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Asian markets close mostly in red on Friday

30 Oct 2015 Evaluate

The Asian equity markets ended mostly in red on Friday, while reporting their strongest monthly performance in years in October. The Bank of Japan held off on expanding its massive stimulus programme, preferring to preserve its dwindling policy options in the hope that the economy can overcome the drag from China’s slowdown without additional monetary support. But the central bank is likely to remain under pressure to expand its already massive asset-buying programme as slumping energy costs, weak exports, and a fragile recovery in household spending keep inflation well short of its 2 percent target. Core consumer prices fell 0.1 percent in the year to September, a second monthly drop, while household spending slid even as job availability hit a two-decade high. The BOJ maintained its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen ($662 billion) through aggressive asset purchases. South Korean Industrial Production rose to a seasonally adjusted annual rate of 2.4%, from 0.1% in the preceding month whose figure was revised down from 0.3%.

Taiwan’s economy shrank for the first time in six years in the July-September quarter, dragged down by worse-than-expected exports and domestic spending. The drop of 1.01 percent from a year earlier missed forecasts by the Directorate General of Budget, Accounting and Statistics, which had predicted GDP growth of 0.10 percent year-on-year in the third quarter. It has also announced that it would pour Tw$4.08 billion ($125.5 million) into the economy between November and February to boost consumer spending.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

3,382.56

-4.75

-0.14

Hang Seng

22,640.04

-179.90

-0.79

Jakarta Composite

4,455.18

-16.84

-0.38

KLSE Composite

1,665.71

-1.27

-0.08

Nikkei 225

19,083.10

147.39

0.78

Straits Times

2,998.35

-3.16

-0.11

KOSPI Composite

2,029.47

-4.69

-0.23

Taiwan Weighted

8,554.31

-16.77

-0.20

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