Most of the Asian markets barring Jakarta Composite and Nikkei 225 concluded Friday’s trade in red ahead of next week’s key Federal Reserve policy meeting. Stocks across Asia posted healthy returns since last Friday, as further signs of an economic recovery in China combined with lower expectations of US military intervention in Syria supported regional risk sentiment. Japan’s industrial output rose 3.4 percent in July revised data showed, suggesting a recovery in factory activity remains intact. The figure compared with an initial reading of a 3.2 percent increase and follows a 3.1 percent decline in June. The capacity utilization index rose 3.7 percent in July from a month earlier to 99.3.
Meanwhile, the World Bank’s private-sector investment arm aims to double its investment in Indonesia in the next fiscal year, boosting infrastructure-sector loans. The International Finance Corporation (IFC) is targeting to invest between $500 million and $1 billion in the year ending June 30, 2014. Indonesia’s borrowing costs are surging toward those of Vietnam, rated five levels lower by Moody’s Investors Service, as a plunging rupiah spurs inflation. Besides, a planned free-trade zone in Shanghai is raising hopes that China’s new leaders will revive long-stalled economic reforms as they seek to make their mark.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2236.22 | -19.39 | -0.86 |
Hang Seng | 22915.28 | -38.44 | -0.17 |
Jakarta Composite | 4375.54 | 18.93 | 0.43 |
KLSE Composite | 1770.80 | -1.60 | -0.09 |
Nikkei 225 | 14404.67 | 17.40 | 0.12 |
Straits Times | 3120.30 | -0.78 | -0.02 |
KOSPI Composite | 1994.32 | -9.74 | -0.49 |
Taiwan Weighted | 8168.20 | -57.16 | -0.69 |
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