Asia report: Most markets lower ahead of Yellen hearing
Most markets in Asia finished lower on Tuesday, with investors keeping their wallets firmly shut ahead of Federal Reserve chair Janet Yellen’s two-day testimony in front of the US Congress.
AUD/USD
$0.6559
15:14 29/04/24
GBP/NZD
NZD2.0989
15:22 29/04/24
Hang Seng
17,746.91
10:20 29/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥156.4380
15:23 29/04/24
In Japan, the Nikkei 225 was down 1.13% at 19,238.98, after Finance Minister Tao Aso said the timeframe for Tokyo and Washington to establish a bilateral economic dialogue could be lengthier than perhaps anticipated.
Shares in Toshiba were down 8.01%, after the firm could not confirm when its earnings for the quarter through December would be released.
There were also suggestions in local media that the technology-focussed conglomerate may not be continually viable, after excessive losses following its acquisition of a US nuclear power developer.
The yen was stronger against the greenback, last gaining 0.32% to JPY 113.38 per $1.
On the mainland, the Shanghai Composite was up 0.05% at 3,218.38, with the smaller Shenzhen Composite similarly unchanged at 1,964.32.
State owned chemicals firm Sinochem was reportedly in talks with embattled Singaporean commodities trader Noble Group to take on a chunk of it.
South Korea’s Kospi finished down 0.2% at 2,074.57, while Hong Kong’s Hang Seng Index finished down 0.03% at 23,703.01.
In Seoul, the political scandal involving impeached President Park Geun-hye continued, with Samsung chief Jay Lee emerging from the special prosecutor’s office early on Tuesday.
He had been held for questioning for most of Monday and through the night over his alleged involvement in the cash-for-influence scheme.
Stateside, Yellen was expected to face questions on the role of the Fed during the Trump administration during her semiannual appearance in front of Congress, with the new Republican president making his desire for financial deregulation well known.
“Markets are anticipating a reaffirmation of the Fed's stance for a gradual pace of rate normalization, expecting Yellen to adopt a wait-and-see stance on new fiscal policy changes from Trump given the lack of clarity for now,” noted Mizuho Bank economist Chang Wei Liang.
Oil prices were slightly higher during Asian trading, with Brent crude last up 0.86% at $56.07 per barrel and West Texas Intermediate climbing 0.77% to $53.34.
In Australia, the S&P/ASX 200 fell 0.09% to 5,755.24, with business conditions now at a nine-year high as profits and sales were steadier, according to the January edition of the National Australia Bank survey.
The major miners were mixed, with BHP Billiton down 0.91%, Fortescue Metals virtually flat and Rio Tinto rising 0.28%.
Copper prices were surging overnight ahead of the Asian session, with workers at BHP Billiton’s Escondida mine and Freeport McMoran’s Grasberg mine heading on strike, leading to supply concerns.
New Zealand’s S&P/NZX 50 added 0.2% to finish at 7,150.89, led higher by the country’s largest seaport, Port of Tauranga, which was 2.3% higher.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.7% at AUD 1.2998 and the Kiwi strengthening 0.19% to NZD 1.3907 per $1.