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Archives: Reuters Articles

US tells Southeast Asian leaders summit marks ‘new era’ for ties

WASHINGTON, May 13 (Reuters) – US President Joe Biden said on Friday a first summit in Washington with leaders from the Association of Southeast Asian Nations (ASEAN) marked the launch of a “new era” in the relationship between the United States and the 10-nation bloc.

Addressing the second day of a two-day meeting, Biden said “a great deal of history of our world in the next 50 years is going to be written in the ASEAN countries, and our relationship with you is the future, in the coming years and decades.”

The summit marks the first time that ASEAN leaders gathered as a group in Washington and their first meeting hosted by a US president since 2016.

The Biden administration hopes the effort will show that Washington remains focused on the Indo-Pacific and the long-term challenge of China, which it views as its main competitor, despite the crisis in Ukraine.

“We’re launching a new era – a new era – in US-ASEAN relations,” Biden said.

Earlier, US Vice President Kamala Harris told ASEAN leaders the United States would remain in the region for generations and stressed the need to maintain freedom of the seas, which Washington says is challenged by China.

“The United States and ASEAN have shared a vision for this region, and together we will guard against threats to international rules and norms,” she said.

Neither she nor Biden mentioned China, which Washington accuses of using coercion against its neighbors, by name.

“We stand with our allies and partners in defending the maritime rules-based order, which includes freedom of navigation and international law,” Harris said.

Harris said the United States would continue to respond with ASEAN to the threat of COVID-19, having already donated more than 115 million vaccines to the region.

“As long as COVID is present in any one country, it affects us all,” she said. She also said the United States and ASEAN needed to show collective ambition on the climate issue, accelerate the transition to clean energy, and meet infrastructure needs in a sustainable matter.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, though Myanmar’s leader was excluded from the summit over a coup last year and US treaty ally the Philippines is in transition after an election and is represented by its foreign minister.

Biden opened the meeting on Thursday by hosting a dinner for the leaders at the White House, and his administration promised $150 million to help improve infrastructure, security, pandemic preparedness and on other projects in ASEAN.

However, US spending pales in comparison to that of China, which in November alone pledged $1.5 billion in development assistance for ASEAN over three years to fight COVID and fuel economic recovery, and US officials concede Washington needs to step up its game.

On Friday Biden announced he was nominating a new ambassador to ASEAN, Yohannes Abraham, currently chief of staff on his National Security Council, to fill a post vacant since the start of the Trump administration in 2017.

New US commitments will include deployment of a US Coast Guard vessel to the region to help counter what Washington and regional countries have described as China’s illegal fishing.

Biden is working on more initiatives, including “Build Back Better World” infrastructure investment and an Indo-Pacific Economic Framework (IPEF). But neither is finalized.

Russia’s invasion of Ukraine will be on the agenda with ASEAN, with the United States hoping to persuade ASEAN countries to do more to push back against Moscow.

CONCERN OVER CHINA

ASEAN countries share many of Washington’s concerns about Chinese assertiveness, including Beijing’s claim of sovereignty over vast swathes of the South China Sea where Vietnam, the Philippines, Brunei and Malaysia have rival claims.

But they also remain cautious about siding more firmly with Washington, given their predominant economic ties with Beijing and limited US economic incentives.

They have also been frustrated by a US delay in detailing plans for economic engagement since former President Donald Trump quit a regional trade pact in 2017.

At a virtual summit with ASEAN last October, Biden said Washington would start talks about developing what has since been dubbed IPEF to engage more with the Indo-Pacific economically.

However, analysts and diplomats say only two of the 10 ASEAN countries – Singapore and the Philippines – are expected to be among the initial group to sign up for negotiations under IPEF, which does not currently offer the expanded market access Asian nations crave given Biden’s concern for American jobs.

Malaysian Prime Minister Ismail Sabri Yaakob said on Thursday Washington should adopt a more “active” trade and investment agenda with ASEAN.

(Reporting by Jeff Mason, David Brunnstrom, Michael Martina, Steve Holland, Trevor Hunnicutt, and Simon Lewis; Editing by Angus MacSwan, Nick Zieminski and Daniel Wallis)

PRECIOUS-Gold set for fourth weekly loss on dollar strength, Fed hike bets

PRECIOUS-Gold set for fourth weekly loss on dollar strength, Fed hike bets

Gold hits lowest level since Feb. 4 at $1,798.86/oz

Silver prices dip about 6% so far this week

Platinum, palladium also set for weekly losses

Updates prices

By Ashitha Shivaprasad

May 13 (Reuters) – Gold fell more than 1% on Friday and is set for its fourth straight weekly decline, as the dollar’s strong run with more aggressive U.S. interest rates on the horizon sapped appetite for bullion.

Spot gold XAU= fell 0.7% to $1,808.89 per ounce by 01:54 p.m. EDT (1754 GMT), after hitting its lowest since Feb. 4 at $1,798.86. It has declined nearly 4% this week.

U.S. gold futures GCv1 settled down 0.9% at $1,808.20.

U.S. Federal Reserve Chair Jerome Powell said on Thursday that the battle to control inflation would “include some pain”, as the impact of higher interest rates is felt. nS0N2UR07B

“Gold is being weighed down as the Fed has been committed to raise interest rates at a fast pace and in addition, the dollar has been extremely strong,” said David Meger, director of metals trading at High Ridge Futures.

“Going forward, the inflation numbers are what the market will closely watch.”

The dollar index .DXY was set for a sixth consecutive weekly gain, hovering near a 20-year high. USD/

Although seen as an inflation hedge, bullion yields no interest and is sensitive to rising U.S. short-term interest rates and bond yields.

“A rebound in global stock markets amid less risk aversion in the marketplace to end the trading week is also a negative for the safe-haven metals,” said Kitco senior analyst Jim Wycoff in a note.

Growth stocks led a rebound in Wall Street’s main indexes. .N MKTS/GLOB

Spot silver XAG= rose 1.6% to $20.98 per ounce, but has fallen about 6% this week, the most since late January.

Platinum XPT= fell 0.8% to $936.51. Palladium XPD= gained 1.5% to $1,936.83, after falling over 8% on Thursday.

“Overwhelming concerns about supply disruptions in Russia take precedence in palladium market and there is active buying into dips as prices have come down dramatically,” added Meger.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich and Shailesh Kuber)

((Ashitha.Shivaprasad@thomsonreuters.com;))

Wall Street ‘fear gauge’ offers no silver lining as bear market looms

Wall Street ‘fear gauge’ offers no silver lining as bear market looms

NEW YORK, May 13 (Reuters) – A surprising lack of panic in the U.S. stock market as measured by Wall Street’s “fear gauge” is keeping some investors from calling a bottom on an already bruising equity selloff.

Since 1990, the Cboe Volatility Index .VIX has hit an average level of 37 at market bottoms, compared with its most recent level of around 32.

Some investors believe that means stocks are yet to see the crescendo of fearful selling that has sometimes accompanied past market bottoms, even though the S&P 500 has already fallen nearly 20% from its record high, a level that would confirm a bear market.

“Sentiment is negative out there but there is no real fear, there is no sense of panic,” said Kris Sidial, a co-founder at volatility arbitrage fund The Ambrus Group. “The one thing that you are not seeing is capitulation.”

The VIX – which measures the expectation of stock-market volatility as expressed by options prices – stands far above its long-term median level of 17.6.

Many investors believe volatility is likely to remain elevated as markets digest a hawkish Federal Reserve, soaring inflation and geopolitical uncertainty stemming from the war in Ukraine.

While it’s not necessary for the VIX to shoot higher before calm returns to markets, the index’s failure to climb well above the mid-30s may be a sign that selling in stocks is not yet washed out, making it more dangerous for those looking to buy on weakness, market participants said.

“I just don’t think we have seen that sort of event that marks a bottom,” said Steve Sosnick, chief strategist at Interactive Brokers.

The VIX had logged a high close of 82.69 during the March 2020 COVID-19 driven selloff, after which the S&P 500 more than doubled as the Fed slashed rates and implemented other easy money policies to support the economy. The index hit 36.07 in 2018, when stocks stopped a hair short of entering a bear market on worries over tighter Fed policy, and topped out at 80.86 during the Great Recession.

“I would love to see more panic and absolute flushing of this market,” said Mike Vogelzang, chief investment officer at CAPTRUST. “I’d love to see VIX at 40 or 45.”

One reason why the VIX – which is calculated based on S&P 500 options contracts – may be relatively subdued is that the gradual grinding selloff has left investors lighter on their allocation to equities.

Investors’ aggregate equity positioning has slipped to the levels lowest since the 2020 COVID-19 selloff, analysts at Deutsche Bank estimate.

Meanwhile, options positioning in S&P 500 and the VIX show a market that is very well hedged against declines, said Brent Kochuba, founder of analytic service SpotGamma. With defensive positions in place, investors see little hurry to buy more put options even as the market grinds lower, Kochuba said.

The VIX is far from the only sign investors look at when trying to determine whether markets have bottomed, and at least one volatility measure – one month historical volatility – shows markets may be closer to a turning point than indicated by the VIX.

That measure of choppiness stands at 29, its highest since July 2020 and about 4 points above where it stood on the day the S&P 500 bottomed during the last 54 instances of corrections and bear markets going back to 1928, a Reuters analysis showed.

Still, some believe that any recovery in stocks is unlikely to last without a big “crash-up” in volatility.

“What you have now is people hanging on and hoping for a bounce,” said Patrick Kaser, portfolio manager at Brandywine Global Investment Management.

To mark the end of the selling, however, the market needs a “a moment of high profile failure and pain,” Kaser said

(Reporting by Saqib Iqbal Ahmed; Additional reporting by Davide Barbuscia; Editing by Ira Iosebashvili and Sam Holmes)

Australian shares end higher after recent selloff, post fourth weekly loss

Australian shares end higher after recent selloff, post fourth weekly loss

Updates to close

Tech stocks are the top advancers

Gains seen across most sub-indexes

ASX sheds 1.8% for the week

By Upasana Singh

May 13 (Reuters) – Australian stocks closed higher on Friday, led by technology firms, although the benchmark index marked a fourth straight weekly loss as surging inflation, aggressive rate hikes, and COVID-19 lockdowns in China continued to weigh on markets.

The S&P/ASX 200 index .AXJO ended 1.9% higher at 7,075.10 — its best day since Jan. 28.

“Markets may be taking a breather after what has been a week of heavy selling,” said Kerry Craig, global market strategist at J.P. Morgan.

The benchmark index shed 1.8% for the week, as sentiment took a hit amid losses in world equities as investors focused on tightening monetary policies by central banks, which fuelled concerns of a global economic slowdown.

Domestic growth-linked technology stocks .AXIJ led gains with a 7% jump, but the sub-index clocked its worst weekly performance since late-January.

ASX-listed shares of Block Inc SQ2.AX, WiseTech Global WTC.AX and Xero XRO.AX soared between 7% and 15%.

Strong iron ore prices boosted the metals and mining index .AXMM, up 1.6%. It, however, marked the worst week in three. IRONORE/

Rio Tinto RIO.AX, BHP Group BHP.AX and Fortescue Metals FMG.AX rose about 2% each.

Financials .AXFJ advanced 1.4%, snapping a four-day losing steak. The sub-index fell 1.2% for the week. Australia’s four largest lenders were up 0.1%-1%.

Energy stocks .AXEJ also gained 2.5% to see their best day in more than two months on firm crude prices. Oil and gas explorers Woodside Petroleum WPL.AX and Santos STO.AX rose 2.7% and 3.2%, respectively. O/R

Going forward, the market will watch out for any significant catalysts, including any updates on inflation from Australia, United States and other regions, said Steven Daghlian, a market analyst at CommSec.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index .NZ50 ended 0.1% lower at 11,168.18.

(Reporting by Upasana Singh in Bengaluru; editing by Uttaresh.V)

((Upasana.Singh@thomsonreuters.com))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1 

BRIEF-First Gen Posts Qtrly Net Income Attributable Us$62.7 Million

May 13 (Reuters) – First Gen:

  • QTRLY NET INCOME ATTRIBUTABLE US$62.7 MILLION VERSUS US$84 MILLION

  • QTRLY GROSS REVENUE US$570.4 MILLION VERSUS US$482.9 MILLION

Source text for Eikon: ID:nPSX3s3Y2m

Further company coverage: FGEN.PS

((Reuters.Briefs@thomsonreuters.com;))

BRIEF-Berjaya Philippines Posts Qtrly Net Income Attributable 353.8 Million Pesos

May 13 (Reuters) – Berjaya Philippines:

  • QTRLY NET INCOME ATTRIBUTABLE 353.8 MILLION PESOS VERSUS 200.4 MILLION PESOS

  • QTRLY GROSS REVENUE 10.95 BILLION PESOS VERSUS 7.53 BILLION PESOS

Source text for Eikon: ID:nPSX6qsGr3

Further company coverage: BCOR.PS

((Reuters.Briefs@thomsonreuters.com;))

BRIEF-Ayala Corp Says Qtrly Net Income Increased 45% To 7.8 Billion Pesos

May 13 (Reuters) – Ayala Corp:

  • QTRLY NET INCOME INCREASED 45% TO 7.8 BILLION PESOS

  • QTRLY REVENUE FROM CONTINUING OPERATIONS 65.98 BILLION PESOS VERSUS 60.18 BILLION PESOS

Source text for Eikon: ID:nPSX5rfVy1

Further company coverage: AC.PS

((Reuters.Briefs@thomsonreuters.com;))

BRIEF-Global-Estate Resorts Posts Qtrly Net Income Attributable 343.0 Million Pesos

May 13 (Reuters) – Global-Estate Resorts:

  • QTRLY NET INCOME ATTRIBUTABLE 343.0 MILLION PESOS VERSUS 300 MILLION PESOS

  • QTRLY GROSS REVENUE 1.32 BILLION PESOS VERSUS 1.20 BILLION PESOS

Source text for Eikon: ID:nPSX9slHmt

Further company coverage: GERI.PS

((Reuters.Briefs@thomsonreuters.com;))

BRIEF-Alsons Consolidated Resources Posts Qtrly Net Income Attributable 90.2 Million Pesos

May 13 (Reuters) – Alsons Consolidated Resources:

  • QTRLY NET INCOME ATTRIBUTABLE 90.2 MILLION PESOS VERSUS 92.9 MILLION PESOS

  • QTRLY GROSS REVENUE 2.67 BILLION PESOS VERSUS 2.16 BILLION PESOS

Source text for Eikon: ID:nPSX6hkFRL

Further company coverage: ACR.PS

((Reuters.Briefs@thomsonreuters.com;))

BRIEF-Asian Terminals Posts Qtrly Net Income Attributable 601.2 Million Pesos

May 13 (Reuters) – Asian Terminals:

  • QTRLY NET INCOME ATTRIBUTABLE 601.2 MILLION PESOS VERSUS 562.7 MILLION PESOS

  • QTRLY GROSS REVENUE 2.90 BILLION PESOS VERSUS 2.72 BILLION PESOS

Source text for Eikon: ID:nPSXZ7Zvt

Further company coverage: ATI.PS

((Reuters.Briefs@thomsonreuters.com;))

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