- Hong Kong stocks resume rally, oil dips after Middle East-fuelled surge
- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
RBGPF | 100% | 58.93 | $ | |
RYCEF | 1.15% | 6.98 | $ | |
CMSC | -0.16% | 24.74 | $ | |
VOD | -0.52% | 9.69 | $ | |
RELX | -1.46% | 46.61 | $ | |
GSK | -2.81% | 38.37 | $ | |
NGG | -2.7% | 66.97 | $ | |
RIO | -1.42% | 69.83 | $ | |
CMSD | -0.16% | 24.89 | $ | |
SCS | -1.98% | 12.62 | $ | |
BTI | -2.45% | 35.11 | $ | |
AZN | -2.12% | 77.93 | $ | |
BCC | -0.9% | 138.29 | $ | |
JRI | -0.6% | 13.3 | $ | |
BCE | -1.77% | 33.84 | $ | |
BP | 0.28% | 32.46 | $ |
Markets mixed as US contraction lifts bets on slower Fed hikes
Asian stocks were mixed Friday after another contraction in the US economy reinforced recession fears but boosted expectations that the Federal Reserve will slow its pace of interest rate hikes.
After an extended period of pessimism on trading floors fuelled by soaring inflation and the US central bank's monetary tightening campaign, investors are beginning to speculate that the market may have reached its nadir.
The world's top economy shrank 0.9 percent in April-June following a 1.6 percent retreat in the first quarter as it was buffeted by the four-decade-high spike in inflation and rising borrowing costs.
But the reading was taken as a sign of good news, as it could give the Fed room to take its foot off the pedal, with Treasury yields -- considered a barometer of future interest rates -- easing.
Officials are expected to continue lifting rates, but analysts estimate they will announce a 50-basis-point rise in September, compared with 75 at the past two meetings.
And some analysts said the quick, sharp pace of increases would allow the bank to begin cutting sooner in 2023. Others said any recession would likely only be shallow and short.
The news saw all three main indexes on Wall Street rally more than one percent, with tech firms -- which are susceptible to higher rates -- leading the way.
The gains extended a rally Wednesday that came after Fed chief Jerome Powell hinted that the bank could start to take it easier in its tightening.
Most of Asia followed suit in early trade but struggled to maintain the momentum as the day progressed.
Tokyo, Shanghai, Singapore and Manila all fell. Hong Kong was also buffeted by a tech selloff led by Alibaba as traders grow worried about its upcoming earnings report.
Sydney, Seoul, Mumbai, Taipei, Jakarta and Wellington rose.
- Losing steam -
Paris rose more than one percent at the open after data showed the French economy grew more than expected in the second quarter thanks to a bounce in exports.
London and Frankfurt were also up.
The prospect of US rates not rising as fast as previously expected hit the dollar, which has soared in recent months against most other currencies.
The greenback dropped below 133 yen Thursday for the first time since mid-June, having hit a 24-year high of 139.39 yen just two weeks ago.
A second successive contraction is widely considered a technical recession, though it is not officially considered so in the United States until identified as such by the National Bureau of Economic Research.
But while debate rages over that issue, the consensus is that the economy is struggling.
"The more important point is that the economy has quickly lost steam in the face of four-decade high inflation, rapidly rising borrowing costs, and a general tightening in financial conditions," wrote Sal Guatieri, of BMO Capital Markets.
China is also struggling, hit by painful Covid-induced lockdowns in major cities including Shanghai and Beijing that have hammered all sectors and supply chains.
On Thursday, the country's leadership offered a dour assessment of the world's number two economy but presented no plans to stimulate growth, leaving traders disappointed.
- Key figures at around 0720 GMT -
Tokyo - Nikkei 225: DOWN 0.1 percent at 27,801.64 (close)
Hong Kong - Hang Seng Index: DOWN 2.5 percent at 20,112.34
Shanghai - Composite: DOWN 0.9 percent at 3,253.24 (close)
London - FTSE 100: UP 0.1 percent at 7,353.02
Dollar/yen: DOWN at 132.72 yen from 134.25 yen Thursday
Euro/dollar: UP at $1.0236 from $1.0197
Pound/dollar: UP at $1.2225 from $1.2177
Euro/pound: UP at 83.73 pence from 83.70 pence
West Texas Intermediate: UP 0.7 percent at $97.08 per barrel
Brent North Sea crude: DOWN 0.1 percent at $107.01 per barrel
New York - Dow: UP 1.0 percent at 32,529.63 (close)
Ng.A.Adebayo--CPN