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Asian markets mostly down, eyes on G7 summit
HONG KONG, June 5, 2018 (BSS/AFP) – Asian investors took a breather on
Tuesday after the latest rally, but analysts said optimism over the improving
US economy was helping overcome worries about a possible trade war and
geopolitical uncertainty.
US markets provided another strong lead, with the Nasdaq chalking up a new
closing high, as Friday’s better-than-expected jobs report continued to
provide support despite an expected jump in Federal Reserve interest rates.
Attention this week turns to the Group of Seven summit that begins Friday
in Quebec, where Donald Trump is expected to face criticism over his decision
to lump tariffs on Canadian, Mexican and European steel and aluminium.
The EU and Canada have filed complaints at the World Trade Organization
while China has also issued a warning to Washington not to target its
exports.
However, while there are concerns about the impact a trade war would have
on the global economy, Stephen Innes, head of Asia-Pacific trade at OANDA
said trading floors were broadly upbeat for now.
“So far, investors remain focused on a broader subset of US economic data
while concluding that US earnings and the economy are sufficiently robust to
keep the equity bull market intact,” he said in a note.
“And for the time being, putting the prospects of higher US interest rates
and global trade wars, which usually scare investors stiff, on the back
burner.”
Tokyo ended the morning session 0.1 percent higher, while Hong Kong fell
0.3 percent and Shanghai shed 0.2 percent.
Sydney and Seoul were each off 0.3 percent, while Taipei and Manila also
slipped.
However, Singapore added 0.4 percent and Wellington rallied 0.9 percent.
MORE/MR/ 1035 hrs
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On currency markets the dollar extended gains against the yen thanks to
bets on US borrowing costs rising this year.
The euro was also holding up on relief that last week’s political turmoil
in Italy had subsided, though there are still some concerns about what sort
of policies the new, populist-led government will implement.
Oil prices edged up slightly but crude dealers remain on edge ahead of a
June 22 OPEC meeting where the cartel will discuss its two-year-old output
cap deal with Russia, with Saudi Arabia having indicated it could open the
pumps more.
The commodity has been hammered in recent sessions by concerns of a glut,
with WTI down about 10 percent from its recent highs and Brent around six
percent off.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.1 percent at 22,497.89 (break)
Hong Kong – Hang Seng: DOWN 0.3 percent at 30,921.01
Shanghai – Composite: DOWN 0.2 percent at 3,084.45
Euro/dollar: DOWN at $1.1695 from $1.1698 at 2100 GMT
Pound/dollar: UP at $1.3318 from $1.3315
Dollar/yen: UP at 109.88 yen from 109.79 yen
Oil – West Texas Intermediate: UP 36 cents at $65.11
Oil – Brent Crude: UP 32 cents at $75.61 per barrel
New York – Dow Jones: UP 0.7 percent at 24,813.69 (close)
London – FTSE 100: UP 0.5 percent at 7,741.29 (close).
BSS/AFP/MR/ 1035 hrs