Latest news with #Kospi
Business Times
5 hours ago
- Business
- Business Times
Singapore shares continue to rise, tracking regional indices; STI up 1%
[SINGAPORE] The Straits Times Index (STI) closed higher on Thursday (Jul 24), tracking regional indices. The STI ended 1 per cent or 41.77 points up at 4,273.05. Across the broader market, advancers outnumbered decliners 356 to 223, after 2.4 billion shares worth S$1.9 billion changed hands. The trio of local banks continued to rise on Thursday. DBS gained 2.2 per cent or S$1.08 to close at S$49.21, UOB was up 0.3 per cent or S$0.13 at S$37.36, and OCBC advanced 0.3 per cent or S$0.06 to S$17.27. ST Engineering was the top gainer on the STI, closing up 7.1 per cent or S$0.59 at S$8.86. The biggest loser was Hongkong Land , which declined 2.2 per cent or US$0.14 to US$6.19. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Across the region, major indices were up, with South Korea's Kospi rising 0.2 per cent and Japan's Nikkei 225 advancing 1.6 per cent. Hong Kong's Hang Seng Index ended 0.5 per cent higher, and Malaysia's KLCI gained 0.7 per cent. Traders are riding on the optimism that the worst-case tariff scenarios may have been priced too pessimistically, said Stephen Innes, managing partner, SPI Asset Management. The trade deal announced between the US and Japan on Wednesday cut tariffs on Japanese imports to 15 per cent, rather than the 25 per cent that US President Donald Trump had earlier threatened. This is said to have provided a lifeline for global risk appetite. The rumours that the US-European Union accord could mirror the same 15 per cent figure have given stocks wind beneath their wings, added Innes. 'The tariff average settling at 15 per cent – if achieved – would be seen as damage control rather than destruction. Markets, ever forward-looking, are repositioning for a softer landing,' he noted.
The Star
17 hours ago
- Business
- The Star
Fund giants put faith in ‘Trump put' to keep stock rally rolling
WASHINGTON: A cohort of the world's largest asset managers is leaning harder into the rally in risk assets as US stocks push to fresh highs, defying persistent trade and geopolitical tensions. Firms such as Invesco Ltd, Fidelity International Ltd and JPMorgan Asset Management are reinforcing bullish bets across technology shares from the United States to Asia as well as on emerging-market assets. The high-octane wager is that while President Donald Trump is threatening to disrupt the economic order anew, he will step back from the brink. That's helping justify risk exposure at a time when valuations are stretched and macro headwinds persist. In a market that rewards conviction and punishes caution, sitting out is starting to look like the riskiest position of all. 'People have really bought into this belief that there is a Trump put, that if markets correct or if US interest rates go up, Trump will back off as he did in April: that trade is on,' said Chang Hwan Sung, a multi-asset portfolio manager in Invesco's investment solutions team in Hong Kong. 'As we navigate through this uncertainty, we are very likely to become more pro-risk.' This shared conviction isn't just a general sense of optimism; it's a calculated bet that the inherent volatility of a second Trump term will ultimately yield to economic pragmatism. For these global fund managers, that translates directly into a still-resilient outlook for international trade and supply chains, powering everything from Indonesian local-currency bonds and South Korean chipmakers to US growth stocks. Invesco has boosted its US equity allocation ahead of second-quarter corporate earnings, which it anticipates will provide further support for stocks, Chang said. And while the asset manager is 'overweight' on US stocks, it sees even better prospects elsewhere. 'From what I see happening across the globe, we are very likely to be a bit more tilted towards non-US markets such as Europe and emerging markets,' Chang said. Invesco sees medium-term opportunities in South Korea due to optimism over the government's corporate-governance reforms. The nation's benchmark Kospi index has already gained more than 30% this year, making it one of the world's best-performing major equity gauges. Invesco is also adding to holdings of local currency emerging-market bonds in its cross-asset portfolios as it sees these deriving the most gain from expected US interest rate cuts, Chang said. 'For fixed income, we like high yielders like Indonesia and other high interest-rate countries because they will probably benefit the most,' he said. Fidelity favours shares in Taiwan due to the island's high concentration of technology firms, while it likes South Korean stocks for their inexpensive valuations. 'Taiwan is probably one of the best value ways to play the technology cycle upswing, and we see a good case for being overweight,' said Ian Samson, a multi-asset fund manager at the money manager in Singapore. 'If you look at graphics processing unit (GPU) exports from Taiwan, they're just off the charts; it's incredible,' he said, referring to GPU, a type of chip used to process digital images. Fidelity isn't universally positive on risk assets. The firm's cross-asset portfolios are turning bearish on investment-grade and high-yield US corporate bonds due to their low differential to Treasury yields and are buying gold as a hedge, Samson said. JPMorgan Asset says medium US tech stocks still have room to gain due to the market's optimism over artificial intelligence (AI). The tailwinds of AI demand will offer further support for mid-cap tech stocks in the United States, said Kerry Craig, an investment strategist at the company in Melbourne. 'That adoption of AI across the broader US and global economy still has room to run,' he said. Fidelity, Invesco and JPMorgan Asset aren't alone in recommending 'overweight' holdings of US equities. Goldman Sachs Group Inc this month increased its target for the S&P 500 Index, while HSBC Holdings Plc has recommended higher US stock allocations in its multi-asset portfolios. 'We are really leaning back into US equities,' said Max Kettner, multi-asset strategist at HSBC in London. Corporate profit reports will provide a catalyst for US stocks, given low expectations, he said. 'People are probably overestimating the negative impact of tariffs on margins and earnings, and they're underestimating the positive tailwind from the weaker dollar,' Kettner said. — Bloomberg
Business Times
a day ago
- Business
- Business Times
ST Index up on Wednesday, mirroring regional indices
[SINGAPORE] The Straits Times Index (STI) closed higher on Wednesday (Jul 23), mirroring regional indices. The STI rose 0.6 per cent or 23.02 points to 4,231.28. Across the broader market, advancers outnumbered decliners 427 to 164 after 2.4 billion shares worth S$1.7 billion changed hands. The trio of local banks closed higher on Wednesday, with DBS up 1.9 per cent or S$0.88 at S$48.13. UOB rose 0.6 per cent or S$0.23 to S$37.23 and OCBC closed up 0.1 per cent or S$0.02 at S$17.21. DFI Retail Group was the top gainer on the STI, closing up 9.2 per cent or US$0.29 at US$3.45. The biggest loser was ST Engineering , which dropped 2.1 per cent or S$0.18 to S$8.27. Across the region, major indices ended higher, with the Kospi gaining 0.4 per cent and the Nikkei 225 up 3.5 cent. Hong Kong's Hang Seng Index closed up 1.6 per cent and the KLCI rose 0.7 per cent. The fading momentum of tech stocks is starting to weigh on major US benchmarks, said Jose Torres, senior economist at Interactive Brokers. But the wider US market remains positive, as every other major sector was still upbeat during a quiet day for economic releases. Overreliance on the 'Magnificent 7' – comprising Apple, Alphabet, Microsoft, Amazon, Tesla, Meta and Nvidia – is contributing to the market turning defensive, picking up Treasuries, gold and volatility protection instruments, said Torres. With tech and communications services' rally bolstered by looser regulations, financial services could see the same impact as efforts are made to loosen regulations,' he added. 'While less red tape is poised to improve profitability at banks, the lending and capital expenditure implications of reducing regulations are also quite stimulative to the economy because additional funds are opened up for consumption, investment and fixed income purchasing,' said Torres.
Business Times
a day ago
- Business
- Business Times
ST Index inches up on Wednesday, mirroring regional indices
[SINGAPORE] The Straits Times Index (STI) closed higher on Wednesday (Jul 23), mirroring regional indices. The STI inched up 0.6 per cent or 23.02 points to 4,231.28. Across the broader market, advancers outnumbered decliners 427 to 164 after 2.4 billion shares worth S$1.7 billion changed hands. The trio of local banks closed higher on Wednesday, with DBS up 1.9 per cent or S$0.88 at S$48.13. UOB rose 0.6 per cent or S$0.23 to S$37.23 and OCBC closed up 0.1 per cent or S$0.02 at S$17.21. DFI Retail Group was the top gainer on the STI, closing up 9.2 per cent or US$0.29 at US$3.45. The biggest loser was ST Engineering , which dropped 2.1 per cent or S$0.18 to S$8.27. Across the region, major indices ended higher, with the Kospi gaining 0.4 per cent and the Nikkei 225 up 3.5 cent. Hong Kong's Hang Seng Index closed up 1.6 per cent and the KLCI rose 0.7 per cent. The fading momentum of tech stocks is starting to weigh on major US benchmarks, said Jose Torres, senior economist at Interactive Brokers. But the wider US market remains positive, as every other major sector was still upbeat during a quiet day for economic releases. Overreliance on the 'Magnificent 7' – comprising Apple, Alphabet, Microsoft, Amazon, Tesla, Meta and Nvidia – is contributing to the market turning defensive, picking up Treasuries, gold and volatility protection instruments, said Torres. With tech and communications services' rally bolstered by looser regulations, financial services could see the same impact as efforts are made to loosen regulations,' he added. 'While less red tape is poised to improve profitability at banks, the lending and capital expenditure implications of reducing regulations are also quite stimulative to the economy because additional funds are opened up for consumption, investment and fixed income purchasing,' said Torres.
Yahoo
a day ago
- Automotive
- Yahoo
US and Japan agree trade deal to circumvent worst of tariffs
The US and Japan have agreed a trade deal days ahead of the latest tariff deadline set by Donald Trump. Under the terms of the agreement, rather than all Japanese goods being hit with a 24% tax on entry to the US, they will instead be subject to a 15% tariff. Significantly, and unlike the US-UK deal, there is no cap on the number of Japanese cars subject to the agreed lower tariff. The levy on cars and car parts has been brought down from 25% to 15%, making it the first country to secure a reduction in the blanket 25% rate on vehicles. Cars make up more than a quarter of all Japan's exports to the US. Japanese steel and aluminium are still subject to a 25% tariff. Money blog: Rival set to overtake Morrisons It's just over a week until the 1 August pause on tariffs is due to end, itself a six-week extension to the 9 July 90-day freeze US President Trump announced in April. It's seen a win for all parties as Japan is a major trading partner of the world's largest economy. To make the deal happen, Japan agreed to a $550bn (£406bn) investment package of loans and guarantees from Japanese government-affiliated institutions in key sectors like pharmaceuticals and semiconductors. Japan will also increase purchases of US agricultural products such as rice. Market reaction Markets welcomed the news. In the US, the value of a dollar ticked up, and in Japan, the benchmark stock exchange, the Nikkei, gained sizably, and closed up more than 3.5%. The index is comprised of many major carmakers, including Nissan, Honda, Mazda, Toyota, and Mitsubishi, which all rallied following the news. Other Asian stock indexes closed up, including Korea's Kospi, which rose nearly 0.44%, Hong Kong's Hang Seng, which increased more than 1.6%, and Thailand's SET index, which was up more than 2.3%.
