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Asian markets end mostly in green on Thursday

18 Sep 2014 Evaluate

Asian markets ended mostly in green on Thursday, with Japanese market closing at a six-year high as the yen tumbled after the Federal Reserve raised its estimates for interest rates. Japan’s exports declined in August as shipments to the United States contracted, another sign the economy is struggling to rev up after a deep slump in April-June. Exports fell 1.3 percent in August from a year ago, less than the median estimate for a 2.6 percent annual decline. That followed a 3.9 percent annual gain in the previous month after having fallen in June and May. The patchy performance has dashed hopes that external demand can offset a consumer spending slump caused by an April sales tax hike to 8 percent from 5 percent, heaping pressure on policymakers to do more to spur economic growth. Japan’s trade balance rose to a seasonally adjusted -0.92T, from -1.02T in the preceding month. Hong Kong Unemployment Rate remained unchanged at a seasonally adjusted 3.3%, compared to the preceding month.

The People’s Bank of China lowered the rate on the 14-day repurchase agreement to 3.50% from 3.75%, sending money market rates tumbling. One year interest rate swaps fell to 3.46% after the news from 3.51% while five-year swaps were down at 3.75% from 3.79%. A lower repo rate is aimed at lowering other rates in the market, part of the government’s ongoing attempt to lower corporate financing costs without instituting high profile measures such as a cash reserve cut or interest rate cut.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2315.93

8.03

0.35

Hang Seng

24168.72

-207.69

-0.85

Jakarta Composite

5208.14

19.96

0.38

KLSE Composite

1845.32

1.54

0.08

Nikkei 225

16067.57

178.90

1.13

Straits Times

 3297.29

0.81

0.02

KOSPI Composite

2047.74

-14.87

-0.72

Taiwan Weighted

9237.03

41.86

0.46

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