The Traderszone Network

SINGAPORE/TOKYO (Reuters) – Asian shares extended a global rally on Friday after upbeat U.S. economic data calmed sentiment, with Chinese stocks jumping for the second day following a rocky start to the week. Wall Street rose sharply overnight thanks to revised U.S. gross domestic product data showing the economy grew faster than initially thought in the second quarter – a reassuring sign amid worries over deepening economic woes in China. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.3 percent.

Wild swings in world financial markets this week have shown how events in China can potentially disrupt the Federal Reserve’s carefully scripted policy plans. The turmoil, triggered by a rout in Chinese markets, also flagged a broader risk that the U.S. central bank may struggle to meet its inflation target until the rest of the world plays along. As they try to nudge U.S. interest rates away from zero, policymakers might have to rethink a basic assumption that solid economic growth and swelling payrolls at home are enough to do the job even as the world’s second-largest economy stutters.

U.S. retailers including Toys R Us are starting to negotiate with their Chinese suppliers to take advantage of lower manufacturing costs after China devalued the yuan, with many saying they want to be ready if currencies in China and other Asian countries drop more against the dollar. Earlier this month, China devalued its tightly controlled currency in an effort to boost growth and help flagging exports. The nearly 2 percent cut on Aug. 11, the most significant downward adjustment to the yuan since 1994, will make imports from China cheaper.

Crude oil futures rose on Friday, adding to their biggest one-day rally in over six years the day before, led by recovering equity markets and news of diminished crude supplies. Brent crude is set for its first weekly gain in two weeks. “A short covering rally, led by crude oil pushed commodities higher across the board.

The U.S. economy grew faster than initially thought in the second quarter on solid domestic demand, showing fairly strong momentum that could still allow the Federal Reserve to hike interest rates this year. Gross domestic product expanded at a 3.7 percent annual pace instead of the 2.3 percent rate reported last month, the Commerce Department said on Thursday in its second GDP estimate for the April-June period.

read more

Hedge fund mogul William Ackman’s Pershing Square Holdings portfolio fell 13.1 percent this month, leaving the fund down 4.3 percent for the year, the firm said on Thursday. The performance numbers cover …

McDonald’s Corp and Tyson Foods both severed ties on Thursday with a Tennessee farm where workers were seen stabbing, clubbing and stomping on chickens in an undercover video shot by animal rights activists. The videotape, which was unveiled by Mercy For Animals at a news conference in Los Angeles, depicts gruesome animal cruelty toward the birds at what the group said was T&S Farm in Dukedom, Tennessee, which was under contract to Tyson Foods (TSN.N).