Asian indexes slide as investors await China trade data

09-Nov-2017 Intellasia | CNBC | 6:00 AM Print This Post

Asian markets were pressured in early Wednesday trade after Wall Street closed narrowly mixed in the last session. Major data due in the day includes the release of China’s October trade balance.

Markets on the move

Japan’s Nikkei 225 lost 0.46 percent in early trade a day after the benchmark index hit a 26-year high.

Across the Korean Strait, the Kospi was mostly flat, trading 0.03 percent below the flat line. Gains in blue chip names offset losses in financials and retailers: Samsung Electronics edged up 0.32 percent, SK Hynix gained 1.46 percent and Lotte Shopping fell 1.48 percent.

Down Under, the S&P/ASX 200 edged down 0.16 percent as mining stocks pared gains made in the last session. The heavily-weighted financials sub-index held in the green to trade higher by 0.46 percent.

Commonwealth Bank announced unaudited net profit for the three months ending September climbed to 2.8 billion Australian dollars ($2.14 billion). Cash earnings for the quarter rose 6 percent to A$2.65 billion ($2.03 billion). Commonwealth shares rose 1.87 percent, outperforming other banking stocks, which turned in a mixed performance.

Asian corporates on the earnings calendar on Wednesday include CapitaLand, Nissan, and Hong Kong Exchanges and Clearing.

US markets closed mixed on Tuesday as investors digested news that Disney had been in discussions with 21st Century Fox over a deal, although it wasn’t certain any agreements would result from that.

The Dow Jones industrial average edged up 0.04 percent, or 8.81 points, to close at 23,557.23. Other major indexes finished below the flat line.

The lead up

President Donald Trump is scheduled to address the Korean National Assembly on Wednesday as his five-country tour of Asia rolled on. In Seoul on Tuesday, Trump had called North Korea a “worldwide threat,” but toned down his earlier rhetoric on dealing with the hermit state. Trump is expected to arrive in China later in the day.

Stateside, Senate Republicans are slated to unveil their tax bill, with one senator telling NBC News the proposal would be released on Thursday. It remained unclear what the exact date of the release would be. Senate Majority Leader Mitch McConnell had said the plan would be unveiled on Friday, but a spokesman later said that he had misspoken. The draft House tax bill was released last week.

The dollar was little changed on Wednesday. The dollar index, which tracks the greenback against a basket of six currencies, stood at 94.812 at 8:21 a.m. HK/SIN, against Tuesday’s close of 94.848. Against the yen, the US currency edged down to trade at 113.75.

Corporate news

Toyota raised its full-year operating profit estimate to 2 trillion yen on Tuesday. That was an 8 percent increase compared to its previous forecast of 1.85 trillion yen. Toyota shares tacked on 1.2 percent as other automakers trended lower on the day.

Meanwhile, Tencent’s China Literature is set to debut in Hong Kong on Wednesday. Shares of the online e-book platform will trade at 55 Hong Kong dollars ($7.05) apiece.

The commodities trade

Oil prices edged down after climbing to their highest levels since mid-2015 earlier in the week. US West Texas Intermediate crude shed 0.24 percent to trade at $57.06. Brent crude futures slid 0.9 percent to settle at $63.69 a barrel in the last session.

Oil had settled 3 percent higher on Monday following a supposed anti-corruption purge in Saudi Arabia and the surprise resignation of former Lebanese prime minister Saad Hariri over the weekend.

What’s on tap

Here’s the economic calendar for Wednesday (all times in HK/SIN):

3:05 p.m.: Bank of Thailand interest rate decision

4:00 p.m.: Indonesia September retail sales

China October balance of trade is due during the day


Category: FinanceAsia

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