Asian markets mixed on trade optimism, attention on Brexit
Eyes are on Brexit this week, as Britain’s prime minister Theresa May plans to reach a deal with the opposition Labour Party to avoid a hard landing.
Markets in Asia ended mixed on Monday as a strong job figures report from the United States (US) and positive updates on the US-China trade negotiations was met with expectations to a turbulent and crucial week ahead for Brexit negotiations.
Tokyo’s Nikkei 225 ended the day’s session lower by 0.21%, or 45.85 points at 21,761.65, while the Singapore Straits Times Index eased 0.30% or 9.94 points, at 3,312.70.
Hong Kong’s Hang Seng Index added 0.47% or 140.83 points, at 30,077.15, while China’s Shanghai Composite Index was flat at 3,244.81.
Markets continued the rally on Monday following Friday’s positive data from the US Labour Department which showed the creation of 196,000 net new jobs last month and a moderate wage inflation gain.
The market optimism continued further when top White House economic advisor Larry Kudlow said the US and China are getting ‘closer and closer’ to a trade deal. The top-tier officials of both nations would be talking again this week through ‘a lot of teleconferencing’, he told CBS.
Brexit week
Eyes are on Brexit this week, as Britain’s prime minister Theresa May plans to reach a deal with the opposition Labour Party to avoid a hard Brexit. The pound was higher at US$1.3058 at 8.00am Greenwich mean time on Monday, from US$1.3035 on Friday as investors expect a deal to be made.
Last week, Mrs May requested to delay Brexit until June 30 while the European Union suggested to postpone the divorce for up to a year.
Britain’s culture minister Jeremy Wright said the government will continue talks with the Labour Party on Monday to find a solution. ‘I’m entirely supportive of the prime minister’s view that she needs to find a way through this, that she’s tried everything else ... and we now need to talk about what else might work,” Mr Wright told BBC television.
‘As I understand it there will be conversations that continue today and we need those conversations to proceed and I hope (they) reach a sensible conclusion,’ he added.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
