After positive trading yesterday, Asian stocks and indexes are on the right track. The impact of positive U.S. data on employment and Chinese restructuring their economy is playing an important role in the trend setting. In today’s trading, the Malaysian stock market hit a record high. Similar, trend was seen in Jakarta’s Composite Index.
Today, Jakarta index was up 1.3 percent at a one-week high. Observers believe that the trend in Indonesia has been helped by financial shares, with Bank Central Asia PT jumping 3.7 percent. Whereas Vietnam’s benchmark VN Index was up 0.1 percent by midday, Philippine shares fell to a three-month low amid uncertainty about the U.S. Federal Reserve’s stimulus tapering.
Indonesian Stocks Upward
Indonesian stocks were up today as they are being supported by gains in several blue chips as an exchange traded fund bought stocks during its portfolio restructuring. On the other hand, Malaysia’s main index hit a record high for a second day. Today, it reached to 1,846.05 which is a gain of 0.17 percent at 0705.
Major gainer in Malaysian trade is Malayan Banking Berhad which gained a 0.7 percent gain in today’s trading. Market observers, however, believe that investors in the region were cautious about buying ahead of a U.S. Fed meeting on Dec. 17-18 which is going to determine the future course of action on the stimulus.
U.S. Stimulus Tapering May Come as Early As the Next Month
Market observers believe that the Fed is expected to begin tapering its own asset purchases by March which is still far; however, it will have impact on the global market. On the other hand, some analysts are of opinion that may be from January next year, the Fed may start tapering its stimulus and that may have impact on the global share and stock markets.
In today’s trading, whereas Malaysia gained, the Philippines index dropped 1.7 percent to a near three-month low. Philippines which faced huge natural calamities recently, is facing another challenge in the form of slow growth. According to a government forecast the growth rate may fall as much as 0.8 percentage point.
In its report the government said that the growth could be shaved off the annual GDP in the final months of the year due to the typhoon in November. The trend in Philippines was followed by Singapore stocks which fell 0.5 percent and reaching to a three-month low.
To contact the reporter of this story: Jonathan Millet at email@example.com