Left Menu
Development News Edition

Asian markets mixed as focus moves to China-US pact


Asian markets mixed as focus moves to China-US pact
Image Credit: StoryBlocks

Asian markets were mixed Monday as investor attention turned from the Middle East to the global economic outlook and this week's planned signing of the China-US trade pact. While the optimism that characterised the end of 2019 is returning to trading floors, dealers were left a little disappointed by a below-par jobs report out of Washington, which also showed a slower pace of wage growth.

All three main indexes on Wall Street ended in negative territory following the reading, with profit-taking also playing a role, having hit new record highs. However, analysts pointed out that while the data missed expectations, it did suggest that the Federal Reserve will likely maintain interest rates at low levels for some time to come, with some tipping the next move could be another cut.

In early trade, Hong Kong rose 0.2 per cent, Singapore added 0.1 per cent, Seoul jumped 0.6 per cent and Jakarta gained 0.2 per cent. Taipei rose 0.4 per cent after Tsai Ing-wen won a landslide victory at the weekend and was returned as the island's president for a second term, with investors cheering the removal of uncertainty caused by the election.

The Taiex is sitting at its highest levels in three decades, while the Taiwan dollar is also at an 18-month peak, boosted by government moves to attract foreign cash and encourage local firms to invest at home. Among other bourses, Shanghai fell 0.4 per cent, Sydney shed 0.6 per cent and Wellington slipped 0.2 per cent. Tokyo is closed for a holiday.

Focus this week is on Washington, where China and the US will finally put pen to paper on their much-vaunted "phase one" trade deal, which has lowered tensions between the economic superpowers and boosted hopes for the global economy. While there are not expected to be any major announcements at the signing, investors will be looking for signs of progress on the next part of negotiations for a wider agreement.

"Provided the deal inks a commitment from China to increase agricultural products and outlines a dependable enforcement mechanism, the market will go merrily along the way," said AxiTrader's Stephen Innes. "Traders are probably not too concerned about a currency pact as China should hold the line on any weakness in the yuan as we roll forward to negotiating phase two." On foreign exchanges, the dollar was down against most high-yielding, riskier units as confidence returns to markets after the volatile start to the year, with the Indonesian rupiah and the South Korean won among the best performers, rising 0.5 per cent apiece.

Oil prices dropped again on waning concerns about Middle East supplies, rising US shale production and following a pick-up in output from non-OPEC countries such as Norway.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

How can technology help the future of mobility?

More than a billion people or one-third of the global rural population lacked access to all-season roads and transport services in 2016, subsequently hindering the socio-economic development....

Videos

Latest News

NHL roundup: Crosby’s 4 points lead Pens into 1st

Sidney Crosby had a goal and three assists, and Bryan Rust added a goal and two assists Tuesday night as the Pittsburgh Penguins downed the visiting Toronto Maple Leafs 5-2. Pittsburgh won its NHL-best 22nd home game and moved into first pl...

Coronavirus weakens demand, disrupts supply chains for China's manufacturing

Moodys Investors Service said in a new report on Wednesday that the coronavirus outbreak has weakened demand and disrupted supply chains in the component, consumer electronics, consumer durables manufacturing and packaged goods sectors. Dem...

Cricket-Penpix of leading players at the Women T20 World Cup

Penpix of 10 leading players at the Womens Twenty20 World Cup cricket tournament, which starts in Australia on Friday Ellyse Perry AustraliaThe face of the tournament, hard-hitting all-rounder Perry has a test double century to her name and...

MEIL Rewrites Engineering History With its Kaleshwaram Lift Irrigation Scheme

HYDERABAD, India, Feb. 19, 2020 PRNewswire -- Infrastructure giant Megha Engineering Infrastructure Limited MEIL has rewritten the engineering history with its record-breaking performance in executing worlds biggest Kaleshwaram Lift Irriga...

Give Feedback