Oops he did it again,Asian equities walloped

Equities in Asia lost ground on Wednesday, with Dow futures tumbling and the safe-haven yen climbing amid political and legal turmoil surrounding U.S. President Donald Trump.

“Investors are deeply concerned that all the political noise will morph into economic risk as the political back-fence talk, speculation and dirty laundry could detract from Trump’s key agenda: Tax reform,” Stephen Innes, senior trader at OANDA, said in a note on Wednesday.

The Dow Jones industrial average futures for June tumbled 121 points to 20,813 by 8:40 a.m. HK/SIN, compared with the index’s close at 20,979.75 as risk-off sentiment struck the market.

The Nikkei fell 0.62 percent by 8:36 a.m. as the safe-haven yen strengthened in the wake of renewed political risk. The dollar was fetching just 112.57 yen at 8:02 a.m. HK/SIN, an around two-week low.

Across the Korean Strait in South Korea, the Kospi was down 0.35 percent. Australia’s S&P/ASX 200 dropped 0.81 percent.

Equities in Asia lost ground on Wednesday, with Dow futures tumbling and the safe-haven yen climbing amid political and legal turmoil surrounding U.S. President Donald Trump.

“Investors are deeply concerned that all the political noise will morph into economic risk as the political back-fence talk, speculation and dirty laundry could detract from Trump’s key agenda: Tax reform,” Stephen Innes, senior trader at OANDA, said in a note on Wednesday.

The Dow Jones industrial average futures for June tumbled 121 points to 20,813 by 8:40 a.m. HK/SIN, compared with the index’s close at 20,979.75 as risk-off sentiment struck the market.

The Nikkei fell 0.62 percent by 8:36 a.m. as the safe-haven yen strengthened in the wake of renewed political risk. The dollar was fetching just 112.57 yen at 8:02 a.m. HK/SIN, an around two-week low.

 

The euro rose to a six-month high as political event risk receded from the continent. The common currency last traded against the dollar at $1.1088, compared with levels under $1.09 last week.

In the U.S., Trump defended his actions, saying on Twitter that he had “the absolute right” to share classified intelligence with Russian officials. The President’s tweets came after his national security adviser told the media that the incident reported by the Washington Post did not take place.

Additionally, a New York Times report on Tuesday, later confirmed by NBC News, Trump allegedly asked then-FBI Director James Comey, who Trump later fired, to stop investigating now-fired national security adviser Michael Flynn.

Elsewhere, calls grew for a wider investigation as a key House Republican asked the FBI on Tuesday for any records it has on communications between former FBI Director James Comey and President Donald Trump.

Symbol
Name
Price
Change
%Change
NIKKEI NIKKEI 19813.53
-106.29 -0.53%
HSI HSI 25335.94
UNCH 0%
ASX 200 S&P/ASX 200 5808.80
-41.72 -0.71%
SHANGHAI Shanghai 3112.85
-0.11 0%
KOSPI KOSPI Index 2292.27
-3.06 -0.13%
CNBC 100 CNBC 100 ASIA IDX 7548.60
-7.77 -0.10%

Chinese tech stocks are also likely to be in the spotlight, with the Hong Kong-listed Tencent expected to report earnings today. Nasdaq-listed Weibo and Sina released their earnings for the first quarter in the U.S. on Tuesday. Sina rose sharply after earnings per share came in at $0.50 per share, well above FactSet estimates of $0.17.

In currency news, the dollar continued to sag. The dollar index, which measures the greenback against a basket of rival currencies, was down at 98.087 at 8:38 a.m. HK/SIN, compared with levels above 99 last week.

“While there is no particular headline behind the move, a likely combination of slipping U.S. yields, softer oil prices and heightened political uncertainty in Washington are providing traders with this morning’s toxic dollar elixir. While the market is fishing for a base this morning, momentum does suggest there is the potential for a deeper U.S. dollar selloff,” OANDA’s Innes said.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes