The Asian markets ended mostly in red on Tuesday, with a rebound in Chinese inflation in February was trumped by data showing prices at factory gates had plunged, raising fears about deflation in the mainland economy. South Korea’s central bank is likely to keep interest rates unchanged on Thursday but cut them next month when it revises its forecasts to reflect a more tepid economic recovery than initially expected. In its last forecast made in January, the Bank of Korea cut this year’s growth projection from 3.9% to 3.4%, while adding quarterly growth would remain around 1% throughout 2015. The pace of Chinese inflation unexpectedly picked up in February, but producer prices continued to slide, underscoring the intense pressure on profit margins at Chinese companies and adding urgency to policymakers’ efforts to find new ways to support growth. The producer price index (PPI) declined 4.8 percent in February - the most negative reading posted since Oct 2009 - extending a long-running factory deflation cycle that began in 2012 to nearly three years. Chinese CPI rose to an annual rate of 1.4%, from 0.8% in the preceding month. Japan’s M2 Money Stock rose to a seasonally adjusted 3.5%, from 3.4% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,286.07 | -16.34 | -0.49 |
Hang Seng | 23,896.98 | -226.07 | -0.94 |
Jakarta Composite | 5,462.93 | 18.29 | 0.34 |
KLSE Composite | 1,789.73 | -2.01 | -0.11 |
Nikkei 225 | 18,665.11 | -125.44 | -0.67 |
Straits Times | 3,398.26 | -6.31 | -0.19 |
KOSPI Composite | 1,984.77 | -8.05 | -0.40 |
Taiwan Weighted | 9,536.53 | -26.45 | -0.28 |
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