Asian markets start week on a low note
- Author: Zachary Reyes Mar 28, 2017,
Mar 28, 2017, 7:16
Following Friday's vote against the healthcare plan Trump warned opponents within his Republican party that failure to support his agenda may result in their exclusion during future legislative measures.
The Australian market is declining following the lackluster cues from Wall Street. The pound last traded at United States dollars 1.2510 at 8:20 am HK/SIN.
The S&P bank sector rose as much as 34.8 percent after the election as investors bet it would benefit hugely from lower taxes, lighter regulation and economic growth under Trump.
Suncorp Group said it will offer capital notes to raise A$250 million to fund its general insurance, baking, life insurance and wealth management businesses. The index was down 0.42 per cent at 99.212. U.S. stock futures were also losing ground. Woodside Petroleum is edging down less than 0.1 percent, Oil Search is losing 0.3 percent and Santos is down 0.2 percent. Its biggest percentage decliner was Huntington Bancshares, down 2.1 percent. "This also may mean the dollar and the US interest rates won't climb significantly, which in turn is positive for the emerging-market assets". In early trades, the local unit was trading at US$0.7621, down from US$0.7619 on Friday. "The Japanese yen has had a great run because stocks around the globe are down".
The metal ran into resistance in earlier trade at its 200-day moving average, now at $1,259 an ounce, a level that also halted last month's sharp price rally. Toshiba lost 2.1 percent on a report its troubled USA nuclear unit is likely to start bankruptcy proceedings this week. Shares of Toshiba are losing more than 4 percent. In the banking sector, Mitsubishi UFJ Financial is losing 2 percent and Sumitomo Mitsui Financial is down nearly 2 percent.
Among the other major gainers, Screen Holdings is advancing 1 percent. The euro was up 0.8 percent at $1.0880 while the dollar slid 1 percent to 110.17 yen.
In South Korea, the Kospi shed 0.49%.
Investors had anxious that the difficulties with the health bill could delay other legislation such as tax reform.
The major European markets turned in a mixed performance on Friday.
The reduced expectations for Trump's reflationary tax and spending proposals also sent equities lower, with the U.S. S&P 500 down 0.75 percent.
Stocks ended slightly lower on Friday as they pared losses in late-afternoon trading.
Oil prices were also active overnight, with benchmark WTI futures for May delivery falling almost 1% to $47.49 per barrel from Friday's closing price while Brent contracts for the same month were marked 0.8% lower at $50.80 each.