“China, over the weekend, announced that it would tighten enforcement, lower guilt thresholds for intellectual property [IP] theft and make it easier to seek compensation from Chinese companies accused of IP miscreance. The small print said by 2022,” said OANDA’s senior market analyst for Asia Pacific, Jeffrey Halley.
“Although long on promise, but short on detail, China’s move appears to be an attempt to mollify one of the US’ main reasons for initiating the trade war in the first place. The hope being to get impetus back into the interim trade talks.”
However, the materials sector also contains Nufarm, which dropped 17.5 per cent to $5.08 after warning of a sharply weaker first-half profit. Nufarm said that “trading conditions have been difficult for 2019-20 to date and this has resulted in lower earnings in all regions for the first quarter compared to the prior year”. It expects first-half earnings before interest, tax, depreciation and amortisation (EBITDA) to be “significantly lower than the prior year”.
Gold miners also declined as the price of the precious metal remains about $US1461.47 per ounce.