Shares in Asia traded mixed on the session as the market eyed the actions of the policymakers over the relative impact of Brexit and the upbeat U.S. reports released recently. Also, the stocks were likely affected by the upcoming BOJ policy meeting.
The benchmark S&P/ASX 200 index gained 0.53 percent as the retail and financial stocks in the Australian market traded higher. The stocks in ASX200 will likely be supported by the recent uptrend of U.S. stocks and the lower rates in Australia.
Moreover, Shanghai Composite Index added 0.2 percent and the Shenzhen composite rose 0.16 percent, while Kopsi lost 0.1 percent after the market closed earlier today.
Hong Kong Stocks
In Hong Kong, shares were mostly lower after the session closed earlier as the market players watch over the effects of the current market events. The Hang Seng Index eased from its recent gains as it traded at 21,900.67 while the HangSeng China Enterprises Index dropped 0.62 percent to changed at 8.975.5.
Apart from the indices, Industrial & Commercial Bank of China declined 1.37 percent, followed by the slump of China Construction Bank by 1.84 percent. In addition to, the retail and mining sector declined 0.83 and 0.70 percent respectively.
Hanna Li Wai-han, a strategist at UOB Kay Hian (Hong Kong) shared that investors are cautious on Hong Kong stocks before the US Federal Reserve and Bank of Japan’s decisions on monetary policies later this week. The BOJ is set to conduct a two-day meeting on July 28-29 wherein the analyst expects the bank to add fiscal and monetary stimulus.
According to Li Wai-han, a long list of Hong Kong listed blue chips will report their latest results in coming days, affecting the market performance of the stocks.
On the other hand, the domestic sectors in Hong Kong such as the property developers managed to trade higher. Part of the list was the New World Development which advanced 0.79 percent and the Cheung Kong Property Holdings jumping 0.64 percent.
In Japan, the stocks were mainly steady with the Nikkei 225 adding 0.23 percent in the earlier session. The market weighed in the impact of the recent trading data before the market opened on Monday and the emerging impact of the BOJ meeting.
Based on reports, the trade balance surplus stood at 692.8 billion yen higher than the expected 494.8 billion yen by the analysts. The exports lost 7.4 percent on a yearly basis lower than the forecasted 11.6 percent decline. Also, the imports plummeted 18.8 percent on a annual basis a bit lower compared to the predicted 19.7 percent drop.
Angus Nicholson, a market analyst at brokerage firm IG, said ‘Markets seems to have speculatively priced in the next couple of months of potential monetary and fiscal stimulus within a few weeks.’
Following the decision of the European and the Bank of England, the BOJ is predicted of being resistant to dramatic changes in policy. The previous week, Governor Haruhiko Kuroda brushed off the idea of using helicopter economy to address the deflation and other economic concerns in Japan.
Elsewhere, the shares of Nintendo surprisingly slumped in the session despite the prominence of Pkemon Go application in the market nowadays. The Japanese multinational consumer electronics and software company lost 16.96 percent.
Separately, U.S. stocks remained strong from its gains before the week ended. The Dow Jones Industrial Average advanced 0.29 percent and the S&P 500 went up 0.46 percent. Also, the NASDAQ Composite index added 0.52 percent, as most of U.S. stocks reached their peak since March.
After the strong PMI data last Friday, the greenback extended its gains against other currencies. Koji Fukaya, resident of FPG Securities in Tokyo lauded the strong indicators and said that concerns about the U.S. economy after Brexit have receded. Add the good corporate results, and faith in the U.S. economy has recovered greatly.
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