Most of the Asian markets barring Nikkei 225 and Straits Times concluded Friday’s trade in green on signs of a positive lead from Wall Street. Japanese stocks fell on caution ahead of the month’s end and a long weekend in the US, while Australian and South Korean shares ended higher after a positive lead from Wall Street. Hong Kong shares were largely flat with positive bias with many investors staying on the sidelines awaiting a report on the health of Chinese manufacturing. China’s official manufacturing purchasing managers index (PMI) for August, the latest indicator of manufacturing activity in the mainland, is due on Sunday. The Korea Composite Stock Price Index concluded to their highest close in nearly three months on upbeat US data and a sixth consecutive day of net buying by foreign investors. Stock markets in China rose alongside most regional peers lifted by finance, insurance and retailers after Chinese bank earnings beat expectations.
Japan posted some strong economic data, with the Finance Ministry reporting a second straight rise for consumer prices in July and a drop in the jobless rate. The core consumer price index, which excludes volatile fresh-food costs, rose 0.7% from a year earlier, accelerating from June’s 0.4% rise. The gain was the largest since November 2008 and marked a victory for the government of Prime Minister Shinzo Abe and the Bank of Japan, which have been pushing policies to rid Japan of crippling deflation. On a monthly basis, the core CPI was up 0.1%. Meanwhile, August core CPI for metropolitan Tokyo -- seen as a leading indicator for the nation as a whole -- was 0.5% higher than a year earlier, compared to a projected 0.4% rise seen. Separately, the unemployment rate slipped to 3.8% from 3.9% in June marking the second consecutive monthly drop for the jobless rate. In other data, spending for households of two or more people edged up a price-adjusted 0.1% during July, swinging from a 0.4% drop in June. The data provided evidence the Bank of Japan’s unprecedented monetary easing was yielding results in its attempt to pull the nation from an era of falling prices.
Chinese banks have extended 37.1 billion yuan ($6 billion) of loans to 6,626 micro and small businesses and farmers in Shanghai during the first half of this year, the Shanghai Bureau of the China Banking Regulatory Commission stated. Under the program that encourages lending to small companies and farmers, new loans of this type rose 10.5 billion yuan during the first half. The loans were made under a program organized by the regulator as the local government boosted measures to support small businesses amid the nation’s economic slowdown.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2098.38 | 1.15 | 0.06 |
Hang Seng | 21731.37 | 26.59 | 0.12 |
Jakarta Composite | 4195.09 | 91.50 | 2.23 |
KLSE Composite | 1727.58 | 23.80 | 1.40 |
Nikkei 225 | 13388.86 | -70.85 | -0.53 |
Straits Times | 3028.94 | -9.09 | -0.30 |
KOSPI Composite | 1926.36 | 18.82 | 0.99 |
Taiwan Weighted | 8021.89 | 104.23 | 1.32 |
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