ZCZC
BCN-14
ASIA-MARKETS-UPDATE
Asia markets down as US-China trade talks loom
HONG KONG, July 29, 2019 (BSS/AFP) – Asia markets were mostly down Monday,
with investors cautious ahead of US-China talks in Shanghai this week and
amid more civil unrest in Hong Kong.
Two-day discussions begin on Tuesday with a Washington delegation led by
White House Trade Representative Robert Lighthizer.
But analysts are pessimistic about a resolution to the year-long trade
dispute between the world’s top two economies that has seen $360 billion in
tariffs imposed on bilateral trade.
“Hoping for the best but preparing for the worst best describes my view,”
said Vanguard Markets managing partner Stephen Innes. “We are not overly
optimistic about a positive Shanghai surprise.”
Hong Kong was among the biggest downward movers on Tuesday with the Hang
Seng falling more than two percent after a fresh round of violent protests
over the weekend, before paring losses to close one percent lower.
Pro-democracy demonstrators in the financial hub fought a second
consecutive day of running battles with police on Sunday evening in a well-
heeled residential district, a day after clashes at a banned rally in a town
near the border with mainland China.
Real estate shares were among the biggest losers from the political
uncertainty, with commercial property developer Swire down three percent and
subway operator MTR down 3.4 percent at the close.
The weekend protests were “factoring quite negatively into the overall
risk equation”, Innes said, with traders concerned that Washington may speak
in support of the demonstrators.
“If they do, it would not only throw this week’s trade discussion into
disarray but could jeopardise bilateral trade negotiations going forward,” he
added.
The city’s American Chamber of Commerce on Monday urged officials to
address grievances fuelling the protests — which have carried on for nearly
two months — and “restore confidence” in the city’s reputation as an
international business and financial centre.
“A clear majority of our membership surveyed over the past week said the
government needs to address the underlying causes of the protests and not
simply to paper over the cracks of social instability with a short-term law-
and-order fix,” said AmCham president Tara Joseph.
MORE/HR/1438
ZCZC
BCN-15
ASIA-MARKETS-UPDATE 2 LAST HONG KONG
Seoul fell 1.8 percent amid an ongoing trade spat with Tokyo, which
restricted export of materials key to South Korean tech firms earlier this
month.
The Nikkei closed down 0.2 percent ahead of a long slate of earnings
figures this week, while Shanghai finished 0.2 percent lower.
London was 0.8 percent higher in morning trade.
– Rate cut expectations –
Wall Street is preparing for a positive equity outlook with markets
hitting fresh records at their close last week.
Fed officials begin a two-day monetary policy meeting on Tuesday with
markets pricing in expectations of a 25 basis point cut, said OANDA senior
market analyst Alfonso Esparza.
Any cut could lead to downward pressure on the dollar and gold prices,
which could dip below $1,400, he added.
Central banks in Japan and England will also meet this week.
Oil benchmarks were slightly down Monday after ending last week higher on
strong US growth figures, and amid continuing tensions over Britain’s seizure
of an Iranian tanker earlier this month.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 21,616.80 (close)
Hong Kong – Hang Seng: DOWN 1.0 percent at 28,106.41 (close)
Shanghai – Composite: DOWN 0.2 percent at 2,941.99 (close)
London – FTSE 100: UP 0.8 percent at 7,611.52
Pound/dollar: DOWN at $1.2332 from $1.2338
Euro/pound: UP at 90.17 pence from 89.86 pence
Euro/dollar: DOWN at $1.1119 from $1.1128
Dollar/yen: FLAT at 108.66 yen
Brent North Sea crude: DOWN 48 cents at $62.98 per barrel
West Texas Intermediate: DOWN 19 cents at $56.01 per barrel
New York – Dow: UP 0.2 percent at 27,192.45 (close)
BSS/AFP/HR/1440