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Asian markets end mostly in red on Thursday

14 Dec 2017 Evaluate

Asian equity markets ended mostly in red on Thursday, with investors digesting a slew of economic reports from the region and reacting to a rate hike in the US. Although most of the markets in the region started off on a slightly positive note, many of these gave up early gains. On Wednesday, the US Federal Reserve had hiked the benchmark interest rate by 0.25%, from 1.25% and maintained the earlier forecast for just three 1/4- point rate hike in 2018. The Federal Open Market Committee raised the GDP estimate from 2.5% for 2018 from an earlier projection of 2.1%, although it projected growth to be 2.1% in 2019 and 2% in the subsequent year. However, inflation is projected to remain shy of the Fed's 2% goal for another year. Amid concerns about inflation, the policymakers said there is no reason to accelerate the expected pace of rate increases. Chinese shares ended lower, after the country’s central bank nudged up money market rate following the widely expected US rate hike, and as mixed data reinforced signs of a modest slowdown in the Asian economic powerhouse. China’s central bank lifted money market rates as authorities sought to defuse financial risks without imperilling the economy. Further, Japanese shares ended lower, as banks and insurer shares weakened in line with lower interest rates while telecommunications shares withered on news that online retailer Rakuten plans to enter the mobile carrier market.

Asian Indices

Last Trade            

Change in Points

Change in %  

Shanghai Composite

3,292.44

-10.60

-0.32

Hang Seng

29,166.38

-55.72

-0.19

Jakarta Composite

6,113.65

59.05

0.98

KLSE Composite

1,759.00

21.34

1.23

Nikkei 225

22,694.45

-63.62

-0.28

Straits Times

3,435.78

-32.99

-0.95

KOSPI Composite

2,469.48

-11.07

-0.45

Taiwan Weighted

10,538.01

67.31

0.64

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