Asian stocks Up While Regional currencies Weaken

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Asian stocks Up While Regional currencies Weaken
Asian stocks Up While Regional currencies Weaken

Asian stocks Up While Regional currencies Weaken

Asian stocks are on a positive track on the second consecutive day this week. Regional markets including Japan, Thailand, and China are up today. In today’s trading about two stocks rose for each that fell on the MSCI Asia Pacific Index. So far, MSCI Asia Pacific Index has gained 7 percent this year.

Whereas South Korea’s Kospi increased 0.6 percent, there is brighter trading for Hong Kong’s Hang Seng Index which advanced 0.4 percent. A similar trend was seen in the Chinese stocks wherein new home prices in the country’s four major cities increased, with the southern business hub of Shenzhen posting a 21 percent gain from a year earlier.

Other regional economic powerhouse, India’s Sensex halted a six-day slide as the rupee strengthened after a decision came from the RBI Governor Raghuram Rajan that it is not interfering with the interest rates to support growth.

Japanese Stocks Faring Better

The reports coming in from the Japanese stock market show that the country’s Topix was poised for its highest close in a week as shares of Japanese exporters climbed as the yen weakened. Major gainer is Honda Motor Co., which gets about 80 percent of its revenue abroad and has been helped out significantly by the weak yen.

Honda Motor Co. has added 2.8 percent today and expected to fare better in the rest of the trading days. Similarly, Casio Computer Co., a consumer-electronics maker also jumped to great extent as its stocks went up by 5.7 percent after Morgan Stanley MUFG Securities Co. raised its rating on the stock.

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Regional Markets in Asia

A better trading day in Asia is being helped by a better-than-expected report on U.S. house builder confidence and inflation data, as according to investors it is suggesting low but stable price growth, supported the view that economic conditions are adequate for the Fed to start scaling back its $85 billion stimulus.

Other Asian markets too are on the right track; for instance, the Jakarta Composite Index rose 0.3 percent; the rally was made possible by shares in infrastructure and finance companies. A similar, pattern was seen in the Philippine index which after recovering from early losses, traded 0.3 percent up at a more-than-one-week high.

However, the share market of Malaysia and Singapore could not continue the momentum as the both face downward movement. Whereas Malaysia’s share index was down 0.1 percent, from a record closing high in the previous session, Singapore’s benchmark index was also down 0.1 percent.

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