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Asian markets mostly up as traders look for China-US progress
HONG KONG, Sept 24, 2019 (BSS/AFP) – Asian markets crept up Tuesday but
dealers remain on edge following contrasting economic data out of Europe and
the US as investors await developments in the China-US trade standoff.
After last week’s dovish shift by global central banks, dealers are in
wait-and-see mode, with the key focus now on whether Washington and Beijing
can find a solution to their long-running tariffs spat.
Optimism over the issue took a jolt at the weekend when Donald Trump said
he did not want to make a piecemeal deal — an option that had been floated –
– and instead was determined to sign a complete agreement. He also said he
saw no need to strike it before the November 2020 election.
Top-level negotiations are due to start in Washington next month.
Observers said there was some relief that a Chinese delegation’s visit to
farms in rural US was cancelled at the request of Treasury officials. News of
the cancellation last week hit New York stocks as dealers feared another
breakdown in talks.
European markets ended with deep losses after figures indicating a sharp
contraction in German factory activity last month, marking the worst in a
decade for the region’s biggest economy.
But that was followed by figures showing a slight pick-up in US
manufacturing, easing concerns about a feared weakening of the world’s top
economy.
There is a worry that the readings could tempt the Federal Reserve from
pushing on with further interest rate cuts, though comments from a number of
bank board members.
Hong Kong gained 0.5 percent after six days of losses and Shanghai rose 0.2
percent, while Tokyo went into the break 0.2 percent higher.
Sydney and Seoul edged up slightly, while Singapore put on 0.3 percent and
Taipei was flat. Wellington and Manila dropped while Jakarta lost one
percent.
Forex traders will be keeping a close eye on London, where judges will rule
on whether Prime Minister Boris Johnson’s decision to call an extended
parliamentary recess was legal ahead of an October 31 Brexit date.
With British and EU leaders still unable to break the deadlock there is
growing concern that Britain will leave without a deal, despite a move by MPs
to prevent such a scenario.
“Expect fireworks on the British pound… with the UK Supreme Court due to
release its ruling on the proroguing of Parliament,” said OANDA senior
markets analysts Jeffrey Halley.
The pound dipped against the dollar and euro in Asian trade.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.2 percent at 22,131.77 (break)
Hong Kong – Hang Seng: UP 0.5 percent at 26,351.87
Shanghai – Composite: UP 0.2 percent at 2,982.62
Euro/dollar: DOWN at $1.0988 from $1.0992 at 2100 GMT
Pound/dollar: DOWN at $1.2430 from $1.2434
Euro/pound: UP at 88.41 pence from 88.40 pence
Dollar/yen: UP at 107.60 yen from 107.49
West Texas Intermediate: DOWN 19 cents at $58.45 per barrel
Brent North Sea crude: DOWN 20 cents at $64.57 per barrel
New York – Dow: UP 0.1 percent at 26,949.99 (close)
London – FTSE 100: DOWN 0.3 percent at 7,326.08 (close)
BSS/AFP/GMR/1222 hrs