Wednesday, 25 July 2018
- Asian markets were mixed on Wednesday, with Japan and South Korea tracking gains seen stateside.
- The Trump administration intends to offer billions in aid to help farmers affected by tariffs in the U.S.’ ongoing trade disputes.
- U.S. President Donald Trump doubled down on the efficacy of tariffs ahead of his meeting with EU officials.
Asian markets were mixed in early Wednesday trade, with benchmarks in Japan and South Korea tracking higher after Wall Street mostly advanced on the back of strong corporate results overnight.
The Nikkei 225 traded higher by 0.4 percent in Tokyo, the Kospi saw similar gains, adding 0.48 percent in the morning as large cap technology stocks rose. The S&P/ASX 200 shed 0.12 percent.
U.S. stocks mostly rose overnight on the release of strong corporate earnings. The Dow Jones Industrial Average added 0.79 percent, or 197.65 points, to closed at 25,241.94, the S&P 500 rose 0.48 percent to 2,820.40 and the Nasdaq Composite ended the session lower by 0.01 percent at 7,840.77 after climbing more than 1 percent to a record high earlier in the day.
On the trade front, the Trump administration intends to offer as much as $12 billion in aid to support farmers affected by tariffs in ongoing disputes between the U.S. and its trading partners.
In currencies, the dollar index, which tracks the U.S. currency against a basket of peers, last stood at 94.584. On Wednesday, the People’s Bank of China (PBOC) set the USD/CNY reference rate at 6.8040 versus 6.7891 Tuesday’s close, the weakest since June-end 2017. PBOC skipped the Open Market Operations (OMOs) today.
Continuous devaluation of its currency by China will keep upward pressure on USD / INR , however repeated intervention by RBI above 69 and inflows of HDFC IPO will prevent sharp depreciation today.
Source : Reuters