The Asian markets closed in red on Monday, with China’s Shanghai Composite index posting its biggest one-day percentage loss since 2007, as fears surrounding the health of China's economy multiplied. Japanese Prime Minister Shinzo Abe stated that it was acceptable for the Bank of Japan to miss its self-imposed deadline to meet its inflation target, suggesting that the government was in no mood now to pressure the central bank to expand monetary stimulus. Consumer inflation has ground to a halt mainly due to the effect of slumping oil prices, keeping the BOJ under pressure to do more to meet its pledge - made in April 2013 - to accelerate inflation to 2% in roughly two years. Abe expressed confidence that Japan’s economy remained on a solid recovery path adding that with oil prices continuing to fall, the BOJ missing the two-year deadline could not be helped. Singapore’s core inflation edged higher in July, but growing uncertainty about the outlook for growth and prices was seen likely to keep open the possibility of further monetary easing. The core inflation gauge rose 0.4% in July from a year earlier, higher than the median forecast of a steady 0.2% year-on-year forecast in a survey. Taiwanese Industrial Production fell to a seasonally adjusted annual rate of -2.99%, from -1.35% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,209.91 | -297.84 | -8.49 |
Hang Seng | 21,251.57 | -1158.05 | -5.17 |
Jakarta Composite | 4,163.73 | -172.22 | -3.97 |
KLSE Composite | 1,532.14 | -42.53 | -2.70 |
Nikkei 225 | 18,540.68 | -895.15 | -4.61 |
Straits Times | 2,843.39 | -127.62 | -4.30 |
KOSPI Composite | 1,829.81 | -46.26 | -2.47 |
Taiwan Weighted | 7,410.34 | -376.58 | -4.84 |
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