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Asian markets end mostly in the red on weak Japanese data

14 Jan 2014 Evaluate

Pressurized by weak cues from US markets, most of the Asian equity indices shut shop in the red on Tuesday. Feeble Japanese macro economic data and concerns that the Federal Reserve will move forward with its decision to trim its stimulus efforts starting in January too dampened the sentiments across the Asian region. Japanese shares tumbled to a one-month low as stronger yen weighed on exporters. On the economic front, Japanese current account deficit widened more than forecast in November, despite efforts undertaken by the Prime Minister Shinzo Abe to rejuvenate the economy.

Japan posted a current account deficit of 592.8 billion yen in November, slipping into the red for the second straight month amid the yen’s fall and growing demand for energy. The deficit grew 230.1 per cent from a year earlier, and represented the biggest deficit for November for 30 years. The current account shortfall was largely blamed on a trade deficit of 1.25 trillion yen as Japan imported more petroleum and liquefied natural gas after the nation’s worst nuclear disaster in 2011. Meanwhile, Seoul Composite too ended in the negative terrain, led by construction and solar energy shares. South Korea’s benchmarks also drifted lower on institutional selling. Domestic financial institutions offloaded shares worth a net 61.1 billion won, while overseas investors sold shares to the extent of 30.8 billion won.

Moreover, equity markets in Indonesia and Malaysia remained shut on account of public holiday.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,026.84

17.28

0.86

Hang Seng

22,791.28

-97.48

-0.43

Jakarta Composite

-

-

-

KLSE Composite

-

-

-

Nikkei 225

15,422.40

-489.66

-3.08

Straits Times

3,123.75

-11.74

-0.37

KOSPI Composite

1,946.07

-2.85

-0.15

Taiwan Weighted

8,548.14

-18.06

-0.21

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