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Asian markets conclude the trade mostly in red

06 Aug 2013 Evaluate

All the Asian markets barring Shanghai Composite and Nikkei 225 concluded Tuesday’s trade in red. China’s Shanghai rose for a fifth straight day as concern over economic slowdown dwindled after data which was released over the weekend pointed to a recovering service sector in July. China’s households were less confident about the country’s economy due to slower growth in both business activity and people’s income, a survey showed. The component indices showed that people’s confidence in the economy lost 12 points to 118, and willingness to invest retreated 4 points to 110. Besides, new home transactions fell below 200,000 square meters again in Shanghai last week while robust sales registered in the mid-to-low end segment dragged the city’s seven-day average price to a 10-week low. The purchases of new residential properties, excluding government-funded affordable housing, withdrew 12.7% from a week earlier to 191,200 square meters. Average cost of a new home, meanwhile, shed 2.3% week on week to 23,355 yuan ($3,810) per square meter.

Japan’s Nikkei concluded the trade in green. The International Monetary Fund (IMF) stated that Japan’s economy is recovering from years of stagnation, but that far-reaching reforms and a credible plan are needed to reduce its debt mountain and sustain growth in the long run. It forecasts that Japan’s economy will grow 2% in 2013, helped by stronger demand at home and overseas, but will expand only 1.2% in 2014 as consumers tighten their belts following an expected increase in sales tax.

The central bank stated that Indonesia can expect a substantial narrowing of the current account deficit in the third quarter, despite the figure widening to an all-time record of $9 billion this month. Bank Indonesia stated the current account deficit for the April-to-June period was at 3.6% of the country’s gross domestic product, up from the 2.4% of GDP - $5.3 billion - deficit registered in the first quarter. Additionally, the weak rupiah might be a boon to exporters keen to get their products to foreign markets cheaply, but for some local firms it is eroding profit margins and leaving them with foreign exchange losses. Indonesia's Jakarta Composite is closed for a week till August 9 on account of Public Holiday ‘Id-ul-Fitr’.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2060.50

10.02

0.49

Hang Seng

21923.70

-298.31

-1.34

Jakarta Composite

-

-

-

KLSE Composite

1784.64

-0.50

-0.03

Nikkei 225

14401.06

143.02

1.00

Straits Times

3224.89

-16.90

-0.52

KOSPI Composite

1906.62

-9.60

-0.50

Taiwan Weighted

8038.91

-99.72

-1.23

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