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ASIA-MARKETS-UPDATE
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 trade fears 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.
MORE/HR/1505
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
– Oil down –
The US political twists and Trump’s uncompromising comments ahead of US-
China trade talks next month hit markets.
Tokyo closed down 0.4 percent and Shanghai slipped 1.0 percent while Hong
Kong ended 1.3 percent lower.
Seoul also fell 1.3 percent and Taiwan gave up 0.4 percent while Singapore
was trading 1.1 percent lower and Mumbai was down 1.2 percent.
European markets also slid at the open, with London and Frankfurt both
down 0.5 percent while Paris shed 0.6 percent.
Oil prices took a hit, with WTI off 0.9 percent and Brent down 1.1 percent
following Trump’s tough talk on China and after data indicating a build up in
US crude inventories.
“Oil markets continue to sell as risk sentiment remains sour after Trump
accused China of currency manipulation, theft of intellectual property and
product dumping,” said Stephen Innes, Asia Pacific market strategist at
AxiTrader.
“Mind you this is nothing shockingly new but coming on the cusp of trade
negotiations, it doesn’t exactly suggest he’s laying down the welcome mat for
the Chinese delegation.”
In currency trading, the pound slipped against the dollar. 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 0730 GMT –
Tokyo – Nikkei 225: DOWN 0.4 percent at 22,020.15 (CLOSE)
Hong Kong – Hang Seng: DOWN 1.3 percent at 25,945.35 (CLOSE)
Shanghai – Composite: DOWN 1.0 percent at 2,955.433 (CLOSE)
London – FTSE 100: DOWN 0.5 percent at 7,254.40
Euro/dollar: DOWN at $1.0997 from $1.1002
Pound/dollar: DOWN at $1.2445 from $1.2471
Euro/pound: UP at 88.416 from 88.24 pence
Dollar/yen: DOWN at 107.27 from 107.34
West Texas Intermediate: DOWN 0.9 percent at $56.77 per barrel
Brent North Sea crude: DOWN 1.1 percent at $62.39 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)
BSS/AFP/HR/1510