Asian markets closed mostly in red on Tuesday, on heightened fears about the financial stability of the world’s second biggest economy. The wild volatility in China’s markets has stoked fears among global investors about the broader health of the Chinese economy, and sent Asian investors scurrying for safe-haven assets such as government bonds and the Japanese yen. China’s top economic planning agency stated that the economy still faces downward pressure and growth momentum is insufficient. For the first six months, China reported a growth rate of 7 percent, in line with Beijing’s full-year target. But a stock market plunge since June has fueled concerns about the health of the economy. China’s central bank stated that stable financial markets are expected to continue supporting steady gains in the real economy. Standard & Poor’s Ratings kept Malaysia’s long-term foreign currency sovereign credit rating at ‘A-‘, with a stable outlook, saying allegations of graft involving debt-laden state fund 1Malaysia Development Berhad (1MDB) will not impede policymaking. The agency also added that it does not see the decline in energy prices affecting Malaysia’s long-term fiscal consolidation. Japan’s Corporate Services Price Index (CSPI) fell to a seasonally adjusted annual rate of 0.4%, from 0.6% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,663.00 | -62.56 | -1.68 |
Hang Seng | 24,503.94 | 151.98 | 0.62 |
Jakarta Composite | 4,714.76 | -56.53 | -1.18 |
KLSE Composite | 1,699.70 | -10.06 | -0.59 |
Nikkei 225 | 20,328.89 | -21.21 | -0.10 |
Straits Times | 3,281.09 | -32.33 | -0.98 |
KOSPI Composite | 2,039.10 | 0.29 | 0.01 |
Taiwan Weighted | 8,582.49 | 25.81 | 0.30 |