Latest news with #fiscalhealth
Zawya
3 days ago
- Business
- Zawya
Asian stocks climb on Wall Street boost, currencies waver against strong dollar
Reuters - Emerging Asian stock markets advanced on Wednesday, mirroring Wall Street's overnight gains, while currencies were tepid after strong economic data buoyed the dollar, despite lingering concerns about the U.S. fiscal health and trade policies. Philippine stocks jumped 0.7%, while the Singapore market climbed 0.6% to a two-week peak. South Korean shares ended up 1.3% at a more than three-month closing high. U.S. President Donald Trump backed away over the weekend from his threat to slap 50% tariffs on imports from the European Union next month, agreeing to extend the deadline until July 9. U.S. consumer confidence data coming in much better-than-expected added to the optimism, helping stocks on Wall Street surge overnight as investors returned from a three-day extended weekend. The dollar index, which measures the U.S. currency against six rivals, also inched up 0.2%, adding to Tuesday's 0.6% advance. Positive developments from across the world, including the progress in the U.S.–EU talks and speculation that the Japanese government could adjust its level of bond issuance, seem to have driven the demand for U.S. assets, Maybank analysts said. "The gains in U.S. assets came on the back of strong economic data overnight, which some market concerns about the country's fiscal outlook," Poon Panichpibool, a market strategist at Krung Thai Bank, said. "However, it could just be a brief moment of rebound," he said, adding that fiscal concerns could flare up depending on how the U.S. Senate votes on Trump's tax-cut bill that is expected to add to the debt pile in the world's largest economy. Emerging Asian currencies, which have benefited from broader weakness in the greenback this month, were subdued on Wednesday. The Indian rupee weakened 0.2%, while the Singapore dollar appreciated marginally. The South Korean won was largely flat at 1,376.40. Investors are now focused on the Bank of Korea's monetary policy decision on Thursday, where the central bank is expected to lower its key rate by 25 basis points after economic activity contracted last quarter and April inflation came closer to the central bank's target. "Board members are likely to focus on tariff impact on growth, U.S.-Korea trade talks, and recent KRW appreciation," analysts at BofA Global Research said. In Malaysia, the ringgit and equities edged up 0.1% each. Malaysia's Economy Minister Rafizi Ramli said he had submitted his resignation, after losing a contest for the deputy presidency of the premier's political party. HIGHLIGHTS: ** ASEAN leaders agree tariff deals with the U.S. should not harm fellow members ** U.S. trade deal could boost Indian exports, government report says ** Demand at Japan's 40-year bond auction sinks as fiscal doubts prevail Asia stock indexes and currencies at 0724 GMT COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS % DAILY YTD % % Japan +0.03 +8.94 0.00 -5.44 China India -0.24 +0.09 -0.13 4.86 Indonesi -0.09 -1.20 0.04 1.72 a Malaysia +0.12 +5.63 0.09 -6.99 Philippi -0.06 +4.56 0.64 -1.58 nes Singapor +0.00 +5.95 0.44 3.32 e Taiwan +0.19 +9.65 0.10 -7.28 Thailand +0.14 +4.88 0.21 -16.74 Reuters
Zawya
4 days ago
- Business
- Zawya
Yen drifts ahead of Japan bond auction, dollar steady
SINGAPORE: The Japanese yen wobbled in volatile trading on Wednesday as ructions in the bond market kept the spotlight on the fiscal health of major economies while the U.S. dollar steadied after a strong end to the previous session due to upbeat economic data. The yen was last little changed at 144.345 per dollar in early trading after dropping 1% on Tuesday in the wake of reports that Japan will consider trimming issuance of super-long bonds after a sharp rise in yields in recent weeks. The focus will remain on the Japanese bond market, with an auction of Japan's longest-tenor bonds due on Wednesday a litmus test for appetite for that type of debt as investors weigh worsening finances of major government issuers. The longest-dated Japanese government bond yields soared to all-time highs last week after a poor 20-year debt auction. On Wednesday, the yield on Japanese government bonds was slightly higher after a sharp dive in the previous session. Charu Chanana, chief investment strategist at Saxo, said the auction in Japan was unlikely to draw strong demand amid the recent surge in long-end yields. "Even if the results are solid, a sustained decline in yields looks unlikely given BOJ policy uncertainty and fiscal concerns ahead of the July elections," she said. "For the yen, risks remain two-way - policy uncertainty keeps upside pressure intact amid haven flows, but a softening in U.S. tariff rhetoric could limit gains," Chanana added. The yen has gained nearly 9% so far in 2025 due to dollar weakness and safe-haven flows as investors flee U.S. assets in the wake of the erratic trade policies under President Donald Trump that have roiled markets. FISCAL OUTLOOK Fiscal worries are front of mind for investors after Moody's downgrade of the U.S. credit rating on a rising debt burden this month and soft demand for a U.S. Treasury Department bond auction last week that lifted 30-year Treasury yields above 5%. U.S. Treasury yields were slightly elevated on Wednesday after they dipped in the previous session. The euro was flat at $1.1325 after dropping 0.5% in the previous session as a bout of dollar buying hit the markets amid signs of possible trade deals and data showing U.S. consumer confidence in May was much better than expected. The U.S. dollar was also boosted by Trump's decision to delay higher tariffs on the European Union over the weekend. Still, new orders for key U.S.-manufactured capital goods plunged by the most in six months in April as the flip-flopping tariff salvos take a toll on the economy and businesses. Sterling last bought $1.3516 but stayed close to the three-year high touched on Monday, while worries about Britain's stretched finances have also weighed on investor appetite for the country's debt. The dollar index, which measures the U.S. currency against six rivals, was last at 99.574. The Australian dollar was muted at $0.6443, a week after the country's central bank lowered interest rates by 50 basis points. The New Zealand dollar was last slightly weaker at $0.5941, ahead of a central bank decision on Wednesday where economists polled by Reuters expect a 25 basis point interest rate cut. (Reporting by Ankur Banerjee in Singapore; Editing by Jamie Freed)
Reuters
4 days ago
- Business
- Reuters
Yen drifts ahead of Japan bond auction, dollar steady
SINGAPORE, May 28 (Reuters) - The Japanese yen wobbled in volatile trading on Wednesday as ructions in the bond market kept the spotlight on the fiscal health of major economies while the U.S. dollar steadied after a strong end to the previous session due to upbeat economic data. The yen was last little changed at 144.345 per dollar in early trading after dropping 1% on Tuesday in the wake of reports that Japan will consider trimming issuance of super-long bonds after a sharp rise in yields in recent weeks. The focus will remain on the Japanese bond market, with an auction of Japan's longest-tenor bonds due on Wednesday a litmus test for appetite for that type of debt as investors weigh worsening finances of major government issuers. The longest-dated Japanese government bond yields soared to all-time highs last week after a poor 20-year debt auction. On Wednesday, the yield on Japanese government bonds was slightly higher after a sharp dive in the previous session. Charu Chanana, chief investment strategist at Saxo, said the auction in Japan was unlikely to draw strong demand amid the recent surge in long-end yields. "Even if the results are solid, a sustained decline in yields looks unlikely given BOJ policy uncertainty and fiscal concerns ahead of the July elections," she said. "For the yen, risks remain two-way - policy uncertainty keeps upside pressure intact amid haven flows, but a softening in U.S. tariff rhetoric could limit gains," Chanana added. The yen has gained nearly 9% so far in 2025 due to dollar weakness and safe-haven flows as investors flee U.S. assets in the wake of the erratic trade policies under President Donald Trump that have roiled markets. Fiscal worries are front of mind for investors after Moody's downgrade of the U.S. credit rating on a rising debt burden this month and soft demand for a U.S. Treasury Department bond auction last week that lifted 30-year Treasury yields above 5%. U.S. Treasury yields were slightly elevated on Wednesday after they dipped in the previous session. The euro was flat at $1.1325 after dropping 0.5% in the previous session as a bout of dollar buying hit the markets amid signs of possible trade deals and data showing U.S. consumer confidence in May was much better than expected. The U.S. dollar was also boosted by Trump's decision to delay higher tariffs on the European Union over the weekend. Still, new orders for key U.S.-manufactured capital goods plunged by the most in six months in April as the flip-flopping tariff salvos take a toll on the economy and businesses. Sterling last bought $1.3516 but stayed close to the three-year high touched on Monday, while worries about Britain's stretched finances have also weighed on investor appetite for the country's debt. The dollar index , which measures the U.S. currency against six rivals, was last at 99.574. The Australian dollar was muted at $0.6443, a week after the country's central bank lowered interest rates by 50 basis points. The New Zealand dollar was last slightly weaker at $0.5941, ahead of a central bank decision on Wednesday where economists polled by Reuters expect a 25 basis point interest rate cut.
Yahoo
23-05-2025
- Business
- Yahoo
Morning Bid: Bond markets in the driver's seat
A look at the day ahead in European and global markets from Ankur Banerjee After a volatile week when markets zeroed in on major economies' precarious fiscal health, with a sell-off in Treasuries and government bonds from Japan and Britain, fixed income investors are now setting the broader market agenda. Lacklustre bond auctions in Japan and the U.S. this week underscored the lack of demand for long tenors, as investors send a clear message to governments that in the current climate of uncertainty they need to pay more to borrow for decades down the road. While beaten-down Treasuries found buyers by the end of the week, The 30-year bond yield remained above the psychologically important 5% threshold in Asian hours on Friday. Super-long Japanese government bonds were stable but still near record highs touched earlier this week. The 10-year gilt yield hit its highest since January 15 on Thursday. Wherever you look, there are signs of unease in the markets about the stretched finances of the biggest economies. Fiscal worries have put pressure on the dollar, which is on course for a weekly loss against the euro and the yen for the first time in five weeks. Safe-haven flows are back, too, with gold set to clock its best week in more than a month. Since Moody's downgraded its U.S. debt ratings last week, investor attention has fixated on the country's $36 trillion debt pile and U.S. President Donald Trump's tax bill, which could add trillions of dollars more. Dubbed a "big, beautiful bill" by Trump, it narrowly passed the Republican-controlled U.S. House of Representatives and now heads to the Senate for what is likely to be weeks of debate, keeping investors on the edge. Investors are also pining for more good news on trade deals as we hit the halfway point of the 90-day pause to Trump's so-called reciprocal tariffs. Key developments that could influence markets on Friday: Economic events: Germany GDP data for Q1, UK retail sales data for April Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Ankur Banerjee; Editing by Edmund Klamann)
Reuters
23-05-2025
- Business
- Reuters
Morning Bid: Bond markets in the driver's seat
A look at the day ahead in European and global markets from Ankur Banerjee After a volatile week when markets zeroed in on major economies' precarious fiscal health, with a sell-off in Treasuries and government bonds from Japan and Britain, fixed income investors are now setting the broader market agenda. Lacklustre bond auctions in Japan and the U.S. this week underscored the lack of demand for long tenors, as investors send a clear message to governments that in the current climate of uncertainty they need to pay more to borrow for decades down the road. While beaten-down Treasuries found buyers by the end of the week, The 30-year bond yield remained above the psychologically important 5% threshold in Asian hours on Friday. Super-long Japanese government bonds were stable but still near record highs touched earlier this week. The 10-year gilt yield hit its highest since January 15 on Thursday. Wherever you look, there are signs of unease in the markets about the stretched finances of the biggest economies. Fiscal worries have put pressure on the dollar, which is on course for a weekly loss against the euro and the yen for the first time in five weeks. Safe-haven flows are back, too, with gold set to clock its best week in more than a month. Since Moody's downgraded its U.S. debt ratings last week, investor attention has fixated on the country's $36 trillion debt pile and U.S. President Donald Trump's tax bill, which could add trillions of dollars more. Dubbed a "big, beautiful bill" by Trump, it narrowly passed the Republican-controlled U.S. House of Representatives and now heads to the Senate for what is likely to be weeks of debate, keeping investors on the edge. Investors are also pining for more good news on trade deals as we hit the halfway point of the 90-day pause to Trump's so-called reciprocal tariffs. Key developments that could influence markets on Friday: Economic events: Germany GDP data for Q1, UK retail sales data for April Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.
