On Tuesday, Asian markets settled in negative territories amidst rising geopolitical tension in the North Korean Peninsula, as most market Asian found pressure after yet another missile launch test by North Korea.
Geopolitical tensions between North Korea and the Japan reached escalated drastically after North Korea launched a ballistic missile that soared over Japan to eventually fall in the sea. Moreover, the missile reportedly was traveling towards Tohoku region, according to NKH, a Japanese national public broadcasting organization.
Furthermore, Japanese Prime Minister Shinzo Abe said that the latest ballistic missile launch is an “unprecedented, serious and significant threat”. While, South Korea said that is it preparing it military to strike back at North Korea, if required.
Markets are also reacting defensively, as cautious trade prevailed globally, and safe haven asset soared, with gold prices hitting 2017 highs and the Yen showing strength against other major currencies.
In Mainland China, equity ended the session mostly in the red, as Shanghai Composite was the only gainer in the session, the index rose by 0.09 percent to trade at 3,365.63 at the close, and Shenzhen composite lost 0.24 percent to settle at 1,932.06. Meanwhile, Hong Kong’s main primary benchmark the Hang Seng index tumbles by 0.35 percent to trade at 27,765.01 afterhours.
Looking at individual stock listed on the Hang Seng , Citic announced that the firm saw a rise of 60 percent in its first-half profit attributable to shareholders $4.13 billion dollars. Meanwhile, real estate giant Evergrande Group; the property Mongol outperformed other property firms for the second consecutive session to suged by 8.77 percent compared to rise of 5.93 percent in the previous session.
Elsewhere, South Korean Index Kospi lost 0.23 percent to trade at 2,364.74 afterhours. The index found pressure from rising tension in the Korean Peninsula.
In Japan, the Japanese Nikkei 225 tumbled by 0.45 percent to trade at 19,362.55 at the close. Equities in Japan tumbled as markets went on the defensive after the North launched a ballistic missile that flew over the country and was headed towards the Tohoku region. Looking at stock specific news, Japanese automaker Subaru Corp revised down its profit forecasts on Monday, to 228.5 billion yen compared to the previous forecast of 285 billion yen. This is due to losses incurred by the car maker after reports of air bag failure started emerging about its vehicles.
Meanwhile down under in Australia, Aussie stocks finished in negative territories for the second consecutive session, Aussie benchmark fell by a margin of 0.72 percent to settle at 5,669.01 at the close.
Look at individual stocks, Common Wealth Bank of Australia was publicly slapped with a public inquiry into its governance and culture. The inquiry adds to the current woes of the lender, as this marks the second regulatory probe in one month. Moreover, the bank was accused by Australian Prudential Regulation Authority will hold a public inquiry into the lender thus adding more onto the bank’s current problems with other governmental organizations.
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