Last updated Saturday, December 10, 2016 4:42 pm GMT+8

Friday December 2, 2016
05:13 PM GMT+8

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A panel displaying stock indices of Asian markets at Hong Kong Exchanges in Hong Kong, November 9, 2016. — Reuters picA panel displaying stock indices of Asian markets at Hong Kong Exchanges in Hong Kong, November 9, 2016. — Reuters picHONG KONG, Dec 2 — Asian stocks turned negative today and oil prices retreated along with the dollar as investors took a step back from a recent rally, while caution set in ahead of a crunch referendum in Italy at the weekend.

World markets have been rising since Donald Trump’s shock US election win on hopes his big-spending, tax-cutting policies will boost the world’s largest economy.

The advance was given extra impetus Wednesday when OPEC agreed on a plan to cut oil production, sending prices soaring.

But James Woods, global investment analyst at Rivkin Securities in Sydney, told Bloomberg News: “Markets have rallied pretty strongly and we had three fantastic weeks but buying pressure certainly looks exhausted.

“We will see some corrective declines and profit taking.”

Japan’s Nikkei, which yesterday closed at its highest level this year, slipped 0.5 per cent, while Hong Kong gave up 1.4 per cent and Shanghai slipped 0.9 per cent.

Sydney fell one per cent and Seoul shed 0.7 per cent, while Singapore gave back 0.3 per cent. Wellington and Taipei were also down.

In early European trade London fell 0.8 per cent, Frankfurt shed 0.9 per cent and Paris slipped 0.7 per cent.

Japanese exporters retreated on the back of a strengthening yen. In afternoon trade the dollar bought 114.05 yen, having flirted with 115 yen earlier this week, which was a nine-month high.

On oil markets both main contracts dipped marginally after racking up double-digit gains in the previous two days in reaction to OPEC’s output-cutting deal.

Traders are now awaiting key events at the weekend. Today the US releases its November jobs report, which could give an indication of the Federal Reserve’s plans for interest rates over the next year.

And on Sunday Italy goes to the polls for a constitutional referendum, with Prime Minister Matteo Renzi saying he will resign if his government loses, leading to a possible general election.

While experts say the chances of a Eurosceptic party gaining power is low, there are worries about the uncertainty it could create in one of the EU’s biggest economies.

Also Sunday Austrians will vote for a new president, with Norbert Hofer seeking to become Europe’s first far-right president since 1945.

While the post is largely ceremonial, a win for Hofer would be a major symbolic victory for populists — many of whom are anti-EU — across Europe ahead of several elections in 2017. — AFP

Key figures around 0800 GMT

Tokyo — Nikkei 225: DOWN 0.5 per cent at 18,426.08 (close)

Hong Kong — Hang Seng: DOWN 1.4 per cent at 22,564.82 (close)

Shanghai — Composite: DOWN 0.9 per cent at 3,243.84 (close)

London — FTSE 100: DOWN 0.8 per cent at 6,701.97

Euro/dollar: UP at US$1.0680 from US$1.0661 Thursday

Dollar/yen: DOWN at 114.05 yen from 114.11 yen

Pound/dollar: UP at US$1.2633 from US$1.2591

Oil — West Texas Intermediate: DOWN 16 cents at US$50.90 per barrel

Oil — Brent North Sea: DOWN 41 cents at US$53.53 per barrel

New York — Dow: UP 0.4 per cent at 19,191.93 (close)

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