JSE to grapple with weaker Asian markets on Friday as tech sell-off resumes

The JSE may struggle to hold on to its record high on Friday morning, with tech stocks under pressure yet again as investors consider the prospect of US interest rates rising as soon as March.

US Federal Reserve officials have been testifying before Congress this week, with Thursday seeing some hawkish testimony, as higher energy costs and supply chain disruptions stoke price pressures in the world’s largest economy.

Data on Thursday showed US producer inflation had moderated in December, but had still risen 9.7% year on year in 2021, the highest since 2010, when records began. This follows data on Wednesday that showed consumer inflation reached 7% year on year in December, its highest level since 1982.

Tech stocks were under pressure on Thursday, with the tech-heavy Nasdaq falling 2.5%.

In morning trade on Friday, Japan’s Nikkei was down 1.43% and the Hang Seng 1.03%, while the Shanghai Composite had given back 0.25%.

Tencent, which influences the JSE via Naspers, had lost 2.51%. 

Gold was 0.2% higher at $1,826.43/oz while platinum had risen 0.8% to $977.14/oz. Brent crude was 0.36% higher at $84.36 a barrel.

The rand was flat at R15.39/$.

The local bourse had approached 76,000 points on Thursday, and will need to lose 2.6% to reach last week Friday’s close.

The local corporate and economic calendar is bare.

gernetzkyk@businesslive.co.za