Friday, 22 May 2020
- Asia shares set to fall as Sino-U.S. strains hit confidence
- Dollar holds gains as U.S.-China frictions rattle Asian FX
- Brent at highest since March on U.S. stock draw, recovering demand
Asian shares were set for another retreat on Friday as U.S.-China tensions curbed investor risk appetite and caused global equity markets to stumble.
Hong Kong futures HSIc1 fell 1.59% and Nikkei futures were trading below the Nikkei 225 index’s previous close, pointing to opening loss of 0.1%.Australian S&P/ASX 200 futures eased 0.13%.
The majority of the 11 S&P sector indexes declined, leaving the main benchmark S&P 500 down 0.78%. Dow Jones Industrial Average finished down 0.41% and the Nasdaq Composite fell 0.97%.
The U.S. dollar, seen as a safe-haven, rose amid those concerns. The dollar index =USD, which measures the greenback’s strength against six major currencies, was up 0.1%.
The Indian rupee is expected to open lower against the dollar tracking losses in regional equities and currencies after China moved to increase control over Hong Kong, prompting U.S. lawmakers to propose sanctions.The rupee will likely be quoted at around 75.70 to a dollar in early trades compared with 75.61 at 2.00 p.m. yesterday,
Global benchmark Brent rose more than 1% on Thursday to its highest since March, supported by lower U.S. crude inventories, OPEC-led supply cuts and recovering demand as governments ease coronavirus restrictions on people’s movements.
Brent rose 34 cents, or 1%, to settle at $36.09 per barrel. U.S. West Texas Intermediate crude closed up 43 cents, or 1.28%, to $33.92.In the latest sign the supply glut is easing, U.S. crude inventories fell 5 million barrels last week. Analysts had expected an increase.
Source : Reuters
