Asian equity indices ended mostly in green on Wednesday, with the regional gauge gaining a third day, as investors weighed earnings and economic reports. Japan’s economy contracted the most since the record earthquake three years ago as consumption and investment plunged after an April sales-tax increase aimed at curbing the world’s biggest debt burden. Gross domestic product shrank an annualized 6.8% in the three months through June. Unadjusted for price changes, GDP declined 0.4%. A drop in economic output was expected after the nation’s consumption tax was increased in April to 8% from 5%. This was the first time Japan raised the consumption tax in 17 years and is an attempt by the Shinzo Abe-led government to rein in public debt by increasing government revenue.
Meanwhile, several of the Bank of Japan’s board members expressed a more cautious view on the economic outlook to reach a sustained 2% price stability target by fiscal 2015, according to minutes of the July policy meeting released. In July, the BoJ decided by a unanimous vote to leave the bank's policy target unchanged as expected, maintaining its overall economic assessment. China’s broadest measure of new credit plunged to the lowest since the global financial crisis and industrial output unexpectedly slowed, adding risks to growth as the government grapples with a property slump. Factory production rose 9% from a year earlier and fixed-asset investment growth weakened. The data spurred speculation that the government will increase stimulus, with Premier Li Keqiang’s growth target of about 7.5% this year at risk.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2222.88 | 1.28 | 0.06 |
Hang Seng | 24890.34 | 200.93 | 0.81 |
Jakarta Composite | 5168.27 | 35.87 | 0.70 |
KLSE Composite | 1858.04 | 7.65 | 0.41 |
Nikkei 225 | 15213.63 | 52.32 | 0.35 |
Straits Times | 3301.41 | -1.98 | -0.06 |
KOSPI Composite | 2062.36 | 20.89 | 1.02 |
Taiwan Weighted | 9231.31 | 68.19 | 0.74 |
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