Japanese Bonds Face Renewed Test With 40-Year Sale After Selloff

Demand for Japanese government bonds is set for a test Wednesday with the first sale of super-long debt since an auction last week sent jitters through global markets as yields raced to record highs.
The Ministry of Finance's 40-year debt sale comes at a time when long-term borrowing costs have also surged in other major economies, including the US. Japan's super-long bonds became increasingly unstable after last week's 20-year debt auction drew the weakest demand in more than a decade. That put pressure on the 40-year as well as the 30-year maturity, which saw yields jump to their highest levels since they were first sold.

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27 minutes ago

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Should Weakness in SUTL Enterprise Limited's (SGX:BHU) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?

SUTL Enterprise (SGX:BHU) has had a rough month with its share price down 3.4%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study SUTL Enterprise's ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SUTL Enterprise is: 13% = S$8.4m ÷ S$66m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every SGD1 of its shareholder's investments, the company generates a profit of SGD0.13. Check out our latest analysis for SUTL Enterprise Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, SUTL Enterprise's ROE looks acceptable. Especially when compared to the industry average of 7.0% the company's ROE looks pretty impressive. This probably laid the ground for SUTL Enterprise's significant 24% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared SUTL Enterprise's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 42% in the same period. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if SUTL Enterprise is trading on a high P/E or a low P/E, relative to its industry. The high three-year median payout ratio of 52% (implying that it keeps only 48% of profits) for SUTL Enterprise suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders. Moreover, SUTL Enterprise is determined to keep sharing its profits with shareholders which we infer from its long history of eight years of paying a dividend. On the whole, we do feel that SUTL Enterprise has some positive attributes. The company has grown its earnings moderately as previously discussed. Still, the high ROE could have been even more beneficial to investors had the company been reinvesting more of its profits. As highlighted earlier, the current reinvestment rate appears to be quite low. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of SUTL Enterprise's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data

Bloomberg

36 minutes ago

• Bloomberg

Japan PMI Pickup Points to Front-loading Ahead of US Tariff Jump

Japan's manufacturing activity expanded for the first time in more than a year in June in a likely sign of front-loading of output ahead of a scheduled increase in US tariffs next month. The au Jibun Bank purchasing managers' index of manufacturing activity rose to 50.4 from 49.4 in May, crossing the boom-or-bust 50 threshold for its highest reading since May 2024, according to data released Monday by S&P Global. The index for services also increased to 51.5 from 51.0.

Yahoo

36 minutes ago

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Oil prices spike after US strikes on Iran

Oil prices surged and Asian markets traded lower on Monday on concerns of disruption to energy markets after US air strikes on Iran's nuclear facilities. The dollar strengthened as traders assessed the weekend's events, with Iran threatening US bases in the Middle East as fears grow of an escalating conflict in the volatile region. Iran is the world's ninth-biggest oil-producing country, with output of about 3.3 million barrels per day. It exports just under half of that amount and keeps the rest for domestic consumption. If Tehran decides to retaliate, observers say one of its options would be to seek to close the strategic Strait of Hormuz -- which carries one-fifth of global oil output. When trading opened on Monday, Brent and the main US crude contract WTI both jumped more than four percent to hit their highest price since January. They pared these gains however and later in the morning Brent was up 2.1 percent at $75.43 per barrel and WTI was 2.1 percent higher at $78.64. Economists at MUFG warned of "high uncertainty of the outcomes and duration of this war", publishing a "scenario analysis" of an oil price increase of $10 per barrel. "An oil price shock would create a real negative impact on most Asian economies" as many are big net energy importers, they wrote, reflecting the market's downbeat mood. Tokyo's key Nikkei index was down 0.6 percent at the break, with Hong Kong losing 0.4 percent and Shanghai flat. Seoul fell 0.7 percent and Sydney was 0.8 percent lower. - 'Extreme route' - The dollar's value rose against other currencies but analysts questioned to what extent this would hold out. "If the increase proves to be just a knee-jerk reaction to what is perceived as short-lived US involvement in the Middle-East conflict, the dollar's downward path is likely to resume," said Sebastian Boyd, markets live blog strategist at Bloomberg. US Defense Secretary Pete Hegseth said Sunday that the strikes had "devastated the Iranian nuclear programme", though some officials cautioned that the extent of the damage was unclear. It comes after Israel launched a bombing campaign against Iran earlier this month. Chris Weston at Pepperstone said Iran would be able to inflict economic damage on the world without taking the "extreme route" of trying to close the Strait of Hormuz. "By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas," he wrote. At the same time, "while Trump's primary focus will be on the Middle East, headlines on trade negotiations could soon start to roll in and market anxieties could feasibly build". - Key figures at around 0230 GMT - Brent North Sea Crude: UP 2.1 percent at $75.43 per barrel West Texas Intermediate: UP 2.1 percent at $78.64 per barrel Tokyo - Nikkei 225: DOWN 0.6 percent at 38,175.63 (break) Hong Kong - Hang Seng Index: DOWN 0.4 percent at 23,426.02 Shanghai - Composite: FLAT at 3,360.97 Euro/dollar: DOWN at $1.1505 from $1.1516 on Friday Pound/dollar: DOWN at $1.3434 from $1.3444 Dollar/yen: UP at 146.46 yen from 146.13 yen Euro/pound: DOWN at 85.63 pence from 85.66 pence New York - Dow: UP 0.1 percent at 42,206.82 (close) London - FTSE 100: DOWN 0.2 percent at 8,774.65 (close) jug-kaf/pst Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data