HONG KONG, Nov 12, 2018 (BSS/AFP) – Asian markets were largely flat on
Monday morning following weak US trading at the end of last week and as
nervousness over Chinese growth put pressure on global equities.
After early gains, Hong Kong hovered between positive and negative
territory, edging up 0.2 percent by mid-morning.
Tokyo and Shanghai stocks were largely unchanged, with Tokyo trading down
by 0.1 percent.
“Flagging growth in China revived global growth concerns,” Stephen Innes,
head of trading for Asia-Pacific at OANDA.
“Specifically, it was Friday’s China factory gate inflation wobble that is
weighing on global equities and commodities alike.”
China’s economy will be in the spotlight this week, with key monthly data
expected Wednesday and stocks tumbling last week on mounting concerns of a
slowdown.
Chinese ecommerce giant Alibaba took a record $30.7 billion in orders on
Sunday during its annual “Singles Day” shopping frenzy.
However sales growth slowed to 27 percent this year from 39 percent growth
in 2017, adding to mounting concerns over the outlook for the Asian
powerhouse.
“But where we can get some comfort from this number is that Chinese
consumers are slowing, not collapsing,” Junheng Li, founder of JL Warren
Capital LLC, told Bloomberg News.
China’s banking stocks were seeing mixed performance Monday after the
government gave new guidance on requirements for banks to lend to private
companies. Last week bank shares dropped as investors balked at what were
seen as unprecedented government demands on lenders.
The Industrial & Commercial Bank of China (ICBC) was up 0.2 percent in
Hong Kong, while the China Construction Bank lost 0.1 percent.
– Oil rallies –
Markets across Asia were cautious through the morning, with Taiwan up 0.2
percent, Seoul edging down 0.3 percent, and Sydney up 0.1 percent.
There was some relief on the oil markets following last week’s slump,
after a key meeting of oil producers took place in Abu Dhabi at the weekend.
The OPEC group and its allies started laying the groundwork to cut supply
in 2019, reversing an almost year-long expansion.
Khalid al-Falih, energy minister of the world’s top supplier Saudi Arabia,
said the kingdom would cut its production by 500,000 barrels per day.
Oil prices rallied Monday morning, with both Brent Crude and WTI seeing
gains.
Innes said it was in OPEC’s “best interests to tame the current supply
glut” as “oil prices above $80 are never welcome by OPEC customers”.
Last week, higher US energy stockpiles drove benchmark WTI crude to its
longest losing streak in more than 30 years, while Brent Crude dropped below
$70 a barrel for the first time since April.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.1 percent at 22,237.19
Hong Kong – Hang Seng: UP 0.2 percent at 25,641.67
Shanghai – Composite: UP 0.1 percent at 2,601.10
Euro/dollar: DOWN at $1.1328 from $1.1351 at 2200 GMT Friday
Pound/dollar: DOWN at $1.2941 from $1.3022
Dollar/yen: UP at 113.99 yen from 113.76 yen
Oil – West Texas Intermediate: UP 51 cents at $60.71 per barrel
Oil – Brent Crude: UP 71 cents at $70.89 per barrel
New York – Dow: DOWN 0.8 percent at 25,989.30 (close)
London – FTSE 100: DOWN 0.5 percent at 7,105.34 points (close)