The Asian equity benchmarks ended mostly in green on Monday, with Chinese stocks trading in Hong Kong rallied the most in two weeks amid speculation the government will take more measures to support economic growth and the slump in oil prices may be excessive. China’s factory output is likely to rise about 8.3% in 2014 from a year earlier. Factory output rose 7.2% in November from a year earlier, down from October’s 7.7%. South Korea cut its bullish growth forecasts for both this year and next but its revised projections were still seen as too optimistic, supporting expectations of an interest rate cut early next year. The Ministry of Strategy and Finance forecasted that economy will grow by 3.4% this year, down from 3.7% projected in July, with private investment and sentiment turning out weaker than the government had expected. It also downgraded its 2015 growth forecast to 3.8% from 4%.
Singapore’s headline inflation rate in November may turn negative for the first time in five years due partly to sliding oil prices, and a few economists see scope for the central bank to ease tight monetary policy to support economic growth. The last time the Monetary Authority of Singapore (MAS) eased monetary policy was October 2011. It has stuck to a framework of allowing a modest and gradual appreciation of the Singapore dollar since April 2010 to curb inflationary pressures.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,127.45 | 18.85 | 0.61 |
Hang Seng | 23,408.57 | 291.94 | 1.26 |
Jakarta Composite | 5,125.77 | -18.85 | -0.37 |
KLSE Composite | 1,744.05 | 28.06 | 1.64 |
Nikkei 225 | 17,635.14 | 13.74 | 0.08 |
Straits Times | 3,330.96 | 51.43 | 1.57 |
KOSPI Composite | 1,943.12 | 13.14 | 0.68 |
Taiwan Weighted | 9,095.00 | 95.48 | 1.06 |