Asia sets downbeat mood for JSE, with jobs data likely to add to the gloom

Naspers’s Hong Kong-listed associate Tencent took its cue from US tech stocks on Tuesday morning, sliding 2.78% to HK$357.20.

This indicates Naspers is in for another bad day after falling 1.28% to R3,315.08 on Monday.

The top 40 index managed to make a small gain of 0.2% on Monday despite Naspers, but may not be as lucky on Tuesday.

Tokyo’s Nikkei 225 index was down 0.4%, Hong Kong’s Hang Seng index was down 0.55%, and the Shanghai composite index was down 0.03%. Australia’s ASX 200 index, however, was up 0.1%.

SA’s unemployment rate will be in focus on Tuesday, with Statistics SA expected to report at 11.30am that it remained at about the first quarter’s 26.7% in the second quarter.

“The industrial sector of the economy contracted in the first quarter, and lacklustre production updates so far in the second quarter do not bode well for a meaningful recovery in industrial employment levels,” Investec Bank economist Lara Hodes said.

Average salaries will also be in focus, with BankservAfrica releasing its monthly South African take-home pay and private pensions indices for June on Tuesday.

“According to the latest results, South Africans’ typical real-take home pay for June experienced its largest decline since early 2017 while the real average pension paid into bank accounts increased to R7,008,” BankservAfrica said in a media release on Monday.

Air and gas-handling equipment supplier Howden Africa warned shareholders on July 19 it expected to report on Tuesday its interim headline earnings per share (HEPS) declined by up to 38% in the six months to end-June.

Source: businesslive.co.za