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Asian stocks are mixed after Wall Street's best week of the year

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Asian stocks are mixed after Wall Street's best week of the year

Asian stocks were mixed Monday as investors ponder the upcoming meeting of the Federal Reserve, following Wall Street’s best week since November with a slight uptick in U.S. stocks Friday.

U.S. futures were higher while oil prices dropped.

Japan’s benchmark index fluctuated in morning trading. The Nikkei 225 shed 15.50 points to 38,047.17 after data showed the core machinery orders, which are used as a leading indicator of capital spending in the coming six to nine months, fell 1.7% year on year in June.

The U.S. dollar fell to 146.44 Japanese yen from 147.58 yen.

Last week, better-than-expected U.S. retail sales figures boosted market confidence and shifted sentiment regarding potential interest rate cuts by the Federal Reserve in September, which could trigger a sell-off of the yen against the dollar and other major currencies. But still, the dollar-yen exchange rate has been on a downward trend over the past weeks.

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“The recent turmoil in the foreign exchange market isn’t just about the Bank of Japan’s actions … other factors, like signals from the Federal Reserve about possible rate cuts, weak U.S. job market data, and broader global economic uncertainties, have also contributed to the recent turbulence,” Luca Santos, currency analyst at ACY Securities, said in a commentary.

The market’s focus is on Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell will give a speech late in the week and the setting has been home to big policy announcements in the past.

Because the Fed has said its upcoming moves will depend in large part on what data reports at the time say, “it will be difficult for Powell to pre-commit to a particular trajectory at Jackson Hole,” said economists at Deutsche Bank led by Matthew Luzzetti.

But Powell could offer hints about whether the Fed is hoping to merely remove the brakes from the economy through rate cuts or give it an accelerant.

Elsewhere in Asia, Australia’s S&P/ASX 200 rose 0.2% to 7,988.00 and the Kospi in Seoul lost 0.2% to 2,690.83. Hong Kong’s Hang Seng added 1% to 17,611.77, while the Shanghai Composite was up 0.5% to 2,894.57.

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Bangkok’s SET increased 0.8% after data showed the country’s gross domestic product in the second quarter increased 2.3% compared to a year earlier, driven by tourism.

On Friday, the S&P 500 rose 0.2% to 5,554.25 for a seventh straight gain and pulled back within 2% of its all-time high set last month. The Dow Jones Industrial Average gained 0.2% to 40,659.76, and the Nasdaq composite added 0.2% to 17,631.72.

Treasury yields eased in the bond market following mixed reports on the U.S. economy. One showed homebuilders broke ground on fewer projects last month than forecast, which threw some cold water on the market. Optimism had been rising earlier in the week following a flurry of better-than-expected reports on everything from inflation to sales at U.S. retailers.

But a report later in the morning suggested U.S. consumers are feeling better about the economy than expected. That’s a big deal for Wall Street because their spending makes up the bulk of the economy.

Even though confidence rose in the economy’s strength following the strong run of reports, it is still likely slowing under the weight of high interest rates.

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The question is whether the slowdown in growth will overshoot and become a recession. The hope on Wall Street is that an expected cut to interest rates at the Fed’s next meeting in September will help forestall that.

In the bond market, the yield on the 10-year Treasury fell to 3.88% from 3.92% late Thursday. The two-year yield, which more closely tracks expectations for Fed action, fell to 4.05% from 4.10% late Thursday.

In energy trading, benchmark U.S. crude gave up 16 cents to $75.38 a barrel. Brent crude, the international standard, lost 15 cents to $79.53 a barrel.

The euro has been strengthening against the U.S. dollar. On Monday, it cost $1.1040, inching up from $1.1028.

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AP Business Writer Stan Choe contributed to this report.

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A look at some of the contenders to be Iran’s supreme leader after the killing of Khamenei

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A look at some of the contenders to be Iran’s supreme leader after the killing of Khamenei

Iran’s leaders are scrambling to replace Supreme Leader Ayatollah Ali Khamenei, who ruled the country for 37 years before he was killed in the surprise U.S. and Israeli bombardment.

It’s only the second time since the 1979 Islamic Revolution that a new supreme leader is being chosen. Potential candidates range from hard-liners committed to confrontation with the West to reformists who seek diplomatic engagement.

The supreme leader has the final say on all major decisions, including war, peace and the country’s disputed nuclear program.

In the meantime, a provisional governing council composed of President Masoud Pezeshkian, hard-line judiciary chief Gholamhossein Mohseni Ejei and senior Shiite cleric Ayatollah Ali Reza Arafi is guiding the country through its biggest crisis in decades. Foreign Minister Abbas Araghchi said Sunday that a new supreme leader would be chosen early this week.

The supreme leader is appointed by an 88-member panel called the Assembly of Experts, who by law are supposed to quickly name a successor. The panel consists of Shiite clerics who are popularly elected after their candidacies are approved by the Guardian Council, Iran’s constitutional watchdog.

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Khamenei had major influence over both clerical bodies, making it unlikely the next leader will mark a radical departure.

Here are the top contenders.

Mojtaba Khamenei

The son of Khamenei, a mid-level Shiite cleric, is widely considered a potential successor. He has strong ties to Iran’s paramilitary Revolutionary Guard but has never held office. His selection could prove awkward, as the Islamic Republic has long criticized hereditary rule and cast itself as a more just alternative.

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Ayatollah Ali Reza Arafi

Arafi is a member of the provisional government council. The senior Shiite cleric was handpicked by Khamenei to be a member of the Guardian Council in 2019, and three years later he was elected to the Assembly of Experts. He leads a network of seminaries.

Hassan Rouhani

Rouhani, a relative moderate, was president of Iran from 2013 to 2021 and reached the landmark nuclear agreement with the Obama administration that U.S. President Donald Trump scrapped during his first term. Rouhani served on the Assembly of Experts until 2024, when he said he was disqualified from running for reelection. Rouhani criticized it as an infringement on Iranians’ political participation.

Hassan Khomeini

Khomeini is the most prominent grandson of the founder of the Islamic Republic, Ayatollah Ruhollah Khomeini. He is also seen as a relative moderate, but has never held government office. He currently works at his grandfather’s mausoleum in Tehran.

Ayatollah Mohammed Mehdi Mirbagheri

Mirbagheri is a senior cleric popular with hard-liners who serves on the Assembly of Experts.

He was close to the late Ayatollah Mohammad Taghi Mesbah Yazdi, a fellow hard-liner who wrote that Iran should not deprive itself of the right to produce “special weapons,” a veiled reference to nuclear arms.

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During the COVID-19 pandemic, Mirbagheri denounced the closure of schools as a “conspiracy.”

He is currently the head of the Islamic Cultural Center in Qom, the main center for Islamic teaching in Iran.

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US cleared to use British bases for limited strikes on Iranian missile capabilities

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US cleared to use British bases for limited strikes on Iranian missile capabilities

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The U.S. has been cleared to use British bases for limited strikes on Iran’s missile capabilities after Prime Minister Keir Starmer signed off on the plan, and while U.K. Defense Secretary John Healey stated on Sunday Britain had “stepped up alongside the Americans.”

“The only way to stop the threat is to destroy the missiles at source, in their storage depots or the launchers which are used to fire the missiles,” Starmer confirmed in a recorded statement to the nation.

“The U.S. has requested permission to use British bases for that specific and limited defensive purpose,” he said. “We have taken the decision to accept this request.”

The decision came amid escalation across the Middle East in the wake of U.S. and Israeli strikes on Iran and Tehran’s retaliatory missile and drone attacks, raising fears of a broader regional conflict.

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British Prime Minister Keir Starmer signed off on a plan to use British bases for limited strikes on Iranian missile capabilities. (Kin Cheung / POOL / AFP via Getty Images)

On Feb. 28, in the wake of Operation Epic Fury, Starmer confirmed British planes “are in the sky today” across the Middle East “as part of coordinated regional defensive operations to protect our people, our interests and our allies.”

Healey went on to disclose Sunday that two Iranian missiles were fired in the direction of Cyprus, where Britain maintains key sovereign base areas.

The Royal Air Force confirmed that Typhoon jets operating from Qatar as part of the joint U.K.-Qatar Typhoon Squadron successfully intercepted an Iranian drone heading toward Qatar.

About 300 British personnel are stationed at a naval facility in Bahrain, where Iranian missiles and drones struck nearby areas.

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“We’re taking down the drones that are menacing either our bases, our people or our allies,” Healey told “Sunday Morning with Trevor Phillips” on Sky. “We’ve stepped up alongside the Americans. We’ve stepped up our defensive forces in the Middle East. We’re flying those sorties.”

ISRAEL’S LARGEST EVER MILITARY FLYOVER HAMMERS IRANIAN MILITARY TARGETS

British Defense Secretary John Healey stressed that the U.K. had “no part” in the American-Israeli strikes on Iran. (Peter Nicholls/Pool via Reuters)

Healey also made sure to stress that the U.K. had “no part” in the U.S. and Israeli strikes on Iran and insisted all British actions were defensive. “All our actions are about defending U.K. interests and defending U.K. allies,” he said.

When asked if the U.K. would join the U.S. in offensive action, Healey said, “I’m not going to speculate,” according to Sky News.

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Downing Street also confirmed Feb. 28 that Starmer and President Donald Trump had spoken by phone about the “situation in the Middle East,” the BBC reported.

Fox News Digital has reached out to Downing Street for comment.

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Pakistan calls troops, orders 3-day curfew as 24 killed in pro-Iran rallies

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Pakistan calls troops, orders 3-day curfew as 24 killed in pro-Iran rallies

Army deployed and some areas in northern Gilgit-Baltistan region put under curfew after deadly violence over Khamenei’s killing.

Pakistan has called in the military and imposed a three-day curfew in some areas following deadly protests over the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei in a joint United States-Israeli attack on Saturday.

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At least 24 people were killed and dozens injured in clashes between protesters and security forces across the country on Sunday, prompting authorities to tighten security around the US embassy and consulates.

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The curfew was imposed before dawn Monday in the districts of Gilgit, Skurdu, and Shigar in the northern Gilgit-Baltistan region, where at least 12 protesters and one security officer were killed and dozens of others wounded during confrontations, according to an official statement.

Of those, seven were killed in Gilgit, a rescue official said, while six others died in Skardu, a doctor told AFP news agency on Monday.

Thousands of demonstrators on Sunday attacked the offices of the United Nations Military Observer Group in India and Pakistan (UNMOGIP), which monitors the ceasefire along the disputed Himalayan region of Kashmir, and the UN Development Programme in Skardu city.

Protesters also burned a police station and damaged a school and the offices of a local charity in Gilgit, according to officials.

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UN spokesman Stephane Dujarric on Monday said protesters became violent near the UNMOGIP Field Station, which was vandalised.

“The safety and security of UN personnel and premises throughout the region remain our top priority, and we continue to closely monitor the situation,” Dujarric said.

Shabir Mir, a Gilgit-Baltistan government spokesman, said the situation was under control and that the curfew would remain in place until Wednesday. Police chief Akbar Nasir Khan urged residents to stay indoors, citing “deteriorating law and order conditions”.

In the southern port city of Karachi, the country’s commercial hub, 10 people were killed and more than 60 injured during a protest outside the US consulate.

Two additional protesters were killed in the capital, Islamabad, while heading towards the US embassy.

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Pakistani authorities have beefed up security at US diplomatic missions across the country, including around the US consulate building in Peshawar, to avoid any further violence.

The US embassy and its consulates in Karachi and Lahore cancelled visa appointments and American Citizen Services on Monday, citing security concerns.

The federal government warned that the situation could further deteriorate amid large-scale demonstrations condemning Khamenei’s killing on Saturday.

Tehran has responded with a series of drone and missile attacks targeting Israel and US assets in several Gulf countries.

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