US jobless claims rise to 22m in four weeks

The number of Americans applying for unemployment benefits fell last week to a still-massive 5.25 million, capping four weeks of pandemic-related shutdowns that erased more than 10 years of job creation.

Initial jobless claims in the week ended April 11 followed 6.62 million the prior week, according to US Labor Department figures last night. The four-week sum of 22 million filings compares with 21.5 million jobs added during the expansion that began in June 2009.

Federal Reserve Bank of Atlanta President Raphael Bostic said many US businesses will struggle from next month to survive amid the shutdowns and urged both governments and banks to provide relief quickly.

Google parent Alphabet said it is slowing hiring and investment for the rest of the year.

In Hong Kong, the Hang Seng Index fell 138.89 points to 24,006.45 yesterday.

Shares of HSBC (0005) fell 2.22 percent to HK$39.7 while Standard Chartered (2888) dropped 3.55 percent. That came after the two lenders and other eight banks reportedly have a combined exposure of at least US$3 billion (HK$23.4 billion) to Singapore's Hin Leong Trading and are in talks with the privately-held oil trader over shoring up its finances. HSBC has the biggest exposure to Hin Leong at about US$600 million.

Oil prices rose yesterday, with investors hoping that a big build-up in US inventories may mean producers have little option but to deepen output cuts as the pandemic hurts demand. Brent crude rose 4.2 percent to US$28.84 a barrel last night.

Asia's economic growth this year will grind to a halt for the first time in 60 years, as the outbreak takes an "unprecedented" toll on the region's service sector and major export destinations, the International Monetary Fund said.

Sovereign funds and major institutional investors around the world dumped shares for cash. Singapore state investment company Temasek has been selling stakes in companies from its portfolio recently, raising a total of US$779 million earlier this month, while Korea conglomerate SK Group offloaded all its 10.25 stake in China Gas (0384).