ZCZC
BCN-04,05
ASIA-MARKETS
Asian markets fall on new trade worries in thinned business
HONG KONG, Sept 24, 2018 (BSS/AFP) – Hong Kong led a sell-off in Asian
markets during holiday-thinned business Monday as trade tensions burst back
on the scene with China and the US preparing to impose fresh tariffs and
reports saying Beijing has pulled out of planned talks.
The recent optimism in the US economy that saw equities rack up healthy
gains over the past two weeks was replaced by fresh concerns about the impact
of a standoff between the world’s top two economies.
Hong Kong bore the brunt of the selling, giving up more than one percent,
while Sydney fell 0.1 percent and Wellington shed 0.6 percent.
However, volumes were low with Tokyo, Shanghai, Seoul and Taipei all
closed for public holidays.
Media reports said Chinese officials had called off a trip to the US for
fresh talks on averting an all-out trade war and the two sides were unlikely
to meet up before the US mid-term elections in November.
The news comes as Washington prepares to impose 10 percent duties on
another $200 billion of Chinese goods Monday, with China lining up $60
billion of imports in retaliation.
While the measures are a significant step up in the row — the US will be
taxing about half the goods it imports from China once the new tariffs are
imposed — traders took the low rates as a sign they could reach a deal
eventually.
However, uncertainty is dogging trading floors.
“Make no mistake, this will be a bumpy ride and don’t underestimate the
possibility of the US announcing reviews of further China tariffs at some
point in time given the Trump administration ‘modus operandi’ of applying
non-stop pressure,” said Stephen Innes, head of Asia-Pacific trading at
OANDA.
On currency markets the pound struggled to recover after suffering deep
losses Friday after British Prime Minister Theresa May’s Brexit plan was
brushed off by EU officials and she said talks were “at an impasse”.
The dollar also rose against most emerging market and high-yielding units
after they enjoyed a much-needed boost last week. The South Korean won,
Indonesian rupiah, South African rand and Mexican peso were down between 0.2
and 0.4 percent.
MORE/HR/0928
ZCZC
BCN-05
ASIA-MARKETS 2 LAST HONG KONG
Oil surged more than one percent after the world’s top producers decided
to maintain output during a meeting in Algeria at the weekend, in an apparent
rebuff to pressure from Donald Trump to lower prices.
A committee comprised of OPEC and non-OPEC producers said it was satisfied
with the current market outlook, which represented “an overall healthy
balance between supply and demand”.
– Key figures around 0230 GMT –
Hong Kong – Hang Seng: DOWN 1.1 percent at 27,644.83
Tokyo – Nikkei 225: Closed for a holiday
Shanghai – Composite: Closed for a holiday
Euro/dollar: DOWN at $1.1745 from $1.1752 at 2040 GMT on Friday
Pound/dollar: DOWN at $1.3077 from $1.3085
Dollar/yen: UP at 112.60 yen from 112.58 yen
Oil – West Texas Intermediate: UP 76 cents at $71.54 per barrel
Oil – Brent Crude: UP 94 cents at $79.74 per barrel
New York – Dow Jones: UP 0.3 percent at 26,743.50 (close)
London – FTSE 100: UP 1.7 percent at 7,490.23 (close)
BSS/AFP/HR/0930