HONG KONG, Aug 24, 2018 (BSS/AFP) – Asian markets mostly fell on Friday as
China-US trade talks wrapped up with little progress being made, while the
dollar held gains ahead of a key speech by the head of the Federal Reserve.
The Australian dollar was among the worst performers as the country is
gripped by political uncertainty with Prime Minister Malcolm Turnbull ousted
and the governing Liberal Party set to choose a new leader.
Officials from Beijing and Washington finished a two-day meeting that saw
what the Chinese side described as “constructive and frank” discussions on
trade.
The low-level negotiations were the first since the world’s top economies
began exchanging tit-for-tat tariffs in July and came as the two sides
imposed measures on billions of dollars more in goods.
“The two sides will keep contact regarding future plans,” China’s Commerce
Ministry said in a brief statement, while the White House said the talks
concluded after officials “exchanged views on how to achieve fairness,
balance and reciprocity in the economic relationship”.
In early trade Hong Kong fell 0.8 percent, Shanghai shed 0.5 percent,
Seoul dropped 0.2 percent and Singapore lost 0.9 percent.
However, Tokyo ended the morning 0.4 percent higher as a weaker yen helped
exporters.
Sydney’s under-pressure S&P/ASX 200 fluctuated as traders keep tabs on
events in Canberra after a party backlash this week against Turnbull’s more
moderate approach to politics.
The Australian dollar has lost almost two percent against the greenback
since Tuesday as the prime minister’s political career came to an end.
Elsewhere on currency markets the US dollar were holding gains ahead of
the annual Jackson Hole symposium of central bankers, where Fed boss Jerome
Powell is due to speak later Friday.
While his remarks will be pored over for a clue about the bank’s policy
plans, they will attract more interest after Donald Trump’s criticism this
week of its recent interest rate hikes and accusations it is not backing his
economic agenda.
The comments, which also saw the president refuse to explicitly back the
Fed’s independence, dented the dollar this week.
“Any comments on current Fed policy will draw even more than the usual
attention given recent and unprecedented criticism of the Fed by President
Trump,” Larry Hatheway, chief economist at GAM Investments, told Bloomberg
News.
“While Powell prefers to speak plainly and in non-technical terms, he may
find reason to take a more guarded approach in order to avoid the appearance
of open conflict with the administration.”
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.4 percent at 22,488.68 (break)
Hong Kong – Hang Seng: DOWN 0.8 percent at 27,575.68
Shanghai – Composite: DOWN 0.5 percent at 2,712.35
Euro/dollar: UP at $1.1547 from $1.1543 at 2030 GMT
Pound/dollar: DOWN at $1.2809 from $1.2815
Dollar/yen: UP at 111.40 yen from 111.23 yen
Oil – West Texas Intermediate: UP 23 cents at $68.06 per barrel
Oil – Brent Crude: UP 21 cents at $74.94 per barrel
New York – Dow Jones: DOWN 0.3 percent at 25,656.98 (close)
London – FTSE 100: DOWN 0.2 at 7,563.22 (close)