JSE set for mixed start on Monday as Tencent falls in Hong Kong

SA’s main stock exchange could open mixed on Monday as simmering trade tensions keep risk appetite in check.

Google has barred Chinese phone maker Huawei from accessing updates to its Android operating system and its apps, according to media reports.

This follows an order from US President Donald Trump that American firms cannot do business with Huawei unless they are granted special permission. The move came after trade talks between the world’s two largest economies appeared to break down.

Stocks in the Asia-Pacific were mixed on Monday. 

China’s Shanghai Composite index fell 0.6% and Hong Kong’s Hang Seng index lost 0.4%. But Japan’s Nikkei 225 gained 0.4% and Korea’s Kospi rose 0.5%.

Chinese technology and gaming giant Tencent fell as much as 2.5% in Hong Kong, suggesting a weak opening for major shareholder and JSE-heavyweight Naspers.

Australia’s main benchmark was 1.7% up after Prime Minister Scott Morrison secured a majority government through a coalition, despite forecasts that the opposition Labor Party would win back power.

“This was a largely unexpected outcome, and the centre-right party has claimed one of the largest-ever come-from-behind wins,” Barclays Research said in a note on Monday.

JSE-listed BHP Group missed out on the stock rally, however. The miner was 0.4% lower in Australia.

In SA, Statistics SA is due to report tourist accommodation, land transport, and food and beverages data for March on Monday.

The rand was slightly weaker on Monday morning at R14.41/$, R18.36/£ and R16.08/€.

Barclays Research said on Friday that “a protraction of the US-China trade conflict and additional tariffs in the coming months is looking increasingly likely”.

However, this week the focus may shift back to Europe, with EU parliamentary elections on the agenda and UK politics becoming “even more complicated”.

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Source: businesslive.co.za