JSE faces mixed Asian markets as traders await local CPI data

The JSE is facing mixed screens from Asia on Wednesday morning, while local traders await the latest inflation data from Stats SA at 10am.

The Nikkei in Japan is up 0.51%, while the Hang Seng in Hong Kong declined by 1.18% and the Shanghai composite in mainland China 0.51%. Year to date, the Hang Seng is down by more than a quarter (28.18%), the Shanghai composite 15.61% and the Nikkei 6.87%.

Tencent, which influences the JSE via Naspers, fell by 2.52% and has retreated by 45.35% so far this year.

Japanese markets were helped by Wall Street closing higher on Tuesday.

The Shanghai composite is down after the release of China’s latest GDP figures were delayed without any clear explanation, while uncertainty remains about the local economy after President Xi Jinping gave no indication that the world’s second-largest economy would ease its strict zero-Covid policy during his opening address at the 20th National Congress of the Chinese Communist Party on Sunday.

Meanwhile, in Hong Kong the city’s leader, John Lee, said on Wednesday in his maiden policy address that the city plans to attract talent and investment by setting aside billions. Many professionals and residents left the city during the pandemic.

US markets ended with green screens on Tuesday as the Dow Jones gained 1.12%, the S&P 500 1.14% and the Nasdaq 0.90%. The Nasdaq has shed close to a third of its value so far this year (31.96%), the S&P 500 more than one-fifth (22.44%) and the Dow Jones 16.57%.

In local market news, the JSE closed marginally higher on Tuesday, adding to Monday’s sharp gain on the back of a turnaround in British fiscal policy, but analysts warn the rally may be losing steam.

The bourse improved after the UK’s new finance minister, Jeremy Hunt, announced he would reverse the tax cuts announced by his predecessor, Kwasi Kwarteng. Sentiment was further boosted by a solid start to the US corporate earnings season.

The JSE all share closed 0.24% firmer at 66,350.98 points and the top 40 strengthened by 0.32%.

The dollar added another 0.33% against the rand as it traded at R18.14 on Wednesday morning. The greenback has gained 13.71% against the rand so far this year.

In commodities, the price of Brent crude was higher, while gold and platinum traded lower. Brent crude increased by 0.40% to $90.39 a barrel. Gold declined by 0.33% to $1,647.67/oz and platinum 0.89% to $899.46.

The corporate calendar is bare for Wednesday, but traders will zoom in on SA’s consumer price index (CPI) figures for September at 10am and the retail trade sales data for August at 1pm. The consensus is that the CPI figure will come in at 7.5% year on year and retail trade sales data at 4.2%.

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