Asia stocks mixed on US rates, tariff caution; China falls from recent peaks  Investing.com

Investing.com-- Most Asian stocks moved a tight range on Tuesday as uncertainty over U.S. trade tariffs and interest rate cuts kept investors to the sidelines, while Chinese markets fell from recent peaks following mixed data for August. Regional markets saw a dearth of immediate trading cues following a U.S. market holiday on Monday. But S&P 500 Futures fell 0.1% in Asian trade as a legal challenge to President Donald Trump’s trade tariffs and uncertainty over an upcoming Federal Reserve meeting kept sentiment largely risk-averse. Focus is also on key U.S. nonfarm payrolls data due later this week, which is likely to factor into expectations for rate cuts. Markets were seen remaining largely geared towards a September cut, despite sticky inflation data released last week. The prospect of lower U.S. interest rates had supported Asian stocks through August, and offered some support in recent sessions. Japan’s Nikkei 225 rose 0.3%, while the TOPIX index added 0.5%. South Korea’s KOSPI was the best performer in Asia, rising 0.7% after consumer price index inflation data read softer than expected for August, opening the door for more rate cuts by the Bank of Korea. Gift Nifty 50 Futures for India’s Nifty 50 index pointed to a flat open after the index clocked steep losses in late-August, on concerns over increased U.S. trade tariffs against the country. Singapore’s Straits Times index rose 0.4%, while Australian shares retreated on weak data. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Chinese stocks retreat from recent peaks after underwhelming PMIs China’s Shanghai Shenzhen CSI 300 was flat, while the Shanghai Composite index fell 0.1%. Both indexes traded below multi-year highs hit last week, and also appeared to be due for some consolidation after a stellar performance through August. Hong Kong’s Hang Seng index was flat. Weak purchasing managers index readings for August, released over the past two days, dampened optimism towards Chinese markets, keeping them rangebound since Monday. Government PMI data showed a bigger-than-expected decline in manufacturing activity, while private PMI data showed the manufacturing sector unexpectedly grew in August, albeit at a sluggish pace. The readings highlighted some falling off in Chinese business activity as support from Beijing ran dry, which could in turn herald more weakness in the world’s second-largest economy. But sustained economic weakness is expected to attract even more stimulus measures from Beijing. Hong Kong and Chinese chipmaking stocks were the worst performers on Tuesday, as they faced some profit-taking after bets on more Chinese self reliance for artificial intelligence boosted the sector in August. Australia stocks fall as markets brace for muted GDP Australia’s ASX 200 fell 0.3% on Tuesday, weighed by softer-than-expected net exports contribution data for the second quarter. The data showed Australia’s key commodity exports contributed far less to Q2 gross domestic product than expected. The GDP data will be released on Wednesday, and could now come in softer than expected. Market consensus is for a 0.5% quarter-on-quarter increase. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Still, Australia logged a smaller-than-expected current account deficit in the second quarter. AI computing powers are changing the stock market. Investing.com's ProPicks AI includes dozens of winning stock portfolios chosen by our advanced AI. Year to date, 3 out of 4 global portfolios are beating their benchmark indexes, with 98% in the green. Our flagship Tech Titans strategy doubled the S&P 500 within 18 months, including notable winners like Super Micro Computer (+185%) and AppLovin (+157%). Which stock will be the next to soar?

By Ankur Banerjee SINGAPORE (Reuters) -The dollar drifted on Friday, hovering near its lowest level in 3-1/2 years against the euro and sterling, as traders wagered on deeper U.S. rate cuts while awaiting trade deals ahead of a July deadline for President Donald Trump’s tariffs. Market focus this week has been on U.S. monetary policy. The prospect of Trump announcing the next Federal Reserve Chair, who is expected to be more dovish, earlier than usual to undermine the current chair Jerome Powell has raised odds of the central bank cutting rates. Powell, whose term ends in May, was also interpreted as being more dovish this week in testimony to U.S. Congress, adding to expectation of more rate cuts. Traders are now pricing in 64 basis points of easing this year versus 46 bps expected on Friday. "The sooner a replacement is announced for Powell, the sooner he could be perceived to be a ‘lame duck’," said Carol Kong, a currency strategist at Commonwealth Bank of Australia (OTC:CMWAY). The Wall Street Journal reported on Wednesday that Trump has toyed with the idea of selecting and announcing Powell’s replacement by September or October, a move analysts say could lead to the person operating as a shadow Fed chair, undermining Powell’s influence. Trump has not decided on a replacement for Powell and a decision is not imminent, a person familiar with the White House’s deliberations told Reuters on Thursday. "Such an outcome could introduce some volatility into financial markets if the nominee makes public comments markedly different to the current chair," CBA’s Kong said. "For now, expectations President Trump will choose a more dovish chair will keep downward pressure on FOMC pricing and the USD." The euro was steady at $1.1693 in early trading after hitting $1.1745 in the previous session, its highest since September 2021. Sterling last fetched $1.3733, just below the October 2021 top of $1.37701 touched on Thursday. The dollar index, which measures the U.S. unit versus six other currencies, was lingering near its lowest since March 2022 at 97.378, on course for a 2% decline in June, its sixth straight month in the red. The index has dropped more than 10% this year as Trump’s tariffs stoke U.S. growth worries, leading investors to look for alternatives. The yen was a bit weaker at 144.73 per dollar, while the Swiss franc was last at 0.8013 per dollar, perched near its strongest level in a decade. Investor attention will also be on progress on trade deals ahead of the July 9 deadline for Trump’s "reciprocal" tariffs as nations scramble to get an agreement over the line with the clock ticking. A White House official said on Thursday the U.S. has reached an agreement with China on how to expedite rare earths shipments to the United States. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year.. In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if CMWAY is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

Wall St futures, oil plunge, markets bay for US rate cuts  Reuters

Global stocks inch up, led by Asia; yen weakness keeps markets alert for BOJ intervention By Thandiwe Phakathi and Michael O. Chapman NEW YORK/LONDON/SINGAPORE, May 7, 2024 - Asian shares extended the...