A pedestrian walks past an electronic stock board displaying a graph of the exchange rate of the yen against the U.S. dollar at a securities firm in Tokyo, Japan, on Thursday, Aug. 30, (******************************************.
Kiyoshi Ota | Bloomberg | Getty Images
Asia Pacific markets traded mixed on Monday as Brexit developments over the weekend created further uncertainty over the United Kingdom’s impending departure from the European Union.
Mainland Chinese shares traded down: TheShanghai compositefell 0. 51%, the Shenzhen composite was down 0. 52% and the Shenzhen component lost 0. 11%.
In Hong Kong, theHang Seng indexadvanced 0. 17%
Overall,MSCI’s broadest index of Asia shares outside Japanrose 0. 19%.
“Global markets and political events appear to be in the” half-full “mode, whereby outcomes are not altogether dire; even if some degree of uncertainty and risks linger, “Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a morning note.
UK Prime Minister Boris Johnson wasthwarted by a cross-party group of politiciansin Parliament who voted to postpone the “meaningful vote” on his new Brexit deal. That forced Johnson toask Brussels for an extensionto the current October 31 departure deadline, but EU leaders don’t necessarily have to accept it.
This week, the British government will present the full Withdrawal Agreement Bill to try and pass it through both the upper and lower houses of Parliament. A decisive vote by lawmakers would likely come later in the week.
The pound “is likely to remain somewhat volatile, but supported, because it appears the chances of ah ard (no deal) Brexit are very slim, and either another Brexit delay, or the ratification of the new Withdrawal Agreement in the U.K. House of Commons, will occur this week, “currency strategists at the Commonwealth Bank of Australia wrote in a morning note.
TheBritish poundchanged hands at $ 1. 2916, climbing from an earlier level around $ 1. 2873 but lower than its previous close at $ 1. 2971.
US-China trade talks
Elsewhere, theUS and China made ‘substantial progress’ at trade talks, according to Chinese Vice Premier Liu He, Reuters reported. After reaching apartial trade deal earlier this month, Beijing and Washington are working to pen a written agreement.
Both sides have applied tariffs on billions of dollars worth of each other’s products, which have roiled global markets, created business uncertainty and dented e conomic outlooks around the world. China said last weekits economy grew by 6% on-year in the third quarter, which is believed to be the slowest GDP gain for the country in at least 27 .5 years.
“US-China trade tensions are weighing on China’s manufacturing and export sectors while Beijing’s measured fiscal and monetary stimulus are only an offsetting force,” Rodrigo Catril, a senior foreign-exchange strategist at the National Australia Bank, wrote in a morning note .
“China’s economic growth is slowing as officials have one eye on US tensions while at the same time they strive to tidy up the financial system and limit excessive credit growth,” Catril said , adding if US tariffs are not removed, “further economic slowdown looks likely.”
Currencies and oil
TheUS dollartraded at 97. 340 against a basket of its peers, dropping from levels near 97. 400.