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Asia shares track Wall Street rally with US inflation data, Fed in focus

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Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve’s interest rate decision this week.

Investors will be closely monitoring U.S. consumer and producer inflation data on Tuesday and Wednesday respectively for a reading of how well the Fed’s tightening cycle has managed to curb rising prices.

The equity index’s gains partly reflected expectations for the Fed to pause rate hikes for the first time since January 2022, and for both gauges of inflation to come in lower than the prior month, investors and strategists said.

“Overall equity markets reacted positively to expectations the monetary policy cycle may be nearing its peak,” ANZ analysts said in a note. “U.S. markets are now pricing a 72% probability that the Federal Reserve Monetary Policy Committee (FOMC) will hold rates at this week’s meeting.”

European markets were set for a higher open, with pan-region up 0.69%, German rising 0.68% and futures advancing 0.41%.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.8% while U.S. stock futures – the – rose 0.22%.

Japan’s benchmark index surged to a fresh three-decade peak, led higher by technology shares on expectations of a flood of investment in chip-related companies. The Nikkei climbed for a third-straight session, up 1.89% in afternoon trade and set for the highest close since July 1990.

Australian shares were up 0.18%.

China’s stocks regained some lost ground after the central bank on Tuesday lowered a short-term policy lending rate in a bid to restore market confidence. But economic worries and geopolitical risks limited gains as recent Chinese economic data has shown subdued demand, weakening investor sentiment.

“I am afraid China’s monetary policy may become increasingly ineffective, due to low confidence and weak loan demand,” said Wang Qi, CEO of asset manager MegaTrust Investments. “While it’s good to see more liquidity being pumped into the system, whether the private sector will leverage up remains to be seen.”

China’s blue-chip CSI300 index edged up 0.11% in afternoon trade. Hong Kong’s added 0.23%.

On Monday, the and the Nasdaq rallied to their highest closing levels since April 2022.

Lifted by gains in market heavyweights Amazon (NASDAQ:), Apple (NASDAQ:) and Tesla (NASDAQ:), the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants.

The S&P 500 climbed 0.93% to end the session at 4,338.93 points. The Nasdaq gained 1.53%, while the rose 0.56%.

While the Fed is expected to keep rates steady, surprise rate hikes by the Reserve Bank of Australia and the Bank of Canada last week have kept investors alert to the idea of prolonged tightening cycles.

The European Central Bank will deliver its rate decision on Thursday with analysts expecting it to raise rates by 25 basis points (bps) and to signal that there is more ground to cover. But the Bank of Japan, which will announce its plan on Friday, is expected to maintain its ultra-loose policy.

In U.S. Treasuries, the yield on benchmark reached 3.7299%, compared with the U.S. close of 3.765% on Monday. The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 4.5605% compared with a U.S. close of 4.592%.

In currencies, the , which measures the greenback against a basket of major currencies, fell 0.21% to 103.36, while the euro was up 0.3% on the day at $1.0792.

The dollar dropped 0.1% against the yen to 139.46.

ticked up 0.33% to $67.34 a barrel. rose to $72.2 per barrel.

Gold was slightly higher. was traded at $1960.29 per ounce.

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Comet fragment lights up sky over Spain and Portugal ‘like a movie’

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By Catarina Demony and Ana Cantero

LISBON (Reuters) – A bright comet fragment lit up the skies over parts of Spain and Portugal late on Saturday, according to the European Space Agency (ESA), with one Lisbon resident saying the dazzling display “felt like a movie”.

On Sunday morning, the ESA shared on X a video captured by its “fireball camera” of what it described as a “stunning meteor” over the skies of the western Spanish city of Caceres, near the Portuguese border.

But it later said it appeared to be a “small piece of a comet” and not a meteor, estimating it flew over Spain and Portugal at a speed of 45 km (28 miles) per second before burning up over the Atlantic.

“The likelihood of any meteorites being found is very low,” the ESA said.

In both countries, videos shot in several cities and towns went viral on social media, showing the object crossing the night sky at high speed and illuminating it in bright tones of blue and green.

The Spanish Calar Alto astronomical observatory also said a preliminary analysis by Andalusia’s Institute of Astrophysics revealed the object had a “cometary origin”.

During a concert in the Portuguese city of Barcelos, the object was filmed streaking across the sky as the singer performed. Another video showed the skies of Porto, Portugal’s second biggest city, turning bright for a few seconds.

Many contacted emergency services to report what happened. A spokesperson for the Spanish Emergency service 112, in Madrid, told Europa Press news agency it had received several calls.

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Lisbon resident Bernardo Taborda, 31, told Reuters he was walking around the city with friends when the sky suddenly turned bright green: “It almost looked like daylight … we all looked back and saw it.”

“It felt like a movie, we all looked at each other and we were stunned,” Taborda said. “It was amazing.”

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Helicopter carrying Iran’s President Raisi crashes in mountains, official says

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By Parisa Hafezi and Elwely Elwelly

DUBAI (Reuters) -A helicopter carrying Iranian President Ebrahim Raisi and his foreign minister crashed on Sunday as it was crossing mountain terrain in heavy fog, an Iranian official told Reuters, and rescuers were making their way to the site of the incident.

The official said the lives of Raisi and Foreign Minister Hossein Amirabdollahian were “at risk following the helicopter crash”, which happened on the way back from a visit to Iran’s border with Azerbaijan.

“We are still hopeful but information coming from the crash site is very concerning,” said the official, speaking on condition of anonymity.

The bad weather was complicating rescue efforts, the state news agency IRNA reported. The chief of staff of Iran’s army ordered all the resources of the army and the elite Revolutionary Guard to be put to use in the search and rescue operations.

State TV stopped all its regular programming to show prayers being held for Raisi across the country and, in a corner of the screen, live coverage of rescue teams deployed on foot in the mountainous area in heavy fog.

The rescue teams were expected to reach the site of the crash later on Sunday evening, state TV reported.

Raisi, 63, was elected president in 2021, and since taking office has ordered a tightening of morality laws, overseen a bloody crackdown on anti-government protests and pushed hard in nuclear talks with world powers.

In Iran’s dual political system, split between the clerical establishment and the government, it is the supreme leader rather than the president who has the final say on all major policies.

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But many have seen Raisi as a strong contender to succeed his 85-year-old mentor, Supreme Leader Ayatollah Ali Khamenei, who has strongly endorsed Raisi’s main policies.

Raisi’s victory in a closely managed election in 2021 brought all branches of power under the control of hardliners, after eight years when the presidency had been held by pragmatist Hassan Rouhani, who negotiated a nuclear deal with Washington.

However, Raisi’s standing may have been dented by widespread protests against clerical rule and a failure to turn around Iran’s economy, hamstrung by Western sanctions.

Raisi had been at the Azerbaijani border to inaugurate the Qiz-Qalaisi Dam, a joint project.

Interior Minister Ahmed Vahidi told state TV only that one of the helicopters in a group of three had come down in the incident, and that authorities were awaiting further details.

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Sean ‘Diddy’ Combs apologizes after video depicting attack on ex-girlfriend

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By Katharine Jackson

(Reuters) – Music mogul Sean “Diddy” Combs posted an apology to social media on Sunday, two days after the release of hotel surveillance video that appeared to show him attacking his ex-girlfriend.

“I’m truly sorry,” Combs said in a video post on his Instagram page. “My behavior on that video is inexcusable. I take full responsibility for my actions in that video. I’m disgusted. I was disgusted then when I did it. I’m disgusted now.”

Addressing the camera directly, Combs said he had sought therapy and gone into rehab.

In the surveillance video from 2016, which was released by CNN on Friday, the rapper appears to grab R&B vocalist Casandra Ventura as she waits by an elevator in a California hotel. Clad only in a towel, he throws her to the floor, kicking her repeatedly before dragging her toward a hallway, the video shows.

A representative for Combs could not be immediately reached for further comment.

Ventura, who performs under the stage name Cassie, sued Combs in 2023, accusing him of serial physical abuse, sexual slavery and rape during a 10-year professional and romantic relationship in which he controlled her through intimidation, drugs and alcohol. The parties settled the matter the following day for undisclosed terms. Representatives for Combs said at the time the settlement was “in no way an admission of wrongdoing.”

The lawsuit was one of at least four civil complaints in recent months that leveled sexual assault allegations against Combs.

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The U.S. Department of Homeland Security said in March it had opened an investigation into the hip-hop star and searched his homes in the Miami area and in Los Angeles; it provided no details of the nature of the investigation.

Local television images of the search showed an armored vehicle and officers carrying rifles outside Combs’ Los Angeles home. Authorities detained some people at the property with their hands bound by zip ties.

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