Asian markets closed in red on Wednesday led by a massive sell-off in Chinese and Hong Kong markets, despite further efforts from Beijing to stave off the relentless fall in Chinese share prices. Authorities in China unveiled a raft of new measures to try and contain the losses on the markets, including allowing increased exposure to equities among insurance companies and extending government buying of stocks beyond blue-chip companies and into smaller and medium-size companies. Hong Kong’s home prices hit a record high in May, supported by strong demand and ample liquidity in one of the world’s most expensive property markets, despite a series of tightening measures. An official index of overall private home prices for May edged up 1.1 percentage points year-on-year to 298.4 points. That’s 20 per cent higher than the year before and a second straight monthly gain.
Bank of Japan's Takahide Kiuchi stated that a slowdown in China’s economic growth may hurt Japan’s economy for the time being. Kiuchi added that policymakers must be more mindful of the demerits of a weak yen, such as rising prices of daily necessities that may hurt private consumption. Kiuchi has been a lone dissenter to maintaining the BOJ’s massive stimulus that was expanded in October last year, arguing that the costs were beginning to exceed the merits. Japan’s Economy Watchers Current Index fell to a seasonally adjusted 51.0, from 53.3 in the preceding month while Japan’s Current Account rose to a seasonally adjusted 1.64T, from 1.27T in the preceding month. Taiwanese CPI rose to a seasonally adjusted annual rate of -0.56%, from -0.73% in the preceding quarter.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite 3,507.19 -219.93 -5.90 Hang Seng 23,516.56 -1,458.75 -5.84 Jakarta Composite 4,871.57 -34.48 -0.70 KLSE Composite 1,695.83 -16.47 -0.96 Nikkei 225 19,737.64 -638.95 -3.14 Straits Times 3,284.99 -55.94 -1.67 KOSPI Composite 2,016.21 -24.08 -1.18 Taiwan Weighted 8,976.11 -274.05 -2.96
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