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ASIA-MARKETS-UPDATE
Asian markets cautious after US volatility
HONG KONG, Oct 10, 2018 (BSS/AFP) – Asian markets were cautiously
higher Wednesday, after a volatile session for US equities and as yields on
Treasury bonds retreated from a seven-year peak.
Tokyo edged up, ending a four-day losing run on bargain buying despite the
higher yen’s dampening impact.
“After four days of falling… Japanese shares are in a good place for
bargain-hunting buys,” Yoshihiro Ito, chief strategist at Okasan Online
Securities, said in a commentary.
Hong Kong added 0.1 percent while Shanghai closed 0.2 percent higher, both
moving back into positive territory for a second day after Monday’s sell-off.
There were also gains in Mumbai, with markets leaping 1.5 percent after
closing at a six-month low on Tuesday, and aviation stocks seeing a boost
after domestic media reports that New Delhi may reduce a jet fuel tax.
“(Indian) markets will continue to be volatile in the coming days and will
offer great long-term buying opportunities,” Soumen Chatterjee, head of
research at Guiness Securities, told Bloomberg News.
There were gains in other Asian markets, with Taiwan up 0.1 percent,
Sydney adding 0.1 percent and Bangkok rising 1.1 percent.
– Eyes on China –
But global markets remained cautious on several fronts.
US and European markets meandered on Tuesday, with investors nervous after
10-year US Treasury bond yields surged above 3.0 percent and the IMF sounded
a cautious note on the global economy.
On Wall Street, the Dow closed down 0.2 percent at 26,430.57 with US
shares facing another day of pressure over higher interest rates.
“Markets continued their tenuous voyage through a pothole-encumbered
landscape, dealing with the fragile US-China relations… and Brexit
developments providing more ambiguity,” said Stephen Innes, head of Asia-
Pacific trading at OANDA.
“It’s no wonder investors have a high level of misgivings.”
MORE/HR/1448
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
Eyes were fixed on the Chinese yuan amid a backdrop of deepening US-China
tensions and a weak yuan, following steps this week from authorities to spur
lending in the economy.
Last week the yuan hit a 19-month low, with growing fears the currency was
sliding towards the psychological milestone of 7 per dollar — a level not
seen since the global financial crisis.
Traders are also waiting for the latest data around new lending and money
supply, which will be closely watched as Beijing strives to support flagging
growth.
Shares in Chinese internet giant Tencent were down for the ninth straight
day, dropping more than 2.6 percent on the back of rumours about a gaming
regulatory crackdown — costing the company its place as one of the world’s
10 biggest companies.
In London, the FSTE 100 dipped 0.2 percent in early trade to its lowest in
six months.
– Key figures around 0830 GMT –
Hong Kong – Hang Seng: UP 0.1 percent at 26,193.07 (close)
Shanghai – Composite: UP 0.2 percent at 2,725.84 (close)
Tokyo – Nikkei 225: UP 0.2 percent at 23,506.04 (close)
London – FTSE 100: DOWN 0.2 percent at 7,223.31
Euro/dollar: DOWN at $1.1493 from $1.1494 at 2100 GMT on Tuesday
Pound/dollar: UP at $1.3161 from $1.3144
Dollar/yen: UP at 113.15 from 112.95 yen
Oil – West Texas Intermediate: DOWN 21 cents at $74.73 per barrel
Oil – Brent Crude: DOWN 26 cents at $84.74 per barrel
New York – Dow Jones: DOWN 0.2 percent at 26,430.57 (close)
BSS/AFP/HR/1450