Asian markets closed mostly in green on Thursday, following a strong lead from Wall Street. China’s Premier Li Keqiang stated that the economy faces relatively large downward pressure, as the global recovery remains unsteady. The Premier added that the world’s second-largest economy needed a new driving force to maintain steady growth. China’s fixed-asset investment grew at its slowest rate in nearly 15 years in May, missing expectations even as growth in retail sales and factory output steadied, arguing for Beijing to increase policy support to avert a deeper downturn. Fixed-asset investment, a crucial driver of the world’s second-largest economy, rose 11.4% in the first five months of this year from the year-earlier period. Chinese Industrial Production rose to 6.1%, from 5.9% in the preceding month while Chinese Retail Sales rose to an annual rate of 10.1%, from 10.0% in the preceding month.
South Korea’s central bank lowered its key interest rate to a historic low, responding to a slump in exports and the prospect that the outbreak of the deadly MERS virus could slow the economy. Bank of Korea policymakers cut the policy rate by a quarter of a percentage point to 1.5%, the second rate cut this year. In March, the bank lowered the key rate and downgraded its growth forecast for Asia’s fourth-largest economy as exports continued to slump. Malaysian Industrial Production fell to a seasonally adjusted annual rate of 4.0%, from 6.9% in the preceding month.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite 5,121.59 15.56 0.30 Hang Seng 26,907.85 220.21 0.83 Jakarta Composite 4,928.81 -4.74 -0.10 KLSE Composite 1,734.76 -0.87 -0.05 Nikkei 225 20,382.97 336.61 1.68 Straits Times 3,347.67 21.90 0.66 KOSPI Composite 2,056.61 5.29 0.26 Taiwan Weighted 9,302.49 3.99 0.04