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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.

___

AP Business Writer Stan Choe contributed to this report.

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Top US Senate Democrat to block Trump DOJ nominees over Qatar airplane

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Top US Senate Democrat to block Trump DOJ nominees over Qatar airplane
U.S. Senate Democratic Leader Chuck Schumer on Tuesday vowed to block all of President Donald Trump’s nominees to the Justice Department until the agency reports what it knows about Qatar’s offer to give Trump’s administration a $400 million airplane.
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Self-proclaimed 'king of Germany' arrested in plot to overthrow government

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Self-proclaimed 'king of Germany' arrested in plot to overthrow government

The self-styled “king” of Germany and three of his senior “subjects” were arrested for attempting to overthrow the state, according to media reports. 

Peter Fitzek, 59, was taken into police custody during morning raids conducted Tuesday in seven German states, the BBC reported. 

Fitzek’s group, the Reichsbürger, or “citizens of the Reich,” has also been banned by the government. 

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Peter Fitzek, the self-proclaimed head of the so-called “Kingdom of Germany,” poses for a photo with the kingdom’s constitution in Wittenberg, Germany, Oct. 23, 2023.   (Jens Schlueter/AFP via Getty Images)

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The group’s aim is to establish the Königreich Deutschland, or “Kingdom of Germany.”

“I have no interest in being part of this fascist and satanic system,” Fitzek previously told the news outlet in a 2022 interview.

Reichsbürgers reportedly have their own currency, flag and identification cards and want to set up separate banking and health systems.

The Reichsbürger undermined “the rule of law,” said Alexander Dobrindt, Germany’s interior minister, by creating an alternative state and spreading “antisemitic conspiracy narratives to back up their supposed claim to authority,” the news report states. 

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Fake German currency

Peter Fitzek, the self-proclaimed head of the so-called “Kingdom of Germany,” shows the paper currency he created himself in Wittenberg, Germany, Oct. 23, 2023.  (Jens Schlueter/AFP)

He said the group finances itself through crime. 

Fitzek, who claims to have thousands of “subjects,” denied having violent intentions but also called Germany “destructive and sick.”

In 2022, dozens of people associated with the Reichsbürger were arrested for plotting to overthrow the German government in Berlin. They were accused of planning a violent coup, which included kidnapping the health minister in an effort to create “civil war conditions” to bring down German democracy, according to the BBC. 

Passports and IDs made by a German man accused of trying to overthrow the state

Self-made identity and banking documents of the so-called “Kingdom of Germany” are pictured in Wittenberg, Germany, Oct. 23, 2023. (Jens Schlueter/AFP via Getty Images)

 

Once dismissed as eccentric by critics, the group is now seen within Germany as a serious threat as the far right has grown politically over the past decade, the report said. 

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Costa calls for reforms in Bosnia to ensure EU membership progress

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Costa calls for reforms in Bosnia to ensure EU membership progress
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After his trip to Belgrade, European Council President António Costa visited Sarajevo on Tuesday as part of his Balkans tour. He was given a warm reception upon his arrival before meeting with Bosnia’s presidency.

In a statement, the European Council chief announced that the EU “remains committed” to the country’s European future. He also praised Željka Cvijanović, Denis Bećirović, and Željko Komšić — members of the Western Balkan country’s three-way presidency — for their role in maintaining stability and security in the country and the region.

Recently, tensions have been brewing domestically over the leader of the entity of the Republika Srpska (RS), Milorad Dodik’s actions, which the state-level authorities denounced for undermining the country’s constitutional order.

Western powers and the EU have condemned Dodik for his provocations after he had suggested that the Dayton Agreement, the peace agreement that formally ended the Bosnian War in 1995, had outlived its purpose.

In his statement, Costa underlined the importance of the Dayton accords, set to mark its 30th anniversary this year.

“And this year, on the 30th anniversary of Srebrenica genocide and the Dayton (and) Paris Agreement, I believe that it is an important message to remember,” said Costa.

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Costa also outlined that some reforms are needed to ensure Bosnia remains on the path to EU membership.

“We need the approval of two judiciary laws, the appointment of a chief negotiator, and the adoption of the reform agenda to move towards on the Bosnia and Herzegovina in the European path.”

Bosnia is the only country that does not benefit from the EU’s Growth Plan for the Western Balkans. Costa stressed that implementing these reforms is of paramount importance to ensure that Bosnia’s citizens benefit from the EU plan.

“I would like to see Bosnia and Herzegovina joining the other Western Balkans partners in profiting from all that the European Union has to offer,” the Council president noted.

Costa will next travel to Montenegro and Albania on Wednesday, for meetings with President Jakub Milatović in Podgorica and President Bajram Begaj in Tirana. He’ll conclude his tour with a visit to Skopje in North Macedonia, where he will meet Prime Minister Hristijan Mickoski.

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Additional sources • AP

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