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SGX, Asian brokers hike trading margins on Brexit volatility fears

Singapore Exchange Ltd (SGXL.SI) said it has raised the amount of cash firms must pledge to cover trading positions due to an expected rise in market volatility linked to Britain's vote on whether to exit the European Union.

Asia's markets will be the first to open in the wake of a landmark referendum on Thursday that will see UK citizens decide whether or not the country should remain a member of the European Union.

Traders expect extreme volatility, especially in currency markets and related currency derivatives contracts, particularly if the "Leave" camp wins.

SGX is the first Asian exchange to publicly confirm increasing trading margins, although several others including the Hong Kong Exchanges and Clearing Ltd (0388.HK) and the Australian branch of London Stock Exchange Group-owned LCH have privately told dealers they may also hike margins or require additional intra-day margin calls, traders told Reuters.

IMF downgrades outlook for US economy

The International Monetary Fund is downgrading its forecast for the U.S. economy this year and says America should raise the minimum wage to help the poor and offer paid maternity leave to encourage more women to work.

In its annual checkup of the U.S. economy, the IMF predicts 2.2 percent growth this year, down from 2.4 per cent in 2015, and lower than the 2.4 per cent growth it forecast in April for this year.

Still, IMF managing director Christine Lagarde, noting low unemployment and strong hiring over the past year, says "the U.S. economy is in good shape." The American economy got off to a slow start this year. A strong dollar hurt exporters by making their goods costlier overseas. Energy companies have also slashed spending due to low oil prices.

BOJ's Kiuchi calls for review of negative rates, inflation goal timing

Dissenting Bank of Japan board member Takahide Kiuchi said the central bank should review its negative interest rate policy, give itself more time to hit its 2 percent inflation target, and warned that the demerits of its massive monetary stimulus were outweighing the benefits.

A prolonged period of ultra-low interest rates, brought about by the BOJ's huge asset purchases, and the adoption of negative rates had destabilized the bond market and damaged the central bank's credibility, Kiuchi said on Thursday.

"The BOJ shouldn't aim at achieving its 2 percent inflation target with monetary policy alone in the short term," he said.

Oil prices were up slightly on Thursday, shrugging off a smaller-than-expected decline in U.S. stockpiles, as the market nervously awaited the result of Britain's "Brexit" vote.

Trading has been choppy in the run up to Thursday's vote on whether Britain leaves or stays in the European Union (EU), although markets appear to have largely priced in a "Remain" vote.

Brent's front-month August contract LCOc1 was up 5 cents at $49.93 a barrel at 0654 GMT. It closed down 74 cents, or 1.5 percent, at $49.88 a barrel on Wednesday.

OPEC petroleum export revenue down by nearly half in 2015

The Organization of the Petroleum Exporting Countries saw petroleum-export revenues fall nearly 46% in 2015, compared with the year before, to $518.2 billion, according to OPEC’s Annual Statistical Bulletin released Wednesday. That was the lowest level since 2005.

Total OPEC crude-oil exports, meanwhile, stood at 23.6 million barrels a day last year, up 1.7% from 2014, with nearly 62% of OPEC's oil exported to the Asia Pacific region, the report said. World oil demand rose by 1.7% to 93 million barrels a day, with the largest increases taking place in Asia Pacific countries such as India and China.

Reference: CNBC,Reuters,MarketWatch