11
Saturday
July 2020
4:28 AM IST
News Headlines
Missing Mayor found dead in north Seoul        Heavy rain hits scenic central Japan, more damage in south        Bikru bloodbath mastermind Vikas Dubey nabbed in MP town        NIA to probe gold smuggling case, ex-Consulate woman employee moves HC for anticipatory bail        Kerala reports biggest daily spike of 339 infections,COVID-19 tally crosses 6,500 mark        Holder wins early battle with Stokes as Windies take control        Ganguly announces cancellation of Asia Cup in September        We have asked every state to adopt one sport: Rijiju        Rupee slips 9 paise to 75.02 against USD        ICICI Bank to raise up to Rs 15,000 crore to bolster capital base        Trump threatens to cut federal aid if schools don't reopen        Pak PM urges world community to share info on COVID-19 strategies as tally rises to 239,225        Enhancing global cooperation need of the hour to effectively tackle COVID-19: Prez        Kanpur encounter: 2 policemen held for 'tipping off' gangster Vikas Dubey about police action        CBSE should explain rationale behind dropping certain chapters from curriculum: Sisodia        301 test positive in Kerala,COVID-19 tally crosses 6,000 mark        Dhoni turns 39, wishes pour in from all corners        New era for cricket as England-West Indies series begins        India''s COVID-19 tally, fatality rate per million population lowest in world: Govt        Rahul asks why no mention of Galwan Valley in MEA statement on talks        
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Business News
Asian shares slide after Wall Street retreat
 
Tokyo: Asian shares were mostly lower Thursday, with Tokyo dropping more than 1 per cent as the Japanese yen gained after the Federal Reserve said it would keep interest rates low through 2022.

Asian markets had been expected to fall after the Fed signaled a long path to recovery from the devastation of the coronavirus pandemic.

Overnight, stocks ended a bumpy day mostly lower on Wall Street, though gains for several big technology companies helped push the Nasdaq above 10,000 for the first time. It gained 0.7 per cent, to 10,020.35.

The Fed has cut its benchmark short-term rate to near zero, making the dollar less attractive for investors, as part of a historic effort to counter the economic ravages of the coronavirus pandemic.

Investors tend to seek refuge in the yen in times of financial turmoil, but a strong yen tends to hurt Japan's major exporters, such as Toyota Motor Corp. and Fast Retailing Co.

Toyota shares fell 1.9 per cent while Fast Retailing's also dropped 1.9 per cent by midday.

The dollar fell to 106.98 Japanese yen from 107.12 yen late Wednesday. The euro rose to 1.1387 from 1.1377.

Japan's benchmark Nikkei 225 lost 1.2per cent to 22,842.90 and South Korea's Kospi edged 0.2per cent lower to 2,190.74. Australia's S&P/ASX 200 sank 2.3per cent to 6,010.20.

Hong Kong's Hang Seng gained 0.3per cent to 24,970.72, while the Shanghai Composite was little changed, inching down less than 0.1per cent to 2,943.11.

On Wednesday, the S&P 500 fell 0.5per cent to 3,190.14 and the Dow Jones Industrial Average fell 1per cent to 26,989.99. Small company stocks bore the brunt of the selling, with the Russell 2000 index losing 2.6per cent to 1,467.39.

Bond yields were broadly lower, reflecting renewed caution among investors.

The yield on the 10-year Treasury yield slid to 0.72per cent from 0.82per cent late Wednesday. It tends to move with investors' expectations of the economy and inflation, though it's still well above the 0.64per cent level where it started last week.

The Federal Reserve emphasized Wednesday that the central bank will keep providing support to the economy by buying bonds to maintain low borrowing rates.

It forecast no rate hike through 2022, which could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.

The move to leave its key interest rate unchanged wasn't a surprise to investors, but it was seen as an ominous signal given that nearly all of the members of the central bank's Federal Open Market Committee foresee no rate hike through 2022 was noteworthy, said Brian Nick, chief investment strategist at Nuveen.

What you have on the FOMC is unanimity that rates ought to stay low and that their communication should continue to emphasize that they're not going to raise interest rates, absent a material improvement in the economy, he said.

The combination of low interest rates and low inflation has been a key driver for gains in big technology companies that can grow almost regardless of the economy.

That's been the magic formula for growth stocks, Nick said.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Fed and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that's growing again. The S&P 500, a benchmark for many index funds, is now within 6per cent of reclaiming the all-time high it reached in February.

Still, uncertainty remains over how quickly economies can recover from the pandemic, given that the numbers of infections and fatalities are still rising in many countries.

Fed Chair Jerome Powell said employment data for May that showed employers added jobs instead of slashing more was encouraging but hardly enough to ensure the labor market or economy is back on track.

The labor market may have hit bottom in May, Powell said. But, he added, we're not going to overreact to a single data point. In other trading, benchmark U.S. crude oil fell 97 cents to 38.63 a barrel in electronic trading on the New York Mercantile Exchange. It rose 1.7per cent to settle at 39.60 a barrel on Wednesday. Brent crude, the international standard, fell 90 slipped to 40.83 a barrel.

The Organization for Economic Cooperation and Development said Wednesday that the coronavirus crisis has triggered the worst global recession in nearly a century. It projected that the global economy will shrink by 6per cent this year in a best-case scenario, with only a modest uptick next year.

The estimate, which is based on an analysis of the latest global economic data, suggests an even sharper decline of 7.6per cent if there is a second wave of coronavirus outbreaks this year.


Rupee slips 9 paise to 75.02 against USD
ICICI Bank to raise up to Rs 15,000 crore to bolster capital base
Gold jumps Rs 102, silver declines Rs 249
Finmin may review capital requirement of PSU banks after second quarter
I-T dept amends TDS form, makes it more comprehensive
Pak will complete CPEC at all costs, says PM Khan
COVID-19 caused huge demand destruction overseas: Bankers
Intel Capital to buy 0.39 pc stake in Jio Platforms for Rs 1,894 cr
Sensex surges over 200 pts in early trade; Nifty tops 10,600
India's trade deficit with China reduces to USD 48.66 bn in FY20
Work to begin shortly on Zojila tunnel: Gadkari
ONGC shares tank 4 pc after first-ever quarterly loss
Vodafone Idea shares plunge nearly 5 pc after FY20 earnings
Diesel price at new high as fuel prices hiked for 22nd time in just over 3 weeks
Prestige group's FY20 sales bookings flat at Rs 4,560 crore
No plans to sell non-core assets during this fiscal: PNB Chief
Petrol price up 25 paise, diesel 21 paise; rates hiked by Rs 9.12, Rs 11.01 in 3 weeks
SBI sanctions loans to over 4 lakh MSMEs under credit guarantee scheme
Money in Swiss banks: India at 77th place, accounts for just 0.06% of all foreign funds
Asian shares advance, tracking Wall Street tech rally
KERALA NEWS
Kerala reports biggest daily spike of 339 infections,COVID-19 tally crosses 6,500 mark
 Thiruvananthapuram: With COVID19 cases continuing to spiral, Kerala on Thursday recorded the biggest  
Kerala reports 272 fresh cases; 68 infected through contact
Will take appropriate decision at appropriate time:Jose K Mani
Kerala reports 131 new COVID cases, 75 recoveries, 2,112 patients under treatment
INTERNATIONAL NEWS
Missing Mayor found dead in north Seoul
 Seoul: The Mayor of this South Korean capital was found dead at Bugaksan mountain here on Thursday,
Heavy rain hits scenic central Japan, more damage in south
Trump threatens to cut federal aid if schools don't reopen
Pak PM urges world community to share info on COVID-19 strategies as tally rises to 239,225
NATIONAL NEWS
Bikru bloodbath mastermind Vikas Dubey nabbed in MP town
 Ujjain: History-sheeter Vikas Dubey ? the prime accused for whom Uttar Pradesh Police had launched a
Enhancing global cooperation need of the hour to effectively tackle COVID-19: Prez
Kanpur encounter: 2 policemen held for 'tipping off' gangster Vikas Dubey about police action
CBSE should explain rationale behind dropping certain chapters from curriculum: Sisodia
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