Asian Market Update : Epic Research Singapore

Asian stocks rose modestly on Thursday, taking their cue from gains on Wall Street as the region braced for a resumption of trading in the Chinese markets after a week-long break.

MSCI's broadest index of Asia-Pacific shares outside Japan tacked on 0.3 per cent, supported by South Korea's Kospi rising 0.5 per cent and Australian shares climbing 0.9 per cent. Japan's Nikkei bucked the trend and lost 0.2 per cent on a stronger yen.

Overnight on Wall Street, the S&P 500 soared to a 3-week high thanks to a bounce in biotechnology companies. Materials shares also enjoyed a positive session on the back of gains for precious metals.

Chinese stock markets, which have been hit by wild swings in recent months due to growth and policy worries, re-open later in the session after shutting since the end of September for holidays. "Arguably, two of the most important developments since China's holiday began is the weakness in the US employment data and, leaving aside the UK, output of the major economies appeared to slow in August," wrote Marc Chandler, global head of currency strategy at Brown Brothers Harriman. "Although many market participants have shifted their expectations of a Fed hike out to March 2016, many Fed officials themselves continue to signal the likelihood of a rate hike before the end of the year." The Fed opted not to hike rates in September in the wake of cooling global growth, and fears of a deepening slowdown in China. Last week's soft non-farm employment report prompted markets to scale back expectations that the Fed would hike rates later this year.

Investors will have an opportunity to gauge the thinking of US central bank officials when the minutes of the Fed's September meeting, at which it opted not to hike rates, are released later in the day.

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Asian Market Update : Epic Research Singapore

Asian stocks climbed, building on their biggest five-day advance in almost four years, as Samsung Electronics Co jumped after quarterly profit topped estimates and investors awaited a Bank of Japan decision on monetary policy.

The MSCI Asia Pacific Index rose 0.2 per cent to 129.23 as of 9:03 am in Tokyo, as Samsung rallied 3.8 per cent to provide the biggest boost to the regional gauge. The company posted third-quarter profit that beat analysts' estimates as the weaker Korean currency boosted component revenue and blunted the impact of price cuts on Galaxy smartphones. Japan's Topix index added 0.2 per cent before BOJ board members and Governor Haruhiko Kuroda decide whether to expand already unprecedented monetary stimulus.

"As chances for additional stimulus are very low, even if stocks rise early on anticipation of easing, they will probably pull back in the afternoon," said Chihiro Ohta, general manager of investment information at SMBC Nikko Securities Inc in Tokyo. "And with Kuroda's press conference coming after the market close, today might be a day of simply waiting for further clues on direction." Thirty-four of 36 analysts forecast that the Japanese central bank willforgo further easing, with just two predicting a move, according to a Bloombergsurvey. Fifteen are forecasting additional stimulus at the next meeting on Oct 30.

Australia's S&P/ASX 200 Index slid 0.4 per cent and New Zealand's S&P/NZX 50 Index was little changed. South Korea's Kospi index rose 0.4 per cent. Mainland Chinese markets remain closed for a holiday, while Hong Kong is yet to open.

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Asian Market Update : Epic Research Singapore

Asian stocks continued where the US left off, heading for their longest run of gains since April as the prospect global central bank policy will remain accommodative for longer bolsters equities around the world.

The regional stock benchmark followed the Standard & Poor's 500 Index in rising a fifth day, as global shares solidify their rebound from their worst quarter since 2011. The dollar maintained losses against major peers, while sliding versus Korea's won amid mounting speculation the Federal Reserve will hold off on raising interest rates until 2016. US oil held above US$46 a barrel.

"Markets continue to believe that weak data will pressure central banks in Europe and Japan to provide more stimulus and will delay the US Fed in its pursuit to begin withdrawing monetary stimulus," Matthew Sherwood, head of investment strategy at Perpetual Ltd in Sydney, which manages about US$21 billion, said in an e-mail to clients. This "continues to have investors believe that asset prices can defy the weak growth environment." Stocks have been rallying since capping their most volatile quarter in four years, as stagnation in the US labour market pushes out the probable timeline for rate increases. Odds the Fed will pull the trigger on tightening this month have fallen to 10 percent, suppressing the dollar while bolstering assets in riskier markets that have benefited from the era of cheaper money. Australia is expected to keep rates at a record-low Tuesday, while the Bank of Japan starts a two-day meeting, with almost half of economists surveyed projecting they'll bolster stimulus at the end of October.

The MSCI Asia Pacific Index climbed 0.9 per cent by 9:55 am in Tokyo, while a similar measure for global stocks added 0.1 per cent in early trade, also rising a fifth day.

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Asian Market Update : Epic Research Singapore

Asian stocks rose early on Monday after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of Friday's weaker-than-expected U.S. employment data.

Data released Friday showed US non-farm payrolls rose by 142,000 in September, considerably lower than the 203,000 jobs the markets had expected.

The lacklustre jobs report, which also showed a stall in US hourly wage growth, fuelled doubts that the world's largest economy was robust enough to withstand a rate hike before year-end.

The possibility of the Fed delaying the lift-off date for rates also meant its loose policy, which has helped shore up risk assets globally by providing cheap cash, would continue a little longer.

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Asian Market Update : Epic Research Singapore

Asian stocks edged up on Thursday as global equities found breathing space after their worst quarter in four years, although caution over China Purchasing Managers' Indexes due later in the session limited gains.

Stocks in Asia took heart from an overnight rally on Wall Street, where the S&P 500 gained 1.3 per cent and the Dow rose 1 per cent as bargain hunters scooped up beaten-down shares.

China's official manufacturing PMI due at 0100 GMT is expected to show factory activity shrank for a second straight month in September. This news will be followed by the final readings of September's Caixin/Markit manufacturing and services PMIs at 0145 GMT. "With the world so sensitive to China's growth prospects, today's manufacturing and services reports could drive sentiment," wrote Chris Weston, chief market strategist at IG in Melbourne.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. Australian shares were 0.8 per cent higher. Japan's Nikkei took a lacklustre central bank "tankan" survey on business sentiment in stride and climbed 0.2 per cent.

Chinese financial markets will not have an immediate chance to react to the PMIs as they are closed Oct 1 to Oct 7 for national holidays.

In currencies, the dollar stood tall after an overnight boost from an upbeat US private-sector employment report.

US private employers added 200,000 jobs in September, according to the ADP National Employment Report, beating forecasts and hinting jobs growth may be sufficient for the Federal Reserve to raise interest rates later this year.

In September, the Fed opted against hiking interest rates, citing concerns about global risks and market tumult stemming from China. But in recent days top policymakers including Chair Janet Yellen have said the Fed could hike rates this year if the economy improves.

The euro was little changed at US$1.1172 after shedding 0.6 per cent overnight. The dollar was steady at 119.81 yen after nudging up overnight versus its Japanese counterpart.

The dollar index was flat at 96.266 after rising 0
.2 per cent on Wednesday, with a rise in US Treasury yields in the wake of the bullish jobs report shoring up the greenback.

As with stocks, commodities caught a breather amid the lull in global risk aversion, with copper and nickel rallying as bearish investors closed out quarter-end positions and ahead of the Chinese holidays.

Industrial metals were boosted by a bounce in the shares of hard-hit commodity group Glencore.

Three-month copper on the London Metal Exchange went as high as US$5,192 a tonne, the highest since Sept 22.

Nickel jumped 5.3 per cent overnight to end at US$10,400 a tonne, the strongest since Sept 11.

US crude was up 0.5 per cent at US$45.31 a barrel despite a surge in US crude and gasoline stocks last week, with traders pointing to quarter-end "window dressing" by investors behind the gains.

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Asian Market Update : Epic Research Singapore

Most Asian stock markets steadied on Wednesday after sliding to 3-year lows but a weak outlook for commodities and persistent concerns about China's economy discouraged most buyers.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade after plumbing its lowest since June 2012 on Tuesday on fears that China's slowdown would curb its huge appetite for commodities and resources.

The index was on track for a 19 per cent loss for the quarter, its worst loss in four years. "Global equities are closing in on their worst quarter since 2011, with a number of factors fuelling fears in an already jittery market, including weak global growth, driven by deceleration in emerging markets, particularly China," strategists at Barclays wrote. "We recommend overweight positions in Japanese and European equities." South Korea's Kospi dropped 1 per cent while Australian shares gained 0.3 per cent.

Japan's Nikkei brushed aside an unexpected drop in the country's industrial output and gained 1.6 per cent. It was still poised for a 14 per cent drop over the quarter, its deepest since 2010.

Asian stocks took an early positive lead from Wall Street, which ended slightly higher overnight as the US bourses took a breather, with the latest round of China fears that gripped global markets petering out for the moment.

Investors also felt relief as shares of mining and trading giant Glencore gained more than 10 per cent overnight.

Hitting risk sentiment, Glencore shares fell to a record low at the start of the week on concerns over the company's ability to withstand a prolonged decline in prices of metals.

Benchmark three-month copper on the London Metal Exchange rose 0.1 per cent to US$4,970 a tonne, though the rise did not do much to move the metal away from a six-year low of US$4,855 hit in August.

Prices of other industrial metals like aluminium and zinc also halted their recent routs overnight.

Commodities and the global financial markets still face a major test of nerves on Thursday, when the closely-watched Chinese Purchasing Managers' Index (PMI) is likely to show the country's factory sector shrank for the second month in a row in September.

Commodity currencies languished while the US dollar stood tall. The Canadian dollar stood near an 11-year low of C$1.3463 per dollar struck overnight.

South Africa's rand managed to bounce modestly but was still in reach of a record low of 14.16 per dollar touched on Tuesday.

The greenback, meanwhile, stood little changed at 119.86 yen. The euro was steady at US$1.1253.

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Asian Market Update : Epic Research Singapore

Asian stocks fell, with the benchmark index heading for the lowest close since November 2012, as a selloff in US and European markets spread to the region and material shares led losses.

Japan's Topix index lost 2.4 per cent after the yen gained 0.6 per cent against the dollar on Monday. Australia's S&P/ASX 200 Index declined 2.3 per cent and New Zealand's NZX 50 Index fell 0.9 per cent. Markets in South Korea are closed for a holiday and those in China, Hong Kong and India are yet to open. Taiwan's equity market is shut because of a typhoon.

The MSCI Asia Pacific Index retreated 1.4 per cent to 122.96 as of 9:10 am in Tokyo, on course to slide 16 per cent this quarter. The Standard & Poor's 500 Index slumped 2.6 per cent on Monday amid a rout in commodity and biotechnology shares, while a gauge of global equities fell to a two-year low. Glencore Plc slumped 29 per cent, dragging the Bloomberg World Mining Index to its lowest level in almost seven years.

Markets have been whipsawed as China's economy falters despite stimulus efforts. A gauge of industrial profits fell the most in at least four years, a report showed on Monday, ahead of manufacturing data this week that should provide further clues on the health of Asia's largest economy. The spectre of higher interest rates in the US is also weighing on sentiment, with Federal Reserve officials ramping up rhetoric in favor of a 2015 rate increase."The slowdown in China is spreading to other Asian economies, Brazil and Australia, and weakness in emerging countries could echo throughout the overall world economy," said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. "We still don't know when market fears will end about China's slowdown, and because of this investors are turning to cash and safe assets." E-mini futures on the S&P 500 rose 0.2 per cent after the underlying gauge's drop on Monday sent the measure to a one- month low.

Data on Monday showed household spending climbed more than forecast in August, indicating consumers will help the US economy muddle through any global slowdown.

New York Fed president William C Dudley said on Monday that the US economy was "doing pretty well" and that the US central bank will probably raise rates later this year. John Williams, head of the San Francisco Fed, also reiterated his expectation that borrowing costs will be boosted in 2015, adding that the jobless rate will probably fall to below 5 per cent this year.

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Asian Market Update : Epic Research Singapore

Asian stocks sagged on Monday after Wall Street's uninspiring Friday performance and ahead of key economic indicators, while the dollar consolidated its gains against the yen and euro.

MSCI's broadest index of Asia-Pacific shares outside Japan stood virtually flat. Shanghai shares fell 0.3 per cent. Financial markets in South Korea, Hong Kong and Taiwan were closed Monday for public holidays.

Tokyo's Nikkei lost 1.1 per cent on caution ahead of coming announcements including Tuesday's Japan industrial production, Thursday's China Caixin Purchasing Managers' Index (PMI) and US non-farm payrolls on Friday. "Investors would not take large positions until they digest the outcomes of these key data, so directionless trading is expected this week and volume is likely to be thin," said Takuya Takahashi, a strategist at Daiwa Securities in Tokyo. "If these data are better than expected, the market will likely start recovering next week." On Friday, the S&P 500 erased an early Federal Reserve-driven rally and closed slightly lower amid a selloff in biotech shares, and the Nasdaq lost 1 per cent. The Dow, however, managed to rise 0.7 per cent.

Fed Chair Janet Yellen on Thursday revived prospects of an interest rate hike before year-end, easing concerns about slowing global growth that helped the dollar and risk assets, which have been buffeted by fears over China's sputtering economy.

Strong second quarter US GDP data released on Friday further sharpened the case for the Fed to raise rates in 2015.

Focus now turns to this Friday's US non-farm payrolls as the markets try to gauge whether labour market conditions are strong enough for the Fed to tighten monetary policy.

The dollar was little changed at 120.48 yen after edging up to a two-week high of 121.24 on Friday as US Treasury yields rose on the strong US GDP numbers and expectations of a Fed hike in 2015.

The euro was also steady, at US$1.1187 after shedding 0.3 per cent overnight. "In terms of price action, we uphold our view of further dollar outperformance versus the emerging market currencies as risk premia remains elevated on China growth, outflows, and policy opacity concerns," wrote strategists at Barclays. "Compared with developed countries, we expect the dollar to appreciate particularly vis-a-vis the euro, as we think the European Central Bank will have to ease monetary conditions at some point before year-end in order to meet its inflation target." In commodities, the lacklustre mood in equity markets spilled over and US crude oil futures lost 0.6 per cent to US$45.42 a barrel while Brent crude lost 0.9 per cent to US$48.15 a barrel.

Copper edged higher but were still stuck near one-month lows. Three-month copper on the London Metal Exchange had edged up 0.4 per cent to US$5,044.50 a tonne. Prices hit four-week lows on Thursday near the US$5,000-mark and are within reach of a six-year low of US$4,855 reached last month. "The recoveries we've seen over the past couple of months, have been pretty short-lived," said strategist Daniel Hynes of ANZ in Sydney. "It highlights the increasing cautiousness around China's growth and what it means for copper despite what the supply side is doing. The PMI will be pretty key this week." Gold treaded water after being hit by a stronger dollar. Spot gold was little changed at US$1,146.70 an ounce after dropping 0.7 per cent on Friday.

Platinum, drubbed recently on fears demand for the metal used in diesel engines would diminish in the wake of the Volkswagen emissions scandal, dipped 0.1 per cent to US$942.25 an ounce, edging back towards the 6-1/2-year low of US$924.50 an ounce plumbed last week.

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Asian Market Update : Epic Research Singapore

Asian stocks rose after Federal Reserve Chair Janet Yellen said the central bank is on track to raise interest rates this year.

"Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter," Yellen said during a speech Thursday in Massachusetts. "But if the economy surprises us, our judgments about appropriate monetary policy will change." The MSCI Asia Pacific Index added 0.2 per cent to 125.11 as of 9:11 am in Tokyo. The regional benchmark measure has fallen 15 percent since the end of June, on course for its worst quarter in four years, as the Fed prepares to raise rates with financial markets rattled by concern slowing Chinese growth.

"The framework the Fed has provided is a reasonably comforting one," Shane Oliver, global strategist at AMP Capital Investors Ltd, which manages US$112 billion, said by phone. "Of course markets are unusually twitchy at the moment and that's not going to go away any time soon. The Fed will only be raising rates when they're confident growth is on a sustainable track. It's a more positive message."

New Arrows

Japan's Topix index added 1.1 per cent. Prime Minister Shinzo Abe unveiled a new economic growth target Thursday and vowed to halt the nation's population slide. The premier laid out three new "arrows" of his Abenomics plan: a strong economy, increased support for families with children, and social security. The Bank of Japan's main inflation gauge dropped into negative territory, data showed Friday, as weak domestic demand and plunging oil prices wiped out the impact of Governor Haruhiko Kuroda's unprecedented monetary stimulus.

New Zealand's S&P/NZX 50 Index gained 0.3 per cent and Australia's S&P/ASX 200 Index climbed 0.9 per cent. South Korea's Kospi index rose 0.2 per cent.

Slower demand from China, where growth is projected to drop below 7 per cent this year, has helped push down commodity prices, sapping already low inflation in the US. The Fed's preferred measure of prices rose 0.3 per cent in the year through July and has been under its 2 per cent target since April 2008.

Resuming Schedule

Ms Yellen is resuming her planned schedule after feeling unwell toward the end of her speech, Fed spokeswoman Michelle Smith said in an e-mailed statement. The Fed chief felt dehydrated, Ms Smith said.

Futures on Hong Kong's Hang Seng Index lost 1.6 per cent and contracts on the Hang Seng China Enterprises Index of mainland firms listed in the city slid 1.8 per cent in most recent trading.

E-mini futures on the Standard & Poor's 500 Index added 0.4 per cent. The underlying gauge, which closed before Ms Yellen gave her speech, declined 0.3 per cent.

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Asian Market Update : Epic Research Singapore

Asian stocks fell on Wednesday as global growth worries stung Wall Street, sending investors scampering to the relative safety of the yen and government debt.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent, with Australia down 1.3 per cent and South Korea falling 0.8 per cent. Japanese markets are shut through Wednesday.

Fresh cracks in the commodities complex, amplified by drops in copper, raised concerns that a China-led slowdown may pose significant headwinds for riskier assets, particularly equities.

Downside risks to global growth have increased and the weak economic outlook will make achieving world development goals more difficult than in the past, the head of the International Monetary Fund said on Tuesday.

Attention will be squarely focused on the China August flash factory PMI survey due to be released at 0145 GMT.

Economists polled by Reuters expect the flash PMI to edge up to 47.5 in September from the final 47.3 in August, but that would still leave it near 6-1/2-year lows and point to a seventh straight monthly contraction in activity.

On Tuesday, the Asian Development Bank lowered its growth forecast for China to 6.8 per cent for 2015.

Overnight on Wall Street, the Dow Jones industrial average fell 1.09 per cent, the S&P 500 lost 1.23 per cent, and the Nasdaq Composite fell 1.5 per cent to 4,756.72.

Losses in equities prompted investors to plough funds into fixed income assets. The benchmark two-year US Treasury yield fell to 0.67 per cent, nearing a two-week low.

In currencies, the US dollar consolidated most of its overnight gains in early Asian trade. It held firm at 96.439 against a basket of six currencies, after earlier rising one per cent. The Japanese yen held firm against the dollar at 120.24 as investors shied away from adding risky bets.

US crude futures rose 0.4 per cent to US$46.51 per barrel, while Brent futures were 0.2 per cent firmer at US$49.18.

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Asian Market Update : Epic Research Singapore

Most Asian stocks rose, following a rebound in US equities. Consumer and material shares led gains.

Four shares climbed for each that fell on the MSCI Asia Pacific Excluding Japan Index, which was little changed as of 8:04 am in Hong Kong. Japanese markets are closed for a holiday. US stocks rose after Fed Bank of Atlanta chief Dennis Lockhart joined Fed presidents from San Francisco, St Louis and Richmond on Monday, saying he remains confident policy will be tightened this year as concern over turmoil in global markets touted by Chair Janet Yellen last week should prove temporary.

"While we may see a moderately positive day for Asian equities following gains in US equities, it's hard to see such gains being sustained amid concerns over Fed policy," said Tim Schroeders, a portfolio manager who helps oversee about US$1 billion in equities at Pengana Capital Ltd. in Melbourne. "The reluctance of the Fed to move from very accommodative policy settings seems to indicate how fragile the US economy can be, especially if you look outside the labor market." With Fed Chair Janet Yellen slated to speak later this week, potentially providing more clarity as to whether to expect a rate increase this year, interest-rate futures indicate traders remain skeptical of a move in 2015. Odds of a hike at the next meeting in October are at 20 per cent, according to fed funds futures, while the probability of an increase at the last meeting of the year, on Dec 16, is 48.8 per cent, down from 58.7 per cent a week ago.

Australia's S&P/ASX 200 Index rose 0.4 per cent. South Korea's Kospi index added 0.2 per cent. New Zealand's S&P/NZX 50 Index climbed 0.1 per cent. Markets in China and Hong Kong have yet to start trading.

The Shanghai Composite Index gained 1.9 per cent on Monday, extending its advance for a second day as President Xi Jinping headed to the US for his first state visit.

Industrial and technology companies rallied on speculation they may see increased orders following Xi's visit, which concludes with a summit with President Barack Obama on Friday. Deals announced before the trip include the first Chinese-made bullet-train project in the US.

E-mini futures on the Standard & Poor's 500 Index were little changed. The US equity benchmark index rose 0.5 per cent on Monday.

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Asian Market Update : Epic Research Singapore

Asian stocks stocks dropped with US equity-index futures and emerging-market currencies as concern that global economic growth spurred investors to sell riskier assets and seek the relative safety of government debt.

Australian shares headed for their biggest retreat in almost a month, dragging the MSCI Asia Pacific excluding Japan Index lower. Standard & Poor's 500 Index contracts signaled a third straight day of losses after Fed members attempted to talk up prospects for an interest-rate increase over the weekend. Copper declined with New Zealand's dollar and emerging-market currencies, while Australian bonds rose a second day. Japanese markets are closed through Wednesday.

"The key thing is that the markets are looking for global growth and we're not seeing any," Raymond Chan, the chief investment officer for Asia Pacific at Allianz Global Investors, which oversees about US$344 billion, told Bloomberg TV in Hong Kong.

"It's the US and China driving sentiment - it's pretty bad. I'd prefer if there was a US rate rise once and for all, and that would clear away all the uncertainty. Volatility is going to continue to exist for a long while."

Three Fed policy makers argued over the weekend that higher borrowing costs are still warranted in 2015, commenting after the central bank decided to stand pat amid global financial- market volatility and concern about the impacts of an apparent economic slowdown in China. Still, global anxiety levels got a boost Friday after a European central banker said the Fed remaining on hold vindicated
their view of the global economy and indicated stimulus could be boosted if needed.

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Asian Market Update : Epic Research Singapore

Most Asian stocks fell as the Federal Reserve's decision not to raise interest rates fueled concerns about the strength of the global economy. Japan's Topix index retreated.

About two shares dropped for each that climbed on the MSCI Asia Pacific Index, which traded little changed at 129.39 as of 9:03 am in Tokyo. The measure is heading for a 1.6 per cent gain this week. US rates will remain near zero for at least another month after the Fed's decision, which showed policy makers are reluctant to end record monetary stimulus at a time when uncertainty over China and other developing nations is whipsawing global markets. Odds of an increase this year have fallen below 50 per cent, with Fed Chair Janet Yellen saying the recent turmoil may restrain the US economy and suppress already slow inflation.

"The reality is that the rate hike is still going to come, whether it's before the end of the year or in 2016," Tai Hui, the Hong Kong-based chief Asia market strategist at JPMorgan Asset Management, which oversees about US$1.7 trillion, told Bloomberg TV in Hong Kong. "So I don't believe we've cleared anything." Japan's Topix lost 0.9 per cent as the yen weakened 0.1 per cent against the dollar. South Korea's Kospi index fell 0.1 per cent. Australia's S&P/ASX 200 Index was little changed. New Zealand's S&P/NZX 50 Index added 0.3 per cent. Markets in China and Hong Kong have yet to start trading.

China's Shanghai Composite Index slipped 2.1 per cent on Thursday as the benchmark gauge posted its biggest price swings since 1997. Volatility has surged amid concern government intervention will fail to shore up the world's second-largest stock market as signs grow the economic slowdown is deepening. A weekend report showed industrial output missed economists' estimates, while fixed-asset investment in the first eight months increased at the slowest pace since 2000. Data on August property prices are due today.

E-mini futures on the Standard & Poor's 500 Index slipped 0.1 per cent. The underlying US equity benchmark gauge dropped 0.3 per cent on Thursday.

Ms Yellen said most Fed officials still expect a rate increase this year and that the US economy is performing well. She reinforced that the path of rate rises would be gradual. Odds of a hike in October are now at 19 per cent, and bets on one in December have slumped to 46.6 per cent, from 59 per cent a week ago, according to fed funds futures.

"Yellen kept referring to the strong dollar and turmoil offshore, those were the main issues," Mark Lister, head of private wealth research at Craigs Investment Partners Ltd in Wellington, which manages about US$7.2 billion, said by phone. "They probably have taken a little bit more notice of what's happening overseas, in China and emerging markets, than some people might have expected. Every meeting is going to be considered live from now on, but it's looking like a better than even chance that it's next year's story."

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Asian Market Update : Epic Research Singapore

Asian stocks hit a three-week high on Thursday after a jump in oil prices lifted Wall Street, with many investors taking last-minute positions ahead of a crucial US Federal Reserve policy announcement.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, hitting its highest level in three weeks while Japan's Nikkei average rose 1.4 per cent.

Oil prices jumped on Wednesday, after the largest US crude drawdown in seven months at the key US delivery point eased worries about over supply, helping to boost battered energy stocks.

That in turn supported Wall Street shares, with S&P 500 index rising 0.9 per cent to 1,995.31, its highest close in almost a month, having pared just about a half of its fall from July to late August.

US inflation data, unveiled a day before the Fed's long-awaited policy decision later in the day, showed consumer prices unexpectedly fell in August.

Precious metal prices jumped as some market players took low the inflation reading to mean a smaller chance of an immediate rate hike.

Gold prices rose to 1.3 per cent on Wednesday to US$1,119.50 per ounce. Silver jumped 3.9 per cent to US$14.96 per ounce, its highest level in more than three weeks.

The dollar also lost its edge in the currency market after the data, with the currency's index against a basket of six major currencies slipping to 95.323 from this week's high of 95.845. "We believe that the Fed will refrain from raising rates today. But at the same time, it will indicate that it is highly likely to raise rates by the end of the year," said Tomoaki Shishido, fixed income analyst at Nomura Securities.

But there is little clarity on what the Federal Reserve will do on the whole.

US money market futures hardly moved, still pricing in about one-in-four chance of a rate hike on Thursday.

On the other hand, the US two-year note yield hit a 4 1/2-year high of 0.819 per cent as investors expect the Fed will start its tightening cycle soon as the economy recovers, even if it does not do so this month.

The rise in Treasuries yields, also likely reflected selling by China, which needs to cash out dollars for its intervention to support the yuan, market players said.

The data published late on Wednesday showed China's holding of US Treasuries dropped to US$1.241 trillion in July from US$1.271 in June.

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Asian Market Update : Epic Research Singapore

Asian shares and the dollar inched higher on Tuesday but caution reigned after Wall Street skidded as investors awaited this week's US Federal Reserve policy decision.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, after Wall Street logged losses, with US trading volume at its lowest in a month as markets awaited the Fed outcome.

Japan's Nikkei stock index rose 0.6 per cent as investors awaited the outcome of the Bank of Japan's two-day policy meeting later this session, as well as BOJ Governor Haruhiko Kuroda's post-meeting speech.

A few investors were betting that Japan's central bank would muster additional easing measures. But the majority believe that the BOJ will simply warn of heightening global risks while holding off on actual stimulus, holding its fire in case the Fed's long-awaited rate hike, whenever it comes, triggers a fresh wave of market turmoil. "It seems logical that they would want to see the wash up from this week's Federal Reserve meeting and hold the ability to be reactionary," Chris Weston, chief market strategist at IG, said in a note. "If we see anything from Mr. Kuroda and the BOJ today, it will be setting the scene for additional measures if they so need," he said.

The Japanese yen edged down slightly ahead of the BOJ outcome, with the dollar trading at 120.35 yen, up about 0.1 per cent from late US trade.

The euro inched down about 0.1 per cent to US$1.1308, while the dollar index, which tracks the greenback against a basket of six major rivals, added about 0.1 per cent to 95.302, moving away from a three-week low of 94.913 touched overnight.

The conclusion of the Fed's two-day meeting on Thursday remained the market's key focus, with many economists now believing that volatile global markets and increasing evidence of slowing momentum in China will prevent the US central bank from raising interest rates for the first time since 2006.

A Reuters poll of 72 economists last week showed a slight majority expect an interest rate rise from the current 0-0.25 per cent, but a smaller sample saw just a 50-50 chance.

In commodities, crude oil futures clawed back some ground lost in the previous session.

US crude rose about 0.8 per cent to US$44.33 a barrel, underpinned by data showing a drop in US supplies. It shed 1.4 per cent on Monday.

Brent crude added about 0.7 per cent to US$46.69, after skidding 3.7 per cent to its lowest settlement in two weeks.

Spot gold edged up slightly to US$1,108.86 an ounce, moving away from last week's one-month low.

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Asian Market Update : Epic Research Singapore

A mixed bag of Chinese economic data at the weekend added to concerns about the world's number two economy Monday, while investors tread water ahead of a crucial US interest rate decision at the end of the week.

After last week's China-fuelled turmoil across global markets, there was more of a sense of calm in early exchanges, with dealers confident enough to shift out of safer assets such as the yen and dollar.

China on Sunday released another set of figures that underline weakness in its huge economy - the main driver of global growth - following disappointing reports last week.

The government said growth in industrial production increased below expectations in August while retail sales accelerated a little more than forecast.

Recently a gauge of manufacturing showed the sector contracting in August, while inflation in consumer prices rose but those at the factory gate fell at their fastest pace in six years owing to weakening overseas demand and a slack property market.

While the data is soft, analysts said it could lead to further monetary easing measures by authorities following five interest rate cuts since November.

In early equities trade Shanghai was 0.53 per cent down and Seoul dipped 0.53 per cent and Tokyo slipped 0.54 per cent. However, Hong Kong was up 0.62 per cent and Sydney rose 0.31 per cent.

Beijing also Sunday unveiled a broad set of reform guidelines to partly privatise its vast state-owned companies aimed at making them more competitive overseas and increasing transparency.

The move comes after leaders in 2013 said they wanted the market to play a greater role in the economy, easing government influence on key sectors such as transport, energy production and arms manufacturing.

Among the reported changes are efforts to modernise SOEs (state-owned enterprises), improve management of state assets and diversify their ownership structures through "mixed ownership" - or the introduction of "multiple types of investors" - ultimately meaning more private shareholders or capital.

However, the main focus this week is on the Federal Reserve's policy meeting, with hopes it will hold off hiking borrowing costs until later in the year.

The central bank is expected to announce a lift-off before 2016 but its decision has been muddied by the latest bout of volatility to hit global markets caused by concerns about China's economy and after Beijing announced a shock devaluation of its yuan last month.

"Trading will remain volatile ahead of the (Fed policy) meeting," Bernard Aw, a strategist at IG Asia in Singapore, told Bloomberg News.

"Sunday's data reinforced concerns about China's economy slowing down. Investors may expect more stimulus in the pipeline, which could provide some support to Chinese equities."

US dealers ended last week on a high. The Dow jumped 2.05 per cent, the S&P 500 climbed 2.07 per cent and the Nasdaq rallied 2.96 per cent.

While traders remain wary of any shocks to the financial system they were confident enough to look for riskier investments.

The dollar edged up to 120.68 yen from 120.57 yen Friday in New York, while the euro was at 136.95 yen against 136.64 yen. The yen is regarded as a safe bet in times of crisis and turmoil.

The single currency also ticked up to US$1.1349 from US$1.1333.

Higher yielding emerging market currencies also advanced against the dollar. The South Korean won added 0.36 per cent, while the Malaysian ringgit and Indonesia's rupiah were marginally higher.

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Asian Market Update : Epic Research Singapore

Asian shares rose on Friday thanks to gains on Wall Street, while the dollar steadied after facing pressure from a rallying yuan and US data that offered no clarity on whether the Federal Reserve might raise interest rates next week.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.2 per cent, on track for a 3 per cent rise for the week.

On Wall Street, major indexes marked solid rises on Thursday, but European stocks broke a three-day run of gains with a drop of nearly 1.5 per cent Japan's Nikkei stock index dipped 0.4 per cent, but was poised to end a volatile week more than 2 per cent higher.

Government data released before the market open showed that large Japanese manufacturers' sentiment turned positive in the July-September quarter, suggesting that companies were taking China's recent slowdown in stride.

US data released on Thursday suggested the labour market was gaining momentum in early September as fewer Americans filed for weekly unemployment benefits, but separate a report showed weak inflation. Taken together, the latest numbers offered no clarity on what the Fed will decide to do at its Sept 16-17 policy meeting. "Based on the performance of the US economy alone, the Fed should raise rates but they do not operate in a vacuum," said Kathy Lien, managing director at BK Asset Management in New York.

Considering volatile global equities, a dovish European Central Bank and actions by other central banks, it will be difficult for the Fed to act, she said in a note to clients.

The dollar index, which tracks the US unit against a basket of six major rivals, edged up about 0.1 per cent to 95.530.

The dollar inched about 0.1 per cent higher against the yen to 120.74, while the euro was nearly flat from US levels at US$1.1279.

The greenback came under pressure overnight as China's yuan shot higher in offshore markets on what was suspected to be rare intervention by Chinese state banks, likely taking aim at speculators betting against the currency.

In commodities trading, US crude oil futures gave back some of their overnight gains, after rallying 4 per cent on US Energy Information Administration data that showed strong demand for gasoline.

US crude was down about 0.7 per cent in Asian trading at US$45.61 a barrel. Brent, which gained 2.8 per cent in the previous session, was down 0.5 per cent at US$48.67.

Spot gold was steady from US levels at US$1,111.15 an ounce, but on track to drop about 1 per cent for the week.

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Asian Market Update : Epic Research Singapore

Asian stocks dropped, after the regional benchmark index surged by the most in six years on Wednesday, as data on American job openings bolstered the case for higher US interest rates.

The MSCI Asia Pacific Index sank 1.2 per cent to 127.87 as of 9:05 am in Tokyo after jumping 4.2 per cent on Wednesday. Japan's Topix index lost 2.7 per cent as the yen halted three days of declines. The Standard & Poor's 500 Index slid 1.4 per cent on Wednesday as investors weighed the implications of the employment data for next week's Federal Reserve meeting and Apple Inc slumped after unveiling new products.

"Markets will remain volatile until the Fed meeting next week," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd, which oversees about US$118 billion said by phone. "Investors are again focusing on the potential US interest-rate increase and how it would impact emerging markets." Job openings in the US surged to a record in July, data released on Wednesday showed. Fed officials have to consider whether market turmoil that began last month will offset the labor-market improvement and interrupt plans to raise the benchmark interest rate for the first time since 2006. Futures traders saw a 28 per cent chance that the Fed would increase rates in September, down from 32 per cent a week earlier, data compiled by Bloomberg show.

Japan's Nikkei 225 Stock Average lost 3.1 per cent after surging by most since October 2008 on Wednesday. South Korea's Kospi index slid 0.7 per cent. Australia's S&P/ASX 200 Index decreased 1 per cent. New Zealand's NZX 50 Index added 0.2 per cent after the central bank cut interest rates and said the currency should fall further. Markets in China and Hong Kong have yet to start trading.

China's Shanghai Composite Index rose 2.3 per cent on Wednesday amid speculation the government will step up stimulus to revive the flagging economy. The Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong jumped 5.2 per cent, while the city's benchmark Hang Seng Index climbed 4.1 per cent.

E-mini futures on the S&P 500 fell 0.3 per cent after the underlying equity gauge failed to add to the second-biggest surge of 2015. Apple, the largest-weighted stock in the S&P 500, slipped 1.9 per cent.

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Asian Market Update : Epic Research Singapore

Asian stocks rose, extending a global rally, amid optimism that Chinese policy makers will succeed in stabilising mainland equity markets. Japanese shares rebounded to push the Nikkei 225 Stock Average back into positive territory for the year.

The MSCI Asia Pacific Index climbed 1.2 per cent to 125.64 as of 9:03 am in Tokyo as the Nikkei 225 surged 3.4 per cent. US investors returned from a long weekend to the first gains in mainland Chinese stocks for five trading days, with shares soaring in late afternoon trade in a pattern that's associated with state buying. The Federal Reserve remains in focus, with traders counting down to next week's meeting of the US central bank.

"China seems to be the big driver at the moment," Chris Weston, chief markets strategist in Melbourne at IG Ltd, said by phone. "As long as China is stable and equity markets there aren't in freefall, markets will generally go higher. We won't rule out more volatility ahead of the US meeting next week." Japan's broader Topix index added 3.3 per cent. South Korea's Kospi index advanced 1.4 per cent. Australia's S&P/ASX 200 Index climbed 0.5 per cent and New Zealand's NZX 50 Index rose 0.8 per cent. Futures on Hong Kong's Hang Seng Index climbed 1.1 per cent in most recent trading. Markets in China and Hong Kong have yet to open.

China's government spent US$236 billion from June through August trying to shore up stocks, according to Goldman Sachs Group Inc. The Shanghai Composite Index surged 2.9 per cent Tuesday, after losing 4.7 per cent in the prior four days.

E-mini futures on the Standard & Poor's 500 Index added 0.1 per cent. The underlying US equity benchmark index jumped 2.5 per cent on Tuesday.

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Asian Market Update : Epic Research Singapore

Asian stocks climbed with US index futures and Australia's dollar as a smaller-than-expected contraction in Japan's economy burnished optimism over the global outlook before an update on Chinese trade.

Gains in Japanese shares helped the Asia-Pacific benchmark to its second advance in seven days, with futures on Chinese equities also foreshadowing an up day. The stock rebound neutered demand for haven assets, with Japan's yen retreating with Treasuries and Australian government bonds. Ongoing concern over the global oil glut kept US crude below US$45 a barrel.

Asia's two largest economies are in focus Tuesday, with Japan's gross domestic product falling less than initially estimated amid a smaller decline in consumer spending. China, the epicenter of a risk-asset rout that has gripped global markets over the past month, is expected to report further declines in imports and overseas shipments. Euro-area GDP is also scheduled.

"The Chinese economy is slowing, despite the best efforts of policy makers who face a tricky balancing act of trying to prop the economy up versus putting in place structural reforms," Mark Sm
ith, a senior economist in Auckland at ANZ Bank New Zealand Ltd, said in a note to clients. "The weaker emerging market backdrop looks to have been the catalyst behind more dovish central bank rhetoric of late, and hence the good old- fashioned central bank 'put' looks set to remain in place for a while yet."

The MSCI Asia Pacific Index added 0.1 per cent by 9:31 am in Tokyo, with Japan's Nikkei 225 Stock Average climbing the same amount, and Australia's S&P/ASX 200 Index up 0.9 per cent. Standard & Poor's 500 Index futures gained 1 per cent from Friday levels after a bounce back in European shares. The Aussie rose a second day with copper, while oil was down 3.1 per cent. The yen extended its retreat from a 1 1/2-week high as yields on 10-year Treasury notes climbed two basis points in their first day of trading this week.

Chinese index futures signaled gains of at least 0.5 per cent, after traders took solace from the fact the Shanghai Composite Index's 2.5 per cent on Monday was driven by a pullback in larger stocks and didn't reignite losses across markets.

Uncertainty over China's outlook has stoked market volatility the past month, with the country's surprise devaluation of the yuan Aug 11 igniting a rout in the riskiest investments. Chinese officials predicted stabilisation in the stock and currency markets at the weekend, while the government statistician revised the reading on economic growth down by 0.1 percentage point Monday, to 7.3 per cent.

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