Monday, September 30th, 2019

Asian markets mixed ahead of China anniversary

Published 2:01 pm | September 30, 2019

Asian markets had a mixed start on Monday as Beijing posted manufacturing data that was better than expected,
but investors remained cautious ahead of a week-long patriotic holiday in China and after reports last week raised fears of a fresh escalation in its trade war with the US.

China’s factory activity is still underperforming but data released by the National Bureau of Statistics showed a month-on-month rise that exceeded forecasts. The Asian giant celebrates 70 years since the founding of communist China on Tuesday, with markets taking a break from October 1 to 7, and planned protests in Hong Kong threatening to disrupt the festivities.

On Friday, stocks fell into the red after multiple US media reports said President Donald Trump was mulling severe new restrictions on investment in China, as the trade conflict between the world’s two biggest economies stretches into its second year.

Stephen Innes, Asia Pacific market strategist at AxiTrader, said a US Treasury statement released Saturday, which said there were no current plans to stop Chinese companies from listing on US exchanges, had calmed nerves. “However, the statement didn’t exactly clarify the White House position, nor did it rule out other courses of action,” he said in a note.

“Unquestionably, floating this story at a time when US-China harmony is most needed suggests the US administration isn’t exactly rolling out a red- carpet welcoming party for China’s high-level trade negotiators.” The threats appeared intended to ratchet up pressure on Beijing to strike a bargain. Trump has said in recent weeks that China may be holding off on reaching a trade deal, betting that he will not be re-elected next year.

Shanghai was down 0.2 percent and Hong Kong fell on opening but later recovered, after one of the most violent weekends the semi-autonomous city has seen in a summer of unrest. Pro-democracy protesters in the financial hub are hoping to disrupt Beijing’s celebrations on Tuesday with further mass rallies.

Tokyo slumped by 0.5 percent, with analysts saying stocks were weighed down by losses in the US market. Sydney and Seoul were up but Jakarta and Singapore also saw declines. “Asia is refusing to bite on the Trump threats to delist Chinese companies on US exchanges that came out on Friday and saw Wall Street finish in the red,” said Jeffrey Halley, senior market analyst at OANDA.

“In China’s case, ahead of the 70th birthday celebrations tomorrow, ‘officialdom’ is likely to ensure that Mainland indices finish the day flat at worst,” he added.

– Key figures around 0315 GMT –

Hong Kong – Hang Seng: UP 0.2 percent at 25,997.87

Shanghai – Composite: DOWN 0.2 percent at 2,927.049

Tokyo – Nikkei 225: DOWN 0.5 percent at 21,780.20 (break)

London – FTSE 100: UP 1.0 percent at 7,426.21 (close)

New York – Dow: DOWN 0.3 percent at 26,820.25 (close)

Euro/dollar: DOWN at $1.0932 from $1.0941 at 2030 GMT

Pound/dollar: DOWN at $1.2287 from $1.2293

Euro/pound: DOWN at 88.97 pence from 89.01 pence

Dollar/yen: DOWN at 107.92 yen from 107.95

Brent North Sea crude: UP 3 cents at $61.94 per barrel

West Texas Intermediate: UP 12 cents at $56.03 per barrel


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দৈনিক সময় সংবাদ ২৪ ডট কম সংবাদের কোনো সংবাদ, তথ্য, ছবি,আলোকচত্রি, ভিডিওচিত্র, অডিও কনটেন্ট কপিরাইট আইনে র্পূব অনুমতি ছাড়া ব্যবহার করা সর্ম্পূণ বেআইনি। সামাজিক যোগাযোগ মাধ্যমে যে কোন কমেন্সের জন্য কর্তৃপক্ষ দায়ী নয়।