JSE faces pressure from coronavirus on Monday
Asian markets are weaker on Monday morning, as investors consider the economic effects of the outbreak in China
The JSE faces weaker Asian markets on Monday morning, with infection rates from the coronavirus and the resultant travel restrictions dominating sentiment.
The economic effects of containment measures are being closely watched, with many cities and provinces in lockdown until at least February 17, National Australia Bank analyst Tapas Strickland said in a note.
US nonfarm payrolls data on Friday came in at a much-better-than-expected 225,000 new jobs in January, but the coronavirus took the gloss off this report, said Strickland.
In Morning trade on Monday the Shanghai Composite was down 0.39% and the Hang Seng 0.77%, while Japan’s Nikkei gave back 0.55%.
Tencent, of which Naspers is the largest shareholder, fell 0.8% in Hong Kong.
The rand was little changed, but has broken through the psychologically important R15/$ level.
Gold was flat at $1,570.08/oz while platinum rose 0.37% to $967.60. Brent crude was 0.18% lower at $54.34 a barrel.
The focus for the week will be China, and whether the country will slowly return to normal, while locally we start to gear up for Thursday’s state of the nation address (Sona), Peregrine Treasury Solutions treasury partner Bianca Botes said in a note.