sunny.png
Tuesday July 5th, 2022 5:29PM

Asian markets mostly lower ahead of US holiday

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Asian markets were mostly lower in cautious trading Monday ahead of a federal holiday in the U.S.

Worries over inflation and risks of a global recession from central bank efforts to bring it under control appeared to outweigh Wall Street’s positive close on Friday.

The price of the world’s most popular cryptocurrency slipped back below the psychological benchmark of $20,000 early Monday after rising to $20,742. Bitcoin had plunged nearly 10% to under $18,600 during the weekend, according to the cryptocurrency news site CoinDesk.

As of mid-afternoon in Tokyo, it was at $19,837.14.

Shares fell in most major Asian markets but edged higher in China, which in a widely expected move, kept its 1-year and 5-year loan prime rates unchanged.

Given China's struggle to bring outbreaks under control and its already faltering economy, “rate cuts in the coming months are still likely as we expect the economic recovery to be slow under the COVID-zero policy. After this rate pause, the government should hand out more fiscal stimulus,” Iris Pang, chief economist Greater China at ING, said in a commentary.

Japan's benchmark Nikkei 225 slid 1.7% in morning trading to 25,534.68. Australia's S&P/ASX 200 slipped 0.7% to 6,432.00. South Korea's Kospi dropped 2.1% to 2,389.69. Hong Kong's Hang Seng edged up 0.2% to 21,109.16, while the Shanghai Composite was little changed, inching up less than 0.1% to 3,317.69.

Two of the world's three biggest economies, China and Japan, are not engaged in raising interest rates.

Last week, Japan's central bank stuck to its near zero interest rate policy, although comments from Bank of Japan Gov. Haruhiko Kuroda were closed watched for hints about what Tokyo might do about the weakening yen.

A weaker currency can help the earnings of Japan's exporting giants like Toyota Motor Corp., but it can also signal a fragile economy.

Kuroda expressed some concerns about the low yen and its impact on Japanese companies, but said he had no immediate plans to change monetary policy. That means a continued growing gap between interest rates and yields on investment in Japan and the U.S., and continued dollar strength.

“It is inescapable that the U.S. dollar must go significantly higher, while there is the emperor in place, but once the clothes are seen lacking, down it will come. This could be one of the greatest market roller-coaster opportunities of any market of all time,” said Clifford Bennett, chief economist at ACY Securities, in a commentary.

The U.S. dollar was trading at 134.88 Japanese yen early Monday, down from 134.96 yen. The euro cost $1.0526, up from $1.0498.

U.S. markets are closed Monday in observance of the Juneteenth holiday. But the testimony on monetary policy by Federal Reserve Chair Jerome Powell before the Senate Banking Committee and the House Financial Services Panel is set for later this week.

Wall Street closed out a difficult meandering week, slightly higher. The S&P 500 rose 0.2% to 3,674.84. The Dow Jones Industrial Average dipped 0.1% to 29,888.78, while the Nasdaq composite climbed 1.4%, to 10,798.35.

The Russell 2000 index of smaller stocks rose 1%, to 1,665.69.

Markets are bracing for a world with higher interest rates, led by the move at the Federal Reserve. Higher rates can bring down inflation, but they also risk a recession by slowing the economy and push down on prices for stocks, bonds, cryptocurrencies and other investments.

Last week, the Fed hiked its key short-term interest rate by triple the usual amount for its biggest increase since 1994. It could consider another such mega-hike at its next meeting in July. A report last week on the U.S. economy also showed that industrial production was weaker last month than expected.

The yield on the 10-year Treasury pulled back to 3.23% Friday from 3.30% late Thursday.

In energy trading, benchmark U.S. crude lost 36 cents to $109.20 a barrel. Brent crude, the international standard, fell 42 cents to $112.70 a barrel.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
New body armor rules in NY miss vest worn by Buffalo killer
A new law barring sales of bullet-resistant vests to most civilians in New York doesn't cover the type of armor worn by the gunman who killed 10 people at a Buffalo supermarket
1:42AM ( 16 minutes ago )
Russian journalist sells Nobel Prize for Ukrainian children
What is the price of peace
1:18AM ( 40 minutes ago )
Australian leader refuses to publicly intervene on Assange
Australian Prime Minister Anthony Albanese has rejected calls for him to publicly demand the United States drop its prosecution of WikiLeaks founder and Australian citizen Julian Assange
1:18AM ( 40 minutes ago )
Associated Press (AP)
Ex-rebel wins runoff to be Colombia's 1st leftist president
Former rebel Gustavo Petro has narrowly won a runoff election in Colombia over a political outsider millionaire, ushering in a new era of politics by becoming the country’s first leftist president
11:00PM ( 2 hours ago )
Ex-rebel in slim win to be Colombia's 1st leftist president
Former rebel Gustavo Petro has narrowly won a runoff election in Colombia over a political outsider millionaire, ushering in a new era of politics by becoming the country’s first leftist president
9:59PM ( 3 hours ago )
Juneteenth celebrations emphasize ending racial disparities
A year after Juneteenth became a federal holiday in the U.S., people gathered this weekend at events filled with music, food and fireworks
9:23PM ( 4 hours ago )
AP National News
Fitzpatrick a winner again at Brookline as US Open champion
Matt Fitzpatrick is a champion again at The Country Club
9:05PM ( 4 hours ago )
World swimming bans transgender athletes from women's events
World swimming’s governing body has effectively banned transgender women from competing in women’s events
7:57PM ( 6 hours ago )
Ex-rebel in slim win to be Colombia's1st leftist president
Former rebel Gustavo Petro has narrowly won a runoff election in Colombia over a political outsider millionaire, ushering in a new era of politics by becoming the country’s first leftist president
7:30PM ( 6 hours ago )
AP Online National News
Ex-rebel holds slim lead in Colombia's presidential runoff
Former leftist rebel Gustavo Petro holds a slim lead in Colombia’s presidential runoff election Sunday over a real estate millionaire, and is on the cusp of ushering in a new era of politics in the South American country
6:13PM ( 7 hours ago )
Church shooting survivor: Gunman 'disengaged,' sat alone
A witness to a shooting that killed three at an Alabama church says  the gunman had sat by himself, drinking liquor and rejecting offers to join the others gathered at the potluck dinner
6:01PM ( 7 hours ago )
Reports: Paul Haggis detained in Italy in sex assault case
Italian news reports are quoting prosecutors in southern Italy as saying film director Paul Haggis has been detained for investigation of the alleged sexual assault of a woman
5:41PM ( 8 hours ago )
Top General short headlines
Bitcoin inches up above psychological threshold of $20,000
The price of a bitcoin has inched above $20,000 after the broader crypto selloff dragged it below the psychological threshold a day earlier
4:10PM ( 9 hours ago )
Greek coast guard rescues 108 migrants; 4 missing
Greek authorities say they have rescued 108 migrants from a sailboat that was found rudderless and leaking water in the Aegean Sea in near gale force winds
4:00PM ( 9 hours ago )
Prada mixes nostalgia and grunge for summer 2023 menswear
Miuccia Prada and Raf Simons offered a nostalgia play for next season, mixing gingham, coming from the feminine world, with masculine menswear
3:54PM ( 10 hours ago )
AP Business
Bitcoin drops below $20,000 as crypto selloff quickens
Bitcoin has fallen below $20,000 for the first time since late 2020, in a fresh sign that the selloff in cryptocurrencies is deepening
6:18PM ( 1 day ago )
Big crowds take to London streets to protest soaring costs
Thousands of people have marched through central London in a protest over the soaring cost of living in Britain
11:34AM ( 1 day ago )
Biden, mulling tariff decision, will talk soon to China's Xi
President Joe Biden says he plans to talk to Chinese leader Xi Jinping soon as he considers whether to lift some Trump-era tariffs on Chinese goods
11:11AM ( 1 day ago )
AP Business - Economy
Stocks edge higher on Wall Street at close of a brutal week
Stocks edged higher in afternoon trading on Wall Street Friday at the end of a brutal week
1:35PM ( 2 days ago )
Stocks hold steady on Wall Street at close of a brutal week
Stocks are holding steady in afternoon trading on Wall Street Friday at the end of a brutal week
12:08PM ( 2 days ago )
Wall Street opens gingerly higher at end of a brutal week
Stocks are opening gingerly higher on Wall Street Friday at the end of a brutal week
9:44AM ( 2 days ago )
AP Business - Financial Markets
Germany to limit use of gas for electricity production
Germany’s economy minister says the country will limit the use of gas for electricity production amid concerns about possible shortages caused by a reduction in supplies from Russia
9:08AM ( 16 hours ago )
Court rejects Trump-era EPA finding that weed killer safe
A federal appeals court has rejected a Trump administration finding that the active ingredient in the weed killer Roundup does not pose a serious health risk and is “not likely” to cause cancer in humans
9:37PM ( 2 days ago )
FDA authorizes 1st COVID-19 shots for infants, preschoolers
U.S. regulators have authorized the first COVID-19 shots for infants and preschoolers
5:09PM ( 2 days ago )
AP Business - Industries
Fed's aggressive rate hikes raise likelihood of a recession
Federal Reserve Chair Jerome Powell has pledged to do whatever it takes to curb inflation, now raging at a four-decade high and defying the Fed’s efforts so far to tame it
5:34PM ( 3 days ago )
Stocks tumble on economy fears after briefest of reprieves
Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore
3:10PM ( 3 days ago )
Wall Street gets back to tumbling after 1-day reprieve
Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore
1:35PM ( 3 days ago )
AP Business - Financial Services
New body armor rules in NY miss vest worn by Buffalo killer
A new law barring sales of bullet-resistant vests to most civilians in New York doesn't cover the type of armor worn by the gunman who killed 10 people at a Buffalo supermarket
1:42AM ( 17 minutes ago )
Russian journalist sells Nobel Prize for Ukrainian children
What is the price of peace
1:18AM ( 40 minutes ago )
Australian leader refuses to publicly intervene on Assange
Australian Prime Minister Anthony Albanese has rejected calls for him to publicly demand the United States drop its prosecution of WikiLeaks founder and Australian citizen Julian Assange
1:18AM ( 40 minutes ago )
EXPLAINER: What is Title IX and what impact has it had?
Title IX is best known for its role in gender equity in athletics and sexual harassment on campuses
12:21AM ( 1 hour ago )
Unlikely duo: Pennsylvania Democrats aim for united front
The fate of the Democratic Party is intertwined in a pair of Pennsylvania elections that’ll be closely watched this year
12:16AM ( 1 hour ago )