Tuesday, 26 September 2017

Asian stocks lower as geopolitics dominate sentiment

Posted by Valentine at 11:19 Labels:

Asian markets were mainly lower on Tuesday as geopolitical tensions in the Korean peninsula were underpinned as North Korea interpreted Trump’s tweet as a “declaration of war”.

Australia ASX -6.10 -0.11%     5,735.60 CLOSED
Shanghai Comp +2.43 +0.07% 3,343.98 CLOSED
Hang Seng Index -31.59 -0.11%            2 7,468.75 OPEN
Nikkei 225 -67.52 -0.33% 20,330.06 CLOSED
TSEC 50 Index -60.14 -0.58% 10,275.759 CLOSED

Pyongyang accused President Donald Trump of declaring war with one of his latest tweets, arguing they now have the right to take down US bombers.

North Korean Foreign Minister Ri Yong Ho told reporters that his nation could target planes which are not even inside theirs airspace frontiers.

"Since the United States declared war on our country, we will have every right to make countermeasures, including the right to shoot down United States strategic bombers even when they are not inside the airspace border of our country," he said in New York.

Over the weekend, tensions between the international community and Kim Jong Un’s regime increased as a 3.4 magnitude earthquake was detected in North Korea.

First reports said it could be the result of a new nuclear test, but scientists discarded that theory, explaining it was most likely a consequence of the September 3 hydrogen bomb launch.

White House press secretary Sarah Huckabee Sanders clarified that there is no war declaration with North Korea as it would be “absurd”.

On the data front, market players will be waiting for the Conference Board to release its latest Consumer Confidence index as of 14:00 GMT. New Home sales are also due by that time.

Ahead in the session, traders will also be keeping an eye on speeches from ECB’s Praet as of 15:00 GMT, FOMC Loretta Mester at 16:30 GMT and FOMC Lael Brainard at 17:30 GMT. However, the main focus will be at Fed Chairwoman Janet Yellen’s speech at 19:45 GMT.

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