Asian markets hit by profit-taking, more weak China data | 2019-01-15 | daily-sun.com

Asian markets hit by profit-taking, more weak China data

    14th January, 2019 09:40:32 printer

HONG KONG: Hong Kong led a sell-off across Asian markets Monday as profit-takers moved in following a six-day rally, while dealers were also spooked by another disappointing batch of weak economic data out of China.

With few catalysts to drive buying, equities were ripe for selling after last week’s healthy gains, with the US government shutdown — now in its fourth week and showing no sign of ending soon — instilling a sense of unease, reports AFP.

Also on the agenda is Tuesday’s key Brexit vote, with British Prime Minister Theresa May making an 11th hour appeal to MPs to pass her agreement with the EU, which is expected to be voted down by a wide margin.

Hong Kong finished down 1.4 percent after chalking up gains of more than six percent over the previous six trading days, while Shanghai ended down 0.7 percent and Singapore lost 0.5 percent.

Taipei was 0.5 percent lower, Mumbai lost 0.8 percent and Jakarta shed 0.9 percent. Sydney was marginally lower but Wellington and Manila rose, while Tokyo was closed for a holiday.

The losses follow a negative lead from Wall Street, where all three main indexes fell Friday, ending a healthy week that had been boosted by optimism that China and the US are edging towards a trade deal, while the Federal Reserve indicated it could pause its interest rate hikes.

Trifecta Consultants analyst Sukrit Vijayakar said the “optimism surrounding the US-China trade talks faded”, noting that statements from both sides were positive but vague and “lacked concrete details”.

Data Monday showed China’s imports and exports fell last month, signalling that the US tariffs are beginning to bite in the world’s number two economy.  The customs bureau also said China’s trade surplus with the US — a major source of anger for President Donald Trump — widened 17.2 percent last year.

“China’s weaker-than-expected 2018 trade data has seen the China equity market dive lower. Then sentiment went deeper into the tank on the release of China December trade data, which missed the mark badly,” said Stephen Innes, head of Asia-Pacific trade at OANDA.


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