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Most Asia markets climb following Wall Street dip on Trump government shutdown threat – CNBC

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Trump on Tuesday in the U.S. said he would be willing to “close down” the government to secure funds needed to build a wall along the U.S.-Mexico border. The president had repeatedly pledged he would construct a border wall that Mexico would pay for as part of his plan to tackle illegal immigration, although Mexico has said it would not be funding the barrier.

During the rally in Arizona, the president also said he had doubts over whether a deal could be secured in the renegotiation of the North American Free Trade Agreement. Trump said he believed the U.S. would “end up probably terminating NAFTA.”

Stocks on Wall Street closed lower following Trump’s comments, with the Dow Jones industrial average declining 0.40 percent, or 87.80 points, to close at 21,812.09.

Demand for traditional safe-haven assets eased after climbing overnight: The dollar climbed back above the 109 handle against the Japanese currency to fetch 109.16 yen at 9:34 a.m. HK/SIN compared to levels as low as 108.82 yen seen earlier. The dollar index, which tracks the greenback against a basket of currencies, firmed to stand at 93.255 compared to an overnight low of 93.126.

Meanwhile, spot gold edged down to trade at $1,288.11 an ounce after fetching as high as $1,291.17 overnight. Gold is often regarded as a safe haven by investors during periods of uncertainty.

On the energy front, oil prices eased after gaining more than one percent Wednesday. The rise overnight followed a fall in U.S. crude stockpiles for an eighth consecutive week, according to Reuters. Brent crude futures was off 0.15 percent at $52.49 a barrel and U.S. crude futures slipped 0.17 percent to trade at $48.33.

In corporate news, Samsung Electronics launched its Galaxy Note 8 model in New York on Wednesday. The company was forced to recall its Galaxy Note 7 model last year after a battery problem led to several devices overheating and catching fire. Samsung shares were off 0.04.

Market movers during the session included Australia’s Flight Centre Travel Group, which saw its stock jump 11.11 percent after reporting full-year earnings. The company’s full-year profit decreased by 5.6 percent to A$230.8 million ($182.33 million), but that remained above analyst expectations of A$224.1 million, according to Reuters.

Most Hong Kong-listed gaming stocks were lower in early trade after Macau experienced a power shutdown when typhoon Hato hit the city on Wednesday. Sands China was down 0.85 percent and Galaxy Entertainment fell 0.93 percent. Power restoration in Macau began Wednesday afternoon, but some residents remained without electricity in the evening, South China Morning Post reported.

With little data due to be released during the Asian trading session, markets are likely to return their focus on a central banking conference in Jackson Hole beginning Thursday U.S. time.

“A sense of anticipation can be felt across the financial markets ahead of the Jackson Hole Symposium later this week,” said FXTM research analyst Lukman Otunuga in a Wednesday evening note.

While European Central Bank President Mario Draghi is not expected to deliver new policy messaging, the possibility of “verbal intervention to weaken the euro” should not be ruled out, Otunuga added.

The common currency was mostly flat at $1.1806 at 9:39 a.m. HK/SIN.


Most Asia markets climb following Wall Street dip on Trump government shutdown threat – CNBC}

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