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ASIA-MARKETS-UPDATE
Asian markets mostly up but traders remain on edge
HONG KONG, March 27, 2019 (BSS/AFP) – Asian markets mostly rose Wednesday
following a strong lead from Wall Street but traders remained on edge about
the global economy, while oil prices extended gains after Russia reassured
over its intention to cut output.
Trading remained choppy across the region after a key US gauge raised a
red flag warning of recession, adding to Federal Reserve worries about
growth, uncertainty over Brexit and China’s stuttering economy.
While the optimism that has characterised most of 2019 has been shaken in
recent weeks, a weak round of US data was unable to prevent a rebound in New
York Tuesday, with all three main indexes ending higher.
And OANDA senior market analyst Jeffrey Halley said the reaction to the
so-called yield curve inversion — which was last seen ahead of the financial
crisis a decade ago — had been “quickly consigned to history”.
He added that “the volte-face in sentiment suggests to me that despite all
the noise, markets are flip-flopping on short-term data as we await the
conclusion of the only real game in town: the US-China trade talks”.
Top-level negotiators will Thursday meet up again to try to hammer out an
agreement with US Trade Representative Robert Lighthizer telling National
Public Radio: “If there’s a great deal to be gotten, we’ll get it. If not,
we’ll find another plan.”
There are hopes for some sort of deal for Donald Trump and Chinese
counterpart Xi Jinping to sign off on as soon as next month.
The US president “is desperate for a deal”, Clark Packard at the R Street
Institute think-tank said. “I don’t think he wants to go into 2020, running
for re-election, without something here.”
– Brexit twist –
After fluctuating through the morning, most Asian markets were higher.
Hong Kong rose 0.6 percent and Shanghai finished 0.9 percent higher with
Sydney adding 0.1 percent and Singapore up 0.4 percent.
Mumbai rose 0.5 percent and Wellington surged 1.3 percent after the New
Zealand central bank hinted at an interest rate cut. However, Tokyo and Seoul
each slipped 0.2 percent, while Manila, Taipei and Bangkok also retreated.
MORE/HR/1505
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
Regional energy firms have been given a lift by rallying oil prices after
major producer Russia said it was on track to slash output this month,
keeping it on track to meet commitments to a deal with OPEC.
“Investors are becoming more confident they can trust Russia’s
relationship with Saudi Arabia, and supply disruptions in Venezuela are
raising concerns the market will tighten further,” Takayuki Nogami, chief
economist at Japan Oil, Gas and Metals National Corp, told Bloomberg News.
On currency markets, the pound was stable as British MPs prepare to vote
on a number of options for the way forward after wresting control of the
Brexit debate from Prime Minister Theresa May.
They will now choose whether to cancel Brexit, hold another referendum,
vote for a deal including a customs union and single market membership, or
leave the EU without a deal, though the government is not bound by law to
implement the decision.
However, in a fresh twist, May’s twice-rejected divorce plan could be
revived after Brexit hardliner Jacob Rees-Mogg — one of its most vociferous
and high-profile critics — said he would back it, while another, Boris
Johnson, hinted that he also could.
However, it still lacks the vital support of May’s Northern Irish
coalition partners, who have denounced it, leading to concerns Britain could
be heading for a general election to try to end the stalemate.
In early trade, London rose 0.3 percent, Frankfurt added 0.2 percent and
Paris put on 0.1 percent.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 21,378.73 (close)
Hong Kong – Hang Seng: UP 0.6 percent at 28,728.25 (close)
Shanghai – Composite: UP 0.9 percent at 3,022.72 (close)
London – FTSE 100: UP 0.3 percent at 7,220.78
Pound/dollar: DOWN at $1.3174 from $1.3201 at 2030 GMT
Euro/dollar: DOWN at $1.1253 from $1.1264
Dollar/yen: UP at 110.60 yen from 110.55 yen
Oil – West Texas Intermediate: UP six cents at $60.00 per barrel
Oil – Brent Crude: UP 20 cents to $68.17 per barrel
New York – DOW: UP 0.6 percent to 25,657.73 (close)
BSS/AFP/HR/1510