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Asian markets rise as attention turns to China growth data
HONG KONG, April 16, 2019 (BSS/AFP) – Asian markets rose Tuesday after a
slow start to the day, as investors brushed off a weak lead from Wall Street
while looking ahead for the release of Chinese growth data.
With few catalysts to drive business, regional equities at first struggled
for traction but picked up as the day wore on — resuming an uptrend that has
characterised the year.
Focus turns now to China’s growth figures, which come after a number of
upbeat readings on the world’s number two economy — including factory
activity, inflation, new loans and trade — that have given some cause for
optimism.
High-level talks between China and the United States aimed at ending their
long-running trade war are also being closely followed, with most observers
optimistic they would reach a deal.
Both sides have sounded positive, and expectations for a deal have been a
key driver of a rally in global markets this year and in offsetting worries
about the outlook for the world economy.
“The data from both China and the US has been consistently upbeat of late,
suggesting things may not get as bad as the doomsayers are proclaiming,” said
OANDA senior market analyst Jeffrey Halley.
“That said, without sounding like a broken record, a resolution of the US-
China trade issues must occur before a more complete picture of what 2019
holds for the global economy can be built.”
Traders are also keeping tabs on trade talks between Japan and the United
States in Washington.
– ‘Air of unpredictability’ –
Hong Kong rose 1.1 percent, while Shanghai ended more than two percent
higher — boosted by a rise in property prices — and Tokyo was up 0.2
percent.
Sydney gained 0.4 percent, Singapore added 0.2 percent, Seoul rose 0.3
percent and Taipei jumped 0.6 percent.
Wellington, Manila, Mumbai and Jakarta were also well up.
MORE/MR/ 1434 hrs
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Traders in New York provided a weak lead after Wall Street majors Goldman
Sachs and Citigroup disappointed, offsetting a healthy report from peer JP
Morgan last week and causing some concern as earnings season kicks into gear.
“Obviously the markets are not expecting too much and a lot of good news
are already priced in, so it makes sense for the market to take a pause,”
Isabelle Mateos y Lago, a strategist at BlackRock, told Bloomberg TV.
Oil prices extended Monday’s losses, having enjoyed a surge of more than
30 percent this year, thanks to hopes for the China-US talks, an output cut
by OPEC and Russia, sanctions on Iran and Venezuela and brewing unrest in
Libya.
And while dealers are selling, analysts expect prices to continue going
up.
“Other than an unlikely about-face in OPEC supply discipline or a surprise
on Iran sanctions wavier, not quite sure what can or will derail oil
markets,” said Stephen Innes at SPI Asset Management.
“But given the air of unpredictability that engulfs President Trump,
certainly concerns will creep that (he) will knuckle down and force prices
lower by increasing Iran waiver limits.”
In early trade London’s FTSE index rose 0.2 percent, Paris gained 0.3
percent and Frankfurt 0.5 percent.
– Key figures around 0810 GMT –
Tokyo – Nikkei 225: UP 0.2 percent at 22,221.66 (close)
Hong Kong – Hang Seng: UP 1.1 percent at 30,129.87 (close)
Shanghai – Composite: UP 2.4 percent at 3,253.60 (close)
London – FTSE 100: UP 0.2 percent at 7451.71
Pound/dollar: UP at $1.3080 from $1.3093 at 2045 GMT
Euro/pound: DOWN at 86.47 pence from 86.32 pence
Euro/dollar: UP at $1.1310 from $1.1302
Dollar/yen: DOWN at 111.90 yen from 112.03 yen
Oil – West Texas Intermediate: DOWN eight cents at $63.32 per barrel
Oil – Brent Crude: DOWN 28 cents at $70.90 per barrel
New York – Dow: DOWN 0.1 percent at 26,384.77 (close)
BSS/AFP/MR/ 1434 hrs