The Asian markets closed mixed on Friday, while Shanghai’s benchmark edged up as investors turned bullish after concerns about the yuan’s depreciation eased. Japan now faces a critical stage in its battle to defeat deflation, and is being helped by falling oil prices boosting Japan’s terms of trade and getting the economy nearer its full potential. The Cabinet Office in its annual economic report stated that Japan was making steady progress towards ending deflation, noting that the Bank of Japan’s massive asset purchases had lifted inflation expectations, an important step to creating price stability. Core consumer inflation has ground to a halt and may fall slightly until around end-September due largely to last year’s oil price collapse, keeping the Bank of Japan under pressure to ease again to achieve its ambitious 2 percent price growth goal. The Cabinet Office echoed the BOJ’s view that cheaper oil prices were positive for the economy, stimulating economic activity. Japan’s annual export growth was expected to slow in July from June’s big gain, suggesting overseas demand may not be enough to help the economy rebound from last quarter’s expected contraction. China’s central bank stated that the gold reserves rose to 53.93 million fine troy ounces by the end of July, up from 53.32 million at end-June. The adjustment in June was the first in more than six years. Malaysian GDP fell to a seasonally adjusted 4.9% compared to 5.6% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,965.34 | 10.78 | 0.27 |
Hang Seng | 23,991.03 | -27.77 | -0.12 |
Jakarta Composite | 4,585.39 | 1.14 | 0.02 |
KLSE Composite | 1,596.82 | -24.80 | -1.53 |
Nikkei 225 | 20,519.45 | -76.10 | -0.37 |
Straits Times | 3,114.25 | 22.47 | 0.73 |
KOSPI Composite | 1,983.46 | 7.99 | 0.40 |
Taiwan Weighted | 8,305.64 | -6.10 | -0.07 |
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