The Asian markets concluded Friday’s trade on a mixed note with Chinese stocks closing in red as local money market rates hit six-month high. The Shanghai Composite dropped as the benchmark seven-day repurchase agreement rate hit 7.8%. Money-market rates have climbed sharply in recent days, and continued to rise even after the People’s Bank of China stated that it undertook short-term liquidity operations to offer an appropriate amount of funds to the money market. The Indonesian banking index fell after central bank stated that it plans to increase banking capital reserves. Bank Indonesia stated that Indonesian banks need to boost their core capital to 6 percent of risk-weighted assets from 5 percent so that they are more resilient should there be a financial crisis.
The Bank of Japan kept its asset-purchase levels and overall monetary policy unchanged, a widely expected move that did little to move currencies. The BOJ will keep money market operations so that the monetary base increases at an annual pace of about Y60 to Y70 trillion. The central bank’s statement also retained previous language on the economic outlook, saying the nation’s economy has been recovering moderately, while inflation expectations appear to be rising on the whole. The BOJ expects the year-on-year rate of increase in consumer prices to rise for the time being toward its 2015 goal of a stable 2% inflation rate.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2084.79 | -43.00 | -2.02 |
Hang Seng | 22812.18 | -76.57 | -0.33 |
Jakarta Composite | 4195.56 | -36.42 | -0.86 |
KLSE Composite | 1838.03 | -8.15 | -0.44 |
Nikkei 225 | 15870.42 | 11.20 | 0.07 |
Straits Times | 3094.48 | 24.25 | 0.79 |
KOSPI Composite | 1983.35 | 7.70 | 0.39 |
Taiwan Weighted | 8408.53 | 1.13 | 0.01 |
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