ZCZC
BCN-01
MARKETS-WORLD
Asian markets down on trade uncertainty, unrest hits Hong Kong
HONG KONG, Nov 11, 2019 (BSS/AFP) – Asian markets turned lower on Monday
as another record close on Wall Street was overshadowed by uncertainty on the
China-US trade talks, while Hong Kong was also hit by fresh protests in which
at least one person was shot.
Expectations Beijing and Washington will agree a mini-pact have fuelled an
equity rally for the past few weeks.
Hopes had been given an added boost Thursday after China said the two sides
had agreed to roll back some tariffs as the negotiations progress.
But the US side sent out some confusing signals after that announcement,
before US President Donald Trump denied such an agreement, leaving investors
scratching their heads.
Still, White House trade adviser Peter Navarro provided a lift to
sentiment, saying Trump could postpone tariffs on Chinese goods scheduled to
take effect in December. The S&P 500 and Dow both ended at fresh all-time
highs.
“President Trump’s speech on Tuesday at the New York Economic Club offers
the perfect soapbox for (him) to make a big political splash on both the US-
China trade talks and section 232 auto investigation against the EU,” said
AxiTrader’s Stephen Innes.
“The president has never been known to shy away from the spotlight, so keep
eyes trained on this significant event.”
Asian investors were unable to extend the winning streak.
Tokyo ended 0.3 percent lower and Singapore shed more than one percent with
Seoul, Mumbai, Taipei, Jakarta and Manila also sharply lower. Sydney and
Wellington edged up.
– Protester shot –
Shanghai dropped 1.8 percent, with traders keeping tabs on China’s annual
“Singles’ Day” shopping frenzy — the world’s biggest 24-hour shopping event
— which acts as a gauge of the country’s consumer spending.
Total gross merchandise volume settled through Alibaba’s payments platform
Alipay hit 192 billion yuan ($27.4 billion) in the first 12 hours, the e-
commerce titan said.
This put it on course to break last year’s record of $30.7 billion. The
firm said the first $1 billion was spent in just 68 seconds.
Hong Kong sank 2.6 percent as the city was gripped by another wave of
protests that have jammed up the transport network and led to the closure of
several businesses.
At least one person was hurt after a police officer fired shots at
demonstrators, as the unrest — which for five months has battered the city’s
image and dragged on the economy — shows no sign of letting up.
Tensions have soared in recent days following the death on Friday of a 22-
year-old student who succumbed to injuries sustained from a fall in the
vicinity of a police clearance operation a week earlier.
In early trade London and Frankfurt each fell 0.5 percent, while Paris was
off 0.3 percent.
On currency markets the pound edged up but struggled to recover losses
suffered Friday that came in reaction to news that Moody’s had downgraded the
outlook for Britain’s debt, citing mounting policy challenges as the Brexit
saga rumbles along.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.3 percent at 23,331.84 (close)
Hong Kong – Hang Seng: DOWN 2.6 percent at 26,926.55 (close)
Shanghai – Composite: DOWN 1.8 percent at 2,909.97 (close)
London – FTSE 100: DOWN 0.5 percent at 7,322.66
Euro/dollar: UP at $1.1029 from $1.1021 at 2140 GMT
Dollar/yen: DOWN at 108.97 yen from 109.21 yen Pound/dollar: UP at $1.2802
from $1.2784
Euro/pound: DOWN at 86.13 pence from 86.18
West Texas Intermediate: DOWN 60 cents at $56.64 per barrel Brent North Sea
crude: DOWN 62 cents at $61.89 per barrel New York – Dow: FLAT at 27,681.24
(close)
BSS/AFP/RY/1553 hrs