Asian investors shift cautiously, autos hit by US tariff threat

Economy 16:14 24.05.2018
Asian markets were mixed Thursday with traders concerned about the China-US trade deal and Donald Trump's summit with Kim Jong Un, while automakers were hit by news Washington was considering huge tariffs on vehicle imports.
 
Investors went into selling mode despite minutes from the Federal Reserve's latest policy meeting that showed the central bank was less hawkish on interest rates than previously thought.
 
The selling is a far cry from the start of the week when equities rallied on news that top officials from China and the United States had agreed to pull back from imposing levies on billions of dollars of goods, averting a potentially damaging trade war.
 
But since Monday's gains, Trump has voiced his displeasure at that agreement and also raised the possibility that a historic summit with North Korean leader Kim on June 12 could be delayed or called off.
 
A key aide to Kim on Thursday hit out at comments from Vice President Mike Pence and warned the talks could be cancelled.
 
Japan's Nikkei was the biggest loser, shedding more than one percent in the morning session as the yen surged against the dollar to its highest level in nine days.
 
As the latest developments fuel uncertainty, investors have shifted into the Japanese unit, which is seen as a safe haven.
 
Adding to selling in the greenback were the Fed minutes, which showed it may be willing to let inflation run slightly higher and above its two percent target, as long as the spikes were temporary. The comments soothed worries about a sharp hike in borrowing costs, which have been needling markets for several months.
 
- Car giants tumble -
 
But while the minutes lifted Wall Street, Asian investors were harder to please.
 
Hong Kong was up 0.3 percent and Singapore added 0.3 percent but Shanghai fell 0.2 percent, Seoul shed 0.3 percent and Sydney lost 0.2 percent.
 
Wellington, Taipei and Jakarta were all up and Manila was flat.
 
Regional auto giants were sharply lower after the Commerce Department said it had launched a probe that could allow Trump to impose tariffs on auto imports over national security concerns.
 
"There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said.
 
Japanese giant Toyota plunged 2.7 percent and Nissan fell 1.8 percent in Tokyo, while Kia dived 3.9 percent in Seoul.
 
The announcement came just a day after China said it would slash levies on imports of cars from July 1 as part of a drive to open up the world's number two economy.
 
"What can I say? The mid-term (US elections) are looming large in the president?s thinking and almost everything he does in the next six months is likely to be aimed at his base. That?s politics. But it will impact markets as well," warned Greg McKenna, chief markets strategist at AxiTrader.
 
On currency markets the euro is wallowing around levels not seen since mid-November as traders fret over the impact on the Italian economy of a new populist government, which has promised big tax cuts, big spending measures and the rollback of reforms.
 
Adding to the downbeat outlook for the currency is a series of weak readings including on economic growth and factory activity.
 
- Key figures toward 0300 GMT -
 
Tokyo - Nikkei 225: DOWN 1.1 percent at 22,439.54 (break)
 
Hong Kong - Hang Seng: UP 0.3 percent at 30,758.12
 
Shanghai - Composite: DOWN 0.2 percent at 3,163.65
 
Euro/dollar: DOWN at $1.1694 from $1.1696 at 2100 GMT
 
Pound/dollar: UP at $1.3352 from $1.3351
 
Dollar/yen: DOWN at 109.49 yen from 111.02 yen
 
Oil - West Texas Intermediate: DOWN 12 cents at $71.72
 
Oil - Brent North Sea: DOWN 19 cents at $79.61 per barrel
 
New York - Dow: UP 0.2 percent at 24,883.85 (close)
 
London - FTSE 100: DOWN 1.1 percent at 7,788.55 (close)
Azerbaijan takes measures to turn Khankandi into safe city - VİDEO

News line

Another 138 IDPs leave for Fuzuli
09:28 29.03.2024
Netanyahu: "We have strategic assets of Hamas"
09:17 29.03.2024
Date of next meeting of Armenian and Azerbaijani Parliament Speakers announced
09:00 29.03.2024
Russia prepares for new offensive in May-June l – says Zelensky
23:52 28.03.2024
Russian investigators have evidence of Ukraine link to Crocus terrorists
22:24 28.03.2024
Committee members of the EU Council will visit the South Caucasus region
19:48 28.03.2024
Bayern to pay Thomas Tuchel 12M euro compensation
Bayern to pay Thomas Tuchel 12M euro compensation
19:00 28.03.2024
Crocus City Hall terrorists took drugs before attack - law enforcement agencies
Crocus City Hall terrorists took drugs before attack - law enforcement agencies
18:33 28.03.2024
Azerbaijan, UN Development Program mull future co-op
18:00 28.03.2024
An Independent Trade Union Established within International Eurasia Press Fund - First in NGO sector - PHOTOS
17:39 28.03.2024
Italian PM condemns Macron for idea of sending troops to Ukraine
Italian PM condemns Macron for idea of sending troops to Ukraine
17:23 28.03.2024
Azerbaijan lends clarity to color requirement for taxis
17:02 28.03.2024
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
16:45 28.03.2024
Nigerian army eliminates over 200 militants in 2 weeks
16:30 28.03.2024
Armored Vehicle Coalition for Ukraine launched in Poland
Armored Vehicle Coalition for Ukraine launched in Poland
16:15 28.03.2024
Russia strengthens transport security measures after terror attack at Crocus City Hall
Russia strengthens transport security measures after terror attack at Crocus City Hall
15:55 28.03.2024
Türkiye plays an important role between Russia and Ukraine - says political scientist Ismail Cingoz
15:45 28.03.2024
2 schoolchildren detained in France on suspicion of sending bomb threats
15:35 28.03.2024
Ski resort in Georgia hit by avalanche
Ski resort in Georgia hit by avalanche
15:26 28.03.2024
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
15:15 28.03.2024
Media: US did not transfer all information about terrorist attack in Crocus City Hall to Russia
15:00 28.03.2024
Movement ‘Together’ calls on Armenia’s parliamentary forces to express vote of no confidence in Pashinyan
14:41 28.03.2024
Azerbaijan to participate in international trade fair in Istanbul
Azerbaijan to participate in international trade fair in Istanbul
14:32 28.03.2024
Le Pen accuses French government of fraud
14:22 28.03.2024
Armenian Government Grapples with Internal Division on Village Return Issue - Ishkhan Verdiyan talks on Ednews
14:12 28.03.2024
Ammunition found along route of Crocus City Hall terrorists
Ammunition found along route of Crocus City Hall terrorists
13:41 28.03.2024
Expert Ilyas Huseynov Predicts Peaceful Return of these territories to Azerbaijan
13:20 28.03.2024
Azerbaijan weather forecast for March 29
Azerbaijan weather forecast for March 29
12:55 28.03.2024
Russian MFA concerned about upcoming Armenia-US-EU meeting
12:23 28.03.2024
Secret Points of Pashinyan's Meeting with French Representative: Is Peace Agreement Signing Imminent?
12:00 28.03.2024
Armenia announces recruitment of border guards to work at Zvartnots
Armenia announces recruitment of border guards to work at Zvartnots
11:47 28.03.2024
The US-Armenia-EU Joint Conference is a part of the pressure plan on Azerbaijan - MP Konul Nurullayeva
11:30 28.03.2024
Azerbaijan’s central bank reduces discount rate
Azerbaijan’s central bank reduces discount rate
11:23 28.03.2024
CSTO chief: ‘Yerevan doesn’t participate in our work, but there are no statements about suspension’
11:13 28.03.2024
Ammunition found in Khankandi
Ammunition found in Khankandi
11:00 28.03.2024
Russia had been aware of preparation for terrorist attack at Crocus - says intelligience chief
10:46 28.03.2024
Scholtz reveals date of his last telephone conversation with Putin
Scholtz reveals date of his last telephone conversation with Putin
10:33 28.03.2024
Head of the SSS: France is inciting Armenia to a new war
10:21 28.03.2024
Are we in the brink of World War III? - Pundit talks on Ednews
10:10 28.03.2024
Azerbaijan's National Security: Reflecting on 105 Years of Defending Sovereignty
09:55 28.03.2024
Hamısı