DStv Channel 403 Wednesday, 06 November 2024

Stocks mixed, dollar rises as traders weigh Trump shooting

HONG KONG - Asian markets were mixed on Monday as investors weighed the impact of the assassination attempt on Donald Trump with data suggesting it has boosted his chances of being re-elected president.

Eyes are also on a key meeting of China's top leadership in Beijing, with hopes for measures to boost the world's number two economy, which grew less than expected in the second quarter.

Investors struggled to extend the rally enjoyed on Wall Street, where all three main indexes ended on a positive note despite a forecast-topping read on US wholesale prices.

The figures were not enough to overshadow Thursday's news that the consumer price index had slowed more than expected in June, which ramped up bets on a Federal Reserve interest rate cut in September.

That came after central bank chief Jerome Powell told lawmakers that inflation did not need to come in at decision-makers two percent target for them to begin lowering borrowing costs.

However, investors are keeping a close eye on developments in the United States after Trump was hit with a bullet on Saturday at a rally ahead of the Republican convention this week.

While the odds of him beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.

Observers said a Trump victory could see lower corporate taxes -- a boost for companies' bottom lines -- but also an increase in tensions with China with fresh tariffs possible.

The dollar rose Monday, having softened last week owing to the prospect of lower rates, while equity markets were mixed.

Hong Kong, Shanghai, Seoul, Taipei and Jakarta dropped, while Sydney, Singapore, Manila and Wellington rose.

Official data showed the Chinese economy expanded just 4.7 percent in the second quarter, well below the 5.1 percent forecast in a survey by Bloomberg.

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