ZCZC
BCN-36
WORLD-MARKETS-UPDATE
Asian markets rally as blockbuster quarter draws to close
HONG KONG, March 29, 2019 (BSS/AFP) – Asian markets rose Friday, putting
them on course to end the week on a positive note with investors looking past
a downgrade of US growth to focus on the next round of top-level China-US
trade talks.
While the past five days have been dogged by fears over the outlook for
the global economy, equities from Sydney to Wall Street have enjoyed a
stellar start to 2019 fuelled mostly by hopes of a tariffs deal and the
prospect of lower borrowing costs.
A slight pick-up in the key US 10-year Treasury yield provided some sense
of stability, though dealers remain on edge over the future, with data
showing the US economy grew at a much slower pace than initially thought in
October-December.
Attention is on Beijing where top Chinese and US negotiators were wrapping
up the latest batch of talks aimed at ending their long-running trade row
that has dragged on the world economy.
White House economic adviser Larry Kudlow said the negotiations were not
“time-dependent” and could be extended, adding they could take weeks or
months to get a final deal.
Treasury Secretary Steven Mnuchin wrote on Twitter Friday afternoon that
he had “concluded constructive trade talks in Beijing”. The talks are to
continue in Washington next week.
Observers have remained upbeat on the negotiations, with China having made
a number of concessions on key issues including intellectual property, while
US President Donald Trump has often said he is confident.
“Sentiment was largely positive after reports that the trade negotiations
between the US and China were improving,” said David Madden, a market analyst
at CMC Markets UK.
– ‘A bit more juice’ –
Shanghai surged 3.2 percent and Tokyo ended 0.8 percent higher, while Hong
Kong added one percent.
Seoul and Singapore each added 0.6 percent, Sydney put on 0.1 percent and
Wellington gained 0.8 percent. Taipei, Mumbai and Manila were also sharply
higher.
“Risk assets are being supported right now, in my view, by a dovish Fed, a
China stabilisation and better sentiment around geopolitical risks,” Frances
Donald at Manulife Asset Management told Bloomberg News.
MORE/HR/1446
ZCZC
BCN-37
WORLD-MARKETS-UPDATE 2 LAST HONG KONG
“That probably gives this rally a little bit more juice.”
On currency markets, the upbeat mood helped the dollar rise against the
safe-haven yen, while the pound was slightly higher on the greenback but
unable to break out of a narrow range as the Brexit saga rumbles on.
Prime Minister Theresa May is expected to try for a third time to push her
EU divorce bill through parliament after MPs voted down a number of other
options on how to leave.
However, OANDA senior market analyst Alfonso Esparza warned “the third
time is not likely to be the charm” owing to continued opposition from key
lawmakers.
“Failure for the third time could push the United Kingdom into a remain
limbo, where a credible exit could not be engineered before the European
parliament’s elections in which Britain would have to participate.”
In early trade London and Frankfurt each rose 0.6 percent, while Paris was
0.9 percent higher.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: UP 0.8 percent at 21,205.81 (close)
Hong Kong – Hang Seng: UP 1.0 percent at 29,051.36 (close)
Shanghai – Composite: UP 3.2 percent at 3,090.76 (close)
London – FTSE 100: UP 0.6 percent at 7,279.80
Pound/dollar: UP at $1.3078 from $1.3054 at 2100 GMT
Euro/pound: DOWN at 85.90 pence from 86.03 pence
Euro/dollar: UP at $1.1235 from $1.1226
Dollar/yen: UP at 110.75 yen from 110.62 yen
Oil – West Texas Intermediate: UP 23 cents at $59.53 per barrel
Oil – Brent Crude: UP 17 cents at $67.99 per barrel
New York – Dow: UP 0.4 percent at 25,717.46 (close)
BSS/AFP/HR/1448