Asia markets

- A + A (June 30): Taiwan’s stock benchmark index slumped on Thursday (June 30), taking its decline from a January high to over 19% and just points away from a so-called bear market. The Taiex gauge closed 2.7% lower in Taipei, the worst performer in Asia. It was dragged by chipmakers after Bank of America took a cautious view on the industry’s growth prospects. Taiwan Semiconductor Manufacturing Co (TSMC), which accounts for more than a quarter of the index’s weighting, dropped 3.1%. Facing headwinds of rate hikes by global central banks, tech-heavy stock markets in Taiwan and South Korea have been the worst performers in Asia this quarter, both down over 15%. Foreign investors have net sold about US$16 billion (about RM70.52 billion) of Taiwan stocks during the three-month period, the most among emerging Asia countries outside China. Taiwan’s deputy finance minister said the National Financial Stabilization Fund will continue to closely monitor the stock market … [Read more...] about Bear market looms for Taiwan stocks after chipmaker-led slump

- A + A (June 30): Valuations are starting to turn attractive for South Korea bonds amid signs the market has overpriced how much the most hawkish central bank in emerging Asia may raise rates. Won forward rates are pricing in about 125 basis points of hikes over the next six months, far above economists’ forecasts for how much the Bank of Korea will move. This points to an improving environment for won bonds, the biggest loser among emerging-Asia’s sovereign debt this quarter as inflation quickened to a 14-year high and bets on rate increases jumped. Increased flows into Korean debt may help ease pressures on the won, which last week reached a 13-year low. The country is vulnerable to soaring imports exacerbated by a weak currency. It also means that Korean bonds may start to diverge from other emerging markets in Asia, where the risk of interest-rate swaps and yields moving higher is clouding the outlook. “We see value in Korean government bonds, as the market … [Read more...] about Bond traders bet market has swung too far on Korea rate hikes

The good news is that yields in US Treasury securities may be near their peak. The bad news is that makes the recession I’ve been forecasting since February more likely. The current campaign by the US Federal Reserve to raise its main policy interest rate — the overnight federal funds rate — in response to rapid inflation normally precipitates a business downturn. Since the central bank adopted this measure in 1954, there have been 11 recessions, and only three exceptions, or soft landings — in 1966, 1984 and 1996. A soft landing occurs as the central bank lowers the funds rate after a series of increases with no recession unfolding. Until the Fed cuts rates, it’s uncertain as to whether its credit-tightening campaign is over or has merely paused. My analysis of post-World War II history reveals that a 100-basis-point rise in the funds rate is linked to a 36-basis-point rise in the 10-year Treasury note yield, and a 24-basis-point increase in the 30-year Treasury bond yield. … [Read more...] about Bond market rally signals an impending economic recession

Wet market at Wan Chai Causeway bay in Hong Kong. INQUIRER STOCK PHOTO A Filipina domestic helper suffered a severe head injury after she was accidentally hit by a paper cutter while walking in a shopping district in Hong Kong. The website of the local newspaper Headline Daily reported that the 55-year-old overseas Filipino worker was heading home from shopping for kitchen utensils at Wan Chai market when a paper cutter measuring 25 centimeters fell down and pounded her head. The cutter’s sharp blade was concealed, and yet the Filipina’s head bled. She was rushed to a clinic. Police disclosed that the paper cutter fell down from a nearby building that was undergoing renovation. A scaffolding worker who was allegedly responsible for the incident was arrested. Gianna Francesca Catolico /ra Subscribe to our global nation newsletter … [Read more...] about Filipina helper’s head hit by falling paper cutter in HK

KUALA LUMPUR: Bursa Malaysia ended the first half of 2022 on a disappointing note as selling pressure picked up the pace while key Asian markets also closed lower. The bellwether FBM KLCI has so far this year lost 123.31 points or 7.86% from 1,567.53 on Dec 31, 2021. The index closed the final day of the first half 7.26 points lower or 0.5% to close at 1,444.22. In the broader market, laggards outnumbered gainers 521-to-327; about 2.26 billion shares changed hands valued at RM1.97bil. “Markets are getting slammed as we head into the quarter-end, with global growth worries dominating and gas flows into Europe topping the laundry list of concerns on the continent,” SPI Asset Management managing director Stephen Innes said. He said the broader narrative remains unchanged, with growth worries dominating on the back of central bank tightening and the Fed road show pushing its hawkish front loader tone. “More broadly, price action continues to act poorly with growth worries … [Read more...] about Bursa ends 1H on a disappointing note, KLCI closes 7.26 points lower

- A + A KUALA LUMPUR (June 30): Telekom Malaysia Bhd (TM) has inked two collaboration agreements with Cisco International Ltd to co-invest in projects for 5G innovation and the digital acceleration of small and medium enterprises (SMEs). The partnership is part of Cisco’s Country Digital Acceleration (CDA) programme, which is a strategic partnership with governments worldwide to accelerate their national digitalisation agendas. “The programme taps on the power of private and public partnerships across a variety of sectors, including national infrastructure, education, and smart businesses and communities, to bring digital solutions to national challenges,” Cisco said in a statement. TM said the partnership with Cisco focuses on three key pillars: digital transformation in the public sector — specifically education, which will be launched at a later date — digital transformation for service providers that focuses on 5G innovation, and digital transformation for … [Read more...] about TM partners Cisco to accelerate 5G innovation, digital acceleration of SMEs in Malaysia

Karel Doshi - A + A KUALA LUMPUR (June 30): HSBC has appointed Karel Doshi as its new head of commercial banking (CMB) in Malaysia, effective Friday (July 1). “Karel will lead the commercial banking business in Malaysia and continue to drive our ambition for growth, while deepening our presence in the local SME and mid-market space and capturing the increasing proportion of international trade flows into Malaysia,” said HSBC Bank Malaysia CEO Omar Siddiq. She will report regionally to HSBC’s head of commercial banking for South and Southeast Asia, Amanda Murphy, and in Malaysia to Omar, the bank added in a statement. “Karel joined HSBC in 2007 and brings diverse coverage and advisory experience spanning corporate, commercial and investment banking,” the bank said, noting that she has over two decades of experience in Malaysia. “Alongside her coverage experience, Karel brings to the fore, strong operational, credit and risk management expertise as chief … [Read more...] about HSBC appoints Karel Doshi to lead commercial banking business in Malaysia

This article first appeared in City & Country, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A The rental and occupancy levels of office space in KL city are anticipated to see downward pressure, as a result of substantial incoming supply and low occupancy in office buildings this year. The occupancy level in KL fringe, however, is expected to remain relatively stable, driven by a wider pool of tenants/occupiers and high-quality decentralised offices, particularly in areas with ease of accessibility and adequate transport links. Meanwhile, the Selangor office market will remain resilient with more leasing activities expected, especially for buildings with Multimedia Super Corridor (MSC) status and Grade A buildings, says Knight Frank Malaysia executive director of corporate services Teh Young Khean in presenting The Edge /Knight Frank Kuala Lumpur and Selangor Office Monitor 1Q2022. Malaysia reopened its borders in early April to … [Read more...] about The Edge | Knight Frank Kuala lumpur and selangor office Monitor (1Q2022): Downward pressure on rental, occupancy rates to continue

- A + A (June 30): All emerging Asian currencies were set for half-yearly losses on Thursday, with the South Korean won set to lose the most, as policy tightening by the US central bank and concerns over global economic outlook spurred selling in Asian assets. The won dropped 8.4% so far this year, while the Philippine peso and Indian rupee were on track to post half-yearly losses of 7.3% and 5.8%, respectively. Emerging markets in the six-month period were battered by capital outflows due to the US Federal Reserve kicking off its tightening cycle, Russia's invasion of Ukraine, and inflation from higher commodity prices. Among local drivers, China's insistence on a zero-Covid policy also spurred selling as the country's repeated imposition of restrictions means a slower economic recovery for the region's largest economy. "The broader market ... they need some more convincing because I think at the back of their mind, they've still got this hesitancy due to the … [Read more...] about Asian currencies set for half-year losses on rate hikes, inflation woes

- A + A KUALA LUMPUR (June 30): Reach Energy Bhd (REB) will issue 1.03 billion new shares at an issue price of 20 sen apiece to offset debt owing to Super Racer Ltd (SRL) amounting to US$49.56 million (or RM206.51 million). Following the exercise, SRL will be the largest shareholder of the group, with a stake of 48.5%. SRL intends to seek exemption from taking a mandatory takeover offer of REB’s remaining shares and outstanding warrants, the latter said. The issuance of the 1.03 billion shares will nearly double REB’s existing share capital of 1.1 billion shares, and would bring its enlarged share capital to 2.13 billion shares. The exercise will also dilute the REB stake held by Reach Energy managing director Shahul Hamid Mohd Ismail via Reach Energy Holdings Sdn Bhd to 6%, from 11.66%. Meanwhile, MTD Capital Bhd’s stake in the company will be diluted to 5.38%, from 10.45%. SRL is wholly owned by Hong Kong citizen Cheung Siu Fai, a former head of Asia Pacific of … [Read more...] about Reach Energy to see emergence of 48.5% shareholder on US$49 mil debt-to-equity exercise