The Asian markets closed mostly in green on Tuesday, with Shanghai Composite rising to hit a new 3-year high. Activity in China’s factory sector dipped to 11-month low in March as new orders shrank, signaling persistent weakness in the world’s second-largest economy that will likely fuel calls for more policy easing to support growth. The poor reading added to signs that the economy has lost momentum despite two interest rate cuts since November a reduction in the amount of money banks must keep in reserve and repeated attempts by the central bank to reduce financing costs. The flash HSBC/Markit Purchasing Managers’ Index (PMI) dipped to 49.2 in March, below the 50-point level that separates growth in activity from contraction on a monthly basis. The People’s Bank of China (PBOC) lowered its guidance rate for the benchmark seven-day bond repurchase agreement, lowering the rate to 3.55% down from 3.65% the previous week. Bank of Japan Governor Haruhiko Kuroda stated that tapering asset purchases is one option in ending the bank’s massive stimulus programme. But he stressed anew that it was too early to debate the timing, method and means to end quantitative easing (QE).
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,691.41 | 3.68 | 0.10 |
Hang Seng | 24,399.60 | -94.91 | -0.39 |
Jakarta Composite | 5,447.65 | 10.55 | 0.19 |
KLSE Composite | 1,814.04 | 18.19 | 1.01 |
Nikkei 225 | 19,713.45 | -40.91 | -0.21 |
Straits Times | 3,413.26 | 3.13 | 0.09 |
KOSPI Composite | 2,041.37 | 4.78 | 0..23 |
Taiwan Weighted | 9,731.66 | -26.43 | -0.27 |