Asia / Pacific

A dark cloud of Middle East conflict is once more looming above the financial markets. Geopolitical risks are back on the radar of investors, despite the fact that 'the shock of initial U.S. - Israeli strikes on Iran will not be repeated, barring a shocking twist such as a U.S. invasion on ground. The relief from falling oil and inflation pressures that followed the US-Iran truce struck in April has now evaporated. Investors, however flimsy the ceasefire may have been, took it as an opportunity to re-position themselves for economic growth and to re-expose to risk. Washington and Tehran have...

Russian officials reported that Ukraine had targeted Moscow and its surrounding area?with 400 drones over night, injuring 10 people, and setting buildings on fire, according to Russian officials. In a statement on Telegram, the?Governor of Moscow region Andrei Vorobyov?said?that seven people including three Chinese citizens had been injured in a drone strike on Domodedovo near one of Moscow's major airports. Yevgeniya Krustaleva, the mayor of Domodedovo said on Telegram in a message that "a fire broke out at an industrial park local and that also a residential building was struck." Volodymyr Zelenskiy, the Ukrainian president, said that Kyiv has struck...

As renewed hostilities between?U.S. Iran and the United States have further?disrupted energy flows across the?Strait?of Hormuz. This is a vital route for global oil supply. Since the U.S. and Israel launched their attack on Iran at the beginning of February, the national average retail gas prices have increased by more than 30%. According to AAA data, the average pump price for Monday was $4.0030 per gallon. Last time the $4 mark was reached, it was in late March, when Iran stopped traffic through the Strait. In June, prices fell below this threshold after the U.S. signed an agreement with Iran...

Seven oil and gas companies are racing to secure offshore exploration rights before a New Zealand national election, which could result in a ban on new permits. The country's main parties?battle about the need for natural gas. New Zealand has attracted?interest? after the conservative government overturned last year a ban on offshore drilling, imposed in 2018. The goal was to avoid gas shortages for industry users and boost power generation during dry years when hydropower production falls. In May, the country produced 7,6 petajoules (PJ) of gas. This was largely due to fields that have declined or are about to...

Indian?shares fell on Monday. The decline was largely due to the?HDFC Bank reducing its quarterly net interest margins. By 10:04 a.m. IST, the?benchmark Nifty 50 index fell 0.60%, to 24,187.25. The BSE Sensex dropped 0.76%, to 77566.17. HDFC Bank fell 5%, its steepest intraday drop in four months, after in-line June-quarter profit was overshadowed by a sharper-than-expected net interest margin decline. HDFC Bank's?drop was greater than Reliance Industries' 0.3% increase and ICICI Bank?s 0.6% gain after their results. Reliance surpassed profit expectations on the strength of oil-to chemicals and telecom?verticals. This was announced after market hours on Friday. ICICI Bank...

Investors are increasingly interested in whether this temporary boost can offset weak demand and the mounting competition of Asian producers. The Middle East conflict has tightened supply conditions, which have helped to support pricing. This has given breathing space to Europe's chemical sector. However, weak demand, overcapacity globally and increasing competition from Asia are still weighing on the long-term outlook of the industry. Investors are also interested in whether the companies have reported sustained volume gains or only temporary price increases, as well their outlooks for second half of the calendar year. Brenntag, BASF, and Evonik are among the chemical...

Indian shares will open slightly lower?Monday due to rising oil prices, a result of the escalating conflict in the Middle East. This is offset by better than expected earnings from 'heavyweights' Reliance Industries & ICICI Bank. As of 7:59 am IST, the GIFT Nifty futures GIFc1 were trading at 24,297.5. This indicates that the Nifty 50 may open below Friday's closing price of 24,334.3. U.S. troops struck Iran for the ninth day in a row as the number of American?military casualties increased to three. Concerns grew over shipping through the Strait of Hormuz. Brent crude futures rose 2.5%, topping $90...

Mukesh Ambani, the billionaire Indian, and his Reliance Industries beat market expectations on Friday for its first-quarter profit, thanks to strong performance in their oil-tochemicals, retail, and telecom businesses. The results showed the resilience of Reliance’s diverse businesses during a quarter that was marked by?elevated oil prices, geopolitical conflicts and supply-chain interruptions. Reliance’s operating performance improved across its?three main verticals. The oil-to chemicals business, including its'refining operations', saw a 17.2% increase in core earnings from the previous year. Mukesh Ambani, Chairman of O2C Business, said that the business had a strong performance in the quarter. This was supported by record-high...

Five sources familiar with the talks claim that Pakistan is negotiating a broader?defence agreement with Kuwait, in exchange for energy investment and cooperation. All sources agreed that the talks are still in a 'early stage' and could be complicated by the heightened tensions between Iran and the United States, according to one source. According to a report on Thursday, there are growing concerns in Islamabad about the possibility that the mutual defence agreement signed with Saudi Arabia last year could drag Pakistan into a war between Iran and the United States. Pakistan, a nuclear-armed country, told Iran that it would...

ConocoPhillips announced on Friday that it had acquired a 42% share in BP Energy Company?Kirkuk Ltd. This will allow ConocoPhillips to join BP in redeveloping 'four' oilfields located in northern Iraq. The agreement will be signed by Iraqi Prime Minister Ali al-Zaidi during his official visit to Washington. He is looking for greater U.S. investments in Iraq's power, oil and gas sectors after the disruptions caused due to the conflict with Iran. The contract covers more than 3 billion barrels equivalent of initial gross recoverable resource, with additional exploration potential across the Baba, Avanah and Jambur domes in the Kirkuk...

Shares of Jio Financial Services soared on Friday after the non bank lender reported a more than doubled?quarterly?profit,?adding investor confidence in its expansion into lending, payments and insurance, as well as asset management. The stock rose as high as 6.1%, and by 10:29 am IST was up as recently as 3.9% to 244.83 rupees. This makes it the biggest gainer in the benchmark Nifty50. Jio Financial, which was spun-off from Mukesh Ambani’s Reliance Industries in 2023 and will be listed on the stock exchange, announced that its net profit for the June quarter more than doubled to 8.3 billion rupees...

Seven & i shares rose 3% on Friday in Tokyo after the Japanese retailer announced that it is in talks to buy a stake from Polish convenience store operator Zabka Group. Nikkei reports that the '7-Eleven owner may consider acquiring Zabka share held by funds. The investment is likely to be several hundred billion dollars (several billion yen). The deal would expand Seven & i’s reach beyond its strongholds of Japan and North America to Eastern Europe. This is part of the retailer’s efforts to grow under the leadership Stephen Dacus. Naoshi Matsumoto is an analyst with Yamawa Securities. He...

On Wednesday, gold rose to a two-week peak on technical purchases as investors assessed the escalating conflict in the Middle East and awaited next week's Federal Reserve meeting for hints on interest rate expectations. Gold spot rose 1.6%, to $4,139.64 an ounce, by 0307 GMT. It had already reached its highest level since 7 July earlier that day. U.S. Gold futures for August delivery rose 1.7% to $4144.20. Last week, the escalating tensions in Middle East pushed up oil prices and inflation concerns. This boosted expectations for interest rate hikes which led to gold's steepest weekly decline since early June....

Lynas Rare Earths, a company based in Australia, warned on Wednesday of an overrun cost at its expansion project for heavy rare earths in Malaysia. The warning came after the company reported fourth-quarter revenues below analyst expectations. Its shares fell to a five-month-low. The cost of the Malaysia project has increased from A$180 to A$294 millions, highlighting the difficulties Western producers face in producing these niche metals. Lynas stated that the next step in the project will be the production of gadolinium early in fiscal year 2028, followed by yttrium early in calendar year 2028, and finally lutetium. The company's...

The price of copper hit its?highest level in over a month Tuesday. This was largely due to a firm demand from the top consumer China, and a sharp drop in inventories. Benchmark three-month?copper?on London Metal Exchange rose?1.5%?to $13,826.50 per metric ton at 1405 GMT. This was its highest level since June 15 A tightening Chinese economy is driving copper prices higher. Stocks are dropping, import premiums have risen and physical demand is stronger than expected despite seasonal slowdown, said ING 'commodities analyst EwaManthey. The Shanghai Futures Exchange's most traded copper contract rose 1.6%, to 105460?yuan (15,589.29 dollars) per ton. Premium...

Some investors are buying back the laggards as big investors start to sell and Indonesia's battered, unloved stock markets is gaining some love. Jakarta's stock market has been Asia's worst performing'major' stock market for this year. It is down by 28%. Investors have been looking at markets with less of a focus on AI. David Chao is the Asia-Pacific Global Market Strategist at Invesco, based in Singapore. He said: "We have been buying Indonesia and taking a profit in South Korea." "Indonesia remains the most overlooked macro-growth story." BARGAIN HUNTERS ARE SEEKING VALUE AS SENTIMENTS CHANGE Although still cautious, the...

President Donald Trump signed an executive directive on Monday that makes it more difficult for U.S. Defense contractors to get waivers to purchase critical minerals and materials from China or other banned foreign suppliers. This is the latest attempt by the Trump administration to reduce its reliance on overseas supply chain for weapons production. Defense contractors must now do more than just show that a Chinese supplier offers the cheapest or easiest option. Companies requesting a waiver must prove that they have looked for alternatives, disclosed the origins of materials and provided a plan on how to reduce their reliance...

India's coal-fired plants have enough?coal to operate for two weeks at higher rates. This eases concerns about fuel shortages due to a?rising demand for electricity and a?lower-than-average rainfall during the monsoon season. The power ministry said in a response to the parliament that coal stocks at power stations stood at 42,8 million tonnes on July 12. This is enough for 14 full days of operation with an 85% load factor. It added that utilities are also able to obtain enough coal to meet their daily needs. The peak demand for power in India increased last week by nearly 270.1 gigawatts,...

UltraTech 'Cement, India’s largest cement manufacturer?by capacity?, announced a nearly 17% increase in the first-quarter profit?on Monday and?announced plans to add capacity in fiscal 2028. UltraTech's strong results indicate that it used its size and position in the market to absorb higher fuel prices linked to the Middle East conflict more effectively than smaller competitors. Petcoke and coal prices, which are the main fuels used in cement kilns remained high during the quarter. Cement makers increased prices by about 2.5% to 3% but the increase was partly offset by rising costs. The net profit for the quarter ended 30 June...

Copper prices rose slightly on Monday. This was mainly due to a decline in inventories, and a disappointing supply from the top producer, Chile, while sluggish demand conditions weighed. Benchmark three-month Copper on the London Metal Exchange increased?0.06% by?0710 GMT to $13,533.5 per metric ton. The Shanghai Futures Exchange's most traded copper contract rose 0.2%, to 104.020 yuan (15,361.44) per ton. Daniel Hynes said that the losses were limited due to ongoing supply concerns. BHP has lowered its copper production forecast for the year after a mechanical breakdown at a South Australian mining site and lower ore grades in Chile....

Gold prices were little changed Monday as investors assessed the escalation of the Middle East conflict that has pushed up oil prices, and another U.S. Federal Reserve official signaled that higher interest rates may be necessary to reduce price pressures. As of 0455 GMT, spot gold was $4,018.90 an ounce. U.S. Gold Futures for August 'delivery' gained 0.1%, to $4 023.10. U.S. gold futures for August?delivery gained 0.1% to $4,023.10. Brian Lan, GoldSilver Central's Managing Director, said: "The war continues, and the focus is on rising oil costs that could lead higher inflation. This is what keeps gold under pressure."...

Prices of copper edged up on Monday due to a?shrinking inventory and supply risk, but uncertainty about the?demand outlook limited gains. By 0300 GMT, the benchmark three-month copper contract on the London Metal Exchange had risen 0.16% to $13,546.5 per metric ton. The Shanghai Futures Exchange's most traded copper contract rose 0.39%, to 104210 yuan (US$15,389.50). Daniel Hynes said that the growth of copper production in Chile, the world's largest producer, has been "elusive" so far, according to a note by Daniel Hynes senior commodity strategist with ANZ. South32, an Australian mining company, reported lower fourth quarter copper production, falling...

Gold prices climbed on Friday but were set to fall?weekly? as tensions between the U.S. and Iran pushed up oil prices, raising inflation fears and supporting an expectation of higher U.S. rates. Gold spot rose 0.7%, to $3.996.29 an ounce, by 1010 GMT. It had fallen as low as it has been since July 1, earlier in the day. Prices are down by over 3% for the entire week. U.S. Gold Futures for August Delivery gained 0.2% to $4,000. Fawad Razaqzada is a Forex.com market analyst. He said that when the price drops, some short sellers will profit. If oil...

An official stated on Friday that Zimbabwe's only lithium sulphate facility, owned by China’s Zhejiang Huayou Cobalt?, has no capacity to process minerals from other producers. This is ahead of an export ban for concentrates next year. Africa's largest lithium producer will implement a ban in January to encourage miners to process the battery metal at home, creating higher-valued export earnings and more jobs?in its economy. The government told lithium miners to send their concentrates directly to local plants. One of the plants in Zimbabwe, owned by Zhejiang Huayou Cobalt and operated by Prospect Lithium -Zimbabwe has not yet been...