SA’s main stock exchange could get off to a slow start on Wednesday as Asian markets edge slightly higher following news that the US will temporarily allow China’s Huawei to keep doing business in the country.
This led to a slight improvement in risk sentiment after US President Donald Trump last week blacklisted Huawei from the American market, further escalating trade tensions between the world’s two largest economies.
Hong Kong’s Hang Seng Index was 0.3% up on Wednesday, while Japan’s Nikkei 225 was 0.1% higher and Korea’s Kospi added 0.2%.
China’s Shanghai Composite and Australia’s main benchmark were both flat.
China’s Tencent was 0.8% lower in Hong Kong amid a downturn in technology stocks that was sparked by the Huawei ban. That implies a weak start for major shareholder and JSE heavyweight Naspers on Wednesday.
JSE-listed BHP Group was flat in Australia.
Food producer Tiger Brands, which faces a class-action lawsuit relating to the deadly 2018 listeriosis outbreak, is due to report half-year results on Wednesday.