Earth Science News
TRADE WARS
Asian markets drift lower ahead of key US figures, eyes on China
Asian markets drift lower ahead of key US figures, eyes on China
by AFP Staff Writers
Hong Kong (AFP) Sept 3, 2024

Asian markets retreated Tuesday as investors steel themselves for a high-stakes US jobs report at the end of the week while keeping tabs on China after fresh data stoked renewed worries over the world's number two economy.

The Federal Reserve is widely expected to cut interest rates at its next meeting this month but close attention is being paid to Friday's non-farm payrolls (NFP) figures, which are seen as playing a major role in how big the central bank will go.

However, analysts warned that traders were sensitive to a reading that is too far above or below forecasts. A miss to the upside could temper hopes for a series of reductions but a reading well below expectations would likely revive worries about a possible recession.

"This week's overload of labour data... will be crucial in breaking the debate between a 25 or 50 basis point cut in September," said Charu Chanana at Saxo Capital Markets, referring to the NFP as well as job openings and private hiring figures.

"If the data remains robust, a 25-basis-point cut is more likely. However, a weak NFP, particularly if it falls below 130,000 with another jump higher in unemployment rate, could push the rates market closer to pricing a 50-basis-point cut."

Chanana added that investors will be paying close attention to comments from New York Fed boss John Williams and governor Christopher Waller later in the week for an idea about officials' thinking.

With Wall Street closed Monday for a public holiday, there were few major catalysts to drive business and Asia slipped.

Hong Kong, Sydney, Seoul, Wellington, Taipei, Manila, Mumbai and Jakarta all fell, with Tokyo marginally lower, though there were small gains in Singapore and Bangkok.

London, Paris and Frankfurt also rose.

Nervousness over the Chinese economy was keeping buyers at bay after another round of data showed the country's manufacturing sector contracted for a fourth straight month.

A stream of indicators has highlighted weaknesses in the economy since leaders lifted painful Covid curbs at the end of 2022, but Beijing has refused to embark on the sort of big-ticket stimulus it unveiled during the global financial crisis.

With no sign that the government will give in to the calls for support, investors are left waiting nervously for the latest round of data this month, with inflation and trade due next week.

The yen strengthened after Bank of Japan chief Kazuo Ueda restateed his intention to lift interest rates again if inflation and the economy meet its forecasts.

The bank's surprise decision to hike in July, hours before the Fed indicated it was ready to begin cutting, sparked a massive unwind of the so-called "yen carry trade" in which investors used the cheap currency to buy high yielding assets like stocks.

That caused ructions in markets, compounded by the weak US jobs data.

In company news, the Hong Kong-listed shares of Cathay Pacific slipped after it announced the temporary grounding of its A350 aircraft for inspections after a "first of its type" engine component failure forced a flight to Zurich to turn back to Hong Kong on Monday.

The Hong Kong carrier said it had cancelled 24 return flights operating up until the end of Tuesday as it inspected its 48 Airbus A350 planes.

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: FLAT at 38,686.31 (close)

Hong Kong - Hang Seng Index: DOWN 0.2 percent at 17,651.49 (close)

Shanghai - Composite: DOWN 0.3 percent at 2,802.98 (close)

London - FTSE 100: UP 0.1 percent at 8,373.63

Euro/dollar: DOWN at $1.1062 from $1.1067 on Monday

Pound/dollar: DOWN at $1.3129 from $1.3147

Dollar/yen: DOWN at 146.02 yen from 147.01 yen

Euro/pound: UP at 84.25 pence from 84.18 pence

West Texas Intermediate: UP 0.5 percent at $73.90 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $77.19 per barrel

New York - Dow: Closed for public holiday

dan/mtp

CATHAY PACIFIC AIRWAYS

Airbus Group

INDEX CORP.

Dow

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Chinese property developer Vanke posts losses of $1.4 billion
Beijing (AFP) Aug 30, 2024
Chinese housing developer Vanke announced significant first-half losses on Friday, as local real estate firms contend with an industry-wide crisis compounded by declining home sales in a sluggish economy. Vanke was the second-largest developer in China last year in terms of sales, according to specialist firm CRIC. The company reported net losses of 9.9 billion yuan ($1.4 billion) in the first half of the year ending June 30, according to a filing to the Hong Kong stock exchange on Friday. ... read more

TRADE WARS
Japan to resume trial removal of Fukushima debris

Senegal navy intercepts nearly 80 migrants off coast

Japan postpones trial removal of nuclear debris from Fukushima reactor

Death toll in Thai holiday island landslide jumps to 10

TRADE WARS
New category of electrolytes discovered: glass-forming liquid electrolytes

3D imaging technology unlocks new insights in plastic waste recycling

Engineers smash rocks to gain new insights into rapid compaction of granular materials

Salsa Satellite's reentry to be observed live from the sky

TRADE WARS
Gabon electrical company schedules power cuts after failed rains

NASA JPL Developing Underwater Robots to Venture Deep Below Polar Ice

New portable tool can detect microplastics in minutes

Pacific bloc backs joint police plan, maintains Taiwan ties

TRADE WARS
Greenland's Accelerated Warming Linked to Clear-Sky Radiation and Atmospheric Dynamics

One dead, three injured in Alaska landslide

Scottish and Irish Rock Formations Offer Rare Insight into Ancient Global Ice Age

Nepal flood caused by glacial lake outburst

TRADE WARS
Floods submerge Vietnam's dragon fruit farms

CropX and CNH Industrial Collaborate on API for Enhanced Precision Farming

Enhanced Dryland Monitoring Through Combined Remote Sensing Techniques

Japanese scramble to buy beloved rice as shortages bite

TRADE WARS
Torrential rains in Niger kill 15 more people; as floods kill 25 in southern India

Typhoon Shanshan churns up Japan, up to six dead

Weeks of floods kill nearly 200 in Nigeria

24 dead in Yemen floods as search goes on: UN

TRADE WARS
Five key Chinese Belt and Road projects in Africa

African leaders in Beijing eyeing big loans and investment

Gabon marks coup that ended 55 years of dynastic rule

Rwandan army retires or sacks 1,000 officers in reshuffle

TRADE WARS
Apes to stay at home as Malaysia tweaks 'orangutan diplomacy'

Neanderthal Adaptability Unveiled at Ancient Pyrenees Site

Discovery of the Smallest Arm Bone Illuminates Evolution of Homo floresiensis

Chinese woman loses appeal for right to freeze her eggs

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.