JSE could open slightly higher on Tuesday as Asian stocks recover
The JSE could open a little higher on Tuesday as Asian stocks recover slightly amid trade talks between the US and Japan.
US President Donald Trump said on Monday he hoped to finalise a trade deal with Japan soon, according to media reports. This comes after trade negotiations between the US and China broke down.
Japan’s Nikkei 225 was 0.4% up on Tuesday, and Hong Kong’s Hang Seng index and Australia’s main benchmark both gained 0.5%, the Shanghai Composite added 0.9%, while Korea’s Kospi edged up 0.1%.
Chinese internet and gaming giant Tencent, which has been on the back foot amid concerns that the trade war is turning into a technology war, rose 1.6% on Tuesday. That suggests a strong opening for major shareholder Naspers.
BHP Group, another JSE heavyweight, was 1.5% up in Australia.
JSE-listed Cartrack is scheduled to report full-year results on Tuesday, while no major data releases are expected in SA.
Elsewhere, the EU is expected to publish consumer confidence, business climate and industrial sentiment data, while the US is due to release house price and consumer confidence figures.
The rand was at R14.44/$, R18.30/£, and R16.14/€ on Tuesday morning.
“The trade war, as well as the cabinet announcement, remains in focus while the rand continues to remain fairly stable given the market environment,” said Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions.