INGOT Brokers Australia | Asian market report (2017-07-03)

Asian market report (2017-07-03)

Overview

Asian equity markets started the week in positive territory after the above than forecasted Caixin PMI data from China and the Bank of Japan’s quarterly Tankan Survey.

Markets in china ended Monday’s trading session in green, supported by the positive economic news after the Caixin manufacturing PMI for the month of June came in at 50.4, above the 49.5 forecast. Hong Kong's Hang Seng Index was up by 0.1 percent. The Shanghai Composite advanced 0.07 percent, or 2.3616 points, to close at 3,194.7885, and the Shenzhen Composite gained 0.396 percent, or 7.5171 points, to end at 1,905.2037.

Furthermore, investors kept an eye on the new bond program between Hong Kong and China which allows investors in Hong Kong to trade in China’s fixed income market. A press release on the Hong Kong Monetary Authority (HKMA) website stated that trial operations of "northbound" trade began on Monday. HSBC said it had completed its first trade on the "bond connect".

 

Japan Stock Market

Japan stock markets ended today’s trading session in the green after getting support from the gains in the Transportation Equipment, Steel and Mining sectors, also the economic data which came from Bank of Japan regarding the quarterly tankan survey pushed the equity markets to close in positive territory. The Nikkei 225 gained 0.11 percent to close at 20,055.80.

Bank of Japan's quarterly tankan survey showed that business confidence had improved in the country. The big manufacturers' index recorded a score of +17, compared with the forecast of +15.

Elsewhere in the currency markets, the dollar index ended higher to trade above nine month lows which had been reached last week to trade at 95.761. Against the Yen the dollar is trading at the 112.60 levels.

The best performers of the session on the Nikkei 225 were Citizen Holdings Co., Ltd. which rose 3.55% or 28.0 points to trade at 816.0 at the close. Meanwhile, Showa Denko K.K. added 3.49% or 91.0 points to end at 2697.0 and Ube Industries, Ltd. was up 3.11% or 9.0 points to 298.0 in late trade.

The worst performers of the session were Toshiba Corp., which fell 3.28% or 8.9 points to trade at 262.2 at the close. Advantest Corp. declined 2.29% or 44.0 points to end at 1878.0 and Nippon Electric Glass Co., Ltd. was down 1.71% or 70.0 points to 4015.0.

 

Australia Stock Market

Australia stock market ended Monday’s trading session in the red after loses recorded in the Consumer Discretionary, Utilities and Healthcare sectors. The S&P ASX 200 lost 0.65 percent to close at 5,684.50.

Investors are waiting the Reserve Bank of Australia interest rate decision on Tuesday.

In the currency markets, the Australian dollar which is sensitive to Chinese economic data, slipped after the data, trading at $0.7671, compared with as high as $0.7695 before the release.

The best performers of the session on the S&P/ASX 200 were Bega Cheese Ltd which rose 4.30% or 0.280 points to trade at 6.790 at the close. Meanwhile, Blackmores Ltd added 3.82% or 3.66 points to end at 99.50 and Beach Energy Ltd was up 3.04% or 0.018 points to 0.593 in late trade.

The worst performers of the session were Fairfax Media Ltd which fell 10.45% or 0.115 points to trade at 0.985 at the close. Aveo Group declined 5.58% or 0.155 points to end at 2.625 and Vocus Group Ltd was down 4.45% or 0.150 points to 3.220.

 

 

 

 

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