JSE could benefit from higher Asian markets on Tuesday
The JSE faces higher Asian markets on Tuesday morning, though sentiment remains fragile with concerns over Covid-19 and global inflation continuing to threaten volatility.
Parts of SA are grappling with a third wave, with Asia also battling rising infection levels, prompting Japan to recently extend lockdown restrictions. Data have also shown that the GDP of the world’s third-largest economy fell more than expected in he first quarter of 2021.
Covid-19 in Asia continues to weigh on sentiment in Asia, but seems to be noticeably less so looking at equity markets on Tuesday, said Oanda senior market analyst Jeffrey Halley in a note.
“The street remains myopically focused on the US and Europe recovery, with record German daily vaccinations underpinning the euro and equities in the region,” he said.
Asian markets got little direction from Asian markets overnight, Halley added.
In morning trade Japan’s Nikkei had gained 2.22% and the Hang Seng 1.05%, while the Shanghai Composite was flat.
Tencent, of which the Naspers stable holds a sizeable stake, was up 0.5%.
Gold was 0.11% higher at $1,868.49/oz, while platinum was little changed at $1,237.90. Brent crude was 0.16% higher at $69.69 a barrel.
The rand was 0.22% firmer at R14.05/$.
Vodacom, SA’s biggest mobile phone operator, is due to report its full-year results to end-March later, though it has not recently issued a trading update for the period. The group has said previously revenue grew 6.4% in its quarter to end-December, with its financial services unit performing particularly well.
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