JSE faces weaker Asian markets on Thursday


The JSE faces weak Asian markets on Thursday morning amid a slew of data that painted a mixed picture of China’s recovery from the Covid-19 pandemic.

The world’s second-largest economy grew by a better-than-expected 3.2% in the second quarter, rebounding from an almost 7% contraction in the first.

However, retail sales, a key indication of consumer sentiment, fell short of expectations, shrinking 1.8% in June, Bloomberg reported.

Markets this week have been boosted by vaccine hopes, but geopolitical tension over China’s relationship with the US and rising Covid-19 numbers remains a threat to sentiment.

In morning trade, the Shanghai Composite was down 1.4% and Hong Kong’s Hang Seng 1.17%.

Tencent, which influences the JSE via Naspers, had slumped 3.2%.

Gold was up 0.12% to $1,810.10/oz, while platinum had fallen 0.68% to $826.80. Brent crude was down 0.25% to $43.52 a barrel.

The rand was 0.42% weaker at R16.64/$.

Woolworths is due to release a trading update for its year to end-June later, while TFG is expected to release the final terms of a rights offer, having said recently it is targeting about R3.95bn.


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