JSE faces mixed Asian markets on Wednesday

The JSE faces mixed Asian markets on Wednesday, with the rand steady as markets watch US economic data releases.

Asian markets have been closed this week for public holidays, with the Shanghai Composite trading flat in morning trade, while Hong Kong’s Hang Seng advanced 0.66%. Australia’s All Ordinaries index was down 0.47%.

Tencent, which often gives direction to the JSE via Naspers, had added 0.5%.

Markets have been bolstered this week by easing Covid-19 restrictions in many countries, while focus is also on US data.

In the US, the Institute for Supply Management’s survey of non-manufacturing companies, which covers activity in the service industry for April, fell to its lowest level since 2009 on Wednesday, but this was better than the market forecast. Analysts said that though the overall indicator was slightly positive, some of the underlying indicators were more concerning.

The dollar and US equities found some support from the release, with attention now turning to the release of US nonfarm payrolls data on Friday, said BK Asset Management MD for foreign exchange strategy Kathy Lien in a note. 

In morning trade gold was down 0.15% to $1,703.58/oz was up 0.38% to $768.80. Brent crude was down 3.54% to $30.82 a barrel, having jumped more than 14% on Tuesday.

The rand was flat at R18.48/$.

Locally, the IHS Markit purchasing managers index (PMI) for April is due later in the day. The index fell to a historic low in March.

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