Asian shares struggle after yet another Brexit delay
By Hideyuki Sano TOKYO (Reuters) - Asian shares and U.S. stock futures dipped on Wednesday after British lawmakers rejected the government's timetable to fast-track legislation for its deal to take Britain out of the European Union. Technology shares in the region were knocked after Texas Instruments forecast current-quarter revenue well below estimates in a sign the global microchip industry is being squeezed by a downturn in demand and a prolonged U.S.-China trade dispute.
By Hideyuki Sano
TOKYO (Reuters) - Asian shares and U.S. stock futures dipped on Wednesday after British lawmakers rejected the government's timetable to fast-track legislation for its deal to take Britain out of the European Union.
Technology shares in the region were knocked after Texas Instruments
In after-hour trade, Texas Instruments shares tumbled 9.8%, driving down other chipmaker shares including Intel
In Asia, SK Hynix <005930.KS> slipped 1.0% while Tokyo Electron <8035.T> fell 3.6%.
"This will be a warning on semi-conductor shares, which have put on a strong performance recently," said Norihiro Fujito, chief investment analyst at Mitsubishi UFJ Morgan Stanley Securities.
S&P500 mini futures
On Tuesday on Wall Street, the S&P 500 <.SPX> lost 0.36%.
In the currency market, sterling traded at $1.2897
But the currency still kept hefty gains made over the past fortnight on growing expectations that a no-deal Brexit will be avoided even though it is still not clear how the process will unravel.
The defeat in parliament meant Britain would not be able to finalise its exit by Prime Minister Boris Johnson's Oct. 31 deadline.
The next step, Johnson said, would be waiting for the EU to respond to a request to delay the Oct. 31 Brexit date, which the prime minister reluctantly sent to Brussels on Saturday after being forced to do so by lawmakers.
A source in Johnson's office said on Tuesday that a new election is the only way to move on from Britain's Brexit crisis if the European Union agrees to a delay until January.
"Broadly speaking, there are two scenarios. There will be a short extension before the parliament will agree on Johnson's plan. Or there could be a general election, which would need a longer extension," said Kyosuke Suzuki, director of forex at Societe Generale.
"But it now seems unlikely that Britain will crash out of the EU on Oct. 31," he said.
Receding worries about a no-deal Brexit also underpinned the euro, which stood at $1.1130
The yen ticked up to 108.48 yen per dollar
The dollar was broadly weak, ahead of a Federal Reserve policy meeting next week, where policy makers are expected to cut interest rates by 0.25 percentage point.
Oil prices fell after industry group data showed U.S. crude stocks rose more than expected last week.
Still, on the whole the market held firm after China signalled progress in trade talks with the United States and OPEC and its allies pondered deeper production cuts.
(Editing by Shri Navaratnam)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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