Asian Markets mostly Mixed to Start the Week

The Asian and Pacific Rim equity and financial markets were mostly mixed and in the red to start the week off. The Bank of China left its monetary policy and interest rates alone today.

Asian traders are watching the United States and the alarming, nearly out of control, spread of the Covid-19 pandemic that could threaten economic recovery and induce another major shutdown.

In Japan, the Nikkei 225 reversed early gains to shed 0.42 percent by mid-morning hours. The broader Topix index lost 0.43 percent.

In South Korea, the Kospi composite index fell 0.68 percent and elsewhere in the Asian and Pacific Rim, the Australian ASX 200 fell nearly half a percent.

Asian Traders Digest Japanese Economic Data

Japan released June import and export data. Exports, for the month shed 26.2 percent, on an annual basis. This was well below analyst expectations that called for a contraction of 24.9 percent.

Japanese imports also fell. The June number lost 16.8 percent for the month.

In Hong Kong, the Hang Seng index, by mid-morning, was down one percent. The city has tightened restrictions after a spike in new Covid-19 cases. Hong Kong’s leader Carrie Lam said that the virus situation is “very serious and there is no sign of it coming under control.”

Peoples’ Bank of China keeps Rates as is for the Month

The Peoples’ Bank of China (PBOC), China’s central bank, left their headline five year loan prime rate unchanged. The central bank is watching the economic recovery before making any more decisions.

Economic data, from last week, showed that their economy is continuing to recover from the coronavirus lockdown. Their economy grew 3.2 percent in the second quarter, which was above the 2.5 percent the financial markets had expected.

The mainland Chinese markets were higher by mid-morning. The Shanghai composite rose 0.66 percent and the smaller Shenzhen composite gained 0.7 percent. The Shenzhen component lost ground. This bourse shed 0.3 percent.