South-East Asia

Oil prices fell for the first time in three weeks last Friday as investors weighed Gulf developments and awaited Kevin Warsh's potentially market-moving comments. Brent fell 0.6% to $89.2 per barrel, close to the middle of its range since mid-June. The benchmark was still on track to drop more than 5% this week. Attention is focused on an upcoming deal between Iran, Oman, and the U.S. on the management of traffic through the Strait of Hormuz. The fall in oil prices combined with the rally in technology shares after Nvidia’s results on Tuesday helped the?MSCI all country world share indices...

The shares in Asia were cautious after the technology rally fueled by Nvidia, and currency and bond markets awaited the words of the world's largest central banker on U.S. rates. The oil prices are headed for a weekly loss as Iran and Oman have 'agreed' to share revenues and administer traffic in the Strait of Hormuz, even though Washington has shown little interest in restarting direct talks with Tehran. Brent fell 0.1% to $89.63 per barrel, but the weekly decline was expected to be over 5%. The Nikkei, Japan's stock market index, rose 0.5%. Taiwanese stocks gained 1.2%, after Nvidia's...

Government data released on Thursday showed that oil product inventories in Asia’s fuel trading hub, Singapore, had rebounded to three-week highs, with stocks increasing week over week. Enterprise?Singapore data showed that combined onshore inventories reached?39.18m barrels for the week?ended august 26. This was?up 4.0% compared with a week before. The markets remained attentive to Middle East discussions around the Strait of Hormuz, which transported oil and LNG equal to about one fifth of global consumption prior to the U.S./Israeli war against Iran. The RESIDUAL FUEL STOCK RETURNS TO A MASS OF 19 MILLION BARRESLS The residual fuel stockpiles rose for...

Stocks rose on Thursday in Asian trading as 'Nvidia’s' earnings report exceeded estimates. This boosted tech hardware manufacturers, and revived investor confidence. MSCI's broadest Asia-Pacific index excluding Japan gained 0.2%. This extended its gains for a third day in a row after Nvidia announced that its quarterly revenue had more than doubled, and forecasted third-quarter revenues above Wall Street expectations. In after-hours trades, the AI chipmaker's stock jumped by 4.7%. This lifted S&P 500 futures by 0.3%. Chris Weston, Head of Research at Pepperstone Group Melbourne said that the business is in "absolutely rude health". It's going wake people up,...

Stocks climbed at the beginning of Thursday's Asia-Pacific session, as Nvidia beat expectations. This boosted tech hardware manufacturers' confidence and revived investor confidence after overnight data showed that the Federal Reserve preferred U.S. Inflation measure was still hot. MSCI's broadest Asia-Pacific index excluding Japan rose 0.7% and is on course to extend gains for a third day in a row after Nvidia announced that its quarterly revenues had more than doubled, and forecasted third-quarter revenue well above Wall Street expectations. In after-hours trades, the AI chipmaker's stock jumped by 4.7%. This lifted S&P 500 e-minis futures 0.4%. Chris Weston said,...

Investors regained calm in the global bond and share markets on Tuesday, as they shrugged off U.S. sanctions plans against Iran. They began to prepare for Nvidia's earnings report due out Wednesday. U.S. Treasury secretary?Scott Bessent warned countries to cut financial ties with Iran on Monday or face secondary sanctions. However, the Treasury Department did not actually impose penalties. The news prompted a slight drop in oil prices as well as the benchmark government bond yields. This was also aided by the report that the U.S. Treasury may use its cash account to fund increased U.S. Debt Buybacks. Wall Street...

Investors in global share and bond markets were calmer on Tuesday, as they shrugged off U.S. plans to extend sanctions against Iran?and started preparing for the results of Nvidia, the world's most valuable company. U.S. Treasury Sec. Scott Bessent warned on Monday that countries would face secondary sanctions if they did not cut financial ties to Iran as part of the "economic D-Day," which was dubbed by some as an "economic D-Day." However, the Treasury Department stopped just short of imposing actual penalties. The report that the U.S. Treasury may use its cash account to fund increased U.S. government debt...

After the U.S.'s "economic D-Day", sanctions against Iran, turned out to not be as severe as they had feared. U.S. Treasury rates are down from their recent highs after a report stating that the Treasury Department may tap into its cash account to fund increased debt buybacks. This could reduce the requirement for additional short-term bill sales. Investors are well aware of the high expectations that Nvidia will have to meet. Analysts expect quarterly revenues to nearly double, to $92 billion. Full-year earnings are expected to range between $103 billion and $105 billion. "Those are high expectations that must be...

The crude oil market is currently debating the wrong issue about how much oil actually moves through the Strait of Hormuz. Instead, it should focus on the restricted flows of'refined products' around Asia. Energy Secretary Chris Wright of the U.S. has claimed repeatedly that vessel tracking analysts such as Kpler cannot see how much crude oil is flowing through the disputed Strait. Wright claimed that 15 million barrels of oil per day (bpd), or about 500,000 barrels a day, left the Strait of?Hormuz in a single day last week. If true, this would bring the volumes to?what they were before...

The global stock market was headed for a largely lower week last Friday as the strain on the global bond markets did not show any signs of easing and the diplomatic deadlock over the Gulf pushed oil prices up to a one-month high. The yields on U.S. government bonds resumed their rise after the surprise intervention by the Treasury on Wednesday. This was barely a relief from selling that had been sparked primarily by fears of inflation and fiscal pressures. The increase came as?U.S. Treasury Secretary Scott Bessent suggested that the government could increase its repurchases and also floated the...

According to government data, oil product inventories in Singapore, Asia’s main fuel trading hub, fell for the second consecutive?week, reaching two-month lows. Light distillates inventories are nearing a 5-year low. Enterprise Singapore reported that combined onshore oil products inventories were around 37.67 millions barrels for the week ending August 19. This is down from 38.44million barrels one week prior. Even though the imports of refined fuels like diesel, gasoline, and jet fuel from China dropped, they were in line with the expectations that the market had set since Beijing began to loosen its control over exports in July. As U.S....

The global bond yields fell from multi-decade-highs on Wednesday, after the U.S. Treasury Department announced it would increase liquidity support for securities with longer maturities. This followed a 'widespread sell-off' sparked by fears about soaring sovereign debt. The U.S. Treasury Department announced that it will double the size of its 'liquidity support buyback operation for longer-dated nominal coupons securities from $2 billion to at least $4 Billion per operation. The yields on long-dated U.S. government bonds fell as much as 10 basis point, which also impacted the yields of European government bonds. U.S. Long Bonds hit their highest level in...

According to the website of the Singapore Supreme Court, Japan's Mizuho Bank Ltd filed a case against the Singapore Iron Ore Trader Radiant World's 'operating entity'. A court listing revealed that Mizuho Bank is the banking division of Mizuho Financial Group and they are seeking an injunction to stop Radiant World Corporation from doing business. Could not find any other public legal action taken by a Radiant World creditor. Radiant World accounts have been frozen by some banks and trading houses have cut ties with the company over concerns that it had submitted invalid invoices to raise funding. Singapore Police...

London's zinc market is still a hazardous place for bears. Metal that was expected to drop in price this year has risen. The London Metal Exchange's (LME) 3-month zinc reached a new four-year high of $3,858 a metric ton on Tuesday morning. The relentless rally has been accompanied by an abrupt contraction of the LME time spreads. This is particularly worrying for holders of zinc short positions. The premium for cash Metal?over a three-month delivery The price of a ton has dropped to $131, which is a significant drop from last October's record high of $323. The tightening market this...

China's and Indonesian's defence and foreign ministers will meet on Friday. Security, politics, and economic issues are expected to dominate the talks. Jakarta is trying to maintain a balance between its ties with both Beijing and Washington, amid tensions and trade disputes in the South China Sea. China's Foreign Minister Wang Yi will visit Jakarta for the first two years and meet with his Indonesian counterpart Sugiono. He will also participate in the "2+2 meeting" between the defence ministers of the two countries. Arifianto Sofiyanto (an Indonesian official in the East Asia division of the foreign ministry) told a Thursday...

Russian President Vladimir Putin held talks in Moscow on ?Tuesday with Myanmar's junta chief-turned-president, Min Aung Hlaing, ?discussing a wide range of issues including prospective energy deals. Min Aung Hlaing's first visit to a non-neighboring country since becoming Myanmar president in April is Russia. This shows the deepening of ties between the two countries in response to the pressures from the West. After the meeting, Putin called Min Aung Hlaing a friend of Russia, and said that the two countries are cooperating in a variety of sectors including energy, defence, and even space exploration. Putin said that Russia and Myanmar...

China's coal exports increased to the highest level this year in July, but that strength is based on short-term factors and unlikely to last. According to data released by the government last week, total coal imports in July were up 23% from last year's same month to 43.73 millions metric tons. It was up from 42.78 millions tons in June, and nearly a third higher than the low of 33.1million tons for April this year. After 82 miners were killed in an accident at a mine located in Shanxi Province on May 22, China began imposing safety inspections in mines....

China's coal exports surged in July to their highest level this year. But the increase is based on short-term factors and will not last. According to data released by the government last week, total coal imports rose 23% from July last year to 43.73 millions metric tons. The increase was from 42.78 millions tons in June and nearly a third higher than the lowest level of?this year, which was 33.1 million tonnes from April. This rebound comes after China implemented safety inspections in mines following an accident that left 82 people in Shanxi Province dead on May 22, China's largest...

Gary Nagle, the CEO of Glencore, said that the company had?taken an provision relating to Radiant World. However, he added that Glencore's exposure towards the iron ore trading firm was not significant. We have some existing contracts that still need to be completed. Nagle said on a conference call that they are assessing how to deal with them in a legal manner. However, we have stopped doing any new business. Bloomberg reported that last week, fellow trading houses Vitol and Cargill had stopped doing business Radiant World because they were concerned about the validity of invoices sent to their banks....

Two industry sources claim that Trafigura, a commodity trading house, holds a large share of zinc available on the London Metal Exchange. This is despite the fact that the prices of zinc, which is used to galvanize steel, have reached their highest levels in nearly four years. Available, or on-warrant, LME zinc stocks Just 73,850 tons of refined zinc were consumed in the world last year. This is equivalent to two days' global consumption. According to the International Lead and Zinc Study Group, the world consumed 13.8 million tonnes of refined zinc in 2012. LME data shows that three entities...

Indonesia has resumed the export of minerals which may contain rare earth elements in their byproducts. This follows complaints from metals industries about delays due to mandatory rare earth content inspections. The testing of rare earth elements (REEs) in minerals such as bauxite and alumina has caused delays to the exports. Exporting rare earth elements as primary products is in fact prohibited. In a press briefing, Dudung Abdurachman, chief of staff to the president, said that it does not apply automatically to REEs found in products and derivatives as byproducts or accompanying elements. Dudung Abdurachman, the presidential chief of staff,...

Holcim Group, a Swiss building materials company, announced on Sunday that it intends to sell its Philippines operations to Huaxin Building Materials of China in a deal worth at least $807,000,000. Holcim is selling an initial 68% stake at $527 million. The remainder will be sold in the following three to five year period for a price minimum of $280million. Holcim stated that this would result in an overall valuation $807 million. However, the figure may rise "based upon incremental value creation over?this time period". This sale is Holcim's largest divestment, since the $1 billion deal it made with Huaxin...

Holcim Group, a Swiss building materials company, announced on Sunday that it intends to sell its Philippines business to China’s Huaxin Building Materials. The deal could generate at least $807 million. Holcim is selling a 68% initial stake at $527 million. The remainder will be sold in the next 3 to 5 years for $290 million. Holcim stated that the total valuation would be $807 million. However, this figure could increase "based on incremental values created during?this time period". The money raised will be used for?large acquisitions as well as further investments in Holcim’s existing business. After spinning off their...

Two Indian sources said this week that India's state run Steel Authority of India (SAIL) and Indonesia's Krakatau Steel are planning to invest up to $350 million into a'stainless-steel slab plant' in Indonesia. Sources said that the plant is expected to become operational in the next 3 to 4 years. SAIL and Krakatau Steel have signed a preliminary joint venture agreement in Indonesia to produce stainless steel plates during the visit of Indian Prime Minister Narendra Modi. Sources said that SAIL will'send a technical team next month to Indonesia to prepare a feasibility study. After this, the two companies will...