Most of the Asian markets barring Shanghai Composite concluded Thursday’s trade in green on signs that US-led military strike on Syria may be delayed. The earlier selloff across Asia in August has taken its heaviest toll on stocks in Indonesia and the Philippines, leaving them heading for their worst monthly slump since the height of the 2008 global financial crisis. The benchmark indexes in Indonesia and the Philippines - down 12.3% and 11.1%, respectively, in August, with just one more trading day left - are set for the biggest drop since October 2008. Thailand has also been battered, down 9.9% this month, though it suffered more during September 2011, when the country was ravished by heavy flooding.
Japan’s July retail sales fell 0.3% from a year earlier, marking their first annualized drop since April, the Ministry of Economy, Trade and Industry stated. The decline marked a swing from June’s sharp 1.6% rise and trailed expectations for a 0.6% increase as reported. Large-scale retailers suffered a larger drop, falling 1.6% on a comparable-store basis after rising 3.5% in June. The declining sales came as the yen strengthened during July, with the dollar starting the month above 99 yen and ending it below 98 yen. Separately, the International Monetary Fund stated that China’s focus on investment and export-led growth to power the economy may have led to rising inequality adding that the country should shift to a more inclusive growth to rebalance the economy and make it more sustainable. According to the government report the country will work to ensure quality and steady economic growth in the second half of 2013 by boosting demand, industrial upgrading and reforms.
Bank Indonesia raised its key interest rate for the third time in almost four months in a bid to curb depreciation in the rupiah, which is at its lowest in four years. The central bank held a special meeting in Jakarta and it increased the BI policy rate to 7% from 6.50%. Bank Indonesia had kept the rate unchanged on August 15, after raising it by a total of 75 basis points from a record low 5.75 in a move to curb accelerating inflation. The government had raised subsidized fuel prices in June by an average 33% to narrow the state’s budget deficit.
Philippines reported economic growth in the second quarter matching expectations and easing fears that the country is slowing down. Gross domestic product rose 7.5% in the three months through June from a year earlier, compared with a 7.7% gain in the previous quarter, the National Statistical Coordination Board stated. Philippine expansion matched China’s for a second quarter as the Southeast Asian nation withstands a regional slowdown that has prompted policy makers in Thailand, Malaysia and Indonesia to cut growth estimates.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2097.23 | -4.07 | -0.19 |
Hang Seng | 21704.78 | 180.13 | 0.84 |
Jakarta Composite | 4103.59 | 77.12 | 1.92 |
KLSE Composite | 1703.78 | 17.61 | 1.04 |
Nikkei 225 | 13459.71 | 121.25 | 0.91 |
Straits Times | 3038.03 | 33.85 | 1.13 |
KOSPI Composite | 1907.54 | 23.02 | 1.22 |
Taiwan Weighted | 7917.66 | 93.12 | 1.19 |
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