JSE faces green Asian markets as Chinese tech stocks rise
The JSE is opening to green tickers from Asia on Tuesday morning as Chinese tech stocks jumped with Tencent, Alibaba and food delivery giant Meituan rising.
This was helped by investment bank JPMorgan making a U-turn on several Chinese tech stocks two months after calling it “uninvestable”.
China’s economy is suffering under its zero-Covid9 policy, which aims to eliminate instead of living with the coronavirus, and outbreaks in cities. This is affecting supply chains across the world as Chinese supplies dry up.
In morning trade, Japan’s Nikkei was up 0.43%, the Shanghai composite 0.41%, the Hang Seng 2.35% and Australia’s all ordinaries index 0.35.
Tencent, which can influence the JSE via the Naspers stable, gained 3.71%.
Meanwhile, the uncertainty is starting to build over the prospect for the global economy in 2022 as the war in Ukraine continues and high inflation persists with central banks expected to step in.
Local focus this week will be squarely on the Reserve Bank, which is expected to announce a 50-basis point interest rate hike on Thursday. Consumer inflation numbers for April are due the day before, and are expected to show an acceleration from March’s reading of 5.9%.
The rand weakened along with other emerging market currencies on Monday, touching its worst intraday level since November as investors digested disappointing Chinese data, which added to concerns about global growth.
Gold is up at $1,825.22/oz while platinum is down 0.23% to $945.59. Brent crude declined by 0.26% to $112.54 a barrel.
The rand was down 0.50% on Tuesday morning to R16.08.
In local company news, Adcorp, SA’s biggest listed recruitment group, will release its annual results on Tuesday along with Investec Property Fund. Emira Property Fund and technology group Jasco Electronics is set to share its results for its third quarter, and Premier Fishing & Brands for its half of its 2022 year.
Source: businesslive.co.za
