Asian shares lower, ASX down 0.6%, Nikkei slips 0.3%, Kospi flat
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The Shanghai composite opened down 0.1 percent, while the Shenzhen composite opened 0.3 percent lower.
Currency swings overnight weighed on Asian equities Monday, following President-elect Donald Trump’s jolting comments that the dollar is too strong, prompting the greenback to fall to a one-month low.
Trump made his comment about that the dollar was “too strong” which makes it hard for American companies to compete with China, in an interview with the Wall Street Journal.
The US policy has been for a strong dollar since the Clinton administration’s Treasury Secretary Robert Rubin. Fed Chair Janet Yellen is dues to speak later on Wednesday in the US on monetary policy goals.
The dollar index, which tracks the currency against a basket of major currencies, was at a one-month low at 100.53 in early Asian time.
Meanwhile, sterling saw its biggest one-day gain against the greenback overnight since October 2008 after British Prime Minister Theresa May announced her plan for a clean break between the UK and the European Union.
The pound soared against the softening dollar, to trade at USD 1.2355, earlier trading as high as USD 1.2415.
Down Under, the ASX 200 fell 0.55 percent in early trade, weighed heavily by its heavily-weighted financials sub-index.
Japan’s Nikkei 225 fell 0.39 percent as the dollar/yen falls below the 113 handle and as financial stocks weigh.
A stronger yen is generally seen as a negative for Japanese stocks as it impacts the competitiveness of Japanese exports and lessens profits earned overseas when repatriated.
Toshiba jumped 2.02 percent, after the Nikkei financial daily reported that Toshiba was considering spinning off its semiconductor business and selling a partial stake in the unit to Western Digital.
South Korea’s Kospi slipped 0.21 percent, as the country grapples with a political scandal that has led to the impeachment by parliament of President Park Geun-hye and implicated the country’s largest conglomerate’s chief.
Samsung Group chief Jay. Y. Lee has arrived in court in Seoul on an arrest warrant issued by a special prosecutor over allegations he bribed President Park Geun-hye and one of her confidants in exchange for political favors. Samsung Electronics was up 0.22 percent, while Samsung C&T slipped 1.6 percent.
The Shanghai composite opened down 0.1 percent, while the Shenzhen composite opened 0.3 percent lower.
Hong Kong’s Hang Seng gained 0.79 percent in early trade.
Hong Kong-listed MGM China fell 2.38 percent while other casino stocks were positive, after the company announced that the opening date of MGM Cotai will be delayed from the second-quarter of 2017 to the second half of the year, the third revision of timing.
“We believe the delay is more due to construction challenges and getting the ‘right’ product for the opening, but needless to say, an on-time opening will require obtaining necessary government approvals in a timely manner,” said research analysts at Nomura, in a note on Wednesday.
In the broader currency markets, the yen strengthened against the dollar, at 112.96 compared to yesterday’s levels around the 114 handle, while the Australian dollar last traded at USD 0.7544 against the greenback.
Markets stateside were all lower, with the Dow Jones industrial average down 0.3 percent to close at 19,826.77, the S&P 500 finished down 0.3 percent at 2,267.89 and the Nasdaq composite ended 0.63 percent lower at 5,538.73.
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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow
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