Asian markets, barring Shanghai Composite, closed in green on Wednesday. An economic adviser to Japan’s Prime Minister stated that he saw no need for the Bank of Japan to deploy additional stimulus to meet its 2% inflation goal next year, warning that it could cause the yen to weaken and prices to overshoot. Etsuro Honda, special adviser to the Cabinet and a leading architect of Prime Minister Shinzo Abe’s reflationary economic policy, added that the next step for the central bank could be to taper its massive asset purchases. Activity in China’s services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business, a welcome development at a time factories in the world’s second largest economy are struggling. The services Purchasing Managers’ Index (PMI) compiled by Caixin/Markit rose to 53.8 from June’s 51.8. The July level is the highest since August 2014 and marks a 12th straight month of expansion. A sub-index measuring new business jumped to 54.0 from June’s 52.2 while the employment sub-index also edged up, indicating increased hiring on stronger new businesses. Indonesian GDP fell to a seasonally adjusted annual rate of 4.67%, from 4.71% in the preceding month. Malaysian Trade Balance rose to 7.98B, from 5.50B in the preceding month. Taiwanese CPI rose to a seasonally adjusted annual rate of 0.66%, from -0.56% in the preceding quarter.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,694.57 | -61.97 | -1.65 |
Hang Seng | 24,514.16 | 108.04 | 0.44 |
Jakarta Composite | 4,850.53 | 69.44 | 1.45 |
KLSE Composite | 1,725.56 | 1.83 | 0.11 |
Nikkei 225 | 20,614.06 | 93.70 | 0.46 |
Straits Times | 3,191.39 | 0.35 | 0.01 |
KOSPI Composite | 2,029.76 | 1.77 | 0.09 |
Taiwan Weighted | 8,542.27 | 31.41 | 0.37 |
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