JSE faces mixed Asian markets on Tuesday amid partial recovery
Chinese stocks faced extreme selloff on Monday as Covid-19 concerns intensified
The JSE, which lost almost 3.5% on Monday, could benefit from signs of recovery for some Asian markets on Tuesday, with US markets also pressing higher overnight despite concerns over China’s Covid-19 outbreak.
Signs that the capital Beijing is headed for a hard lockdown prompted a more than 5% slump in the Shanghai Composite on Monday, its worst day in almost 15 months, but in morning trade it had recovered 0.94%.
The Hang Seng, which lost 3.59% on Monday, had gained 1.83%, while Japan’s Nikkei was up 0.68%.
“It looks more dead cat bounce than brave new world though, as Beijing’s Covid-19 situation has knocked the Ukraine/Russia war, the Federal Reserve, threats of nuclear war from Russia, and even Elon Musk and Twitter off the headlines,” said Oanda senior market analyst Jeffrey Halley in a note.
There was no sign of the modest relief rally spilling into currency markets overnight, said Halley.
US markets firmed overnight, led by tech stocks, including a more than 5% gain for Twitter, which has accepted a buyout offer from Musk.
In morning trade Tencent, which gives direction to the JSE via Naspers, rose 3.24%, having lost 3.88% in the prior session.
Gold was 0.22% higher at $1,902.42/oz, while platinum gained 0.95% to $930. Brent crude was 1.02% higher at $103.30 a barrel.
The rand was 0.13% firmer at R15.65/$, having fallen more than 0.6% on Monday.
Private hospital operator Netcare is due to provide an update for the three months to end-March later, the end of its second quarter, and could reflect continued improvement in its margins as it recovers from the effects of Covid-19.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.