The Asian markets closed mostly in red on Wednesday, after a sell-off on Wall Street, but Shanghai extended its winning streak to seven successive sessions. The International Monetary Fund (IMF) stated that China should step up fiscal support for its economy if growth dips below 6.5 percent this year, or prepare to take steps to rein in credit and investment if growth surprises on the upper side. The IMF expects China’s annual economic growth to be 6.8 percent this year, before slowing further to 6.25 percent in 2016. Seeking to become more competitive, Indonesia wants to bring annual inflation lower, nearer to the rates managed by its Southeast Asian neighbors. Bank Indonesia Governor Agus Martowardojo stated that the central bank aims to bring down the inflation rate to between 2.5-4.5 percent in 2018, from a target of 3-5 percent this year.
The Bank of Japan stated in minutes of its April board meeting released that inflation in Japan won’t hit a sustained 2% pace this year and any pickup in prices could take considerable time. A key going forward will be how firms move to raise prices and wages, but for now there is no need for further easing. At the April 30 meeting, the BoJ held pat on monetary policy with member Takahide Kiuchi once again dissenting and calling for the stimulus of government bond buying to be cut to 45 trillion yen annually from 80 trillion yen annually now. Singaporean GDP rose to a seasonally adjusted 2.6%, from 2.1% in the preceding quarter.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite 4,941.71 30.82 0.63 Hang Seng 28,081.21 -168.65 -0.60 Jakarta Composite 5,253.39 -67.51 -1.27 KLSE Composite 1,755.05 -9.02 -0.51 Nikkei 225 20,472.58 35.10 0.17 Straits Times 3,424.94 -35.04 -1.01 KOSPI Composite 2,107.50 -36.00 -1.68 Taiwan Weighted 9,693.54 24.13 0.25
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