Share

Asia shares mixed on Ukraine tensions

Hong Kong - Asian markets were mixed on Friday as the prospect of a military confrontation between Ukraine and Russia knocked confidence and offset forecast-beating US growth data.

While the rise in geopolitical uncertainty prompted investors to buy lower-risk assets such as the yen, despite disappointing economic figures out of Tokyo, comments from Russian President Vladimir Putin helped to soothe some fears.

Tokyo slipped 35.27 points to finish at 15 424.59 and Seoul shed 7.22 points to 2 068.54, while Sydney was flat, edging up 1.49 points to 5 625.9.

Shanghai added 21.38 points to 2 217.20 and Hong Kong was flat, edging up 1.06 points to 24 742.06.

After enjoying a rally over the past few weeks, investors were spooked by claims that Russian forces were inside Ukraine helping support pro-Kremlin separatists who have been fighting against Kiev's rule since April.

Nato said at least 1 000 Russian troops were on the ground in the country, fuelling worries of a war.

Moscow denies the accusations but US President Barack Obama said it was "plain for the world to see" that Russian forces were fighting in Ukraine. He and German Chancellor Angela Merkel warned the actions "cannot remain without consequences", raising the prospect of even more sanctions against Moscow.

However, Putin called on separatists in Ukraine to allow Ukrainian troops out of the rebel-held town of Novoazovsk, easing some tensions.

The developments overshadowed news from the Commerce Department that the US economy expanded at a 4.2% annual rate in April to June, revising upward its previous 4.0% estimate.

Positive positions

On Wall Street the S&P 500, which ended above 2 000 for the first time this week, pulled back from Wednesday's record close, shedding 0.17%. The Dow lost 0.25% and the Nasdaq dropped 0.26%.

Currency dealers shifted away from their recent positive positions, moving back into the yen, which is considered a safe option in times of uncertainty.

The dollar fetched ¥103.79 in Tokyo trade, coming off earlier lows thanks to Putin's comments as well buying by Japanese importers before month's end.

While it is a touch up from the ¥103.75 seen late in New York it is still well off the seven-month high of ¥104.20 seen earlier in the week. The euro bought $1.3173 and ¥136.74, compared with $1.3181 and ¥136.75 in New York.

The Japanese unit's gains came despite official figures showing household spending sank more than expected in July while industrial production was stagnant.

The data come after a bigger-than-expected contraction in the economy in April-June as an April sales tax hike bites into the country's recovery.

While inflation came in as forecast, analysts said the results will add pressure on the Bank of Japan to unveil fresh monetary easing measures to kickstart economic growth.

On oil markets US benchmark West Texas Intermediate for October delivery was up 32 cents at $94.87 while Brent crude for October advanced 35c to $102.81 in afternoon trade.

Gold traded at $1 285.00 an ounce at 12:54, from $1 292.23 late on Thursday.

In other markets:

- Bangkok rose 2.58 points  to 1 561.63.

Bangkok Bank dropped 0.49% to 205.00 baht, while PTT Plc was steady at 321.00 baht.

- Kuala Lumpur's main index lost 9.57 points to 1 866.11.

Petronas Gas fell 0.9% to 22.80 ringgit, while plantation giant Sime Darby shed 0.1% to 9.46.

- Jakarta ended down 47.62 points at 5 136.86.

Bank Negara Indonesia fell 1.83% to 5 350 rupiah, while Hero Supermarket climbed 0.39%to 2 550 rupiah.

- Singapore closed down 3.13 points to 3 327.09.

Oversea-Chinese Banking Corporation rose 0.91% to Sg$10.00 while agribusiness company Wilmar International gained 0.32% to Sg$3.16

- Taipei eased 42.10 points, to 9 436.27.

Smartphone maker HTC rose 1.48% to Tw$137.5 but Taiwan Semiconductor Manufacturing  lost 0.8% to Tw$124.0.

- Wellington fell 14.21 points to 5 223.30.

Air New Zealand was down 0.90% at NZ$2.195 and Fletcher Building slipped 0.97% to NZ$9.20.

- Manila closed 0.70% lower, giving up 49.81 points to 7 050.89.

Aboitiz Equity Ventures tumbled 2.23% to 54.75 pesos and SM Investments fell 3.44% to 772.00 pesos but Philippine Long Distance Telephone gained 1.83% to 3 450.00 pesos.

- Mumbai was closed for a public holiday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.04
-0.7%
Rand - Pound
23.98
-0.4%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.7%
Platinum
894.10
-0.3%
Palladium
996.00
-0.6%
Gold
2,194.02
-0.0%
Silver
24.42
-0.9%
Brent Crude
86.09
-0.2%
Top 40
67,905
+0.3%
All Share
74,106
+0.3%
Resource 10
56,200
+1.0%
Industrial 25
103,604
+0.3%
Financial 15
16,488
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders