Labour leader Jeremy Corbyn has been asked by Theresa May to work with her on breaking an impasse in parliament just over a week before Britain is meant to be leaving the European Union. (Photo: AFP/Stefan Rousseau) The pound extended gains after British Prime Minister Theresa May said she would look for another Brexit delay and softened her position on the issue to avert a calamitous no-deal divorce from the European Union. While Wall Street provided a flat lead, Asian investors built on recent gains, with optimism given an extra boost by a report in the Financial Times saying Beijing and Washington were on course for a historic agreement. Expectations that the world's top two economies will eventually sign a deal has been a key driver of a global equities rally this year and the FT article adds to the general sense of hope. It comes after better-than-expected factory data out of China and the US that eased worries about growth in the global economy, while a dovish turn from … [Read more...] about Asia markets extend winning run on fresh China US trade hopes
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SE Asia Stocks: Most recover on trade truce hopes; Thailand, Vietnam down
The trading sentiment in Asia bolstered after U.S. Treasury Secretary Steven Mnuchin told Bloomberg in an interview on Tuesday that United States and China are planning to hold meetings in January to "document an agreement" on trade. "Positive signals on the trade war front are stabilising risk in Asia," Stephen Innes, head of trading for Asia-Pacific at OANDA, said in a note. "...while trade remains a work in progress, investors are at least taking some comfort that a resolution roadmap could be in place as soon as March 2019," he added. The sentiment appeared to slightly improve, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4 percent in early trade. But investors remained cautious amid speculation that the U.S. Federal Reserve may end its tightening cycle in its policy meeting scheduled to conclude later on Wednesday, after a sharp fall in oil prices and U.S. President Donald Trump's call to … [Read more...] about SE Asia Stocks: Most recover on trade truce hopes; Thailand, Vietnam down
Energy firms track plunge in oil, Asia markets temper losses
Oil prices have plunged since hitting four-year highs in early October. (Photo: AFP/David McNew) Nissan recovered marginally after France and Japan sought to reassure on the future of its tie-up with Renault following the arrest of head Carlos Ghosn on Monday, although Mitsubishi extended its drop. While investors in all sectors are essentially in selling mode of late, firms linked to the oil industry are among the worst hit as the price of crude continues to plunge on concerns about demand and high production. The commodity took another battering on Tuesday, with both main contracts down more than six per cent following another Wall Street sell-off and as traders fret that Saudi Arabia might not deliver on planned production cuts. Donald Trump's support for Riyadh in the case of murdered journalist Jamal Khashoggi has been taken by some observers as a move to prevent them from lowering output at the December meeting of OPEC and non-OPEC members. "At the heart of the matter is the … [Read more...] about Energy firms track plunge in oil, Asia markets temper losses
Energy firms dive with oil in Asia, most regional markets retreat
The pound has won some support from news Theresa May has agreed a draft Brexit deal, though she now faces a number of hurdles before passing it through parliament. (Photo: AFP/Oli Scarff) The pound enjoyed some support after Britain and the European Union said they had reached a draft Brexit deal, though observers were cautious as it faces a number of hurdles before being given the green light. Both main crude contracts plunged Tuesday - Brent lost 6.6 per cent and WTI 7.1 per cent - on oversupply fears just as demand falters in the face of the China-US trade war and easing economic growth. With prices now down more than a fifth from their four-year highs seen in early October, oil kingpin Saudi Arabia this week said it will cut output. The announcement fuelled an initial surge in the crude market before a Donald Trump tweet calling for it to keep prices low sent the commodity plunging. The selling continued on Tuesday and then Wednesday in Asia after OPEC trimmed its outlook for … [Read more...] about Energy firms dive with oil in Asia, most regional markets retreat
Asian market sell off picks up pace, Shanghai tumbles
The People's Bank of China cut the amount of cash lenders must keep in reserve in a bid to support the stuttering economy. (Photo: AFP/Mark Ralston) Shanghai led the retreat as mainland investors returned from a week-long break, during which time China was accused of using microchips in computer equipment sold in the US as part of a drive to steal technology secrets. The losses in China also came despite a cut in the amount of cash the country's commercial banks must keep in reserve, which its central bank says will pump more than US$100 billion into financial markets. Dealers were given a negative lead from Wall Street, where all three main indexes ended with sharp losses following news that unemployment had hit a 49-year low and wages saw healthy gains. The report, which followed a slew of strong indicators on the world's top economy, saw yields on benchmark 10-year Treasuries rise for the third straight day, hitting a fresh seven-year high with the Fed expected to stick to its … [Read more...] about Asian market sell off picks up pace, Shanghai tumbles