Sun, Aug 16, 2020 page14

• Asian markets drift as US stimulus impasse drags on

  • AFP, HONG KONG
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  Asian markets drifted on Friday as investors grew increasingly concerned about the stalemate in Washington on a new stimulus for the world’s top economy.

  Hopes that Democrats and Republicans would cast aside their mutual animosity to stump up much-needed cash for struggling Americans have been key to supporting equities for weeks.

  Yet they were dealt a blow on Thursday when US senators broke up for a summer recess, saying that they would not return until early next month, while both sides continued to trade accusations over who was to blame for the impasse.

  

  A currency trader walks by the screen showing the KOSPI at the foreign exchange dealing room in Seoul, South Korea, on Friday.

  Photo: AP

  “Congress’ political grandstanding delay is posing some risk for the global recovery,” AxiCorp chief global market strategist Stephen Innes said. “Still, there is no chance of this deal not going through for all the politically tarnishing Frugal Freddy reasons that have been alluded to.”

  Traders in Asia were given a weak lead from Wall Street, where the stimulus struggle trumped better-than-expected data showing fewer than 1 million people claimed jobless benefits last week for the first time since the pandemic struck in March.

  Shares in Taiwan recouped earlier losses to close slightly higher.

  While large-cap tech stocks largely trended lower on the local main board throughout the session, especially in the semiconductor industry, buying shifted to select old-economy stocks to lend some support to the broader market, dealers said.

  The TAIEX ended up 32.33 points, or 0.25 percent, at 12,795.46, after moving between 12,679.19 and 12,801.31, on turnover of NT$212.679 billion (US$7.2 billion). It was down 0.26 percent from 12,828.87 a week earlier.

  The market opened down 0.42 percent on a pullback from the previous session, when the TAIEX closed up 0.73 percent, and selling increased, led by semiconductor heavyweights such as contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), which pushed the index below 12,700 points, dealers said.

  However, bargain hunters became active after seeing the index hit the day’s low, with rotation buying in old-economy stocks, such as cement and paper, pushing the main board into positive territory at the close of trading, dealers added.

  “Thanks to rotational buying in old economy stocks, the TAIEX as a whole remained resilient despite a lackluster performance on US markets,” Hua Nan Securities Co (華南永昌證券) analyst Lu Chin-wei said.

  Tokyo’s benchmark Nikkei 225 rose for a fourth consecutive session on a weak yen, but early gains were largely erased by profit-taking.

  It edged 0.17 percent higher to close at 23,289.36. Over the holiday-shortened week, it gained 4.3 percent.

  The broader TOPIX inched down 0.05 percent to 1,623.38, but was up 4.95 percent from a week earlier.

  In Hong Kong, the Hang Seng Index fell 0.19 percent to 25,183.01. It gained 2.66 percent for the week.

  China’s main Shanghai Composite gained 1.19 percent to close at 3,360.10, increasing 0.18 percent from a week earlier.

  In South Korea, the KOSPI decreased 1.23 percent to 2,407.49, but gained 2.37 percent for the week, while Australia’s S&P/ASX 200 increased 0.58 percent to 6,126.2, rising 2.02 percent from a week earlier.

  Additional reporting by AFP and staff writer, with CNA
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