Gold eases, but holds above $1,200 as caution prevails

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Gold eased for a second straight session on Monday as the dollar edged higher, but the metal remained underpinned above $1,200 an ounce as caution in financial markets prompted investors to channel money into bullion.

Spot gold had fallen 0.3 percent to $1,223.70 an ounce by 0035 GMT, after declining 0.3 percent on Friday.

The metal jumped to its highest in a year earlier this month on turmoil in the stock markets and concerns over the global economy, but posted small losses last week on profit taking and as equities consolidated.

Bullion was hurt early on Monday by the strength in the dollar, which rose against a basket of major currencies as sterling slid on growing concerns that Britain would quit the European Union.

Gold, however, remains one of the best performing asset of the year with gains of 15 percent as global uncertainties linger.

Source: Reuters

Chinese Stocks Extend Weekly Gain as New Regulator Head Picked

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China’s stocks rose, extending a weekly gain, on speculation the new securities regulator chairman will take steps to boost the world’s second-largest equity market.

The Shanghai Composite Index advanced 1.2 percent to 2,894.89 at 9:31 a.m. local time, led by commodity producers and financial companies. The benchmark measure climbed 3.5 percent last week, the most in two months. Developers gained after the government said it will cut taxes on home transactions. The Hang Seng China Enterprises Index climbed to a one-month high.

Liu Shiyu is assuming oversight of the world’s second-largest stock market in the wake of last summer’s slump that saw Xiao Gang criticized for mismanagement. Liu was previously chairman of Agricultural Bank of China Ltd. and was a deputy governor at the People’s Bank of China before that. The reshuffle comes before the nation’s Communist leaders are due to meet next week to set out a new five-year economic plan.

Source: Bloomberg

Asian Stocks Decline After Biggest Weekly Rally in Four Years

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Most Asian stocks fell, after the biggest weekly rally in four years, as oil held declines and a stronger yen weighed on Japanese shares.

About three shares dropped for each that rose on the MSCI Asia Pacific Index, which lost 0.1 percent to 119.50 as of 9:10 a.m. in Tokyo after jumping 5.9 percent last week. Santos Ltd. slid 2.7 percent in Sydney as U.S. oil traded below $30 a barrel. HSBC Holdings Plc and BHP Billiton Ltd. are scheduled to post earnings this week, with financial companies and commodity firms among the biggest laggards this year, as investors question the ability of central banks to aid ailing economies amid forecasts for stagnant global growth.

Japan’s Topix index lost 0.7 percent. The yen traded at 112.55 per dollar after climbing 0.6 percent last week, its third straight weekly advance.

Australia’s S&P/ASX 200 Index added 0.4 percent and South Korea’s Kospi index retreated 0.2 percent. New Zealand’s S&P/NZX 50 Index lost 0.4 percent. Markets in Thailand and Sri Lanka are closed for holidays.

Futures on Hong Kong’s Hang Seng Index foreshadowed declines of 0.6 percent, with contracts on the Hang Seng China Enterprises Index, a gauge of mainland stocks listed in the city, down 0.9 percent at the end of last week. FTSE China A50 Index futures added 0.1 percent.

Source: Bloomberg

apanese Stocks Drop After Last Week Gains Amid Stronger Yen

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Japanese stocks fell, after posting the biggest weekly gain in six years, as banks and commodities shares slipped while the yen strengthened.

The Topix index declined 1 percent to 1,278.96 as of 9:05 a.m. in Tokyo, following last week’s advance of 8 percent, its best weekly rally since 2009. The Nikkei 225 Stock Average lost 0.9 percent to 15,816.83. The yen traded at 122.54 per dollar, close to its strongest level in a week. The greenback fell even as data on Friday showed U.S. consumer prices in January rose the most in four years.

Despite last week’s gain, the recent rally has recouped less than a third of this year’s losses. The gauge is still down 17 percent for 2016. With equities tumbling across the global this year, sending the Topix to a 15-month low on Feb. 12, the yen has been seen as a haven. Investors have sent the currency up almost 7 percent this year.

Source: Bloomberg