Asian markets ended mostly in red on Wednesday, with the benchmark indices poised for its lowest close in four weeks, following a retreat in US equities on concern about the pace of Federal Reserve interest-rate increases. Korean market was closed for the day as Chuseok holidays is extended due to substitute holiday. Bank of Japan Deputy Governor Kikuo Iwata stated that consumer prices are likely to increase further along with wages. The year-on-year rate of increase in the CPI is expected to accelerate moderately, along with increasing wages, against the backdrop of rising inflation expectations as well as improvements in the output gap, given that Japan’s economy is expected to continue growing at a pace above its potential. The majority of the nine-board shared the view that Japan can achieve the 2% price stability target at around fiscal 2015.
Japan’s core machinery orders rose for a second straight month in July, though the data failed to dispel some doubts about the strength of business investment that is needed to propel Japan out of the slump caused by April's sales tax hike. Japan’s Core Machinery Orders fell to 3.5%, from 8.8% in the preceding month. Japan’s Corporate Goods Price Index fell to a seasonally adjusted annual rate of 3.9%, from 4.3% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2318.31 | -8.22 | -0.35 |
Hang Seng | 24705.36 | -485.09 | -1.93 |
Jakarta Composite | 5142.99 | -54.13 | -1.04 |
KLSE Composite | 1870.85 | -3.27 | -0.17 |
Nikkei 225 | 15788.78 | 39.63 | 0.25 |
Straits Times | 3338.63 | -4.33 | -0.13 |
KOSPI Composite | - | - | - |
Taiwan Weighted | 9357.61 | -77.16 | -0.82 |