Morning Report

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Tuesday, 14 August 2018

Asia tries to find its footing after Monday Currency Crash

  • Asian markets gained on Tuesday, with major markets bouncing back after sliding in the last session.
  • The Turkish lira traded above its record low made on Monday.
  • A barrage of Chinese economic data is due later in the day.

Asian shares recorded gains on Tuesday, with regional markets mostly bouncing back one day after declining over jitters related to economic uncertainty in Turkey. Ahead, a barrage of economic data out of China is expected later in the day.

The Nikkei 225 rose 1.14 percent, South Korea’s Kospi edged higher by 0.11 percent.

The S&P/ASX 200 added 0.43 percent. The Dow Jones Industrial Average slipped 0.5 percent, or 125.44 points, to close at 25,187.70, logging its fourth straight finish in negative territory. The S&P 500 edged down by 0.4 percent to end at 2,821.93 and the Nasdaq Composite shed 0.25 percent to finish the day at 7,819.71.

The Turkish lira traded at 6.9606 after touching a record low on Monday. The currency had pared some of its recent losses overnight after the Turkish central bank moved to calm market nerves.

The lira slipped 20 percent on Friday when tensions between the U.S. and Turkey increased last week. That came after no progress was made on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016 against the government of President Recep Tayyip Erdogan.

In currencies, the dollar index, which tracks the U.S. currency against a basket of currencies, was mostly steady at 95.169.The People’s Bank of China (PBOC) set the Yuan reference rate at 6.8695 vs the previous day’s fix of 6.8629. 

Oil prices rose on Tuesday after a report from OPEC confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply. Front-month Brent crude oil futures were at $72.87 per barrel, up 26 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.5 percent, at $67.52 per barrel.

Source : Reuters

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