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Most Asian markets rise ahead of China-US trade talks
HONG KONG, Feb 7, 2019 (BSS/AFP) – Asian markets mostly rose Thursday as
regional investors began to return from their Lunar New Year break, though
Tokyo edged lower after a negative lead from Wall Street.
Most trading floors have re-opened but business remains light, with Hong
Kong and Shanghai still closed, while focus turns on the resumption next week
of China-US trade talks in Beijing.
The two sides will try to hammer out a deal to resolve their long-running
tariffs row, with markets broadly hopeful just three weeks before a deadline
that will see the US more than double levies on hundreds of billions of
dollars worth of Chinese goods.
Donald Trump has said he plans to meet his Chinese counterpart Xi Jinping
before the end of the month to put the finishing touches to any deal, which
would be in both countries’ interest as the global economy begins to wobble.
Sydney climbed more than one percent and Wellington put on 0.7 percent
with investors cheered by the prospect of an extended period of low interest
rates.
Seoul edged up 0.1 percent and Singapore put on 0.8 percent with Manila
and Jakarta also well up.
However, Tokyo fell 0.6 percent despite a near 18 percent surge in
SoftBank, its biggest rise in a decade, fuelled by news of a $5.5 billion
share buyback using cash from last month’s listing of its mobile phone unit.
On currency markets the New Zealand dollar tanked more than one percent on
the back of weak jobs data, while the Australian dollar extended Wednesday’s
sell-off that was fuelled by comments from the country’s top central banker
hinting interest rates would not rise any time soon.
– May’s tough mission –
Analysts pointed to their correlation to China’s economy, which is
stuttering at the moment, uncertainty on Wall Street and nervousness ahead of
the trade talks.
Dealers are also looking ahead to the Bank of England’s latest policy
meeting later in the day, which comes as the government struggles to push
through its Brexit plan and concerns build that the country will leave the EU
without a deal on March 29.
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
It also follows a number of dovish statements from central banks around
the world as their boards grow increasingly worried about the global economic
outlook.
BoE boss Mark Carney “has been quite vocally Brexit’s Angel of Death and
an uber-dove for quite some time, but with central banks shifting policy
stance around the world, tonight’s BoE rate decision and Carney’s missives
could have a real impact on the pound”, said OANDA senior market analyst
Jeffrey Halley.
The pound has weakened more than two percent against the greenback in the
past 12 days as investors grow increasingly worried about a so-called hard
Brexit.
Prime Minister Theresa May heads to Brussels Thursday in a bid to alter
her deal with the EU, but with most observers saying she has very little
chance of success.
May will head for the meeting “with the words of the President of the
European Council (Donald Tusk) ringing in her ears that there is a ‘special
place in hell’ for the people who promoted Brexit without any plan to do it”,
said Michael Hewson, chief market analyst at CMC Markets UK.
“Given the tone of those comments … it seems highly unlikely that she’ll
get any changes to the withdrawal agreement before next week’s vote in the
House of Commons, if it even takes place, something that is looking
increasingly unlikely.”
– Key figures around 0710 GMT –
Tokyo – Nikkei 225: DOWN 0.6 percent at 20,751.28 (close)
Hong Kong – Hang Seng: Closed for a public holiday
Shanghai – Composite: Closed for a public holiday
Euro/dollar: DOWN at $1.1360 from $1.1406 at 2140 GMT
Dollar/yen: DOWN at 109.90 yen from 109.97 yen
Pound/dollar: DOWN at $1.2932 from $1.2936
Oil – West Texas Intermediate: DOWN 15 cents at $53.86 per barrel
Oil – Brent Crude: DOWN cents at $62.49 per barrel
New York – Dow: DOWN 0.1 percent at 25,390.30 (close)
London – FTSE 100: DOWN 0.1 percent at 7,173.09 (close)
BSS/AFP/HR/1455