Singapore experienced a decline in Asian equities on Tuesday, with the focus on China’s efforts to stabilize its post-pandemic economy. Traders also awaited the outcome of the Reserve Bank of Australia’s policy meeting. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.75 percent to 511.14, moving away from Monday’s peak of 515.37. China shares had a strong day on Monday due to new measures aimed at boosting the economy. However, China’s blue-chip CSI 300 Index fell 0.40 percent on Tuesday, while Hong Kong’s Hang Seng Index slipped 0.88 percent. A private-sector survey revealed that China’s services activity expanded at the slowest pace in eight months, indicating ongoing weakness in demand. Market strategist Charu Chanana states that China’s recent measures are essentially a relaxation of over-regulation, rather than true stimulus actions. The hope is that these actions will be enough to stabilize the Chinese economy. Market focus also turns to China’s largest private property developer, Country Garden, which faces a deadline for making interest payments on two U.S. dollar bonds. Australia’s S&P/ASX 200 index fell 0.62 percent ahead of the Reserve Bank of Australia’s policy decision. Economists predict that the RBA will hold interest rates steady, but expect a final hike before the end of the year. The Australian dollar weakened by 0.11 percent to $0.645. The U.S. markets were closed on Monday, resulting in light trading volume. However, several Federal Reserve officials are scheduled to speak during the week. The latest data showed that U.S. job growth increased in August, but the unemployment rate also rose. This further supports expectations that the Fed is done hiking rates. Market predictions show a 93 percent chance of the Fed leaving rates unchanged this month and a 60 percent chance of no more hikes this year. European Central Bank President Christine Lagarde stressed the importance of central banks keeping inflation expectations anchored. The dollar index fell 0.019 percent, with the euro down 0.03 percent to $1.0791. The Japanese yen weakened 0.03 percent to 146.53 per dollar. In commodities, U.S. crude rose 0.41 percent to $85.90 per barrel, while Brent was at $88.95, down 0.06 percent.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
