The Asian markets closed mostly in red on Tuesday, with Chinese exchange making the biggest drop since January 19, and the seventh biggest fall over five years, amid reports that domestic stockbrokers are pulling back from lending clients money to buy shares, as regulators become increasingly concerned about the fierce nature of a recent stock-market rally. Japanese stock exchange was closed today on account of ‘Greenery Day’ holiday while South Korea exchange was closed on account of ‘Children’s Day’ holiday. The fierce rally on the Shanghai Composite is worrying domestic regulators, in part, because many investors’ gains have been achieved with leverage. The China Securities Regulatory Commission has issued several warnings about stock market risks. There were additional fears that liquidity will be sucked from the market by a spate of IPOs and the weakness spilled over into Hong Kong. Hong Kong Retail Sales fell to a seasonally adjusted annual rate of -2.9%, from 14.9% in the preceding month. Philippines CPI rose to a seasonally adjusted annual rate of 0.2%, from -0.1% in the preceding quarter while Taiwanese CPI fell to a seasonally adjusted annual rate of -0.13%, from 0.55% in the preceding quarter.
Indonesia’s economy grew at the slowest pace in more than five years in the first quarter, feeling the effects from weak exports and lower crude oil prices. Gross domestic product rose 4.71% in the January-March period from the same quarter in 2014. Growth slowed from 5.01% in the fourth quarter of last year and was the weakest since the 4.12% pace in the third quarter of 2009. On a quarter-on-quarter basis GDP rose 0.18%. Finance Minister Bambang Brodjonegoro stated that the country is introducing a tax amnesty this month to boost revenues as slowing economic growth puts pressure on the government to increase spending. The amnesty will last until the end of the year and allows citizens to avoid penalties if they pay five years of unpaid taxes.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 4,298.71 | -181.76 | -4.06 |
Hang Seng | 27,755.54 | -368.28 | -1.31 |
Jakarta Composite | 5,160.31 | 19.17 | 0.37 |
KLSE Composite | 1,827.42 | 9.15 | 0.50 |
Nikkei 225 | - | - | - |
Straits Times | 3,471.19 | -11.51 | -0.33 |
KOSPI Composite | - | - | - |
Taiwan Weighted | 9,820.13 | -24.91 | -0.25 |
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