Asian equity indices ended in green on Monday, with the benchmark indices heading for its biggest rally in six months. China’s slumping property market is fueling speculation that the industry is set for a shakeout as small developers face difficulty raising funds to pay off debt. China’s real-estate industry poses the biggest near-term risk to growth in the world’s second-largest economy after new home prices dropped in the most cities in two years in June. China’s consumer inflation came in as forecast at 2.3% rise, reinforcing bets that benign price pressures will give authorities room to relax monetary policy if needed. The producer price index fell 0.9% for the 29th consecutive month. On a monthly basis, consumer inflation ran at 0.1% in July. Japanese Household Confidence rose to a seasonally adjusted annual rate of 41.5, from 41.1 in the preceding month. Japan’s M2 Money Stock remained unchanged at a seasonally adjusted 3.0% while Japanese tertiary industry activity index fell to a seasonally adjusted -0.1%, from 0.9% in the preceding month.
Malaysian Industrial Production rose to a seasonally adjusted annual rate of 7.0%, from 6.0% in the preceding month. Singapore Prime Minister Lee Hsien Loong narrowed the government’s forecast for economic growth this year and stated that the country must review its strategies as its needs evolve. The Southeast Asian nation’s growth domestic product will probably expand 2.5% to 3.5% this year. The range is narrower than a previous prediction of 2% to 4%. The minister added that the economy grew 3.5% in the first half.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2224.65 | 30.23 | 1.38 |
Hang Seng | 24646.02 | 314.61 | 1.29 |
Jakarta Composite | 5113.24 | 59.48 | 1.18 |
KLSE Composite | 1849.32 | 9.45 | 0.51 |
Nikkei 225 | 15130.52 | 352.15 | 2.38 |
Straits Times | 3306.45 | 17.56 | 0.53 |
KOSPI Composite | 2039.37 | 8.27 | 0.41 |
Taiwan Weighted | 9172.91 | 86.95 | 0.96 |
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