Asian markets close mostly in green on Tuesday

The Asian equity markets ended mostly in green on Tuesday, extending gains into a second session following another US rally. China Stock exchange was closed on account of ‘National Day’ holiday. The International Monetary Fund stated that China has the capacity to manage its economic slowdown but needs to communicate policy more effectively and guard against potential spillovers. The Fund added that China needed to expand market forces to return to sustainable growth and to implement effective governance. The Fund calculates that every percentage point slowdown in China’s growth translates into a 0.3 percent decline for other Asian countries, although it noted that the impact of China’s slowdown had likely been exacerbated by declines in its financial markets in recent months. Indonesia’s banks need to consider the likely risk of a further depreciation in the rupiah before deciding whether to lower their lending rates, the country’s central bank governor stated, after the cabinet secretariat said President Joko Widodo would seek to encourage reductions in interest rates. Bank Indonesia Governor Agus Martowardojo told that lower annual inflation in September provided room for banks to reduce lending rates, but they have to also consider expectations of (rupiah) depreciation, which would make it quite risky to adjust the level of their rate. Japan’s Average Cash Earnings fell to a seasonally adjusted 0.5%, from 0.9% in the preceding quarter whose figure was revised up from 0.6%.