HONG KONG, Dec 11, 2019 (BSS/AFP) – Asian markets were mixed Wednesday as
investors grow nervous at the lack of news on China-US trade talks, with
Washington yet to cancel tariffs on a swathe of Chinese goods planned for the
weekend.
With negotiators still trying to hammer out a mini agreement, the mood on
trading floors remains upbeat. Most observers have been confident the two
sides will eventually reach a deal, feeding a global equities rally for
weeks.
However, a fresh round of levies on $160 billion of Chinese exports to the
US is due to be imposed on December 15, and there has been no word from the
White House on a possible delay to that date.
The removal of tariffs is a key demand of Beijing’s in the talks.
And on Tuesday Donald Trump’s top economics adviser Larry Kudlow warned
that the measures remained in play for now.
“The reality is that those tariffs are still on the table,” Kudlow said,
although he did say that Donald Trump had struck a “constructive and
optimistic tone” on China.
The uncertainty weighed on Wall Street, with all three main indexes edging
down, and Asian dealers struggled for inspiration.
Tokyo ended the morning 0.2 percent lower, Hong Kong dipped 0.1 percent
and Wellington shed 0.3 percent.
But Shanghai added 0.1 percent, while Sydney, Taipei and Singapore each
rose 0.2 percent and Seoul gained 0.3 percent, as did Jakarta.
– New poll hits pound –
On currency markets the pound tumbled against the dollar after a fresh
poll predicted Prime Minister Boris Johnson’s ruling Conservatives would win
a much smaller majority than a previous projection.
The YouGov opinion poll said the Tories would win Thursday’s vote, with a
majority of 28 seats, sharply down from the 68 forecast in a similar study at
the end of November.
Sterling has surged in recent weeks — sitting at an eight-month high on
the greenback and a two-and-a-half-year peak against the euro — on
expectations Johnson would win a big enough majority to push through his
Brexit deal.
But the narrowing polls point to the possibility of another hung
parliament, which would lead to more uncertainty in Westminster and drag out
the Britain-EU saga even longer.
“The margins are extremely tight and small swings in a small number of
seats, perhaps from tactical voting and a continuation of Labour’s recent
upward trend, means we can’t currently rule out a hung parliament,” YouGov
political research manager Chris Curtis said.
“One thing’s for sure: when it comes to UK elections, and as history
reminds us, it’s never over till it’s over,” said AxiTrader’s Stephen Innes.
The Federal Reserve’s police decision later Wednesday is also in focus,
with the central bank’s plans for monetary policy next year being closely
watched.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 23,352.91 (break)
Hong Kong – Hang Seng: DOWN 0.1 percent at 26,419.69
Shanghai – Composite: UP 0.1 percent at 2,919.79
Euro/dollar: UP at $1.1100 from $1.1096 at 2200 GMT
Pound/dollar: DOWN at $1.3134 from $1.3182
Euro/pound: UP at 84.47 pence from 84.18 pence
Dollar/yen: DOWN at 108.72 yen from 108.74 yen
West Texas Intermediate: DOWN 29 cents $58.95 per barrel
Brent North Sea crude: DOWN 40 cents at $63.94 per barrel
New York – Dow: DOWN 0.1 percent at 27,881.72 (close)
London – FTSE 100: DOWN 0.3 percent at 7,213.76 (close)