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Tag: Stocks and bonds

  • Stock market today: Asia mixed despite China growth data

    Stock market today: Asia mixed despite China growth data

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    TOKYO — Asian shares were trading mixed Tuesday as pessimism about global uncertainties remained even as China reported a better-than-expected economic growth data.

    Japan’s benchmark Nikkei 225 rose 0.5% in afternoon trading to 28,646.73. Australia’s S&P/ASX 200 shed 0.4% to 7,352.60. South Korea’s Kospi lost 0.3% to 2,568.72. Hong Kong’s Hang Seng slipped 0.7% to 20,627.70, while the Shanghai Composite edged up 0.1% to 3,390.34. Oil prices rose.

    Traders have been focused on data out of China, Asia’s chief engine for growth, and trading was muted until the release of the data. China’s 2023 growth target is 5%.

    China’s first-quarter gross domestic product, which measures the value of a nation’s products and services, rose a better-than-expected 4.5%, according to official statistics. Analysts had expected 4% growth, following a 2.9% growth in the last quarter of 2022. Still, some analysts remained cautious.

    “This neither distracts from doubts around sustained growth recovery back above 5% nor does it adequately confirm recovery in private sector confidence critical to inspire a virtuous growth cycle,” said Tan Boon Heng at Mizuho Bank.

    Analysts say new trade patterns will emerge since markets have been rocked by various political uncertainties such as the war in Ukraine, threatening supply chains and triggering fluctuations in consumer prices and moves by the world’s central banks.

    Wall Street drifted higher Monday to kick off the first full week of earnings reporting season.

    The S&P 500 rose 13.68, or 0.3%, to 4,151.32. The Dow Jones Industrial Average gained 100.71, or 0.3%, to 33,987.18, while the Nasdaq composite climbed 34.26, or 0.3%, to 12,157.72.

    All three swayed between small gains and losses in quiet trading before ending near their highs for the day.

    Several financial companies reported a mixed set of profit reports for the first three months of the year. They followed up on a bevy of better-than-expected reports from JPMorgan Chase and other big U.S. banks that marked the unofficial start of reporting season late last week.

    A lot of focus has been on the strength of the financial industry broadly after the second- and third-largest U.S. bank failures in history last month rocked markets worldwide.

    A worry for the broad financial industry has been that customers could pull out deposits amid all the fear about the U.S. banking system. The spotlight has been hottest on regional banks that are a rung or several below in size of JPMorgan Chase and the other massive, “too-big-to-fail” banks. They’re seen as more vulnerable to customers fleeing en masse, akin to the runs that helped cause the failures of Silicon Valley Bank and Signature Bank last month.

    Several regional banks will report their results later this week. So far, the earliest trends for earnings season seem to be encouraging.

    “A massive, systemic financial confidence shock appears to have been averted, but tighter credit is manifesting in the real economy,” strategists led by Savita Subramanian wrote in a BofA Global Research report.

    Even though inflation has been cooling, it still remains far above the Fed’s liking.

    The Fed has jacked up interest rates at the fastest pace in decades, and expectations are firming that it will raise them again at its next meeting next month. Higher rates can stifle inflation but only by slowing the economy, raising the risk of a recession and dragging on prices for stocks, bonds and other investments.

    In the bond market, the 10-year Treasury yield rose to 3.59% from 3.52% late Friday. It helps set rates for mortgages and other important loans.

    The two-year yield, which moves more on expectations for the Fed, climbed to 4.19% from 4.10%.

    In energy trading, benchmark U.S. crude added 26 cents to $81.09 a barrel. Brent crude, the international standard, rose 29 cents to $85.05 a barrel.

    In currency trading, the U.S. dollar inched down to 134.38 Japanese yen from 134.42 yen. The euro cost $1.0943, up from $1.0930.

    ___

    AP Business Writer Stan Choe contributed.

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  • Global stocks up after US inflation moderates

    Global stocks up after US inflation moderates

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    BEIJING — Global stocks were mostly higher Thursday after U.S. inflation eased and Federal Reserve officials said they expect fewer interest rate hikes this year to slow economic activity.

    Tokyo, Hong Kong and Paris rose while Shanghai declined. London and Frankfurt opened little-changed. Oil prices edged lower.

    Wall Street futures were higher after government data showed U.S. inflation declined to 5% in March from the previous month’s 6%. That encouraged traders who hope signs of weaker economic growth might prompt the Fed and other central banks to postpone or scale down plans for more rate hikes.

    Also Wednesday, notes from the Fed’s March 21-22 meeting showed officials agreed the next increase in its benchmark lending rate would be one-quarter percentage point instead of half a point. The notes showed Fed economists expect a “mild recession” but said that might be avoided.

    “If inflation is indeed moderating, and growth is no longer ‘too strong,’ the Fed can pause with confidence,” said Stephen Innes of SPI Asset Management in a report.

    In early trading, the FTSE in London held steady at 7,820.05. The DAX in Frankfurt was little-changed at 15,699.20 while the CAC 40 in Paris gained 0.8% to 7,457.21.

    On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were up 0.1%.

    On Wednesday, the S&P 500 index fell 0.4%. About 65% of stocks within the index fell.

    The Dow slipped 0.1% and the Nasdaq composite lost 0.9%.

    In Asia, the Shanghai Composite Index lost 0.3% to 3,318.36 after customs data showed Chinese exports rose 14.8% over a year earlier in March, unexpectedly rebounding from a contraction in January and February.

    The Nikkei 225 in Tokyo added 0.3% to 28,156.97 while the Hang Seng in Hong Kong advanced 0.2% to 20,344.48.

    The Kospi in Seoul rose 0.4% to 2,561.66 while Sydney’s S&P ASX fell 0.3% to 7,324.10.

    India’s Sensex lost 0.1% to 60,335.51. New Zealand and Singapore advanced while Jakarta declined.

    Traders have been worried the Fed and other central banks in Europe and Asia might tip the global economy into recession as they try to extinguish inflation that is near multi-decade highs.

    That anxiety was briefly drowned out by fears about the health of global banks following two high-profile failures in the United States and one in Switzerland. But regulators appear to have quelled those concerns by promising more lending and other steps if needed to stabilize banks.

    Traders are still largely betting the Fed will raise short-term interest rates by another quarter of a percentage point at its next meeting, according to data from CME Group. They shaded some bets toward the possibility that the Fed will merely hold rates steady in May, something it has not done for more than a year.

    The bond market shows nervousness about a potential recession. The 10-year Treasury yield slipped to 3.41% from 3.43% late Tuesday. The two-year Treasury yield, which moves more on expectations for the Fed, fell to 3.96% from 4.03%.

    Investors are looking ahead to the latest quarterly profit reports U.S. companies are due to start releasing this week.

    Expectations are low. Analysts forecast the worst drop in S&P 500 earnings per share since the pandemic was crushing the economy in 2020. But many also expect this to mark the bottom and call for a return to growth later this year.

    In energy markets, benchmark U.S. crude lost 6 cents to $83.20 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.73 on Wednesday to $83.26. Brent crude, the price basis for international oil trading, shed 12 cents to $87.21 per barrel in London. It advanced $1.72 the previous session to $87.33.

    The dollar declined to 133.13 yen from Wednesday’s 133.19 yen. The dollar gained to $1.1012 from $1.0995.

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  • Asian shares moderately higher with focus on inflation data

    Asian shares moderately higher with focus on inflation data

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    TOKYO — Asian shares were mostly higher Wednesday, as investors watched for key inflation data likely to influence the Federal Reserve’s stance on interest rates.

    Japan’s benchmark Nikkei 225 rose 0.7% in afternoon trading to 28,109.17. Australia’s S&P/ASX 200 added 0.5% to 7,343.10. South Korea’s Kospi edged less than 1 point higher to 2,548.02.

    Hong Kong’s Hang Seng index lost 0.6% to 20,360.50 and the Shanghai Composite index added 0.3% to 3,322.70.

    “Broader markets remain laser-focused on this week’s critical inflation data as market participants attempt to tease out the state of the economy and the course the Fed might take from here,” Stephen Innes, managing partner at SPI Asset Management, said in a report.

    On Wall Street, the S&P 500 had its smallest one-day move in more than a year, slipping 0.17 points, or less than 0.1%, to 4,108.94. Most of the stocks in the index rose, as did the Dow Jones Industrial Average, which gained 0.3% to 33,684.79. The Nasdaq composite slipped 0.4% to 12,031.88.

    The biggest immediate question for Wall Street has been whether the Federal Reserve will keep hiking interest rates in its attempt to get high inflation under control. It’s already raised rates at a furious pace over the last year, enough to slow some areas of the economy and for strains to appear in the banking system.

    Economists expect Wednesday’s report on consumer inflation to show it slowed to 5.2% in March from 6% in February. That’s continued progress since inflation peaked last summer, but still well above the Fed’s target.

    A higher reading than expected would likely raise expectations the Fed will raise rates by another quarter of a percentage point at its next meeting in May. Higher rates can undercut inflation, but in slowing the economy they raise the risk of a recession and hurt prices for stocks and other investments.

    Bond traders have been jittery over the Fed possibly going too far on rates and then having to cut them as soon as this summer in order to prop up the economy. The stock market has remained more resilient, helped by hopes the Fed could thread the needle and raise rates just enough to stifle inflation without causing a severe downturn.

    Still-high inflation is one of the reasons analysts expect this upcoming earnings reporting season to show the worst drop since the depths of the pandemic in 2020. A bunch of banks will help kick off the earnings reporting season when they tell investors on Friday how much they earned during the first three months of the year.

    Investors will get updates on what CEOs say about current and upcoming conditions. One fear is that banks in particular could pull back on their lending following all the turmoil in their sector, caused in part by the past year’s swift leap in interest rates.

    If they do cut off lending to businesses, that could further slow the economy and raise the risk of a recession.

    Big Tech stocks were also weak. They and other high-growth stocks are seen as the most hurt by rising interest rates, and a 2.3% drop for Microsoft was the heaviest drag on the S&P 500.

    In energy trading, benchmark U.S. crude gained 11 cents to $81.64 a barrel in electronic trading on the New York Mercantile Exchange. It advanced $1.79 per barrel to $81.53 per barrel. Brent crude, the international standard, added 13 cents to $85.74 a barrel.

    In currency trading, the U.S. dollar rose to 133.80 Japanese yen from 133.70. The euro cost $1.0934, up from $1.0912.

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  • Asian shares moderately higher with focus on inflation data

    Asian shares moderately higher with focus on inflation data

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    TOKYO — Asian shares were mostly higher Wednesday, as investors watched for key inflation data likely to influence the Federal Reserve’s stance on interest rates.

    Japan’s benchmark Nikkei 225 rose 0.7% in afternoon trading to 28,109.17. Australia’s S&P/ASX 200 added 0.5% to 7,343.10. South Korea’s Kospi edged less than 1 point higher to 2,548.02.

    Hong Kong’s Hang Seng index lost 0.6% to 20,360.50 and the Shanghai Composite index added 0.3% to 3,322.70.

    “Broader markets remain laser-focused on this week’s critical inflation data as market participants attempt to tease out the state of the economy and the course the Fed might take from here,” Stephen Innes, managing partner at SPI Asset Management, said in a report.

    On Wall Street, the S&P 500 had its smallest one-day move in more than a year, slipping 0.17 points, or less than 0.1%, to 4,108.94. Most of the stocks in the index rose, as did the Dow Jones Industrial Average, which gained 0.3% to 33,684.79. The Nasdaq composite slipped 0.4% to 12,031.88.

    The biggest immediate question for Wall Street has been whether the Federal Reserve will keep hiking interest rates in its attempt to get high inflation under control. It’s already raised rates at a furious pace over the last year, enough to slow some areas of the economy and for strains to appear in the banking system.

    Economists expect Wednesday’s report on consumer inflation to show it slowed to 5.2% in March from 6% in February. That’s continued progress since inflation peaked last summer, but still well above the Fed’s target.

    A higher reading than expected would likely raise expectations the Fed will raise rates by another quarter of a percentage point at its next meeting in May. Higher rates can undercut inflation, but in slowing the economy they raise the risk of a recession and hurt prices for stocks and other investments.

    Bond traders have been jittery over the Fed possibly going too far on rates and then having to cut them as soon as this summer in order to prop up the economy. The stock market has remained more resilient, helped by hopes the Fed could thread the needle and raise rates just enough to stifle inflation without causing a severe downturn.

    Still-high inflation is one of the reasons analysts expect this upcoming earnings reporting season to show the worst drop since the depths of the pandemic in 2020. A bunch of banks will help kick off the earnings reporting season when they tell investors on Friday how much they earned during the first three months of the year.

    Investors will get updates on what CEOs say about current and upcoming conditions. One fear is that banks in particular could pull back on their lending following all the turmoil in their sector, caused in part by the past year’s swift leap in interest rates.

    If they do cut off lending to businesses, that could further slow the economy and raise the risk of a recession.

    Big Tech stocks were also weak. They and other high-growth stocks are seen as the most hurt by rising interest rates, and a 2.3% drop for Microsoft was the heaviest drag on the S&P 500.

    In energy trading, benchmark U.S. crude gained 11 cents to $81.64 a barrel in electronic trading on the New York Mercantile Exchange. It advanced $1.79 per barrel to $81.53 per barrel. Brent crude, the international standard, added 13 cents to $85.74 a barrel.

    In currency trading, the U.S. dollar rose to 133.80 Japanese yen from 133.70. The euro cost $1.0934, up from $1.0912.

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  • Asian shares mostly higher after mixed day on Wall Street

    Asian shares mostly higher after mixed day on Wall Street

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    Stocks were mostly higher in Asia on Tuesday after a mixed session on Wall Street dominated by speculation the Federal Reserve may tap the brakes again on financial markets and the economy by raising interest rates.

    Shares rose in Tokyo, Hong Kong, Seoul and Sydney, while Shanghai declined. U.S. futures edged higher and oil prices also gained.

    Monday was the first U.S. trading day after the release of data showing a stronger than expected jobs market in March, which might keep inflation high. That has reinforced expectations the Fed may hike interest rates again at its next meeting.

    In Japan, the new central bank governor indicated late Monday that he expects to keep the country’s ultra-low interest rate policy in place without drastic changes.

    Bank of Japan Gov. Kazuo Ueda did say a long-term review of the policy, which is aimed at fostering stronger economic growth by keeping inflation near a target of 2%, might eventually be needed.

    “The upshot is that Governor Ueda is not merely making a temporary effort to not rock the policy boat, but is in fact doubling down on the policy course at present,” Mizuho Bank said in a commentary.

    It noted that “growing risks of a global downturn alongside monetary policy lags means that the BOJ is acutely aware that any distinct tightening now may be caught wrong-footed by a global downturn.”

    In Tokyo, the Nikkei 225 index gained 1.1% to 27,923.37.

    South Korea’s Kospi advanced 1.3%, to 2,545.73. The Bank of Korea left its policy rate unchanged at 3.5% for a second straight meeting, one of many regional banks that are now slowing or reversing rate increases due to signs of weakness in the global economy.

    Hong Kong’s Hang Seng added 0.3% to 20,385.68, while the S&P/ASX 200 climbed 1.3% to 7,311.10. In Mumbai, the Sensex gained 0.3%to 60,051.94.

    The Shanghai Composite index lost 0.3% to 3,305.19.

    On Monday, the S&P 500 edged 0.1% higher to 4,109.11. Big tech stocks fell more than the rest of the market, which helped pull the Nasdaq composite down less than 0.1%, to 12,084.36. It was down as much as 1.4% earlier in the day. The Dow Jones Industrial Average was steadier, rising 0.3% to 33,586.52.

    Higher rates tend to hit tech and other high-growth stocks the hardest, and Apple and Microsoft were the two heaviest drags on the S&P 500. Apple fell 1.6%, and Microsoft slipped 0.8.%.

    Tesla also dipped 0.3% after paring a sharper, early loss. The company cut prices on its entire U.S. model lineup in an apparent attempt to to entice buyers amid rising interest rates, which make auto loans more expensive.

    The Fed has raised interest rates at a furious pace over the last year in hopes of undercutting high inflation. Higher rates can do that, but only by bluntly slowing the entire economy in one fell swoop. That raises the risk of a recession in the future and drags down prices for stocks, bonds and other investments.

    The Fed has jacked up rates at every one of its meetings over the past year, forcing them up from near zero at the start of 2022.

    On Wednesday, the U.S. government will release its latest monthly update on prices across the economy at the consumer level. Economists expect it to show inflation slowed last month but remains well above the Fed’s target.

    Also this week, earnings reporting season will begin for the biggest U.S. companies. Delta Air Lines, JPMorgan Chase and UnitedHealth Group will be among the first S&P 500 companies to tell investors how much profit they made during the first three months of the year.

    Expectations are low, and analysts are forecasting the sharpest drop in earnings per share for S&P 500 companies since the pandemic pummeled the economy in the spring of 2020.

    In other trading Tuesday, U.S. benchmark crude gained 76 cents to $80.50 per barrel in electronic trading on the New York Mercantile Exchange.

    Brent crude, the international pricing standard, added 73 cents to $84.91 per barrel.

    The dollar slipped to 133.38 Japanese yen from 133.59 yen. The euro rose to $1.0896 from $1.0864.

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  • Asian shares mostly higher after mixed day on Wall Street

    Asian shares mostly higher after mixed day on Wall Street

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    Stocks were mostly higher in Asia on Tuesday after a mixed session on Wall Street dominated by speculation the Federal Reserve may tap the brakes again on financial markets and the economy by raising interest rates.

    Shares rose in Tokyo, Hong Kong, Seoul and Sydney, while Shanghai declined. U.S. futures edged higher and oil prices also gained.

    Monday was the first U.S. trading day after the release of data showing a stronger than expected jobs market in March, which might keep inflation high. That has reinforced expectations the Fed may hike interest rates again at its next meeting.

    In Japan, the new central bank governor indicated late Monday that he expects to keep the country’s ultra-low interest rate policy in place without drastic changes.

    Bank of Japan Gov. Kazuo Ueda did say a long-term review of the policy, which is aimed at fostering stronger economic growth by keeping inflation near a target of 2%, might eventually be needed.

    “The upshot is that Governor Ueda is not merely making a temporary effort to not rock the policy boat, but is in fact doubling down on the policy course at present,” Mizuho Bank said in a commentary.

    It noted that “growing risks of a global downturn alongside monetary policy lags means that the BOJ is acutely aware that any distinct tightening now may be caught wrong-footed by a global downturn.”

    In Tokyo, the Nikkei 225 index gained 1.1% to 27,923.37.

    South Korea’s Kospi advanced 1.3%, to 2,545.73. The Bank of Korea left its policy rate unchanged at 3.5% for a second straight meeting, one of many regional banks that are now slowing or reversing rate increases due to signs of weakness in the global economy.

    Hong Kong’s Hang Seng added 0.3% to 20,385.68, while the S&P/ASX 200 climbed 1.3% to 7,311.10. In Mumbai, the Sensex gained 0.3%to 60,051.94.

    The Shanghai Composite index lost 0.3% to 3,305.19.

    On Monday, the S&P 500 edged 0.1% higher to 4,109.11. Big tech stocks fell more than the rest of the market, which helped pull the Nasdaq composite down less than 0.1%, to 12,084.36. It was down as much as 1.4% earlier in the day. The Dow Jones Industrial Average was steadier, rising 0.3% to 33,586.52.

    Higher rates tend to hit tech and other high-growth stocks the hardest, and Apple and Microsoft were the two heaviest drags on the S&P 500. Apple fell 1.6%, and Microsoft slipped 0.8.%.

    Tesla also dipped 0.3% after paring a sharper, early loss. The company cut prices on its entire U.S. model lineup in an apparent attempt to to entice buyers amid rising interest rates, which make auto loans more expensive.

    The Fed has raised interest rates at a furious pace over the last year in hopes of undercutting high inflation. Higher rates can do that, but only by bluntly slowing the entire economy in one fell swoop. That raises the risk of a recession in the future and drags down prices for stocks, bonds and other investments.

    The Fed has jacked up rates at every one of its meetings over the past year, forcing them up from near zero at the start of 2022.

    On Wednesday, the U.S. government will release its latest monthly update on prices across the economy at the consumer level. Economists expect it to show inflation slowed last month but remains well above the Fed’s target.

    Also this week, earnings reporting season will begin for the biggest U.S. companies. Delta Air Lines, JPMorgan Chase and UnitedHealth Group will be among the first S&P 500 companies to tell investors how much profit they made during the first three months of the year.

    Expectations are low, and analysts are forecasting the sharpest drop in earnings per share for S&P 500 companies since the pandemic pummeled the economy in the spring of 2020.

    In other trading Tuesday, U.S. benchmark crude gained 76 cents to $80.50 per barrel in electronic trading on the New York Mercantile Exchange.

    Brent crude, the international pricing standard, added 73 cents to $84.91 per barrel.

    The dollar slipped to 133.38 Japanese yen from 133.59 yen. The euro rose to $1.0896 from $1.0864.

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  • Asian shares higher after report shows resilience in US jobs

    Asian shares higher after report shows resilience in US jobs

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    Shares were mostly higher in Asia on Monday after a report Friday showed resilience in the U.S. jobs market. European markets were closed for Easter holidays.

    Benchmarks rose in Tokyo and Seoul but fell in Shanghai. Markets were closed in Hong Kong and Sydney. U.S. futures were mixed and oil prices climbed.

    The highly anticipated report on U.S. employment showed hiring slowed more than expected but remained steady last month.

    Friday’s jobs report showed that American employers added 236,000 jobs last month, a slowdown from February’s 326,000 and slightly below economists’ expectations. Wages, meanwhile, grew 0.3% from February to match expectations. But year-over-year wage gains slowed to 4.2% from 4.6%.

    Asian central banks are also struggling to steer the delicate course of curbing inflation while avoiding putting economies into recession.

    In Asian trading Monday, Tokyo’s Nikkei 225 index added 0.4% to 27,633.66. In Seoul, the Kospi surged 0.9% to 2,512.08

    The Shanghai Composite index gave up early gains, losing 0.4% to 3,315.36. Shares rose in Taiwan but fell in Southeast Asia.

    The Federal Reserve faces a tough decision over whether to raise interest rates to drive down inflation that’s still high or hold off given signs of a slowing economy.

    “I suspect we are entering the peak uncertainty phase around the Fed’s next move as investors debate if credit tightening from financial stress will be enough to warrant cuts or if we are heading for more hikes,” Stephen Innes of SPI Asset Management said in a commentary.

    The U.S. stock market was closed in observance of Good Friday, as were many markets across Europe. That left the U.S. bond market as one of the few open to react to the latest jobs update.

    The immediate reaction from the bond market seemed to lean toward another hike. Not only did yields rise for Treasurys, so did bets for the Fed to raise rates by another quarter of a percentage point in May at its next meeting.

    The yield on the 10-year Treasury climbed to 3.40% from 3.30% late Thursday. It was at 3.36% early Monday.

    Raising rates is one of the Fed’s most effective ways to undercut inflation, but it’s a notoriously blunt tool that works only by slowing the entire economy. That raises the risk of a recession and hurts prices for stocks, bonds and other investments.

    More data are coming this week, with the latest monthly update on prices consumers are paying on Wednesday. Economists expect it to show inflation slowing but well above the Fed’s target.

    Many economists see a recession later this year as likely. But some say a narrow possibility still exists where the Fed could raise rates just enough to get inflation fully under control without causing a severe recession.

    In other trading, U.S. benchmark crude gained 20 cents to $80.90 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, picked up 13 cents to $85.25 per barrel.

    The dollar fell to 132.10 Japanese yen from 132.16 yen. The euro rose to $1.0911 from $1.0902.

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  • Asian shares higher after report shows resilience in US jobs

    Asian shares higher after report shows resilience in US jobs

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    Shares were mostly higher in Asia on Monday after a report Friday showed resilience in the U.S. jobs market.

    Benchmarks rose in Tokyo and Seoul but fell in Shanghai. Markets were closed in Hong Kong and Sydney after last week ended with Good Friday holidays in many countries. U.S. futures and oil prices advanced.

    The highly anticipated report on U.S. employment showed hiring slowed more than expected but remained steady last month.

    Friday’s jobs report showed that American employers added 236,000 jobs last month, a slowdown from February’s 326,000 and slightly below economists’ expectations. Wages, meanwhile, grew 0.3% from February to match expectations. But year-over-year wage gains slowed to 4.2% from 4.6%.

    Asian central banks are also struggling to steer the delicate course of curbing inflation while avoiding putting economies into recession.

    In Asian trading Monday, Tokyo’s Nikkei 225 index added 0.4% to 27633.98. In Seoul, the Kospi surged 1% to 2,515.49.

    The Shanghai Composite index gave up early gains, losing 0.1% to 3,326.17. Shares rose in Taiwan but fell in Southeast Asia.

    The Federal Reserve faces a tough decision over whether to raise interest rates to drive down inflation that’s still high or hold off given signs of a slowing economy.

    “”I suspect we are entering the peak uncertainty phase around the Fed’s next move as investors debate if credit tightening from financial stress will be enough to warrant cuts or if we are heading for more hikes,” Stephen Innes of SPI Asset Management said in a commentary.

    The U.S. stock market was closed in observance of Good Friday, as were many markets across Europe. That left the U.S. bond market as one of the few open to react to the latest jobs update.

    The immediate reaction from the bond market seemed to lean toward another hike. Not only did yields rise for Treasurys, so did bets for the Fed to raise rates by another quarter of a percentage point in May at its next meeting.

    The yield on the 10-year Treasury climbed to 3.40% from 3.30% late Thursday. It was at 3.37% early Monday.

    A cooler job market is exactly what the Fed is trying to achieve. Raising rates is one of the Fed’s most effective ways to undercut inflation, but it’s a notoriously blunt tool that works only by slowing the entire economy. That raises the risk of a recession and hurts prices for stocks, bonds and other investments.

    More data are coming this week, with the latest monthly update on prices consumers are paying on Wednesday. Economists expect it to show inflation slowing but well above the Fed’s target.

    Many economists see a recession later this year as likely. But some say a narrow possibility still exists where the Fed could raise rates just enough to get inflation fully under control without causing a severe recession.

    In other trading, U.S. benchmark crude picked up 7 cents to $80.77 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, edged 1 cent higher to $85.13 per barrel.

    The dollar rose to 132.57 Japanese yen from 132.16 yen. The euro was unchanged at $1.0902.

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  • Asian shares mostly fall amid worries about slowing economy

    Asian shares mostly fall amid worries about slowing economy

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    TOKYO — Asian shares were trading mostly lower Thursday as investors turned their attention to upcoming earnings reports and other economic indicators.

    Japan’s benchmark Nikkei 225 shed 1.3% in afternoon trading to 27,439.88. Australia’s S&P/ASX 200 slipped 0.4% to 7,208.10. South Korea’s Kospi fell 1.4% to 2,461.12. Hong Kong’s Hang Seng lost 0.4% to 20,204.33. The Shanghai Composite slipped less than 0.1% to 3,311.55.

    While efforts to cool inflation by raising interest rates are designed to slow overheated economies, the worry is that central bank policymakers might overdo it, leading to recession.

    Many regional economies are seeing weakness in exports due to softer demand in major markets like the United States. That has dulled the impact of a rebound in China as its economy recovers from pandemic-related disruptions.

    Stocks on Wall Street mostly slipped Wednesday following the latest signals that the U.S. economy is slowing under the weight of much higher interest rates.

    “Wall Street is realizing that you need a strong economy to keep stocks heading higher,” Edward Moya of Oanda said in a commentary. “The US economy is clearly in slowdown mode and expectations should be for further labor market weakness.”

    The S&P 500 dipped 0.2% to 4,090.38 and the Dow Jones Industrial Average rose 0.2% to 33,482.72. But the Nasdaq composite dropped 1.1% to 11,996.86.

    One report from the Institute for Supply Management said that growth in the U.S. services sector slowed last month by more than economists expected, as the pace of new orders cooled. A separate report suggested private employers added 145,000 jobs in March, down sharply from February’s 261,000. Perhaps more importantly for markets, pay raises also weakened for workers, according to the ADP Research Institute.

    ADP’s private payroll report could offer a preview of what Friday’s more comprehensive jobs report from the U.S. government will show. Economists expect it to say employers added 240,000 jobs last month, down from 311,000 in February.

    If the job market really is slowing from the strong growth that’s helped to prop up the larger economy recently, it could offer the Fed reason to pause on its hikes to interest rates.

    That’s a big deal for markets not only because it could lessen the odds of an upcoming recession, which some economists already see as a high probability. Higher rates also drag on prices for stocks, bonds and other investments.

    Other reports on the economy this week also came in weaker than expected, including readings on the number of job openings across the country and the health of the manufacturing sector.

    The reports have traders increasing bets for the Fed to hold rates steady at its next meeting in May, which would be the first time that’s happened in more than a year. Many traders are also betting the Fed will have to cut rates later this year, something that can act like steroids for markets.

    The Fed, though, has consistently said it doesn’t expect to cut rates this year.

    On the winning side Wednesday was Johnson & Johnson, which rose 4.5% after it proposed to pay nearly $9 billion to cover allegations that its baby powder containing talc caused cancer. It was one of the biggest drivers of the Dow Jones Industrial Average’s gain for Wednesday.

    In the bond market, the yield on the 10-year Treasury dipped to 3.30% from 3.34% late Tuesday. It helps set rates for mortgages and other loans. The two-year yield, which tends to move more on expectations for the Fed, slipped to 3.80% from 3.82%.

    Gold held relatively steady and dipped $2.60 to settle at $2,035.60 per ounce. It’s up more than 11% amid worries about the strength of the global banking system.

    In other trading, benchmark U.S. crude fell 58 cents to $80.03 a barrel in electronic trading on the New York Mercantile Exchange. It lost 10 cents to $80.61 on Wednesday. Brent crude, the international standard, fell 56 cents to $84.43 a barrel.

    The U.S. dollar inched down to 131.24 Japanese yen from 131.30 yen. The euro cost $1.0896, down from $1.0908.

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  • Asian shares mostly fall amid worries about slowing economy

    Asian shares mostly fall amid worries about slowing economy

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    TOKYO — Asian shares were trading mostly lower Thursday as investors turned their attention to upcoming earnings reports and other economic indicators.

    Japan’s benchmark Nikkei 225 shed 1.3% in afternoon trading to 27,439.88. Australia’s S&P/ASX 200 slipped 0.4% to 7,208.10. South Korea’s Kospi fell 1.4% to 2,461.12. Hong Kong’s Hang Seng lost 0.4% to 20,204.33. The Shanghai Composite slipped less than 0.1% to 3,311.55.

    While efforts to cool inflation by raising interest rates are designed to slow overheated economies, the worry is that central bank policymakers might overdo it, leading to recession.

    Many regional economies are seeing weakness in exports due to softer demand in major markets like the United States. That has dulled the impact of a rebound in China as its economy recovers from pandemic-related disruptions.

    Stocks on Wall Street mostly slipped Wednesday following the latest signals that the U.S. economy is slowing under the weight of much higher interest rates.

    “Wall Street is realizing that you need a strong economy to keep stocks heading higher,” Edward Moya of Oanda said in a commentary. “The US economy is clearly in slowdown mode and expectations should be for further labor market weakness.”

    The S&P 500 dipped 0.2% to 4,090.38 and the Dow Jones Industrial Average rose 0.2% to 33,482.72. But the Nasdaq composite dropped 1.1% to 11,996.86.

    One report from the Institute for Supply Management said that growth in the U.S. services sector slowed last month by more than economists expected, as the pace of new orders cooled. A separate report suggested private employers added 145,000 jobs in March, down sharply from February’s 261,000. Perhaps more importantly for markets, pay raises also weakened for workers, according to the ADP Research Institute.

    ADP’s private payroll report could offer a preview of what Friday’s more comprehensive jobs report from the U.S. government will show. Economists expect it to say employers added 240,000 jobs last month, down from 311,000 in February.

    If the job market really is slowing from the strong growth that’s helped to prop up the larger economy recently, it could offer the Fed reason to pause on its hikes to interest rates.

    That’s a big deal for markets not only because it could lessen the odds of an upcoming recession, which some economists already see as a high probability. Higher rates also drag on prices for stocks, bonds and other investments.

    Other reports on the economy this week also came in weaker than expected, including readings on the number of job openings across the country and the health of the manufacturing sector.

    The reports have traders increasing bets for the Fed to hold rates steady at its next meeting in May, which would be the first time that’s happened in more than a year. Many traders are also betting the Fed will have to cut rates later this year, something that can act like steroids for markets.

    The Fed, though, has consistently said it doesn’t expect to cut rates this year.

    On the winning side Wednesday was Johnson & Johnson, which rose 4.5% after it proposed to pay nearly $9 billion to cover allegations that its baby powder containing talc caused cancer. It was one of the biggest drivers of the Dow Jones Industrial Average’s gain for Wednesday.

    In the bond market, the yield on the 10-year Treasury dipped to 3.30% from 3.34% late Tuesday. It helps set rates for mortgages and other loans. The two-year yield, which tends to move more on expectations for the Fed, slipped to 3.80% from 3.82%.

    Gold held relatively steady and dipped $2.60 to settle at $2,035.60 per ounce. It’s up more than 11% amid worries about the strength of the global banking system.

    In other trading, benchmark U.S. crude fell 58 cents to $80.03 a barrel in electronic trading on the New York Mercantile Exchange. It lost 10 cents to $80.61 on Wednesday. Brent crude, the international standard, fell 56 cents to $84.43 a barrel.

    The U.S. dollar inched down to 131.24 Japanese yen from 131.30 yen. The euro cost $1.0896, down from $1.0908.

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  • Stocks drift, yields drop on latest sign of slowing economy

    Stocks drift, yields drop on latest sign of slowing economy

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    NEW YORK — Stocks are drifting on Wall Street Wednesday, and Treasury yields are falling following the latest signal that the U.S. job market is slowing under the weight of much higher interest rates.

    The S&P 500 was 0.1% lower in early trading, a day after it broke a four-day winning streak. The Dow Jones Industrial Average was up 100 points, or 0.3%, at 33,503, as of 9:48 a.m. Eastern time, while the Nasdaq composite was 0.6% lower.

    The moves were sharper in the bond market, where yields sank after a report said private employers added 145,000 jobs in March, down by close to half from February’s rate. Perhaps more importantly for markets, pay raises also slowed for workers, according to the ADP Research Institute.

    They’re the latest signs that the economy is slowing following a feverish set of hikes to interest rates by the Federal Reserve meant to get inflation under control. Higher rates can do that, but only by slowing the entire economy with a blunt hammer.

    The hope is that the Fed can pull off the tricky balancing act of slowing the economy and job market just enough to stamp out high inflation, but not so much that it causes a recession. The Fed has hiked rates over the last year at the fastest pace in decades.

    ADP’s private payroll report could offer a sneak preview of what Friday’s more comprehensive jobs report from the U.S. government will show. Economists expect it to say employers added 240,000 jobs last month, down from 311,000 in February and that growth in wages from the prior month accelerated to 0.3%.

    If the job market really is slowing from its strong growth, it could offer the Fed reason to pause on its hikes to interest rates. That’s a big deal for markets not only because it could lessen the odds of an upcoming recession, which some economists already see as a high probability. Higher rates also drag on prices for stocks, bonds and other investments.

    Other reports on the economy this week also came in weaker than expected, including readings on the number of job openings across the country and the health of the manufacturing sector. Coming up later Wednesday will be the latest monthly reading on the U.S. services sector.

    The reports have traders largely betting the Fed will hold rates steady at its next meeting in May, which would be the first time that’s happened in more than a year. Many traders are also betting the Fed will have to cut rates later this year, something that can act like steroids for markets.

    The Fed, though, has been consistently saying it doesn’t expect to cut rates this year. Inflation is still high, and the Fed has talked often about the risk of letting up on the battle too soon. Other central banks around the world are staying aggressive to fight it.

    New Zealand’s central bank raised its key rate by half a percentage point to 5.25%, double the size of what many economists were expecting. It was the Reserve Bank of New Zealand’s 11th straight rate hike as it tries to cool inflation, which is running at 7.2%, far above the bank’s target level of around 2%.

    On Wall Street, the majority of stocks were falling within the S&P 500, but many of the moves were modest.

    On the winning side was FedEx, which rose 3.5% after announcing a plan to restructure its business as part of a $4 billion cost-cutting plan.

    Johnson & Johnson rose 3.1% after it proposed to pay nearly $9 billion to cover allegations that its baby power containing talc caused cancer.

    In the bond market, the yield on the 10-year Treasury fell to 3.31% from 3.34% late Tuesday. It helps set rates for mortgages and other loans. The two-year yield, which tends to move more on expectations for the Fed, dropped to 3.75% from 3.82%. ___

    AP Business Writers Yuri Kageyama and Matt Ott contributed.

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  • Asian stocks follow Wall St up ahead of US inflation update

    Asian stocks follow Wall St up ahead of US inflation update

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    BEIJING — Asian stocks followed Wall Street higher Friday ahead of a United States inflation update traders hope might prompt the Federal Reserve to ease plans for more interest rate hikes.

    Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil prices declined.

    Wall Street rose Thursday as worries about the global financial system eased following the collapse of two U.S. banks and one in Switzerland.

    Traders hope a measure of U.S. inflation due out Friday that is closely watched by the Federal Reserve will show upward pressure on prices easing. That might prompt the Fed to postpone plans for a possible rate hike at its May meeting.

    A softer inflation reading would be a “signal to continue with the risk-on theme,” said Tim Waterer of Kohle Capital Markets in a report.

    The Shanghai Composite Index rose 0.3% to 3,270.70 and the Hang Seng in Hong Kong gained 0.7% to 20,458.17.

    The Nikkei 225 in Tokyo advanced 0.9% to 28,033.53 after government data showed factory output rebounded and retail sales rose in February.

    The Kospi in Seoul added 0.9% to 2,475.06 and Sydney’s S&P-ASX 200 was 0.8% higher at 7,177.80.

    India’s Sensex opened up 1% at 58,567.37. New Zealand and Jakarta declined while Singapore and Bangkok advanced.

    Traders were rattled by this month’s bank failures but regulators appear to have calmed fears by promising lending measures if needed to keep other institutions stable after repeated rate hikes caused prices of bonds and other assets on their books to fall.

    Markets have shifted focus back to uncertainty about the global economic outlook as the Fed and other central banks try to extinguish inflation.

    Traders have begun betting the Fed will be forced to cut rates as early as mid-year to shore up economic growth. That is despite statements by Fed officials that they plan to raise rates one more time before holding them steady into at least early 2024.

    The Fed’s key lending rate stands at a range of 4.75% to 5%, up from close to zero at the start of last year.

    On Wall Street, the benchmark S&P 500 index rose 0.6% on Thursday to 4,050.83 for its fifth gain in six days.

    The Dow Jones Industrial Average rose 0.4% to 32,859.03. The Nasdaq composite gained 0.7%, to 12,013.47.

    Expectations for easier rates in turn have helped to buoy the Big Tech stocks that dominate the S&P 500 and other indexes.

    Amazon rose 1.7% on Thursday, while Apple and Microsoft also rose.

    A report Thursday showed slightly more U.S. workers applied for unemployment benefits last week than expected. That could be a sign of increased layoffs, but the number is low compared with historical levels.

    In a separate report, the government revised down its estimate for how much the U.S. economy grew during the last three months of 2022. But it also still showed growth.

    In energy markets, benchmark U.S. crude shed 5 cents to $74.32 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.40 on Thursday to $74.37. Brent crude, the price basis for international oil trading, lost 16 cents to $78.44 per barrel in London. It advanced 99 cents the previous session to $79.27.

    The dollar gained to 132.99 yen from Thursday’s 132.47 yen. The euro declined to $1.0896 from $1.0904.

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  • How major US stock indexes fared Thursday 3/30/2023

    How major US stock indexes fared Thursday 3/30/2023

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    Stocks closed higher again as more fear evaporates from Wall Street

    Stocks closed higher again as more fear evaporates from Wall Street.

    The S&P 500 added 0.6% Thursday, its fifth gain in the last six days. The benchmark index is headed for a gain in March after struggling in earlier weeks on worries about whether the banking system was cracking under the weight of higher interest rates.

    Forceful actions by regulators worldwide have helped restore confidence. Also boosting stocks have been big bets that the Federal Reserve may cut rates in coming months. But such expectations are also raising concerns of their own for some professionals on Wall Street.

    On Thursday:

    The S&P 500 rose 23.02 points, or 0.6%, to 4,050.83.

    The Dow Jones Industrial Average rose 141.43 points, or 0.4%, to 32,859.03.

    The Nasdaq composite rose 87.24 points, or 0.7% to 12,013.47.

    The Russell 2000 index of smaller companies fell 3.22 points, or 0.2%, to 1,768.38.

    For the week:

    The S&P 500 is up 79.84 points, or 2%.

    The Dow is up 621.50 points, or 1.9%.

    The Nasdaq is up 189.51 points, or 1.6%.

    The Russell 2000 is up 33.46 points, or 1.9%.

    For the year:

    The S&P 500 is up 211.33 points, or 5.5%.

    The Dow is down 288.22 points, or 0.9%.

    The Nasdaq is up 1,546.99 points, or 14.8%.

    The Russell 2000 is up 7.14 points, or 0.4%.

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  • China e-commerce giant Alibaba outlines future strategy

    China e-commerce giant Alibaba outlines future strategy

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    HONG KONG — Top executives of Chinese e-commerce and financial giant Alibaba said Thursday that the company is moving toward giving up control of some of its business units in a transition toward becoming a capital operator to optimize the value of its sprawling businesses.

    Alibaba CEO Daniel Zhang outlined details of a plan announced earlier this week to split Alibaba into six main groups as a prelude toward stock listings of some of its companies. The restructuring marks a new stage in Alibaba’s growth after a series of setbacks as regulators cracked down on it and other tech companies.

    Alibaba, whose headquarters is in the eastern city of Hangzhou, will be “in the nature of a holding company that is the controlling shareholder of the business group companies,” Zhang said in a conference call.

    Alibaba’s CFO, Toby Xu, said the company would continue to evaluate the strategic importance of group companies after they go public and decide whether or not to retain control. He declined to say when they might go public.

    “We believe the market is the best litmus test, so each business group company can pursue independent fundraising and IPOs as and when they are ready,” Xu said.

    Alibaba’s stock prices in Hong Kong and New York have rallied nearly 15% since the restructuring was announced Tuesday. The firm’s Hong Kong-listed stock was up 0.9% by midday Thursday.

    The plan, and the recent return of Alibaba founder Jack Ma to China after months abroad appear to mark a turnaround after several hard years. Chinese regulators singled out Alibaba for scrutiny in a crackdown on technology and internet companies, putting the brakes on a planned initial public offering in 2020 of Alibaba’s financial affiliate Ant Group.

    Ma had kept a low profile with few public appearances since Nov. 2020, when he had publicly criticized China’s regulators and financial systems during a speech in Shanghai.

    Ant had been set to raise $34.5 billion in what would have been the world’s largest share offering at the time. Alibaba was later investigated and fined $2.8 billion for breaching antitrust rules as Chinese authorities cracked down on the once-freewheeling technology industry.

    “The looser connections between the business units is in line with the regulatory stance of encouraging competition,” said an analyst’s note from Moody’s Investor Service.

    Alibaba is to split into its Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group. Each group apart from Taobao Tmall could potentially seek an initial public offering. Taobao Tmall will remain wholly-owned by Alibaba Group.

    Among other things, the restructuring plan might allay past antitrust concerns, since as Zhang explained, each Alibaba business unit would be empowered to make its own decisions and raise capital independently. He said that having business units operate independently should also foster innovation and growth after years of harsh COVID-19 restrictions that battered China’s economy.

    Alibaba’s restructure — the first of its kind in the Chinese technology industry — also could serve as an example for similar companies such as online games company Tencent to follow suit. Tencent’s shares rallied after Alibaba’s announcement on Monday.

    “We think that Alibaba’s new organizational structure could be used by Chinese regulators as a template for other Chinese Big Tech firms,” said a report by CreditSights.

    Francis Lun, CEO of Geo Securities in Hong Kong, said that in the short term Alibaba’s move will likely allow the group to raise more capital. But it might be more difficult for the company to stay competitive in mergers and acquisitions.

    “When you split into six business units, you’d just be a lightweight competing against the heavyweights such as Apple, Amazon and Alphabet,” Lun said.

    He pointed out that only Alibaba’s e-commerce and cloud units were profitable and that in the long-term, the other units may not succeed.

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  • China e-commerce giant Alibaba outlines future strategy

    China e-commerce giant Alibaba outlines future strategy

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    HONG KONG — Top executives of Chinese e-commerce and financial giant Alibaba said Thursday that the company is moving toward giving up control of some of its business units in a transition toward becoming a capital operator to optimize the value of its sprawling businesses.

    Alibaba CEO Daniel Zhang outlined details of a plan announced earlier this week to split Alibaba into six main groups as a prelude toward stock listings of some of its companies. The restructuring marks a new stage in Alibaba’s growth after a series of setbacks as regulators cracked down on it and other tech companies.

    Alibaba, whose headquarters is in the eastern city of Hangzhou, will be “in the nature of a holding company that is the controlling shareholder of the business group companies,” Zhang said in a conference call.

    Alibaba’s CFO, Toby Xu, said the company would continue to evaluate the strategic importance of group companies after they go public and decide whether or not to retain control. He declined to say when they might go public.

    “We believe the market is the best litmus test, so each business group company can pursue independent fundraising and IPOs as and when they are ready,” Xu said.

    Alibaba’s stock prices in Hong Kong and New York have rallied nearly 15% since the restructuring was announced Tuesday. The firm’s Hong Kong-listed stock was up 0.9% by midday Thursday.

    The plan, and the recent return of Alibaba founder Jack Ma to China after months abroad appear to mark a turnaround after several hard years. Chinese regulators singled out Alibaba for scrutiny in a crackdown on technology and internet companies, putting the brakes on a planned initial public offering in 2020 of Alibaba’s financial affiliate Ant Group.

    Ma had kept a low profile with few public appearances since Nov. 2020, when he had publicly criticized China’s regulators and financial systems during a speech in Shanghai.

    Ant had been set to raise $34.5 billion in what would have been the world’s largest share offering at the time. Alibaba was later investigated and fined $2.8 billion for breaching antitrust rules as Chinese authorities cracked down on the once-freewheeling technology industry.

    “The looser connections between the business units is in line with the regulatory stance of encouraging competition,” said an analyst’s note from Moody’s Investor Service.

    Alibaba is to split into its Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group. Each group apart from Taobao Tmall could potentially seek an initial public offering. Taobao Tmall will remain wholly-owned by Alibaba Group.

    Among other things, the restructuring plan might allay past antitrust concerns, since as Zhang explained, each Alibaba business unit would be empowered to make its own decisions and raise capital independently. He said that having business units operate independently should also foster innovation and growth after years of harsh COVID-19 restrictions that battered China’s economy.

    Alibaba’s restructure — the first of its kind in the Chinese technology industry — also could serve as an example for similar companies such as online games company Tencent to follow suit. Tencent’s shares rallied after Alibaba’s announcement on Monday.

    “We think that Alibaba’s new organizational structure could be used by Chinese regulators as a template for other Chinese Big Tech firms,” said a report by CreditSights.

    Francis Lun, CEO of Geo Securities in Hong Kong, said that in the short term Alibaba’s move will likely allow the group to raise more capital. But it might be more difficult for the company to stay competitive in mergers and acquisitions.

    “When you split into six business units, you’d just be a lightweight competing against the heavyweights such as Apple, Amazon and Alphabet,” Lun said.

    He pointed out that only Alibaba’s e-commerce and cloud units were profitable and that in the long-term, the other units may not succeed.

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  • Global shares mostly rise on relief over US bank strength

    Global shares mostly rise on relief over US bank strength

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    TOKYO — Global shares were mostly higher on Tuesday as investors got some relief from worries over troubled U.S. lenders from a takeover of failed Silicon Valley Bank.

    France’s CAC 40 added 0.5% to 7,116.72 in early trading. Germany’s DAX rose 0.4% to 15,191.93. Britain’s FTSE 100 gained 0.4% to 7,504.04. The future for the Dow Jones Industrial Average gained 0.1% while the future for the S&P 500 was virtually unchanged.

    Asian shares finished higher. Japan’s benchmark Nikkei 225 edged up 0.2% to finish at 27,518.25. Australia’s S&P/ASX 200 jumped 1.0% to 7,034.10. South Korea’s Kospi added 1.1% to 2,434.94. Hong Kong’s Hang Seng rose 0.9% to 19,751.94, while the Shanghai Composite slipped 0.2% to 3,245.38.

    “Asian equities were positive on Tuesday, lifted by mostly higher major indices in the previous session. Receding fears surrounding the banking crisis and surging oil prices led to solid risk-taking flows,” Anderson Alves of ActivTrades said in a report.

    Markets have been in turmoil following Silicon Valley Bank’s collapse, the second-largest U.S. bank failure in history, earlier this month, and then the third-largest failure, by New York-based Signature Bank.

    On Monday, the S&P 500 eked out a 0.2% gain led by bank and energy stocks. The Dow industrials rose 0.6%, while the Nasdaq composite fell 0.5%, reflecting losses in Google parent Alphabet and other tech companies.

    Investors have been hunting for which banks could be next to fall as the system creaks under the pressure of much higher interest rates.

    A broader worry has been that all the weakness for banks could cause a pullback in lending to small and midsized businesses across the country. That in turn could lead to less hiring, less growth and a higher risk of a recession. Many economists were already expecting an economic downturn before all the struggles for banks.

    The Federal Reserve has pulled its key overnight rate to a range of 4.75% to 5%, up from virtually zero at the start of last year. It indicated last week that the troubles in the banking system could end up acting like rate hikes on their own, by slowing lending.

    Huge, quick swings in expectations for the Fed have caused historic-sized moves in the bond market.

    Yields jumped Monday in their latest lunge. The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, rose to 3.53% from 3.37% late Friday. It was above 4% earlier this month.

    In energy trading, benchmark U.S. crude added 43 cents to $73.24 a barrel in electronic trading on the New York Mercantile Exchange. It gained $3.55 to $72.81 per barrel on Monday.

    Brent crude, the international standard, rose 24 cents to $78.36 a barrel.

    In currency trading, the U.S. dollar fell to 131.17 Japanese yen from 131.56 yen. The euro cost $1.0823, up from $1.0804.

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  • Asian shares mixed after weekend lull in bank worries

    Asian shares mixed after weekend lull in bank worries

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    BANGKOK — Asian shares were mixed on Monday after stocks on Wall Street shook off a weak start to end higher on Wall Street last week despite persisting worries over banks on both sides of the Atlantic.

    Coming off a lull in fresh news of troubles over the weekend, benchmarks slipped in Hong Kong, Shanghai, Seoul and Taiwan but rose in Tokyo and Sydney. U.S. futures gained and oil prices were little changed.

    Concerns that higher interest rates are squeezing lenders have revived fears of recession and raised uncertainty about policies of the Federal Reserve and other central banks. On Friday, news about Deutsche Bank’s credit default swaps was the latest big news to shake the markets.

    “This is keeping financial stocks pressured with traders on the lookout for any other potential pockets of trouble in the global financial system,” Tim Waterer, an analyst at Kohle Capital Markets, said in a commentary. Given recent market gains, “it’s fair to say that traders are putting on a brave face despite no assurances that we have seen the last of the banking sector woes,” he said.

    The managing director of the International Monetary Fund, Kristalina Georgieva, told a conference in Beijing on Sunday that risks to financial stability have risen as interest rates are raised to fight inflation. She said actions by central banks and other regulators have helped to ease strains on markets, “but uncertainty is high, which underscores the need for vigilance.”

    Chinese markets declined Monday after the government reported that industrial profits fell nearly 23% in the first two months of the year from a year earlier.

    Hong Kong’s Hang Seng gave up 0.5% to 19,815.03 and the Shanghai Composite index lost 1.1% to 3,231.28.

    Tokyo’s Nikkei 225 added 0.4% to 27,501.60 and the Kospi in Seoul shed 0.3% to 2,408.58. Australia’s S&P/ASX 200 edged 0.2% higher, to 6,969.20 and the Sensex in Mumbai gained 0.4%. Shares edged higher in Bangkok.

    On Friday, the S&P 500 rose 0.6%, marking its second straight weekly gain, to close at 3,970.99. The Dow Jones Industrial Average added 0.4% to 32,237.53 and the Nasdaq composite climbed 0.3% to 11,823.96. The Russell 2000 index rose 0.9% to 1,734.92.

    Investors are focused on what the Federal Reserve and other central banks will do with interest rates going forward after the recent spate of turmoil in the banking sector.

    Deutsche Bank ‘s stock tumbled 8.5% in Germany on Friday and shares of other major European banks suffered smaller declines. Earlier this month, shares of and faith in Swiss bank Credit Suisse, which has its own unique set of troubles, fell so much that regulators brokered a takeover of it by rival UBS.

    The second- and third-largest U.S. bank failures in history earlier this month, of Silicon Valley Bank and Signature Bank, have cast a harsher spotlight across the entire banking industry. Investors have zeroed in on smaller and midsized banks, the ones below in size of the “too-big-to-fail” banks and seen as greater risks.

    Pressure on lenders could hinder lending to small and midsized businesses across the country. That in turn could lead to less hiring, a weaker economy and a higher potential for a recession that many economists already saw as likely.

    Friday’s reports on the economy came in mixed, with orders for long-lasting manufactured goods slower last month than economists expected while business activity showed the fastest uptick in almost a year, according to a preliminary report from S&P Global.

    In other trading, U.S. benchmark crude oil picked up 2 cents to $69.28 per barrel in electronic trading on the New York Mercantile Exchange. It lost 70 cents to $69.26 on Friday.

    Brent crude, the pricing basis for international trading, lost 3 cents to $74.55 in London.

    The U.S. dollar rose to 130.64 Japanese yen from 130.57 yen. The euro weakened to $1.0771 from $1.0774.

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  • Asian shares mixed after weekend lull in bank worries

    Asian shares mixed after weekend lull in bank worries

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    BANGKOK — Asian shares were mixed on Monday after stocks on Wall Street shook off a weak start to end higher on Wall Street last week despite persisting worries over banks on both sides of the Atlantic.

    Coming off a lull in fresh news of troubles over the weekend, benchmarks slipped in Hong Kong, Shanghai, Seoul and Taiwan but rose in Tokyo and Sydney. U.S. futures gained and oil prices were little changed.

    Concerns that higher interest rates are squeezing lenders have revived fears of recession and raised uncertainty about policies of the Federal Reserve and other central banks. On Friday, news about Deutsche Bank’s credit default swaps was the latest big news to shake the markets.

    “This is keeping financial stocks pressured with traders on the lookout for any other potential pockets of trouble in the global financial system,” Tim Waterer, an analyst at Kohle Capital Markets, said in a commentary. Given recent market gains, “it’s fair to say that traders are putting on a brave face despite no assurances that we have seen the last of the banking sector woes,” he said.

    The managing director of the International Monetary Fund, Kristalina Georgieva, told a conference in Beijing on Sunday that risks to financial stability have risen as interest rates are raised to fight inflation. She said actions by central banks and other regulators have helped to ease strains on markets, “but uncertainty is high, which underscores the need for vigilance.”

    Chinese markets declined Monday after the government reported that industrial profits fell nearly 23% in the first two months of the year from a year earlier.

    Hong Kong’s Hang Seng gave up 0.5% to 19,815.03 and the Shanghai Composite index lost 1.1% to 3,231.28.

    Tokyo’s Nikkei 225 added 0.4% to 27,501.60 and the Kospi in Seoul shed 0.3% to 2,408.58. Australia’s S&P/ASX 200 edged 0.2% higher, to 6,969.20 and the Sensex in Mumbai gained 0.4%. Shares edged higher in Bangkok.

    On Friday, the S&P 500 rose 0.6%, marking its second straight weekly gain, to close at 3,970.99. The Dow Jones Industrial Average added 0.4% to 32,237.53 and the Nasdaq composite climbed 0.3% to 11,823.96. The Russell 2000 index rose 0.9% to 1,734.92.

    Investors are focused on what the Federal Reserve and other central banks will do with interest rates going forward after the recent spate of turmoil in the banking sector.

    Deutsche Bank ‘s stock tumbled 8.5% in Germany on Friday and shares of other major European banks suffered smaller declines. Earlier this month, shares of and faith in Swiss bank Credit Suisse, which has its own unique set of troubles, fell so much that regulators brokered a takeover of it by rival UBS.

    The second- and third-largest U.S. bank failures in history earlier this month, of Silicon Valley Bank and Signature Bank, have cast a harsher spotlight across the entire banking industry. Investors have zeroed in on smaller and midsized banks, the ones below in size of the “too-big-to-fail” banks and seen as greater risks.

    Pressure on lenders could hinder lending to small and midsized businesses across the country. That in turn could lead to less hiring, a weaker economy and a higher potential for a recession that many economists already saw as likely.

    Friday’s reports on the economy came in mixed, with orders for long-lasting manufactured goods slower last month than economists expected while business activity showed the fastest uptick in almost a year, according to a preliminary report from S&P Global.

    In other trading, U.S. benchmark crude oil picked up 2 cents to $69.28 per barrel in electronic trading on the New York Mercantile Exchange. It lost 70 cents to $69.26 on Friday.

    Brent crude, the pricing basis for international trading, lost 3 cents to $74.55 in London.

    The U.S. dollar rose to 130.64 Japanese yen from 130.57 yen. The euro weakened to $1.0771 from $1.0774.

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  • Asian shares fall on banking turmoil, recession worries

    Asian shares fall on banking turmoil, recession worries

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    BANGKOK — Shares fell Friday in Asia as worries over turmoil in the banking sector and recession risks overshadowed gains on Wall Street.

    Benchmarks declined in most major markets, while U.S. futures were higher. Oil prices fell.

    Investors are worried that more banks might suffer a debilitating exodus of customers following the second- and third-largest U.S. bank failures in history. That turmoil is clouding the outlook for what the Federal Reserve will do with interest rates after hiking them to market-rattling heights over the last year.

    The fear is that all the turmoil in the banking industry could cause a sharp pullback in lending to small and midsized businesses around the country. That could put more pressure on the economy, raising the risk for a recession that many economists already saw as likely.

    Regional banks shares in Asia were modestly lower Friday, with HSBC Holdings plc losing 2.7% in Hong Kong while mid-sized Japanese bank Resona Holdings declined 3%.

    Shares in Japanese energy and electronics company Toshiba Corp. gained 4.3% after it announced late Thursday that it had accepted a $15 billion tender offer from a buyout fund made up of the nation’s major banks and companies. If regulators approve it, the proposed buyout by private equity firm Japan Industrial Partners would be a major step in troubled Toshiba’s yearslong turnaround effort, allowing it to go private.

    Tokyo’s Nikkei 225 index lost 0.1% to 27,385.25 and the Kospi in Seoul gave up 0.4% to 2,414.96. Hong Kong’s Hang Seng slipped 0.8% to 19,885.45 and the Shanghai Composite index edged 0.1% lower, to 3,265.55.

    Australia’s S&P/ASX 200 shed 0.2% to 6,955.20. Shares rose in Bangkok, Mumbai and Taiwan.

    On Thursday, the S&P 500 added 0.3% for its third gain in four days, closing at 3,948.72. The Dow Jones Industrial Average gained 0.2% to 32,105.25 after seeing an early gain of 481 points evaporate. The Nasdaq composite held up better thanks to strength in technology shares, gaining 1% to 11,787.40.

    Big technology and other high-growth stocks were among the strongest on Wall Street. Nvidia rose 2.7%, and Microsoft gained 2%.

    Stocks fell sharply the day before after the Federal Reserve indicated that while the end may be near for its hikes to interest rates, it still doesn’t expect to cut rates this year. Fed Chair Jerome Powell also insisted the Fed could keep raising rates if inflation stays high.

    Markets were also still mulling comments from Treasury Secretary Janet Yellen, who said the government is not considering blanket protections for all customers at all banks. She did say the government will make all depositors whole at banks, on a case-by-case basis, if failing to do so would pose a risk for the broader system.

    Implicit in that is perhaps the hint that any bank failure could be seen as such a systemic risk. Failures at both Silicon Valley Bank and Signature Bank met that criteria. Depositors were promised all their money, even those with more than the $250,000 limit insured by the Federal Deposit Insurance Corp.

    Stocks in the financial industry ended up being the heaviest weight on the S&P 500 despite rising in the morning. First Republic Bank fell 6% after giving up a gain of nearly 10%.

    The Fed’s Powell said such fears were part of the reason the central bank raised rates by only a quarter of a percentage point Wednesday instead of more. A pullback in lending could act almost like a rate hike on its own, he said.

    In markets abroad, stocks in London fell 0.9% after the Bank of England also raised its key rate by a quarter of a percentage point. Stocks were mixed elsewhere across Europe and Asia.

    On Wall Street, shares of Coinbase Global fell 14.1% after the cryptocurrency trading platform said it had been warned by the Securities and Exchange Commission that it could face charges of violating U.S. securities laws.

    In other trading Friday, U.S. benchmark crude oil slipped 1 cent to $69.95 per barrel in electronic trading on the New York Mercantile Exchange. It gave up 94 cents to $69.96 per barrel.

    Brent crude, the pricing basis for international oil, lost 5 cents to $75.45 per barrel.

    The U.S. dollar fell to 130.33 yen from 130.83 yen. The euro slipped to $1.0831 from $1.0833.

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  • Asian shares fall on banking turmoil, recession worries

    Asian shares fall on banking turmoil, recession worries

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    BANGKOK — Shares fell Friday in Asia as worries over turmoil in the banking sector and recession risks overshadowed gains on Wall Street.

    Benchmarks declined in most major markets, while U.S. futures were higher. Oil prices fell.

    Investors are worried that more banks might suffer a debilitating exodus of customers following the second- and third-largest U.S. bank failures in history. That turmoil is clouding the outlook for what the Federal Reserve will do with interest rates after hiking them to market-rattling heights over the last year.

    The fear is that all the turmoil in the banking industry could cause a sharp pullback in lending to small and midsized businesses around the country. That could put more pressure on the economy, raising the risk for a recession that many economists already saw as likely.

    Regional banks shares in Asia were modestly lower Friday, with HSBC Holdings plc losing 2.7% in Hong Kong while mid-sized Japanese bank Resona Holdings declined 3%.

    Shares in Japanese energy and electronics company Toshiba Corp. gained 4.3% after it announced late Thursday that it had accepted a $15 billion tender offer from a buyout fund made up of the nation’s major banks and companies. If regulators approve it, the proposed buyout by private equity firm Japan Industrial Partners would be a major step in troubled Toshiba’s yearslong turnaround effort, allowing it to go private.

    Tokyo’s Nikkei 225 index lost 0.1% to 27,385.25 and the Kospi in Seoul gave up 0.4% to 2,414.96. Hong Kong’s Hang Seng slipped 0.8% to 19,885.45 and the Shanghai Composite index edged 0.1% lower, to 3,265.55.

    Australia’s S&P/ASX 200 shed 0.2% to 6,955.20. Shares rose in Bangkok, Mumbai and Taiwan.

    On Thursday, the S&P 500 added 0.3% for its third gain in four days, closing at 3,948.72. The Dow Jones Industrial Average gained 0.2% to 32,105.25 after seeing an early gain of 481 points evaporate. The Nasdaq composite held up better thanks to strength in technology shares, gaining 1% to 11,787.40.

    Big technology and other high-growth stocks were among the strongest on Wall Street. Nvidia rose 2.7%, and Microsoft gained 2%.

    Stocks fell sharply the day before after the Federal Reserve indicated that while the end may be near for its hikes to interest rates, it still doesn’t expect to cut rates this year. Fed Chair Jerome Powell also insisted the Fed could keep raising rates if inflation stays high.

    Markets were also still mulling comments from Treasury Secretary Janet Yellen, who said the government is not considering blanket protections for all customers at all banks. She did say the government will make all depositors whole at banks, on a case-by-case basis, if failing to do so would pose a risk for the broader system.

    Implicit in that is perhaps the hint that any bank failure could be seen as such a systemic risk. Failures at both Silicon Valley Bank and Signature Bank met that criteria. Depositors were promised all their money, even those with more than the $250,000 limit insured by the Federal Deposit Insurance Corp.

    Stocks in the financial industry ended up being the heaviest weight on the S&P 500 despite rising in the morning. First Republic Bank fell 6% after giving up a gain of nearly 10%.

    The Fed’s Powell said such fears were part of the reason the central bank raised rates by only a quarter of a percentage point Wednesday instead of more. A pullback in lending could act almost like a rate hike on its own, he said.

    In markets abroad, stocks in London fell 0.9% after the Bank of England also raised its key rate by a quarter of a percentage point. Stocks were mixed elsewhere across Europe and Asia.

    On Wall Street, shares of Coinbase Global fell 14.1% after the cryptocurrency trading platform said it had been warned by the Securities and Exchange Commission that it could face charges of violating U.S. securities laws.

    In other trading Friday, U.S. benchmark crude oil slipped 1 cent to $69.95 per barrel in electronic trading on the New York Mercantile Exchange. It gave up 94 cents to $69.96 per barrel.

    Brent crude, the pricing basis for international oil, lost 5 cents to $75.45 per barrel.

    The U.S. dollar fell to 130.33 yen from 130.83 yen. The euro slipped to $1.0831 from $1.0833.

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