Asia Markets Ease As Trump Rally Hits Buffers
Fahad Shabbir (@FahadShabbir) Published February 23, 2017 | 09:40 AM
HONG KONG, (UrduPoint / Pakistan Point News - 23rd Feb, 2017 ) : Asian markets sank Thursday as investors put the brakes on a Trump rally that has inflated global stocks, while Japanese car giant Nissan fell after Carlos Ghosn, the man considered its saviour, stepped down as CEO.
While New York's Dow index racked up a ninth successive all-time high, its longest record streak in 30 years, analysts said there was a sense that the advance may have gone too far. The Dollar also struggled to bounce back from Wednesday's sell-off after minutes from the Federal Reserve's latest board meeting showed policymakers expect a rate hike "fairly soon" but also see increases being gradual.
While they cited "heightened uncertainty" about possible US policies that could lift inflation, hastening the need for rate hikes, that was not enough for dealers who had hoped for a firmer guidance.
Apart from taking a breather in January, world markets and the dollar have been on an upward trajectory since Donald Trump's November US election win on bets his big-spending, tax-cutting plans would fire the US and global economy.
But Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said in a note there appears to be some scepticism of the likely effectiveness of Trumponomics as well as worries from some hedge funds that any big news has been priced in.
He added that there were an increasing number of investors betting on a retreat. - 'Subtle shift' - ================== "When folks are starting to think and talk like this, it tells me that there could be a subtle shift in market thinking.
This is because the Trump rally has now exceeded most US equity market strategists' guesstimates of where US stocks would end 2017," he said.
In Tokyo the Nikkei index ended the morning session 0.4 percent lower as the dollar dragged on exporters.
Hong Kong shed 0.6 percent and Shanghai slipped 0.2 percent. Seoul and Singapore each slipped 0.1 percent, though Wellington and Taipei ticked slightly higher. News that Nissan chief executive Ghosn would resign his post weighed on the carmaker, sending it down around one percent in Tokyo.
The man credited with reinventing the once nearly bankrupt Japanese firm said he would focus on overhauling rival Mitsubishi Motors, but will stay on as chairman, while co-CEO Hiroto Saikawa will take over.
Nissan, Japan's number two automaker that has a 40 percent stake in France's Renault, threw Mitsubishi a lifeline in May when it bought a one-third stake in for about $2.2 billion, as it wrestled with a mileage-cheating scandal that hammered sales.
Mitsubishi was slightly up by lunch. - Key figures around 0230 GMT - ================================ Tokyo - Nikkei 225: DOWN 0.4 percent at 19,312.07 (break) Hong Kong - Hang Seng: DOWN 0.6 percent at 24,058.56 Shanghai - Composite: DOWN 0.2 percent at 3,253.57 Euro/dollar: DOWN at $1.0554 from $1.0572 Pound/dollar: DOWN at $1.2442 from $1.2463 Dollar/yen: UP at 113.17 Yen from 113.08 yen Oil - West Texas Intermediate: UP 43 cents at $54.02 Oil - Brent North Sea: UP 44 cents at $56.28 per barrel New York - Dow: UP 0.2 percent at 20,775.60 (close) London - FTSE 100: UP 0.4 percent at 7,302.25 (close)
Related Topics
Recent Stories
Finance Minister calls for reforming tax system to improve country's economy
PM calls for joint efforts to check smuggling, power theft
Infinix Unveils a Vibrant New Chapter with Wahaj Ali: The face of Infinix NOTE 4 ..
PM makes two more appointments in his team
Terrorists of Shangla suicide attack will be brought to justice: Interior Minist ..
Applications Open for 6th Cycle of Start-up Incubation under the National Expans ..
Join vivo's "Light it Up" Social Media Contest in Ramadan to Win vivo V30 5G
Pakistan v New Zealand T20I series: Tickets to go on sale from today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
Today Gold Rate in Pakistan 29 March 2024
Journalists call for global action to end Gaza’s humanitarian crisis
CM for generating opportunities to bring direct int'l investment
More Stories From Business
-
Weekly inflation falls slightly
6 minutes ago -
Uzbekistan's Ambassador, Pakistan’s Commerce minister forge path for enhanced economic ties
6 minutes ago -
Finance Minister calls for reforming tax system to improve country's economy
31 minutes ago -
Economy commences on better note in 2024: Finance Minister
46 minutes ago -
BIST 100 up at Friday’s open
2 hours ago -
Biden administration approves $60M to rebuild Baltimore bridge
2 hours ago
-
China to export homegrown tunnel-boring machine to Italy
2 hours ago -
Foreigners make nearly 3 million inbound, outbound trips to China in Jan-Feb
2 hours ago -
Türkiye's foreign trade gap halves in January-February
2 hours ago -
Shipping activity at Port Qasim
3 hours ago -
Tractor production increase 68% in Jul-Feb
4 hours ago -
Exchange rates for currency notes
4 hours ago