Concerns
about contagion from emerging markets (EM) fray investor nerves and
possibility of further escalation in US tariff crisis with China on
Thursday caused
a mix in Asian equities.
about contagion from emerging markets (EM) fray investor nerves and
possibility of further escalation in US tariff crisis with China on
Thursday caused
a mix in Asian equities.
And
while Emerging Markets (EM) currencies, which have taken a battering in
recent weeks, enjoyed a much-needed breather, there are warnings of
further pain
to come in foreign exchanges.
while Emerging Markets (EM) currencies, which have taken a battering in
recent weeks, enjoyed a much-needed breather, there are warnings of
further pain
to come in foreign exchanges.
Worries
that financial crises in Argentina, South Africa and Turkey will spill
over into major economies fuelled a blood-letting across Asia on
Wednesday, which
filtered through to Europe.
that financial crises in Argentina, South Africa and Turkey will spill
over into major economies fuelled a blood-letting across Asia on
Wednesday, which
filtered through to Europe.
“Contagion
is a normal reaction,” George Boubouras, director at Salter Brothers
Asset Management, said on Bloomberg Television. The contagion “will get
worse”,
he warned.
is a normal reaction,” George Boubouras, director at Salter Brothers
Asset Management, said on Bloomberg Television. The contagion “will get
worse”,
he warned.
Wall
Street ended mixed with the Dow edging up but the Nasdaq took a hit
from a sell-off in tech firms as top officials at Facebook and Twitter
struggled in
congressional testimony and the White House warned of a possible legal
crackdown.
Street ended mixed with the Dow edging up but the Nasdaq took a hit
from a sell-off in tech firms as top officials at Facebook and Twitter
struggled in
congressional testimony and the White House warned of a possible legal
crackdown.
Trump
“has the tech giants in his sights” following his claims of political
bias against conservatives, said Greg McKenna, chief market strategist
at AxiTrader.
“has the tech giants in his sights” following his claims of political
bias against conservatives, said Greg McKenna, chief market strategist
at AxiTrader.
“That’s
important for global markets because the only thing between where we
are today and a complete rout is the relative stability of US stocks.
And we know
a big chunk of the S&P’s rally has been the performance of tech
stocks whose rally has been going increasingly vertical.”
important for global markets because the only thing between where we
are today and a complete rout is the relative stability of US stocks.
And we know
a big chunk of the S&P’s rally has been the performance of tech
stocks whose rally has been going increasingly vertical.”
In
equity trading, Tokyo ended the morning 0.2 per cent lower, while Hong
Kong shed 0.4 per cent in early exchanges. Sydney fell 0.9 per cent and
Wellington
lost 1.3 per cent.
equity trading, Tokyo ended the morning 0.2 per cent lower, while Hong
Kong shed 0.4 per cent in early exchanges. Sydney fell 0.9 per cent and
Wellington
lost 1.3 per cent.
Shanghai added 0.4 per cent, Seoul rose 0.2 per cent and Singapore was slightly higher.
Manila plunged 1.7 per cent but Jakarta, which lost more than three per cent Wednesday, was 0.5 per cent higher.
On
currency markets, the Indonesian rupiah edged up after hitting its
lowest level since the Asian financial crisis 20 years ago, while the
Mexican peso and
South African rand also posted gains.
currency markets, the Indonesian rupiah edged up after hitting its
lowest level since the Asian financial crisis 20 years ago, while the
Mexican peso and
South African rand also posted gains.
However,
McKenna warned that pressure remains on traders and said “any hiatus in
the forex universe is just a little calm in an enduring storm”.
McKenna warned that pressure remains on traders and said “any hiatus in
the forex universe is just a little calm in an enduring storm”.
While
the emerging market sell-off is in focus, Donald Trump’s trade rows
continue to play out, with a public consultation on his threatened
tariffs on $200
billion of Chinese goods ending later in the day.
the emerging market sell-off is in focus, Donald Trump’s trade rows
continue to play out, with a public consultation on his threatened
tariffs on $200
billion of Chinese goods ending later in the day.
Investors
are keeping a nervous eye on Washington after the president said last
month he wanted to impose the levies as soon as the deadline passes.
are keeping a nervous eye on Washington after the president said last
month he wanted to impose the levies as soon as the deadline passes.
And
talks between the Washington and Ottawa on the revised North American
Free Trade Agreement are continuing, with Canada’s foreign minister
Chrystia Freeland
saying the two are making “good progress”.
talks between the Washington and Ottawa on the revised North American
Free Trade Agreement are continuing, with Canada’s foreign minister
Chrystia Freeland
saying the two are making “good progress”.
Trump
has repeatedly threatened to leave Canada out of a revised NAFTA, after
a deal between the US and Mexico was struck early last week.
has repeatedly threatened to leave Canada out of a revised NAFTA, after
a deal between the US and Mexico was struck early last week.
