Business
Asia shares rise to two week highs over Crimea crisis and Upbeat U.S. data
TOKYO – Wednesday saw Asian shares raced to two week high over the disturbing concerns over the Ukraine/Crimea crisis and the upbeat U.S. data.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.1 percent to its highest level since March 11, while Japan’s Nikkei .N225 ticked up 0.3 percent.
European shares are expected to follow suit, with both Germany’s DAX .GDAX and France’s CAC .FCHI seen rising 0.4 percent.
U.S. consumer confidence rose more than expected in March, to its highest level since January 2008 and U.S. house prices increased solidly in January.
The two reports were the latest in a string of positive reads on the U.S. economy, adding more credence to the view that softness earlier this year was related to bad weather and not inherent economic weakness.
The upbeat data helped Wall Street shares rebound after a two-day decline, with the Standard & Poor’s 500 Index .SPX gaining 0.4 percent.
Risk appetite also got a lift from perceptions that geopolitical tensions over Ukraine are easing after a meeting of Western leaders ended with little more than fist-shaking at Russia.
U.S. President Barack Obama and his allies agreed to hold off on more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea.
The news that Moscow’s and Kiev’s foreign ministers had held an impromptu first meeting also led investors to believe the crisis triggered by Russia’s annexation of Crimea is not heading into a wider armed conflict.
“The markets were worried that Russia might invade the southern or eastern part of Ukraine after Crimea. But the chances of that happening seems to be slim now, reducing investors’ risk aversion,” said Kyosuke Suzuki, director of forex at Societe Generale.
Investor relief was palpable in Russia, where the ruble firmed to pre-Crimea crisis levels.
The ruble rose about 1.5 percent on Tuesday against the dollar-euro basket, its biggest gain in 1-1/2 years, to 41.68 to the basket, hitting a one-month high.
The MSCI emerging equities index .MSCIEF also rose to a two-week high, with Brazilian shares .BVSP tapping five-week highs despite a downgrade of Brazil’s credit rating by U.S. rating firm Standard & Poor’s.
Indian shares .BSESN hit a record high and the rupee also rose to an eight-month high on hopes of more foreign investment inflows.
Hopes that Beijing will take steps to bolster its sagging economy underpinned Chinese shares and many markets leveraged to the Asian giant. Brazil and Australia were among the beneficiaries, as well as a host of commodities.
Following a recent run of disappointing Chinese data this year, many economists now expect China’s growth to fall short of the government’s target of 7.5 percent this year in the absence of effective support measures.
“Investors are betting on stimulus because Chinese authorities have done everything they could to achieve the target in the past,” said Sho Aoyama, senior market analyst at Mizuho Securities.
Mainland Chinese shares .SSEC dipped slightly but still held not far from one-month high, even as rumor of insolvency led to a run on small banks amid growing anxiety about potential insolvencies in China as regulators signal greater tolerance for credit defaults.
London copper futures rose to a two-week high of $6,623.75 per tonne on Tuesday, while commodities that had been battered earlier this month — including iron ore and steel — also rebounded from their lows.
The Australian dollar hit four-month high of $0.9200. Other major currencies were stuck in well-worn ranges, with the euro fetching $1.3816 and the yen changing hands at 102.32 yen to the dollar.
Meanwhile, precious metals lost some of their allure as concerns over Ukraine eased and as U.S. short-term rates have risen.
Gold hit a five-week low of $1,305.59 per ounce on Tuesday and last stood at $1,313.20 while silver dropped to seven-week low of $19.78 per ounce.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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