Asian Stock Mostly Lower As US Holiday Thins Trade, Oil Down
Asian Stocks Talking Points:
- Equity was mostly lower in a thin session which lacked Japanese markets for direction
- The US Dollar slipped back, while the Euro and Sterling held gains
- Crude oil prices continued to slide
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Asian stocks traded in mixed and cautious fashion as the US Thanksgiving break thinned trade and a Japanese holiday robbed the region of a traditional bellwether, oil prices also headed yet lower as investors worried about demand levels ahead.
Global trade tensions remained as ever to the fore, not helped by the Wall Street Journal reporting that the US has requested that allies stop using products from Chinese tech giant Huawei, citing security concerns. Then there was Brexit. UK assets got a small lift this week from hopes that a Brexit deal is near, but huge doubts remain about the current plan’s chances at legislatures in the UK and on the Continent.
The Shanghai Composite was down 1.3%, in mid-afternoon trade with the Hang Seng off by 0.3%. The Kospi was down 0.8% while the ASX 200 managed modest gains on individual stock stories.
Foreign exchange markets were steady as the Asian session progressed. Japan’s absence from the market made for a think session. Sterling and the Euro held onto their Brexit-hope gains while the US Dollar inched lower again.
Crude oil markets were slammed in thin trade as the prospect of more production than a slowing world economy needs overshadowed the market even as investors looked to supply cuts from traditional producers. US crude hit levels not seen since late 2017, with the daily-chart downtrend in place since the start of last month looking very well entrenched.
Still ahead on the global economic data schedule are various Purchasing Managers Indexes from around Europe and the US, along with official Canadian Consumer Price Index numbers for October.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.