Business

Asia shares up, dollar back in doldrums

Syndicated News
Written by Syndicated News

SINGAPORE, Aug 17 2017 : Asian stocks edged up today as tensions between the U.S. and North Korea came off the boil, while worries about President Donald Trump’s ability to implement his pro-growth agenda and the Federal Reserve’s concerns about low U.S. inflation hit the dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 percent in early trade.

Japan’s Nikkei .N225 slipped 0.1 percent, weighed down by the yen’s strength.

South Korean shares .KS11 advanced 0.1 percent after the leaders of both North Korea and the United States appeared to back off from their heated rhetoric from last week.

Trump yesterday praised North Korean leader Kim Jong Un for a “wise” decision not to fire missiles toward the U.S. Pacific territory of Guam, after North Korean media reported that Kim had delayed to decision while he waited to see what the U.S. did next.

While that helped Wall Street close in positive territory overnight, concerns on the home front left the dollar in the doldrums.

Trump announced the disbanding of two high-profile business advisory councils yesterday after eight executives quit in protest over his remarks blaming weekend violence in Virginia not only on white nationalists but also on anti-racism activists who opposed them.

Moreover, minutes from the Fed’s July meeting released yesterday showed the central bank grew more wary about recent weak inflation, with some policymakers wanting to halt interest rate hikes until it was clear the trend was temporary.

“The Federal Open Market Committee minutes confirmed one thing, which is that the committee members are not on the same page and there is no clear date when the Fed will initiate the process of reducing the size of the balance sheet,” Naeem Aslam, chief market analyst at Think Markets in London, wrote in a note.

“Trump dissolving his major business groups makes the investment community even more pessimistic because this sets the stage for even more failure for him,”

The dollar fell 0.1 percent to 110.04 yen JPY= in early trade, extending yesterday’s 0.4 percent slide.

The dollar index, which tracks the greenback against a basket of six major peers, was marginally lower at 93.501 after yesterday’s 0.3 percent loss.

The euro EUR=EBS was steady at $1.1767, adding to its 0.3 percent gain overnight, after the euro zone’s second-quarter growth was revised to 2.2 percent from a year earlier, from 2.1 percent previously.

Bitcoin BTC=BTSP, which has surged over $1,500 this month on speculative demand for the digital currency, retained most of those gains today.

It was about 0.2 percent lower at $4,368.73, within a whisker of its all-time high of $4,400 touched earlier this week.

In commodities, oil prices edged up but remained close to a 3-1/2 week low touched yesterday as rising U.S. production offset a decline in stockpiles by the most in a year.

U.S. crude was about 0.1 percent higher at $46.85 a barrel, failing to make up yesterday’s 1.6 percent slide.

Global benchmark Brent gained 0.25 percent to $50.41, after the previous session’s 1 percent drop.

Benchmark zinc on the London Metal Exchange was up 0.1 percent from its previous close at $3,121 a ton, having touched a decade-high of $3,132.50 overnight.

London copper gained 0.2 percent to $6,541 a ton, after hitting $6,576.50, its highest level since November 2014, overnight.

Gold crept up 0.1 percent to $1,283.61 an ounce, adding to Wednesday’s 0.9 percent jump.

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Syndicated News

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