Asian Stocks Mixed On Firm Yen

By HY Markets Forex Blog

Asian stocks closed mixed on Tuesday, with stocks dragged down by the yen firming on the ongoing heated tension in Syria, after the US hinted a possible need for military action against the country’s government over the alleged use of chemical weapons in their attacks. The Chinese mainland Shanghai composite closed higher with the help of the industry data released and the Shanghai free-trade zone news.

Equities in Asia followed Monday’s gains on Wall Street as stocks were seen trading higher, which were followed by losses after the US Secretary of State hinted a possible military intervention against the Syrian government over the alleged chemical weapons attack.

 

Asian Stocks – Japan Down On Strong Yen

Japan’s benchmark Nikkei 225 declined 0.69% to 13,542.37 points but picked up gains for a while. The Nikkei 225 index weighed on the firm yen which edged 0.38% higher at ¥98.12 at the time of writing.

The Strong yen hurts the nation’s exporters and reduces the overseas income of Japanese companies. Tokyo Electric Power rose the highest during the session, gaining 12.3%, rebounding from previous losses. While shares from the infamous Fukuschina Daiichi nuclear power plant declined 27% over the past six sessions.

Real estate developer Tokyo Tatemono dropped the lowest as it closed with 43% lower. While Toyota Motor declined 0.8%, Isuzu Motors retreated 2%, while tire manufacturers Yokohama Rubber lost 3.6% on the firm yen.

Tokyo’s broader Topix index dropped 0.51% to 1,134.17.

 

Asian Stocks – Abe’s Tax Comments

The Prime Minister Shinzo Abe discussed about the proposed tax rise on Monday, with a plan to increase sales tax from 5% to 8% from April next year. Abe suggested the government should consider reducing corporate taxes and raise the consumption tax.

During Abe’s visit to Africa and the Middle East, Abe said his main goals were to recover the economic growth and overcoming deflation.

In the trading session in China, stocks were seen mixed with the Hong Kong’s Hang Seng rebounding 0.59% to 21,874.77 points, while the mainland Shanghai advanced 0.34% to 2103.57 point, assisted by the news regarding a planned free-trade zone.

Earlier today, the world’s second biggest economy released some better-than-expected macroeconomic figures, as the Chinese National Bureau of Statistics posted industrial profits and firms in China edged up 11.6% in July from previous record of 6.3% in June.

 

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