Most of the Asian markets conclude Monday’s trade in red

All the Asian markets barring Shanghai Composite and Nikkei 225, concluded Monday’s trade in red amid worries over Federal Reserve’s policy outlook, while Indonesian and Thai stocks tumbled on local economic concerns. Seoul shares closed slightly lower as large-caps struggled, but continued foreign inflows and a rally in shipbuilding sector on bets for stronger earnings ahead capped the decline. Mainland Chinese and Japanese shares ended higher after a choppy trading session on buying after a string of recent losses. Some Chinese developers weakened despite broad market gains and data showing a further improvement in home prices last month. The prices of new homes rose in 62 of 70 large and medium-sized Chinese cities in July from their levels in June. On-month growth in median home prices in 70 Chinese cities moderated in July for the fourth- straight month, but on-year prices in major cities continue to speed ahead, indicating that the government faces considerable pressure to keep prices in check. The Philippines suspended trading in the stock, foreign currency and debt markets today due to heavy rains and flooding in some parts of Manila.

In Japan, the steel makers and some automobile firms dropped even as the yen briefly weakened after data showing the country’s trade deficit widened sharply in July from the year-ago period. Japanese exports rose 12.2% on year in July as a weaker yen lifted the value of exports, while imports jumped 19.6% amid surging demand for fossil fuels. This has left Japan’s merchandise trade balance at a deficit of Y1.024 trillion, extending the monthly shortfall to a 13th month, the longest spell since 1980 when the second oil shock caused a spike in oil prices.

Indonesia’s President Susilo Bambang Yudhoyono set out the national budget and announced that the government has projected 6.4 percent economic growth for 2014. The government set growth at 6.8 percent economic growth in the 2013 State Budget, but revised expectations down to 6.3 percent in June’s revised budget. Next year’s inflation target has been marked at 4.5 percent, while the rupiah is projected to trade at an average Rp 9,750 against the US dollar. The three-month treasury bill (SPN) was expected to stand at 5.5 percent.