JSE. Picture: MICHAEL ETTERSHANK
JSE. Picture: MICHAEL ETTERSHANK

The JSE may take its lead from firmly higher Asian markets on Monday morning, with sentiment boosted by news the US won’t impose sanctions on Chinese officials over Hong Kong.

Markets have been watching for the White House response to new security laws in Hong Kong that threaten to spark an escalation in the trade conflict between the world’s two largest economies.

As expected, the US withdrew Hong Kong’s special status over the new China-imposed security law, but did not withdraw from the first phase of the US-China trade agreement signed in January or impose sanctions on Chinese officials or persons connected to the regime, said Oanda senior market analyst Jeffrey Halley in a note.

“The collective sigh of relief in Asia is palpable this morning,” said Halley.

In morning trade Hong Kong’s Hang Seng had added 3.22% and the Shanghai composite 1.97%.

Gold was up 0.38% to $1.741.77 an ounce while platinum had risen 0.85% to $837.95. Brent crude was down 0.11% to $37.60 a barrel.

The rand was 0.65% firmer at R18.47 a dollar.

Local focus on Monday is on the release of the Absa Manufacturing Purchasing Managers’ Index (PMI) and the IHS Markit SA PMI for May, with both expected to remain in contractionary territory.

gernetzkyk@businesslive.co.za