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Asian markets mixed ahead of China anniversary
HONG KONG, Sept 30, 2019 (BSS/AFP) – Asian markets had a mixed start on
Monday as Beijing posted manufacturing data that was better than expected,
but investors remained cautious ahead of a week-long patriotic holiday in
China and after reports last week raised fears of a fresh escalation in its
trade war with the US.
China’s factory activity is still underperforming but data released by the
National Bureau of Statistics showed a month-on-month rise that exceeded
forecasts.
The Asian giant celebrates 70 years since the founding of communist China
on Tuesday, with markets taking a break from October 1 to 7, and planned
protests in Hong Kong threatening to disrupt the festivities.
On Friday, stocks fell into the red after multiple US media reports said
President Donald Trump was mulling severe new restrictions on investment in
China, as the trade conflict between the world’s two biggest economies
stretches into its second year.
Stephen Innes, Asia Pacific market strategist at AxiTrader, said a US
Treasury statement released Saturday, which said there were no current plans
to stop Chinese companies from listing on US exchanges, had calmed nerves.
“However, the statement didn’t exactly clarify the White House position,
nor did it rule out other courses of action,” he said in a note.
“Unquestionably, floating this story at a time when US-China harmony is
most needed suggests the US administration isn’t exactly rolling out a red-
carpet welcoming party for China’s high-level trade negotiators.”
The threats appeared intended to ratchet up pressure on Beijing to strike a
bargain. Trump has said in recent weeks that China may be holding off on
reaching a trade deal, betting that he will not be re-elected next year.
Shanghai was down 0.2 percent and Hong Kong fell on opening but later
recovered, after one of the most violent weekends the semi-autonomous city
has seen in a summer of unrest.
Pro-democracy protesters in the financial hub are hoping to disrupt
Beijing’s celebrations on Tuesday with further mass rallies.
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Tokyo slumped by 0.5 percent, with analysts saying stocks were weighed down
by losses in the US market. Sydney and Seoul were up but Jakarta and
Singapore also saw declines.
“Asia is refusing to bite on the Trump threats to delist Chinese companies
on US exchanges that came out on Friday and saw Wall Street finish in the
red,” said Jeffrey Halley, senior market analyst at OANDA.
“In China’s case, ahead of the 70th birthday celebrations tomorrow,
‘officialdom’ is likely to ensure that Mainland indices finish the day flat
at worst,” he added.
– Key figures around 0315 GMT –
Hong Kong – Hang Seng: UP 0.2 percent at 25,997.87
Shanghai – Composite: DOWN 0.2 percent at 2,927.049
Tokyo – Nikkei 225: DOWN 0.5 percent at 21,780.20 (break)
London – FTSE 100: UP 1.0 percent at 7,426.21 (close)
New York – Dow: DOWN 0.3 percent at 26,820.25 (close)
Euro/dollar: DOWN at $1.0932 from $1.0941 at 2030 GMT
Pound/dollar: DOWN at $1.2287 from $1.2293
Euro/pound: DOWN at 88.97 pence from 89.01 pence
Dollar/yen: DOWN at 107.92 yen from 107.95
Brent North Sea crude: UP 3 cents at $61.94 per barrel
West Texas Intermediate: UP 12 cents at $56.03 per barrel
BSS/AFP/HR/1000