World shares are mixed after a Japanese government bond auction falls flat
A dealer watches computer monitors at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, May 28, 2025. (AP Photo/Lee Jin-man)
World shares are mixed after a closely watched auction of 40-year Japanese government bonds fell flat as worries mount over growing levels of debt.
In early European trading, Germany's DAX gained 0.2 per cent to 24,283.71, while the CAC 40 in Paris was up 0.3 per cent at 7,847.20. Britain's FTSE 100 rose 0.2 per cent to 8,794.80.
The future for the S&P 500 slipped 0.1 per cent while that for the Dow Jones Industrial Average was down 0.2 per cent.
In Asian trading, Japan's Nikkei 225 index was nearly unchanged at 37,722.40.
Government debt and bonds have become an increasingly important issue for markets in wealthy countries in recent weeks as yields have climbed around the world.
Wednesday's auction of about 500 billion yen (about US$3.5 billion) drew a bid-to-cover ratio of just 2.21, the lowest level since July 2024. The ratio of the amount of bonds offered versus the amount of bids received is seen as a measure of demand. When demand is slack, bond prices fall and yields rise.
After years of pumping money into the economy through hefty bond purchases, Japan's central bank has been gradually cutting back, undermining demand at a time when other institutional investors also have been buying fewer JGBs.
A recent auction of 20-year JGBs also found relatively few buyers. But analysts said worries eased a bit after Japan's Finance Ministry recently sent a questionnaire to bond investors that they took as a signal of efforts to calm the market by suggesting it might issue less debt.
When yields softened earlier in the week in Japan, the bond market rallied, Thomas Matthews of Capital Economics said in a report. The 'somewhat soft 40-year JGB auction seems to have contributed to a slight souring of the global mood,' he said.
The dollar fell to 144.16 Japanese yen from 144.36 yen. The euro rose to $1.1322 from $1.1329.
Elsewhere in the region, Hong Kong's Hang Seng index lost 0.5 per cent to 23,258.31, while the Shanghai Composite index ended flat at 3,393.93.
Australia's S&P/ASX 200 edged 0.1 per cent higher to 8,396.90. The S&P/NZX 50 in New Zealand fell 1.8 per cent after the central bank cut its benchmark interest rate by 0.25 percentage points, as expected, to 3.25 per cent.
In South Korea, the Kospi jumped 1.3 per cent to 2,670.15, helped by a global rally in technology shares. Samsung Electronics' shares climbed 3.7 per cent while SK Hynix was up 2.7 per cent.
In Taiwan, the Taiex added 0.1 per cent. India's Sensex slipped 0.1 per cent.
Oil prices rose after the U.S. authorization to Chevron to export crude from Venezuela expired Tuesday. The Trump Administration has been trying to wind down U.S. reliance on Venezuelan energy.
U.S. benchmark crude oil gained 45 cents to $61.35 per barrel. Brent crude, the international standard, was up 42 cents at $63.99 per barrel.
On Tuesday, Wall Street resumed its roller coaster ride created by U.S. President Donald Trump's trade policies after he delayed his threatened 50 per cent tariff on imports from the European Union. U.S. markets were closed for Memorial Day on Monday, and the S&P 500 leaped 2.1 per cent in its first trading since Trump's announcement.
The Dow Jones Industrial Average added 1.8 per cent and the Nasdaq composite gained 2.5 per cent.
Nvidia rallied 3.2 per cent and was the strongest single force driving the S&P 500 higher ahead of its profit report coming on Wednesday. It's the last to report this quarter among the 'Magnificent Seven' Big Tech companies.
Talks with the EU have raised hopes the United States can reach a deal with one of its largest trading partners, helping to keep global commerce moving and avoiding a possible recession. Trump declared a similar pause on his stiff tariffs for products coming from China earlier this month, which launched an even bigger rally on Wall Street at the time.
Surveys have shown U.S. consumers are concerned over the economy's prospects and where inflation may be heading because of tariffs.
However, a report Tuesday by the Conference Board said confidence among U.S. consumers has improved more in May than economists expected.
Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.47 per cent early Wednesday from 4.51 per cent late Friday. It had risen last week, in part because of worries about the U.S. government's rapidly increasing debt.
Elaine Kurtenbach, The Associated Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
an hour ago
- CTV News
Drowning in debt? 7 steps to dig yourself out
Paying off debt can feel like an uphill battle. In his column on personal finance contributor Christopher Liew explains how to assess and prioritize your debt, and shares strategies to help you pay it off more quickly (Getty Images) Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. If you feel overwhelmed by debt, you're not alone. With rising interest rates, ballooning living costs and everyday expenses piling up, it can seem like an uphill battle to keep up. One missed payment turns into two, you take on extra debt, you start getting collection calls, and then a couple of unexpected life events and expenses later, you find yourself in a hole that just keeps getting deeper. The good news is that you can take control, one step at a time. You just have to have a bit of patience and consistency with the right strategies. While getting out of debt certainly doesn't happen overnight, it is achievable. How to get control of your finances In the first quarter of 2025, over 1.4 million Canadians missed at least one credit card payment, according to a report from Equifax Canada. While missing a single payment isn't the end of the world, it's typically a sign you could be beginning to fall down a slippery slope. That said, whether you're in a few thousand or tens of thousands of dollars in debt, here are some simple strategies to help you get out of the hole and get back on top. Step 1: Separate and prioritize your debts I tend to be a visual person, especially when it comes to finances. I recommend taking a big sheet of paper or a whiteboard, or a spreadsheet, and writing down: Each creditor/debt you owe and how much you have left Your payment amounts and dates How many missed payments you have with each account Going one step further, write down the interest rate for each debt that you have. This will help you identify the ones that need to be prioritized. Two common debt repayment strategies are the snowball method and the avalanche method. The snowball method suggests prioritizing and paying off small debts first, allowing you to build on small successes. This method is great if you have multiple smaller loans you're dealing with, and the sense of paying debts off one-by-one can be a great morale booster. The avalanche method suggests prioritizing larger, higher-interest debts first, before moving onto your smaller debts. This method can be great for those who appreciate delayed gratification or want to feel like they're making a meaningful impact on their bigger problems. Both strategies are solid, but which one you choose depends a lot on your current situation and what's easiest for you to stick with. Step 2: Stop adding to your debt Once you have a clear picture of your debts, you need to stop adding to them. With the exception of debt consolidation, make a commitment to stop taking out loans, using buy-now-pay-later programs, or racking up your credit cardt. At the same time, you should also start hacking your budget by finding small ways you can save on everyday expenses. Even something as simple as not drinking a $5 coffee everyday could save you over $150 per month, and that money could go straight towards paying off your debt. Step 3: Consolidate or refinance high-interest debts High-interest debts can be a major problem and are often associated with credit cards, personal loans, or payday loans. These debts often have interest payments that are so high that 80 to 90 per cent of your minimum monthly payment goes purely to interest, making it nearly impossible to make a dent in the principal balance. For these loans, I often recommend applying for a debt consolidation loan. Banks and lenders often offer consolidation loans, which allow you to combine multiple higher-interest debts into one large, lower-interest loan. This can do two important things: Lower your overall interest rate on debt Simplify your multiple monthly payments into a single larger payment Additionally, a consolidation loan could help boost your credit score, as your credit will now show that you've successfully paid off several smaller loans. Just make sure that you continue to make timely payments with the new consolidation loan. If you only have one problematic loan (such as a higher-interest auto loan, for example), your best bet may be to simply refinance the loan at a lower interest rate. As long as you have a good payment history on your existing loan, it usually isn't hard to find another lender willing to pay off the loan and give you a lower interest rate or lower payments. Step 4: Create payment goals and deadlines Like the old saying goes, a ship with no destination will never make its way to port. Without clear goals and deadlines, your debt repayment plan could fail before you begin to make any real progress. As you begin to create an action plan, I recommend creating goals and deadlines for each specific debt. This will help you stay motivated month by month, as you make consistent progress towards each goal. Step 5: Negotiate more affordable payments In the event that you're unable to refinance or consolidate certain debts or if you find yourself missing payments more often than you'd like, consider negotiating a more affordable payment. Often, credit card companies offer hardship repayment plans, which will give you an extended period of time where you'll be allowed to make smaller, more affordable payments. Your interest rate may also be temporarily lowered during this period. This can be a game changer, as it gives you time to pay off smaller debts and free up more money to pay towards higher-interest debts. To get approved for a lower payment, though, you may need to provide a good reason, such as showing that you're facing financial hardship. Step 6: Find small ways to increase your income One of the simplest strategies to get out of debt quicker is to simply increase your cash flow. You don't have to make drastic changes to your career, but some ideas that could increase your monthly income by hundreds (or even thousands) of dollars include: Asking your boss for a raise (even a $2 per hour raise could get you an extra $300 per month) Picking up a side gig like with a rideshare or delivery company for an extra few hours on the weekend Offering a small freelance service like cutting grass, moving boxes, photography, or cleaning on your weekends or days off Remember, every extra dollar you earn can add up at the end of the month. Step 7: Make extra interest-free payments when possible Periodically, you may find yourself with some extra cash. Perhaps you get a work bonus, a birthday gift, win a prize, or pull some overtime at work and get a higher cheque. One of the best ways to utilize the extra funds is to make additional payments on a debt which you've already made your monthly payment for. The extra money will go purely towards the principal balance (not the interest), which can really help you make a dent in your debt. Don't forget to reward yourself Keep in mind that getting out of debt can be a long process. Your first focus should be on catching up on late accounts, lowering your interest rates, and finding a plan you can stick with. Once you catch up where you're behind, your consistency will help you pay down debts, and your credit score will reflect your progress. As you progress in your journey, be sure to track your progress and reward yourself – even if it's just something small and affordable like buying yourself your favourite snack, checking off a box on your list, or giving yourself a well-deserved recreational day off. More from Christopher Liew:
Cision Canada
4 hours ago
- Cision Canada
Tata Communications Unveils New Cable System to Supercharge Next-Gen Global Connectivity
MUMBAI, India, June 5, 2025 /CNW/ -- In a major advancement for network connectivity for businesses across Asia and beyond, Tata Communications, a leading global communications technology player, today announced the integration of a new submarine cable system —TGN-IA2 — constructed by the Asia Direct Cable (ADC) consortium, into its existing network fabric. Built to deliver seamless connectivity, scalable bandwidth solutions, and high-capacity data transfer across multiple routes, TGN-IA2 will enable customers — including enterprises, hyperscalers, and service providers — to leverage availability of diverse and resilient connectivity solutions from a single provider in their Intra-Asia networks. Additionally, TGN-IA2 will seamlessly integrate with Tata Communications existing assets, facilitating connectivity solutions from Asia into key geographies, including the US; Europe, the Middle East and Africa (EMEA); and India. Unlike traditional consortium-built systems, the independence of owning and controlling end-to-end capacity upgrades on TGN-IA2 will give Tata Communications unmatched flexibility and scalability, enabling faster provisioning and business readiness for customers. Enterprises can now enjoy a best-in-class network that adapts rapidly to changing needs, supports data-intensive applications such as AI, data centre-to-data centre connectivity and high-definition streaming — empowering businesses to compete and grow in the ever-transforming digital economy. Finally, customers from financial services, e-commerce, logistics, and any sector that depends on fast, secure data transit between Asia and major global hubs, will experience: Improved latency for faster internet speeds and streaming quality Enhanced reliability and redundancy, ensuring seamless business continuity Greater network diversity with seamless interconnection between TGN-IA2 and the existing submarine cable system TGN-IA (Tata Global Network Intra-Asia) The foundation for future-proof digital services and applications "At Tata Communications, we remain steadfast in our commitment to investing in cutting-edge subsea cable systems to meet our customers' growing demands for scalable, diverse, and high-performance connectivity solutions," said Genius Wong, Executive Vice President – Core and Next-Gen Connectivity Services and Chief Technology Officer, Tata Communications. "Whether you're a cloud provider expanding into Asia, an MNC seeking low-latency connectivity across continents, or a digital business scaling globally, TGN-IA2 is a foundation for your future. This latest enhancement to our network fabric will further strengthen Tata Communications' position as a global leader in smart, secure, and scalable connectivity and cross-border innovation." About Tata Communications A part of the Tata Group, Tata Communications (NSE: TATACOMM) (BSE: 500483) is a global digital ecosystem enabler powering today's fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services. 300 of the Fortune 500 companies are its customers and the company connects businesses to 80% of the world's cloud giants. For more information, please visit Forward-looking and cautionary statements Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications' expected financial position, business strategy, the future development of Tata Communications' operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors, including financial, regulatory, and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward- looking statements include, among others, failure to increase the volume of traffic on Tata Communications' network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company's communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications' industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance, or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications' control, include, but are not limited to, those risk factors discussed in Tata Communications Limited's Annual Reports. The Annual Reports of Tata Communications Limited are available at Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements. © 2025 Tata Communications Ltd. All rights reserved.
Winnipeg Free Press
7 hours ago
- Winnipeg Free Press
Asian shares trade mixed after Wall Street's rally stalls on U.S. economic data
TOKYO (AP) — Asian shares were mixed on Thursday, as Wall Street's big recent rally lost some momentum following a pair of potentially discouraging reports on the American economy. U.S. futures edged lower and oil prices declined. Japan's benchmark Nikkei 225 shed 0.2% to 37,658.46, while Australia's S&P/ASX 200 declined nearly 0.1% to 8,535.10. In South Korea, the Kospi jumped 2.1% to 2,829.48 after the country's new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a trilateral partnership with the U.S. and Japan. Hong Kong's Hang Seng gained 0.9% to 23,856.54, while the Shanghai Composite was little changed, inching down less than 0.1% to 3,374.30. On Wednesday, the S&P 500 finished the day virtually unchanged at 5,970.81 and remained 2.8% below its all-time high. The Dow Jones Industrial Average fell 0.2% to 42,427.74, and the Nasdaq composite added 0.3% to 19,460.49. The action was stronger in the bond market, where Treasury yields tumbled following the weaker-than-expected economic updates. One said that activity contracted for U.S. retailers, finance companies and other businesses in the services industries last month, when economists were expecting to see growth. Businesses told the Institute for Supply Management in its survey that all the uncertainty created by tariffs is making it difficult for them to forecast and plan. A second report from ADP suggested U.S. employers outside of the government hired far fewer workers last month than economists expected. That could bode ill for Friday's more comprehensive jobs report coming from the U.S. Labor Department, which is one of Wall Street's most anticipated data releases each month. So far, the U.S. job market has remained remarkably resilient despite years of high inflation and now the threat of President Donald Trump's high tariffs. But weakness there could undermine the rest of the economy. Following the reports, traders built up bets that the Federal Reserve will need to cut interest rates later this year in order to prop up the economy, which in turn caused the fall for Treasury yields. The weaker-than-expected ADP report also led Trump to urge Fed Chair Jerome Powell to deliver cuts to rates more quickly. ''Too Late' Powell must now LOWER THE RATE,' Trump said on his Truth Social platform. 'He is unbelievable!!!' The Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump's tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they could also give inflation more fuel. Longer-term Treasury yields have also been rising in recent weeks because of reasons outside the Fed's control. Investors have been demanding the U.S. government pay more in interest to borrow because of worries about whether it's set to add trillions of dollars to its debt through tax cuts under discussion on Capitol Hill. Investors are hoping for deals that will lower Trump's tariffs. But nothing is assured. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. Monday Mornings The latest local business news and a lookahead to the coming week. In the bond market, the yield on the 10-year Treasury fell to 4.35% from 4.46% late Tuesday. The two-year Treasury yield, which more closely tracks traders' expectations for what the Fed will do with overnight interest rates, eased to 3.86% from 3.96%. In other dealings early Thursday, benchmark U.S. crude fell 8 cents to $62.77 a barrel. Brent crude, the international standard, edged up 1 cent to $64.87 a barrel. The U.S. dollar rose to 142.87 Japanese yen from 142.78 yen. The euro cost $1.1413, little changed from $1.1418. ___ AP Business Writer Stan Choe contributed.
