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Asian markets swing but trade deal keeps mood buoyant
HONG KONG, Dec 20, 2019 (BSS/AFP) – Asian markets were mixed on Friday as
investors await fresh catalysts to drive business, though with the China-US
trade deal agreed and Christmas approaching many are in wind-down mode.
Wall Street provided yet another record-breaking lead, with all three main
indexes being helped to all-time highs by news that a revised US-Canada-
Mexico pact had finally been agreed.
Concerns that pen had not yet been put to paper on the China-US pact were
soothed by US Treasury Secretary Steven Mnuchin, who said a technical review
was taking place and it would be signed in early January.
Regional equities swung back and forth through the morning session, with
investors now turning an eye to the festive break and observers indicating
next year could see further gains.
“Agreement of the phase one deal between the US and China has removed quite
a lot of the uncertainties in the outlook for 2020,” said Stephen Innes,
senior market analyst at AxiTrader.
“And with the global growth revival trade looking better and better by the
day, equity investors are revelling in the holiday cheer.”
Tokyo eased 0.2 percent and Shanghai ended down 0.4 percent, while Sydney
fell 0.3 percent.
Taipei gave up 0.5 percent and Manila sank more than one percent, while
there were also losses in Jakarta and Bangkok.
However, Hong Kong ended up 0.3 percent, Seoul gained 0.4 percent and
Mumbai edged higher while Wellington and Singapore were flat.
OANDA’s Jeffrey Halley was also upbeat on the near-term outlook.
“Stock markets will continue to trace out new highs into the early part of
2020 at least, barring a trade hiccup,” he said.
On currency markets the pound edged up but was still struggling against the
dollar after British Prime Minister Boris Johnson this week revived no-deal
Brexit worries by saying he wanted to pass a law preventing an extension to
the next phase of EU talks.
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
Sterling has plunged below the levels it was at before last week’s
landslide win for Johnson, who says he wants a full break by the end of next
year — raising the chances of leaving without a trade deal in place.
Adding to downward pressure on the British unit was the Bank of England
leaving the door open for an interest rate cut next month as it assesses the
outlook for the economy.
Observers said there was a two-thirds chance of a reduction in borrowing
costs.
In early trade London rose 0.1 percent, Frankfurt was flat and Paris added
0.2 percent.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 23,816.63 (close)
Hong Kong – Hang Seng: UP 0.3 percent at 27,871.35 (close)
Shanghai – Composite: DOWN 0.4 percent at 3,004.94 (close)
London – FTSE 100: UP 0.1 percent at 7,583.53
Pound/dollar: UP at $1.3027 from $1.3008 at 2200 GMT
Euro/pound: DOWN at 85.33 pence from 85.48 pence
Euro/dollar: DOWN at $1.1116 from $1.1121
Dollar/yen: DOWN at 109.28 yen from 109.36 yen
Brent North Sea crude: UP five cents at $66.59 per barrel
West Texas Intermediate: DOWN eight cents at $61.10 per barrel
New York – Dow: UP 0.5 percent at 28,376.96 (close)
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