The Asian equity benchmarks ended mostly in green on Thursday, with Japanese stocks rising for the first time in three days, as yen retreated from its strongest level this year. The Bank of Japan maintained its upbeat economic assessment for eight of Japan’s nine regions in a quarterly report, signaling that the country is on track to emerge from recession without additional monetary easing. It cut its assessment for one region, the northernmost prefecture of Hokkaido, where factory output took a hit from declines in public works spending. Japan’s economy slipped into recession in the third quarter of last year as a sales tax hike in April cooled household spending. BoJ governor Haruhiko Kuroda stuck to his optimistic outlook, stating that the world’s third-largest economy is recovering moderately as a trend. Japan’s Core Machinery Orders rose to 1.3%, from -6.4% in the preceding month. Japan’s Corporate Goods Price Index fell to a seasonally adjusted annual rate of 1.9%, from 2.7% in the preceding month. South Korea’s central bank cut its forecast for economic growth this year to 3.4% from 3.9% predicted in October. Bank of Korea Governor Lee Ju-yeol noted that the fourth quarter of last year was unexpectedly weak.
Cautious Chinese banks issued far less credit in December than expected despite a surprise rate cut by the central bank, driving cash-starved companies into the shadow banking system in a major blow to the government’s financial reform efforts. The weaker-than-expected loan data indicates Beijing’s traditional reliance on credit to spark the economy is losing its effectiveness, posing a further challenge to policymakers as they look for ways to avert a sharper slowdown in 2015. Singaporean Retail Sales fell to a seasonally adjusted 6.5%, from 7.9% in the preceding month whose figure was revised down from 8.1%.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,336.46 | 114.02 | 3.54 |
Hang Seng | 24,350.91 | 238.31 | 0.99 |
Jakarta Composite | 5,188.71 | 29.04 | 0.56 |
KLSE Composite | 1,745.00 | 2.99 | 0.17 |
Nikkei 225 | 17,108.70 | 312.74 | 1.86 |
Straits Times | 3,338.84 | 12.68 | 0.38 |
KOSPI Composite | 1,914.14 | 0.48 | 0.03 |
Taiwan Weighted | 9,165.09 | -15.14 | -0.16 |
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