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Asian markets fall on Trump impeachment move, trade fears
HONG KONG, Sept 25, 2019 (BSS/AFP) – Asian stock markets fell Wednesday
after US Democrats launched formal impeachment proceedings against Donald
Trump and on renewed worries about trade as the president adopted a hard line
on China.
In a dramatic move, House Democratic leader Nancy Pelosi announced a
formal impeachment inquiry after US markets closed.
Democrats accuse Trump of abuse of power in a reported attempt to pressure
the newly installed president of Ukraine to open a corruption investigation
into his lead challenger for the White House, Joe Biden, and Biden’s son
Hunter.
Trump denounced the inquiry as “Witch Hunt garbage” and said he would
release a transcript of his phone call with Volodymyr Zelensky.
“The impeachment hearing announcement delivered a knock-out blow to stocks
markets already weak at the knees,” Jeffrey Halley, senior market analyst at
OANDA, said in a note.
Concern over US political turmoil added to worries over international
trade after Trump ripped into China at the UN, declaring that the time of
Beijing’s “abuses” of the system was “over.”
Touting what he argued were the benefits of his tariff war with China,
Trump reiterated his hope that a trade agreement “beneficial to both
countries” could be struck.
“But as I said very clearly, I will not accept a bad deal for the American
people,” he said.
“Trump’s speech at the United Nations lacked any semblance of endearment
towards China, but instead, he used this opportunity to reignite US-China
tensions while renewing his attacks on America’s largest technology
companies,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.
Tokyo slipped 0.5 percent, while Hong Kong and Shanghai both dropped 0.4
percent.
Oil prices took a hit, with both main contracts down 0.6 percent following
Trump’s tough talk on China and after data indicating a build up in US crude
inventories.
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In currency trading, the pound slipped against the dollar in Asia. It had
rallied Tuesday following Britain’s Supreme Court ruling that Prime Minister
Boris Johnson’s suspension of parliament was “unlawful”, providing a spark of
hope that Brexit will be more orderly than previously feared.
“The ensuing British Pound rally was a bit underwhelming. It probably
reflected the uncertainty of both Mr Johnson’s tenure and the Brexit process
with October the 31st looming,” said OANDA’s Halley.
– Key figures around 0310 GMT –
Tokyo – Nikkei 225: DOWN 0.5 percent at 21,988.28
Hong Kong – Hang Seng: DOWN 0.4 percent at 26,166.62
Shanghai – Composite: DOWN 0.4 percent at 2,973.549
Euro/dollar: DOWN at $1.1002 from $1.1019
Pound/dollar: DOWN at $1.2471 from $1.2493
Euro/pound: UP at 88.24 pence from 88.19 pence
Dollar/yen: UP at 107.34 from 107.09 yen
West Texas Intermediate: DOWN 0.6 percent at $56.95 per barrel
Brent North Sea crude: DOWN 0.6 percent at $62.71 per barrel
New York – Dow: DOWN 0.5 percent at 26,807.77 (close)
New York – S&P 500: DOWN 0.8 percent at 2,966.60 (close)
New York – Nasdaq: DOWN 1.5 percent at 7,993.63 (close)
London – FTSE 100: DOWN 0.5 percent at 7,291.43 (close)
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