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Asian markets conclude the trade mostly in red

26 Jul 2013 Evaluate

The Asian markets concluded Friday’s trade mostly in red. Japanese stocks tumbled to snap a five-week winning streak, as exporters skidded on the yen’s strength. Japan’s consumer prices managed to register mild inflation in June compared with a year earlier, data from the Finance Ministry showed. The core consumer price index, which excludes volatile fresh-food costs, rose 0.4% from June 2012, though it was unchanged compared to May’s levels. Meanwhile, July’s core CPI for metropolitan Tokyo -- seen as a leading indicator for the nation as a whole -- also scored a price gain, rising 0.3% on an annual basis, though it too was unchanged from the previous month.

China’s Shanghai Composite shares fell with the key index heading for a three-day losing streak, after the government ordered companies in 19 industries to cut outdated production capacity. The country’s business sentiment dropped for the second consecutive month in July to the lowest level since October due to the recent liquidity squeeze. The monthly MNI China Business Indicator declined to 53.4 in July from 54.9 in June. According to the report, firms’ ability to obtain credit worsened to the lowest since October 2011, while the interest rates they faced rose to a one-year high.

Indonesia’s Jakarta Composite concluded the trade in red. The country’s central bank stated that current account deficit in the second quarter widened to 3.5% of gross domestic product, from 2.4% in the first quarter, due to seasonal factors. But the deficit will narrow to 2.5% in the July-September period. Concerns over Indonesia’s current account deficit, and rising inflation, helped trigger a heavy sell-off in its bonds, stocks and currency recently. The central bank is scheduled to announce Q2 balance of payment data on August 16, a day after it holds its monthly interest rate meeting. Indonesia’s rupiah fell by the most since September 2011 this week as the central bank allows a more rapid slide toward levels quoted in the offshore market.

Singapore’s resale price index for public housing flats, which are built and sold by the government to local resident households, rose slightly by 0.5% in the second quarter after several rounds of cooling measures, the country’s Housing Development Board (HDB) reported. The Q2 index is lower than the 1.3% growth in the previous quarter and the lowest quarterly growth since the first quarter in 2009.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2010.85

-10.32

-0.51

Hang Seng

21968.95

67.99

0.31

Jakarta Composite

4658.87

-15.24

-0.33

KLSE Composite

1807.61

-0.81

-0.04

Nikkei 225

14129.98

-432.95

-2.97

Straits Times

3236.10

0.42

0.01

KOSPI Composite

1910.81

1.20

0.06

Taiwan Weighted

8149.40

-14.18

-0.17

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