Asian Markets are finally turning around after posting losses for a few consecutive days last week. The Australian and Indian currencies both fell against the dollar due to statements from their central banks.
321Articles - Jul. 31, 2013 - HONG KONG -- Japan´s Nikkei Average is up 1.5%, breaking a four day losing streak that brought the average to a 30 day low. South Korea´s Kospi finished up almost 1% and the Shanghai Composite posted a minimal gain of 0.7% as did the Hang Seng in Hong Kong with a gain of 0.5%.
The S&P /ASX 200 in Australia were down in morning trading, but finished the day with a negligible gain. Their currency dropped against the dollar after a speech from the Governor of The Reserve Bank of Australia. The Governor touched on a wide range of topics including; low levels of business confidence and the problems associated with the conclusion of the mining boom. He also hinted that last week´s weak inflation report will lead to more interest rate cuts; which could happen as soon as next week at the central bank´s August meeting.
Indian Markets fell after a statement from the Reserve Bank of India said that it would leave its interest rate policy unchanged. They also said that they would reduce measures to support the Rupee once the foreign exchange markets become stable. India´s growth forecast was also downgraded from 5.7% to 5.5% for the year ending March 31st. Our analysts interpret this hold on policy rates to mean that the RBI is concerned about high levels of stress in the local foreign currency markets caused by the depreciation of the Rupee.
The weakening of the yen has led to some notable gains by exporters; Isuzu Motors Ltd rose 4.9%, Kobe Steal Ltd. climbed nearly 7%, while Sony Corp. gained 2.9% before the release of its earnings report on Thursday.
The Chinese property market is finally rebounding, driving the rest of the equity markets. Gemdale Corp. gain 3%, while Poly Real Estate Group Co. was up nearly 2%.
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Asian Markets Bouncing Back Across the Region