Stocks Update: Asian and Australian Stocks

Asian Stocks Advances Higher, Contrary To the Falling Australian Stocks

Asian stocks have been on a predominantly higher rise this Tuesday as investors are in the waits for the Reserve Bank of Australia Policy meeting which can put rates in an unchanged disposition. On the other hand, Australian stocks dwindle down as for the central bank’s interest rate remained untouched.

Hong Kong’s Hang Seng Index added 0.5% while Singapore’s Strait Times increased 1.6% on trending oil price. Japan’s Nikkei 225 index edged up around 0.2 percent to 17,074.27, reaching a high in three months, and established on last week’s 3.5% raise which leaves South Korea’s Kospi remaining unchanged at 2,060.53. On mainland China the CSI 300 composite received a 0.49% gain to 3,336.09. S&P 500 mini futures climbed up at 0.06%

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Australia’s S&P/ASX 200 fell 0.3% as a respective compliance to Reserve Bank of Australia’s decision to maintain rates at 1.5%. The RBA alleviated policies regarding monetary issues in the past months specifically May and August.  “Lower inflation than policymakers had previously forecast and continued global growth among the bank’s reasoning.” RBA Governor Glenn Stevens justified. The RBA is on the waiting line for a move through the economy before claiming a stimulus, if needed.

Japan on the other hand showed potential and readiness to ease monetary policies as stated by Bank of Japan Governor Haruhiko Kuroda stated in a speech he conducted last Monday.  As mentioned above, Nikkei stock index rose 0.2 percent, with the dollar gaining 0.1% to 103.52 yen, after withdrawing 0.6 percent on Monday. “The central bank’s negative rates may hurt confidence in Japan’s banking system, a sign that the central bank is becoming more mindful of the rising cost of its stimulus” he noted.

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Makoto Noji, senior strategist at SMBC Nikko Securities said “For those who had believed in a Kuroda who stresses only the benefits of easing, the speech would have been disappointing, To be sure, he is unlikely to change his policy framework given that he was preaching the benefit of stimulus. Yet many market players might have felt that the costs are likely to outweigh the benefits in the future.”

BOJ is taking a closer look at its ultra-lax monetary easing which has the essentials from central bank’s policy rate, a factor that drove it to a negative state.

In the Philippines, the cancelled meeting between US President, Barack Obama and Philippine’s president, Rodrigo Duterte affected the county’s stock as it fell to 0.6%. The tension between the two allies might affect the future stocks in the coming years.

In other countries, India’s stocks flourished higher as the market worked up of the much weaker U.S. jobs report.

In conclusion, stocks could move up sooner in the future as investors are in a look out at the three-day summit of the Association of Southeast Asian Nations which is to be held in Laos today.

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