A screen displays shares prices inside the Tokyo Stock Exchange. Picture: BLOOMBERG/AKIO KON
A screen displays shares prices inside the Tokyo Stock Exchange. Picture: BLOOMBERG/AKIO KON

The JSE faces sharply higher Asian markets on Tuesday morning, with the rand and locals stocks coming under some pressure on Monday amid month-end flows.

Earlier on Tuesday a private gauge of manufacturing activity in China was at a 10-year high in November, which follows the official purchasing managers’ index for the sector on Monday, which had also been above expectations.

In morning trade both the Shanghai Composite and Japan’s Nikkei were up 1.31%, while the Hang Seng had gained 0.89%.

Tencent, which gives direction to the JSE via Tencent, had risen 2.66%.

Gold was up 0.47% to $1,785.28/oz, while platinum had firmed 2.14% to $983.12. Brent crude was 0.21% weaker at $47.56 a barrel.

The rand was 0.28% firmer at R15.40/$, having fallen 1.27% on Monday, the last day of November.

The rand also felt some pressure as markets are waiting for the two-day congressional testimony from Federal Reserve chair Jerome Powell, Peregrine Treasury Solutions executive director Bianca Botes said in a note. That will provide some direction on stimulus and the US economy, she said.

Powell’s testimony begins later on Tuesday, but in prepared remarks, he had said the US economy remains damaged by the Covid-19 pandemic, and its outlook was uncertain, Bloomberg reported.

The Absa manufacturing purchasing managers’ index (PMI) for November is due later, with most economists expecting it to show a continued expansion of activity, though at a slower pace than in October.

Packaging group Nampak is due to release its results for the year to end-September later, saying in a recent trading update its loss had widened as a result of adverse trading conditions due to the pandemic, while it had written down its businesses in Angola and Nigeria by R4bn.

gernetzkyk@businesslive.co.za

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