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Asian markets mostly up but trade jitters keep investors on edge
HONG KONG, Dec 11, 2019 (BSS/AFP) – Asian markets mostly rose Wednesday
but investors are growing nervous at the lack of news on China-US trade
talks, with Washington yet to cancel tariffs on a swathe of Chinese goods
planned for the weekend.
Negotiators are still trying to hammer out a mini agreement and the mood
on trading floors remains upbeat, while most observers are confident the two
sides will eventually reach a deal, which has fed a global equities rally for
weeks.
However, a fresh round of levies on $160 billion of Chinese exports to the
US is due to be imposed on December 15, and there has been no word from the
White House on a possible delay to that date.
The removal of tariffs is a key demand of Beijing’s in the talks.
And on Tuesday Donald Trump’s top economics adviser Larry Kudlow warned
that the measures remained in play for now.
“The reality is that those tariffs are still on the table,” Kudlow said,
although he did say that Trump had struck a “constructive and optimistic
tone” on China.
The uncertainty weighed on Wall Street, with all three main indexes edging
down.
Still, Asian markets reversed early losses to sit in positive territory in
the afternoon.
Hong Kong jumped 0.8 percent and Shanghai added 0.2 percent, while Sydney
gained 0.7 percent. Seoul, Singapore, Taipei and Manila were also well in the
green, with Mumbai starting on an upbeat note.
But Tokyo finished 0.1 percent lower, with Bangkok also down.
In early trade London rose 0.2 percent, Frankfurt dipped 0.1 percent and
Paris was flat.
“The fact the two sides are negotiating is a positive sign, as it’s when
both sides are locked in a stand-off without communication, then traders get
nervous,” said David Madden at CMC Markets UK.
MORE/HR/1502
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
– New poll hits pound –
On currency markets the pound tumbled against the dollar after a fresh
poll predicted UK Prime Minister Boris Johnson’s ruling Conservatives would
win a much smaller majority than a previous projection.
The YouGov opinion poll said the Tories would win Thursday’s vote, with a
majority of 28 seats, sharply down from the 68 forecast in a similar study at
the end of November.
Sterling has surged in recent weeks — sitting at an eight-month high on
the greenback and a two-and-a-half-year peak against the euro — on
expectations Johnson would win a big enough majority to push through his
Brexit deal.
But the narrowing polls point to the possibility of another hung
parliament, which would lead to more uncertainty in Westminster and drag out
the Britain-EU saga even longer.
“The margins are extremely tight and small swings in a small number of
seats, perhaps from tactical voting and a continuation of Labour’s recent
upward trend, means we can’t currently rule out a hung parliament,” YouGov
political research manager Chris Curtis said.
“One thing’s for sure: when it comes to UK elections, and as history
reminds us, it’s never over till it’s over,” said AxiTrader’s Stephen Innes.
The Federal Reserve’s policy decision later Wednesday is also in focus,
with the central bank’s plans for monetary policy next year being closely
watched. Analysts widely expect the central bank to hold off making any moves
on interest rates as it assesses the state of the US economy.
In company news, Saudi Aramco soared 10 percent on its trading debut on
the Saudi stock exchange, boosting the energy titan’s valuation to $1.88
trillion.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.1 percent at 23,391.86 (close)
Hong Kong – Hang Seng: UP 0.8 percent at 26,645.43 (close)
Shanghai – Composite: UP 0.2 percent at 2,924.42 (close)
London – FTSE 100: UP 0.2 percent at 7,228.68
Euro/dollar: DOWN at $1.1083 from $1.1096 at 2200 GMT
Pound/dollar: DOWN at $1.3116 from $1.3182
Euro/pound: UP at 84.50 pence from 84.18 pence
Dollar/yen: DOWN at 108.74 yen from 108.74 yen
West Texas Intermediate: DOWN 33 cents $58.91 per barrel
Brent North Sea crude: DOWN 41 cents at $63.93 per barrel
New York – Dow: DOWN 0.1 percent at 27,881.72 (close)
BSS/AFP/HR/1505