Asian stock markets firmed during today’s trading session after the US tech sector expanded its losses, supported by the stronger US Dollar that led Asian equities higher as their denominated currencies weakened.
As the US Federal Reserve lift its interest rates for the second time this year, the US Dollar rose to its two week’s high thus weighting on other major currencies.
The Chinese Yuan and the Australian Dollar fell against the US Dollar as well as the Japanese Yen which was also affected by the Bank of Japan stating it would maintain its aggressive monetary stimulus to boost inflation.
In Japan, exporters’ shares rose supported the weaker currency signal a better exporting conditions and the Japanese stock market index Nikkei 225 gained 0.56% but to remain near its two week’s low.
Among the exporters, Mitsubishi Electronic that gain 1.66 percent, Honda Motor rising by 0.65 percent and Yamaha Motor settling by 0.92 percent higher.
Meanwhile, Chinese shares remained under pressure, even as the country’s central bank on Friday made the largest single-day cash injection into the financial system since mid-January to boost market liquidity, due the worries regarding the heightened regulatory scrutiny over Chinese corporate activity that could continue to weigh on the market in the near term.
Moreover, Investors’ focus remained on Anbang Insurance Group, whose chairman was allegedly detained by Chinese authorities, and the potential fallout the company’s troubles could have on local stocks. Chinese banks have taken steps to limit their exposure to the group and have slowed marketing of Anbang-branded investments to their customers in recent days, according to people with knowledge of the situation.
The Chinese stock market index settled at 3,123.17 slightly above the week’s low, down by 9.32 points or 0.30 percent.
Elsewhere in Australia, the stock market witnessed its best week in more than two months despite the selling pressure in the materials and energy sectors and the tech-sell off in the US market.
The Australian stock market index ASX 200 settled slightly higher at 5,774 gaining 10.80 points or 0.19 percent.
Healthcare, real estate and consumer discretionary shares were the best performers that led the equity market higher.
While the plummeting iron ore prices in addition to the falling oil prices weight on both the energy and mining sectors but not as much as expected.
Australia's largest oil refiner Caltex managed to climb 1.4 per cent over the week while Rio Tinto and Fortescue Metals closed down 4.5 per cent and 3.3 per cent over the week respectively.
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