Dubai Telegraph - Asian markets wobble ahead of Fed as China fears dent sentiment

EUR -
AED 3.885561
AFN 71.400618
ALL 98.79328
AMD 414.292695
ANG 1.907403
AOA 963.698942
ARS 1066.336254
AUD 1.628103
AWG 1.904163
AZN 1.795023
BAM 1.966261
BBD 2.136919
BDT 126.474081
BGN 1.955959
BHD 0.398799
BIF 3063.586381
BMD 1.057868
BND 1.421328
BOB 7.313739
BRL 6.226927
BSD 1.058406
BTN 89.364294
BWP 14.45872
BYN 3.463545
BYR 20734.21722
BZD 2.133299
CAD 1.483819
CDF 3036.081522
CHF 0.93176
CLF 0.037478
CLP 1034.140602
CNY 7.665949
CNH 7.663785
COP 4650.653186
CRC 540.581189
CUC 1.057868
CUP 28.033508
CVE 110.853206
CZK 25.263985
DJF 188.00465
DKK 7.45924
DOP 63.800041
DZD 141.14823
EGP 52.544905
ERN 15.868023
ETB 133.775068
FJD 2.398346
FKP 0.834993
GBP 0.83437
GEL 2.887538
GGP 0.834993
GHS 16.457169
GIP 0.834993
GMD 75.108704
GNF 9120.611028
GTQ 8.165443
GYD 221.422813
HKD 8.230934
HNL 26.768417
HRK 7.546048
HTG 138.809829
HUF 412.972726
IDR 16784.401733
ILS 3.868598
IMP 0.834993
INR 89.313751
IQD 1386.489712
IRR 44523.025916
ISK 144.726771
JEP 0.834993
JMD 167.179453
JOD 0.750344
JPY 159.428672
KES 137.046879
KGS 91.83513
KHR 4258.596826
KMF 496.087495
KPW 952.081002
KRW 1471.664088
KWD 0.325178
KYD 0.88198
KZT 531.935107
LAK 23239.09082
LBP 94776.202446
LKR 307.98148
LRD 189.445228
LSL 19.202464
LTL 3.12361
LVL 0.639894
LYD 5.178552
MAD 10.604621
MDL 19.383854
MGA 4952.230549
MKD 61.534897
MMK 3435.914732
MNT 3594.636173
MOP 8.481706
MRU 42.073853
MUR 49.423082
MVR 16.343633
MWK 1835.220639
MXN 21.778455
MYR 4.699583
MZN 67.594496
NAD 19.202464
NGN 1787.828721
NIO 38.947213
NOK 11.691316
NPR 142.978315
NZD 1.791084
OMR 0.407285
PAB 1.058406
PEN 3.9903
PGK 4.267604
PHP 62.087871
PKR 294.091951
PLN 4.304395
PYG 8273.015308
QAR 3.857532
RON 4.978005
RSD 117.030899
RUB 119.70066
RWF 1458.338186
SAR 3.973993
SBD 8.876139
SCR 14.379774
SDG 636.299149
SEK 11.528351
SGD 1.416755
SHP 0.834993
SLE 24.015219
SLL 22182.972765
SOS 604.904004
SRD 37.438486
STD 21895.736441
SVC 9.261361
SYP 2657.925503
SZL 19.199329
THB 36.505443
TJS 11.350923
TMT 3.713117
TND 3.324903
TOP 2.477632
TRY 36.659157
TTD 7.184291
TWD 34.353179
TZS 2798.7078
UAH 44.065804
UGX 3905.687309
USD 1.057868
UYU 45.36026
UZS 13598.02485
VES 49.396389
VND 26853.984905
VUV 125.592242
WST 2.953135
XAF 659.456185
XAG 0.035212
XAU 0.000401
XCD 2.858941
XDR 0.809588
XOF 659.465585
XPF 119.331742
YER 264.38771
ZAR 19.209908
ZMK 9522.027644
ZMW 28.8669
ZWL 340.633137
  • CMSC

    0.0300

    24.6

    +0.12%

  • RBGPF

    1.0000

    62

    +1.61%

  • CMSD

    -0.0800

    24.35

    -0.33%

  • AZN

    0.8050

    67.165

    +1.2%

  • BTI

    0.3550

    38.065

    +0.93%

  • GSK

    0.4200

    34.44

    +1.22%

  • SCS

    -0.0050

    13.535

    -0.04%

  • NGG

    0.5900

    63.42

    +0.93%

  • RYCEF

    0.1000

    6.9

    +1.45%

  • RELX

    0.2980

    47.108

    +0.63%

  • BCC

    -2.5100

    145.9

    -1.72%

  • RIO

    0.3700

    62.4

    +0.59%

  • JRI

    0.1700

    13.41

    +1.27%

  • BCE

    0.5250

    27.155

    +1.93%

  • BP

    0.2050

    29.165

    +0.7%

  • VOD

    0.1070

    8.967

    +1.19%

Asian markets wobble ahead of Fed as China fears dent sentiment
Asian markets wobble ahead of Fed as China fears dent sentiment / Photo: MARK RALSTON - AFP

Asian markets wobble ahead of Fed as China fears dent sentiment

Asian investors trod cautiously Monday as they struggled to build on recent equity gains, with debate swirling around how big an expected US interest rate cut will be this week, while sentiment was being dragged by worries about the Chinese economy.

Text size:

The yen edged to a new high since December ahead of the Federal Reserve decision on Wednesday and a policy meeting at the Bank of Japan two days later.

Data showing US inflation slowed more than expected last month to its weakest pace since February 2021 has sparked fresh talk that Fed officials will announce a bumper 50-basis-point cut and continue easing into the new year.

However, while bets on such a move have risen, some analysts warned that it could send a signal that decision-makers are worried about the economy, particularly after two readings showing the labour market was softening.

While bank officials have played their cards close to their chest, they have hinted that they are willing to discuss a bigger cut, while former New York Fed chief Bill Dudley said he thought "there's a strong case for 50".

Michael Krautzberger at AllianzGI said: "The Fed, like other central bankers, are now focused on economic growth rather than inflation risks and becoming increasingly worried about being behind the curve on policy -- cutting rates too late to avert a recession or sharper growth slowdown.

"Therefore, in our view, the risks of larger rate cuts at subsequent meetings this year cannot be discounted, especially if labour market activity deteriorates faster than currently expected and inflation continues to head towards target."

All three main indexes on Wall Street pushed higher Friday, with the Dow and S&P 500 within a whisker of their record highs.

But Asian investors were unable to extend the rally, with Hong Kong, Singapore and Wellington down but Sydney, Taipei and Manila edging up.

Trade was muted by holidays in Tokyo, Shanghai, Jakarta and Seoul.

On currency markets the yen hit 140.43 per dollar, its strongest level since the end of December, while gold remained at all-time highs after hitting a record $2,586.10 per ounce Friday.

Traders are keeping tabs on developments in China after more weak data on credit, retail sales, industrial production and house prices stoked concerns about the state of the world's number two economy.

The figures "collectively add to concerns that policy measures announced in recent weeks and months have so far failed to have any measurable impact in lifting economic growth thus far in the third quarter after the weak second quarter performance", said National Australia Bank's Ray Attrill.

He added that investors will be keenly watching the government's upcoming Politburo meeting -- the date of which has yet to be set.

In light of the latest batch of disappointing figures, the central bank outlined plans to support the economy, saying it will "make maintaining price stability and pushing for the mild rebound in prices an important consideration for monetary policy and meet reasonable financing demand for consumption in a more targeted way".

The Fed's decision is set to be followed by the BoJ on Friday, with most analysts expecting it to hold rates after a surprise hike at the end of July sparked turmoil on markets.

"A consecutive hike would likely be seen as too aggressive, especially given criticism that the BoJ's hawkish stance contributed to global market turbulence in early August," said IG analyst Tony Sycamore.

"That said, stronger-than-expected inflation and wage growth in Japan over the past month have given the BoJ confidence in a wage-price cycle that could keep inflation above two percent, paving the way for more policy tightening."

- Key figures around 0230 GMT -

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 17,271.92

Tokyo - Nikkei 225: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Dollar/yen: DOWN at 140.53 yen from 140.76 yen on Friday

Euro/dollar: UP at $1.1088 from $1.1079

Pound/dollar: UP at $1.3141 from $1.3125

Euro/pound: DOWN at 84.37 pence from 84.40 pence

West Texas Intermediate: UP 0.5 percent at $68.98 per barrel

Brent North Sea Crude: UP 0.4 percent at $71.86 per barrel

New York - Dow: UP 0.7 percent at 41,393.78 (close)

London - FTSE 100: UP 0.4 percent at 8,273.09 (close)

I.Menon--DT