Forex Marketz Daily Forex News – Fully Markets Update
Asian stock markets were mixed this morning, with markets in China rising on stronger-than-expected PMI data. Both the Reserve Bank of Australia (RBA) and Bank of Japan concluded their monetary policy meetings, as well. They left policy and rates the same. No changes.
The Australian headline stock bourse, he ASX 200 was down 0.6 percent this morning. The energy sub-index fell 0.92 percent and the heavily weighted financials fell nearly one percent on the day.
The Reserve Bank of Australia announced they would leave their headline cash lending rate at the record low of 1.5 percent. There is mixed labor numbers as well as higher-than-expected housing numbers. They also feel the Australian Dollar remains too high as they transition their economy from a raw materials exporter.
In Japan, the Nikkei 225, their headline stock market, was slightly lower after the Bank of Japan also stood pat on monetary policy and rates. They made no change to their quantitative easing program, as well.
Inflation, or lack of, Weighs on the BOJ
Japan’s central bank, the BOJ, held rates at -0.1 percent and their rate of bond purchases steady. They also cut their core consumer inflation numbers for 2016 from 1.7 to 1.6 percent. Inflation growth remains a thorn in the side of Japanese policy makers.
In South Korea, the Kospi Composite Index was flat. It recovered from earlier losses thanks to a political crisis involving President Park Geun-hye weighed heavily on sentiment. State prosecutors are investigating Choi Soon-sil, a friend of the Korean President, for influencing state affairs. They also allege he had access to classified material and even benefited financially from his friendship with the nations president.
It is very important, right now, that investors recognize that South Korea has some economic challenges ahead and this political episode does not help. These challenges include restructuring of shipping, tightening of their real estate market as well as weak exports.
