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Asian markets edge down on low-key storm-hit day

With trading suspended for part of the day in Hong Kong because of rain storms and investors elsewhere across the region feeling ‘under the weather’ too, there was a subdued air on the trading floors


Most Asian markets rose on Friday.
Most Asian markets rose on Friday. AFP file photo.

With trading suspended for part of the day in Hong Kong because of rain storms and investors elsewhere across the region feeling ‘under the weather’ too, there was a subdued air on the trading floors

 

Asian stocks struggled to keep pace with Wall Street on Monday and slipped fractionally though the long-term mood remained positive with investors reassured by last week’s calming messages form the Fed.

Traders across the region took a breather after last week’s rallies – particularly in Hong Kong where a super storm saw some trading sessions suspended – while still keeping tabs on Federal Reserve monetary policy plans.

The bipartisan agreement between US lawmakers on Thursday over the huge infrastructure deal provided an extra boost to already upbeat investors, who have also been responding positively to Fed pledges to maintain record-low interest rates and vast bond-buying for as long as the recovery needs.

 

Also on AF: Hong Kong suspends trading amid ‘black’ rain warning

 

Even a sharp spike in a closely watched gauge of consumer spending for May was taken in its stride on trading floors, with much of the surge being attributed to rallying energy costs.

But while there was another record close on Wall Street, Asia struggled to maintain any momentum.

Tokyo, Hong Kong, Wellington, Manila, Mumbai, Bangkok and Jakarta all eased, while Shanghai, Sydney and Seoul barely moved. Singapore and Taipei rose.

Hong Kong’s storm-hit day saw the Hang Seng Index drop 0.07%, or 19.92 points, to 29,268.30.

 

BIDEN’S PLAN

The benchmark Shanghai Composite Index was flat, inching down 1.19 points to 3,606.37, while the Shenzhen Composite Index on China’s second exchange added 0.88%, or 21.58 points, to 2,463.66.

Tokyo’s key Nikkei 225 index closed slightly lower Monday on profit-taking, with few fresh market-moving events following a mixed close on Wall Street.

The benchmark Nikkei 225 index inched down 0.06% or 18.16 points to end at 29,048.02, while the broader Topix index advanced 0.15% or 3.02 points to 1,965.67.

Traders though won’t be taking their eyes off Washington after Joe Biden, the Democrats and Republicans came together for a rare agreement on a near $1 trillion roads and bridges plan.

 

‘MARKET VOLATILITY’

But with Republicans remaining edgy over other ‘social’ investments attached to the plan National Australia Bank’s Ray Attrill predicted that “developments promise to be one source of market volatility in the week ahead”.

Investors will also be keeping an eye on the release this week of key manufacturing data from around the world for a better grip on the state of the economic recovery, while crucial US jobs figures are also due.

Oil prices were flat, having hit multi-year highs last week on demand optimism, while traders are awaiting the monthly meeting of OPEC and other top producers on Thursday, which is expected to see them lift output to ease fears over falling supplies.

Bitcoin rose as investors shrugged off the UK financial watchdog’s decision to ban cryptocurrency exchange Binance, as the digital money faces growing scrutiny.

 

MARKETS

Tokyo – Nikkei 225: DOWN 0.1% at 29,048.02 (close)

Hong Kong – Hang Seng Index: DOWN 0.1% at 29,268.30 (close)

Shanghai – Composite: FLAT at 3,606.37 (close)

New York – Dow: UP 0.7% at 34,433.84 (close)

 

  • Reporting by AFP

 

Read more:

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Bangkok building sites sealed off to contain Covid outbreak

 

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