- NASA launches probe to study if life possible on icy Jupiter moon
- 'Unique' Ronaldo an example to everyone, says Martinez
- New lawsuits against Sean Combs allege sex assault, including of minor
- Italy begins migrant transfers to Albania with first group of 16
- Google signs nuclear power deal with startup Kairos
- Carsley open to foreign England manager amid Guardiola links
- Pogba hungry to have his football cake after doping ban
- India and Canada expel top envoys in Sikh separatist killing row
- Mbappe says victim of 'fake news' after 'rape' report in Sweden
- Lebanon says 21 killed in strike on northern village
- Netanyahu vows no mercy after deadly Hezbollah drone strike
- Russia could be able to attack NATO by 2030: German intelligence
- EVs seek to regain sales momentum at Paris Motor Show
- Clarke backs Scotland to bounce back from 'tough' run
- Harris, Trump target crucial Pennsylvania as US vote looms
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- Lebanese Red Cross says 18 killed in strike in north
- Mendy borrowed money from Man City team-mates for legal fees
- Palestinian officials say Israeli forces kill two in West Bank
- Football leagues, unions file EU complaint against FIFA in calendar dispute
- Nigeria boycott AFCON qualifier in Libya after 'inhumane treatment'
- India to recall top envoy to Canada: foreign ministry
- Hezbollah, Israeli troops in 'violent clashes' after drone strike
- China insists won't renounce 'use of force' to take Taiwan as drills end
- Painkiller sale plan to US gives France major headache
- Italy begins landmark migrant transfers to Albania
- Russia jails French researcher for three years
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- New Zealand 4-0 up in America's Cup but British show signs of life
- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
- Afghan Taliban vow to implement media ban on images of living things
- Russian prosecutor demands 3 years, 3 months jail for French researcher
- England ready for Pakistan's spin assault in second Test
- New Zealand's Ravindra excited for India Tests with father in crowd
- India's capital bans fireworks to curb air pollution
- Stocks diverge, oil retreats as China disappoints markets
- FIFA to open 'global dialogue' on transfer system after Diarra ruling
- Trio wins economics Nobel for work on wealth inequality
- Starmer vows to cut red tape as he urges foreign investors to 'back' UK
- Ex-Stasi officer jailed over 1974 Berlin border killing
- 'Not viable': Barcelona turns against surging tourism
- Hezbollah says targeted Israeli naval base after deadly drone strike
- Rice praises 'unbelievable' England interim boss Carsley despite uncertainty
- Nepali teenager hailed as hero after climbing world's 8,000m peaks
- England captain Stokes back from injury for second Pakistan Test
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
RBGPF | 2.84% | 61.23 | $ | |
CMSC | 0.11% | 24.738 | $ | |
SCS | 0.5% | 12.975 | $ | |
GSK | 0.79% | 39.14 | $ | |
BTI | 0.78% | 35.455 | $ | |
RELX | 1.18% | 47.39 | $ | |
RIO | 0.69% | 67.695 | $ | |
BP | -0.36% | 31.995 | $ | |
BCC | 0.49% | 143.075 | $ | |
AZN | 0.96% | 78.1 | $ | |
CMSD | 0.08% | 24.97 | $ | |
BCE | -1.41% | 32.56 | $ | |
RYCEF | 0.43% | 7.03 | $ | |
VOD | 0.31% | 9.68 | $ | |
JRI | -0.29% | 13.212 | $ | |
NGG | 0.98% | 66.895 | $ |
Markets rise as recession talk tempers rate hike expectations
Stocks rose in Asia on Friday following another rally on Wall Street as investors try to process central bank moves to fight soaring inflation and the growing possibility that those measures will induce a recession.
Global markets have been thrown into turmoil for months by a perfect storm of crises that have left observers predicting a sharp contraction, including the Ukraine war, China's lockdown-induced economic troubles, supply chain snarls and spiking energy costs.
Expectations that the Federal Reserve and other central banks will have to keep lifting rates have left many traders fretting that the pain could go on for some time, with sovereign bond yields -- key gauges to future rates -- continuing to climb.
This week Fed boss Jerome Powell told lawmakers a recession was "certainly a possibility" and suggested officials were ready to press on with big rate hikes, following a three-quarter point lift this month.
However, analysts said speculation that a recession is on the way has helped push yields down in recent days and led traders to scale back their expectations for the length of rate hikes.
Demand concerns have also helped send oil prices -- a key driver of inflation -- lower with both main contracts down around 15 percent over the past week.
Added to the mix this week are comments from President Xi Jinping suggesting an end to China's tech crackdown as well as possible new measures aimed at boosting the economy.
"As we have been saying for some time now, for stocks to return to any semblance of form, it would likely require an unlikely upbeat mix of a seamless China growth recovery, a top in US bond yields, and much softer oil prices," said Stephen Innes at SPI Asset Management.
"While a tall order and still a near-term unlikely combination scenario, the fall in commodity prices, especially oil, should be music to the Fed's ears, so some could be ticking one or two of those boxes off."
In early Asia trade investors took their cue from Wall Street, where all three main indexes closed with healthy gains, including a more than one percent advance on the Nasdaq.
Hong Kong was among the biggest winners thanks to a rally in tech giants including Alibaba, Tencent and NetEase.
Tokyo, Mumbai, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were also well up, while in Europe London, Paris and Frankfurt were all higher at the open.
Lower expectations for US rates and bets on a recession also saw the dollar drop against the safe haven yen, having surged to a 24-year high on the Japanese unit at the start of the week.
"Assuming that the Fed will have to change course sooner than late 2023 isn't an unreasonable assumption," said OANDA's Jeffrey Halley.
"The Fed and a procession of central banks around the world got inflation completely wrong and have been scrambling to reverse the mistake. Given their track record, assuming they are going to be wrong the other way is completely reasonable in that context."
- Key figures at around 0720 GMT -
Tokyo - Nikkei 225: UP 1.2 percent at 26,491.97 (close)
Hong Kong - Hang Seng Index: UP 2.1 percent at 21,716.81
Shanghai - Composite: UP 0.9 percent at 3,349.75 (close)
London - FTSE 100: UP 0.4 percent at 7,048.07
Dollar/yen: DOWN at 134.50 yen from 134.94 yen late Thursday
Pound/dollar: UP at $1.2272 from $1.2259
Euro/dollar: UP at $1.0539 from $1.0526
Euro/pound: DOWN at 85.88 pence from 85.80 pence
West Texas Intermediate: UP 0.3 percent at $104.59 per barrel
Brent North Sea crude: UP 0.1 percent at $110.16 per barrel
New York - Dow: UP 0.6 percent at 30,677.36 (close)
G.Stevens--AMWN