Stocks
Asian stocks tank after US data fans recession fears
Tokyo led a plunge across Asian equities Monday, while the yen hit a six-month high after weak US jobs data fanned fears of a recession in the world’s top economy and boosted bets on several Federal Reserve interest rate cuts.
The sell-off followed another hefty day of losses on Wall Street, where heavyweight tech firms including Amazon and Microsoft took the brunt owing to worries an AI-fuelled rally this year may have been overdone.
A much-anticipated report Friday showed the US economy added just 114,000 jobs last month, well down from June and far fewer than expected, while the jobless rate rose to the highest level since October 2021.
The news came a day after lacklustre factory data that stoked concerns that Fed officials may have held borrowing costs at more than two-decade highs too long.
That has led to speculation the economy could be in for a hard landing and tip into recession.
Markets are “still reeling from last Friday’s seismic shifts in the global financial landscape”, said Stephen Innes in his Dark Side Of The Boom newsletter.
“The trigger? A US employment report that missed the mark so badly didn’t just drop jaws — it dropped stocks and bond yields while sending volatility and rate cut expectations through the roof.”
He pointed out that “the mood was already souring in Asia” following a disappointing bath of earnings from tech titans such as Tesla and Alphabet as well as a rate hike by the Bank of Japan and more weak Chinese economic data.
“Mix these, and you have the perfect market meltdown recipe.”
The losses in New York were followed in Asia, with Tokyo’s Nikkei tanking more than seven percent at one point, while Taipei and Seoul were also heavily sold.
The selling was also making officials in Tokyo sit up after the Nikkei shed 5.8 percent on Friday — its biggest loss since 2021 during the pandemic. The market is down almost 20 percent from its record high touched just a month ago.
– More Fed cuts on cards? –
Japan’s top government spokesman Yoshimasa Hayashi said it “will continue to stay on its toes and monitor market developments with keen interest”.
“We’re aware there are various evaluations regarding the stocks plunge this time around, and about the status of the Japanese economy, but the government will continue its efforts to completely break free of deflation and to transition to a growth-driven economy.”
The biggest losers were tech firms, with chip titan TSMC losing more than six percent in Taipei, while Seoul-listed Samsung was off more than five percent and SK hynix down around four percent.
Hong Kong and Shanghai dropped, with traders brushing off a set of directives released by China aimed at boosting household consumption in the world’s number two economy.
There were also big losses in Sydney, Singapore, Manila, Jakarta and Wellington.
The yen broke through 145 per dollar for the first time since January as the jobs report ramped up expectations the Fed will slash rates.
The US central bank had signalled after its latest meeting Wednesday that slowing inflation and a softening labour market meant it could cut next month, with traders predicting two or three 25-basis-point reductions before January.
Now there is speculation it will lower rates a full percentage-point in that time.
Taylor Nugent at National Australia Bank said: “The Fed doesn’t meet again until September 18. There is one more payrolls report and two (consumer price indexes) before then.
“It’s hard to imagine they could stop the Fed cutting in September, with interest instead on whether they support a 50-basis-point move and how rapid cuts will be going forward.”
The yen — which just last month hit a nearly four-decade low close to 162 to the dollar — was also boosted by the Bank of Japan’s decision last week to hike interest rates for just the second time in 17 years and suggestion more could be on the way.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 4.6 percent at 34,247.56 (break)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 16,753.94
Shanghai – Composite: DOWN 0.5 percent at 2,891.93
Dollar/yen: DOWN at 145.15 yen from 146.52 yen on Friday
Euro/dollar: UP at $1.0916 from $1.0912
Pound/dollar: DOWN at $1.2785 from $1.2802
Euro/pound: UP at 85.50 pence from 85.22 pence
West Texas Intermediate: UP 0.1 percent at $73.59 per barrel
Brent North Sea Crude: FLAT at $76.81 per barrel
New York – Dow: DOWN 1.5 percent at 39,737.26 (close)
London – FTSE 100: DOWN 1.3 percent at 8,174.71 (close)
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
