Thursday, 16 August 2018
Asian shares set to decline after Wall Street falls on tech losses
Asian shares were set to decline on Thursday, taking cues from losses on Wall Street after Chinese internet giant Tencent reported a fall in quarterly profit — a disappointing result that weighed on the tech space stateside.
Futures pointed to lower opens for major markets in the region, with Nikkei futures traded in Chicago down 0.9 percent compared to the index’s last close. Elsewhere, Australian SPI futures were lower by 0.84 percent at the end of Wednesday.
The U.S. markets overall saw a dip overnight, with the Dow Jones Industrial Average losing 137.51 points and closing 0.54 percent lower at 25,162.41. The Nasdaq Composite declined 1.23 percent to end at 7,774.12 and the S&P 500 finished the session lower by 0.76 percent at 2,818.37.
Concerns related to Turkey’s currency crisis were also in the background after the country’s currency dropped to a record low earlier this week. The lira firmed overnight to trade at 5.9505 to the dollar strengthening after Turkey cut offshore banks’ access to its currency.
The dollar index, which tracks the dollar against a basket of currencies, was mostly steady overnight. The index was last at 96.696 after touching a 13-month high of 96.984 in the last session.
In Southeast Asia, Indonesia’s central bank on Wednesday raised interest rates by 25 basis points to 5.5 percent. Bank Indonesia has cumulatively increased rates by 125 bps so far this year.
Oil prices plunged on Wednesday after government data showed a big, unexpected jump in stockpiles of U.S. crude, compounding pressure as the outlook for global economic growth darkened and the stock market slumped.U.S. light crude ended Wednesday’s session down $2.03 a barrel, or 3 percent, at $65.01, it’s lowest closing prices since June 6. The contract hit an eight-week intraday low at $64.51. Global benchmark Brent crude oil fell $1.68, or 2.3 percent, at $70.78 after hitting a four-month low at $70.30.
Source : Reuters