Share

Asian shares ease as global sentiment sinks

Hong Kong - Asian stocks were mostly weaker in early trade on Friday, as investors awaited the release of Chinese economic statistics and global sentiment was dampened by the upcoming Scottish independence vote and weak inflation data.

The yen was trading around six-year lows against the dollar after reaching ¥107.11 in New York on Thursday, the first time the US currency had risen past ¥107.00 since September 2008, during the global financial crisis.

Tokyo was up 0.39% after reversing earlier losses and Seoul rose 2.0%, but Hong Kong shares were flat, Shanghai slipped 0.19% and Sydney was 0.4% weaker.

China will on Saturday announce figures including retail sales and fixed asset investment for August. Data released on Thursday showed inflation easing to a four-month low, fuelling the case for a further easing in monetary policy.

"The markets are behaving in a pretty orderly manner," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

"The Nikkei might test the 16 000 mark intraday, but it would take another surge in the dollar to do it," he said, as Tokyo's headline share index reached 15 970.50 around noon.

Asian markets took their lead from US stocks which finished little changed on Thursday as concerns about the September 18 referendum on Scottish independence and weak global inflation data weighed on sentiment.

The prospect of a Scottish vote in favour of secession has sent jitters through European markets. Two banks, RBS and Lloyd's, warned they may relocate to London if Scotland separates from the United Kingdom.

The global growth outlook was seen as dimming in view of the Chinese inflation data as well as figures showing German inflation stood at 0.8% in August, its lowest level since February 2010.

China's inflation outcome, which came in well below the government's annual target, came at a time of concern over the world's second-largest economy as stimulus measures enacted earlier this year wear off.

The dollar was at ¥107.07 in morning Asian trade. The euro bought $1.2925 and ¥138.36 against $1.2919 and ¥138.39 in US trade.

On oil markets, US benchmark West Texas Intermediate for October delivery rose 15 cents to $92.98 while Brent crude for October gained 2c to $98.10.

Gold retreated to $1 234.31 an ounce, against $1 248.71 late on Thursday.

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
19.02
-0.6%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.40
+0.4%
Palladium
998.40
-0.3%
Gold
2,210.05
+0.7%
Silver
24.65
+0.0%
Brent Crude
86.09
-0.2%
Top 40
68,079
+0.6%
All Share
74,269
+0.5%
Resource 10
56,875
+2.2%
Industrial 25
103,593
+0.3%
Financial 15
16,463
-0.4%
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