- Samsung profit tops 100 trillion won for first time, but shares slip
- Gold rebounds from two-month low, but Pepperstone says $4,275 break needed
- Japan’s answer to FedWatch: TFX launches BoJ meeting-by-meeting rate futures
- China bucks global bond rout as 10-year yield touches 1.7%
- PBOC sets USD/ CNY reference rate for today at 6.7367 (vs. estimate at 6.7254)
- Ethereum researchers urge crypto holders to prepare for AI-driven threats to wallet security
- Chevron and Shell shut in output at nine US Gulf facilities as storm Isaias nears
- Is Japan overtaking the US in crypto? The law, the tax cut and the gap, what to watch.
- UBS sees S&P 500 at 8,400 by June as AI and earnings extend record rally
- Axios: Pentagon orders readiness for possible Iran strikes as Trump weighs timing
- Reuters poll: 37% of Japan firms see oil volatility as biggest risk to earnings
- China markets reopen after Golden Week: five things to watch for stocks and gold
- NY Fed survey: US one-year inflation expectations jump to 3.9%, highest since May 2023
- One year after crypto’s $20 billion liquidation day, the lesson for Bitcoin traders
- ICYMI: Fed minutes: most officials see another hike by year end after unanimous rise to 3.75-4%
- Micron could triple to $3,000, says D.A. Davidson, as stock trades at six times earnings
- WSJ: Broadcom seeks over $50 billion for OpenAI chips as Oracle, SpaceX chase AI debt deals
- Goldman Sachs: Four takeaways as AI’s challenge shifts from demand to delivery
- War escalation: Tanker hit by multiple projectiles 51 nautical miles off Qatar, casualties reported
- US stocks retreat after record closes
Summary:
- Oil prices rose on geopolitical risk after reports the US military has been ordered to prepare for a possible resumption of strikes on Iran; no final decision has been made
- A tanker north of Qatar was struck by multiple projectiles, causing casualties, according to the UK Maritime Trade Operations agency
- Yemen’s Houthis said they attacked Riyadh’s King Khalid International Airport with a ballistic missile; Saudi Arabia has not confirmed the claim
- Japan’s Nikkei 225 fell 1% and the Topix 1.5%, a second day of losses, led by trading houses, banks and materials
- South Korea’s Kospi fell 1%; Samsung shares declined despite record preliminary quarterly profit
- Gold rebounded towards $4,140, Treasuries eased slightly after a strong 10-year auction, and USD/JPY moved higher
Oil and the Middle East
Oil prices moved higher during the Asian session as investors weighed a cluster of Middle East risks. Axios reported that the Pentagon has instructed US Central Command to complete preparations for a possible resumption of major combat operations in Iran, potentially before the US midterm elections, although no final decision has been made. President Donald Trump also said he was not keen on a deal with Iran.
Shipping risks in the Gulf intensified. A tanker about 51 nautical miles north of Madinat ash Shamal in Qatar was struck by multiple projectiles, with casualties reported, the UK Maritime Trade Operations agency said.
Yemen’s Iran-aligned Houthi movement said on Thursday it had attacked King Khalid International Airport in Riyadh with a ballistic missile. The claim came hours after Saudi Arabia said a midweek attack on the same airport had killed one person. There was no immediate confirmation from Saudi Arabia of the latest attack.
Supply concerns also emerged in the US, where Chevron and Shell began shutting in production at Gulf of Mexico facilities ahead of Tropical Storm Isaias.
Japan
Japanese stocks fell for a second session as a Wall Street sell-off and higher oil prices revived inflation concerns, with the market having traded recently near record highs. The Nikkei 225 fell 1% and the broader Topix lost 1.5%. Cyclical sectors led the decline, notably trading houses, banks and materials.
Nomura said AI and semiconductor stocks, along with steelmakers and nonferrous metal producers, could remain under selling pressure. It added that solid domestic earnings prospects should limit further losses, making a repeat of Wednesday’s sharp sell-off unlikely. A Reuters survey published on Thursday found that more than a third of Japanese companies see oil price volatility as the biggest risk to their earnings.
South Korea
The Kospi fell 1%. Samsung Electronics estimated its third-quarter operating profit at about 107 trillion won, its first quarter above 100 trillion won and ahead of consensus, but its shares fell as some investors had looked for more.
Rates and currencies
US Treasuries slipped by 4 ticks after yields fluctuated with oil prices on Wednesday, when a strong 10-year auction provided support. Fed minutes released on Wednesday showed most officials see another rate hike as likely by year end. The US dollar opened slightly lower before returning to little changed, while USD/JPY traded higher.
Gold
Gold rebounded towards $4,140 an ounce as the dollar eased from an 18-month high, recovering from Wednesday’s two-month low. Traders are pricing an 80% chance of a Fed hike in December, according to CME’s FedWatch tool, the prospect of higher rates weighing on gold today.
In Crypto, two of Ethereum’s most senior researchers have warned that rapid advances in AI-driven mathematics could undermine the cryptography that protects crypto wallets, possibly much sooner than the industry has planned for.
This article was written by Eamonn Sheridan at investinglive.com.