INGOT Brokers AU | Asian market report (2017-08-04)

Asian market report (2017-08-04)

Most Asian equity markets finished friday’s trading session in the red with the exception of Hong Kong’s main benchmark Hang Seng index. Asian equities fell after the market digested Asian earning and ahead of cautious trade as investors are awaiting the results of U.S employment data for the month July. Meanwhile, Geopolitical uncertainty still haunts Asian market after U.S President Donald Trump signed sign a bill enforce new sanctions on North Korea, Iran, Russia. However, the U.S president said that this bill is flawed and ‘’ will drive China, Russia, and North Korea much closer together better than expected first quarter earnings. .”

In Mainland China, Equities finished the session in mixed territories, Shanghai’s leading benchmark Shanghai Composite fell by 0.33 percent, or 10.85 points to close at 3,262.08, and Shenzhen Composite tumbles by 0.57 percent, or10.72 points, to settle at 1,858.49 at the close. Meanwhile, Hong Kong primary benchmark Hang Seng Index rose by 0.12 percent, or 31.67 points to trade at 27,562.68 after hours.

Regarding economic data in China for the week ending Friday, China manufacturing PMI released on Tuesday showed better than expected results for July to settle at 51.1, above economist expectations of 50.4. Moreover, Official PMI data came at below expectations to show a figure 51.4 contrary to expected reading of 51.6.  

Elsewhere in Japan, equities fell on Friday after advancing for the Third consecutive session, Geopolitical tension in the region continues to weigh on Japanese markets.

Japans leading benchmark Nikkei 225 rose fell 0.38 percent on Thursday to settle at 19,952.33 at the close.

Looking at individual stocks, Toyota Motor and Mazda Motor are expected to release plan for building a U.S car assembly plant opening in 2021, the project that is estimated to be worth 1.6 billion dollars, the plant is expected to have 300,000 vehicles per year producing capacity and will employ 4,000 people.

Japanese car maker Honda announced that it beat expectation for the first-quarter earnings. Operating profit came at 2.44 billion dollars (269.2 billion yen). Moreover, the firm revised its full-year profit forecast upwards.

Meanwhile, Digital giant Sony reported record first-quarter earnings. Profit almost tripled to 1.43 billion dollars (157.61 billion yen).

Toshiba announced that its flash memory unit would invest in production equipment after the collapse of negotiations with SanDisk. Furthermore, the firm said it would increase the output ratio of its 3D flash memory capacity by up to 90 percent.

In Australia, Australian equities traded lower on Friday for the Third consecutive trading session. Aussie stocks were led lower by losses in the Banking sector.

Looking at individual stocks, Commonwealth Bank after allegations that the bank breach money laundering law according to financial intelligence and regulatory agency, the allegation are that the bank's Intelligent Deposit Machines accept large amounts of money without the monitoring of the user's identities the  Commonwealth Bank.

Economic data released early in the week showed that the  Reserve bank of Australia left its base rate unchanged.

 

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