ZCZC
BCN-12
ASIA-MARKETS
Asian markets mostly up but trade war fears keep dealers on edge
HONG KONG, June 20, 2018 (BSS/AFP) – Asian equities mostly rose Wednesday
but investors struggled to sustain any meaningful recovery after the previous
day’s battering, with the shadow of a potentially damaging China-US trade war
hanging over markets.
Shanghai and Hong Kong took the brunt of the sell-off Tuesday after
Beijing warned it would retaliate in kind to Donald Trump’s threat of tariffs
on hundreds of billions of dollars worth of Chinese goods amounting to a
large proportion of its exports to the US.
The standoff follows weeks of fruitless talks between the world’s two
biggest economies, with the White House accusing China of a string of unfair
practices including cyber-theft and forced technology transfers that are
hurting American jobs and companies.
Tuesday’s developments also surprised many traders who had characterised
Trump’s protectionist rhetoric to be part of a strategy to get a better deal
with China.
Trump senior economic aide Peter Navarro continued the forceful language
Tuesday by saying China had more to lose from a trade war as it shipped more
to the US.
He also maintained the administration was acting “to defend the crown
jewels of American technology from China’s aggressive behaviour”.
However, he added the White House was open to talks but warned: “The
fundamental reality is talk is cheap. Delay is expensive.”
– ‘Sheer terror’ –
Stephen Innes, head of Asia-Pacific trading at OANDA, said: “Investors’
complacency has given way to sheer terror as there can be very little doubt
that the US and China have locked horns in a legitimate trade war as battle
lines get drawn.”
In early trade Hong Kong edged up 0.1 percent after dropping 2.8 percent
Tuesday, but Shanghai extended a 3.8 percent loss by giving up 0.4 percent.
Tokyo ended the morning marginally higher while Sydney gained 0.7 percent,
Singapore edged up 0.1 percent and Seoul added 0.9 percent. There were also
gains in Wellington, Taipei and Manila.
MORE/HR/0938
ZCZC
BCN-13
ASIA-MARKETS 2 LAST HONG KONG
The dollar clawed back early losses against the yen but analysts warn it
remains under pressure as investors look to the Japanese unit as a point of
safety in times of turmoil.
Eyes are also moving to OPEC’s crucial meeting as Saudi Arabia pushes with
non-member Russia to lift an output ceiling that has supported oil prices for
18 months.
However, the two major producers are facing stiff opposition at the June
22-23 gathering from nations that have benefited from the increased revenues.
“It does seem like an increase is coming,” said Greg McKenna, chief market
strategist at AxiTrader. “The question is can such a move be achieved in
order to balance the interests of OPEC’s customers like the US and India
while still holding the cartel together as a functioning group.”
– Key figures around 0300 GMT –
Tokyo – Nikkei 225: FLAT at 22,287.42 (break)
Hong Kong – Hang Seng: UP 0.1 percent at 29496.25
Shanghai – Composite: DOWN 0.4 percent at 2,897.36
Euro/dollar: UP at $1.1590 from $1.1587 at 2100 GMT
Pound/dollar: DOWN at $1.3168 from $1.3178
Dollar/yen: UP at 110.15 yen from 110.04 yen
Oil – West Texas Intermediate: UP 17 cents at $65.24 per barrel
Oil – Brent Crude: UP nine cents at $75.17 per barrel
New York – Dow Jones: DOWN 1.2 percent at 24,700.21 (close)
London – FTSE 100: DOWN 0.4 percent at 7,603.85 (close)
BSS/AFP/HR/0940