Global Markets: Asia Shares, Currencies Tumble; Oil Jumps

JFIF;CREATOR: gd-jpeg v1.0 (using IJG JPEG v62), quality = 80 C   %# , #&')*)-0-(0%()(C   ((((((((((((((((((((((((((((((((((((((((((((((((((( " }!1AQa"q2#BR$3br %&'()*456789:CDEFGHIJSTUVWXYZcdefghijstuvwxyz w!1AQaq"2B #3Rbr $4%&'()*56789:CDEFGHIJSTUVWXYZcdefghijstuvwxyz ?yWW" j"{SvXWv\m[1ּw>UXFZz pTшLY@nzw&sҩB NlNZ {g,EWxU+ۼ7( lA>B6r桼TIkk+|Uj2zp 5&<\ WSql& RH)5Sڢ4V4ڣ4&i(t!?+)1# tDı"5v Bz 4CI`]3J84Tm:|rpc,@Le knLAQY+!ⵌ\ ;v8-SO5^'B0`F5Oʠxt2x"c]Y}4ՈAD\r*C5rJL( WU`Ў:W<L r ~+3BsIRgEUkkÐsT^ Bk״D!V.+4Xp]PGٱlWGp)j#WjSUdnj2iX~~f@ c;qV$5Fv@Xun+RJcU ɩd$% xڎh )x'jL@ ސFhZN:PhzRQ҃Ҁʘi5M?JsS) CH:RLA@ &L'43R5J٣i[M!\9ZVvĸ#7\u\k7>ǔSIOy3Tz{6N*6#ϔz'u^[g檦5W:-s}^ڣBZCY|Q6_ N*@lԽ@uA7ۇzWwMO'Z}Ěcj[ykE/RpiHP4SLeEs֑Tt⇰ cbE5cJLG~S5_hr ZV,S@Z&HӡÊع؆Xb7c)<>WQ[`LlQm[[#j5!bՕ$qWZOj8ر֥pzqSJ"'h`Mrz6@^l+f\dA'=*qd qoipR+|JK\}LI`K nZ4Uq̧N3EPIGV-X5N&)UVNj!Dbu}*]ֹt4TYܱ WyqqUz[]l[Qk{Qr9~A]mx椨Q%iO5VCYڪi %SPh摍  jǭf1 FUyk;5pye 8IC3Z3GEu@`ցGz>F0h4v#4)>4TX^5 J"p=;"B)6a␊q6:cN@3OSQR[39w6Pi>Zq4> ȭ+M#$[W.y<Ѹž@9Y5×&e2\3z1]LMdZxQF'iJ c.>zL`3}{RQRTQ֬#ɦ4nsSQ0+C֭:5[4 &{X18*#,GiV+*;0sZ"qir2*dvErj{ꅣ5vٲ³VMrÚ< L(U豌ևaX Y.x;Raˀj$d3( \Fp>an1ilmWeQ-V.2i!,)˗REmqUx \}+;ȌEJTɅT1`ٳHΙF* &+]1v9g^hkIFVf2IiBÚH3VZЎ2c-1W#UhZڰ:b?֠CϭfU)yt0ΫPvdM]@xuTŁA^Y{ȿ7ZM2}93V6MC%HFsPj+j)iE1ۊktMn5fݞ eݶAƼ=k"~xrMeLzTs7;6RhҀK@ށ^R <\#h[! '++NJ+F8:)KC%M{EۊӃk.+B)vYZ̙V|)Ě46]Ӕf1%Dm*)GHgȸ5-Z5Z3ƼWyL1uZɛJrL( [(e=*4lkOz zurueR{׷xjkuҕV6gA eCT Sw5,]4I\CH^SV 汯&̻nfy*[-?Wf@!NI>>eeIQ^7WCe95t[hI 2C#p;t⁤p7"-V-F8GWiiuK-,g+dW5gNԮ9#:vgW.lh=+.@f##XT 4#tkZ)qdSxhʱڌt{n:V@1Ȥ@/l{-:VlcnXIkN¨9Wi0uw UB0ڻ5fmi-Zt鰃>Lck.>QXՉ`j[Cn:\ͅks=!1GZfiNJҏ3[8key:sV$ ւSHhLB5U⬷CUevSXoڻk jX?>$Ճ7[b6O[s 'm\pMmS%}M|egy;YeP=U e 55kQ KC'O~k_-OZO{c򚣡_ip]~Y9 ү? x] lM=Ep3jkQm#9fEt*:V9<*ֈsifrxuM]gJ~'ȼ5wKf|#ʘlƔ:G9Q[[~ZŅ害\UvvE[B)P1WUӭE w+Xwֺ9Y79q_`!һO/tm\Q:ϩ i2) Ros|φ,m?J7>>m JYz0L'qʮ_Ӏ<1]OO4??UEjeR~=`;W!Dñ Ҹ\xr2OKZ<:nGϵFC3Q1H픁_9OkΉC5ڧݧ5iV'ҼO\m'.#AR>Sn,-tSm[hB/'>pU,&]^l=a\%5^?N!L?lkԢZ;WY>Ԁc%`sR6ڟI,9tP(4804jyHdjq梵MحkhSuѠT0dp* !#t oҢcdRfD"Em]C+2xҷpTVH֣"O5ITԠtlM0Lo& jp+6*3YTuЭΞ994\ uDzqEɸ~M:iTe5)q1<P`O=yly͐sӥ vEJFsj&}~ozصֹrҴm.:sYT6#ٽNa?+{QhZn*yiw̓Tg]7r4e(lըʺ,W 3,rwdK֤Hoz9czuEN*g2C,~(4aF4fFjFL5BQF)€E4 t)0('!RP$Si $beM]4v<J׳zˍx<3~_ʽL uS*4ڣÊ"My.Uu-^u@(2ur-WaHdT`T}y+U֪ʔmv9d?W_Wo@ڼJ|ll+}7>1V^?Kcѿ6?+zX^Vo?`} vGD,zwA?={ ,jO=+dž=ҟ Wb: -bZgLߝ1#ZBѾ Oyk \mLOC⼯"a˲ Wygx"7uN:NJұ0>5z9\y <ׯxSE?]8}f^RS4b>@+s&I15VJNBI>ԔPUbZ 3T۷41mYoY5d+vP1\5{FqqLR1\<*i`GMx/F -6 \qj2SMj"4Lԫ 5@r ]4fM%> srВ)j}(h#IZLE w’(ciѹCib5mrcDruq6F6f IiYYyNMLV:ԵbH*T8FQC)pӥJ54(ӔS, =)SH 3AqғMLMO03NuM&p SҚG.}Kg uUM!u$qk|+T%knBV{A tSV}XQ-DUV–#MDSSXfʎVEZE2SZj0U⧦0>v1U2uGv>q77~^> +Q!`; Hw5I r=|xRV'ڱ3 8㪿ճ/WB6ϞY9䅽*|AyCI K~RFr|港xf/O+dž!uUZB|04#[nhX{ Vmm.~wHj㬬Rl4Iq?=4c,=Jn?OW=')H?9M=iIk@޽w¿.q,y_qCvyYשFhGu RIڏʀ>?W!((4SЌ( M4qQ˶Ҷ-f\M 汩Oݎ JÎ]O[멭w2Ľ~MM=e̹5N h{U$k=V< ɳDG* h"ԳE8MQH N R(9EMʱJ6")\,DxӘSMP^ЅZsњC+ff 78/wJ='š~"'JEsډvQQ]Zw-"\S2 )hEDuL*'QjZ*ȴO9ҁ9|ylx|o^nNJOo^lZgy ښC\-OfQ9=J+ς Za|Zlp皏sƬ';)n[nc\{ԤWR} ;n!'v nuq f_N6CBGodxEz%GOWV#<#4Ji++/"\V{\+[ݞ^i5i)H <0sڔc5x=j50(EPEPՈ;ykezTqUS)2@N2* MEsBESjUyG4rIJF)* ( ( ( ( )H#qH1ނs@ĢHF( N^xL`JnPD5r)"+V)ZEdQR(.8 ͚$sOQMQ&ZQ֤O+`X4Hinc@8cQ*RFi٥8P3KGλQ5 ڑkȼ'{<׼J "fnaZVG}!]+#JL kLu1g3H4isLV❚ih@*N=*"e7T Ϛh3.P75i3D9?z"Ⱂ/qF^ұM}7xHoF5i߮ؤ?uo k{Bx'kf=!d,}p #P}{3ElzTZ]ո:lPkz{2`w Lޮ yI;cN-YCDlhquZP\c(F<14ӭy>Rk\5Sp|,DjڎG;=+|~⩹q?^kɼ#Ee?]5ߺyYoG:Mڎ\gz ȻU/"\V(n/4ފ)8>Ij^LZTRC ( ( PqIEZ9$tV\y˪Ի.jMԀB5.}駥0*mXe?FȦiv ))piJy)~AE|+H56DjJAmQ<]H\5#RhGj#qG0XK9UHڎ`ԁw>:zRƜԷq>%%Ct*dbZ+x@P*nU  BQE%!Fh(Hi7P٥`$-Bj"PZBO-;f p@v 75~LF2)x~sZG5cӸAZ UƺR\LHMZ4f$J5is@-G3@ /Ҥ=*6eiT3T33i^2n#es2.`DZO.hW ׅ5VI32=7q[v ua\HEǓҹg;# x7NTi^}Q6f ^t?W6H$U^jW>$XWtI?ua_BSWt9qcOU:T~=>Er$Qx_b)kQw*J8 Q{3h|sK]Glͫ w j]%#BGnPPe`8a+]r<:5F\<2DhdYx*WѬuXu/H0kּ!yeKL@=?rʓǵCNќy_O  :^ᣍO+ns=i&i!.qJ E3@*8C*df,{nֵ0 SiM@%Q@Q@Q@-%-ҜΛEK QRҲʐbUluRA KRnv~hzSEYG(Z<4U*eZ!'Yяn)]"*=`'j`Oj}+9UHQl[BGJSh}+M?H=+?niMM3vv5 Y{SȗDv5"Bklg0ٜtP*V3n$:ڑRvsq֥ RG DmYmZw8k7>ջ:{~wҼ_|'*TŞ5]>dC C^;O Z#qiOƸ])CshWVZ>4Z_vOU98 Y{')qUY5Lk-dJ>tnXi˛}k;}|$52IYʚGRF|3|K{٪-Csg?ƃw%7>G .`$uBR,c.on`b 7iSս6Z}mR݌gRny[В*=S PGB ;9j215Zsi 2*16(0(((i( ( ZJ(iC(_5_9UdpCтȶ8lm+8jUN̨tVxkzUlU;#I# S1b$>ڒG*'RȨEu66hV^ taEyuvzdMbG:s6laNǵ< R)%xQՂ=y0怱IgqڢeT4XaBWښTwTgab{TV$6*VI*ydSQVD jY:I$6rj6H́[9htA_=mL^ Z0[c|4GWAmP2=8(VvjA[(#|ZpUPqWV;SW9E[KQ5#P)Glq8iRu&sLCޒ i J(4PIE(P1h 74 UI8ҏjC2\Y֐^@]? (`ZӯRQk6Fvcogemv $'5`R)km)FEfݦAGJs@#$\$⻫r{"Fgr&+V,Yr.8AOqJ)f6D>՞ PN:!OFIl5<UFA IϥGPhPx;>>}b(?:Ԇ4? GNE1aS^ҘWEsLi\@3R"fHjuBzT9v4QLڦH}QOjȵCa vbq[gf(mb;2{VVҭnjcX[,vdw[PƢdd Z`c =+J;V5&͡P`؅0Ao(\gB)0*EZb⃌q@j6M1J@DL*b*' /RI4Ҹ=P;POsU VSNzϸw7ygM=Q㊧-׽U=]1&?^j5IQ}+E60ioT2eZEՓ$ | R^w0w~TuQk%Zڝ+u yooTs^.tDnSp"PpKx4\HM74 u%&xP) Mhi 4)i(aERQ@^AV*'"5BT$~*k]B6I7RQOoʡ`GQxWol&_yI&շ'M$t&I=3י~ГIQo7#`kԡvq1G\nN~SWʧQ}a<f} @FN+<cOws5=00^N\Kt=k uS,[,sA·UPՍc%-S#59&[wpx=rKs>}%QǽBk mFh>PX +RՇs+i֮ >DJT?\GgFA4KgcT}jtlXO}y$68,pZ=*QwW,NSO8~Qzp&>r[TdT" H2NJҳ SEdW](JʥUHB3VhiIBi(h4fJ)i(KIEJ "xb1x}Êď73zO|f_zmrׅ̾%[ZlHB0Myg$3?/^⼧ }%2W]Q.^IdO11< owxQ? #$qx /=0Okw'T8du*Am Ҽݍd.d'IMRy&pxPڎ!,gs㡯.=kj  s)uWP%մL3WjiI'꽍{kƺO,> xxZ25b _aP$_WxҭGq*< !v ɞ Ze>Kn&mHŘ- 8!]H@EzýgR~fJRvAΣFb 2kJ3Qrkŵ8TQ\ԀjXљr*![:\w&>\R㉜9AY9#5-=/N`޹QFݓh:+ӁaJZb1yNnUQZ"}{ `rku8+_ʪ՜8ݜ˃ҡlAW.GȪ7 o$* >?icLȌb +%zUwT}SQsv5=!$oC_ÚcjڬVÄEk"!"BGa^'K_s9Ǩ+/"]ڢf+zR/Z9-Ai L9ѵN!X4Zrk5,R\ `|ϴ tMAۓVdWa٢i͢9H,O mN}t|azWG: SqvapJVq+X؏Jl8cN/ Z?Dž`+յ@5/; 4yF|Vӥ6Eaիd&r/ⴂj ճ?`BD2YWc"IҰ_$^YIUdj@y"ݨWCEұ,,8N+ذ[0HpItkV"Ұ\pQ֣p*;Ag-T$٩=沮8C5֠NyaH5nXW5=lT䔱-i\=MSyKp94cW5PHkJ0>5'I (ǵ8v 8I4Rn().‘(ǵFNNiTI)3L"X35853 r)J@uQim.^DhaPid isG|Ҫmo:8s*w^.z恪5 `SZ;ĈoarG5:G4_?JWQյ ;nmK+nf?Zvʆ-XݼTHO+tFw &?g,쮗en }Ahfkǿi/a +=ǿi#A ) 1ר|4cId]RxÀb ח٧FS${I7_/T&YڟX T?NJrFSd^ u02Hu:`u6Բs}My}4oRn_MJ=6k9*0+y&HXN1%eaq&%_SKw< .tf랦c8CһON;~cޟrڭڄFƫJ;S+=՗Yum-%bH=5Vv:juR3Z%Rc@lٕpqҵ)"Չ s1rSmR)*qu; bOԱ]ȧ9w"g`dJ)P0; ¼嚽CZ*בR<֌.4pV+R{ґwe݅Q-9ˊ(ݿSXGk]E$D33T F_r+fHӓNNwM^EuUlgpgU=e `VQ` V,\&.quXZ3T طgP]Ş'#:HqvIT$=j mU4oIsR6ހ4\Xbl<5!aisJ0 "##&aIA v(QI'O N4:Jci OJak'i;(CH*x{RN KƚG""zvR0;)xg6{bx3n.pN)z=1@5HH?*tm9"ʨҽuQ"c2Kv)nG83>et}5އUdy_up5wZu`9ӹ-TqH@QEf))PM(-%-%i  ) _wkՕA!HF>LNJ'??oI {× [`HS1AZF2cF~v|= S,z6wu(M}4-m\*v,Of ES )V?l[Q9y'ۣ ҜP3៳O2&slDfd}hF=h8{v+! ͻ[k "JnkԦnk_S5ɖ<ԳXt=*BI:1UuHu/^} `TL VE:*is\]п=+^pjͫ`*enk{D~1Ve5FA㸫 E>`t51IY (ps^GyU#X3vj^C57\eZɐZǓҵMQӍr:R{GiqV!JM4bcݎ?ZڹRA i$+XW3 KGi[q[@v*0lM* (dơ>j9\;*w7`gΖy{CΚtn_pk=*HH$9#ftja\WsK '&֍q8jA=h~R 4ΐ :ѰSHA; Op)Bq1XfѰ)8u_'<\w=ihF#+Rg=(w9Guf/Ia۬Hu$`1MGMUcCR+DRAr%Tkup>a_/:3ס%(֑pV¸{WROz};jG߭}}Hk̙*M.PR u?WaNuiE`é)* 1XEFH4PJ(f~izǗ^| Y67u֑%֟i5xo$*Ѯ:aH^ Wm݀Qo$Jz c }+>MIYfmB[I.TtqO$5Jf ZR6V1Mu$t8/ 2RGN `hv$FѰdxYHA^ogZ.mSk-qq=bAY5 ?d4EvvI9}OCk+;{va0\vbQim |FC}qָ[C[Ey5ycv^S_MLrSHilxiXiVDXY[8Q>x)4?*y#~wzL'ݵ,hGlnv;/tr Z@Fa6W;뛸̐ +u=k-X-_Im\,fe\X} 5jX4VLYz@~u$$HqR !WJgn GSJGցؕ;UVO^IRlSJ B*sғ9} b#Ln]M 'L9 qR Sd9Flnsҕz`FO֨)PH4Jkzn: pB;sKM;fphԊ!H9FR{ҁE7iqN7 8 q("R0j,` ӭqYxH7շy(b;hT"Zx̟kXc 3+٢l5JlXH?ӵ|eZB8DY%AsǽhupHYjaf8׌~"YvKD>j3tN0 Rmp9l(2Ri(J Z8;UA+uI9iuK547%VJZoÖqKoTn8:kҠ(4~/kbEzk{+Yi%:QSz*ÅHSӯbO3@;@$U[W<eZNu2'=(&j֤vTe5(A]@6w[U*#^W 7ejj|?JT;צ!W VUj "nȮ'I>lKkvzֻ4\sTn3W"hU$BR7L|-V6sZwrkFjYi\\ԛ֎6Xcrk6͢(HhINJP3p淭pⷉR$ci]sVIBBA RL9 Ğe09!U!2)Hcg%k^U㊣qAŜs\ƥi.kdRk}{ay€}Tf# Q]_5KW&) )<Ǽz_6v2k7-קh:}5iujv=&'HN++N 5js>Xzh^K5,i-srncZz$Đ6͢h"RRJQF)g"ž^%4GJS@4n=)TR9G94a*@8WqB{OS HIqLɱM6$w}(,^lPMzgbHSւyz`9Jqhyɤ3@ Svq&yOSumjR+<ԶFmܥNssMRl4S2(jq=brޕ"'"Xh! j-Sxf(LԸR(=V 8kzSM9SM 'V{QErXfu|V%<Eq%7qj(:mzxZ(Q;M<"lb*˱IZVr*5lW4QV3ELFEd·jʷLQEa$z7qM'=袦C"sQJ(F2܍x1j(d1]Q@!d Àh89E!G(( #84Q@piWP&#(A?7EDhPI*Q@0SQEdg"(!NMQTJ1Z(L4uh's`EF2'qV EQN!5ztېQE8ˡkRbHEL&D74mTܖ;_\U袁6N-x(64QA7A(" Z(CSQE0(Hj(E4E!)
Warning: fopen(https://newsweekme.com/wp-content/uploads/2016/01/2016-01-04T054915Z_1955152142_GF10000281810_RTRMADP_3_GLOBAL-MARKETS-780x439.jpg): failed to open stream: HTTP wrapper does not support writeable connections in /home/newsweekme/public_html/wp-includes/class-wp-image-editor.php on line 428

A logo of Japan Exchange Group Inc. is seen next to a woman, dressed in ceremonial kimono, before the New Year opening ceremony at the Tokyo Stock Exchange (TSE), held to wish for the success of Japan's stock market, in Tokyo, Japan, January 4, 2016. Japan's Nikkei fell 1 percent, playing catch-up to falls in U.S. stocks in the last two sessions during Japan's market holidays. The Nikkei gained around 9 percent last year. REUTERS/Yuya Shino TPX IMAGES OF THE DAY

By Hideyuki Sano

TOKYO, Jan 4  – Asian shares and currencies tumbled on Monday on the first day of trading in 2016 after China factory activity contracted and its central bank guided the yuan lower, while oil prices jumped as much as 3 percent on rising tensions in the Middle East.

Leading the losses, mainland Chinese shares fell 7 percent to trigger the “circuit breaker” on the very first day the trading suspension mechanism came into effect.

European shares are also seen opening lower, with financial spreadbetters expecting Germany’s DAX to fall 1.5 percent, France’s CAC 40 0.7 percent and Britain’s FTSE 100 0.6 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.5 percent, on course to post its biggest loss since Aug. 24 last year.

That came after it had shed nearly 12 percent in 2015 as China’s cooling economy took a toll on its trade-reliant Asian neighbours and global commodity prices.

Adding to worries about China, its central bank fixed the yuan at a 4-1/2-year low on the first day of 2016, while manufacturing surveys showed that any hopes for a recovery in the sector were premature.

The surveys came after an official one published on Friday, which focuses on larger, state-owned firms, showed a fifth month of contraction.

“While some softness in the manufacturing sector was to be expected, having two major indicators pointing towards the same bearish direction is clearly impacting the market,” wrote Gerry Alfonso, director at Shenwen Hongyuan Securities Co. in Shanghai.

China’s benchmark CSI300 share index tumbled 7 percent, prompting the stock exchange to halt trading for the rest of the day.

“While fiscal support has helped slow the rate of economic deceleration, China needs to balance the need for stimulus with the reality of the unsustainable buildup in debt. This will continue to limit the scope for stimulus, and suggests further economic deceleration in 2016,” Russ Koesterich, global chief investment strategist at BlackRock, said in a note to clients.

Investors dumped stocks also ahead of the imminent expiration of a Chinese share sales ban on listed companies’ major shareholders, which had been imposed during the market crash last summer.

Japan’s Nikkei fell 3.1 percent, its largest fall in over three months, to a 2-1/2-month low. U.S. stock futures fell almost 1.0 percent.

The offshore yuan fell to as low as 6.6181 to the dollar , its weakest since early 2011. Onshore, the yuan hit its lowest since April 2011, at 6.5140.

That put pressure on other Asian and Antipodean currencies.

The Australian dollar fell 1.1 percent to $0.7205 while the Korean won shed 1.1 percent to 1,187.6 per dollar .

After China allowed the yuan to weaken by the most on record last year (4.7 percent), its stance on further depreciation of the currency will be a major question mark hanging over markets in 2016.

“There is speculation that China wants to guide the yuan much lower,” said a trader at a Japanese bank. “But we often see erratic trades at the start of year. We have to see if this continues.”

Oil prices jumped as Saudi Arabia’s execution of a prominent Shi’ite Muslim cleric at the weekend spurred regional anger and geopolitical tensions in the Middle East. Riyadh cut ties with Iran after protesters stormed the Saudi embassy in Tehran.

Global benchmark Brent futures, which fell 35 percent last year due to fear of over-supply in a global slowdown, gained as much as 3.3 percent to $38.50 per barrel, the highest in about three weeks.

Still, many think the market will remain under pressure as producers including the Organization of the Petroleum Exporting Countries (OPEC), Russia and the United States pump between 0.5-2.0 million barrels of oil every day in excess of demand.

The cautious mood toward riskier assets helped the yen, which rose to 2 1/2-month high of 119.23 to the dollar.

The safe-haven Swiss franc gained about 0.8 percent against both the dollar and the euro while the gold also rose 0.8 percent, to $1,069.30 per ounce.

The euro also firmed 0.4 percent to $1.0892.

In contrast, the British pound fell to 8 1/2-month low of $1.4813, undermined by concerns about a vote on Britain’s membership of the EU that could be held as early as June.

Investors looked to how much further the U.S. Federal Reserve can raise rates this year after its first rate hike in almost a decade last month.

An immediate focus will be on Monday’s ISM survey on U.S. manufacturing, which is expected to show the sector is still in contraction after having hit a 6-1/2-year low in November.

“It was quite unusual for the Fed to raise rates when the ISM is below 50, (which indicates contraction). And we are likely to see another month of contraction. We have to see how long this will continue,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Social Streams

Comments

comments

[], [], [], [], [], []

Facebook Comments

Post a comment