INGOT Brokers Australia | Asian market report (2017-06-23)

Asian market report (2017-06-23)

On Friday’s trading session the Asian equity markets were mixed over the falling oil prices, the Japanese disappointing manufacturing sector data, China’s banking regulator ordering banks to check the borrowings of major Chinese conglomerates and Australia’s newly announced tax on its major four banks.

During Asia’s trading session the Japanese Yen was mostly flat against the US Dollar trading near its one-months high before regaining some strength over the falling oil prices, while the Australian Dollar was slightly higher against its counterpart.

Meanwhile, The People's Bank of China set the Yuan mid-point at 6.8238 against the dollar on Friday, compared to the previous close of 6.8368.

In Japan, the stock market was mostly flat with its index Nikkei 225 gaining only 22.16 points or 0.11 percent to settle marginally higher at 20,132.67.

Activity in Japan's manufacturing sector continued to expand in May, albeit at a slower pace, the latest survey from Nikkei showed today with a seven-month low manufacturing PMI score of 52.0.

Moreover the Chinese stock market index was up by 0.33 percent or 10.42 to end at 3,157.87 recovering form its early losses following news that the nation’s banking regulator ordered banks to check the borrowings of major Chinese conglomerates, regarding loans for overseas asset purchases, like Anbang Insurance Group and Dalian Wanda Group.

Investors remain cautious over the developments in the Chinese stock market after the nation’s banking regulator order and the rising concerns of the tightening liquidity conditions.

Elsewhere, the gains in materials and healthcare lift the Australian equity market marginally higher with its stock market index ASX200 adding 9.92 points or 0.17 percent to settle higher at 5,715.88.

While banking stocks were mostly lower after the South Australia government announced a new tax on ANZ, Commonwealth Bank, Westpac, National Australia Bank and Macquarie. The move comes after the federal government announced a levy on the country's largest banks last month.

 

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