Category Archives: Asian Finances

Asian indexes closed on green

Asia stocks indexThe Asian indexes closed on green, for the second consecutive session. They were supported by hopes that the growth of the Chinese economy in the world finally stabilized. The investors are increasingly optimistic about China in recent sessions amid better economic data such as the July report on manufacturing activity. The positive news sent the benchmark Shanghai Composite to 7-month high. The Hong Kong’s Hang Seng index rose again to 4-year high. The main risk events to come later this week, were also in the spotlight. Wednesday is expected next meeting of the US Federal Reserve, to which the institution is likely to continue the course of lowering your monthly purchases of assets to 25 billion USD. The focus will be data on the US economic growth in the second quarter and the government index of purchasing managers in China. The Chinese Shanghai Composite rose 0.24% to 2,183.19 points, recording its eighth consecutive session of growth. Meanwhile, the CNY hit a new four-month high against the USD. The insurers reported mixed performance amid signs that Chinese regulators are considering new measures to tighten rules in an attempt to reduce the risk of failures. The capitalisation of New China Life Insurance slid more than 2%, while China Life Insurance added nearly 1%.

Leading Asian indexes closed in different directions

Asian indicesThe leading Asian indexes closed in different directions, though they were taken up after a positive session on Wall Street last night. Chinese stocks led the losers in the region after the money supply in the Celestial Empire grew the slowest pace in more than a decade. In Japan, the Nikkei 225 rose with 0.62% to 13,996.81 points. In China, the Shanghai Composite fell 1.40% to 2,101.60 points. The Hong Kong’s Hang Seng fell with 1.6% to 22,71.26 points.
The indices in China and Hong Kong fell after data showed that the broader monetary aggregate M2 has expanded less than expected 13% increase. Meanwhile the new loans rose by nearly 14%.
The stock exchanges in China and Hong Kong financial sector suffered the most. Mood influenced the news that day only for Chinese central bank will draw the most liquidity in the market since February. The shares of Citic Securities fell 3.6%, while those of the Merchants Bank and Minsheng Bank – with 2% each.
The South Korean KOSPI wiped 0.24% of its value, while Australian S&P ASX 200 registered a growth of 0.55% to 5,388.16 points and moves away from the bottom two-month reported yesterday.

Asia will grow with 7.1% in 2014 according to the World Bank forecast

Asia industryThe World Bank (WB) estimates that this year recovering demand from industrialized countries will stimulate economic growth in the export-dependent countries in Asia. According to the international financial institution developing Asian economies will grow by an average 7.1% this year. In practice, the bank forecast remains that in 2013 China will increase its gross domestic product (GDP) of 7.6% instead of 7.7%, as expected by the World Bank in 2013. According to the latest research by Finweek Journal, the report by international lenders indicates that the process of reducing the size of asset purchases by the US Federal Reserve, which began this year, which should after a certain time to raise the yield on US Treasuries, it has caused great losses Asian markets.
“The strong global economy growth this year will help the enlargement of the region at a relatively steady pace until he adjusts to tighter global financial conditions”, said Vice President of the World Bank for the East Asia Axel van Trotsenburg.

Asian indexes started the week with decreases

Asian trade marketsThe leading indices in Asia started the week with falls after heavy losses on Wall Street late last week. On Friday, the stock exchanges overseas technology sector suffered the most, as Nasdaq Composite slid 2.6%. The Japanese Nikkei 225 index fell to the bottom week after a strong yen weighed on exporters. The benchmark fell 1.69% to 14 808.85 points. In China, markets are closed for the celebration of the national holiday. The Hong Kong’s Hang Seng slid 0.65% to 22 363.52 points. In Australia, the index S&P ASX 200 is pulled away from its highest level in a month and eventually down 0.17% to 5 413.70 points. The South Korean KOSPI rose slightly by 0.08% to 1 989.70 points. In India, the leading measure of stock SENSEX a closed with a decline 0.64% to 22 215.97 points. The investors took winnings at the start of elections in the country that will continue for a month.
The stock exchanges in Japan tech companies being the biggest losers, commented the Finance News Wire. Shares of Rakuten and Yahoo Japan fell by 5% each, while those of Softbank and Panasonic – by over 4%. Daiichi Sankyo increased by 3% capitalization after the news that Sun Pharmaceutical Industries will buy its Indian unit Ranbaxy Laboratories. In turn, shares of Sun Pharmaceutical rose 2%, while those of Ranbaxy fell 2.5%.

Japanese stocks stopped their negative 3-days series

Toyota sharesThe Japanese stocks recorded gains and cut negative three-day series, after the yen continued to depreciate. Speculation that the US Federal Reserve may soon reduce incentives impacted investors in Asia. Nikkei 225 ended the session on Friday with a growth of 0.40% to 15 403.11 points. The Hong Kong’s Hang Seng registered a growth of 0.12% to 23 245.96 points. Leading Chinese Shanghai Composite Index declined by 0.31% to 2 196.07 point. The South Korean KOSPI index closed with a decline of 0.26% to 1962.91 points. Australia’s benchmark S&P ASX 200 climbed 0.71% to 5 098.43 points. The investors largely shrugged off news that the House of Representatives approved a U.S. bipartisan agreement on the budget. Next week, the Senate and the proposals. The JPY hit a new 5-year low against the USDand the euro. Domestic producers benefit from the cheaper currency. The mood of market participants and stimulate the Japanese government’s decision to approve new incentives to 53 billion USD to soften the impact of the reduction in sales tax next April. The shares of blue chips and sensitive to changes in the exchange rate rose exporters. Fast Retailing added 2,4%, Fanuc – 1,4%, and Nikon – 0,7%.

Weak growth of the Japanese economy did not stopped the rise of Nikkei

NikkeiThe leading capital markets in Asia ended the first session of the week in green territory, continuing the trend of Wall Street since the end of last week. The most significant growth in the continent has made Nikkei 225 in Tokyo, which added 2.29% to 15 650.21 points. The weakening of the yen offset pessimistic data that showed lower than expected economic growth in the third quarter. The Japanese currency traded at around 103 JPY per USD approaching reached last week, 6-month low of 103.37. A weaker yen boost the profits of export-oriented companies. The shares of SoftBank and Fanuc rose 2%, while KDDI and Fast Retailing added over 3%. The Japanese government lowered the initial estimate for the growth of the country during the third quarter. The ruling stated that the capital expenditure was lower than originally calculated. The GDP of Japan grew by 1.1% on an annual basis for the period from July to September compared with the second quarter, revising down an initial assessment of growth of 1.9% yoy, published three weeks ago. Interviewed by Nikkei and Wall Street Journal Economists expect the revised forecast to be up 1.5%. This is a serious decline from the first half of the year when Japan’s economy expanded by about 4%, surpassing even the growth of USA. The US economy grew by more than the Japanese in the third quarter objectives 3.6%.

Thailand’s Prime Minister dissolved the parliament

Yingluck ShinawatraAfter about a month of anti-government protests, Prime Minister of Thailand Yingluck Shinawatra announced that dissolve parliament and call as soon as possible choices. The Prime Minister Yingluck Shinawatra decided election after all opposition MPs left parliament and vowed today to hold a massive demonstration in front of the government building. Demonstration are convinced that the current cabinet is controlled by ousted leader Thaksin Shinawatra and so today we will take to the streets.
“We will continue to fight. Our goal is to overthrow”, said the leader of the protests. According to him, although there will be elections and Thaksin Shinawatra lives in exile, he is trying to influence the management in the country. Today, 60 schools in Bangkok were closed as a precaution because of planned demonstrations outside the government building. Since the start of the protests last month, at least five people were killed and 289 wounded.

Asian indexes decreased after the good data from USA

Asian marketsThe stock markets in Asia reported declines in the last session of the week, when the indications for strengthening the US economy raised concerns that the Fed may begin gradually restrict their purchases of bonds. Preliminary data for US growth in the third quarter showed an increase in gross domestic product (GDP) by 2.8%. The result exceeded the quarter as reported earlier 2.5%, and experts forecast growth of 2%. The markets reacted negatively to the data in order to return investors’ fears that the US central bank may reduce the 85 billion year monthly bond purchases at its meeting in December. The Japanese benchmark Nikkei 225 stock average lost 1%, while the yen fell against the dollar to a level of 98.12. The Australian S&P/ASX 200 fell 0.4%, while South Korean Kospi lost 1%.
Fed outlook reduce incentives to lead to massive sales in the summer, which provokes substantial declines in the purchasing power of some of the leading Asian currencies. The following US economic data that market participants look forward to on Friday are those of the labor market in October. Among the countries of Southeast Asia that were hardest hit by the latest wave of selling, Philippine PSE Composite Index fell 1.3%, while in Indonesia JSX lost 0.2%.
The Hong Kong’s Hang Seng fell 0.6%, while the benchmark Shanghai Composite erased 2.9%.

Asian indexes retreated waiting for important news from China and USA

Asia indexThe leading Asian stock markets recorded a retreat on Thursday. Decline in shares of auto giant Toyota Motor was a major contribution to the decline in Tokyo, while in Sydney applied pressure declines in the banking sector. The benchmark Nikkei 225 stock average fell 0.8%, although the JPY remained relatively stable at a level of 98.64 per USD. The market capitalization of Toyota Motor Corp fell 1.3%, though the carmaker reported a net profit of 438.43 billion JPY (4.45 billion USD) in the three months to the end of September. A year earlier, the company posted a profit of 257.92 billion JPY. The financial statements of Toyota came just a day after shares of Nissan Motor Co fell 10% after cutting profit forecast for the fiscal year. Results of Honda Motor Co a week ago also failed to meet expectations.
The Australian Index S&P/ASX 200 lost 0.2%, considering the sharp declines in some of the largest banks in the country. The shares of Australia & New Zealand Banking Group and National Australia Bank fell by 4.2% and 3.4%, since lenders have announced plans not to pay their last dividend. On the opposite side was the Commonwealth Bank of Australia, whose market capitalization has increased by 1.7% after JPMorgan raised the assessment of the bank to the level of “buy”.

S&P may downgrade the credit rating of India to non-investment grade

S&PThe Credit Rating agency Standard and Poor’s (S&P) announced that it may downgrade India below investment grade, if the next government of the Asian country does not present a credible plan for dealing with low economic growth. The S&P said that in order to correct the assessment of India to “stable”, the new government should prepare a program to restore growth, improve public finances and to implement an effective monetary policy. S&P is only one of the three major agencies that puts “negative” outlook for India. The country’s rating is BBB-, or the lowest possible investment grade. The credit agency also said it will make the next revision of the rating after the Indian parliamentary elections are scheduled for May 2014, unless fiscal and external situation of the country does not deteriorate significantly.
“The negative outlook means that we can downgrade to speculative grade next year, if the government, which took office after the election, not done enough to change the low economic growth in India”, says the official position of the S&P.
The Indian economy continues to face serious difficulties after growth has slowed to a low of decades of under 5 % in the year ended in March fiscal year. Analysts attributed the decline to a lack of decisive government action, and high interest rates.
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