AGL 38.48 Decreased By ▼ -0.08 (-0.21%)
AIRLINK 203.02 Decreased By ▼ -4.75 (-2.29%)
BOP 10.17 Increased By ▲ 0.11 (1.09%)
CNERGY 6.54 Decreased By ▼ -0.54 (-7.63%)
DCL 9.58 Decreased By ▼ -0.41 (-4.1%)
DFML 40.02 Decreased By ▼ -1.12 (-2.72%)
DGKC 98.08 Decreased By ▼ -5.38 (-5.2%)
FCCL 34.96 Decreased By ▼ -1.39 (-3.82%)
FFBL 86.43 Decreased By ▼ -5.16 (-5.63%)
FFL 13.90 Decreased By ▼ -0.70 (-4.79%)
HUBC 131.57 Decreased By ▼ -7.86 (-5.64%)
HUMNL 14.02 Decreased By ▼ -0.08 (-0.57%)
KEL 5.61 Decreased By ▼ -0.36 (-6.03%)
KOSM 7.27 Decreased By ▼ -0.59 (-7.51%)
MLCF 45.59 Decreased By ▼ -1.69 (-3.57%)
NBP 66.38 Decreased By ▼ -7.38 (-10.01%)
OGDC 220.76 Decreased By ▼ -1.90 (-0.85%)
PAEL 38.48 Increased By ▲ 0.37 (0.97%)
PIBTL 8.91 Decreased By ▼ -0.36 (-3.88%)
PPL 197.88 Decreased By ▼ -7.97 (-3.87%)
PRL 39.03 Decreased By ▼ -0.82 (-2.06%)
PTC 25.47 Decreased By ▼ -1.15 (-4.32%)
SEARL 103.05 Decreased By ▼ -7.19 (-6.52%)
TELE 9.02 Decreased By ▼ -0.21 (-2.28%)
TOMCL 36.41 Decreased By ▼ -1.80 (-4.71%)
TPLP 13.75 Decreased By ▼ -0.02 (-0.15%)
TREET 25.12 Decreased By ▼ -1.33 (-5.03%)
TRG 58.04 Decreased By ▼ -2.50 (-4.13%)
UNITY 33.67 Decreased By ▼ -0.47 (-1.38%)
WTL 1.71 Decreased By ▼ -0.17 (-9.04%)
BR100 11,890 Decreased By -408.8 (-3.32%)
BR30 37,357 Decreased By -1520.9 (-3.91%)
KSE100 111,070 Decreased By -3790.4 (-3.3%)
KSE30 34,909 Decreased By -1287 (-3.56%)

HONG KONG: Asian markets stumbled out of the gates Monday, extending last week’s grim start to the year, after a forecast-busting US jobs report further dampened hopes for an early interest rate cut.

The keenly awaited non-farm payrolls data Friday showed the world’s number one economy remains resilient despite interest rates sitting at a two-decade high and inflation still well above the Federal Reserve’s target.

However, they dealt another blow to expectations the central bank will begin to normalise monetary policy in the next few months.

Equities ended 2023 with a surge as traders bet on a string of reductions this year thanks to falling inflation and a softening of the labour market.

But the release of minutes last week from the Fed’s December meeting showed decision-makers were happy to keep rates elevated for some time to make sure they have prices under control.

Policymakers have signalled 75 basis points of cuts this year, but markets have priced in as much as 150 points, leaving investors open to disappointment.

“The first week of 2024 brought contradictory data signals,” said Barclays economists including Christian Keller.

“Solid US jobs growth, cautious Fed minutes and a still robust US economy raise doubts about markets’ aggressive Fed rate-cut expectations.”

However, a sharp slowdown in the key services sector provided some solace for investors as it suggested the economy was slowing, giving the Fed wiggle room.

Bloomberg said swaps traders were still eyeing about 140 basis points of easing this year, with about a two-thirds chance of a March move.

All three main US indexes ended slightly higher but that optimism was not apparent in Asian trading Monday, with Sydney, Seoul, Singapore, Mumbai, Manila, Jakarta, Bangkok and Wellington all in the red. Tokyo was closed for a holiday.

A sell-off in tech giants hammered Hong Kong, while Shanghai was also deep in retreat, with Saxo’s Redmond Wong saying that while valuations were increasingly attractive “prevailing market sentiments remain sluggish, and the absence of catalysts suggests a lack of potential for a near-term rally”.

Attention now turns to the release later in the week of US consumer price figures.

“For those seeking macroeconomic clarity, the situation remains pretty elusive,” said SPI Asset Management’s Stephen Innes.

“While there is a plausible argument that the US labour market has effectively normalised, uncertainties persist in a market characterised by ongoing concerns about an indeterminate macroeconomic landscape amid the long wait for a recession that may or may not ever arrive – hinting at the potential for a volatile year ahead.”

Key figures around 0700 GMT

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 16,186.03

Shanghai - Composite: DOWN 1.4 percent at 2,887.54 (close)

Tokyo - Nikkei 225: Closed for a holiday

Dollar/yen: DOWN at 144.18 yen from 144.69 yen on Friday

Euro/dollar: UP at $1.0945 from $1.0942

Pound/dollar: DOWN at $1.2715 from $1.2718

Euro/pound: UP at 86.09 pence from 86.01 pence

West Texas Intermediate: DOWN 1.5 percent at $72.74 per barrel

Brent North Sea Crude: DOWN 1.3 percent at $77.73 per barrel

New York - Dow: UP 0.1 percent at 37,466.11 (close)

London - FTSE 100: DOWN 0.4 percent at 7,689.61 (close)

Comments

Comments are closed.