- HSBC on track for third day of losses over dividend cancellation
- Trump tweets that oil production may slow, lifting prices
Asia-Pacific stock markets were mixed Friday, with traders torn between hopes Russia and Saudi Arabia will reduce oil production and the coronavirus' latest grim markers: US weekly jobless claims hit 6.6 million and the world reached 1 million virus infections.
Overnight, US stocks gained, particularly those connected to oil prices, as President Donald Trump suggested in a tweet that he had gotten Russia and Saudi Arabia to agree to produce less. Questions are being raised, though, about exactly what has happened in the price war, which came a fraught time when the world was dealing with a health crisis the likes of which it has never seen.
The virus continued its destructive path, with more than 52,000 dead around the world. About one-third of humankind is under lockdown due to the virus, which has upended supply chains and businesses, led to major job losses and shattered consumer buying habits.
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The Hang Seng Index fell 0.7, as bars are set to close beginning Friday night for two weeks as part of the government's social distancing rules.
HSBC is on track for its third day of falls after announcing it was cancelling its dividend. It fell 2.3 per cent in early trading.
The Shanghai Composite Index slid 0.3 per cent.
Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!
" Donald J. Trump (@realDonaldTrump) April 2, 2020
"Even if the market has seemingly hit a trough, equities rarely bounce back to their previous highs immediately. A medical breakthrough could cause that, but for investors to get back on board the rally bus, they will need to see falling case numbers, alongside an end in sight to mobility restrictions," said Stephen Innes, chief global market strategist at AxiCorp.
"We are entering a climate with lower or no dividends, fewer financial options, but most importantly, fewer jobs, lower output, and probably a lot fewer companies around the world. Many small and large-sized businesses will not survive this storm," he said.
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Elsewhere in Asia-Pacific, markets were mixed in early trading.
South Korea's Kospi Index, which rose 2.3 per cent on Thursday and fell 3.9 per cent on Wednesday, slid 0.1 per cent. The tech-heavy Kosdaq gained 0.6 per cent after increasing 2.9 per cent on Thursday. A government report on Wednesday showed exports slipping more than expected by 0.2 per cent in March from a year earlier.
Tokyo's Nikkei 225 rose 0.7 per cent after retreating 1.4 per cent the day before. On Wednesday, it plunged 4.5 per cent after its worst quarter since 1987. Japan's new Manufacturing Purchasing Managers' Index fell to a seasonally adjusted 44.8 from 47.8 in February, its lowest point since April 2009.
Australia's S&P/ASX200 slid 0.2 per cent. It fell 2 per cent on Thursday after going up 3.6 per cent on Wednesday. The country's stocks have been especially volatile as it faces its worst recession in 90 years.
New Zealand's S&P/NZX50 rose 0.5 per cent. It shed 0.6 per cent on Thursday and gained 1.3 per cent on Wednesday.
Singapore's Straits Times Index fell 0.4 per cent.
More to follow
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