INGOT Brokers AU | Asian market report (2017-06-07)

Asian market report (2017-06-07)

Asian equity markets closed with mixed signals on today’s session, as investors are cautious about tomorrow’s economic events or what economist name the “Trio Thursday”. Trio here refers to a three economic events which are scheduled on Thursday, including the U.K general elections, the European central bank interest rate decision and the testimony of the former FBI Director James Comey.

In the U.K tomorrow will be a big day in the country, as the general elections results will be published and the latest polls showed that Theresa May conservative party are winning a larger majority seats specially after the latest terrorist attacks that the country has faced.

As a result of this fears investor are pulling back their positions into the safe heavens assets, containing the gold and the Japanese yen. The yellow metal reached a seven week high in yesterday’s trading session to close at $1,292.30. In addition the USD/JPY reached a six week low to close at 109.70.

However, China stock markets ended contradictory to the others, after some major listed companies have encouraged employees to buy back shares of their companies, this process has signaled a positive outlook to the investors, also the injection of a 180 billion Yuan into the interbank market from the Bank of China via open market operations gave the Chinese equities a push to close in the green zone.

Elsewhere in Japan, the Nikkei 225 index closed higher in Wednesday’s trading session, as gains in the Transport, Chemical and Food sectors drove the index up by 0.02 percent to close at 19,984.62.

Furthermore, in Hong Kong the Hang Seng index gained 0.2 percent, supported by the gains in the smartphone audio components supplier AAC technologies which ended up by 13.66 percent after the company being harmed by short seller Gotham city in May which accused it of suspicious accounting practices.

Finally, the Australian markets ended in the green, supported by the rise in the Gold, Telecoms Services and Healthcare sectors to end at 5,667.2. On Wednesday trading session, the top performer was Vocus Group which gained 20.8 percent to close at 3.455 after the takeover bid which was submitted to shareholders by Kohlberg, Kravis and Roberts Company, as known as KKR. In addition, the worst performer in today’s trading session was Sky Network Television which fell to 5-year low after losing 3.77 percent to close at 3.195, the company’s share was affected by the fair value cut which made by Morning star which gave the stock a Hold rating.

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