The Asian markets ended mixed on Friday, as investors awaited more US data later in the session for clues on the timing of the US Federal Reserve’s interest rate hike. Chinese Premier Li Keqiang stated that there was improvement in the economy but that more forceful measures are needed to boost growth. Li warned that investment activity is moderating and that the trade sector is under big pressure owing to weak global conditions. The Bank of Korea held interest rates steady at a record low for a second consecutive month, while upbeat remarks by Governor Lee Ju-yeol pared the chances of another rate cut soon. Asia’s fourth-largest economy was recovering steadily at the pace seen in April, but sentiment among economic players clearly showed improving signs. The Bank of Korea’s monetary policy committee kept the base rate at 1.75% in a 6-1 vote.
Bank of Japan Governor Haruhiko Kuroda repeated that there is no need to expand the already massive monetary easing at this point as expectations of higher prices are evident. Kuroda added that the bank will take necessary action without hesitation if it detects a shift in the underlying price trend that could undermine the path toward anchoring 2% inflation at the earliest possible time. Kuroda enlightened that the mechanism of his two-year-old aggressive monetary easing is working in the bigger picture despite an unexpected slump in energy prices and a slow recovery in consumption. Japanese consumer confidence in April worsened for the first time in five months. The survey’s sentiment index for general households, which includes views on incomes and jobs, was at 41.5 in April, down from 41.7 in March. Japan’s M2 Money Stock remained unchanged at a seasonally adjusted 3.6% compared to the preceding month.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite 4,308.69 -69.62 -1.59 Hang Seng 27,822.28 535.73 1.96 Jakarta Composite 5,227.10 -19.04 -0.36 KLSE Composite 1,811.92 4.37 0.24 Nikkei 225 19,732.92 162.68 0.83 Straits Times 3,463.10 7.32 0.21 KOSPI Composite 2,106.50 -13.83 -0.65 Taiwan Weighted 9,579.48 -31.35 -0.33
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