JSE set for mixed start to the week

The JSE, which is up 9.6% in the year so far after adding 2.3% last week, is set for a mixed start on Monday, with markets in the Asia Pacific paring the gains they made in early trade.

Buoyed by better-than-expected jobs data released in the US on Friday, and optimism that Washington and Beijing are closing in on a trade deal, Asian stocks rose in early trade on Monday, although they pulled back going into the afternoon session.

The Shanghai Composite Index, which was 1.3% higher soon after the open, was 0.1% down shortly before noon. Hong Kong’s Hang Seng Index also retreated from its earlier highs, although it went into the lunch break 0.3% up for the day.

Stocks in Japan, Singapore and Korea were slightly lower, although Australia’s main index was 0.6% up.

The JSE should get a boost from Naspers associate Tencent, which was 0.7% up in Hong Kong, and from BHP Group, which was 1.5% higher in Australia.

No major financial results or data releases are expected in South Africa on Monday, although the World Bank is due to release a bi-annual report on the state of Africa’s economies, including SA’s, in the afternoon.

Traders will also keep an eye on inflation expectations in the UK and factory orders in the US.

Source: businesslive.co.za