JSE faces firmer Asian markets on Monday amid upbeat data
The JSE faces firmer Asian markets on Monday morning, amid upbeat economic data, while investors are also pondering the signing of a huge trade deal between 15 Asian countries.
The Regional Comprehensive Economic Partnership aims to reduce tariffs, strengthen supply chains with common rules of origin, and codify rules about e-commerce, with some analysts saying this is a diplomatic win for China.
“The fact that the agreement got over the line after eight years of negotiation between a widely disparate group of nations, is an achievement in itself,” said Oanda senior market analyst Jeffrey Halley in a note.
Japan’s third-quarter GDP performance earlier came in at a better-than-expected 5%, while Chinese industrial output also beat expectations in October, while employment data has also boosted sentiment.
After the strong employment and industrial production numbers from China this morning, the focus shifts to eurozone inflation due later today, said Peregrine Treasury Solutions executive director Bianca Botes in a note.
In morning trade the Shanghai composite was up 0.97% and Japan’s Nikkei 1.95%.
Tencent, which gives direction to the JSE via Naspers, had fallen 0.91%.
Gold was 0.79% higher at $1,895.75/oz while platinum had risen 1.06% to $901.06. Brent crude had fallen 0.19% to $43.16 a barrel.
The rand was 0.2% firmer at R15.46/$.
Poultry producer Astral Foods is scheduled to release its results for its year to end-September later, warning in a recent trading update it expects headline earnings per share to fall as much as 17%. The group has been under pressure from Covid-19, which hit demand from fast-food restaurants.
Mobile operator Vodacom is scheduled to release its results for the six months to end-September, but hasn’t issued a recent trading update. In its update for its quarter to end-June, the group had reported increased revenue in SA driven by lockdown demand, but pressure on international revenue.
Source: businesslive.co.za
