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Asian markets swing but trade deal keeps mood buoyant
HONG KONG, Dec 20, 2019 (BSS/AFP) – Asian markets fluctuated on Friday as
investors await fresh catalysts to drive business, though with the China-US
trade deal out the way and Christmas approaching many are in wind-down mode.
Wall Street provided yet another record-breaking lead, with all three main
indexes being helped to all-time highs by news that a revised US-Canada-
Mexico pact had finally been agreed.
Concerns that pen had not yet been put to paper on the China-US pact were
soothed by US Treasury Secretary Steven Mnuchin, who said a technical review
was taking place and it would be signed in early January.
Regional equities swung back and forth through the morning session, with
investors now turning an eye to the festive break and observers indicating
next year could see further gains.
“Agreement of the phase one deal between the US and China has removed
quite a lot of the uncertainties in the outlook for 2020,” said Stephen
Innes, senior market analyst at AxiTrader. “And with the global growth
revival trade looking better and better by the day, equity investors are
revelling in the holiday cheer.”
In early trade Hong Kong was up 0.4 percent and Shanghai put on 0.2
percent, while Singapore and Wellington each added 0.1 percent, and Seoul
also rose 0.3 percent.
Tokyo eased 0.3 percent by the break, while Sydney was down 0.2 percent,
with Taipei and Manila also in the red.
On currency markets the pound continued to struggle against the dollar
after British Prime Minister Boris Johnson this week revived no-deal Brexit
worries by saying he wanted to pass a law preventing an extension to the next
phase of EU talks.
Sterling has plunged below levels it was at before last week’s landslide
win for the premier, who said he wants a full break by the end of next year,
raising the chances of leaving without a trade deal in place.
Adding to downward pressure on the British unit was the Bank of England
leaving the door open for an interest rate cut next month as it assesses the
outlook for the economy.
Observers said there was a two-thirds chance of a reduction in borrowing
costs.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.3 percent at 23,804.93 (break)
Hong Kong – Hang Seng: UP 0.4 percent at 27,903.80
Shanghai – Composite: UP 0.2 percent at 3,023.43
Pound/dollar: UP at $1.3015 from $1.3008 at 2200 GMT
Euro/pound: DOWN at 85.42 pence from 85.48 pence
Euro/dollar: DOWN at $1.1118 from $1.1121
Dollar/yen: DOWN at 109.31 yen from 109.36 yen
Brent North Sea crude: UP four cents at $66.58 per barrel
West Texas Intermediate: DOWN eight cents at $61.10 per barrel
New York – Dow: UP 0.5 percent at 28,376.96 (close)
London – FTSE 100: UP 0.4 percent at 7,573.82 (close)
BSS/AFP/HR/0924