Asian markets conclude the trade mostly in green

All the Asian markets barring Jakarta Composite and Nikkei 225 concluded Monday’s trade in green. China shares soared to their highest closing levels since mid-June, as solid Chinese economic data released late Friday buoyed cyclical sectors from financials and property to coal and cement and amid hopes that Beijing would step in to support the economy. Seoul shares edged higher, reversing early losses as steel producers lifted the broader market on a day of low volume. The Nikkei share average dropped to a 7-week low after Japan’s economy grew more slowly than expected in the last quarter. Japan’s economy grew an annualized 2.6% in the April-June period, the Cabinet Officer reported, cooling sharply from a rapid 4.1% gain in the first calendar quarter. On a seasonally adjusted quarterly basis, gross domestic product rose 0.6% from the first quarter's 0.9% increase.

Indonesia’s retail sales in June rose 14.8% from a year earlier, ahead of the Ramadan holiday period when consumption normally increases. June’s growth pace topped a revised 12% in the previous month, driven by information and communication equipment, which includes mobile phones and pre-paid phone cards, and by clothing and fuel. The retailers expected retail sales to ease slightly in the next three months as consumption returns to normal after the Muslim festivities. Separately, the street expects Bank Indonesia, the country’s central bank, to maintain its benchmark interest rate at 6.50% when the board meets on Thursday to discuss ways to boost the slowing economy amid acceleration in inflation. The benchmark rate, known as the BI rate, has been raised twice this year - once each in June and July - by a total of 75 basis points, as the central bank seeks to tame a pick-up in inflation. Rising inflation in Indonesia makes it less valuable to hold rupiah-denominated assets.

China’s factory output grew in July at its fastest pace since the start of the year, adding to a run of data suggesting the world’s second-largest economy may be stabilizing after more than two years of slumping growth. Factory output rose 9.7% in July from a year earlier, the fastest growth since output grew 9.9% over January and February. A steadying economy would be a relief to China’s leaders, who worry that further slow down could derail their efforts to rebalance the economy away from its credit- and investment-driven growth model to one in favor of consumption. Singapore lowered its forecast for exports this year as a slowing expansion in China crimps demand for the nation’s goods, even as services helped the economy grow more than initially estimated last quarter. Non-oil domestic exports may be unchanged or rise 1% in 2013, compared with a previous forecast of 2% to 4%, the trade promotion agency stated. Gross domestic product rose an annualized 15.5% in the three months through June from the previous quarter, when it grew a revised 1.7%, the Trade Ministry stated.