Most of the Asian markets barring Jakarta Composite and Taiwan Weighted concluded Wednesday’s trade in red as jitters over a possible US-led military strike against the Syrian government continued knocking Asian equities to a seven-week low and pushed oil prices and safe-haven gold to multi-month highs. An acute risk-off mode also boosted the appeal of the Japanese yen, which held near a one-week high against the dollar and euro after having posted its biggest rally in more than two months. Indonesian shares tumbled to a 14-month trough before concluding the trade in green, while Philippine stocks sank hitting more than eight-month low and Thai equities dropped to near one-year low. Indonesia’s central bank board will meet in a surprise move amid widespread speculation that it will have to raise interest rates again to defend the fast-falling rupiah, now it’s lowest since April 2009.
China will maintain stable macro-economic policies and refrain from any stimulus measures, a senior Chinese official stated, but he urged the United States to study very carefully the timing of an exit from its economic stimulus. Vice Finance Minister Zhu Guangyao stated that China has been sustaining a healthy growth momentum despite all the challenges from external and within, and the country is on track to achieve the growth rate of around 7.5% in line with the government target. Separately, the Census & Statistics Department stated that the value of Hong Kong’s total exports and imports of goods both showed year-on-year increases in July, at 10.6% and 8.3%. The value of total goods exports rose 10.6% year-on-year to $305.4 billion. Within this total, the value of re-exports increased 10.9% to $300.6 billion, while the value of domestic exports fell 6.7% to $4.8 billion.
From a tumbling currency to a crippling current-account shortfall, slowing economic growth, high inflation and retreating investors, Indonesia’s stature as emerging-market superstar is under siege. Standard & Poor’s warned that Indonesia needs to reduce costly fuel subsidies and rein-in the nation’s current account deficit if it hopes to minimize the impact of shrinking growth rates and weakening currencies currently affecting emerging economies. Rupiah forwards gained by the most in more than six weeks and government bonds declined on speculation the central bank will raise interest rates. Bank Indonesia’s board of governors will convene for an extra meeting to evaluate economic, monetary and banking conditions.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2101.30 | -2.27 | -0.11 |
Hang Seng | 21524.65 | -350.12 | -1.60 |
Jakarta Composite | 4026.48 | 58.63 | 1.48 |
KLSE Composite | 1686.17 | -15.07 | -0.89 |
Nikkei 225 | 13338.46 | -203.91 | -1.51 |
Straits Times | 3004.18 | -29.84 | -0.98 |
KOSPI Composite | 1884.52 | -1.32 | -0.07 |
Taiwan Weighted | 7824.54 | 3.70 | 0.05 |
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