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Asian markets take breather but warnings of more volatility
HONG KONG, Oct 26, 2018 (BSS/AFP) – Asian markets were mixed Friday as
trade tensions and geopolitical worries kept investors from tracking a
rebound on Wall Street, with observers warning of further volatility to come.
Trading floors were a little calmer in early business after a punishing
week that witnessed steep losses across the board, with several indexes
wiping out their year’s gains as the tech and energy sectors took a beating.
New York’s three main indexes provided some solace by posting healthy
gains thanks to some upbeat earnings but they are still down from last
Friday’s close and there is a feeling the bottom has not been found yet.
Analysts said there is a concern that even US markets have succumbed to
the hefty selling pressure, having managed to ride out much of the volatility
this year thanks to the strengthening domestic economy.
However, dealers there are now feeling the pinch from the China-US trade
row and rising interest rates.
“Unlike the previous sell-off in 2018 that tended to hit a sector or two
at a time, the breadth of the latest rout (is) much more pronounced as it is
heavyweight champions of the US markets that are leading the way,” said
Stephen Innes, head of Asia-Pacific trade at OANDA.
“Indeed, this sell-off is entirely different as on top of the mountains of
geopolitical risk, US interest rates are rising quickly and mercilessly
squeezing financial conditions.”
He said markets were seeing intermittent gains because of bargain-buying
and “everyone expects 2019 to be a real stinker”.
And Con Michalakis, chief investment officer at Statewide Super, told
Bloomberg TV: “You’re going to see a lot more volatility. It’s going to be a
feature of this environment.”
In morning trading Hong Kong fell 0.3 percent while Tokyo ended the
morning down 0.2 percent. Shanghai was up 0.3 percent.
Sydney fell 0.1 percent, Singapore dived one percent and Seoul shed 1.3
percent but Wellington, Taipei, Manila and Jakarta were all in positive
territory.
MORE/HR/0924
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Energy firms enjoyed slight gains in Hong Kong and Japan but remain under
pressure as oil prices retreat from their four-year highs seen at the start
of the month, with a jump in US stockpiles and tensions with Saudi Arabia
over the death of a journalist weighing on sentiment.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 21,221.50 (break)
Hong Kong – Hang Seng: DOWN 0.3 percent at 24,929.27
Shanghai – Composite: UP 0.3 percent at 2,612.18
Euro/dollar: DOWN at $1.1363 from $1.1375 at 2100 GMT
Pound/dollar: UP at $1.2819 from $1.2817
Dollar/yen: UP at 112.41 from 112.37 yen
Oil – West Texas Intermediate: DOWN 56 cents at $66.77
Oil – Brent Crude: DOWN 42 cents at $76.47
New York – Dow: UP 1.6 percent at 24,984.55 (close)
London – FTSE 100: UP 0.6 percent at 7,004.10 (close)
BSS/AFP/HR/0925