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Shares in Jindal Steel and Power fell as much as 11 per cent in early Mumbai trading after the Indian conglomerate said its bid for coal assets in the country had been rejected.
Shares in Jindal Steel and Power fell as much as 11 per cent in early Mumbai trading after the Indian conglomerate said its bid for coal assets in the country had been rejected.
Shares fell to 140.25 rupees after the government rejected its bid, the group said in a
to the Mumbai stock exchange. Jindal added it has plans to secure enough raw materials for its operations.
The fierce auction process
last month with 134 bidders bidding for 23 mines. More than 100 licences will be sold or allocated to industrial groups suffering from chronic fuel shortages, a crisis which began last August when the supreme court cancelled more than 200 coal licences awarded to industrial groups, describing their allocation as "arbitrary and illegal".
A Jindal spokesperson said at the weekend, when the decision first became known, that:
We had followed a consistent and prudent bidding strategy throughout the Coal Block Auction process, with a serious long term business perspective.
We are puzzled with the decision and would make our best efforts to engage in a dialogue with the Coal Ministry and Government Authorities to present the facts.
Today's change
1 month change
Asian stocks rallied to a six-month high even as the US dollar switched direction, as investors debate the pros and cons of a strengthening dollar on the region.
Asian stocks rallied to a six-month high even as the US dollar switched direction, as investors debate the pros and cons of a strengthening dollar on the region.
The MSCI Asia Pacific Index rose 0.6 per cent, a fifth straight climb, to a six-month high.
Sentiment was up after the S&P 500 equity index snapped a three-week run of losses, rising 0.9 per cent on Friday. Those gains were supported by the US dollar having its worst week since October 2011, after the Federal Reserve released a dovish statement and prompted investors to push back when the central bank will begin lifting interest rates.
In early Asian trading the US dollar index, a measure of the American currency against key rivals, extended its losses, supporting the equity market. The dollar then rebounded, but equity gains were maintained and in Japan they were even extended.
"Currencies have been driving Asian equities of late but the dynamics are starting to change," noted Herald van der Linde, head of Asia-Pacific equity strategy at HSBC. "As [local] currency depreciation slows, Asian stocks have historically performed well, particularly in Indonesia, India and Korea."
Tokyo's Nikkei 225 jumped 1.1 per cent to 19,768, a new 15-year high, led by a 3.6 per cent gain in health care stocks.
Hong Kong's Hang Seng Index rose 0.4 per cent and the Shanghai Composite climbed 1 per cent, a ninth straight gain. Trading volumes in Shanghai were 80 per cent above the 30-day average, as investors expect Beijing to offer more stimulus to help the economy.
The renminbi, China's tightly-controlled currency, had its best week in a decade as the People's Bank of China guided the currency higher to restore confidence in the economy and prevent capital flight.
Australia's market was the only laggard. In early trading the S&P ASX 200 rose and nearly hit 6,000 — a level last seen in January 2008 — but the momentum was lost and at pixel time it was 0.3 per cent lower.
Aussie gold miners were up, however, as the price of the precious metal rose 0.3 per cent to $1,185.79 an ounce, a two-week high.
Other commodities weighed on the Aussie market. Brent crude oil fell 1.2 per cent in early trading to $54.65 per barrel. On Friday, the price of iron ore touched another six-year low of $54.66 per tonne.
Shares in Sharp are up 3.4 per cent this morning, after the chairman of Taiwan's Hon Hai Precision Industry said he was planning to offer financial support to the struggling Japanese group.
Shares in Sharp are up 3.4 per cent this morning, after the chairman of Taiwan's Hon Hai Precision Industry said he was planning to offer financial support to the struggling Japanese group.
Terry Gou told business magazine Toyo Keizai that he could offer assistance to Sharp and its main banks as early as this month, the publication said in a summary of its new edition after the market closed on Friday writes the FT's Simon Mundy in Seoul.
Hon Hai, also known as Foxconn, later said it was "exploring investment and partnership opportunities" with Sharp. Potential collaboration would "not be limited to financial investment and could include technology licensing", it added.
This marks a second attempt by Foxconn to invest in Sharp. In March 2012, it agreed a deal to take a 9.9 per cent stake for about $800m, but that fell through after a heavy fall in Sharp's share price.
Sharp has subsequently received
from Samsung Electronics and the US chip designer Qualcomm, but its financial troubles have continued as it faces severe competition and price pressure in its key display screen business.
In February it predicted a net loss of Yen30bn ($250m) in the year to March 31, reversing its prior forecast of a Yen30bn profit and marking a third loss in four years. "We feel a very strong sense of crisis that our financial situation continues to be very severe," CEO Kozo Takahashi said at the time of that announcement.
On March 3 Sharp said it was studying various restructuring measures and would give details of a new turnround plan in May.
Today's change
1 month change
Hong Kong-listed shares in China's largest oil company Sinopec fell as much as 3.7 per cent on Monday after the company reported a slide in net income for 2014.
Hong Kong-listed shares in China's largest oil company Sinopec fell as much as 3.7 per cent on Monday after the company reported a slide in net income for 2014.
Shares fell as low as HK$5.98, the lowest in three months. At pixel time they were HK$6.03.
On Sunday the state-controlled company
net income of Rmb46.5bn last year, down from Rmb66.1bn in 2013, which it attributed to plunging global crude oil prices and falling domestic demand. From the statement:
In 2014, international crude oil prices fluctuated at a high level in the first half of the year and plunged in the second half, with a precipitous drop in the fourth quarter
In a , Sinopec warned it may only break even in the three months to March 31 due to the lower price of crude oil.
Somshankar Sinha, analyst at Barclays, said:
Sinopec's 4Q14 was worse than we expected with its first quarterly loss on record hurt by wider downstream inventory losses than we expected. 2015 has started off worse than we had expected as well with Sinopec warning that it may only breakeven in 1Q15, suggesting downside to our EPS/DPS estimates unless oil prices rise.
Today's change
1 month change
Taiwan's unemployment rate is at a 14-year low, underscoring the unlikelihood of the central bank cutting interest rates when it meets this week.
Taiwan's unemployment rate is at a 14-year low, underscoring the unlikelihood of the central bank cutting interest rates when it meets this week.
The tech-focused island economy reported a 3.74 per cent jobless rate in February, down from 3.78 per cent in January. This is the lowest rate since January 2001.
The actual number of unemployed people is just 428,000, down from 473,000 in August.
As Capital Economics noted last month:
A tight labour market in Taiwan is feeding through to stronger wage growth, which in turn is providing
a boost to household consumption. The improving prospects for the consumer sector are a key reason
to expect Taiwan to perform strongly this year.
The jobs market is one of the main reasons why most economists see Taiwan's central bank holding rates when it meets on Thursday. The bank last changed its benchmark rate in mid-2011, when it lifted rates to 1.875 per cent.
Consumer prices, however, have been in deflationary territory the past two months, so easing is a possibility.
This afternoon new data is expected to show that Taiwanese industrial production rose 1.3 per cent from a year ago last month.
Gold is up and miners Down Under are getting a boost.
Gold is up and miners Down Under are getting a boost.
The precious metal is up 0.3 per cent at $1,185.79 an ounce, rising for a fourth straight session, and that is translating to green screens for commodity traders even if Sydney's S&P/ASX 200 is down 0.4 per cent.
Newcrest Mining is up 3.2 per cent to A$13.36.
Northern Star Resources is up 3.4 per cent to A$2.46.
Evolution Mining is up 3.3 per cent to A$0.78
Regis Resources is up 2.4 per cent to A$1.3.
What's driving it is the weaker US dollar and uncertainty in the US over when the Fed will raise interest rates. The greenback hit 100 earlier this month when measured against a basket of major currencies - the strongest point in over a decade - and is now at 97.9.
Analysts at Capital Economics, who produced the chart below illustrating the gold 'fear rally', said that the Fed's hint that even when they do raise rates they will still be low by past standards "took the steam out of the rally in the dollar."
Noble Group is fighting back with legal action, after its shares fell 30 per cent in the wake of
alleging accounting fraud.
Noble Group is fighting back with legal action, after its shares fell 30 per cent in the wake of
alleging accounting fraud.
The Asian commodities giant has been attacked in recent weeks by a previously unknown research group, Iceberg Research, which in three separate reports called into question Noble's finances and practises — even comparing it to Enron.
"We reject their allegations as inaccurate, unreliable and misleading," Noble said in a filing to the Singapore Exchange, adding:
Iceberg are not the independent research house they claim to be. Their actions, and their timing, have been calculated primarily to inflict damage rather than to facilitate the distribution of research.
Noble has previously blamed a
for the reports.
Today's filing states:
Later today we will start legal proceedings against Arnaud Vagner, a resident in Hong Kong,
Enlighten Ace Ltd, a Seychelles company and any associates, at the Hong Kong High Court
for conspiracy to injure Noble Group.
Today's change
1 month change
Asian markets are preparing to march higher as the US dollar continues to fall, while sentiment is up thanks to US stocks snapping a three-week run of losses.
Asian markets are preparing to march higher as the US dollar continues to fall, while sentiment is up thanks to US stocks snapping a three-week run of losses.
Sydney's S&P/ASX 200 rose 0.1 per cent in early trading, led by a 2.5 per cent gain in the gold mining sector. The precious metal is up 0.3 per cent, a fourth straight gain, to $1,185.94 an ounce, while the closely-watched US dollar index falls 0.2 per cent — a fifth loss in six sessions — to 97.755.
The US dollar had its worst week since October 2011 after the Federal Reserve released a dovish statement, prompting investors to push back when the central bank will begin lifting interest rates.
The dollar's fall halted a four-week rally and should be supportive of global growth projections.
Futures suggest Tokyo's Nikkei 225 will rise 0.6 per cent at the open. The average is on a six-week winning streak and on Friday it closed at a new 15-year high of 19,560. The yen is flat in early trading, at 120 per dollar.
Hong Kong's Hang Seng Index is expected to add half a per cent, making up for Friday's loss.
No big economic data for the region is due today.
Note that Lee Kuan Yew, founding father of modern Singapore, has died aged 91.
The Prime Minister's Office had .
This week has been about the Federal Reserve and the dollar. Next week attention could shift back to the battle between Greece and its creditors.
This week has been about the Federal Reserve and the dollar. Next week attention could shift back to the battle between Greece and its creditors.
Here's what to watch for.
Federal Reserve speakers
It's the week after one of Federal Reserve Janet Yellen's quarterly press conferences, so a small army of Fed officials are due to speak.
St. Louis Fed president James Bullard, Stanley Fischer, the vice chair, and John Williams, the San Francisco Fed president, are among those speaking.
Investors will be keen to gauge whether they over-reacted to the signal the Fed gave this week that it will be more cautious in raising interest rates.
Merkel to meet Tsipras
As tensions fray between the two governments, German chancellor Angela Merkel and Greek prime minister Alexis Tsipras meet for talks in Berlin on Monday.
Hopes that the four-month extension to Greece's bailout can be implemented have so far floundered on the exact list of reforms the new Greek government will agree to.
The end of 4th quarter US earnings
More than two months after it began, video games retailer GameStop will bring fourth-quarter earnings season for S&P 500 companies to an end.
According to S&P Capital IQ, earnings growth slowed to 7.8 per cent in the quarter from 9.2 per cent in the third, raising questions about the resilience of the US bull market.
Brazilian GDP
Friday offers the latest look at the Brazilian economy when growth figures for the quarter are released.
Economists expect a contraction of 0.7 per cent compared with a year earlier.
Currency, fixed income and equity markets tuned into the Federal Reserve this week.
Currency, fixed income and equity markets tuned into the Federal Reserve this week.
And an unexpectedly dovish view from the central bank sent equities higher and bond yields lower. The Fed, which dropped the word 'patient' from its language, indicated it would raise rates at a
than it once projected according to its closely scrutinised dot plot. (first chart below)
The euro swung wildly this week, in large part due to the Fed. A more gradual move from the Fed would mean the divergence between its tightening policy and the European Central Bank's loosening of policy is less stark.
Some strategists cut their forecast for the dollar in the wake of the Fed although most stayed bullish (second chart below)
US small-caps extended their outperformance against large-cap rivals, rebounding from a lacklustre performance in 2014 that has made valuations more tempting this year. The
index has risen 4.63 per cent so far this year, outpacing the 2.39 per cent gain by the blue-chip S&P 500 (third chart below)
rose 0.8 per cent in the final three months of 2014 from a quarter earlier, as an influx of tourists and strengthening retail sector buoyed output. While the figures matched expectations, it was the slowest pace of the year and economists warned it could ease further. (fourth chart below)}