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S&P 500 futures climbed 0.3% while Nasdaq futures rose 0.4%. Its blockbuster report last quarter fueled a rally in tech stocks and artificial intelligence hopes, propelling the S&P 500 this year. Shares of Nvidia hit an all-time high of $481.87 overnight, with options data showing traders are expecting a larger-than-usual swing in shares after the quarterly results. The Dow Jones (.DJI) fell 0.5%, the S&P 500 (.SPX) lost 0.3% and the Nasdaq Composite (.IXIC) added 0.1%. Financial shares underperformed, with the S&P 500 banks (.SPXBK) sliding 2.4%, after S&P joined Moody's to downgrade multiple regional U.S. lenders.
Persons: Issei Kato, Powell's Jackson, Nvidia NVDA.O, Stuart Humphrey, Humphrey, Dow Jones, Moody's, Treasuries, Thomas Barkin, Jerome Powell, Sam Holmes Organizations: REUTERS, Markets, Nvidia, SYDNEY, Nasdaq, Japan's Nikkei, JPMorgan, Financial, Richmond Fed, U.S ., Brent, . West Texas, Thomson Locations: Tokyo, Japan, Asia, Pacific, United States, U.S, China, Jackson Hole , Wyoming
Singapore has overtaken Japan to boast of the world's most powerful passport, the Henley Passport Index showed. This comes as investors assess private business activity surveys from Australia and Japan, as well as inflation figures from Singapore. Asia-Pacific markets are set to fall, reversing gains markets made across the board on Monday. In Australia, futures for the S&P/ASX 200 point to a lower open, at 7,059 compared with the last close of 7,121.6. Futures for Hong Kong's Hang Seng index stood at 17,655, pointing to a weaker open compared to the HSI's close of 17,791.01.
Organizations: Singapore ., Juno Bank, Japan's Nikkei, PMI Locations: Singapore, Japan, Australia, Singapore . Asia, Pacific, Chicago, Osaka
The ICC International Commerce Centre, and Hong Kong's brand new museum of visual culture, Victoria harbor, Hong Kong, China. Ucg | Universal Images Group | Getty ImagesAsia-Pacific markets largely rose even as yields of U.S. 10-year Treasury bonds hit levels not seen in over a decade. The benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007. Overnight, SoftBank Group's chip unit Arm filed for a Nasdaq listing that is expected to be the largest of the year. Futures for Hong Kong's Hang Seng index point to a rebound for the index and stood at 17,680,compared with the HSI's close of 17,623.29.
Persons: Kospi Organizations: ICC International Commerce Centre, Ucg, Getty, Nikkei, Nasdaq Locations: Victoria, Hong Kong, China, Asia, Pacific
REUTERS/Issei Kato Acquire Licensing RightsAug 23 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. After Monday's surprising resilience on Wall Street, world markets' reversion to type on Tuesday should set the tone for Asia on Wednesday - weakness in stocks, a buoyant dollar, elevated bond yields and souring investor sentiment. China's economic and financial travails remain top of mind for investors, so any sign of further incoming fiscal or monetary stimulus from Beijing will be well received. That is not something Beijing or Tokyo would do lightly, but the higher U.S. bond yields go, the more persistent the selling pressure on their respective currencies becomes. Implied yen volatility is relatively low in the yuan, and low across currency markets more broadly.
Persons: Issei Kato, Jamie McGeever, Xi Jinping, Gina Raimondo, Josie Kao Organizations: U.S ., REUTERS, Asia, Treasury, China's, Thomson, Reuters Locations: Tokyo, Japan, Singapore, Beijing, South Africa, U.S, Washington, China, Johannesburg, Australia
China's central bank cut its one-year loan prime rate Monday, while leaving its five-year rate unchanged. This was the second time China has cut this rate in three months. The PBOC left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut due to default risks from festering liquidity woes in the country's property sector. Country Garden is on the verge of default, while Evergrande filed last week for bankruptcy protection in a Manhattan court. "Hopes for a stimulus-led turnaround in economic activity largely depend on the prospect of greater fiscal support," he added.
Persons: Evergrande, China Julian Evans, Pritchard Organizations: People's Bank of China, Index, China Enterprises, CSI Locations: China, Manhattan, Hong Kong
CNBC Daily Open: Unwelcome déjà vu in U.S. markets
  + stars: | 2023-08-21 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Japan's Nikkei 225 added 0.75%, but Hong Kong's Hang Seng Index dropped 1.38%. Beleaguered Chinese real estate company Country Garden will be removed from Hong Kong's index on Sept. 4 and replaced by Sinopharm. It wasn't just U.S. markets that fell — Hong Kong's Hang Seng Index closed in bear market territory Friday.
Persons: Jay Hatfield, Jackson, Sarah Min, Jerome Powell's Organizations: CNBC, Nikkei, Global, Elon, SpaceX, Capital Management Locations: Asia, Pacific, U.S
Stock Market Today: Dow Futures Rise; Tesla Stock Gains Premarket
  + stars: | 2023-08-21 | by ( ) www.wsj.com   time to read: +1 min
The robust U.S. economy has raised expectations of higher-for-longer borrowing costs, and Treasury yields have hit decade-plus highs in recent days. Treasury yields gained. The benchmark CSI 300 lost 1.4% and Hong Kong’s Hang Seng Index fell deeper into a bear market. European natural gas prices jumped again. Labor disputes in Australia’s energy industry have driven up gas prices in Europe more than 30% in August.
Persons: Dow industrials, Brent, Jerome Powell, Jackson Organizations: Treasury, Nasdaq, CSI, Labor Locations: Europe
The headquarters of China's developer Country Garden Holdings in Foshan, in China's southern Guangdong province. Chinese real estate company Country Garden Holdings is set to be removed from Hong Kong's Hang Seng Index on Sept. 4. The index's operator said Country Garden will be replaced by pharmaceutical firm Sinopharm. Property management firm and affiliate Country Garden Services Holdings will also be removed from the Hang Seng China Enterprises Index. The Hang Seng China Enterprises Index serves as a benchmark that reflects the overall performance of mainland securities listed in Hong Kong.
Organizations: Garden Holdings, Garden Services Holdings, Hang Seng China Enterprises, Seng China Enterprises Locations: Foshan, China's, Guangdong, Hong Kong
Traders work on the floor of the New York Stock Exchange on August 16, 2023 in New York City. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. A 'perfect storm' battering marketsSurging global bond yields, a slumping Chinese economy amid a worsening property sector crisis, the possibility of higher interest rates in the U.S. — those factors combined to create "the perfect storm" that battered stock markets last week, analysts say. [PRO] 'Three' things to look out forThe week ahead will "revolve around three things," said Infrastructure Capital Management CEO Jay Hatfield.
Persons: Elon Musk, Musk, Jay Hatfield, Jackson, Sarah Min, Jerome Powell's Organizations: New York Stock Exchange, CNBC, Elon, SpaceX, Twitter, DMs, Capital Management Locations: New York City, U.S
Yields on longer-term U.S. Treasurys are rising again, putting renewed pressure on stocks. Stocks opened broadly higher but retraced some of those gains as yields climbed. Volatility in stocks this month has some traders turning to one-day options . The benchmark CSI 300 lost 1.4% and Hong Kong’s Hang Seng Index fell deeper into a bear market. China’s faltering economy remains in focus for investors, after key bank lending rates weren't cut as much as the market was expecting.
Persons: , Stocks, Ben Eisen, Rachel Louise Ensign, Jerome Powell, Jackson Organizations: Nasdaq, Dow, . Tech, Nvidia, Microsoft, Treasury, CSI, Labor Locations: U.S, Europe
Asia-Pacific markets are set to fall ahead of China's announcement for its one-year and five-year loan prime rates on Monday. The one-year and five-year LPR currently stands at 3.55% and 4.2% respectively. Reuters reported that in a poll of 35 market watchers, all participants predicted cuts to both rates, after China's central bank unexpectedly lowered the medium-term lending facility rate last week. Futures for Hong Kong's Hang Seng index stood at 17,794, pointing to a weaker open compared with its Friday close of 17,950.85. In Australia, futures for the S&P/ASX 200 also point to a lower open, at 7,070 compared with its last close of 7,148.1.
Persons: LPR Organizations: Reuters, Nikkei Locations: Asia, Pacific, Australia, Chicago, Osaka
Crude oil was set to snap a seven-week winning streak as China's slowing economic growth clouded the picture for demand. Jason Da Silva, director, global investment strategy at Arbuthnot Latham, said stock markets were paying the price for bond yields soaring as economic data from the United States smash expectations, despite all the rate hikes so far. Euro zone government bond yields also eased on Friday as concerns about the global economy nudged investors into safe-haven government bonds and further signs emerged that euro zone inflation has peaked. The U.S. dollar recovered from an earlier dip and was standing tall near a two-month top at 103.42 against its major peers. Brent crude futures eased 0.5% to $83.67 and U.S. West Texas Intermediate crude futures were off 0.4% at $79.99.
Persons: Toby Melville, bitcoin, Thursday's, Jason Da Silva, Arbuthnot Latham, Da Silva, Jerome Powell, HSI, China Evergrande, Toby Chopra, Mark Potter Organizations: London Stock Exchange, REUTERS, Companies, Jackson, Global, Nasdaq, ING, Treasury, Federal Reserve, CHINA SHADOW, HK, Japan's Nikkei, Bank of, U.S, Brent, . West Texas, Thomson Locations: Canary Wharf, London, Britain, Japan, U.S, China, United States, Jackson Hole , Wyoming, CHINA, Asia, Pacific, Hong Kong, Beijing, Bank of Japan
A man walks past a No Entry traffic sign near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. Evergrande's offshore debt restructuring involves a total of $31.7 billion, which include bonds, collaterals and repurchase obligations. Evergrande announced an offshore debt restructuring plan in March, expecting it to facilitate a gradual resumption of operations and generation of cash flow. Trading in China Evergrande shares has been suspended since March 2022. Shares of Evergrande Services (6666.HK) plunged as much as 20% on Friday, while China Evergrande New Energy Vehicle Group (0708.HK) lost as much as 17%.
Persons: Aly, Evergrande, Morgan Stanley, HSI, Clare Jim, Jonathan Stempel, Dietrich Knauth, Manya, Sumeet Chatterjee, Shri Navaratnam Organizations: China Evergrande Group, REUTERS, HONG KONG, China Evergrande, HK, Longfor, Tianji Holdings, British Virgin Islands, Co ., Evergrande Services, Energy Vehicle Group, Manya Saini, Thomson Locations: China, Shenzhen, Guangdong province, Asia, HONG, U.S, United States, Beijing, Manhattan, Hong Kong, Cayman Islands, British Virgin, Land, New York, Trading, Bengaluru
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.6% to just a whisker above a nine-month low hit the previous day. That brought the total loss for the week to 3.4% and marked the third straight week of declines for the index. Shares of Chinese property developers (.HSMPI) listed in Hong Kong fell 1.2%, after China Evergrande (3333.HK) filed for protection from creditors in a U.S. bankruptcy court. "At the start of the year China's economy was powering ahead. Brent crude futures dipped 0.2% to $83.94 per barrel and U.S. West Texas Intermediate crude futures was flat at $80.36.
Persons: Yuan, HSI, China Evergrande, Jonas Goltermann, Goltermann, Padhraic Garvey, Sam Holmes, Jacqueline Wong Organizations: SYDNEY, Nasdaq, Nikkei, Bank of, Technology, HK, Capital Economics, ING, Atlanta Federal, U.S ., U.S, Brent, . West Texas, Thomson Locations: Japan, Europe, Asia, Pacific, Bank of Japan, Hong Kong, China, U.S, Beijing, Americas
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) were up 0.1% after hitting a nine-month low the session before. It was, however, headed for a weekly loss of 2.8%, the third straight week of declines. Data early on Friday showed Japan's core inflation slowed in July, a result that is likely to support market wagers that the Bank of Japan is in no hurry to phase out monetary easing anytime soon. Chinese property giants gained 0.3%, pulling away from a nine-month low hit just a session ago. "At the start of the year China's economy was powering ahead.
Persons: HSI, China Evergrande, Jonas Goltermann, Treasuries, Padhraic Garvey, Sam Holmes Organizations: Nikkei, Bank of, HK, Capital Economics, ING, Atlanta Federal, Brent, . West Texas, Thomson Locations: Japan, SYDNEY, Asia, Pacific, Bank of Japan, China's, China, U.S, Americas
Just a month ago, Wall Street was hailing the so-called “magnificent seven” for driving the gains this year in the S&P 500. As MarketWatch notes, four of the seven (Apple, Nvidia, Meta, and Microsoft) have fallen at least 10 percent from their highs in July. Tesla, the worst of the bunch, has tumbled more than 25 percent in that period, putting it in bear territory. On Thursday, alarm bells sounded on both sides of the Atlantic as investors sold government bonds en masse, sending yields to multiyear highs. Adding to the jitters, the renminbi hit a 16-year low against the dollar on Friday, prompting emergency moves to prop up the currency.
Persons: Tesla Organizations: Nvidia, Meta, Microsoft, SpaceX, Elon Musk’s, Nomura Locations: Hong Kong, United States, China
Morning Bid: China sets sombre tone with property turmoil
  + stars: | 2023-08-18 | by ( ) www.reuters.com   time to read: +3 min
REUTERS/Staff/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Kevin BucklandChina continues to set the mood for markets, and the tone is unswervingly sombre. Such hopes may have bolstered Chinese property shares in the Asian morning, but the wider markets in China and the rest of the region were gloomy. The Hang Seng Index sank about 0.7%, with mainland Chinese, Japanese and South Korean shares all also down. The People's Bank of China was signalling its intent to shore up the yuan again today, setting the official mid-point a whopping 1,000 pips stronger than the Reuters estimate. And with U.S. benchmark yields heading for pre-financial crisis highs, the yield gap between the two economies is yawning.
Persons: Kevin Buckland China, China Evergrande, Will, Philip Lane, Kevin Buckland, Edmund Klamann Organizations: Silicon Valley Bank, Credit Suisse, REUTERS, Staff, South, People's Bank of, Fed, Bank of England, ECB, Thomson Locations: Frankfurt, Silicon, Germany, China, U.S, People's Bank of China, Will China, Japan, Tokyo, Europe, Asia
US stocks finished mixed on Friday, with the Dow completing its worst week since March. The S&P 500 and Nasdaq Composite both notched their third consecutive week of declines. Meanwhile in Hong Kong, the Hang Seng Index closed in bear market territory amid China concerns. The Dow lost more than 2% for the week, completing its worst week since March, while the S&P 500 and Nasdaq Composite both saw their third straight losing weeks. Meanwhile in Hong Kong, the Hang Seng Index entered bear market territory as traders have been responding to fears about China's economy and property sector.
Persons: China Evergrande Organizations: Dow, Nasdaq, Service, Treasury, Federal Reserve, Dow Jones Locations: Hong Kong, China, Wall, Silicon
Hong Kong's benchmark Hang Seng Index closed 20% lower from its most recent high on Friday. That puts it in bear market territory, with investors growing cautious on Chinese investments. China's economy is facing a troubled property market, deflation, and weak trade. Growing concerns around China's ailing economy have made investors more cautious around Chinese investments, and the index has declined 5.9% since last Friday. Most notably, however, is the unstable property market, which just saw Evergrande file for Chapter 15 bankruptcy, as well as two missed payments from developer Country Garden Holdings.
Persons: Dow Organizations: Service, Hong, HSBC, Bloomberg, Traders, Country Garden Holdings, Zhongrong, Nasdaq Locations: Wall, Silicon, Beijing
Japan ,Tokyo City skyline, Tokyo Tower. (Photo by: Dukas/Universal Images Group via Getty Images) Prisma By Dukas | Universal Images Group | Getty ImagesAsia-Pacific markets are set to fall on Friday ahead of Japan's July inflation data and fresh blows to China's real estate sector. Embattled Chinese real estate giant Evergrande has reportedly filed for bankruptcy protection in a U.S bankruptcy court. Futures for Hong Kong's Hang Seng index stood at 18,147, pointing to a weaker open compared to the HSI's close of 18,326.63. In Australia, futures for the S&P/ASX 200 also point to a lower open, at 7,067 compared to the last close of 7,146.
Organizations: Getty, Dukas, Reuters, Futures, Nikkei Locations: Japan, Tokyo City, Tokyo, Asia, Pacific, U.S, United States, Chicago, Osaka, Australia
Hong Kong's benchmark stock index closed in bear market territory, down 2.1% in the Friday session and more than 20% below the highs of January, as uncertainty over China's property market and growth prospects erase early-year gains. The further losses on Friday came after news that embattled Chinese real estate giant Evergrande had filed for bankruptcy protection in a U.S. court. Friday's plunge for the Hang Seng index saw some of the region's largest companies close in the red, with Tencent down 2.34%, Alibaba down 3.44% and HSBC shedding 1.1%. A bear market is a prolonged downturn in prices that sees a broad market index drop at least 20% from its most recent peak. The Hang Seng index closed at 17,950.85 on Friday, down 20.88% from the 22,688.9 of Jan. 27.
Persons: Evergrande Organizations: HSBC Locations: Central, Hong Kong, U.S
"The application is a normal procedure for the offshore debt restructuring and does not involve (a) bankruptcy petition," it said in the filing, adding it is pushing forward with its offshore debt restructuring. Evergrande's offshore debt restructuring involves a total of $31.7 billion, which include bonds, collateral and repurchase obligations. A man walks past a No Entry traffic sign near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. China's economic and property woes and the absence of concrete stimulus steps have sent a chill through global markets. "The China property sector is like a black hole, so many developers have been dragged into it since two years ago after Evergrande," said Winner Zone Asset Management CEO and CIO Alan Luk.
Persons: Evergrande, Aly, Nomura, HSI, Alan Luk, Clare Jim, Jonathan Stempel, Dietrich Knauth, Manya, Sumeet Chatterjee, Shri Navaratnam, Kim Coghill Organizations: HONG KONG, China Evergrande, HK, U.S, Hong, British Virgin Islands, China Evergrande Group, REUTERS, Zhongrong International Trust Co, Longfor, Asset Management, Manya Saini, Thomson Locations: China, Asia, HONG, U.S, United States, Hong Kong, British Virgin, New York, Shenzhen, Guangdong province, Beijing, Bengaluru
Stocks in Hong Kong entered a bear market on Friday, down 21 percent from their high near the start of the year, as investors grew increasingly worried that the deteriorating condition of China’s real estate sector could spill over into the broader economy. The slump in the Hang Seng Index, which is made up mostly of companies from the mainland, comes as China’s economy confronts weakening growth. After three years of harsh Covid restrictions, foreign investment is down, consumers are spending less and the housing market is in turmoil. The Hang Seng fell just over 2 percent on Friday, and about 6 percent for the week. Bear markets, when stocks drop at least 20 percent from their most recent peak, are a relatively rare signal that investors view the economy with serious pessimism.
Persons: Seng Locations: Hong Kong
Asia markets fall further as Fed hints at higher rates
  + stars: | 2023-08-17 | by ( Lim Hui Jie | ) www.cnbc.com   time to read: +1 min
Asia-Pacific markets extended their losses on Thursday after the U.S. Federal Reserve's July minutes showed inflation concerns lingered, which could lead to more rate hikes. The Federal Funds rate currently stands at 5.25% to 5.5%, the highest in 22 years. In Australia, the S&P/ASX 200 opened down 0.15%, ahead of its unemployment rate for July. Japan's Nikkei 225 slid 0.45% and the Topic was 0.38% lower, as the country saw its trade balance slip into a deficit in July from a surplus in June. Futures for Hong Kong's Hang Seng index stood at 18,064, pointing to a weaker open compared to the HSI's close of 18,329.3.
Organizations: U.S, U.S . Federal, Japan's Nikkei Locations: Asia, Pacific, U.S ., Australia, South Korea
Losses were broad-based across Asia Pacific on Thursday, with Japan's Nikkei (.N225) and Australia's S&P/ASX 200 index (.AXJO) down 1%. "Some participants" cited the risks to the economy of pushing rates too far even as "most" policymakers continued to prioritise the battle against inflation. The U.S. central bank hiked rates by 25 basis points at the July meeting after standing pat in June. The rising yields lifted the dollar, with the dollar index , which measures the U.S. currency against six rivals, touching a two-month peak of 103.58 as investors sought safety. Worries over China and the trajectory of the U.S. interest rates also rattled the commodities market, with oil prices dropping for the fourth straight session.
Persons: Issei Kato, HSI, Taylor Nugent, Jerome Powell, Shunichi Suzuki, Brent, Ankur Banerjee, Muralikumar Organizations: REUTERS, Rights, Federal Reserve, Asia Pacific, Japan's Nikkei, NAB, ING, Finance, Thomson Locations: Tokyo, Japan, Asia, Pacific, China, U.S
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