Asian Stocks Swinging Between Losses and Gains

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Asian Stocks Swinging Between Losses and Gains
Asian Stocks Swinging Between Losses and Gains

Asian Stocks Swinging Between Losses and Gains

After gaining yesterday, Asia’s benchmark stock indexes are trading between gains and losses. This is all happening as Chinese shares fell amid concern funding costs for lenders will remain high. For instance, whereas Japan’s Nikkei 225 Stock Average rose as the yen fell to a five-year low, the MSCI Asia Pacific Index fell less than 0.1 percent to 138.35 as of 2:36 p.m. in Hong Kong.

However, there was less momentum for Hong Kong’s Hang Seng Index which declined to some extent and fell 0.3 percent. Similarly, China’s Shanghai Composite retreated 1.9 percent and Ping An lost 3.7 percent to HK$67.75. On the other hand, continuing its growth today from yesterday, the Nikkei 225 climbed 0.1 percent.

Mixed Trading Day for Asian Market amidst Stimulus from Japanese National Bank
Earlier, the Nikkei faced a little trouble as it declines initially; however, improved later on as the yen weakened to 104.56 per dollar which is the lowest since October 2008. In his statement Bank of Japan Governor Haruhiko Kuroda said that the bank is pledging to expand the monetary base by an annual 60 trillion to 70 trillion yen ($670 billion) today.

The statement came after a two-day policy meeting in Tokyo. Earlier, the Topix rose 47 percent this year through yesterday which according to various estimates is the most among major developed markets, particularly, when Europe and the U.S. are not doing well, the Japanese economy faring better is an encouraging factor.

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Other Regional Indexes amidst Mixed Trading Day

As the trading was mixed today, some stock markets in Asia fared better; however, some could not maintain the momentum. For instance, whereas Australia’s S&P/ASX 200 Index (AS51) gained 1.2 percent, South Korea’s Kospi index advanced 0.4 percent. A positive trend was seen in Singapore’s Straits Times Index which rose 0.4 percent.

Whereas New Zealand’s NZX 50 Index slipped 0.6 percent, there was little change in Taiwan’s Taiex Index. Continuing yesterday’s positive trade, India’s S&P BSE Sensex Index gained 0.6 percent. Similarly, whereas Ping An Insurance (Group) Co., China’s second-largest insurer lost the moist and declined 3.7 percent, Mazda Motor Corp., the Japanese carmaker that gets 73 percent of sales abroad, climbed 3.5 percent.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com