Asian equity markets ended Tuesday’s session in red pressured by the news that came from the U.S regarding the stalled efforts to reform U.S health care; this story has affected the dollar which reached its lowest levels since September 2016.
The dollar fell after news that two additional Republican senators had opposed the Republican health care bill, and after those two there are now four GOP senators who have voiced against the bill.
China equity markets rebounded in today’s trading session after the massive losses that were recorded in the previous session on what some have termed “Black Monday.” The Shanghai Composite gained 0.33 percent, to close at 3,186.9316 and the Shenzhen Composite was up 0.599 percent, or 10.7868 points, to finish the session at 1,811.3263.
As for the release front in China, new home prices in China rose 10.2 percent on year for the month of June, compared to the 10.4 percent increase seen in May. On a monthly basis, June home prices were up 0.7 percent, comparable to the increase seen in the previous month.
Elsewhere in South Korea, the Kopsi advanced 0.04 percent, or 0.94 points, to end at 2,426.04. On the other hand, the Hang Seng index rebounded its earlier gains to close down 0.06 percent.
Traders in Japan returned from their long weekend after Monday’s holiday and started selling shares in reaction the downtrend in the dollar.
The Nikkei fell 0.9 percent to breaking the 20,000 level as the dollar slid to 112.20 against the yen. Exporters were among the biggest decliners in Japan because their offshore earnings are eroded by the yen’s strength.
The best performers of the session on the Nikkei 225 were Toshiba Corp after the announcement that the company would not close a deal to sell its memory chip unit before July 28, the company’s share rose 18.81% or 43.5 points to trade at 274.8 at the close. Meanwhile, Showa Shell Sekiyu K.K. added 4.35% or 49.0 points to end at 1175.0, and Fujitsu Ltd was up 3.34% or 28.0 points to 866.2 in late trade.
The worst performers of the session were NSK Ltd. which fell 3.35% or 51.0 points to trade at 1473.0 at the close. Amada Co., Ltd. declined 3.11% or 41.0 points to end at 1277.0 and Alps Electric Co., Ltd. was down 2.43% or 80.0 points to 3215.0.
Unlike its peers, Australian stocks closed Tuesday’s session down, and even they were the worst performing in the region, The S&P/ASX 200 index was down 1 percent, as the country’s big banks, which are heavily weighted on the index, declined over 2%.
In the currency market, the Australian dollar climbed to two-year highs reaching the $0.7909 point.
The best performers of the session on the S&P/ASX 200 were Saracen Mineral Holdings Ltd which rose 7.36% or 0.085 points to trade at 1.240 at the close. Meanwhile, Brambles Ltd added 1.77% or 0.170 points to end at 9.750, and St Barbara Ltd was up 1.70% or 0.045 points to 2.685 in late trade.
The worst performers of the session were Southern Cross Media Group Ltd which fell 3.77% or 0.048 points to trade at 1.212 at the close. Galaxy Resources Ltd declined 3.52% or 0.065 points to end at 1.780, and Cleanaway Waste Management Ltd was down 3.51% or 0.048 points to 1.308.
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