On the Tokyo Stock Exchange, the Nikkei star index finished 1.24% decrease to 40,290.70 points, after dropping more than 2% at the opening, and the enlarged Topix index closed up to 1.10% to 2,916.20 points.
Asian scholarships appeared at half mast on Monday, Tokyo falling by more than 2% in session, mined by employment figures in the United States deemed particularly disappointing and still affected by the announcement of strong customs surcharges by Washington.
On the Tokyo Stock Exchange, the Nikkei star index finished 1.24% decrease to 40,290.70 points, after dropping more than 2% at the opening, and the enlarged Topix index closed up to 1.10% to 2,916.20 points.
The other places had mixed trajectories: Seoul climbed 0.91%, but Sydney finished in balance (+0.02%) and Taipei sold 0.24%. The Hong Kong Hang Seng index won 0.77% around 06:30 GMT in very volatile exchanges.
The Asia markets followed suit with the declines recorded on Friday in the United States and Europe, in the wake of employment figures in the United States deemed particularly disappointing.
In question: the situation deteriorated in July, with an unemployment rate increasing at 4.2%. Job creations have been established at 73,000, and those in May and June have been strongly revised downwards, at more seen levels from the Cavid-19 pandemic.
However, the weakness of the data fuels the concern of investors after the vigorous rebound of Wall Street for three consecutive months, and exacerbates speculations on the ability of the American economy to resist the customs offensive of President Donald Trump.
“The Asian stock markets opened the week behind, taken short by a rare fragility of the armor in teflon of the American economy (…) The withdrawal of Wall Street Friday sowed the pacifique throughout the Pacific,” said Stephen Innes, of SPI ASSET Management.
Another factor weighing on the market, according to him: “The rumors that Trump will soon appoint his own president to the board of directors of the American federal reserve (Fed) … The Fed trajectory could change, not because of inflation or growth dynamics, but because independence is threatened”.
Finally, investors’ morale remains darkened by the strong customs surcharges announced by Washington on Friday, even if the latter put an end to an uncertainty harmful to businesses.
In general, risk aversion remains palpable. Gold, a refuge value par excellence, has further strengthened at the start of Asian exchanges after fleeing on Friday.
For its part, around 06:30 GMT, the Japanese currency yielded 0.20% to 147.70 yen for a dollar.
Byd tumbles, sales stagnate
Chinese car manufacturer byd, champion of the electric car, saw its title plummeting some 4% at the start of the session in Hong Kong. Around 6:30 am, it only lost 1.70% but remained under pressure.
The low monthly sales growth arouses doubts about its ability to achieve its annual objective: its vehicle sales in July represent a meager increase of 0.6% over a year, but above all a decrease of 10% compared to June, against the backdrop of opposite winds in China where manufacturers are engaged in a sharp price war.
Dull oil, digests the Opep and watches India
The petroleum market digests a decision from the black gold producing countries: continuing their strategy to reconquer market share, Ryad, Moscow and six other OPEC+ producers have, as expected, once again increased their quotas during a meeting on Sunday.
After starting the exchanges in the red, the lessons quickly erased their losses. Around 06:30 GMT, the barrel of American WTI gained 0.13% at 67.43 dollars and that of Brent from the North Sea 0.04% at 69.70 dollars.
“OPEC+ has not reserved surprises (…) We think that the group has finished with its supply increases, while we are leaving the period of high summer demand and stocks are starting to increase,” comment ING analysts.
But, they warn, “it all also depends on the evolution of Russian oil flows, while the Trump administration threatens India for sanctions for its purchases of Russian hydrocarbons”.
“If the United States manages to target these flows, the market will tighten considerably and OPEC+ will have to further exploit its excess production capacities,” they say.
