JSE could follow Asian markets higher on Tuesday morning
The JSE could follow Asian markets higher on Tuesday morning as stock markets continue to cheer an agreement that saw the US refrain from imposing tariffs on goods from Mexico.
Late last week, the US and Mexico agreed to a deal over illegal immigration, prompting President Donald Trump to hold fire on tariffs against the US’s neighbour.
That boosted stocks on Monday, and Asian markets opened higher again on Tuesday, even as attention shifts back towards US-China trade negotiations. Trump warned that if Chinese President Xi Jinping failed to attend the G20 meeting later in June, he would impose more tariffs on Chinese goods.
But the Shanghai Composite index added 1.9% on Tuesday morning and Hong Kong’s Hang Seng Index rose 0.8%. Japan’s Nikkei 225 and Korea’s Kospi both gained 0.3%, while Australia’s main benchmark lifted 1.5%.
Chinese internet and gaming giant Tencent, which is 31% owned by JSE-heavyweight Naspers, edged 0.1% lower in Hong Kong.
At the same time, JSE-listed miner BHP Group rose 1.8% in Australia.
JSE-listed Trustco is due to publish results for the year to end-March on Tuesday. The group has said headline earnings per share increased by 157% to 176% compared to the prior year.
Stor-Age Property REIT is also expected to release annual results.
“At the interim, management guided for distribution growth to be between 9% and 10% for financial year 2019,” FNB Securities said in a note.
“Leadership noted that the economic environment in SA was anticipated to remain weak while the UK business was expected to continue to deliver revenue growth through occupancy gains.”
According to FNB Securities, Tuesday marks the last day to trade in Afrimat, Balwin Properties, Combined Motor Holdings, Hospitality Property Fund, Investec Property Fund, Mediclinic International, Telkom SA, Tradehold and Tsogo Sun shares to receive their recently declared distributions.
Meanwhile, Statistics SA is due to report manufacturing data for April on Tuesday.
The rand continued its recovery on Tuesday morning. The local currency was trading at R14.78/$, R18.74/£, and R16.72/€.