JSE set for mixed start on Wednesday as Glencore and Mpact report

SA stocks could open mixed on Wednesday after China moved to stabilise its currency amid a bruising and protracted trade war with the US.

After falling in prior trading sessions, US stocks closed higher overnight, with the S&P 500 Index adding 1.3%.

“The People’s Bank of China’s stronger-than-expected fixing of the yuan yesterday, and reiteration that it won’t seek to competitively depreciate the currency, helped stabilise markets,” analysts at ANZ Banking Group said on Wednesday. “The US expects China to visit in September for further trade talks — news that also allayed fears of a further escalation in the trade war.”

This came after trade tensions between the world’s two biggest economies mounted, with the US calling China a currency manipulator after Beijing retaliated to fresh tariffs on its exports.

Hong Kong’s Hang Seng Index opened sharply lower on Wednesday but pared some of those losses through the morning session. The index was 0.4% down at the lunch break, amid ongoing pro-democracy protests in the Chinese special administrative region.

The Shanghai Composite was flat, while Japan’s Nikkei 225 lost 0.4% and Korea’s Kospi 0.2%. Australia’s main benchmark rose 0.7%.

WeChat owner Tencent, which is 31% owned by Naspers, was 0.3% up in Hong Kong. But JSE-listed miner BHP Group fell 1.3% in Australia amid weakness in the bulk-commodity market.

Glencore, which produces copper, cobalt and coal, is due to report half-year numbers on Wednesday.