Asian stock indices were steadily advancing on Friday, following similar dynamics on the US and European stock markets a day earlier.
Investor sentiment was positively affected by U.S. inflation data.
U.S. consumer prices (CPI) rose 7.7% in October compared to the same month a year ago, according to the Labor Department. This is the lowest figure since January this year. Thus, inflation slowed from 8.2% in September and was below the 8% average forecast by analysts polled by Trading Economics.
The Federal Reserve is keeping a close eye on data on the pace of consumer price growth. A better-than-expected indicator may encourage the Fed to slow the pace of interest rate hikes, experts believe.
Japan’s Nikkei 225 index was up 2.9 percent by 8:19 a.m. ksd, reaching its highest level in eight weeks.
The most significant rise among the components of the indicator is shown by shares of M3 Inc. providing medical services – by 10.7%. Fujifilm (+10.1%), Shiseido (+9.5%) and Advantest Corp. (+9.1%) were also among the growth leaders.
Mazda Motor’s share price is up 7.8%. The automaker increased net income 3.6 times in July-September and revenue 9.8%.
In addition, SoftBank Group (+1.5%), Sony Group (+4.9%), Fast Retailing (+2.1%), Toyota Motor (+2%) and Nintendo (+0.5%) were up.
Producer prices in Japan rose 0.6% in October compared to the previous month and 9.1% compared to the same month last year. Analysts on average had anticipated a 0.6% rise in the former and an 8.8% rise in the latter, Trading Economics reported. According to the revised data, prices rose 1 percent month-on-month and 10.2 percent year-over-year in September.
China’s Shanghai Composite had gained 1.6% by 7:24 a.m. Ksk, while Hong Kong’s Hang Seng soared 6% to a four-week high.
Shares of developers Longfor Group Holdings Ltd. (+26.5%) and Country Garden Holdings Co. (+25.9%) were among the leaders in the rally at the Hong Kong Stock Exchange. The day before the National Association of Financial Market Institutional Investors approved the registration of Longfor’s 20 billion yuan ($2.8 billion) bond issue.
The price of NIO securities jumped 13.2%. The electric car maker increased its net loss 4.5 times in the third quarter, but gave a strong sales forecast for the current period.
Tencent Holdings Ltd. was up 7.7%, retailers Alibaba Group and JD.com Inc. (SPB: JD) by 7.2% and 11%, carmaker BYD by 5.7%, telecom China Mobile by 1.4% and consumer electronics maker Xiaomi by 3.3%.
South Korea’s Kospi index had added 3.1% by 7:20 a.m. Ksk.
Stocks on Samsung Electronics Co., one of the world’s biggest chip and electronics makers, rose 3.8 percent, while carmaker Hyundai Motor gained 1.2 percent.
Australia’s S&P/ASX 200 index rose 2.8% to a five-month high.
Shares of all four major banks in the country rose: the Commonwealth Bank – by 1.7%, ANZ Bank – 1.5%, Westpac Banking – 2% and National Australia Bank – 1.1%. Share prices of the world’s largest mining companies BHP and Rio Tinto rose by 3.8% and 4.4%, respectively.
Production of beer in Ukraine (except non-alcoholic with alcohol content up to 0.5% vol.) in January-October 2022 decreased by 28.6% compared to the same period of 2021 – to 103.8 million dal, according to the website of the brewers’ organization Ukrpivo.
It is noted that the industry is gradually recovering after the fall of production of this drink in the first quarter by 50% due to the Russian invasion and the shutdown of some of the breweries of the country. Thus, in the first four months of this year the decline was 42.8% over the same period of last year, in January-May – 36.4%, in January-June – 32%, in January-July and January-August – 31.6%, and in January-September – 30.5%.
According to Ukrpiva, there is also a recovery in the production of malt. In particular, after the fall in the first quarter of 2022 by 40.8% and a sharp decline in June by 50.6%, in January-October the rate of production decreased to 17.7% compared to the same period in 2021 – 146.5 thousand tons of malt was produced.
As reported, Ukraine in 2021 produced 5% less beer compared to 2020 – 170.5 million dal, and in 2020, its production decreased by 0.4% compared to 2019 – 179.7 million dal.
Malt production in 2021 was 218,500 tons, down 19.5% from a year earlier. At the same time, its production in 2020 decreased by 18% compared to 2019, to 275 thousand tons.
The dollar is weakening against the euro and is recovering against the yen after a sharp drop against almost all world currencies the day before, triggered by data on a significant weakening of inflation in the United States.
As it became known on Thursday, consumer prices (CPI) in the United States rose by 7.7% in October against the same month last year after an increase of 8.2% in September. Thus, inflation slowed to its lowest since January and was well below market forecasts.
The data may affect the policy of the U.S. Federal Reserve (Fed), which is aggressively raising interest rates in an attempt to curb inflation.
The head of the Federal Reserve Bank (FRB) of Philadelphia, Patrick Harker, already spoke in favor of slowing further rate hikes.
“In the coming months, in light of the cumulative tightening (of QE – IF) already achieved, I expect the pace of rate hikes to slow down as we get closer to sufficiently restrictive policy,” Harker said during a speech at an event in Philadelphia.
The ICE-calculated index, which shows the U.S. dollar’s performance against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), is down 0.25 percent. The day before, the indicator was down 2%.
The euro/dollar pair is trading at $1.0218 by 7:55 a.m. Ksk, versus $1.0209 at the close of Thursday’s session, with the euro strengthening 0.1%.
The dollar/yen is up 0.4% at 141.57 yen, up from 140.97 yen at the end of last session.
The pound is changing little and is trading at $1.1716 compared to $1.1715 at the close of previous trading.
The mainland yuan rose 1.1 percent to 7.1089 yuan per $1, renewing a four-week high.
The Australian dollar is up 0.5 percent at a seven-week high of $0.67, despite statements by Australia’s Deputy Central Bank Governor Michelle Bullock that the country’s interest rate is likely to continue rising.
Oil prices are rising moderately on Friday morning after the first rise in four sessions the previous day, caused by a sharp weakening of the dollar.
The cost of January futures for Brent on London’s ICE Futures Exchange stood at $93.92 a barrel by 7:05 a.m. Ksk, $0.25 (0.27%) above the previous session’s closing price. Those contracts rose $1.02 (1.1%) to $93.67 a barrel at the close of trading on Thursday.
The price of WTI futures for December at electronic trades on the New York Mercantile Exchange (NYMEX) is $86.72 per barrel by that time, which is $0.25 (0.29%) above the final value of the previous session. The contract rose by $0.64 (0.8%) to $86.47 per barrel on Thursday.
The index calculated by ICE, which shows the dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), fell about 2% the previous day after data on a sharp slowdown in U.S. inflation. U.S. consumer prices (CPI) rose 7.7% in October compared to the same month a year earlier after rising 8.2% in September. Thus, inflation slowed to its lowest since January and was well below market forecasts.
“The consumer price index came in below forecasts, and that eased some of the negative factors for oil, such as the strong dollar and fears of more aggressive Fed rate hikes,” said Price Futures Group senior analyst Phil Flynn.
“At the same time, uncertainty over China’s coronavirus policy persists,” the expert added. – It seems to me that once we see signs that the Chinese economy is starting to open up, that will radically change the dynamics and push oil prices up.”
UNESCO has published data on the status of fifty glaciers included in the World Heritage List. And these data clearly indicate their accelerated melting.
Glaciers in the Dolomites, the Mont Perdu in the French Pyrenees, the Yellowstone and Yosemite glaciers in the United States, the glaciers of Africa on the UNESCO list – these are some of those that will disappear by 2050, experts say.
They estimate that even if you stop emitting CO2 and take radical protective measures, such as those being discussed at UN climate conferences, such as the COP27 world meeting in Egypt in November, the melting seems already irreparable.
“The situation is bad for mountain glaciers. Worse than for the polar ice caps of Greenland and Antarctica,” says Marie Cavite, a glaciologist at the Catholic University of Leuven in Belgium.
She explains that in the optimistic scenario for all the world’s glaciers by 2100, the estimated loss ranges from 22% to 57% “depending on the regions and the measures taken.” “But if you have the glaciers of the Alps in mind specifically, 94% of them will be gone by 2100,” says the glaciologist.
The heat of 2022 was particularly killer for these alpine glaciers, she says. Temperatures in the summer, as elsewhere in Europe, were much higher than usual. There was little snow cover in the spring, whereas snow is a protective blanket for glaciers: before the ice starts to melt, the snow has to melt.
And in addition to this, the third negative factor, very specific to the Alps, Marie continues, is the traces of a sandstorm from the Sahara that reached Europe. “Sand, unlike snow, is dark, and the ice heats up faster underneath it,” notes the glacier researcher. The confluence of these circumstances this year, she explains, is what led to this unprecedented melting.
The 1,570 Starlink system terminals handed over by Poland have already arrived in Ukraine, Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mikhail Fedorov said.
“This is especially important now, because there are problems with electricity due to Russian shelling. When the light disappears, mobile operators and Internet providers do not work in some regions. So let’s equip the country with public WI-FI hotspots where people can be connected,” Fedorov wrote in a telegram on Thursday.
He noted that some of the terminals will be given to civilian administrations in the de-occupied territories. “In addition, we will provide Starlinks “Ukrzaliznytsia”, so that passengers and employees have a stable mobile communication and Internet,” the minister stressed.
Fedorov specified that since the beginning of the full-scale invasion with the assistance of the Ministry of Digital from donors and partners Ukraine has received more than 20 thousand Starlink terminals.
“Of these, 5 thousand with the support of the Polish government. Now another 1,570 terminals from our strategic partners will help Ukraine stay connected. I thank the Polish government for its constant support and ZAMMLER group of logistics companies for the free delivery of the new batch of terminals to Ukraine,” summed up the head of the Mincifra.
