Asian stocks bar some exceptions are losing the sheen that they saw on Friday, as the stock markets ebbed in holiday-thinned trade today. A major reason behind the ebb is that investors are waiting for a resolution to the U.S. budget deadlock which may unfold soon as the Oct. 17 deadline to increase the U.S. debt ceiling looms.
While the Republican Party promises to vote to extend the government’s borrowing authority for six weeks, Democratic Party would likely sign a bill to increase the nation’s ability to borrow money. Though the negotiations are continuing, there seems no headway. The International Monetary Fund, China and various governments world over have already warned for grave implications of the US debt default.
Stock Market on Monday
Various reports indicate many of stock markets in Asia have a slow trading day. Whereas China’s Shanghai Composite Index was up 0.5 percent at 2,238.39, South Korea’s Kospi was off 0.1 percent at 2,024.03. Similarly, Australia’s S&P/ASX 200 shed 0.5 percent to 5,208.10. Stocks in Taiwan and Southeast Asia are down today.
The world’s second-largest maker of computer-memory chips, SK Hynix Inc. has a bad trading day today as its share slipped 1.1 percent in Seoul. However, CSR Corp. and China CNR Corp., China’s biggest train makers have better trading day as their shares jumped 10 percent up in daily limit in Shanghai.
As the gold prices are heading downwards, Newcrest Mining Ltd. (NCM), Australia’s No. 1 gold producer, did not fare well today. Its share declined 3.7 percent. There is no trading today in Tokyo and Hong Kong for the two countries are celebrating holidays.
Indian Bonds Heading Southward, Stocks Upward
In today’s trading Indian bonds slumped to a great extent amidst the speculation that the central bank will raise interest rates for a second consecutive month in late October. Beating the expectations from analysts the WPI in September rose to 6.46 percent. However, stocks are moving upward and some of the companies in BSE are faring better today.
In today’s trading India’s benchmark BSE index is up 0.42 percent and the broader NSE index higher 0.29 percent which is highest intraday level in three weeks. The rally is being led by software services exporters. Earlier Infosys Ltd on Friday raised the lower end of its fiscal 2014 revenue outlook and gave a positive outlook for shareholders.
To contact the reporter of this story: Jonathan Millet at email@example.com