HONG KONG, April 11, 2019 (BSS/AFP) – The pound edged up Thursday in Asia
after Britain and its EU partners agreed to once again extend the deadline
for Brexit, days before the cut-off for avoiding an economically calamitous
no-deal divorce.
After hours of late-night talks Prime Minister Theresa May was given until
the end of October to pass her deal for leaving the bloc through parliament,
having failed three times already.
The extension allows for an earlier exit if May achieves it, with a review
taking place on June 21.
News of the delay allowed traders to breathe a sigh of relief and the
pound edged up against the dollar and euro, though the gains were limited
with the agreement merely kicking the can down the road.
And there remains much uncertainty, with the prime minister under intense
pressure from hardline Brexit supporters in her Conservative party not to
compromise in her talks with the opposition Labour party, and the discussions
are moving slowly.
Asian equity markets fell, with few catalysts to drive buying and
investors still on edge over a brewing trade battle between the United States
and Europe.
White House threats this week to hammer $11 billion worth of EU goods with
tariffs jolted markets, which have been rallying this year on optimism that
China and the US were close to ending their own battle.
The warning revived concerns about Donald Trump’s protectionist agenda
that has taken aim at all US trading partners.
In early trade Hong Kong was down 0.6 percent and Shanghai shed 0.4
percent while Tokyo went into the break 0.3 percent lower.
Sydney fell 0.5 percent, Seoul and Taipei were each 0.1 percent lower,
while Manila and Jakarta shed 0.4 percent apiece. Singapore added 0.5 percent
and Wellington rose 0.6 percent.
Regional investors were also unmoved by the latest central bank
dovishness.
The Federal Reserve released minutes of its March meeting that reinforced
expectations that it will not lift interest rates this year as it keeps an
eye on the US economy and brewing risks abroad.
“I think this confirms the message that we got from the March meeting,”
James McCann, senior economist at Aberdeen Standard Investments, told
Bloomberg News. “This is a Fed that’s pretty happy to just sit on its hands
for the time being and stay on hold and see how some of these cross currents
play out.”
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.3 percent at 21,627.87 (break)
Hong Kong – Hang Seng: DOWN 0.6 percent at 29,950.14
Shanghai – Composite: DOWN 0.4 percent at 3,228.43
Pound/dollar: UP at $1.3097 from $1.3091 at 2040 GMT
Euro/pound: UP at 86.11 pence from 86.09 pence
Euro/dollar: UP at $1.1278 from $1.1272
Dollar/yen: UP at 111.08 yen from 111.00 yen
Oil – West Texas Intermediate: DOWN 20 cents at $64.41 per barrel
Oil – Brent Crude: DOWN eight cents at $71.65 per barrel
New York – Dow: UP less than 0.1 percent at 26,157.16 (close)
London – FTSE 100: DOWN 0.1 percent at 7,421.91 (close)