The Asian markets concluded Monday’s trade in red extending a global rout on renewed fears about emerging economies after the US Federal Reserve pressed ahead with its stimulus reduction and Turkey and South Africa hiked interest rates. Markets in China, Hong Kong, Taiwan and Malaysia were closed for trading on account of holiday. Asian manufacturing outside China showed signs of solid expansion in January as order books swelled, but factories in the region’s giant struggled for growth, heightening concerns about an economic slowdown. China’s service-sector growth also slowed down, to a five-year low, in another sign of the stuttering economic momentum that has been a factor behind the emerging markets sell-off of the past two weeks. Purchasing managers indexes (PMIs) showed South Korea expanding at its fastest in eight months. China official nonmanufacturing Purchasing Managers' Index fell to 53.4 in January from 54.6 in December. The services sub-index declined to 51.5 in January from 52.5 in December and construction fell to 61.0 from 62.6. New orders for the entire nonmanufacturing sector dropped to 50.9 from 51.0. The federation’s official manufacturing PMI, a companion index, fell to 50.5 in January compared with 51 in December.
Indonesia posted its third straight monthly trade surplus in December and it’s biggest in two years, an encouraging sign that could give the central bank leeway to keep rates steady next week despite investor anxiety over strains in emerging markets. Indonesia posted a trade surplus of $1.52 billion in December, putting the trade balance in the black for a third straight month and relieving pressure on the ailing rupiah. Indonesia’s inflation rate remained high through January due a weakening rupiah and disruption to the supply chain caused by widespread flooding. The country’s consumer price index increased 8.22% in January from the corresponding period last year. That’s compared to 8.38% year-on-year rise in December. Inflation in 2012 stood at 4.3%.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | - | - | - |
Hang Seng | - | - | - |
Jakarta Composite | 4386.26 | -32.50 | -0.74 |
KLSE Composite | - | - | - |
Nikkei 225 | 14619.13 | -295.40 | -1.98 |
Straits Times | 2990.95 | -36.27 | -1.20 |
KOSPI Composite | 1919.96 | -21.19 | -1.09 |
Taiwan Weighted | - | - | - |
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