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Asian markets close mostly in green on Wednesday

20 May 2015 Evaluate

The Asian markets closed mostly in green on Wednesday, with Nikkei stocks closing at a fresh 15-year high on a weaker yen and solid Japanese growth data. Japan’s economy expanded at its fastest pace in a year in January-March as business investment rose slightly, but goods piling up in factory warehouses posed a potential challenge to policy makers seeking to vanquish years of deflation. Private consumption, housing investment and exports all rose but at a feeble pace, leaving Tokyo with more work to do two years after a radical monetary stimulus program has brought only scant success. The world’s third-largest economy expanded at an annualized rate of 2.4% in the first three months of this year, beating a median market forecast for a 1.5% increase and a revised 1.1% expansion in October-December. The data will be closely scrutinized at the BOJ’s two-day rate review that ends on Friday. The central bank is widely expected to maintain its massive stimulus program and rosy assessment of the economy.

Indonesia’s central bank held its key interest rate steady for the third consecutive month despite slowing growth in Southeast Asia’s biggest economy. Bank Indonesia’s board of governors kept the rate at 7.50%. An influential South Korean government think tank stated that economic growth this year would slow to the 2% range unless some structural and monetary changes, including more interest rate cuts, are made. The Korea Development Institute (KDI) stated that growth above 3% could only be achieved if the central bank lowers interest rates once or twice more and the government’s structural reforms succeed.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

4,446.29

28.74

0.65

Hang Seng

27,585.05

-108.49

-0.39

Jakarta Composite

5,292.75

23.38

0.44

KLSE Composite

1,810.11

0.39

0.02

Nikkei 225

20,196.56

170.18

0.85

Straits Times

3,439.68

-14.36

-0.42

KOSPI Composite

2,139.54

18.69

0.88

Taiwan Weighted

9,685.31

-31.46

-0.32

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