Article / 24 August 2017 at 7:00 GMT

Morning Markets: Asia-Pacific shares mixed after US stocks dip

Consulting editor / TradingFloor
Norway







MM TABLE

 

Watchlist

  • Norway: GDP (published)
  • France: Monthly business survey of goods-producing industries (published)
  • UK: GDP second estimate (0830 GMT)
  • UK: CBI Distributive Trades Index (1000 GMT)
  • US: Weekly jobless claims (1230 GMT)
  • US: Existing home sales (1400 GMT)
  • US: EIA weekly natural gas storage report (1430 GMT)

Asia-Pacific stocks were mixed on Thursday, with US fiscal uncertainty and overnight losses for Wall Street shares weighing on sentiment in the region.

US stocks fell on Wednesday after US president Donald Trump warned on Tuesday of a possible government shutdown if he does not get his way on a border wall against Mexico.

Japan's Nikkei 225 retreated, while Australia's S&P/ASX200 managed to creep into positive territory on Thursday. Investors in Seoul and Hong Kong shrugged off Washington's fiscal woes; Korea's Kospi Composite and Hong Kong's Hang Seng jumped.

Meanwhile, the Fed's much-awaited Jackson Hole summit, which kicks off today, will attract plenty of attention, to see if US or European central bankers drop any hints about monetary policy or just take the academic escape route.

The Fitch rating agency said on Wednesday that it could put the US’s AAA sovereign rating on review for a downgrade if the US Congress fails to raise the country’s debt ceiling in time.


Market signals

Asian session

  • The Fed's three-day Jackson Hole summit kicks off today
  • ECB president Mario Draghi will speak at the summit on Friday
  • Japan's Nikkei 225 retreated; it was down 0.30% to 19,376.01 at 0502 GMT
  • Korea's Kospi Composite was up 0.39% to 2,375.65 at 0500 GMT
  • The Hong Kong Stock Exchange reopened after Typhoon Hato halted trading for a day
  • Hang Seng surged higher; it was up 0.57% to 27,557.85 at 0520 GMT
  • Samsung hopes to leave its troubles behind it with its new Galaxy Note 8 phone
  • Nickel prices hit an eight-month high on expectations of strong demand from China
  • Gold edged down to trade at $1,290.35/oz; it reached a high of $1,291.17 overnight
  • S&P/ASX200 rebounded from an early fall; it closed up by a slim 0.05% at 5,740.10
  • BHP is selling shale oil assets, in line with share activist pressure on the resources giant
  • NZ recorded a rare July trade surplus of $NZ85mln helped by dairy export prices
  • Brazil has given the green light to mining in a large Amazon reserve

Forex ahead

  • FX traders will watch Jackson Hole closely for any hints of monetary policy plans
  • USD edged higher against the yen; it was worth ¥109.1320 at 0548 GMT
  • The fragile AUD retreated; it was worth 0.7896 at 0548 GMT 

From the Floor

GBP woes. “We are seeing really pronounced sterling weakness as the Brexit negotiations are putting the EU in the driver’s seat,” says Hardy.

Gold stuck. “We are still looking for the elusive break, and a break is what it needs in order to avoid long liquidation from funds,” says Hansen.

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

1..2..3
If today’s UK survey data for the retail industry ticks lower, that will weigh on the outlook for the August hard-data update on retail spending due next month, says James Picerno.

Echoing concerns
Janet Yellen may address similar concerns to former Fed chairman Alan Greenspan's in her speech at the Jackson Hole summit on Friday, writes Max McKegg.

Mysterious Mario
Mario Draghi’s speech in Lindau, Germany, gave few clues about ECB thinking on monetary policy or what Draghi might say at Jackson Hole, says the Saxo APAC Sales Trading team.

Booming bond issuance
Low interest rates and hunger for yields are driving a boom in corporate high-yield bond issuance as companies increasingly turn to bond markets to pay lower rates, writes Althea Spinozzi.

Commodities at risk
Industrial and energy commodities are at risk of a 'Trump dump' as markets have largely lost faith in Trump's campaign promises for a surge in infrastructure spending, says Stephen Pope.


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The skies are clearing after Typhoon Hato, which brought trading to a halt on the stock exchange in Hong Kong, above, and wrought havoc in southern China. Photo: Shutterstock

 

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