JSE faces muted Asian markets on Friday as investor wait for fresh catalysts

The JSE faces a somewhat subdued Asian session on Friday morning, but still needs to lose about 2.5% to reach last week's close.

Riskier assets got a significant shot in the arm this week after US consumer inflation numbers came in well below expectations, still climbing a hefty 8.5% year on year in July, but still enough to ease concerns about future interest rate hikes.

US producer inflation was much better than expected in July, data showed on Thursday, falling to 9.8% year on year, from 11.4% previously. 

There was, however, little market interest following Wednesday’s more closely watched consumer prices, National Australia Bank economist Taylor Nugent said in a note.

Local data was less impressive on Thursday, with manufacturing showing a fourth month of contraction in June, and mining a fifth month, however the JSE had still added 2.18%.

In morning trade on Friday the Hang Seng was up 0.11% while the Shanghai Composite was down 0.16%. Japan’s Nikkei, closed on Thursday for a public holiday, had gained 2.46%.

Tencent was down 0.46%, with the Chinese tech giant important to the JSE due to the Naspers stable.

Gold was up 0.11% to $1,791.06/oz while platinum was little changed at $956.80. Brent crude was 0.23% lower at $99.11 a barrel.

The rand was flat at R16.25/$, having firmed 3.2% over the past five sessions.

The local corporate calendar is bare on Friday, as is the economic calendar.

gernetzkyk@businesslive.co.za