Asian markets concluded Wednesday’s trade mostly in green on reports that foreign investment in China jumped by 20%. Concerns, however, remained over an early exit of US quantitative easing ahead of Bernanke’s testimony to the US Congress. China’s Shanghai Composite Index concluded the trade in red led by selling of property stocks. The growth of foreign direct investment (FDI) in China accelerated surprisingly in June, a rare piece of good news when the world’s second-largest economy reported a slew of disappointing data. The Ministry of Commerce stated that foreign investors channeled altogether $14.4 billion into China last month, up 20.1% from a year earlier. The pace quickened sharply from the increase of 0.29% in May, and extended the growth streak to a fifth month in a row. The country attracted a total of $61.9 billion foreign investment in the January-June period, up 4.9% on an annual basis. The Commerce Ministry spokesman added that the growth of China’s domestic consumption is expected to maintain momentum in the second half of the year.
Jakarta Composite ended in green; tight competition among lenders and rising risks on non-performing loans has caused Indonesia’s lenders to see a slowing profit growth, while having to cope with rising costs due to inflation. Bank Indonesia reported that the total combined net income of the country’s commercial banks slowed in the first five months of this year. It had kept the benchmark policy rate at a record low 5.75 percent since February last year before raising it for a total of 75 basis points in the past two months, in a bid to contain inflation after subsidized fuel prices increased by an average 33% last month.
South Korean market concluded in green as upbeat economic data from China eased market concerns caused by the scheduled congressional testimony by Federal Reserve Chairman Ben Bernanke. Singapore’s exports in June extended the longest run of declines since the global financial crisis, suggesting the island’s economic growth last quarter may be lower than the government initially estimated. Non-oil domestic exports slid 8.8% from a year earlier, falling for a fifth month, the trade promotion agency reported.
The Philippine government's outstanding debt as of end-May went up by 4.2% year on year on back of sharp rise in local loans. The Bureau of Treasury reported that national government’s debt as of May hit 5.36 trillion pesos ($123.73 billion), 64.5% of which was sourced from domestic creditors. The rest was owed to foreign creditors.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2044.92 | -20.80 | -1.01 |
Hang Seng | 21371.87 | 59.49 | 0.28 |
Jakarta Composite | 4679.00 | 34.96 | 0.75 |
KLSE Composite | 1788.66 | 2.27 | 0.13 |
Nikkei 225 | 14615.04 | 15.92 | 0.11 |
Straits Times | 3208.33 | -16.63 | -0.52 |
KOSPI Composite | 1887.49 | 21.13 | 1.13 |
Taiwan Weighted | 8258.95 | -1.16 | -0.01 |
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