INGOT Brokers AU | Asian market report (2017-09-04)

Asian market report (2017-09-04)

Asian markets ended Monday’s session mostly in red territories after North Korea conducted its most powerful nuclear test to date on Sunday, stating it was a successful test of a hydrogen bomb,

Pyongyang claims that the bomb could be fitted on an intercontinental ballistic missile.

The U.S president Donald trump refused to rule out the military option and asked the U.S defense secretary Jim Mattis for a brief on all the available military options.

Moreover, the U.S defense secretary said "Any threat to the United States or its territories, including Guam or our allies will be met with a massive military response, a response both effective and overwhelming,"

On the other hand, South Korea’s Defense Ministry stated that Pyongyang is making preparations for a launch of another intercontinental ballistic missile, but didn’t mention were, or give a time frame for the possible launch. However, experts expect that the test might be around the ninth of September when North Korea celebrates its foundation.

 

In China Shanghai Composite index rose by 0.37 percent to settle at 3,379.58, the blue chip Chinese companies index Shanghai Shenzhen also gained 0.39 percent to end the session at 3,845.62 points. Meanwhile, Hong Kong’s leading index Hang Seng eased on Monday's session by 0.76 percent to close at  27,740.26 points.

 

Japan’s main index Nikkei ended Monday’s session in red territories As the index dropped by 0.93 percent to settle at   19,508.25 points pressured by losses in Power, Fishery and Gas & Water sectors. However, energy was the only sector which has ended the session in green edging up by 0.06 present.

Kyowa Hakko Kirin a Japanese pharmaceutical and biotechnology company which is among the 40 largest in the world by revenue lost 4.26 percent after Aspen Completes Takeover of four of its brands.

USD/JPY was down by 0.72 percent to 109.47 as investors tend to turn to the yen as a safe-haven currency.

 

Australia’s index ASX 200 edged down on Monday’s session by 0.39 percent to settle at 5,702.00 pressured by losses in Utilities, Healthcare IT sectors and the geopolitical tension caused by North Korea testing its new hydrogen bomb over the weekend.

Moreover, Commonwealth Bank of Australia announced a major board reshuffle and it confirmed that its internal reporting department had flagged shortcomings in the monitoring of offshore transactions since February. This unprecedented scandal has shaken Australia's banking sector as the Commonwealth Bank of Australia is facing a billion dollars in potential fines after it was sued by Australian transaction reports and analysis center last month for money-laundering.

On the other hand, Australian gold stocks climbed about 1.4 percent as prices hit their highest in almost ten months after the North Korean test drove investors to invest in safe-haven assets.

 

 

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