FINWIRES · TerminalLIVE
FINWIRES

Exchange Rates, Tech Caution Roil Asian Stock Markets

By

Asian stock markets churned on Monday as traders again weighed tech-sector values and monitored efforts by Tokyo and Washington to raise the Japanese yen from four-decade lows against the US dollar.

Shanghai and Tokyo finished in the red, although Hong Kong gained ground, while other regional exchanges were choppy.

Seoul's KOSPI index declined 5% on soft semiconductor issues, as traders locked in profits after Friday's near 18% rise.

In Japan, the Nikkei 225 opened lower and could not recover, finishing off 0.9% as US and Japanese government agencies stepped into dollar-yen exchange markets.

The yen traded near 157 to the US dollar, after touching 164 yen last week, triggering declines in export-related shares in Tokyo, including automakers.

The benchmark Nikkei 225 fell 607.12 to 63,754.90, as losing issues outnumbered gainers 168 to 52.

Leading the upside was Renesas Electronics, up 13.5%, while Nippon Electric Glass fell 17.5%, with both moves following earnings releases.

In economic news, Japan's final manufacturing purchasing index (PMI) logged at 54.5 in July, down from 54.8 in June, but still struck above the 50-mark that separates growth from contraction, reported S&P Global.

In Hong Kong, the Hang Seng Index opened higher and held ground, closing up 0.5% on strength in internet platform shares.

The broad gauge Hang Seng rose 124.97 to 26,009.40, although losing issues outnumbered gainers 61 to 30. The Hang Seng TECH Index gained 1% on the day, while the Mainland Properties Index rose 0.2%.

Leading the upside was Xinyi Solar, gaining 13.4%, while aluminum producer XChina Hongqio declined 6.4%.

On the mainland, the Shanghai Composite fell 0.9% to 3,809.66.

In economic news, the RatingDog China manufacturing PMI declined to 50.9 in July from 51.7 in June, reported S&P Global.

On the other regional exchanges, the Taiwan TWSE rose 0.6%; the Australian ASX 200 advanced 0.5%; the Singapore Straits Times Index fell 0.3%, and the Thai Set declined 0.1%. In late trading in Mumbai, the Sensex was up 0.8%.

The MSCI All Country Asia Pacific Index fell 0.6% on the day.

Related Articles

International

India's RBI Swap Facility Draws $40.8 Billion in Forex Inflows

India attracted $40.8 billion in foreign currency inflows under the Reserve Bank of India's concessional swap facility as of July 31, according to a Reserve Bank of India release on Friday.The inflows included $36.7 billion in FCNR(B) deposits, $2.6 billion in overseas foreign currency borrowings, and $1.5 billion in external commercial borrowings.The central bank launched the swap facility in June to encourage fresh inflows of foreign currency.

^BSENifty 50
International

Decreasing Diesel Prices Help Keep New Zealand Construction Cost Growth in Check, QV Says

A drop in diesel prices helped keep construction cost growth in check in New Zealand in July, QV said in a report on Monday.Diesel prices fell sharply month over month in July, declining nearly 21%, helping to reduce costs in fuel-intensive areas of construction work. Excavation, which fell 4.5%, saw the largest average reduction in both June and July."Diesel has fallen from June to July, and that saving has flowed through to some of the trades most exposed to fuel costs," QV CostBuilder spokesperson Martin Bisset said, adding that overall costs remained broadly stable.Concrete blockwork prices increased 0.8%, while concrete rose 0.9%, the report said. Expanded polystyrene sheet was up 9.3%, aquatherm pipework by 7.5%, and copper pipework by 4%.

^NZ50
International

New Zealand Property Values Continue Subdued Trend With 0.3% Fall in July, Cotality Says

New Zealand's home value index fell 0.3% in July following a decline of the same magnitude in the previous month, continuing a subdued trend observed during the first six months of the year, Cotality said in an Aug. 1 report.The national median property value of NZ$804,303 in July was down by 1% from three months ago and down 0.7% from a year earlier, according to the report.Values remain nearly 18% below their January 2022 peak, but 16% above the pre-pandemic level from March 2020, Cotality said."Property sales volumes have inched lower so far this year, although they're still at a relatively normal level," said Cotality NZ Chief Property Economist Kelvin Davidson. "But the stock of listings remains elevated and this is giving buyers the balance of power when it comes to pricing.""Mortgage rates haven't moved much in recent weeks, but the likelihood is that some rises are on the cards again in the short term," Davidson added.The report pointed to broad-based falls in values across Auckland's sub-markets in July, with Rodney and Papakura posting relatively modest drops of 0.2% and Franklin dipping by 0.3%. But in the country's other four main areas, there was a uniform drop of 0.6% in July.

^NZ50