Asia uneasy as May speaks, Trump heads for White House

AFP, HONG KONG: Asian investors moved warily yesterday as they look ahead to a crucial week for two of the world’s top economies as Britain outlines its plans for leaving the EU and Donald Trump is sworn in as US president.
Britain’s pound edged up but remains stuck near three-decade lows against the dollar after weekend reports Prime Minister Theresa May intends to push for a clean break from the EU, including the single market and customs union.
May is due to set out her stall later Tuesday and analysts said forex traders will be poring over her remarks, with any surprises threatening to send the pound tumbling further.
Sterling was sitting around $1.2100 Tuesday, having plunged to $1.1986 Monday, its lowest since October’s “flash crash” that sent it to $1.1841 -- a level not seen since the start of 1985.
Friday sees Trump’s inauguration, which many are eyeing with uncertainty.
While world markets soared in the months after his November election win he has come up short when pushed to provide details of his spending and tax plans for the world’s number one economy.
There is also unease about his campaign rhetoric in which he promised to tear up trade deals and slap tariffs on China, which has already hit back at his comments, fuelling worries of a possible trade war.
Jeffrey Halley, senior market analyst at OANDA, said in a note: “As we approach the 20th January investors, themselves are at a crossroads. Will his speech see a ‘Trump pump’ or a ‘Trump slump’?
“Do you position yourself continued for irrational exuberance or the coming of the Riders of the Apocalypse? It’s a tough question as Mr Trump’s actual policy announcements have been few, to say the least.”
‘Angst and nervousness’ 
On equity markets Tokyo ended 1.5 per cent  lower with exporters hit by fresh gains in the yen against the dollar. The greenback bought 113.30 yen Tuesday compared with 114 yen Monday.
The Japanese unit has risen more than four per cent  in the past week as investors shuffle back to the safe-haven unit after a November-December greenback surge.
Sydney gave up 0.9 per cent  and Singapore was 0.4 per cent  lower while Wellington and Manila also retreated sharply.
However, Hong Kong added 0.6 per cent  in the afternoon, Shanghai put on 0.2 per cent  and Seoul was 0.4 per cent  higher.
“We’ve had a strong rally in equities and we remain cautious,” Niv Dagan, Melbourne-based executive director at Peak Asset Management LLC, told Bloomberg News.
“There is a bit of angst and nervousness leading up to Trump’s inauguration and on the UK’s position in Europe. We expect this volatility to continue in the near term.”

 

Asia uneasy as May speaks, Trump heads for White House

AFP, HONG KONG: Asian investors moved warily yesterday as they look ahead to a crucial week for two of the worlds top economies as Britain outlines its plans for leaving the EU and Donald Trump is sworn in as US president. Britains pound edged up but remains stuck near three-decade lows against the dollar after weekend reports Prime Minister Theresa May intends to push for a clean break from the EU, including the single market and customs union. May is due to set out her stall later Tuesday and analysts said forex traders will be poring over her remarks, with any surprises threatening to send the pound tumbling further. Sterling was sitting around $1.2100 Tuesday, having plunged to $1.1986 Monday, its lowest since Octobers flash crash that sent it to $1.1841 -- a level not seen since the start of 1985. Friday sees Trumps inauguration, which many are eyeing with uncertainty. While world markets soared in the months after his November election win he has come up short when pushed to provide details of his spending and tax plans for the worlds number one economy. There is also unease about his campaign rhetoric in which he promised to tear up trade deals and slap tariffs on China, which has already hit back at his comments, fuelling worries of a possible trade war. Jeffrey Halley, senior market analyst at OANDA, said in a note: As we approach the 20th January investors, themselves are at a crossroads. Will his speech see a Trump pump or a Trump slump? Do you position yourself continued for irrational exuberance or the coming of the Riders of the Apocalypse? Its a tough question as Mr Trumps actual policy announcements have been few, to say the least. Angst and nervousness On equity markets Tokyo ended 1.5 per cent lower with exporters hit by fresh gains in the yen against the dollar. The greenback bought 113.30 yen Tuesday compared with 114 yen Monday. The Japanese unit has risen more than four per cent in the past week as investors shuffle back to the safe-haven unit after a November-December greenback surge. Sydney gave up 0.9 per cent and Singapore was 0.4 per cent lower while Wellington and Manila also retreated sharply. However, Hong Kong added 0.6 per cent in the afternoon, Shanghai put on 0.2 per cent and Seoul was 0.4 per cent higher. Weve had a strong rally in equities and we remain cautious, Niv Dagan, Melbourne-based executive director at Peak Asset Management LLC, told Bloomberg News. There is a bit of angst and nervousness leading up to Trumps inauguration and on the UKs position in Europe. We expect this volatility to continue in the near term.