ZCZC
BCN-03
ASIA-MARKETS
Asian markets post fresh gains, China growth slows to 28-year low
HONG KONG, Jan 21, 2019 (BSS/AFP) – Asian markets on Monday built on last
week’s rally as investors cheered a report that China had offered to
eliminate its massive trade surplus with the United States, while data showed
Chinese economic growth hit forecasts in 2018.
Regional equities picked up where they finished Friday after Bloomberg
said Beijing had pledged to ramp up spending on US goods over the next five
years.
While there was some scepticism over the offer, observers said it
indicated that talks between the economic superpowers were heading in the
right direction.
The news provided further support to shares, which were already being
buoyed by hopes the two sides would be able to resolve the tariffs spat,
which has hammered world markets for almost a year.
China’s top economics negotiator is due to visit Washington later this
month for more talks as the end of a 90-day truce agreed between Donald Trump
and Xi Jinping draws closer.
“For now markets are going ahead with the growing perception that there is
a lot of willingness by both parties to make a deal,” said National Australia
Bank senior strategist Rodrigo Catril.
“But as the March 1st deadline approaches the market is also likely to
demand more concrete evidence that a deal looks more likely than not.”
In early trade, Hong Kong and Shanghai were both up 0.6 percent, while
Tokyo ended the morning 0.5 percent higher.
Sydney rose 0.3 percent, Singapore added 0.5 percent and Taipei put on 0.7
percent with Wellington and Jakarta also up.
– May’s Plan B –
China released figures showing the economy expanded at the 6.6 percent
clip expected in an AFP survey but that represented its slowest pace since
1990, when it was hit by outrage over the Tiananmen Square crackdown a year
earlier.
And in a sign of the battle Beijing faces in getting things back on track,
October-December growth came in at 6.4 percent, the worst quarterly figure
since the global financial crisis 10 years ago.
MORE/HR/0928
ZCZC
BCN-04
ASIA-MARKETS 2 LAST HONG KONG
The data come as China struggles to address a chronic debt burden while at
the same time fighting the damaging trade war with the US.
It also reinforces the need for officials to press on with stimulus
measures, such as the tax cuts announced last week and moves to make it
easier for banks to lend.
“While the government is putting policy responses in place, we anticipate
that these will need to be ramped up over the course of the year,” Stephen
Chang, portfolio manager for Asia at Pacific Investment Management, said in a
note.
Next on traders’ radar is British Prime Minister Theresa May’s revised
plan for exiting the European Union, with her original proposal left in
tatters after being roundly rejected by MPs last week.
Britain will leave the European Union on March 29 without a deal unless
MPs can force a delay or get their act together in time and come up with an
alternative plan that Brussels is also happy with.
Despite the uncertainty, the pound was holding up against the dollar in
Asian trade.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: Up 0.5 percent at 20,758.74 (break)
Hong Kong – Hang Seng: UP 0.6 percent at 27,254.36
Shanghai – Composite: UP 0.6 percent at 2611.56
Euro/dollar: UP at $1.1378 from $1.1365 at 2200 GMT
Pound/dollar: DOWN at $1.2863 from $1.2867
Dollar/yen: DOWN at 109.60 yen from 109.72
Oil – West Texas Intermediate: DOWN 27 cents at $53.53 per barrel
Oil – Brent Crude: DOWN 38 cents at $62.32 per barrel
New York – DOW: UP 1.4 percent at 24,706.35 (close)
London – FTSE 100: UP 2.0 percent at 6,968.33 (close)
BSS/AFP/HR/0930