^N225 - Nikkei 225

Osaka - Osaka Delayed price. Currency in JPY
23,215.71
-127.80 (-0.55%)
At close: 3:15PM JST
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Previous close23,343.51
Open23,126.93
Volume0
Day's range23,115.15 - 23,243.36
52-week range20,110.76 - 24,115.95
Avg. volume61,665
  • U.S. Futures Rise as Traders Weigh Virus, Earnings: Markets Wrap
    Bloomberg

    U.S. Futures Rise as Traders Weigh Virus, Earnings: Markets Wrap

    (Bloomberg) -- U.S. stock-index futures gained with European shares on Tuesday as investors divided their attention between corporate earnings and international efforts to contain the coronavirus. Treasuries fluctuated before edging lower and the dollar drifted.Contracts on the three main U.S. benchmarks advanced, signaling the underlying gauges will recoup some of their Monday slide. Apple Inc. rose in the pre-market after reportedly asking iPhone suppliers to boost output more than 10%. Harley-Davidson Inc. fell after its adjusted earnings missed estimates. The Stoxx Europe 600 Index recovered from an earlier reversal when Hong Kong’s administration said the city will close some border checkpoints and restrict flights and train services from the mainland.While China reported the virus’s death toll rose to 106 and confirmed cases nationwide jumped to 4,515, it also pledged to provide abundant liquidity for financial markets. Trading in the country is set to resume on Monday; the market in Hong Kong will reopen on Wednesday. Shares fell in Japan and tumbled in South Korea as trading there resumed after a break. The yen and crude oil swung between modest declines and gains.Investors are keeping an eye out for a slew of earnings due this week including from Apple Inc. on Tuesday while also monitoring the impact of the deadly pneumonia-like virus. Even as containment efforts intensify, the likelihood of the sickness disrupting global businesses and the world’s second-largest economy appears to be growing.“Risk appetite is unlikely to improve until we start getting news that the virus is under control,” DBS Group Holdings Ltd. strategists Philip Wee and Eugene Leow wrote in a note. “For now, the lack of positive news flow is likely to keep investors on the defensive.”The outbreak shattered a calm in markets that hadn’t seen a 1% up-or-down move in the S&P 500 since early October. The latest surge in demand for havens also sent bond yields tumbling, with the global supply of notes with negative rates surpassing $13 trillion, to the highest since November.Here are some events to watch out for this week:Earnings are due on Tuesday from Lockheed Martin, United Technologies and Apple; Wednesday brings reports from GE, Boeing and Facebook; Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.Fed policy makers on Wednesday are expected to open 2020 the same way they closed 2019 -- by holding interest rates steady.Goldman Sachs will hold its first-ever Investor Day on Wednesday.The BOE meeting is highly anticipated Thursday after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index gained 0.6% as of 8:22 a.m. New York time.Nasdaq 100 Index futures gained 0.8%.The Stoxx Europe 600 Index advanced 0.3%.South Korea’s Kospi index sank 3.1%.The MSCI Emerging Market Index decreased 0.5%.CurrenciesThe Bloomberg Dollar Spot Index was little changed at 1,200.19.The British pound decreased 0.4% to $1.301.The euro decreased 0.1% to $1.1007.The Japanese yen weakened 0.1% to 109.03 per dollar.The offshore yuan strengthened 0.2% to 6.9748 per dollar.BondsThe yield on 10-year Treasuries climbed one basis point to 1.62%.Germany’s 10-year yield climbed one basis point to -0.38%.Britain’s 10-year yield climbed two basis points to 0.527%.CommoditiesWest Texas Intermediate crude jumped 0.4% to $53.37 a barrel.Gold weakened 0.5% to $1,574.32 an ounce.Iron ore advanced 0.2% to $83.20 per metric ton.\--With assistance from Joanna Ossinger, Christopher Anstey and Cormac Mullen.To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.netTo contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • WeWork, Starbucks Shut Doors as Infections Spread: Virus Impact
    Bloomberg

    WeWork, Starbucks Shut Doors as Infections Spread: Virus Impact

    (Bloomberg) -- Starbucks Corp. and office-sharing company WeWork are shutting locations in China, while Facebook Inc., Nissan Motor Co. and other companies enact measures to shield employees in areas hardest hit by a deadly viral outbreak.WeWork is temporarily closing 55 offices across China and encouraging employees to work from home or in private rooms, it said in a statement Tuesday. Facebook employees based in China, and those who recently returned from trips to the country, are also being told to work from home, people familiar with the matter said.Apple Inc.’s supply chain is at risk of being disrupted. Virtually all of the world’s iPhones are made in China by contract manufacturers, and the company had been increasing production to meet higher-than-anticipated demand.Here is a summary of how some of the biggest companies are responding, as well as early analysts’ estimates of the impact:Jan. 28PricewaterhouseCoopers LLP: The accounting firm has suspended all business travel to Wuhan and employees returning from the city are required to work at home for two weeks before coming to the office, a spokeswoman said. The company extended Chinese New Year holidays for staff in Hong Kong and Macau to Jan. 31 and asked employees to work remotely where feasible following the holiday.Apple: “Supply chain disruption is a worry if employees across Foxconn and other component manufacturing hubs in China are restricted,” analyst Dan Ives of Wedbush Securities Inc. said. “If the China outbreak becomes more spread it could negatively impact the supply chain which would be a major investor worry.”Shiseido Co.: The Japan-based cosmetics maker has banned employee travel to China, with some exceptions, a spokesman for the company said Tuesday. The company got about 20% of revenue last year from the country, its biggest overseas market.Facebook: Travel limits, which went into effect Monday, halt non-essential travel to China by all Facebook employees, said the person, adding that if workers have to visit the country, they will need specific approval. The company declined to comment.Bayer AG: The German drug and chemical giant will donate about 1.5 million euros ($1.7 million) worth of medicines and financial aid to help support people affected by the outbreak. The cash portion of about 600,000 euros will mainly be used to pay for protective clothing for medical staff in Wuhan, Bayer said in a statement.Jan. 27Carnival Corp. and Royal Caribbean Cruises Ltd.: Carnival’s Costa Cruises brand, working with the Chinese government, decided to suspend nine voyages leaving China from Jan. 25 to Feb. 4. In a separate statement, Royal Caribbean said it suspended Jan. 27 and Jan. 31 sailings. Both pledged to provide refunds to customers. China is a small but growing market for American cruise companies, and analysts project further cancellations could hurt earnings.Fast Retailing Co.: The operator of the Uniqlo casual clothing chain, has shut about 50 of its stores in China temporarily, a spokeswoman said.Ryohin Keikaku Co.: Owner of the Muji clothing and housewares brand has closed some stores in Wuhan, according to a spokesman.Aeon Co.: Japan’s largest supermarket operator, expects sales from Wuhan area stores to drop by half, spokesman Makoto Sueyoshi said Monday. Aeon shuttered the three malls it operates in Wuhan, but its five general supermarkets were operating on a limited basis to sell daily goods and food.Nitori Holdings Co.: the Japan-based furniture and housewares retailer has closed seven stores in Wuhan, and shortened some store hours in other areas including Shanghai and Suzhou, spokeswoman Haruna Muramatsu said.Starbucks, McDonald’s Corp. and Domino’s Pizza Inc.: Of the three U.S. restaurant chains, Starbucks is the most exposed to the outbreak, as measured by percentage of worldwide revenue and operating income, according to Guggenheim analyst Matthew DiFrisco. “China represents a high growth region and a meaningful contributor to the longer-term global revenue growth goals for all three companies,” DiFrisco said in a note. The Seattle-based chain has about 4,100 cafes in China.Tesla Inc., Nio Inc. About 8 million cars were sold last year in the roughly 40 Chinese cities that have 10 or more diagnosed coronavirus cases, or 36.8% of total retail volumes in the country, Bernstein analysts estimate. Those cities accounted for 82.5% of Tesla’s retail volumes, and 68% of NIO’s, the analysts wrote in a note. “The latter looks especially vulnerable to a prolonged slump in EV sales,” they said.Imax Corp. The Mississauga, Ontario-based company, known for its large-format screen technology, has said it’s delaying movie releases at its theaters in China in the wake of the outbreak. The impact of lost revenue from the Chinese New Year will cost Imax at least $60 million in global box office sales, according to MKM Partners. If the epidemic lasts for a few more weeks, “it is not unreasonable to project” a shortfall of $200 million in the first quarter, MKM Partners analysts said in a note.Nissan: The automaker plans to evacuate most of its expatriates and their family members from Wuhan using chartered plane dispatched by the Japanese government, a company spokeswoman wrote in an email.GMO Internet Inc. The Japan-based internet infrastructure provider has told about 4,000 employees in the country to work from home after the confirmation of novel coronavirus cases in Japan, the Nikkei newspaper reported without saying where it got the information.Jan. 26Honda Motor Co. The automaker will evacuate from Wuhan about 30 Japanese workers and family using a government charter aircraft, family members and employees visiting on business trips, Teruhiko Tatebe, a Tokyo-based spokesman, said by phone. The carmaker has informed the Japanese government that it wishes to utilize a charter jet to evacuate Japanese citizens. A handful of staff needed to maintain local operations will remain in the city.The moves by companies highlight Wuhan’s importance as a manufacturing, shipping and business hub. The central Chinese city has more than 500 factories and other facilities, placing it 13th among 2,000 Chinese cities in Bloomberg’s supply chain database. It’s the capital of Hubei province, which has 1,016 such facilities, making it seventh of 32 such jurisdictions.Jan. 25Groupe PSA: The French maker of Peugeot cars and other brands said it will evacuate its expatriate staff and their families from the Wuhan area. A total of 38 people will leave, the company said in a statement.Hennes & Mauritz AB: The clothing retailer better known as H&M has closed a total of 13 stores in the region. Svenska Dagbladet reported. China is the company’s 5th biggest market in terms of revenue, with 524 stores as of Aug. 31.Ikea closed its warehouse in Wuhan on Thursday, according to the same report.Jan. 24Remy Cointreau SA: The French cognac maker abandoned its forecasts for this year after a slump in Hong Kong dented sales in the Christmas period and as the viral outbreak threatens business in China, the source of 20% of its profit, according to Jefferies estimates.McDonald’s: The fast-food giant, which had about 3,000 stores in China at the end of 2018, temporarily closed locations across five cities of the Hubei province due to the virus, including Wuhan. The Chicago-based company is taking extra preventative measures in the rest of the country, including taking the temperature of workers upon arrival and giving out hand sanitizers to diners.Walt Disney Co.: The world’s largest theme park operator said it would close its Disneyland resort in Shanghai effective Jan. 25. The company is offering refunds to guests who bought theme park tickets or reserved rooms in its hotels. “We will continue to carefully monitor the situation and be in close contact with the local government, and we will announce the reopening date upon confirmation,” it said in a statement.Delta Air Lines Inc.: The Atlanta-based carrier issued a travel waiver that allows passengers traveling to, from or through Beijing and Shanghai between Jan. 24 and Jan. 31 to change their itinerary once without having to pay a fee.Wynn Resorts Ltd.: The Chinese Lunar New Year is peak time for profits at casino operators. Authorities in Macau, the world’s largest gambling market, are requiring casinos to screen guests for high temperatures and make their staff wear respirator masks. Many Chinese tourists are also heading to Las Vegas to celebrate.Read More: Mapping the Coronavirus Outbreak Across the WorldJan. 23Avnet Inc.: The Phoenix-based distributor of computer products and semiconductors said it hadn’t seen an impact so far. “But if it gets worse and they start shutting down airplanes, et cetera, then that will have a different effect on shipments out of China,” CEO Bill Amelio said on a conference call.American Airlines Group Inc.: President Robert Isom said it is too soon to see an impact. “Our network isn’t that extensive in Asia. But we’re on top of it,” he said on a conference call. “We’ve seen viruses in the past that we’ve had to make accommodations for and to be prepared for, we’re doing all those same things right now.”Keppel Corp.: The Singapore-based owner of the largest oil-rig builder, which has about 170 employees in Wuhan and operations across China, said it hadn’t seen a direct impact either. “We have advised our operations there and our staff there to take the necessary precautions,” CEO Loh Chin Hua said on an earnings call.Read more: New Year Holiday Extended, China Deaths Jump in Virus CrisisJan. 22United Airlines Holdings Inc.: The U.S. carrier was among the first global corporations to comment on the coronavirus on an earnings conference call. “We’ve been coordinating closely with the CDC to ensure that we’re taking all the necessary steps to ensure that our customers and employees can travel safely,” CEO Oscar Munoz said. “By working closely together, we have in the past effectively managed situations like this.”(Updates with Bayer donation in Jan. 28 section)\--With assistance from Leslie Patton, Thomas Mulier, Thomas Buckley, Christopher Palmeri, Phil Kuntz, Mary Schlangenstein, Yukari Chilnik, Brian Moran, Kana Nishizawa, Craig Trudell, Jonathan Levin, Lisa Du, Grace Huang, Anna Kitanaka, Siraphob Thanthong-Knight, Kiuyan Wong, Masatsugu Horie and Anne Pollak.To contact Bloomberg News staff for this story: Cécile Daurat in Wilmington at cdaurat@bloomberg.netTo contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, ;Kazunori Takada at ktakada17@bloomberg.net, Dave McCombs, Reed StevensonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stocks Tumble Around the World on Virus Jitters: Markets Wrap
    Bloomberg

    Stocks Tumble Around the World on Virus Jitters: Markets Wrap

    (Bloomberg) -- Stocks slumped and bonds rallied as concern over the impact of a deadly virus that originated in China rattled global markets.The S&P 500 Index fell the most in almost four months, the Dow Jones Industrial Average erased its 2020 gain and the Nasdaq-100 Index had the biggest drop since August. Chipmakers, cruise lines and casino operators were among the hardest hit as investors fled companies with close links to China. A gauge of U.S. equity volatility surged above its one-year average. European and emerging-market shares slid to the lowest since mid-December.Equity Pounding Feels Awful But Is Pretty Much Right on ScheduleChina’s financial markets will remain closed until next Monday after authorities extended the Lunar New Year break by three days as they grapple with the virus crisis. Assets that track the country’s largest stocks took a nosedive, with the iShares MSCI China ETF and Invesco China Technology ETF dropping more than 3.5%. China-based Alibaba Group Holding Ltd. and Yum China Holdings Inc. also slid. The offshore yuan sank, breaching key technical levels.The flight to safety, which comes ahead of this week’s Federal Reserve meeting, saw volumes in Treasury futures jump to double their regular levels in Asia. The yield on 10-year U.S. bonds dropped to the lowest since October, while the dollar rose. The Swiss franc, the Japanese yen and gold paced gains in haven assets. Oil slipped to a more than three-month low, copper had its longest slump since 2014 and iron ore tumbled.Fears that China has failed to contain the pneumonia-like virus -- which has killed at least 80 people and infected more than 2,700 -- roiled markets at the start of a week jam-packed with corporate earnings. The outbreak has shattered a calm in markets that hasn’t seen a 1% up-or-down move in the S&P 500 since early October.Traders Eye Technicals to Predict Where Latest Stock Rout Ends“This is now a sell first, ask questions later situation,” said Alec Young, managing director of global markets research at FTSE Russell. “Markets hate uncertainty, and the coronavirus is the ultimate uncertainty -- no one knows how badly it will impact the global economy. China is the biggest driver of global growth, so this couldn’t have started in a worse place.”As global shares sell off, JPMorgan Chase & Co. strategists say this could end up a buying opportunity. They retained a constructive view on world equities, adding that in the past, the more stocks have fallen on similar fears, the more they have rebounded later. Both the S&P 500 and MSCI All-Country World Index surged to records this month as 2020 started on a jubilant note amid optimism over the U.S.-China trade deal.“We thought the markets were overdue for a pullback,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told Bloomberg TV. “Valuations are extremely stretched right now and positioning is extremely euphoric. We’ve said that if the right catalyst came along, markets would be ripe for a pullback.”Rare VIX Inversion Points to Potential End of U.S. Equity RoutHere are some events to watch out for this week:Tech giants Apple, SAP, Facebook, Samsung and South Korean chip maker SK Hynix announce earnings, as do Boeing, International Paper, GE, United Technologies, Lockheed Martin, Caterpillar, Unilever, Exxon Mobil, Shell and Chevron.Fed policy makers are expected to open 2020 the same way they closed 2019 -- by holding interest rates steady Wednesday.Goldman Sachs will hold its first-ever Investor Day on Wednesday.The BOE meeting is highly anticipated Thursday after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.These are some of the main moves in markets:StocksThe S&P 500 slid 1.6% as of 4 p.m. New York time.The Stoxx Europe 600 Index sank 2.3%.The MSCI Emerging Market Index fell 1.5%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.2%.The euro was little changed at $1.102.The Japanese yen appreciated 0.4% to 108.88 per dollar.BondsThe yield on 10-year Treasuries slid nine basis points to 1.60%.Germany’s 10-year yield dipped five basis points to -0.39%.Britain’s 10-year yield declined five basis points to 0.508%.CommoditiesThe Bloomberg Commodity Index decreased 1.4%.West Texas Intermediate crude dipped to $53.14 a barrel.Gold rose 0.3% to $1,583.70 an ounce.\--With assistance from Alfred Cang, Saket Sundria, Cormac Mullen, Todd White, Yakob Peterseil, Sophie Caronello, Nancy Moran and Sarah Ponczek.To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Rita NazarethFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Crude Oil as the Weakest Link in China’s Coronavirus Panic
    FX Empire

    Crude Oil as the Weakest Link in China’s Coronavirus Panic

    The global financial markets remain under pressure, gripped by fears of the new coronavirus’ impact on the economy.

  • Japan’s Nikkei Index Lower, Demand for Safe-Haven Yen Rises as Coronavirus Fears Increase
    FX Empire

    Japan’s Nikkei Index Lower, Demand for Safe-Haven Yen Rises as Coronavirus Fears Increase

    The Yuan fell in offshore trade on Monday as the death toll in China from the spread of a pneumonia-like virus mounted.

  • Financial Times

    Is Singapore’s ‘perfect’ economy coming apart?

    From around 10pm until the early hours of the morning, Aziz drives a private hire car through the street-lit hinterlands of Singapore. In his early 50s, Aziz — not his real name — was retrenched from his job in a professional services company two years ago and turned to the gig economy to make ends meet, joining hundreds of other former white-collar workers in a nocturnal demi-monde of midrange saloons and weary discontent. Singaporeans like Aziz struggle to get back into the workforce.

  • Stocks Post Biggest Drop Since October on Virus: Markets Wrap
    Bloomberg

    Stocks Post Biggest Drop Since October on Virus: Markets Wrap

    (Bloomberg) -- The spread of a deadly respiratory virus rattled global markets, sending U.S. stocks lower and fueling demand for havens in government bonds and gold. Oil fell for a fourth day on concern the outbreak will dent economic growth.The S&P 500 Index posted its biggest drop since October amid reports that U.S. officials had confirmed two more cases of the illness, which originated in China and has also spread to several countries in Asia and to Europe. Benchmark Treasury yields fell to a three-month low, while the dollar advanced for a second day.Investors are exercising caution with stocks close to all-time highs, cognizant of the chance the respiratory virus migrates across the world and develops into a more devastating pandemic like the SARS illness that emerged 17 years ago. Officials in China boosted travel restrictions to cover 40 million people to contain the virus’s spread.“Investors can’t help but be unnerved by constant headlines of new cases all over the world,” said Alec Young, managing director of global markets research at FTSE Russell. “To make matters worse, the market will be closed when we get the next update on the virus’ spread over the weekend. As such, this is quickly turning into a sell first, ask questions later environment.”In company news, United Airlines Holdings Inc. and American Airlines Group Inc. each slid more than 3% on concern the virus will limit demand for air travel and tourism. Financial shares also sank, with Citigroup Inc. down almost 2% as UBS warned the sector could be hurt by less credit-card spending and a decline in cross-border payments.Health shares were among the worst performers Friday on growing speculation that upcoming elections in the U.S. may prompt lawmakers to take action on the increasing cost of medicines in the U.S. Intel Corp. was a rare bright spot after giving a bullish revenue forecast.Elsewhere, the pound slipped for a second day versus the dollar, giving back some of its rally from earlier in the week.These are the main moves in markets:StocksThe S&P 500 Index fell 0.9% at the close of trading in New York; it lost 1% for the week.The Stoxx Europe 600 Index added 0.9%.The MSCI AC Asia Pacific Index fell 0.1%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The British pound declined 0.4% to $1.3076.The euro fell 0.3% to $1.1027.The Japanese yen rose 0.2% to 109.29 per dollar.BondsThe yield on 10-year Treasuries fell five basis points 1.69%.Britain’s 10-year yield dipped three basis points to 0.56%.Germany’s 10-year yield fell three basis points to -0.34%.CommoditiesWest Texas Intermediate crude declined 2.2% to $54.39 a barrel.Gold rose 0.5% to $1,571.30 an ounce.\--With assistance from Cecile Gutscher, Adam Haigh and Brian Chappatta.To contact the reporters on this story: Brendan Walsh in Austin at bwalsh8@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh, Randall JensenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Asian Shares Steady after WHO Says ‘Too Early’ to Call Corona Virus Outbreak Global Health Emergency
    FX Empire

    Asian Shares Steady after WHO Says ‘Too Early’ to Call Corona Virus Outbreak Global Health Emergency

    The World Health Organization (WHO) on Thursday said at a press conference the outbreak did not yet constitute a global public health emergency.

  • For Japan’s Bullish Chartists, Stocks Could Rally Like It’s 1989
    Bloomberg

    For Japan’s Bullish Chartists, Stocks Could Rally Like It’s 1989

    (Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.Japan’s stock market could rally toward levels unseen since before the nation’s economic bubble burst about three decades ago, if so-called golden cross patterns are any guide.For that to happen, the Nikkei 225 Stock Average would have to climb enough so that its 12-month moving average goes above its 24-month average, forming a golden cross, according to Yukihiro Takahashi, a manager at Ichiyoshi Securities Co. in Tokyo.Definitions of such technical terms differ from analyst to analyst, based on moving averages for various time periods as well as other factors. In Takahashi’s analysis, golden crosses have occurred four times on the Nikkei 225 since 1980, with the most recent being in January 2013, when the gauge extended a rally that drove it higher for six of the past seven years.“A golden cross would require the Nikkei 225 to surpass the highest price seen in October 2018,” Takahashi said. “Even if it doesn’t form this month, looking at the MA lines, it will most certainly form next month.”Takahashi points out that a golden cross formed in the 1980s, during which Japan’s asset bubble boosted stocks to a record high in 1989. A new golden cross would signal the Nikkei 225 can keep advancing until August 2022 and possibly reach 29,000, he said. The trend will continue if the benchmark average’s 60-month moving average maintains its upward slope, he added.Naohiko Miyata, the chief technical analyst at Mitsubishi UFJ Morgan Stanley Securities Co., said the golden cross and other technical indicators suggest the market is in the midst of a strong trend. The blue-chip stock gauge has recovered about half of the drop from its 1989 peak to its 2009 low.“At a minimum, the Nikkei 225 could climb to 28,000, and it’s not a dream for the gauge to try for 30,000 next fiscal year,” Miyata said.The Nikkei 225 was little changed at 23,782.67 as of 11:30 a.m. in Tokyo.While the technical picture may look good for stocks, eventually the rosy outlook will have to be backed by fundamentals, said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute Co. There’s still a risk that the market may retreat given its rapid gains toward the end of last year, he said. The Nikkei 225 climbed 8.7% during the October-December period, its biggest quarterly advance in two years.“Right now, long-term market views are completely split between fundamentals and technicals,” Nakamura said. “Markets are carrying risk as shares are driven upward without strong fundamentals to back it up.”(Adds Nikkei 225’s current level in eighth paragraph)To contact the reporters on this story: Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net;Shoko Oda in Tokyo at soda13@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Naoto Hosoda, Kurt SchusslerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stocks Edge Higher With Virus Fallout in Focus: Markets Wrap
    Bloomberg

    Stocks Edge Higher With Virus Fallout in Focus: Markets Wrap

    (Bloomberg) -- For a fresh perspective on the stories that matter in Australian business and politics, sign up for our new weekly newsletter.U.S. stocks eked out a small advance, dodging the losses that took hold in Europe and Asia, as investors evaluated the risk that a deadly respiratory virus spreading from China could curb global growth. Treasuries climbed and oil dropped.Gains for big tech companies overshadowed losses for makers of consumer goods, providing just enough lift to send the Nasdaq Composite Index to a fresh record high. Other markets showed greater concern about the potential fallout, with oil sinking to its lowest level since November on speculation the virus could dent demand. Government bonds and the yen rallied as investors sought out havens.Earlier, China’s Shanghai Composite Index plunged 2.8% on the last trading day before the Lunar New Year holiday, the biggest drop in eight months, as traders considered the virus’s potential impact on travel and shopping.While corporate earnings have beaten analysts’ estimates this season amid signals that global growth is picking up, investors are cautious with stocks trading at lofty valuations. Fewer than 20 deaths have been tallied from the Chinese virus, and the World Health Organization opted against calling the outbreak a public health emergency of international concern. But traders are hesitant to take on risk on the chance the outbreak could develop into something like the much more devastating SARS respiratory illness that emerged in China 17 years ago.“There is concern that this may become a much bigger event,” said Quincy Krosby, chief market strategist for Prudential Financial Inc. “The market is vulnerable to a pullback or a consolidation.”Elsewhere, emerging-market stocks fell to a two-week low. Mining companies led the Stoxx Europe 600 Index lower. The euro weakened after policy makers held interest rates steady and European Central Bank President Christine Lagarde said officials will look into the potential side effects of negative interest rates.Read more on the impact from the virus:Singapore Reports Virus Case as China Limits Some TravelDeadly Virus Turns Wuhan Into a No-Go Zone for AirlinesChinese Stocks Plunge in Worst End to Lunar Year on RecordHere are some events to watch out for this week:Companies including Intel Corp. and Procter & Gamble Co. will post results.Eurozone PMI data is due Friday.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index rose 0.1% at the close of trade in New York; the Nasdaq Composite added 0.2%.The Stoxx Europe 600 Index fell 0.7%.The MSCI Asia Pacific Index dipped 0.8%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro fell 0.3% to $1.1055.The British pound fell 0.2% to $1.3121.The Japanese yen gained 0.3% to 109.49 per dollar.BondsThe yield on 10-year Treasuries dipped four basis points to 1.73%.Germany’s 10-year yield fell five basis points to -0.31%.Britain’s 10-year yield decreased five basis points to 0.59%.CommoditiesWest Texas Intermediate crude decreased 2% to $55.59 a barrel.Gold rose 0.3% to $1,562.72 an ounce.\--With assistance from Gregor Stuart Hunter, Adam Haigh, Todd White and David Wilson.To contact the reporter on this story: Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Mainland China Shares Plunge Ahead of World Health Organization Global Health Emergency Decision
    FX Empire

    Mainland China Shares Plunge Ahead of World Health Organization Global Health Emergency Decision

    Australian employment outpaced forecasts for a second month in December pushing the jobless rate to a nine-month low, a much-needed improvement that could forestall a near-term cut in interest rates. Japan posted a deficit for a second straight year last year as its exports were hurt by a slowdown of demand in China amid a tariff war with the United States.

  • Stocks Edge Higher in Choppy Trading; Oil Sinks: Markets Wrap
    Bloomberg

    Stocks Edge Higher in Choppy Trading; Oil Sinks: Markets Wrap

    (Bloomberg) -- U.S. stocks edged higher in volatile trading as investors considered the potential for a virus that emerged in China to eventually dent economic growth. Oil tumbled on concern the market is oversupplied.The S&P 500 Index ended the day up less than 0.1%, lifted by gains in technology shares and positive earnings reports but held back by concern that the deadly respiratory illness could spread, even as China moved to contain the outbreak. IBM rose the most in four months after revenue beat estimates. Tesla Inc.’s market value soared past $100 billion.With stocks trading near records, investors are on alert for any developments that could derail the momentum. They have taken a cautious stance amid concern the coronavirus that has already killed 17 people could turn into a global pandemic.“The fear is that it could hurt growth, that this could continue to have an impact on global markets that are already reeling from the impacts of trade,” said Matt Forester, chief investment officer at BNY Mellon’s Lockwood Advisors.Elsewhere, the Stoxx Europe 600 Index dipped as Italian banks slumped amid a fresh bout of political turmoil.West Texas oil fell below $58 a barrel as ample global supplies offset the loss of exports from Libya. The pound strengthened after Prime Minister Boris Johnson’s Brexit deal cleared its final hurdles in Parliament.Here are some events to watch out for this week:Companies including Texas Instruments Inc., Intel Corp. and Procter & Gamble Co. will post results.Policy decisions are due from central banks in Indonesia and the euro region.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index rose less than 0.1% at the close of trade in New York.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index added 0.6%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The British pound jumped 0.6% to $1.3134.The euro rose 0.1% to $1.109.The Japanese yen was little changed at 109.87 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 1.77%.Germany’s 10-year yield dipped one basis point to -0.26%.Britain’s 10-year yield was little changed at 0.63%.CommoditiesWest Texas Intermediate crude dropped 2.9% to $56.67 a barrel.Gold was little changed at $1,558.55 an ounce.\--With assistance from Christopher Anstey, Andrew Janes, Adam Haigh, Todd White, Robert Brand, Sheela Tobben, Vildana Hajric and Sarah Ponczek.To contact the reporter on this story: Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Asian Shares Recover from Early Weakness; South Korean KOSPI Jumps on Surge in Government Spending
    FX Empire

    Asian Shares Recover from Early Weakness; South Korean KOSPI Jumps on Surge in Government Spending

    Seoul shares ended sharply higher after data showed South Korea’s government spending surge helped the economy post its fastest quarterly growth in more than two years.

  • Stocks Slide After Deadly Virus Migrates to U.S.: Markets Wrap
    Bloomberg

    Stocks Slide After Deadly Virus Migrates to U.S.: Markets Wrap

    (Bloomberg) -- U.S. equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact.Industrial and consumer shares were among the worst performers as the S&P 500 Index pulled back from a record. That followed retreats in Asia and Europe, with Hong Kong the hardest hit. Luxury stocks posted their biggest drop since October on worries the virus will disrupt spending during a key Chinese holiday period. Banks declined after UBS Group AG missed profitability targets; Boeing slumped on speculation its 737 Max jet wouldn’t be cleared to fly until mid-year.The risk-off mood helped support some traditional haven assets, and the yen and Treasuries advanced.Read more: China Virus Concern Hammers Asian Stock SentimentThe emergence of the illness in China -- and concerns it will now spread outside the country -- stirred memories of the SARS outbreak 17 years ago for some market watchers, though it isn’t yet as serious. The developments provided an excuse for investors who bid up U.S. stocks to record highs last week to take a pause and assess the outlook for global growth and corporate profits as earnings season picks up.“History tells us that most of these situations can be contained,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “What we would watch for is does it become a big enough issue that it actually starts to change consumer behavior?”Elsewhere, Germany’s DAX Index briefly surpassed the peak reached two years ago. The Stoxx Europe 600 Index posted a second day of losses. The Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Crude held below $60 a barrel as ample global supplies offset the loss of exports from Libya.Here are some events to watch out for this week:Companies including IBM, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks in Canada, Indonesia and the euro zone.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, is underway in Davos, Switzerland.These are the main moves in markets:StocksThe S&P 500 Index fell 0.3% at the close of trading in New York.The Stoxx Europe 600 Index sank 0.1%.The MSCI Asia Pacific Index fell 1.2%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro slipped 0.1% to $1.1088.The British pound gained 0.3% to $1.3045.The Japanese yen climbed 0.3% to 109.81 per dollar.BondsThe yield on 10-year Treasuries dipped five basis points to 1.77%.Germany’s 10-year yield fell three basis points to -0.25%.Britain’s 10-year yield fell two basis points to 0.63%.CommoditiesWest Texas Intermediate crude slumped 0.3% to $58.34 a barrel.Gold fell 0.1% to $1,558.62 an ounce.\--With assistance from Livia Yap, Eric Lam, Ranjeetha Pakiam, Cormac Mullen, Todd White, Sam Potter and Claire Ballentine.To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Escalating Coronavirus Outbreak Pressures Asian Indexes; Hong Kong Tumbles on Moody’s Downgrade
    FX Empire

    Escalating Coronavirus Outbreak Pressures Asian Indexes; Hong Kong Tumbles on Moody’s Downgrade

    Stocks in Hong Kong led losses regionally among major Asian markets on Tuesday after ratings agency Moody’s cut its rating for the city to Aa3 from Aa2 on Monday.

  • Asian Shares Mostly Higher; Chinese Pharmaceuticals Soar on Coronavirus Fears
    FX Empire

    Asian Shares Mostly Higher; Chinese Pharmaceuticals Soar on Coronavirus Fears

    Chinese pharmaceutical stocks skyrocketed Monday as China reported more than 100 new cases of pneumonia caused by a new strain of coronavirus.

  • Asian Shares Post Solid Weekly Gains Amid Trade Deal Signing, China GDP Growth
    FX Empire

    Asian Shares Post Solid Weekly Gains Amid Trade Deal Signing, China GDP Growth

    The United States removed China from a list of countries considered currency manipulators just two days before top trade negotiators for Washington and Beijing signed a key “Phase One” trade deal, the Treasury Department announced on January 13.

  • Stocks Surge to Record Highs; Dollar Strengthens: Markets Wrap
    Bloomberg

    Stocks Surge to Record Highs; Dollar Strengthens: Markets Wrap

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks extended this week’s relentless push to all-time highs as positive U.S. and China economic data, low interest rates and easing trade tensions propelled investor optimism. The dollar strengthened and gold climbed.The benchmark S&P 500 Index, along with the tech heavy Nasdaq Composite, set record highs for an eighth consecutive trading session. Boeing Co. slumped after a Fitch downgrade, weighing on the Dow Jones Industrial Average. The Stoxx Europe 600 Index closed at a record, posting its biggest gain since mid-December.“The headwinds of last year have dissipated and we’ve gotten more clarity on the backdrop. That clarity is helping to solidify marginal improvement in risk assets,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions, which oversees $1 trillion “The big one is going to earnings, and so far so good.”The longest-dated Treasuries dipped after the U.S. announced plans for a new 20-year bond. The dollar increased against its major peers including the euro and pound, with the latter reversing gains while gilts turned higher after U.K. retail sales data disappointed.Investors in risk assets headed into the weekend looking confident after the completion of an initial Sino-American trade deal and solid results from the biggest banks on Wall Street. U.S. markets are closed Monday for the Martin Luther King Jr. holiday. The earnings season continues to ramp up next week with Procter & Gamble Co. and Intel Corp. reporting, but for now most economic data is supporting sentiment: China GDP was in line with estimates, while housing starts surged in the U.S.“At this stage of the game we’ve got a Fed that’s committed to staying on hold, you’ve got a belief that there’s a signal of easing, and some improvement in the economic data globally,” Kathy Jones, chief fixed income strategist at Charles Schwab, said on Bloomberg Television. “That’s helping propel markets.”Elsewhere, oil slumped for a second week as optimism following the signing of the America-China trade agreement offset signs that supplies remain plentiful.Emerging-market equities also climbed for a seventh week of gains.These are the major market moves: \--With assistance from Elena Popina.To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Asian Indexes Boosted by China GDP Growth; Australian Shares Hit Another Record High
    FX Empire

    Asian Indexes Boosted by China GDP Growth; Australian Shares Hit Another Record High

    Other Chinese economic data released alongside the GDP numbers showed growth in industrial output and retail sales for the month of December. Analysts read the data from Beijing positively, although there was still some caution about the partial trade deal with the U.S.

  • Tech, Financial Shares Lead Surge to Record Highs: Markets Wrap
    Bloomberg

    Tech, Financial Shares Lead Surge to Record Highs: Markets Wrap

    (Bloomberg) -- For a fresh perspective on the stories that matter for Australian business and politics, sign up for our new weekly newsletter.The record-setting rally in U.S. equities accelerated in the wake of Wednesday’s China trade deal and signs consumer demand remains strong. Bond yields rose.All three main U.S. stock benchmarks surged to all-time highs after setting multiple records earlier this week, with technology and financial shares leading the surge. Alphabet Inc.’s market valuation hit $1 trillion for the first time. Banks and chipmakers rallied after solid earnings reports from Taiwan Semiconductor Manufacturing Co. and Morgan Stanley. Treasuries fell after data showed U.S. retail sales strengthened in December, while the dollar gained.“The consumer is really in positive shape,” said Ryan Detrick, senior market strategist at LPL Financial. “Then when you factor in the alleviation of the U.S.-China tensions, the market is in a pretty good spot.”The Senate approved President Donald Trump’s U.S.-Mexico-Canada free trade agreement, handing the president a major political win on the same day senators were sworn in as jurors in his impeachment trial.The formal signing of a phase one deal between the world’s two biggest economies has put the trade war on hold as far as many investors are concerned. Assuming the detente lasts, traders will be seeking fresh catalysts, most likely in economic data and the ramp-up of earnings season.“The question is if we can keep up the momentum,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial. “Up next, housing, an economic bellwether, which will provide yet another data point of how our economy closed out the year.”West Texas crude fluctuated in a narrow range before pushing higher.Elsewhere, the Stoxx Europe 600 Index closed at a record high after swinging between gains and losses. The euro erased earlier gains, while most European bonds edged up. The ruble slipped in the wake of Russian President Vladimir Putin’s call for sweeping constitutional changes and subsequent replacement of his long-serving prime minister.Meanwhile, soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.Here are some events to watch for this week:China GDP, along with key monthly data for December, come on Friday.A final reading on the euro-zone’s December inflation is also due on Friday.There are some of the main moves in markets:\--With assistance from Cecile Gutscher.To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Asian Stocks Firm; Australian Shares Pass 7000-Point Milestone
    FX Empire

    Asian Stocks Firm; Australian Shares Pass 7000-Point Milestone

    The Australian share market surged into record territory on Thursday, passing the 7000-point milestone for the first time ever. The Bank of Japan is expected to keep monetary policy steady next week.

  • Anxious Markets Await Trade Deal Signing, Futures Are Flat, U.S. Data Surprises
    FX Empire

    Anxious Markets Await Trade Deal Signing, Futures Are Flat, U.S. Data Surprises

    Global markets are mixed as traders wait for the Phase One deal signing. The details so far suggest the Phase One deal is far less than the market was expecting.

  • Asian Shares Finishes Lower on Investor Trepidation Ahead of Trade Deal Signing
    FX Empire

    Asian Shares Finishes Lower on Investor Trepidation Ahead of Trade Deal Signing

    The fact that tariffs are likely to remain in place until after the 2020 U.S. presidential elections is rattling investors along with U.S. Treasury Secretary Steven Mnuchin’s comment that existing tariffs on Chinese goods would stay, pending further talks.

  • Markets take fright as coronavirus fears worsen
    Reuters Videos

    Markets take fright as coronavirus fears worsen

    As China grapples with the coronavirus, markets are grappling with their nerves - and on Monday, losing the battle. World shares hitting two week lows as worries grew over the economic impact of the infection. The MSCI All-Country World Index - tracking shares in nearly 50 countries - was down over 0.4 of a per cent. taken on their own, the Nikkei saw, at 2 per cent, its biggest one-day fall in five months. Europe's bourses were down by similar - putting them on course to their worst day in nearly two months. Taking a big part of the hit: the airline sector, hotels, miners - and luxury goods. LVMH, Christian Dior, Hermes and Gucci owner Kering - all heavily reliant on Chinese demand - fell more than 3%. Unsurprisingly, safe haven bonds were in demand - and gold surged. Oil also suffered a big fall, prices below 60 dollars a barrel for the first time in nearly three months. Chinese officials say the ability of the coronavirus to be passed on is getting stronger and infections could continue to rise. The government has also extended the Lunar New Year Holiday by 3 days, in an effort to curb the spread. But this is a week that also sees Federal Reserve and Bank of England rate meetings. Any unexpected hints of tightening of ultra-loose monetary policy would, say traders, add another layer of anxiety.