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Asian markets mostly up as dealers take China tariffs in stride
HONG KONG, Aug 9, 2018 (BSS/AFP) – Asian investors on Thursday largely
brushed off China’s tit-for-tat response to Donald Trump’s latest tariff
threats, with most markets rising, but concerns about the impact of an all-
out trade war are keeping optimism in check.
Beijing said on Wednesday it would impose 25 percent tariffs on $16 billion
of US goods from August 23, retaliating in kind to a warning from US
officials the day before and escalating a crisis that pits the world’s top
two economies against each other.
While the row has sent global markets into convulsions this year, the
latest development had been widely expected, with Wall Street ending mixed.
Hong Kong jumped 0.9 percent, extending its rally to a fourth day, while
Shanghai surged 1.8 percent following healthy Chinese inflation data.
Seoul was 0.1 percent higher, Sydney added 0.5 percent and Wellington rose
0.8 percent, while Bangkok gained 0.1 percent.
However, Tokyo dropped 0.2 percent on a stronger yen.
Manila was down 0.8 percent after data showed the Philippines economy
massively undershot growth expectations in April-June, with the government
citing the temporary closure of popular holiday island Boracay as a key
reason.
– Pound struggles –
Energy firms fell in line with a sharp sell-off in oil, which followed a
report showing US stockpiles fell less than expected, while investors are
also fretting over the effects of a China-US trade war on demand.
Both main contracts plunged more than three percent on Wednesday, with
analysts saying figures pointing to a drop in Chinese imports from the US
were also detrimental. WTI and Brent were slightly higher Thursday.
“Oil fell out of bed last night as worries over Chinese demand surfaced
after the trade data yesterday and in the wake of China’s hitting back in the
tariff war targeting energy products,” said Greg McKenna, chief markets
strategist at AxiTrader.
MORE/HR/1438
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
On currency markets the ruble extended Wednesday’s losses and is now down
more than four percent against the dollar after Washington imposed fresh
sanctions over Russia’s involvement in the attempted killing of a former spy
in Britain.
And the pound also remains rooted near one-year lows on fears Britain will
leave the European Union next year with no deal to trade with the bloc, with
the country’s trade secretary and central bank boss recently warning the
chances of such a scenario are increasing.
“The market is clearly getting more nervous over the possibility of a no-
deal Brexit, which would be a messy outcome for the UK economy,” said Rodrigo
Catril, senior foreign exchange strategist at National Australia Bank.
In early trade London fell 0.5 percent, Paris shed 0.3 percent and
Frankfurt was off 0.1 percent.
– Key figures at 0810 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 22,598.39 (close)
Hong Kong – Hang Seng: UP 0.9 percent at 28,607.30 (close)
Shanghai – Composite: UP 1.8 percent at 2,794.38 (close)
London – FTSE 100: DOWN 0.5 percent at 7,741.60
Euro/dollar: DOWN at $1.1577 from $1.1611 at 2100 GMT
Pound/dollar: DOWN at $1.2872 from $1.2884
Dollar/yen: UP at 110.99 yen from 110.96 yen
Oil – West Texas Intermediate: DOWN 24 cents at $66.70 per barrel
Oil – Brent Crude: DOWN 20 cents at $72.08 per barrel
New York – Dow Jones: DOWN 0.2 percent at 25,583.75 (close)
BSS/AFP/HR/1440