Latest news with #SPI Asset Management
France 24
5 days ago
- Business
- France 24
Asian markets track Wall St rally on Fed rate cut bets
The gains tracked a rally on Wall Street, where traders rediscovered their mojo following Friday's sell-off that was fuelled by news that fewer-than-expected American jobs were created in July, while the previous two months' figures were revised down sharply. The reading raised concerns the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 percent, according to Bloomberg. There is also talk that bank officials could go for twice as much as that. "The narrative flipped fast: soft jobs equals soft Fed, and soft Fed equals risk-on," said Stephen Innes at SPI Asset Management. But he warned that "if cuts are coming because the labour market is slipping from 'cooling' to 'cracking', then we're skating closer to the edge than we care to admit". He added: "That dichotomy -- between rate cuts as stimulus and rate cuts as warning flare -- is now front and center. "If the Fed moves proactively to shield markets from the tariff storm and weak labour, the equity rally has legs. But if policymakers are reacting to a sharper downturn that is in full swing, the runway shortens quickly." In early trade, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were all in the green. However, while there is a broad expectation that the Fed will cut rates, Lazard chief market strategist Ronald Temple remained sceptical. "I continue to believe the Fed will not reduce rates at all this year given rising inflation caused by tariffs and a relatively stable unemployment rate," he wrote. "I would align with the majority of the FOMC members who believe it is more appropriate to hold policy constant until there is greater clarity in terms of the effects of tariffs and stricter immigration enforcement on inflation and employment." Traders were keeping an eye on trade talks between Washington and dozens of its trade partners after Trump imposed tariffs of between 10 and 41 percent on them. Among those to strike a deal is India, which Trump on Monday threatened to hit with "substantially" higher rates over its purchases of Russian oil. Key figures at around 0230 GMT Tokyo - Nikkei 225: UP 0.6 percent at 40,544.99 (break) Hong Kong - Hang Seng Index: UP 0.1 percent at 24,747.97 Shanghai - Composite: UP 0.5 percent at 3,600.02 Dollar/yen: UP at 147.11 yen from 147.08 yen on Monday Euro/dollar: DOWN at $1.1562 from $1.1573 Pound/dollar: UP at $1.3287 from $1.3285 Euro/pound: DOWN at 87.01 pence from 87.11 pence
Free Malaysia Today
24-07-2025
- Business
- Free Malaysia Today
Ringgit ends higher on Malaysia-US trade deal optimism
KUALA LUMPUR : The ringgit ended higher against the US dollar, buoyed by optimism that Malaysia could secure more favourable trade negotiations with the US, said an analyst. The local currency has traded higher versus the US dollar for the fifth consecutive day. Investment, trade and industry minister Tengku Zafrul Aziz said Malaysia is actively engaging in discussions with the US over the impending 25% tariff rate set to take effect on Aug 1, aiming to secure a rate below 20%. SPI Asset Management managing partner Stephen Innes said regional tailwinds further lifted sentiment after US president Donald Trump concluded a trade deal with Japan on Tuesday, which included reducing tariffs on the import of Japanese goods into the US to 15% from 25%. 'These developments are fuelling hopes that Washington's broader tariff strategy is shifting from confrontation to compromise. 'Against this backdrop, investors see Malaysia as a likely beneficiary of the next wave of bilateral deals,' he told Bernama. Innes added that the ringgit's recent gains may signal its potential to benefit from improved trade conditions following the US-Japan agreement. At 6pm, the ringgit rose to 4.2135/4.2210 against the greenback from yesterday's close of 4.2255/4.2300. At the close, the ringgit was higher against a basket of major currencies. It advanced against the Japanese yen to 2.8751/2.8804 from 2.8837/2.8870, rose against the British pound to 5.7080/5.7182 from 5.7230/5.7291, and inched up against the euro to 4.9517/4.9605 from 4.9586/4.9639. The local currency was firmer against regional peers, except the Philippine peso. It increased vis-à-vis the Singapore dollar to 3.2995/3.3057 from 3.3071/3.3109, appreciated against the Thai baht to 13.0570/13.0863 from 13.1370/13.1567, and improved versus the Indonesian rupiah to 258.5/259.1 from 259.1/259.5. However, the local currency traded slightly lower against the Philippine peso, at 7.43/7.45, compared to 7.42/7.44 at yesterday's close.
Malay Mail
24-07-2025
- Business
- Malay Mail
Ringgit climbs for fifth straight day against major currencies on Malaysia-US trade deal hopes
KUALA LUMPUR, July 24 — The ringgit ended higher against the US dollar and other major currencies, buoyed by optimism that Malaysia could secure a more favourable trade deal with the United States (US), said an analyst. The local note also traded higher versus the US dollar for the fifth consecutive day. At 6 pm, the ringgit rose to 4.2135/2210 against the greenback from Wednesday's close of 4.2255/2300. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is actively engaging in discussions with the US over the impending 25 per cent tariff rate set to take effect on Aug 1, aiming to secure a rate below 20 per cent. SPI Asset Management managing partner Stephen Innes said regional tailwinds further lifted sentiment after US President Donald Trump concluded a trade deal with Japan on Tuesday, which included reducing tariffs on the import of Japanese goods into the US to 15 per cent from 25 per cent. 'These developments are fuelling hopes that Washington's broader tariff strategy is shifting from confrontation to compromise. 'Against this backdrop, investors see Malaysia as a likely beneficiary of the next wave of bilateral deals,' he told Bernama. Innes added that the ringgit's recent gains may signal its potential to benefit from improved trade conditions following the US-Japan agreement. At the close, the ringgit was higher against a basket of major currencies. It advanced against the Japanese yen to 2.8751/8804 from 2.8837/8870, rose against the British pound at 5.7080/7182 from 5.7230/7291 and inched up against the euro to 4.9517/9605 from 4.9586/9639. The local note was firmer against regional peers, except the Philippine peso. It increased vis-à-vis the Singapore dollar to 3.2995/3057 from 3.3071/3109, appreciated against the Thai baht to 13.0570/0863 from 13.1370/1567 and improved versus the Indonesian rupiah to 258.5/259.1 from 259.1/259.5. However, the local note traded slightly lower against the Philippine peso, at 7.43/7.45, compared to 7.42/7.44 at yesterday's close. — Bernama
