Breaking News
Home | Business | Markets | Asian markets mixed but trade standoff back in spotlight

Asian markets mixed but trade standoff back in spotlight

WT24 Desk

HONG KONG – Asian markets were mixed on Friday but about the China-US trade talks returned to the fore after a report said Beijing officials had raised doubts about the chances of a long-term deal, AFP reports.

Investors were also spooked by a speech by Secretary of State Mike Pompeo,
in which he called China “truly hostile” to the US, leading Beijing to accuse
the White House of “viciously” attacking it.

The flare up comes just as the two sides put the finishing touches to a
mini trade pact that seen as the first phase of a wider agreement, with top-
level phone talks due to take place later Friday.

Recent signs of progress on the long-running dispute had provided some
much-needed support to equity markets in recent weeks, with most markets
posting some healthy gains.

Wall Street, where the S&P 500 had hit a record high Wednesday, turned
lower after Bloomberg News reported that Chinese officials were sceptical
they would be able to reach a comprehensive long-term deal.

It said they warned they would not budge on key issues, while they were
also concerned about Donald Trump’s impulsiveness and were even worried about the chances of getting the current agreement finished.

“The article proved a not-too-subtle reminder of how quickly trade war
sentiment can pivot and highlighting those fears that we all knew about but
were perhaps was too wrapped up (in) the phase one euphoria to recognise,”
said AxiTrader’s Stephen Innes.

“Specifically, the trust gap is the bridge too far and what’s going on
behind the shiny veneer of an apparent trade detente, the thorny Hong Kong protest bill,” he added, referring to US lawmakers passing a bill defending civil rights in the financial hub.

– US jobs in focus –

And National Australia Bank’s Ray Attrill added that expectations would be
low for anything past phase one being agreed ahead of the 2020 presidential election.

“Yet some market participants evidently held the view that passage of phase
one could quickly lead to progress on Phase Two next year,” he said.

Also Thursday, Pompeo hit out at China’s clampdown on Hong Kong protests and incarceration of Uighur Muslims, and said Beijing was seeking
international domination. China responded by accusing the US of “arrogance and fear”.

Asian markets started in negative territory but saw some bounce as the
morning wore on.

Hong Kong rose 0.4 percent as dealers brushed off a much-sharper-than-
expected dive in third quarter economic growth as the city is battered by the trade war and months of sometimes violent protests that have hammered its tourism and retail sectors.

Shanghai rose 0.2 percent, Seoul added 0.5 percent and Sydney edged up 0.1
percent.

However, Tokyo and Singapore each retreated 0.4 percent, while Wellington and Jakarta were also lower.

Attention now turns to the release later in the day of US jobs figures,
which will give a fresh idea about the state of the US economy.

They come days after the Federal Reserve cut interest rates for a third
straight month but hinted it would not likely do so again this year as it
assesses the growth outlook.

Oil prices edged up slightly, having tumbled more than one percent Thursday on the trade talks fears as well as another jump in US stockpiles.

– Key figures around 0245 GMT –

Tokyo – Nikkei 225: DOWN 0.4 percent at 22,833.23 (break)

Hong Kong – Hang Seng: UP 0.3 percent at 26,997.41

Shanghai – Composite: UP 0.2 percent at 2,934.51

Pound/dollar: UP at $1.2946 from $1.2946 at 2040 GMT

Euro/pound: DOWN at 86.12 pence from 86.12 pence

Euro/dollar: DOWN at $1.1149 from $1.1149

Dollar/yen: DOWN at 108.00 yen from 108.00 yen

West Texas Intermediate: UP 17 cents at $54.35 per barrel

Brent North Sea crude: UP six cents at $59.68 per barrel (new contract)

New York – Dow: DOWN 0.5 percent at 27.046.23 (close)

London – FTSE 100: DOWN 1.1 percent at 7,248.38 (close)

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

Bourses edge down

WT24 Desk DHAKA – Country’s premier bourse, Dhaka Stock Exchange (DSE) today closed with further ...

Bourses extend upward vibe for five straight sessions

WT24 Desk Country’s premier bourse, Dhaka Stock Exchange (DSE), today observed a superb session and ...