Asian markets closed mostly in red on Thursday, brushing off a positive lead from Wall Street. Bank of Japan’s new board member Yutaka Harada stated that the recent declines in the yen mean the currency is in a pretty good place. He added that overall, the benefits of a weak yen outweigh the demerits because this increases corporate earnings, exports and helps create jobs. Indonesia’s central bank stated that it stood ready to intervene in the foreign exchange and bond markets to ensure stability, as the rupiah neared a 17-year low against the dollar. Global risk from a possible US interest rate hike combined with Indonesia’s slowing economic growth and high inflation have put pressure on the rupiah. The South Korean economy remains weak overall as a slump in exports weighs down on its growth. The Korea Development Institute stated that private consumption has improved at a moderate pace, but a drop in outbound shipments and predictions of a weaker global economy are hindering growth. South Korean GDP rose to a seasonally adjusted 0.8%. The economy expanded due to increased investment in construction. On a year-on-year basis, South Korea’s economy grew 2.5% in Q1, lower than the 2.7% expansion posted in Q1 2014.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 4,947.10 | 37.12 | 0.76 |
Hang Seng | 27,551.89 | -105.58 | -0.38 |
Jakarta Composite | 5,095.82 | -34.68 | -0.68 |
KLSE Composite | 1,741.48 | -7.69 | -0.44 |
Nikkei 225 | 20,488.19 | 14.68 | 0.07 |
Straits Times | 3,345.00 | -4.84 | -0.14 |
KOSPI Composite | 2,072.86 | 9.70 | 0.47 |
Taiwan Weighted | 9,348.63 | -207.89 | -2.18 |
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