Share

Asia markets mixed but Shanghai reopens with a bang

Hong Kong - Shanghai soared more than 1% on Monday as Chinese trading floors reopened after a long break while other Asian markets were mixed following last week's surprising fall in US jobs.

Geopolitical concerns also returned on worries North Korea will test another long-range missile and US President Donald Trump's remarks suggesting that talking to Kim Jong-Un's regime was a waste of time and "only one thing will work".

And the Turkish lira was sitting close to record lows against the dollar as Ankara and Washington each cancelled visa services for the other in a deepening diplomatic row.

Wall Street provided a meek lead for Asia, with the Dow and S&P 500 retreating from record highs in response to figures on Friday showing the US lost 33 000 posts in September - the first drop since 2010.

However, while the drop compared with a forecast gain of 75 000, analysts pointed to improving wage growth and a further dip in the overall unemployment rate.

They added that the figure was likely an aberration owing to one-off events in the hurricanes that hit Florida and Texas.

Shanghai was up 1.2% as investors returned from the week-long Golden Week celebrations and reacted for the first time to the Chinese central bank's decision to cut the amount of cash banks must hold in reserve as part of a push to help small businesses.

Sydney rose 0.8% and Wellington was up 0.5%, while Manila put on 0.4%.

However, Hong Kong retreated 0.3% and Singapore was 0.2% off.

Tokyo, Seoul and Taipei were closed for public holidays.

North Korea fears

Eyes are now turning back to the US-North Korea standoff after a Russian lawmaker said Pyongyang was planning to fire another missile, which could hit the US west coast.

"There was news over the weekend that 'the little rocket man' in North Korea is now capable of launching a missile that can hit the US mainland," Shane Channel, equity and derivatives adviser at ASR Wealth Advisers, said in a commentary referring to Trump's name for Kim.

That, added to Trump's remark, led to a return to safe-haven assets with gold up more than one percent at $1 285 on Monday.

The dollar held up against its major peers as markets continue to bet on a third interest rate hike this year, likely in December.

The pound faced fresh pressure with uncertainty surrounding Prime Minister Theresa May's future while the euro continues to struggle with the fallout from Catalonia's unofficial vote in favour of independence from Spain, fuelling fears about one of the eurozone's biggest economies.

The greenback also soared more than six percent to 3.8533 lira at one point before easing slightly as Ankara and Washington traded barbs over the arrest of a local staffer at the US embassy in Turkey.

"This latest escalation adds more fuel to the fire after tension was nearing a boil... over US support for Syrian Kurdish militants in the war against ISIS," said Stephen Innes, head of Asia-Pacific trading at OANDA.

Turkey views the Kurdish militants as a terrorist group.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

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
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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