
Peru Holds Interest Rate as Policymakers Gauge Tariff Damage
The central bank held its key rate at 4.5% for a third straight month on Thursday, as forecast by 12 of 13 economists surveyed by Bloomberg. One analyst had expected a quarter-point rate reduction to 4.25%.
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Bloomberg
7 minutes ago
- Bloomberg
Chinese Drugmaker Innogen Soars in Hong Kong Debut
Guangzhou Innogen Pharmaceutical Group, a Chinese biotech firm looking to tap the vast domestic market for obesity drugs, surged as much as 296% in its trading debut in Hong Kong. Its founder, chairman and CEO Qinghua Wang speaks exclusively on "Bloomberg: The China Show." (Source: Bloomberg)
Yahoo
34 minutes ago
- Yahoo
Asia markets stumble as hot PPI print reins in Fed rate cut hype
By Gregor Stuart Hunter SINGAPORE (Reuters) -Stocks in Asia made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve's September meeting, while U.S. bonds and equity futures stabilised. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists' expectations. "What it did was to get rid of all the chat about a 50 basis point cut," said Mike Houlahan, director at Electus Financial Ltd in Auckland. The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group's FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago. U.S. stock futures were flat in early Asian trading after ending a choppy trading session on Wall Street with mild gains on Thursday. The yield on the U.S. 10-year Treasury bond was down 1 basis point at 4.2829%. The two-year yield, which is sensitive to traders' expectations of Fed fund rates, slipped to 3.7304% compared with a U.S. close of 3.739%. Nasdaq futures extended losses into a third consecutive day, sliding 0.1% lower. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, retraced some gains after the PPI data release, last trading down 0.1% at 98.143. The Nikkei 225 rebounded 0.4% after snapping a six-day winning streak on Thursday with its biggest one-day selloff since April 11, as Japanese GDP data showed the economy expanding by an annualised 1.0% in the April-June quarter, beating analyst estimates. The dollar weakened 0.3% against the yen to 147.64. Australian shares were last up 0.2%, while stocks in Hong Kong were down 0.9% following losses on Thursday for U.S.-listed exchange-traded funds tracking Chinese companies. The CSI 300 gave up early gains and was last trading flat after the release of weaker-than-expected Chinese economic data for July including retail sales and industrial in India and South Korea are closed for public holidays. Cryptocurrency markets stabilised after a new record for bitcoin of $124,480.82 on Thursday proved fragile and promptly crumbled after falling short of its next key milestone. The digital currency was last up 0.7%, recovering some ground, while ether gained 1.7%. "Bitcoin's failure to conquer the $125,000 resistance signals another consolidation phase," said Tony Sycamore, a market analyst at IG in Sydney. In commodities markets, Brent crude was flat at $66.94 per barrel ahead of a meeting in Alaska between U.S. President Donald Trump and Russian leader Vladimir Putin. Gold was slightly lower as the markets digested the path of inflation-adjusted interest rates, which typically move in the opposite direction from bullion prices. Spot gold was trading up 0.1% at $3,339 per ounce. [GOL/] In early European trades, the pan-region futures were up 0.4%, German DAX futures were up 0.3% at 24,489, and FTSE futures were up 0.5%.
Yahoo
34 minutes ago
- Yahoo
China's July factory output, retail sales growth slump in blow to economic momentum
BEIJING (Reuters) -China's factory output growth slumped to an eight month low in July, while retail sales also slowed sharply, reinforcing the challenge confronting policymakers as they strive to shore up an economy in the face of soft demand at home and external risks. The underwhelming data, released by the National Bureau of Statistics (NBS) on Friday, come as Chinese policymakers navigate pressure on multiple fronts ranging from U.S. President Donald Trump's trade policies to insufficient demand and excessive competition in domestic market. Industrial output grew 5.7% year-on-year in July, the lowest reading since November 2024, and compared with a 6.8% rise in June. It missed forecasts for a 5.9% increase in a Reuters poll. A temporary trade truce reached between China and the United States in mid-May, which was extended by another 90-days this week, has prevented U.S. tariff rates on Chinese goods from reaching triple-digit levels. However, Chinese manufacturers' profits continue to take a hit from subdued demand and factory-gate deflation at home. Data released earlier this month by the NBS showed that the producer price index fell 3.6% year-on-year in July, matching the near two-year low recorded in June. Beijing has recently stepped up policy measures and made pledges to prop up domestic consumption and curb excessive price competition, as authorities strive to lift economic growth towards the government's 2025 target of around 5%. Retail sales, a gauge of consumption, expanded 3.7% in July, the slowest reading since December 2024, slowing from a 4.8% rise in the previous month and missing forecasts of a 4.6% gain. Fixed asset investment grew 1.6% in the first seven months of the year from the same period last year, compared with an expected 2.7% rise. It had expanded 2.8% in the first half. The world's second-largest economy has so far avoided a sharp slowdown in part due to policy support and as factories took advantage of the U.S.-China trade truce to front-load shipments, but analysts say weak demand at home and global risks will drag on growth in coming quarters. Economic activity has also been impacted by extreme weather, from record-breaking heat to storms and floods across the country, disrupting factory production and day-to-day business operations. The latest Reuters poll projected China's GDP growth to slow to 4.5% in the third quarter and 4.0% in the fourth, suggesting that Beijing has its work cut out in getting households to spend more at a time of uncertainty over job security and mounting headwinds from Trump's global trade war. China's 2025 GDP growth is forecast to cool to 4.6% - falling short of the official goal - from last year's 5.0% and ease even further to 4.2% in 2026, according to the poll.