Asian Market Snapshot: Stocks Down on Weak Chinese Trade Data

Asian equities struggled throughout the region as Chinese trade data incited a loss of investor confidence. China’s imports increased by 22.7% in July, the smallest gain in 9 months, while exports rose by 38.1%. The modest import increase has caused concern over China’s domestic demand. Moreover the slowdown in Chinese imports has also sparked worry that the global recovery is moderating.

The MSCI Asia Pacific Index and MSCI Asia Apex 50 experienced losses today falling 0.1% and 1.5% respectively.

In Japan the NIKKEI 225 lost 0.2% to close at 9,551. The Bank of Japan decided to maintain their current policy stance by not changing interest rates in spite of a strengthening yen. Masaaki Shirakawa, Bank of Japan Governor, expressed that Japan’s economic recovery has not faltered due to yen appreciation, and thus no actions would be undertaken by the central bank at this time.                                                                                                                                             

Hong Kong’s Hang Seng Index was down 1.5% at closing time.

China’s Shanghai Composite Index plummeted to 2,595, registering a 2.9% loss for the day.

India’s BSE SENSEX 30 had a 0.4% slide on the day.

The Korean KRX 100 was down 0.5% at closing time.

In Australia the S&P/ASX 200 tumbled 1.2% to finish at 4,541.

Most of the region’s major currencies appreciated on the day against the dollar; however, the renminbi and yen did weaken losing 0.01% and 0.13% respectively.

The yields on 10-year sovereign bonds narrowed in Australia and Hong Kong while widening in Japan, New Zealand, India and Indonesia.

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