JSE to contend with mixed Asian markets on Monday

The JSE faces mixed Asian markets on Monday morning, though a firmer Tencent could help support the local bourse.

The economic impact of the coronavirus outbreak remains the primary risk to global markets, with Singapore earlier downgrading its 2020 growth forecasts.

Earlier data showed that Japan’s economy shrank at the fastest pace in six years during the fourth quarter of 2019.

Markets have also been boosted by hopes that Asian countries will respond to the coronavirus with stimulus. China already moved to reduce lending rates last week.

The week starts with US markets closed for Presidents’ Day, which will make for a quiet day with reduced liquidity, said Peregrine Treasury Solutions Treasury partner Bianca Botes in a note.

In morning trade Shanghai’s composite added 1.3%, while Japan’s Nikkei gave back 0.92%.

Tencent was up 0.63%.

Gold was flat at $1,582.60 an ounce while platinum rose 0.48% to $965.15. Brent crude was 0.31% lower at $57.16 a barrel.

The rand was 0.32% firmer at R14.85 a dollar.

Locally, there are no economic releases of note on Monday, with inflation numbers for January due on Wednesday.

The dominant big event is next week’s budget statement.

In corporate news, Anglo American Platinum is due to update the market on its fourth-quarter performance.

Internationally, economic releases are also concentrated later in the week, with US and UK inflation data likely to be closely watched.

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