
Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.
MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.
The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.
Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.
S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.
Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.
US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.
"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.
Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.
The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.
Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.
MORE STIMULUS
Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.
That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.
Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.
US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".
Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.
Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.
"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.
The dollar index dropped 0.3 percent to its lowest level in nearly two years.
The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.
Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.
Oil prices dipped on worries about the worsening Sino-US relations.
Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.
Comments
Muslims worship allah and don't want to say vandemataram.
Christians worship Jesus only still they do not have problem in singing vandemataram.
Bhudhist worship bhudha only still they do not have problem in singing vandemataram.
Jains worship mahavir only still they do not have problem in singing vandemataram.
why it is only problem for muslim to sing vandemataram.-
Please everyone try to know, that Islam has codes to follow. Islam strongly and strictly has to follow the God’s rule. No human interference is allowed to complement to God’s rules. Islam has 2books. Quran and Hadees the sayings of the prophet Muhammad (peace upon him PBU)
Muslims are not allowed to introduce new things which are contradictory to Islam.
Because Islam is flexible enough to allow allowable things. These things will suffice the needs. No need to invent the wheels. Islam is purely based on 1God and Message came thru prophet Muhammad PBU.
This is called 1ness of God. Nothing should be worshipped other than 1 the true God. We worship only the God and we seek all our requirements with this 1God. This is the important message. Anyone contradicting and violating it by worshiping others or praying others for our requirements is a unforgivable offense which leads to hell fire. it is command to us to be careful of this error.
30% of the teaching of Islam is repeatedly discouraging to worship or attribute others with the God. What a serious teaching we have to be careful of. This is repeated in Quran and hadees. Nothing is allowed even in a minute level to equate into the Quality of the God. This is oneness of God. Things against is called as doing shirk(associating to the God). May the God save us from this error.
1.VANDE MATARAM : We can not sing this song because its meaning contradicts the above oneness of the God.
2. Celebrating other festival
Muslims are allowed to observe 2eids (Eid ul Fitr. This is after end of Ramadan fasting, 2nd is Eid us Adha)
Even we don’t celebrate the birth day of anyone including our prophet.
Patriotism
We are not against national interest. We have to fight for the right of our nation as long as we are not offending others. If required we are commanded to fight and sacrifice our lives. What a great teaching. Is it in taught in any other books.
So we don’t celebrate even National independence day. No need for celebration but we are ready to sacrifice to defend the nation.
Mr bogi , from last year rss nagpur headquartes started hoisting indian flag , from 1947 our madrasas hoisting clelebrating indipendence day , you sangis were with british when indians were fighting for freedom , now its time for indians to fight against sangh parivar .
To Yogi and his chela Mohsin: - Do you want the video that I'm Celebrating Ind. Pen Day and Fl-ag hosting in bathroom..........
Mr Yogi's statement is a proof for his trust in minorities, for video recording... Its better to send those Usthads who all attended the MRM meet yesterday in Bantwal constituency.
Yogi ji could you please request your headquarters in Nagpur to hoist national flag above RSS's Saffron flag,
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