The Asian equity markets ended in green on Wednesday, as investors shrug off cut in growth outlook by IMF. China Stock exchange was closed on account of ‘National Day’ holiday. The Bank of Japan held off on expanding stimulus, even as slumping exports and falling oil prices threaten its rosy projection that the economy is on track to hit the bank’s ambitious 2 percent inflation target next year. But lingering fears of recession will keep the central bank under pressure to ease at a more crucial meeting on October 30, when it is expected to cut its long-term economic and price forecasts. BOJ Governor Haruhiko Kuroda remained bullish that the bank’s massive money-printing will eventually lift the world’s third-biggest economy decisively out of nearly two decades of deflation. The BOJ maintained its optimistic view that while exports and output has been hurt by slowing emerging market growth, Japan’s economy continues to recover moderately. Singapore’s central bank would announce its semi-annual monetary policy decision on October 14. The Monetary Authority of Singapore (MAS) will probably ease monetary policy due to the rising risk of a recession and downside risks to the inflation outlook.
China’s foreign exchange reserves shrank by $43.3 billion in September as the central bank stepped up intervention to stabilize the yuan and calm sentiment after a surprise devaluation of its currency had jolted global markets. China’s reserves, the world’s largest, dropped to $3.514 trillion last month, after a record slide of $93.9 billion in August. The devaluation of the yuan on August 11, and the consequent fall in reserves have raised questions about how sustainable China’s efforts to support the yuan are, as capital trickles out of the country due to fears of a deepening economic slowdown and prospects of rising US interest rates.
Asian Indices Last Trade Change in Points Change in % Shanghai Composite - - - Hang Seng 22,515.76 684.14 3.13 Jakarta Composite 4,487.13 41.35 0.93 KLSE Composite 1,689.25 26.74 1.61 Nikkei 225 18,322.98 136.88 0.75 Straits Times 2,961.81 64.40 2.22 KOSPI Composite 2,005.84 15.19 0.76 Taiwan Weighted 8,495.23 101.13 1.20
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