Monday, 13 August 2018
- Asian shares traded lower early on Monday as investor sentiment wobbled after the sell-off in the Turkish lira.
- President Donald Trump said last week that he had approved the doubling of metals tariffs on Turkey.
- The safe-haven yen firmed amid the uncertainty.
Asian markets declined early on Monday after investor sentiment took a hit amid the slump in the Turkish lira on geopolitical developments.
The Nikkei 225 slid 0.92 percent in early trade amid strength in the yen., the Kospi eased 0.68 percent, the S&P/ASX 200 recorded slimmer losses, with the index last trading lower by 0.26 percent.
The moves lower in Asia came after U.S. stocks dropped on Friday, triggered by fears over the sell-off in the Turkish lira after U.S. President Donald Trump said he had approved the doubling of metals tariffs against Turkey on Friday. The lira briefly slumped 20 percent against the dollar after the announcement.
On Friday, the Dow Jones Industrial Average declined 0.77 percent, or 196.09 points, to close at 25,313.14 and also erasing its gains for the month.Markets in Europe were also affected by the ongoing turmoil in Turkey, with investors concerned about the contagion effect of lira’s steep fall on banks in the region. The pan-European Stoxx 600 fell more than 1 percent in the end of that session.
PBOC sets USD/ CNY reference rate for today at 6.8629 (vs. Friday at 6.8395).Onshore yuan, CNY, to a fresh low for the mid rate since May of last year .PBOC has skipped OMOs again today. Bank citing relatively high level of banking system liquidity. This is 17th consecutive no OMO day from the Bank.
On the commodities front, oil prices added slightly to gains made in the previous session on the back of concerns over supply. Brent crude futures were mostly steady, adding 0.03 percent to trade at $72.83 per barrel and U.S. West Texas Intermediate crude rose 0.15 percent to $67.73.
Source : Reuters