Berliner Tageblatt - Markets mostly rise as rate cut hopes bring Christmas cheer

Data showing US unemployment rising and inflation slowing gave the Federal Reserve more room to lower borrowing costs and provided some much-needed pep to markets after a recent swoon.

That was compounded by a blockbuster earnings report from Micron Technologies that reinvigorated tech firms.

The sector has been the key driver of a surge in world markets to all-time highs this year owing to huge investments into all things artificial intelligence but that trade has been questioned in recent months, sparking fears of a bubble.

With few catalysts to drive gains on Wall Street, tech was again at the forefront of buying Monday, with chip titan Nvidia and Tesla leading the way.

"The amount of money being thrown towards AI has been eye-watering," wrote Michael Hewson of MCH Market Insights.

He said the vast sums pumped into the sector "has inevitably raised questions as to how all of this will be financed, when all the companies involved appear to be playing a game of pass the parcel when it comes to cash investment".

"These deals also raise all manner of questions about how this cash will generate a longer-term return on investment," he added.

"With questions now being posed... we may start to get a more realistic picture of who the winners and losers are likely to be, with the losers likely to be punished heavily."

Asian markets enjoyed a bright start though some stuttered as the day wore on.

Sydney, Seoul, Shanghai, Sydney, Singapore, Taipei, Wellington, Bangkok and Jakarta were all higher, while Tokyo and Mumbai were flat.

Hong Kong and Manila dipped.

Precious metals were also pushing ever higher on the back of expectations for more US rate cuts, which makes them more attractive to investors.

Bullion jumped to a high above $4,497 per ounce, while silver was just short of $70 an ounce, with the US blockade against Venezuela and the Ukraine conflict adding a geopolitical twist.

"The structural tailwinds that have driven both of these to record highs this year persist, be it central bank demand for gold or surging industrial demand for silver," said Neil Wilson at Saxo Markets.

"The latest surge comes after soft inflation and employment readings in the US last week, which reinforced expectations around the Fed's policy easing next year. Geopolitics remains a factor, too."

On currency markets, the yen extended gains after Japan's Finance Minister Satsuki Katayama flagged authorities' powers to step in to support the unit, citing speculative moves in markets.

The yen suffered heavy selling after Bank of Japan boss Kazuo Ueda held off signalling another rate hike anytime soon following last week's increase.

"The moves (on Friday) were clearly not in line with fundamentals but rather speculative," Katayama told Bloomberg on Monday.

"Against such movements, we have made clear that we will take bold action, as stated in the Japan–US finance ministers' joint statement," she added.

Oil prices dipped, having jumped more than two percent Monday on concerns about Washington's measures against Caracas.

The United States has taken control of two oil tankers and is chasing a third, after President Donald Trump last week ordered a blockade of "sanctioned" tankers heading to and leaving Venezuela.

- Key figures at around 0700 GMT -

Tokyo - Nikkei 225: FLAT at 50,412.87 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 25,764.84

Shanghai - Composite: UP 0.1 percent at 3,919.98 (close)

Dollar/yen: DOWN at 156.08 yen from 156.99 yen on Monday

Euro/dollar: UP at $1.1774 from $1.1756

Pound/dollar: UP at $1.3487 from $1.3458

Euro/pound: DOWN at 87.30 pence from 87.35 pence

West Texas Intermediate: DOWN 0.4 percent at $57.77 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $61.83 per barrel

New York - Dow: UP 0.5 percent at 48,362.68 (close)

London - FTSE 100: DOWN 0.3 percent at 9,865.97 (close)

F.Pavlenko--BTB