Asian mostly lower ahead of Kuroda speech; Nikkei down 2.26% Jul 29, 2013 Most Asian stocks traded lower Monday following some tepid Chinese data and a stronger yen ahead of a speech by Bank of Japan Governor Haruhikho Kuroda. In Asian trading Monday, Japan’s Nikkei 225 slid 2.26% as USD/JPY traded lower by more than half a percent. Earlier Monday, Japan’s Ministry of Economy Trade and Industry said that retail sales in the world’s third-largest economy rose 1.6% in June following a May increase of 0.8%. Economists expected a 1.9% increase in June. With Japan’s easing efforts already massive and real interest rates there essentially in negative territory, Kuroda is seen as having few options for weakening the yen in the near-term. After Kuroda’s speech, the Federal Reserve and European Central Bank step into the spotlight later this week. Hong Kong’s Hang Seng slipped 0.58% while the Shanghai Composite dropped 1.33% after China’s National Bureau of Statistics said Friday that profits at Chinese industrial firms rose 6.3% in June. That is a significant decrease from the 15.5% surge seen in May. Industrial profits in the world’s second-largest economy rose 11.1% in the first six months of this year compared with a growth of 12.3% in the first five months. Among the 41 industry groups surveyed in the report, 30 showed higher profits while one posted a loss. China’s current monetary policy is aimed at stimulating growth in the so-called real economy while squeezing speculative real estate investments that have inflated property values despite excess supply. Australia’s S&P/ASX 200 rose 0.1% while New Zealand’s NZSE 50 inched up 0.01%. China is the largest export market for both Australia and New Zealand. Australian stocks could be under pressure later this week if Friday’s July jobs report out of the U.S. fails to ignite animal spirits. Singapore’s Straits Times index lost 0.28% while South Korea’s Kospi fell 0.38%. S&P 500 futures dropped 0.21%.
Posted on: Mon, 29 Jul 2013 19:02:56 +0000
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