Asian equity markets ended mostly higher on Monday, as reduced bets on US interest-rate increase, steadier oil prices, a weaker yen and the latest European stress tests painted a broadly positive picture of the region's 51 largest banks, helping investors shrug off mixed data out of China. A Commerce Department report showed on Friday that US GDP climbed by 1.2 percent in the second quarter following a downwardly revised 0.8 percent increase in the first quarter. Economists had expected GDP to jump by 2.6 percent. Traders pared bets the Federal Reserve will increase interest rates this year despite Federal Reserve Bank of San Francisco President John Williams and Federal Reserve Bank of New York President William Dudley playing down the low reading on second-quarter US growth. This Friday's US jobs report will be more important to the Fed and markets to determine whether there will be at least one rate hike in 2016. Meanwhile, Japanese shares erased earlier losses to close a tad higher as the yen's rally paused, and on financials gains after the Bank of Japan refrained on Friday from charging more interest to institutions for parking their excess reserves at the central bank. Chinese shares bucked the trend and sold off, as a slew of reports painted a mixed picture of the world's second-largest economy. China’s official manufacturing purchasing managers index unexpectedly fell into contraction at 49.9 for July as against 50.0 in June. While, the Caixin manufacturing PMI rose for the first time in 17 months with a score of 50.6 in July, well above a reading of 48.7 expected and up from 48.6 the previous month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2,953.39 | -25.95 | -0.87 |
Hang Seng | 22,129.14 | 237.77 | 1.09 |
Jakarta Composite | 5,361.58 | 145.58 | 2.79 |
KLSE Composite | 1,665.23 | 11.97 | 0.72 |
Nikkei 225 | 16,635.77 | 66.50 | 0.40 |
Straits Times | 2,892.52 | 23.83 | 0.83 |
KOSPI Composite | 2,029.61 | 13.42 | 0.67 |
Taiwan Weighted | 9,080.71 | 96.30 | 1.07 |
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