through Monday. US crude slipped 1.2 per cent to $48.41, eating into the 5.7 per cent advance made over the prior week. Overnight the price of precious and base metals hit multi-month highs before giving up gains as traders bet on more stimulus. Silver relinquished some of its gains from the past few sessions that had sent it to a two-year high of $21.107 an ounce on Monday. The metal, which rose 14.6 per cent over the week ended Monday, fell 1.8 per cent to $19.93. Gold also closed at a two-year high of $1,357.40 per ounce on Monday and last stood at $1,344.56. The price of copper and aluminium hit two-month highs on Monday while lead hit a four-month peak. "Various commodities are rising even though there is no clear sign of sudden improvement in demand in each market," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. "Their rally seems to be driven by hopes of stimulus." Britain's vote to leave the European Union has ramped up the urgency for some Asian central banks to ease monetary policy, as a prolonged period of uncertainty threatens a wider downshift in trade and investment. Many investors expect the European Central Bank and the Bank of Japan to expand their monetary easing. Base metal prices were also bolstered by talk of stimulus in China. The euro slid 0.2 per cent to $1.11305, but retained most of the gains made since its 3 1/2-month low of $1.0912 hit in the wake of the UK referendum. The Bank of England has indicated it could provide stimulus measures to support the economy in coming months. That kept the pound close to its 31-year trough hit in the wake of the Brexit decision. Sterling dropped 0.3 per cent to $1.3253, just one per cent above its June 27 low of $1.3122. The yen strengthened 0.4 per cent to 102.16 to the dollar. The Australian dollar pulled back 0.3 per cent to $0.7515. On Monday, it shrugged off political uncertainty caused by Australia's undecided general election to rise to $0.7545, its highest level since June 24, helped by the advance in commodities. The Australian central bank is widely expected to keep interest rates unchanged at its policy announcement at 0430 GMT. (Reuters)

Asian shares slide as investors ponder stimulus outlook

Asian stocks slipped on Tuesday ahead of the US Federal Reserve&#39;s two-day meeting that begins later in the day&nbsp;amid growing worries that this month&#39;s referendum in Britain could see it exit the European Union. 
 
The Pound and Euro have suffered in recent sessions as economists fear a so-called Brexit would tip Europe back into recession. Voters appear divided ahead of the June 23-referendum, with the &quot;Out&quot; campaign widening its lead over the &quot;In&quot; camp, according to two opinion polls published by ICM on Monday. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent&nbsp;after Wall Street lost ground for the third straight session. 
 
Japan&#39;s Nikkei stock index skidded 1.5 per cent after tumbling 3.5 per cent on Monday. 
 
&quot;Short-term hedge funds have started betting on Brexit&nbsp;and futures players will likely dominate the market&#39;s move today,&quot; said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. 
 
The benchmark 10-year Japanese government bond yield fell to as low as minus 0.175 per cent, a fresh record, before edging back to minus 0.170 per cent. 
 
Uncertainty over this week&#39;s Federal Reserve policy meeting has weighed on markets, even while the US central bank is widely expected to leave rates unchanged after the much weaker-than-expected May non-farm payrolls report. 
 
&quot;The committee was actively preparing markets for a June-July rate hike until the release of the May employment report and is unlikely to give up its tightening bias absent additional information that labour markets are weakening,&quot; analysts at Barclays wrote. 
 
&quot;Nevertheless, the abrupt slowing in employment and falling long-run inflation expectations should raise alarm bells, and risk management concerns suggest delaying action until after the outcome of the UK referendum,&quot; they said. 
 
The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week, and are similarly expected to stand pat on policy with the Brexit vote looming. 
 
The dollar index, which tracks the greenback against a basket of six rival currencies, edged up slightly to 94.395, moving back toward the overnight high of 94.750. That was its highest since the downbeat US jobs report toppled the dollar on June 3. 
 
The perceived safe-haven Yen has benefited from investors&#39; risk aversion. The dollar was down 0.2 per cent at 105.99 Yen, moving back toward Monday&#39;s low of 105.735, its weakest level since early May. 
 
Japanese Finance Minister Taro Aso issued a fresh warning against renewed strength in the Yen, saying that he would &quot;firmly respond&quot; if rapid and speculative moves persisted in the foreign exchange market. 
 
The Euro was slightly lower at $1.1290. Against the Yen, it skidded 0.3 per cent to 119.69, moving back toward a more than three-year low plumbed in the previous session. 
 
Sterling also notched a three-year low against the Yen on Monday, and was last down 0.8 per cent at 150.35 Yen. Against the Dollar, the Pound dropped 0.6 per cent to $1.4180. 
 
Crude oil prices continued to slip, pressured by the strong US dollar and worrying economic prospects in Europe and Asia, though losses were contained by ongoing supply outages in Nigeria. 
 
Brent was down 1 per cent at $49.84 per barrel, while US crude shed 1.1 per cent to $48.34.

The Pound and Euro have both suffered over fears that UK leaving the EU will cause another European recession

Asian stocks slipped on Tuesday ahead of the US Federal Reserve's two-day meeting that begins later in the day amid growing worries that this month's referendum in Britain could see it exit the European Union. The Pound and Euro have suffered in recent sessions as economists fear a so-called Brexit would tip Europe back into recession. Voters appear divided ahead of the June 23-referendum, with the "Out" campaign widening its lead over the "In" camp, according to two opinion polls published by ICM on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent after Wall Street lost ground for the third straight session. Japan's Nikkei stock index skidded 1.5 per cent after tumbling 3.5 per cent on Monday. "Short-term hedge funds have started betting on Brexit and futures players will likely dominate the market's move today," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. The benchmark 10-year Japanese government bond yield fell to as low as minus 0.175 per cent, a fresh record, before edging back to minus 0.170 per cent. Uncertainty over this week's Federal Reserve policy meeting has weighed on markets, even while the US central bank is widely expected to leave rates unchanged after the much weaker-than-expected May non-farm payrolls report. "The committee was actively preparing markets for a June-July rate hike until the release of the May employment report and is unlikely to give up its tightening bias absent additional information that labour markets are weakening," analysts at Barclays wrote. "Nevertheless, the abrupt slowing in employment and falling long-run inflation expectations should raise alarm bells, and risk management concerns suggest delaying action until after the outcome of the UK referendum," they said. The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week, and are similarly expected to stand pat on policy with the Brexit vote looming. The dollar index, which tracks the greenback against a basket of six rival currencies, edged up slightly to 94.395, moving back toward the overnight high of 94.750. That was its highest since the downbeat US jobs report toppled the dollar on June 3. The perceived safe-haven Yen has benefited from investors' risk aversion. The dollar was down 0.2 per cent at 105.99 Yen, moving back toward Monday's low of 105.735, its weakest level since early May. Japanese Finance Minister Taro Aso issued a fresh warning against renewed strength in the Yen, saying that he would "firmly respond" if rapid and speculative moves persisted in the foreign exchange market. The Euro was slightly lower at $1.1290. Against the Yen, it skidded 0.3 per cent to 119.69, moving back toward a more than three-year low plumbed in the previous session. Sterling also notched a three-year low against the Yen on Monday, and was last down 0.8 per cent at 150.35 Yen. Against the Dollar, the Pound dropped 0.6 per cent to $1.4180. Crude oil prices continued to slip, pressured by the strong US dollar and worrying economic prospects in Europe and Asia, though losses were contained by ongoing supply outages in Nigeria. Brent was down 1 per cent at $49.84 per barrel, while US crude shed 1.1 per cent to $48.34.

Asian shares slip as Brexit vote looms

Japanese stocks suffered their biggest daily percentage drop in a month today hit by a stronger Yen, while global concerns such as the upcoming Brexit vote and worries about Japan&#39;s fiscal policies sapped risk appetite. 
 
The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. 
 
The already pressured dollar sank further against the yen after Bank of Japan board member Takehiro Sato reiterated his view that the BOJ should consider its 2 per cent inflation target as a long-term goal with room for flexibility, rather than one with a rigid deadline. 
 
That meant the BOJ should modify its current massive asset buying programme, which was intended to be a short-term move aimed at shocking the public out of its deflationary mindset. 
 
The broader Topix declined 2.2 per cent to 1,331.81 and the JPX-Nikkei Index 400 fell 2.3 per cent to 12,004.95.

The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. The upcoming Brexit vote and worries about Japan's fiscal policies play their part

Japanese stocks suffered their biggest daily percentage drop in a month today hit by a stronger Yen, while global concerns such as the upcoming Brexit vote and worries about Japan's fiscal policies sapped risk appetite. The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2. The already pressured dollar sank further against the yen after Bank of Japan board member Takehiro Sato reiterated his view that the BOJ should consider its 2 per cent inflation target as a long-term goal with room for flexibility, rather than one with a rigid deadline. That meant the BOJ should modify its current massive asset buying programme, which was intended to be a short-term move aimed at shocking the public out of its deflationary mindset. The broader Topix declined 2.2 per cent to 1,331.81 and the JPX-Nikkei Index 400 fell 2.3 per cent to 12,004.95.

Nikkei hit by strong Yen, suffers biggest drop in a month

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