Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Asia markets mostly rise, China inflation at 5 year low

A woman going past the Yen and dollar logo/AFP

A woman going past the Yen and dollar logo/AFP

HONG KONG, October 15- Asian markets rose Wednesday, with bargain hunters providing some lift after recent losses while data showing Chinese inflation at a five year low raised hopes for fresh economy boosting measures from Beijing.

US stocks came off a three day sell down to provide a positive lead thanks to some solid earnings reports, while the euro continued to struggle following another batch of soft German data.

Tokyo rallied 0.92 percent after five days of losses and helped by a weaker yen, with the Nikkei adding 137.01 points to 15,073.52.

Sydney gained 0.73 percent, or 38.2 points, to close at 5,245.6 with mining companies leading the charge on the back of stronger commodity prices.

Shanghai reversed initial losses to end 0.60 percent higher, adding 14.20 percent to 2,373.67 while in the afternoon Hong Kong was up 0.75 percent.

However, Seoul lost 0.17 percent, or 3.34 points, to close at 1,925.91 as the Bank of Korea cut interest rates for the second time in three months and lowered its 2014 growth estimate for the country’s economy.

A slew of weak figures out of China, Japan and the eurozone have fanned worries about the global outlook and sent investors running for the door in recent weeks, despite the US economy showing healthy growth.

On Wednesday, Beijing said inflation in September eased to 1.6 percent — its lowest since January 2010 — from 2.0 percent in August, indicating deflationary risks are rising in the world’s number two economy.

The government also said the producer price index (PPI) — a measure of costs for goods at the factory gate and a leading indicator of the trend for CPI — fell 1.8 percent year on year. The last PPI increase was in January 2012, when it rose 0.7 percent.

– German data knocks confidence –

However, while the report is the latest suggesting problems in the Chinese economy, traders bet it will put pressure on the government to act to boost the economy.

Advertisement. Scroll to continue reading.

“As China’s deflation risk rises, policy makers should take pre-emptive measures to reduce interest rates in the real economy,” HSBC economist Ma Xiaoping said, according to Dow Jones Newswires.

“Deflation is not happening now, but the risk is obviously rising. Policy makers should do more.”

Confidence has also been given a knock from disappointing figures out of Germany, including on factory orders, industrial production, and foreign trade. On Tuesday, a closely watched index of investor sentiment fell for the 10th straight month, to its lowest level since November 2012.

The news weighed on the euro, which bought $1.2652 in Tokyo, against $1.2659 in New York and well down from the 1.2700 earlier Tuesday in Asia. However, it rose to 135.83 yen from 135.62 yen.

The dollar was at 107.40 yen, up from 107.13 yen in New York.

New York’s three main indexes ended broadly higher following sold earnings from the likes of Citigroup, Wells Fargo and Johnson & Johnson.

The S&P 500 gained 0.16 percent and the Nasdaq climbed 0.32 percent, but the Dow edged down 0.04 percent.

World oil prices picked up after plummeting on Tuesday, although they are still down around a fifth from their 2014 highs. US benchmark West Texas Intermediate for November delivery was up 20 cents at $82.04 a barrel in mid-morning trade, and Brent crude climbed 31 cents to $85.35.

Gold was at $1,225.61 an ounce against $1,233.25 late Tuesday.

Advertisement. Scroll to continue reading.

In other markets:

— Taipei fell 1.29 percent, or 112.88 points, to 8,655.51.

Hon Hai shed 2.6 percent to Tw$93.5 while Taiwan Semiconductor Manufacturing Co. rose 0.41 percent to Tw$121.5.

— Wellington rose 0.33 percent, or 16.98 points, to 5,162.87.

Fletcher Building was up 1.4 percent at NZ$8.69 and Trade Me added 0.56 percent to NZ$3.60.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...