INGOT Brokers AU | Asian market report (2017-06-09)

Asian market report (2017-06-09)

Asian equity markets closed mix on today’s session, the markets kept an eye on the overseas political and economic events with the main focus on the U.K elections results which came surprisingly with Theresa May conservative party failing to win a clear majority, causing uncertainty in the country specially regarding the Brexit negotiations which will proceed in the weeks ahead.

In the currency markets, the U.K elections and the European central bank interest rate decision have affected the markets, the British pound lost 1.41 percent against the dollar, the dollar rise against a basket of currencies including the Japanese Yen and the Aussie.

Moreover, China stock markets continue its positive territory supported by the strong economic data and the move to ease liquidity by the central bank. The country’s consumer price index (CPI) rose 1.5 percent in line with expectations and the producer price index (PPI) also advanced 5.5 percent on year. In addition to the strong economic data the markets are still fresh after the 1.8 billion Yuan that were injected in the interbank market by the central bank on Wednesday. Those factors drove the Shanghai Composite Index to rise by 0.3 percent to close at 3,158.40 points.

Elsewhere in Japan, the Nikkei 225 index closed higher in Friday’s trading session to return to the 20,000 levels, the index was supported by the gains in the Insurance, Fishery and Banking sectors which drove the index higher by 0.52 percent to close at 20,013.26 points. Among the best performers in today’s trading session was Softbank which gained 7.9 percent due to the news which came from Alibaba, a company in the US whom the bank owns shares in, that it expect to grow its revenue from 45 percent to 49 percent, also the bank announced today that it would buy robotics group Boston Dynamics from Google owner Alphabet. However the worst performer of the session was the Fujifilm Company which ended lower by 3.6 percent at a seven month low after a media report that criticized the company because of possible accounting irregularities.

Finally, the Australian markets ended in the green, supported by the rise in the Metals & Mining, Materials and Industrials sectors the S&P/ASX 200 index gained 0.02 percent to end at 5,677.8. However the gains were trimmed by the downtrend in the oil prices which affect many energy companies’ shares such as Woodside Petroleum Company which declined 1.5 percent, also the index was affected by the results of the U.K elections which pressured some of the Australian companies that have large funds in the U.K like Janus Henderson which closed down 2.4 percent.

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