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The JSE could benefit from a positive session for major Asian bourses on Thursday morning, with the Bank of Japan pressing ahead with monetary policy support.

The Bank of Japan is earring on the side of caution and is pursuing its ultra-dovish policy, SPI Asset Management managing partner Stephen Innes said in a note.

There is still risk aversion in currency markets, said Innes, amid growing demand-side risks in the economy, including China’s lockdowns and the war in Ukraine.

Global sentiment was supported on Wednesday, when the JSE was closed for Freedom Day, amid promises from Beijing that it would enact targeted policy support, for example for small businesses and agriculture, as it continues to battle with the pandemic.

The rand had extended losses on Thursday morning, on track for a ninth consecutive session of falls, trading 0.48% lower at R15.95/$. The local currency had touched R15.99/$ on Wednesday, and had last traded above the psychologically important R16/$ level in January.

In morning trade on Thursday, Japan’s Nikkei was up 1.12% and the Hang Seng 1.25%, while the Shanghai Composite had gained 0.25%.

Tencent, which can influence the direction of the JSE via Naspers, had risen 0.18%.

Gold was down 0.41% to $1,877.88/oz, while platinum had fallen 0.51% to $912. Brent crude was 1.32% lower at $103.46 a barrel.

Locally, producer inflation data for March is due later, and is expected to show acceleration given surging global food and energy prices. Producer inflation is expected to have remained above 10% for a fourth consecutive month in March, having risen 10.5% in February.

Pharmacy group Clicks is due to report its results for its half-year to the end of February later, and has flagged a more than 20% rise in headline earnings per share, bolstered by insurance proceeds it received in the wake of the civil unrest in July 2021.



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