Most of the Asian markets barring Shanghai Composite concluded Tuesday’s trade in red after US hardened its stance against Syria, with south-east Asian markets hit particularly hard, while mainland Chinese shares gained after data showing an increase in industrial profits. Japan’s Nikkei share average fell for a second straight day, taking its cues from weak Asian stock markets, with investors generally reluctant to trade actively ahead of potentially market-moving events in the coming weeks. Investors are keeping their eyes on developments over Syria and waiting to get clarity on when the US Federal Reserve will scale back its stimulus measures.
China will be able to meet the economic growth target of 7.5% this year as the economy is stabilizing, helped by supportive policies at home and rising demand abroad, an official with the National Bureau of Statistics stated. Chinese industrial firms’ total profit from January to July was 11.1% higher than the same period a year earlier. The rate of annualized gains was unchanged from the January-June reading but marked a slowing from the January-May year-on-year rise of 12.3%. For July alone, industrial profit rose 11.6%, accelerating from a 6.3% increase in June. Separately, new home purchases ended above the 200,000-square-meter threshold in Shanghai for the second consecutive week, with mid- to low-end properties selling strongly. Sales of new homes, excluding government-subsidized affordable housing, totaled 202,000 square meters last week, a slight dip of 0.5% from the previous seven-day period.
In Indonesia, following criticism that its economic stimulus package lacked information, the national government revealed financial details on its plan to curb oil imports, saying it hopes it will help wipe $3 billion off the current account deficit. The policy aims reduce fuel imports, which stood at $5.8 billion in the first half of the year, according to the Central Statistics Agency (BPS). Hatta Rajasa, the coordinating minister for the economy, stated that the current account deficit which reached $9.8 billion in the second quarter would likely fall in coming months.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2103.57 | 7.09 | 0.34 |
Hang Seng | 21874.77 | -130.55 | -0.59 |
Jakarta Composite | 3967.84 | -152.83 | -3.71 |
KLSE Composite | 1701.24 | -21.25 | -1.23 |
Nikkei 225 | 13542.37 | -93.91 | -0.69 |
Straits Times | 3034.02 | -50.39 | -1.63 |
KOSPI Composite | 1885.84 | -2.02 | -0.11 |
Taiwan Weighted | 7820.84 | -74.13 | -0.94 |
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