The Asian markets closed mixed on Tuesday, after China’s central bank continued to slowly relax its policy by guiding short-term money market rates lower for the fifth time since the Lunar New Year in February. China’s Ministry of Finance stated that it will auction 15 billion yuan ($2.41 billion) in nine-month government bills on April 20. After the auction, the bonds will be issued from April 20 to 23 and begin secondary market trading on April 27. The World Bank Group projected that China’s economic growth to ease to around 7% percent this year and the next after expanding 7.4% in 2014. The slowdown in China’s economy comes as policy-makers try to address vulnerabilities in the financial system and ensure that growth is more sustainable. It has also slashed its forecast for Indonesia’s economic growth this year as exports are expected to remain weak, while the domestic market is still coping with a high interest rate environment. The Washington-based lender expects Indonesia’s gross domestic product to grow modestly at 5.2% this year - lower than the 5.6% estimate it had projected in October last year.
Singapore’s central bank surprised markets by keeping monetary policy settings unchanged, saying growth was evolving in line with expectations and that cost pressures could eventually pick up due to a tight labor market. The Monetary Authority of Singapore (MAS) stated that the trade-reliant economy was on track to meet the official forecast of 2% to 4% growth in 2015, and kept its forecasts for both headline and core inflation unchanged. Singaporean GDP remained unchanged at a seasonally adjusted 2.1% compared to the preceding quarter. Seasonally adjusted and on an annualized quarterly basis, GDP added 1.1% - slowing from 4.9% in Q4. The manufacturing sector contracted 3.4% on year, following the 1.3% decline in the previous quarter while services producing industries added 3.1% on year in the first quarter.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 4,135.57 | 13.85 | 0.34 |
Hang Seng | 27,561.49 | -454.85 | -1.62 |
Jakarta Composite | 5,419.11 | -28.30 | -0.52 |
KLSE Composite | 1,839.61 | -2.47 | -0.13 |
Nikkei 225 | 19,908.68 | 3.22 | 0.02 |
Straits Times | 3,521.08 | 36.69 | 1.05 |
KOSPI Composite | 2,111.72 | 12.80 | 0.61 |
Taiwan Weighted | 9,642.22 | -24.30 | -0.25 |
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