Most of the stocks in the Asian market was seen closing in red for the third day in row on Friday , while Japan’s consumer prices advanced beyond expectation for the first time since April last year . China has announced the new rules which are expected to reduce excess factory capacity.
However, the decline of the ongoing earning season, have raised concerns from investors as they worry the Japanese stocks will weigh down.
The Japanese yen advanced, adding pressure on the stock in Japan as the two usually reversely correlate.
The Japanese benchmark Nikkei 225 declined 2.97%, closing at 14,129.98.91, while the Tokyo’s broader Topix gauge dropped 2.9%, closing at 1,167.06.
The Hong Kong Hang Seng traded flat, with a minor rise of 0.10% to 21,926.41. The Chinese mainland Shanghai composite declined further by 0.26% to 2,015.72.
South Korean Kospi edged up 0.06% higher to 1,910.81 on Friday, while the Australian S&P/ASX 200 index advanced 0.13% to 5,042.00.
Japan’s Consumer Price index (CPI) for the month of June ,showed an upbeat result for the first time since April last year , with a rise in prices since mid-2011.
The core CPI rose by 0.4% in June, according to the Statistics Bureau in Tokyo. While the figures exceeded predictions of an increase of 0.3% for the month of June. However, current figures are still below the 2% target made by the Bank of Japan (BoJ).
“Japan is gradually shifting to inflation from deflation,” Japan’s Finance Minister Taro Aso said confidently following the readings that “CPI data shows the overall trend is improving little by little.”
While in China , investors continues to worry about the Chinese economy , as the Chinese Ministry of Industry and Information Technology ordered more than 1,400 companies in 19 industries to decrease their excess capacity by September this year .
On Thursday, the preliminary Purchasing Managers Index indicted that the Chinese factories are trapped with contraction due to the fall in the contraction territory in July.
The Chinese leadership announced on Wednesday, that the railway development project along with a reform is aimed to improve the business for small companies and reduce fees for exporters.
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