JSE could take a breather on Thursday as Asian markets fall

The JSE, which reached its best level in more than seven months on Wednesday, could pare some of those gains on Thursday as Asian markets retreat even after the UK and EU agreed to extend the deadline for their divorce.

The UK and EU agreed to extend the Brexit deadline by six months to allow Britain to find a workable solution. UK Prime Minister Theresa May has so far been unable to get enough support from legislators for her exit strategy.

Also on Wednesday, the European Central Bank kept interest rates unchanged and warned of slower growth in the region, while minutes from the US Federal Reserve’s recent monetary policy meeting showed that officials have not ruled out the possibility of a rate hike in 2019.

Asian stocks were mostly lower on Thursday. Hong Kong’s Hang Seng Index was 0.9% lower at the lunch break, while the Shanghai Composite was 1.4% down and Australia’s main benchmark declined 0.3%. Japan’s Nikkei 225 index and Korea’s main benchmark were both flat, while equities in Singapore rose 0.2%.

Naspers’s main asset, Hong Kong-listed Tencent, continued to rally. The stock, up 0.8% on the day, is at its best level since July 2018.

Naspers, meanwhile, is at its best level since January 2018 after adding 2.2% on Wednesday.

BHP Group, the third-largest constituent of the JSE’s top 40 index, was 0.6% lower in Australia.