2025-09-08 05:23

Yen weakens, Nikkei rises 1.8% after Ishiba resignation Stocks rise as traders pencil in rate cut in September French political quagmire adds to investor angst US inflation data this week also in focus SINGAPORE, Sept 8 (Reuters) - Stocks rose and the dollar wobbled on Monday after dismal U.S. labour data sealed the case for an interest rate cut this month, while the yen fell as investors girded for uncertainty in Japan following the resignation of Prime Minister Shigeru Ishiba. Gold prices held near a record-high while U.S. Treasury yields hovered close to five-month lows after data showed the world's largest economy created far fewer jobs than expected in August, with markets factoring in chances of a jumbo rate cut. Sign up here. Much of the focus last week was on elevated long-end bond yields across the globe as investors fretted about the state of various countries' finances from Britain and France to Japan. Some of those worries could return after Japan's Ishiba resigned on Sunday, while France could be looking for its fifth prime minister in three years as Francois Bayrou faces a confidence vote on Monday, which he is expected to lose. The political uncertainty gripping Japan, the world's fourth-largest economy and France, the euro zone's second-biggest economy, will likely limit any exuberant reaction to the prospect of rate cuts from the Federal Reserve. European futures advanced 0.45%, while S&P 500 futures pointed 0.08% higher on Monday after a volatile session on Friday where the index hit a record high but then closed 0.3% lower. The yen fell across the board and was last 0.6% lower at 148.39 per dollar, while the Nikkei (.N225) , opens new tab surged 1.8%, just shy of its recent record-high. The benchmark 10-year Japanese government bond (JGB) yield was flat at 1.57%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab was 0.4% higher. Hong Kong's Hang Seng index (.HSI) , opens new tab gained 0.35%. The spotlight will be on who replaces Ishiba, with investors fretting that an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party veteran Sanae Takaichi, who has criticised the BOJ's interest rate hikes, could take the helm next. "The markets are going to be framing this around what it means for fiscal policy, inflation and the BOJ's response," said Kyle Rodda, senior financial market analyst at Capital.com. RATE CUTS ARE HERE Investor attention this week will be on the U.S. inflation report on Thursday to gauge the risk of rising prices that could help temper some of the enthusiasm for a larger rate cut. The U.S. two-year yields, which are tied to interest rate policy, were 2 basis points (bps) higher at 3.527%, near the five-month low of 3.464% hit on Friday. Traders have fully priced in a 25 bps cut later this month with an 8% chance of a jumbo 50 bps rate cut, the CME FedWatch tool showed. They are anticipating 68 bps of easing by the end of this year. "The Fed has more than enough reasons and will cut by 25bps ... with another two within six-months," said George Boubouras, head of research at K2 Asset Management. "U.S. cash rates are notably higher than other developed markets (and) given the resilient and robust U.S. economy, lower cash rates are now required. Fed commentary of further rate cuts will be supportive, without this equity markets will be weaker." In the currency market, the euro eased a bit to $1.1712 after surging 0.6% on Friday, while sterling last fetched $1.3495 after a 0.5% rise on Friday. In commodities, gold prices were at $3,588 per ounce, just shy of the $3,600 milestone. Gold is up 37% this year after rising 27% in 2024. Oil prices climbed after OPEC+ agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand. Brent crude and U.S. West Texas Intermediate crude rose more than 1% each. https://www.reuters.com/world/china/global-markets-wrapup-3-2025-09-08/

2025-09-08 05:17

SINGAPORE, Sept 8 (Reuters) - China's stockpiling of oil, which has helped soak up excess global crude production this year, is likely to continue at a similar rate in 2026, the chief strategist for commodity trading house Gunvor (GGL.UL) said on Monday. Frederic Lasserre, global head of research and analysis at Geneva-based Gunvor, told the APPEC conference on Monday that China's purchases took off in March and the filling rate for its stockpiles is roughly 60%, meaning China has room for more. Sign up here. From March, he said, "we started to see a very impressive rate of stockpiling, like close to one million barrels per day," he said. China, the world's biggest crude importer, has been building up crude oil inventories at a rate of 530,000 barrels per day (bpd) so far this year, Jim Burkhard, global head of crude oil market research at S&P Global Commodity Insights, told the same event. Its pace of stockpiling marks one of the fastest annual rates of increase, other than 2020, and has played a major role in helping to soak up surplus production, particularly in the second quarter, Burkhard said. China's total onshore crude oil inventories are at around 1.4 billion barrels, he said. "That is a very, very large increase, bigger than global oil demand growth," he said. S&P pegged global oil demand growth at 700,000 bpd for this year, with over half of that for natural gas liquids and biofuels and the remaining 350,000 bpd growth for crude oil. https://www.reuters.com/business/energy/china-maintain-oil-stockpiling-2026-gunvor-strategist-says-2025-09-08/

2025-09-08 04:34

A look at the day ahead in European and global markets from Ankur Banerjee: Investors will get more political drama as France is all but certain to start looking for its fifth prime minister in three years, plunging the euro zone's second-biggest economy into turmoil. Sign up here. Francois Bayrou faces a confidence vote on Monday, which he is expected to lose. While much of the crisis may already be priced in, a slate of debt rating reviews starting this week will be a litmus test for France and investors' appetite for the country's assets. France's rating was downgraded by Moody's after its previous government collapsed last year, and a repeat would be a heavier blow, pushing it to a lower rating and raising the risk of forced selling of its already pressured bonds. Last week, France's 30-year government bond yield hit a level last seen in June 2009 as investors fretted about the fiscal outlook and ongoing political quagmire. Speaking of yields, Japanese government bonds were muted on Monday after Japanese PM Shigeru Ishiba resigned over the weekend, paving the way for fiscal uncertainty and clouding the policy path for the Bank of Japan. The main action was seen in the yen , which dived across the board but held near the 148 per dollar level. The soft yen helped push the Nikkei (.N225) , opens new tab to just below the record peak touched last month. Traders aren't sure when the BOJ will next hike rates and investors are worried that the next PM could well be an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party veteran Sanae Takaichi. All that has muddled what might have been an exuberant Monday for risk assets after the lousy U.S. jobs report cemented expectations of a rate cut from the Federal Reserve when it meets next week. The only question left to be answered is whether it's a 25 basis point cut or a jumbo 50 basis point cut. The U.S. inflation report on Thursday will be pivotal in that debate. Key developments that could influence markets on Monday: Economic events: Germany industrial data for July https://www.reuters.com/world/china/global-markets-view-europe-2025-09-08/

2025-09-08 04:27

Sept 8 (Reuters) - HashKey Group will launch its inaugural Digital Asset Treasury (DAT) focused fund with an initial target size of $500 million, Hong Kong's largest licensed crypto exchange said on Monday. The multi-currency fund's DAT strategy refers to public companies accumulating cryptocurrency assets to capitalise on higher token prices and a softening regulatory environment. Sign up here. The strategy's popularity surged this year as many companies seek to replicate the success of U.S.-based Strategy (MSTR.O) , opens new tab, a software company that began accumulating bitcoin in 2020 and holds more than $63 billion in cryptocurrency as of June. Strategy copycats have increased their bitcoin holdings to nearly 100,000 bitcoin collectively, according to Standard Chartered. Through investing in and operating top-tier DAT projects globally, HashKey aims to advance crypto asset standardisation and accelerate the development of a sustainable Web3 ecosystem, it said in a statement. Web3 refers to a version of the internet that is decentralised and operates on blockchain technology. "HashKey will build a diversified portfolio by initiating and investing in a range of DAT projects focused on mainstream crypto assets, with an initial emphasis on Ethereum and Bitcoin ecosystem projects," it said. https://www.reuters.com/sustainability/climate-energy/hong-kong-crypto-exchange-hashkey-launch-500-million-digital-treasury-fund-2025-09-08/

2025-09-08 00:20

HONG KONG, Sept 8 (Reuters) - Hong Kong shut schools and many businesses closed on Monday as severe Tropical Storm Tapah came within 170 km (106 miles) of the territory with gale force winds and heavy rain bands affecting much of the financial hub, prompting the cancellation of some flights. Damage seemed minimal, with streets mainly calm and no reports yet of landslides and major flooding on Monday morning. Sign up here. Most transport, including ferries, buses and trams, was suspended, while the city's mass transit railway system was running at longer intervals. Hong Kong's Observatory said the Typhoon 8 signal, its third-highest, would remain in place until at least 11 a.m. (0300 GMT). Businesses can reopen if the signal is lowered, but schools will be shut for the full day, the city's education bureau said. Sustained winds of 101 kph (63 mph) were recorded near the city's international airport on Lantau Island on Monday morning, with maximum gusts of 151 kph. Authorities also issued the Amber rainstorm signal, its lowest in a three-tier ranking, at 4:55 a.m. In the neighbouring Chinese city of Shenzhen, schools have also been shuttered. https://www.reuters.com/business/environment/hong-kong-schools-businesses-close-tropical-storm-tapah-brushes-past-2025-09-08/

2025-09-08 00:07

Yen weakens, Nikkei rises 1% after Ishiba resignation Ishiba resignation bring more fiscal uncertainty Stocks rise as traders pencil in rate cut in September US inflation data this week also in focus SINGAPORE, Sept 8 (Reuters) - Stocks rose and the dollar wobbled on Monday after dismal U.S. labour data sealed the case for rate cuts this month, while the yen fell as investors girded for uncertainty in Japan following the resignation of Prime Minister Shigeru Ishiba. Gold prices held near a record high while U.S. Treasury yields hit five-month lows after data showed the world's largest economy created far fewer jobs than expected in August, with markets factoring in chances of a jumbo rate cut. Sign up here. Much of the focus last week was on elevated long-end bond yields across the globe as investors fretted about the state of various countries' finances from Britain and France to Japan. Some of those worries could return after Japan's Ishiba resigned on Sunday, leading to political uncertainty in the world's fourth-largest economy and clouding the policy path for the Bank of Japan. The spotlight will be on who replaces Ishiba, with investors fretting that an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party veteran Sanae Takaichi, who has criticised the BOJ's interest rate hikes, could take the helm next. Yields on super-long Japanese government bonds (JGBs) have already been hovering near record highs, while Japan's Nikkei share gauge has recently slipped from last month's record high. "The markets are going to be framing this around what it means for fiscal policy, inflation and the BOJ's response," said Kyle Rodda, senior financial market analyst at Capital.com. "I suspect this will weaken the yen a bit and could actually boost stocks. But the latter relies on some leadership certainty first, so the initial move could be a marginally weaker yen." The yen fell across the board and was last 0.6% lower at 148.39 per dollar, while the Nikkei (.N225) , opens new tab rose 1% in early trading. RATE CUTS ARE HERE The prospect of an interest rate cut by the Federal Reserve later this month propped up stock markets elsewhere while weighing on the Treasury yields and the dollar. S&P 500 futures pointed 0.25% higher in early Asian hours on Monday after a volatile session on Friday where the index hit a record high but then closed 0.3% lower. Nasdaq futures advanced 0.25%. Investor attention this week will be on the U.S. inflation report on Thursday to gauge the risk of rising prices that could help temper some of the enthusiasm for a larger rate cut. "While most investors remain aligned on a 25 basis point cut at the September Fed meeting, we expect market focus to shift toward calls for a larger move, with a 50bp cut now in play," said Harun Thilak, head of global capital markets North America at Validus Risk Management. Traders have fully priced in a 25 bp cut later this month with 8% chance of a jumbo 50 bp rate cut, the CME FedWatch tool showed. They are anticipating 68 basis points of easing by the end of this year. "The Fed has more than enough reasons and will cut by 25bps ... with another two within six-months," said George Boubouras, head of research at K2 Asset Management. "U.S. cash rates are notably higher than other developed markets (and) given the resilient and robust U.S. economy, lower cash rates are now required. Fed commentary of further rate cuts will be supportive, without this equity markets will be weaker." In the currency market, the euro eased a bit to $1.1708 after surging 0.6% on Friday, while sterling last fetched $1.3489 after a 0.5% rise on Friday. Investor attention will also be on France where Prime Minister Francois Bayrou faces a confidence vote on Monday, which he is expected to lose, plunging the euro zone's second-largest economy deeper into political crisis. In commodities, gold prices were at $3,588 per ounce, just shy of the $3,600 milestone. Gold is up 37% this year after rising 27% in 2024. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-09-08/