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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Asian Market Update : Epic Research Singapore

The slump in stocks and commodities continued into Asian trading, with futures pointing to a selloff in Chinese equities following a holiday break.

The Asia-Pacific benchmark headed for its lowest close since November 2012 as futures traders bet Shanghai stocks will fall on their first day of trading since Wednesday. Copper and nickel slipped with crude oil, while Malaysia's ringgit led emerging-market currencies lower. The yen held gains after posting its biggest advance of 2015 last week amid anxiety in markets.

"Trading in Asia today will be driven by two major factors: the delayed response to Friday's nonfarm payrolls number and the reopening of the Chinese stock markets," Angus Nicholson, a markets analyst in Melbourne at IG Ltd, said in an e-mail to clients. "Both of these factors are likely to spur further selling in Asian markets today, with the outcome of the Chinese market reopening being the greater cause for concern." China worked to soothe concern over its economy at the Group of 20 meeting in Turkey at the weekend, with officials predicting stabilisation in the currency and stock markets. Friday's payrolls report showed that while wages and the number of hours worked increased last month, the US added fewer workers than expected, leaving bets on a rate hike in September around 30 per cent. International Monetary Fund chief Christine Lagarde emphasised that the Federal Reserve must be certain the US can handle higher rates given the impact it will have on the global economy.

Stocks The MSCI Asia Pacific Index slipped 0.6 per cent by 10:06 am in Tokyo, as Japan's Topix index lost 0.6 per cent. FTSE China A50 Index futures slid 0.8 percent in Singapore, while contracts on the Standard & Poor's 500 Index gained 0.2 per cent after the index fell 1.5 per cent Friday, ahead of a three-day weekend in the US. Markets in Canada and Brazil are also shut Monday.

Energy producers and mining stocks drove Australia's S&P/ASX 200 Index down 1 percent, while the Kospi index in Seoul declined 0.3 per cent, extending last week's 2.7 per cent drop.

Gauges of volatility in Japanese and Korean stock markets rose for a second day, following a 8.6 per cent bounce back in the Chicago Board Options Exchange Volatility Index Friday. The gauge of expected US stock swings, known as the VIX, reached a an almost four-year high on Aug 24.

The MSCI All-Country World Index also retreated, losing 0.1 per cent in early Monday trading after sinking 1.7 per cent on Friday. More than US$8 trillion has been erased from the value of global equities since Aug 11, when China roiled markets by unexpectedly devaluing its currency. Concern over the slowdown there and the potential impact of higher US borrowing costs has fueled swings in equity to currency and commodity markets the past month.

Commodities Copper and nickel fell at least 0.2 pervcent after also retreating on Friday, while oil decreased a second day.

West Texas Intermediate crude sank 1.5 pervcent to US$45.37 a barrel with all electronic transactions to be booked with Tuesdays for settlement purposes because of the Labor Day holiday in the US Brent also slipped a second day, losing 1.3 per cent to US$48.99 per barrel after Venezuela proposed an OPEC summit to stabilise prices amid a global oil glut.

Gold - which despite its reputation as a haven has been wrong-footed by the recent market gyrations - was little changed at US$1,122.03 an ounce following a three-day drop. While the payrolls gain trailed economists' estimates, the US jobless rate dropped to a seven-year low, the Friday data showed, driving home that while it may not happen this month, US rates are on the rise.

Currencies In the foreign exchange markets, developing-nation currencies caught up with Friday's action, while Australia's dollar pared some of last session's slide to a six-year low.

The ringgit, which is already at a 17-year low, weakened another 1 per cent as Korea's won slipped 0.5 per cent and New Zealand's dollar lingered near its lowest level since 2009. The yen maintained two days of gains, trading at 119.08 per dollar after gaining 2.2 per cent last week.

China's yuan climbed 0.2 per cent in offshore trading to 6.4532 per dollar. G-20 leaders pledged to avoid a currency war in the wake of the yuan's devaluation, the first time they have used such language since 2013. Chinese Finance Minister Lou Jiwei told the meeting he expects Asia's largest economy to grow at a rate of about 7 per cent over the next four or five years, according to an account on the PBOC's website.

Intervention in the market helped ease Chinese stocks into last week's two-day break, with the Shanghai Composite Index set to reopen at the same level it traded at Aug 27. People's Bank of China Governor Zhou Xiaochuan said in a statement at the weekend that the rout in Chinese equities is close to ending, and that the state's actions prevented systemic risk by stopping a free-fall.

China will deliver an update on its foreign-currency reserves Monday, providing investors with some idea of how much has been spent by regulators to shore up local markets and the yuan. Singapore and Indonesia also report on reserves, while Taiwan issues trade data.

Bonds in Asia shrugged off Friday's gains in US Treasuries, with yields on 10-year Japanese notes rising one basis point, or 0.01 percentage point, to 0.37 per cent. Rates on similar maturity Australian debt climbed two basis points to 2.65 per cent. Yields on Treasury notes due in a decade ended Friday down four basis points to 2.13 per cent.

Odds the Fed will raise rates at their meeting next week are at 30 per cent, up from 26 per cent before the jobs data, though below the 48 per cent priced in before China's surprise yuan depreciation on Aug 11. Payrolls rose by 173,000 workers, training the 217,000-person increase projected by economists. The jobless rate sank to 5.1 per cent for August.

"The overall tone of the data was certainly solid enough to leave the Fed in play later this month," Philip Borkin, a senior economist in Auckland at ANZ Bank New Zealand Ltd, said in a note to clients. "But to be fair, the Fed's decision of whether to hike or not is not really about the labour market, it hasn't been for a few months now. The main questions - and what is polarising markets and creating plenty of debate - are the outlook for inflation, the impact of tighter financial conditions and the state of the global economy."

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Asian Market Update : Epic Research Singapore

Asian stocks rose ahead of the monthly US jobs report, after the European Central Bank signaled it could expand stimulus if the rout in financial markets continues to weigh on growth and inflation.

The MSCI Asia Pacific Index gained 0.3 per cent to 126.54 as of 9:01 a.m. in Tokyo. The gauge has slumped 3.5 per cent this week, on course for its longest streak of weekly losses in four years. The measure has declined for seven weeks and is down almost 20 per cent from its seven-year high in April.

US shares on Thursday pared gains in afternoon trading in New York as optimism about European stimulus gave way to anxiety over Friday's jobs report and its implications on Federal Reserve interest-rate policy.

"A weaker jobs number on Friday may be the straw that breaks the camel's back for a September rate hike," said Jasper Lawler, a London-based market analyst at CMC Markets Plc. "Mario Draghi didn't let markets down. He obliged with not only a promise of more QE if needed, but also announced the ECB can now purchase more of any one debt issue." The payrolls report on Friday represents the last major data point before the Fed meets to discuss the first increase in interest rates in nearly a decade. US data on Thursday showed jobless claims rose more than forecast last week, while a measure of the services industry hovered just below a 10-year high.

Futures traders are betting the Fed will push back raising its fed funds rate. The probability of an increase in September has fallen to 30 per cent, from 38 per cent at the end of last week, according to data compiled by Bloomberg.

Japan's Topix index rose 0.5 per cent. South Korea's Kospi index gained 0.3 per cent and Australia's S&P/ASX 200 Index advanced 0.2 per cent. New Zealand's NZX 50 Index slipped 0.2 per cent.

Markets in Hong Kong reopen after a holiday, while mainland Chinese markets remain closed.

The Stoxx Europe 600 Index climbed 2.4 per cent, as investors took assurances of central-bank support after the China-fueled volatility of the past month. The Standard & Poor's 500 Index advanced 0.1 per cent in New York, after briefly erasing gains of more than one per cent.

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Asian Market Update : Epic Research Singapore

Asian shares were skittish in early on Tuesday after logging their worst month in three years and the dollar struggled as investors braced for data from China that could raise fresh fears about the health of its economy.

Losses on Wall Street also soured sentiment after comments from Federal Reserve Vice Chairman Stanley Fischer heightened fears among investors of a potential US interest hike in September.

That shook investors who were already jumpy after weeks of wild volatility caused by concerns about the stumbling Chinese economy. US stock futures in Asia fell 1 per cent.

China's official factory sector activity likely shrank at its fasted pace in three years in August, according to a Reuters poll of economists. Similar surveys on service sector activity will also be released in the early morning.

MSCI's broadest index of Asia-Pacific shares outside Japan was up slightly in early trading, after shedding more than 10 per cent in the month of August, its worst monthly performance since 2012, on fears of global fallout from slowing momentum in China.

China's cooling demand is already knocking the economies of its trade-reliant Asian neighbours. South Korea reported on Tuesday its exports fell 14.7 per cent in August from a year earlier, worse than expected and the biggest drop in six years.

Japan's Nikkei stock index was down 0.9 per cent in early trade. The Nikkei lost 8.2 per cent in August, its biggest monthly decline since January 2014.

Chinese shares remained in focus, after both the Shanghai Composite Index and the CSI300 index skidded around 12 per cent in August, their third straight monthly decline.

China's stock markets have now lost nearly 40 per cent of their value since mid-June despite unprecedented government support steps. "We should see an extension of yesterday's losses in the equity market, although how Chinese markets fare is anyone's guess," IG Markets chief market strategist Chris Weston wrote in a note to clients on Tuesday.

The Australian dollar edged down ahead of its US counterpart, losing about 0.1 per cent to US$0.7108 ahead of the Reserve Bank of Australia's latest policy decision at 0430 GMT.

The RBA is considered almost certain to hold interest rates steady and some are expecting a more dovish statement from the central bank amid worries about China, which is Australia's biggest export market.

The US dollar remained under pressure as investors shunned risk and remained wary ahead of US employment data later in the week that could offer clues about the timing of the US Federal Reserve's long-awaited hike to interest rates.

The greenback was down about 0.1 per cent at 121.14 yen, while the euro rose about 0.1 per cent to US$1.1224 .

In commodities trading, crude oil futures gave back some of their biggest three-day price surge in 25 years that saw prices soar more than US$10 a barrel.

On Monday, oil jumped more than 8 per cent on downward revision of US crude production data and OPEC's expressed willingness to discuss curbs on output.

US crude slipped 3.1 per cent to US$47.70 a barrel, while Brent lost 2.8 per cent to US$52.63 a barrel.

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Asian Market Update : Epic Research Singapore

Asia stocks staged another rally in early trade on Friday, taking heart from strong US growth figures to cement a recovery after a torrid week when global markets took fright over China's gloomy economic outlook.

Tokyo led the gains, with Hong Kong and Shanghai in tow, and oil prices zoomed higher after the US reported a surprisingly strong new estimate of economic growth in the second quarter.

The latest data, which showed the world's biggest economy grew at an annual rate of 3.7 per cent in the April-June quarter, buoyed markets that have been worried over the prospects for China's economy, which accounts for some 13 per cent of global output.

"We end the week on another positive note, and the craziness we've seen over the last couple of weeks seems to be dissipating," Chris Weston, chief markets strategist at IG Markets, said in a note.

Markets across the world saw recoveries, with the S&P 500 surging to its second straight gain on Wall Street, while stock indexes in London and Paris also rose.

In Asia, Tokyo rose 2.37 per cent, while Hong Kong opened 1.66 per cent higher and Shanghai gained 1.35 per cent.

The gains come as a relief to investors who at one point saw US$8 trillion wiped off global markets in a stock market rout led by fears over the outlook for China.

Beijing has sought to mitigate those concerns in recent days by taking a series of measures, from allowing its massive state pension fund to invest up to 30 percent of assets in stocks, cutting interest rates and slashing the amount of money banks need to hold in reserve.

The measures are not only aimed at boosting cash flow in China, but also at reviving confidence that Beijing can steer the economy away from a hard landing and keep global growth on course.

Markets took their lead, however, from the US growth report, which, though it covered only through June, confirmed the economy has not yet been hit much by China's downturn.

It added to other strong recent data on consumer confidence and durable goods orders.

"The US economy continues to perform on a consistent basis... (showing) that its economic recovery is sustainable," said FXTM chief market analyst Jameel Ahmad.

Concerns in the recent stock market panic focused on the fact that in recent years China has been the main driver of global growth, with Europe in the doldrums and the United States struggling to maintain a recovery.

But Chris Green, an Auckland-based strategist at First NZ Capital Ltd, said the US figures showed the US economy was in better shape.

"It gave credence to the story that the US economy could be building momentum," he said.

"We seem to have gained some sort of stability and people are focusing more on the underlying strength of the US economy." The latest data boosted the dollar against both the yen and the euro, as well as oil prices.

In Tokyo trading on Friday, the dollar was at or near one-week highs at 121.10 yen and US$1.1243.

US benchmark West Texas Intermediate, meanwhile, gained 80 cents to US$43.36 and Brent crude rose 40 cents to US$47.96.

Eyes were turning toward a central banking symposium that the US Federal Reserve was hosting in Jackson Hole, Wyoming from Thursday to Saturday.

Fed Chair Janet Yellen is not attending, but her deputy, Stanley Fischer, will make keynote remarks on Saturday that could point to whether the central bank believes the global turmoil is severe enough to hold off on a long-expected hike in interest rates.

On Wednesday New York Federal Reserve head William Dudley, seen as close to Ms Yellen and Mr Fischer in his thinking, said that the Chinese turmoil had made the arguments for a rate rise in September "less compelling".

Gains from upbeat releases in the US were tempered, however, by data in Japan that showed that inflation in the Asian powerhouse fell back to zero in July while household spending dropped for a second straight month.

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Asian Market Update : Epic Research Singapore

Asian stocks rose on Thursday as a sharp rebound on Wall Street helped soothe investors' tattered nerves, while the dollar rallied as risk aversion eased.

Stock markets around the world had tumbled earlier in the week as a slump in Shanghai shares fueled worries over China's economic health, but some calm returned after Beijing rolled out strong policy easing steps late on Tuesday.

Japanese and South Korean stocks gained strongly on Wednesday after U.S. stocks racked up their biggest one-day gain in four years.

Ironically, US stocks rallied on Wednesday on expectations that the Federal Reserve will hold off from hiking interest rates next month due to mounting global uncertainties, including China - the very factors that prompted heavy selling in the previous sessions.

The Dow jumped 4 per cent and the S&P 500 rose 3.9 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent early on Thursday, pulling away from a three-year low hit earlier in the week.

Tokyo's Nikkei rose 2 per cent and added to the previous day's 3.2 per cent gain, while South Korea's Kospi climbed 0.7 per cent. Australian shares advanced 0.7 per cent.

Still, investors remained uneasy, with European shares remaining highly sensitive to angst over Chinese growth and sliding nearly 2 per cent overnight.

Chinese shares, the epicentre of recent financial market tremors, failed to rally on Wednesday and ended lower in spite of the People's Bank of China's (PBOC) decision to cut the benchmark bank lending rate and relax reserve requirements for large banks.

A fresh slide in China's equities and worries that China may allow a further depreciation of the yuan risked hampering a recovery in other riskier assets in Asia and beyond. "Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the PBOC appears to be reluctantly easing policy any time there's a drop in share prices," wrote Jasper, market analyst at CMC Markets. "The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work." In currencies, the dollar dipped briefly overnight after New York Fed President William Dudley said the prospect of a September rate hike "seems less compelling" than it was only weeks ago given the threat posed to the US economy by recent market turmoil.

However, he warned about overreacting to "short-term" market moves, and left the door ajar to raising rates when the US central bank holds a policy meeting on Sept 16-17.

But the greenback soon rallied as ebbing risk aversion reduced demand for the yen and euro, which had been sought as safe havens during the recent equity selling.

The greenback gained additional boost on upbeat US durable orders data.

Against the Japanese currency, the greenback fetched 120.07 yen, recovering from a seven-month low of 116.15 plumbed on Monday The euro was little changed at US$1.1335 after losing 1.7 per cent overnight, knocked further away from a seven-month peak of US$1.1715 scaled on Monday.

The common currency was also hurt by comments from a senior European Central Bank official. Peter Praet said the risk of the ECB missing its inflation target has increased due to commodity price falls and weakness in some overseas economies.

Crude oil rebounded amid a general thaw in global risk aversion. US crude futures bounced 1.8 per cent to US$39.28 a barrel. The contracts had slumped to a 6-1/2-year low on Monday, dogged by supply glut woes and worries of a hard landing by China's economy.

Gold slid as the dollar rebounded and US stocks rallied. Spot gold inched down to US$1,124.86 an ounce. The precious metal has lost 3 per cent so far this week.

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Asian Market Update : Epic Research Singapore

Asian shares tumbled Tuesday after a meltdown in Chinese stocks sparked a global equities rout and fuelled mounting fears over the outlook for the world economy.

Shanghai stocks tumbled 6.41 per cent at the open, extending the previous day's plunge on mounting worries over China's faltering economy and its impact on global growth.

The dollar was weak against other currencies and oil prices remained in the doldrums after finishing Monday below US$40 a barrel for the first time in six years, as financial markets sold off around the world.

Tokyo fell 4.13 per cent in early trade, following a bruising session overnight that saw US stocks fall the most since the height of the financial crisis and European equities slump.

Hong Kong opened 0.67 per cent lower, after closing at a fresh 15-month low on Monday, while Seoul was trading flat in early deals.

Sydney dropped sharply at the open before recovering to stand 1.52 per cent higher by mid-morning.

"The world's capital markets are in meltdown, and investors are asking what can stop the panic," said IG Markets' chief market strategist Chris Weston.

"Despite the outrageous moves in the European and US futures markets overnight, it is Asia that is at the epicentre of this concern." Global equities took a battering overnight, with US and European markets plunging after an almost 8.50 per cent slump in Shanghai - the heaviest daily loss since 2007 - sparked panic among world investors.

World equity markets have seen some US$5 trillion wiped off their value since China's surprise devaluation of the yuan on August 11 added to fears the world's second-largest economy is weaker than thought.

Chinese shares have been extremely volatile since a huge debt-fuelled rally, which saw the market rise 150 per cent in 12 months, collapsed in mid-June prompting Beijing to unleash unprecedented measures to support the equity market.

Dealers were braced for more heavy falls Tuesday, as they await news of more intervention from Beijing to rescue its free-falling markets.

It looks likely "that we will carry on the recent trend and if we do, it will be a rough day," James Lee, managing director of First NZ Capital, told Bloomberg News.

The dollar remained low at 118.78 yen, little changed from 118.51 yen in New York trade Monday, but dramatically weaker than 122.06 yen seen in US trading on Friday.

The euro stood at $1.1570 and 137.50 yen in Tokyo, compared with US$1.1606 and 137.55 yen in New York overnight.

US benchmark West Texas Intermediate (WTI) for October delivery was trading at $38.47 after closing at US$38.24 a barrel on the New York Mercantile Exchange, its first below-US$40 close since February 2009.

Brent North Sea crude for October, the international benchmark, was as US$42.86 a barrel after closing at US$42.69 a barrel in London, its lowest level since March 2009.

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Asian Market Update : Epic Research Singapore

Asian stocks extended declines as a global rout deepened, pushing a measure of equities around the region toward a two-year low.

The MSCI Asia Pacific Index retreated 2.8 per cent to 127.83 as of 10:46 am in Tokyo, heading for the lowest close since June 2013, as stock gauges from Sydney to Hong Kong
tumbled. Equities worldwide have lost more than US$5 trillion in value since China's shock currency devaluation on Aug 11, with US shares succumbing to the selloff at the end of last week.

"Things are probably going to get worse before they get better," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd, which oversees about US$118 billion, said by phone. "You really need rate cuts and more policy easing in China. In the meantime, things can get worse. We've got to see more clarity around the Fed" and its timeline for raising interest rates.

Hong Kong's Hang Seng Index, which entered a bear market last week, fell 3.5 per cent. Japan's Topix index dropped 3.3 per cent, heading for a correction. Singapore's Straits Times Index slid 2.3 per cent, set for a three-year low. The Shanghai Composite Index tumbled 5.6 per cent, while Australia's S&P/ASX 200 Index retreated 2.6 per cent. New Zealand's NZX 50 Index lost 2 per cent.

Calm in the US stock market was shattered last week, with volatility soaring by the most on record as the Dow Jones Industrial Average entered a correction and investors dumped the biggest winners of 2015. E-mini futures on the Standard & Poor's 500 Index fell 1 per cent Monday.

Taiwan on Sunday slapped a ban on short-selling of borrowed stocks at prices lower than the previous day's close, while South Korea's finance ministry said it will act "pre- emptively" after the nation's largest exchange-traded fund suffered the biggest weekly withdrawal since its inception 15 years ago. The Taiex index slumped 3.5 per cent on Monday, while the Kospi index fell 0.7 per cent in Seoul.

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Asian Market Update : Epic Research Singapore

Asian shares were mixed on Wednesday, with Shanghai continuing a sharp sell-off on concerns the world's number two economy is slowing and as investors awaited clues for the timing of a US interest rate rise.

Sydney rose 1.33 per cent in early trading while Seoul dropped 1.10 per cent.

Tokyo fell 0.45 per cent after news Japan's trade deficit fell a less-than-expected 72.3 per cent year-on-year in July due to falling energy costs and a pick-up in exports.

Hong Kong rose 0.25 per cent but Shanghai dropped 1.87 per cent, continuing its downward trajectory the day after China's benchmark share index suffered its steepest fall in three weeks.

"Market sentiment is likely to be influenced by what happens on the Chinese exchanges today," Ric Spooner, chief market analyst at CMC Markets in Sydney, told Bloomberg News.

"Investors remain particularly sensitive to developments in China after last week's currency devaluation and are looking for comfort that things are not worse than they seem."

Tuesday's more than six per cent slump in Shanghai dragged down European shares and hit commodities, rattling markets already jittery after Beijing's surprise devaluation.

Falling demand in the world's top consumer of industrial metals and energy - and the prospect of an impending US interest rate hike - pushed Bloomberg's commodity index to its lowest level since 2002.

Oil prices fell further in Asia ahead of the release of minutes from the most recent meeting of the US Federal Reserve.

US benchmark West Texas Intermediate for September lost 22 cents to US$42.40 and Brent crude for October lost 28 cents to US$48.53 a barrel in morning trade.

Concerns about China also weighed on Tokyo shares after data showed Japan's deficit shrank to 268.05 billion yen (S$3 billion) last month against 966.5 billion yen a year earlier.

Economists had predicted the shortfall would shrink to around 53 billion yen, but a rise in automobile exports and a fall in energy imports cut the trade disparity even further.

The lacklustre data came two days after news the world's third-biggest economy contracted last quarter, boosting speculation the central bank will unleash more stimulus as Tokyo's Abenomics growth blitz stumbles.

"Another big drop in Chinese equities is leading to concern over the Chinese economy and a lack of transparency in the global economy," Hiroichi Nishi, a manager at SMBC Nikko Securities, told Bloomberg News.

"We're lacking reasons to aggressively buy in Japan." The dollar traded sideways in Asia ahead of the release of the Fed minutes, due later on Wednesday, for clues on when it will next hike interest rates.

Some dealers expect that the first rise in US interest rates in almost a decade could come as early as next month after a raft of signs the world's top economy is strengthening.

The greenback fetched 124.38 yen, unchanged from New York trade late Tuesday.

The euro was slightly up at US$1.1031 and 137.20 yen against US$1.1029 and 137.19 yen.

Gold was at US$1,117.65 compared to US$1,119.83 late Tuesday.

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Asian Market Update : Epic Research Singapore

Asian shares mostly rose on Tuesday, lifted by gains on Wall Street after strong US housing data added to signs the world's top economy is strengthening.

The dollar headed higher Monday, notching its third straight day of gains against the euro, helped by improving confidence in the US housing sector.

Tokyo added 0.60 per cent in early trades, Sydney gained 0.35 per cent and Seoul dipped 0.21 per cent.

Hong Kong shares rose 0.61 per cent and Shanghai pushed up 0.14 per cent.

The Thai baht slid 0.5 per cent to 35.565 per dollar, it's lowest level since 2009, after an unprecedented bomb attack killed at least 21 people and injured scores in Bangkok. Thai shares had not yet started trading.

Wall Street rose on Monday led by gains in Disney, which got a boost from plans to add "Star Wars" attractions in its theme parks, along with tech giant Apple and McDonald's.

Investors were also cheered by a report from the National Association of Home Builders showing homebuilder sentiment hit its highest level since the recession ended in 2009.

"There is a gradual strengthening in the US housing market, with positive implications for employment and economic growth if sustained," Michael Sherwood, head of investment strategy at Perpetual in Sydney, told Bloomberg News.

Traders are now awaiting the release of minutes from the Federal Reserve on Wednesday, which could shed light on the US central bank's timing for an interest rate rise.

Speculation over when the Fed will raise its key rate for the first time in almost a decade has taken stage after China's central bank stabilised the yuan after a surprise devaluation last week.

"While the market reaction to the yuan's depreciation last week was completely overdone, it will be equally unproductive for investors to believe that the currency's depreciation will reduce China's macro risk," Sherwood said.

Chinese shares also got a boost from a pledge by the securities regulator on Friday to support equities for years, extending measures unleashed during a market crash in June.

In currency markets, the dollar was quoted at 124.47 yen, slightly up from 124.41 yen in New York late Monday.

The euro traded at US$1.1076 and 137.81 yen from US$1.1078 and 137.81 yen.

Oil prices continued their longest losing streak this year, after notching seven weeks of falls, as fears of a lasting global oversupply weighed on the market.

US benchmark West Texas Intermediate for September delivery fell seven cents to US$41.84 and Brent crude for October tumbled 13 cents to US$48.61 a barrel in morning trade.

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Asian Market Update : Epic Research Singapore

Asian shares and the dollar crept higher in early trade on Thursday, with investors cautiously watching China's next move after it allowed the yuan to decline for two straight sessions.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, taking heart from a late recovery on Wall Street that saw two out of three main indexes end in positive territory.

Japan's Nikkei stock index was up 0.3 per cent, shrugging off downbeat capital expenditure figures.

Japanese data released before the market open showed Japan's core machinery orders fell a greater-than-expected 7.9 per cent in June, down for the first time in four months.

China's currency fell to a four-year low on Wednesday, slumping for a second day.

Sources told Reuters that the move to devalue the yuan reflects a growing clamour within Chinese government circles for a devaluation of perhaps up to 10 per cent to help struggling exporters."The continued weakness in China growth will provide more pressure for CNY depreciation, in our view," Barclays strategists said in a note to clients.

The risk-averse mood after China's moves this week heightened the appeal of safe-haven government debt, which has pushed down US Treasury yields and pressured the U.S. dollar.

But benchmark 10-year note prices fell from three-month highs after a lacklustre auction, with the 10-year yield at 2.139 per cent in Asian trading, compared to its US close of 2.130 per cent.

The US dollar also weakened as investors pared back bets that the US Federal Reserve's long-awaited interest rate hike would come as early as its Sept. 16-17 meeting. Short-term US int
erest rates markets indicated investors were pricing in no more than a 40 per cent chance that the Fed will raise rates next month.

Against the yen, the dollar was slightly higher at 124.30 . The euro was steady at US$1.1155 after scaling a one-month peak of US$1.1215 on Wednesday, helped by the unwinding of euro-funded carry trades in the yuan and other emerging market currencies.

In commodities trading, spot gold was steady at US$1,123.81 an ounce after logging its fifth straight session of gains.

Crude oil futures extended overnight gains made on a weaker dollar and lower US crude stockpiles, but remained not far from six-year lows plumbed this week on fears that China's weaker currency would hit imports. US crude was up about 0.3 per cent at US$43.43 a barrel, while Brent also added about 0.3 per cent to US$49.83.

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Asian Market Update : Epic Research Singapore

Asian shares were on the defensive on Monday after new indications of a slowdown in the Chinese economy strained the nerves of markets already unsettled by the prospect of a US interest rate hike in September.

Japan's Nikkei fell 0.4 per cent and South Korean shares dropped 0.3 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan stood near its 1 1/2-year low hit last month and stood flat.

"The markets are beginning to price in structurally lower growth in China and an end to the so-called commodity super-cycle," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.

Chinese exports tumbled 8.3 per cent in July, their biggest drop in four months and far worse than economists' forecast of a one per cent fall, data showed on Saturday.

Producer price deflation deepened to 5.4 per cent, sending wholeale prices to their lowest since late 2009.

The data came as many emerging currencies came under pressure from expectations that the US Federal Reserve will end nearly a decade of its zero interest rates.

The US Department of Labor said on Friday employers added 215,000 jobs in July, only slightly below a Reuters poll of 223,000 jobs. The unemployment rate held at a seven-year low of 5.3 per cent and there were signs that wages were beginning to pick up.

Taken together, the figures promoted traders to ratchet up expectations that the Fed would raise interest rates in September, even though money market futures pricing 0#FF: 0#ED: suggest it remained a close call.

On Wall Street, the Dow Jones industrial average fell 0.3 per cent, hitting a six-month low. The S&P 500 shed also about 0.3 per cent.

Emerging market shares were beaten harder, with MSCI's emerging market index falling to a two-year low on Friday.

The prospect of higher US interest rates has made the dollar more attractive to investors in the past year, which in turn has lowered demand for commodities and crimped US corporate earnings from exports.

The US dollar index, which tracks the greenback versus a basket of euro, yen and four other currencies, reached 98.334, its highest since late April after the US job data, before turning lower. On Monday, it stood at 97.670.

The euro traded at US$1.0957 while the yen was 124.35 to the dollar.

Oil prices kept sliding on the global slowdown, a US gasoline glut and a rise in the US oil rig count.

Crude futures prices fell to fresh multi-month lows early on Monday. Brent fell to US$48.26 per barrel, not far from a six-year low of US$45.19 hit in January.

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