The Asian markets closed in green on Thursday, after China reassured markets that it would not allow the yuan to plummet in the wake of surprise devaluation this week. China’s exports are expected to grow this year while the pace of decline in imports will ease in the latter part of the year. China will study new measures to support the trade sector as the sector still faces increasing downward pressure. South Korea’s finance ministry stated that Chinese economic trends and exports and their influence to South Korea are more important to the local economy than short-term movements of the yuan. The finance ministry’s comment was follow up on China’s decision to devalue the Chinese currency this week. Hong Kong’s economy is expected to have expanded slightly in the second quarter helped by consumption, but the outlook in coming months will be dampened by a slowdown in China, a drop in mainland tourists to the city and weak retail sales. Prospects for the Asian financial centre could be further compounded if surprise Chinese yuan devaluation this week puts a deeper dent in tourists’ spending power. Economic growth for the April to June quarter is forecast to have expanded 2.1%. Malaysian GDP fell to a seasonally adjusted 4.9%, from 5.6% in the preceding month. Japan’s Core Machinery Orders fell and stood at -7.9%, from 0.6% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,954.56 | 68.24 | 1.76 |
Hang Seng | 24,018.80 | 102.78 | 0.43 |
Jakarta Composite | 4,584.25 | 104.76 | 2.34 |
KLSE Composite | 1,621.62 | 11.69 | 0.73 |
Nikkei 225 | 20,595.55 | 202.78 | 0.99 |
Straits Times | 3,091.78 | 30.29 | 0.99 |
KOSPI Composite | 1,983.46 | 7.99 | 0.40 |
Taiwan Weighted | 8,311.74 | 28.36 | 0.34 |