The Asian markets closed mostly in red on Wednesday with Chinese markets recovering some ground. Chinese markets will be closed on Thursday and Friday for a holiday to commemorate the end of World War Two. The yuan’s recent depreciation moves it closer towards its real market value, the head of the Asian Development Bank stated, dismissing fears that China may export deflation to its Asian neighbors by flooding goods made cheaper by a weak currency. ADB President Takehiko Nakao added that while China’s economy may no longer expand at a 10-percent pace seen in the past, it will continue to grow steadily as it shifts to a consumption-driven economy with a deeper service sector. Japanese Economics Minister Akira Amari stated that it is too early to say that Japan has completely escaped the risk of returning to deflation. The consumer price index was not the only way to judge whether the economy was out of deflation. Amari added that it was important for the economy to grow both in nominal and real terms and for the gross domestic product deflator to be positive. Japan’s Monetary Base rose to 33.3% compared to 32.8% in the preceding month. Indonesia’s president Joko Widodo promised quick massive deregulation to improve investor sentiment in Southeast Asia’s largest economy. Widodo added that there were 110 regulations already identified as being negative for investors.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,160.17 | -6.46 | -0.20 |
Hang Seng | 20,934.94 | -250.49 | -1.18 |
Jakarta Composite | 4,401.29 | -11.17 | -0.25 |
KLSE Composite | 1,590.19 | -19.02 | -1.18 |
Nikkei 225 | 18,095.40 | -70.29 | -0.39 |
Straits Times | 2,878.13 | -4.64 | -0.16 |
KOSPI Composite | 1,915.22 | 0.99 | 0.05 |
Taiwan Weighted | 8,035.29 | 17.73 | 0.22 |
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