Asia mar­kets sink at end of up­beat week, lira bat­tered

Daily Mirror (Sri Lanka) - - SPORTS -

Asian mar­kets fell yes­ter­day af­ter a broadly pos­i­tive week as traders await the lat­est de­vel­op­ments in the China-us trade row, while the Turk­ish lira briefly dived 12 per­cent to fresh record lows buf­feted by a diplo­matic row with Wash­ing­ton.

Af­ter last week’s tur­moil, the past five days have seen in­vestors a lit­tle more pos­i­tive as they took in stride tit-for-tat threats of tar­iffs from the world’s top two economies, though the fears of an all-out trade war are keep­ing ev­ery­one on their toes.

How­ever, yes­ter­day Hong Kong fell one per­cent af­ter a four­day win streak.

Tokyo shed 1.3 per­cent de­spite data show­ing the Ja­panese econ­omy grew more than ex­pected in the sec­ond quar­ter. The out­look was dimmed by con­cerns about a trade war with the United States.

Syd­ney was down 0.3 per­cent, Sin­ga­pore shed 1.3 per­cent and Seoul dropped 0.9 per­cent. Taipei, Mum­bai, Manila and Bangkok also lost ground. How­ever, Shang­hai ended the day marginally higher.

The losses fol­lowed a broadly neg­a­tive lead from Wall Street.

With few ma­jor cat­a­lysts in the trade stand-off, fo­cus is now on the re­lease later in the day of US con­sumer price in­dex data for July, which will give an idea about price pres­sures across the coun­try and help guide the Fed­eral Re­serve in its in­ter­est rate plans.

The cen­tral bank is tipped to lift bor­row­ing costs twice more this year, hav­ing al­ready hiked two times so far as Don­ald Trump’s mas­sive tax cuts kick in and the econ­omy con­tin­ues to hum along.

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