The Asian markets, barring Taiwan Weighted, closed in red on Thursday with Shanghai Composite plunging as worries persisted over the weak economy and currency. Chinese companies that have been active raising cheap funds in global capital markets are facing increasing pressure as the yuan has come off its track of steady appreciation and is expected to fall further in coming months. The mismatch between their foreign currency liabilities and yuan-denominated revenues means interest expenses and principal payments of these loans and bonds will increase in yuan terms when the Chinese currency depreciates. China’s central bank has made $17 billion available to more than a dozen financial institutions to help boost the economy, a day after injecting nearly $100 billion into two government policy banks. Indonesia’s foreign debt grew at a slower pace in the second quarter of 2015, with the private sector reluctant to take on more debt amid rising risks stemming from sluggish economic growth and a weak currency. The country’s total foreign debt rose by 6.3% to $304.3 billion in the April-to-June period, compared to the same period a year ago. The growth was slower than the 7.9% pace the previous quarter. Japan’s All Industries Activity Index rose to a seasonally adjusted 0.3%, from -0.5% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,664.29 | -129.82 | -3.42 |
Hang Seng | 22,757.47 | -410.38 | -1.77 |
Jakarta Composite | 4,441.91 | -42.33 | -0.94 |
KLSE Composite | 1,577.41 | -5.03 | -0.32 |
Nikkei 225 | 20,033.52 | -189.11 | -0.94 |
Straits Times | 3,009.78 | -31.47 | -1.03 |
KOSPI Composite | 1,914.55 | -24.83 | -1.28 |
Taiwan Weighted | 8,029.81 | 7.97 | 0.10 |
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