South-East Asia

On Friday, global equity markets fell and Treasury yields increased as the markets neared the end of a turbulent period marked by the efforts of central banks around the globe to curb inflation. Wall Street's three main indexes fell, with real estate, materials and utilities stocks leading the declines. The Dow and S&P 500 were both on course to lose money for the week, but the Nasdaq would post a gain. The Dow Jones Industrial Average dropped 0.4%. The S&P 500 declined 0.2%. And the Nasdaq Composite decreased 0.1%. Stocks in Europe dropped 1.1%, and they were heading for a...

As markets neared the end of the week, marked by an international push to curb inflation, global shares and bonds fell on Friday. Japan's much-telegraphed increase failed to support the yen. This week's monetary policy was the "prime" focus, as the Middle East war is approaching the seven-month mark and shows few signs of ending. Oil prices are still above $100 per barrel, fueling inflation concerns. After the Bank of Japan increased rates to a record high of 1.25 percent, the Japanese currency was on its way to the biggest daily decline since mid-February. The dollar rose 1% to reach...

The dollar held steady on Friday, as investors reacted to global policymakers stepping up their efforts to curb inflation. The Bank of Japan also joined the fray by delivering an expected rate increase that left the 'yen soft. This week, the focus is on monetary policy responses as the six-month long war in the Middle East continues to show no signs of ending. Oil prices remain above $100 per barrel while inflation worries are stoked around the world. In response to the BOJ's decision to raise interest rates to an all-time high of 1.25 percent to avoid the risk of...

The dollar held steady on Friday, as investors reacted to global policymakers' stepped-up efforts to curb inflation. A drop in oil prices improved sentiment ahead of an expected Bank of Japan rate hike. This week, the focus is on monetary policy responses as the six-month long war in the Middle East continues to show no signs of ending. Oil prices remain above $100 a barrel and inflation fears are rife around the world. Brent crude futures fell 1% to $103.7 a barrel on hopes that oil could be supplied from other sources. However, concerns remained about strikes between Saudi Arabia...

The dollar climbed to a seven-week peak on Thursday after the U.S. Federal Reserve raised interest rates for the first time in more than three year and oil prices dropped. This helped ease a global bond selloff which has been rumbling for months. Bank of England is now the focus, which will likely leave UK rates unchanged later. However, all eyes are on the BoE to see if it indicates a possible November rate hike given the pressures of high energy prices. Bank of Japan is expected to raise interest rates this Friday. The main European share markets opened 0.2%...

Investors bet that the Federal Reserve will finally get ahead of inflation by delivering the 'first rate increase in over three years' and calming down a global bond saleoff which had sent long-term yields soaring. The U.S. Dollar hit a seven week high against major peers. This was backed by an increase in short-term Treasury rates as markets increased bets that the Fed might have to raise rates again. A move by December is fully priced in. This was a negative for commodities as oil prices fell. All eyes are now on the Bank of England. It is expected that...

Investors bet that the Federal Reserve will finally get ahead of inflation by delivering its 'first rate hike in more than three years, and calm a global bond saleoff which had sent long term yields soaring. The dollar soared to a seven-week high against its major peers, backed by a jump in short-term Treasury yields as markets increased their bets that the Fed may have to raise rates again. A move by December was fully priced in. The dollar reached a seven-week-high against major peers. This was backed by a surge in short-term Treasury rates as markets increased bets that...

The global stock market rose on Wednesday, as the recent rise in oil and government bond yields paused before a crucial U.S. Federal Reserve rate decision later that day. MSCI's global equity index rose 0.1% after falling in the two previous sessions. A four-day losing streak was broken by an index of Asia-Pacific stocks outside Japan, which rose 0.6%. The STOXX Europe 600 index, which is the pan-European benchmark, opened 0.3% higher. Futures that track the U.S. S&P 500 index also rose, after the benchmark index had closed lower for the second consecutive session on Tuesday. The yield on the...

On Monday, the Asian share markets fell as supply concerns caused oil to spike again. Investors braced themselves for interest rate hikes this week in both Japan and the United States. Brent oil prices rose 3% after new attacks on Saudi Arabia, and on ships in the Gulf. This came as nerves were tested following an attack on Saudi Arabia's oil pipelines and the Houthis' advance into Yemen. The meeting between Iran and Gulf Arab States, which was scheduled to take place in Oman on Monday, for the purpose of discussing a deal about opening the Strait of Hormuz has...

On Friday, global bond yields reached new highs while sharemarkets fell. Soaring oil prices exacerbated inflation risk and investors were scrambling to factor in further policy 'tightening' from central banks around the world. Brent crude futures hit a four-month record of $109.97 per barrel on Friday. Oil flow through the Strait of Hormuz was restricted as Iran and the U.S. traded blows, while the Houthis, who are aligned with Iran, took control of Yemen's Mocha port, threatening Saudi Arabian oil exports to the Red Sea. Analysts at RBC Capital Markets said that the Houthi advance has gravely threatened maritime traffic...

Singapore, Asia's main fuel trading hub, has seen its oil product stockpiles rise to a two-month high, according to government data released Thursday. The increase in stocks of light and middle distillates was also noted. Enterprise Singapore reported that the combined onshore oil products inventories stood at 40.47 millions barrels for the week ending September 9. This compares to 39.04million barrels one week earlier. Multiple?trade sources this week said that September exports to Asia are expected to remain robust for diesel and jet-fuel, but may slow down for gasoline because of margin concerns. Diesel was the major concern in some...

A researcher from the state-owned oil company Sinopec stated on Thursday that the penetration rate of electric vehicles in China is expected to rise, but at a slower pace towards the end of the decade. Continued growth in this sector will reduce oil demand from the largest crude oil importer in the world. Fairy Wang, vice president of Sinopec’s Economics and Development Research Institute, said at the APPEC Conference in Singapore that EVs are expected to displace 56?metric tonnes, or approximately 1.2 million barrels a day?of oil demand?in China. She said that "it is equivalent to about 15% of China's...

China's aluminum smelters are booming this year. Shanghai's aluminium price has risen to three-month highs. Raw material costs have been historically low, and margins remain strong. Each producer is encouraged to run their plant at full capacity. Indeed, national output has exceeded Beijing's 45-million-metric-ton capacity cap for the past couple of months, as smelters flex their full production ?potential. However, the mandated ceiling remains in place. Chinese producers have embraced this reality and are investing heavily in smelter projects abroad. While Donald Trump claims that the United States needs more aluminum "desperately", the world's biggest producer consolidates its position as...

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...