Global Stocks Shrug Off U.S. Government Shutdown
January 21 2018 - 9:53PM
Dow Jones News
By Kenan Machado
Asian stocks were largely muted early Monday following the
federal government shutdown in the U.S., but South Korea's
benchmark index slipped on fresh worries about iPhone demand.
Samsung Electronics fell 2% amid speculation that orders for the
iPhone X would be cut. Although the smartphone maker is Apple's
biggest rival, it is also a global manufacturer of components.
Samsung's next-generation displays feature organic
light-emitting diodes, or OLED, technology Apple has adopted for
the iPhone X. But SK Kim, who tracks Samsung for Daiwa Securities,
said there are some concerns Apple could stop using OLED screens
amid quality issues.
"However, I think the market reaction is overdone," he
added.
The Kospi was recently 1% lower, dragged down by index
heavyweight Samsung.
Stocks in other Asian markets were little swayed by the U.S.
budget impasse, with the situation largely seen as "political
brinkmanship with little economic impact," said Michael McCarthy,
chief market strategist at CMC Markets. The previous government
shutdown, in late 2013, had no effect on the economy.
The Wall Street Journal Dollar Index was recently down 0.1%,
10-year Treasury yields remained at 2.66% and S&P 500 futures
were off 0.1%.
New Zealand's NZX-50 was up 0.5%, rebounding from early losses
on concerns about the surge in the country's currency following
2017 weakness.
The New Zealand dollar recently hit multimonth highs against its
U.S. counterpart, leading to declines in some export-reliant
companies. But the currency rally took a pause in recent days,
helping to extend gains for a2 Milk, which rose another 3.5%
Monday.
(END) Dow Jones Newswires
January 21, 2018 21:38 ET (02:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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