On Tuesday, shares in Asia were mixed as oil futures extended the losses over glut concerns and as the Ninentendo market capitalization doubled amid Pokemon Go successful market impression.
Earlier today, stocks in China traded lower as the investors turned cautious in the economic recovery of the country. The Shanghai Composite Index lost 6.97 points or 0.23 percent to trade at 3,036.60 while the Chinese yuan changed hands lower against its U.S. counterpart. Also. CSI300 index dropped 0.8 percent to 3,236.30
The housing price growth in China has been evidently low and uncertainty on the capital inflows still lingers. Steven Leung, director at UOB Kay Hian in Hong Kong, explained that the second quarter growth figure came in slightly better than expected, but there is still a lot of uncertainty about the outlook for the second half.
Meanwhile, the Hang Seng declined 0.6 percent to 21,666.40 and the Hong Kong China Enterprises Index slumped by 0.9 percent to 9,007.81. The HIS Index holds 0.6 billion shares of the total trading volume of the companies.
Stocks in Taiwan traded higher headed by the positive performance of Hotels and Auto sectors. The Taiwan Weighted rallied 0.30 percent, the freshest 52-weak peak for the index. Around 422 stocks on the Taiwan Stock Exchange performed well while 323 stocks stayed south after the market closed.
On the other hand, the Taiwanese currency dropped 0.10 percent against its Chinese counterpart while it remained flat against the greenback.
Japan equities remained broadly higher as the Services and Transportation equipment sector posted gains in the late trade. The Nikkei 225 advanced 1.37 percent, the highest in the month of July; and the Nikkei Volatility rallied by 1.25 percent to 29.15 at the close.
On the Tokyo Stock Exchange, rising equities were 1472 while the falling stocks were 475. The greenback fell against the yen as it changed hands to 105.88, 0.26 percent lower.
Another show stopper in the stock market was the significant increase of Nintendo’s market capitalization. After the successful launch of Pokemon Go, the company’s market capitalization went 4.5 trillion yen only after seven sessions.
A fund manager at a Japanese asset management firm explained that the huge gains were reasonable. “Virtual reality and augmented reality have been a focus of the market but hardly anyone was expecting Nintendo in this area. Suddenly Nintendo has become an AR-related stock. Under my rough estimate, the sales from Pokemon GO and upcoming related gadgets will boost net profits by 50 billion yen,” the fund manager said.
Oil Prices Decline
Separately, oil prices plummeted as the market players waited for the U.S. crude stocks data and as the crude and refined fuel oversupply concerns affected the forecasted reduction of U.S. shale production.
Based on the recent U.S. drilling productivity data, the U.S. shale production may decline around 99,000 barrels per day to 4.55 million bpd next month. Adding to this, the crude inventories are expected to decline by 2.2 million barrels the week ended on July 15.
Earlier, U.S. crude changed $45.13 per barrel, 11 cents lower while Brent crude lost 11 cents as well after it traded $46.85 per barrel. Later today, the American Petroleum Institute is expected to deliver its stock report while the U.S. Department of Energy's Energy Information Administration is on Wednesday.
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