JSE faces mixed Asian markets on Tuesday as Ukraine crisis continues

The JSE faces mixed Asian markets on Tuesday morning, with focus still on geopolitics, as concerns mount over the possibility of a military conflict in the Ukraine.

The US has urged its citizens to leave Belarus, a close ally of Russia, while German Chancellor Olaf Scholtz is heading to Moscow on Tuesday in a bid to ease tensions.

The rising possibility of conflict has buoyed global energy prices, an added blow for investors already bracing for less accommodative monetary policy in 2022.

“The febrile state of risk asset markets linked to Russia-Ukraine related news reports hasn’t completely deflected attention from Fed policy considerations,” said National Australia Bank head of foreign exchange strategy Ray Attrill in a note.

Overnight, Fed policymaker James Bullard had reiterated his call for 100 basis points of hikes by July, which implies at least one 50 basis point hike by then.

In morning trade on Tuesday the Shanghai Composite was up 0.4%, while the Hang Seng had lost 0.7% and Japan’s Nikkei 0.44%.

Tencent, which influences the JSE via the Naspers stable, was down 0.21%.

Gold was up 0.35% to $1,877.87/oz, while platinum had risen 0.27% to $1,030. Brent crude was 0.13% higher at $95.87, having risen 23% so far in 2022.

The rand was 0.42% higher at R15.06/$, having firmed more than 5% so far this year. Investec chief economist Annabel Bishop said in a note on Monday the local currency continued to benefit from global growth expectations, buoyant commodity prices, and continued investor interest in SA’s relatively high-yielding bonds.

The local corporate and economic calendar is bare on Tuesday, with focus expected to be largely offshore.

gernetzkyk@businesslive.co.za