The three major US stock indices plunged sharply last night (5 Aug) as market concerns over possible US recession heated up, anticipating that America may need to cut interest rates sharply. JPY exchange rates retreated from a seven-month high and fell about 0.8% in the Asian session, with USD/JPY adding to 145.34 and 100JPY/HKD trading at 5.358. The Reserve Bank of Australia (RBA) kept the cash rate unchanged at 4.35%, in line with street consensus.
The Bank of Japan issued a notice that officials from the Ministry of Finance, the Bank of Japan and the Financial Services Agency will hold a meeting at 3 pm Tokyo time (4 pm Hong Kong time) today (6 Aug) to discuss international market issues.
Major Asia-Pacific stock markets generally rebounded this morning after last day's crash, with the Nikkei recovering by nearly 11%.
CNY and CNH exchange rates have each retreated from about seven-month highs. The Shanghai and Shenzhen A-share markets narrowed their gains this morning after opening higher in following of external markets, with SHCI recovering slightly by 1 point to 2,861, while SZCI rebounded by 42 points or 0.5% to 8,437. In Hong Kong, HSI opened 162 points higher, then fell slightly to as low as 16,680, before stabilising, rising 77 points or less than 0.5% to 16,775 at midday.
The Taiwan Capitalization Weighted Stock Index (TAIEX) crashed more than 1,800 points or 8% yesterday, and also retreated slightly after this morning's high open. TAIEX then hiked 920 points or 4.6% to a high of 20,751, and is now resurging 722 points or 3.6% to 20,553. TSMC soared 8% to NT$880, while Hon Hai lifted 1.2%.
South Korea's KOSPI rebounded 5.6% to a high of 2,578 this morning after an 8.8% plunge last day, and is now up 4.3% at 2,547.
In Japan, Nikkei evaporated 4,451 points or 12.4% yesterday for the biggest drop in history in point terms. The index opened 618 points higher at 32,077 this morning, and rocketed 3,453 points or nearly 11% in the early morning market, peaking at 34,911. It then readjusted and is now soaring 2,725 points or 8.7% to 34,183 in the afternoon session. A circuit breaker (trading curb) for Nikkei futures was triggered in the early morning due to the sharp surge.
Malaysia's KLCI recovered 2% to 1,567, while Indonesia's IDX, India's SENSEX and Vietnam's VNI rose 0.9% to 1.1%, as the Philippines' PSEI, Thailand's SET and Australia's ASX 200 inclined 0.4% to 0.6%.
Singapore's STI, which crumpled more than 4% last day, rebounded 0.9% and is now down 0.7% at 3,221, while New Zealand's NZX 50 is down 0.3% at 12,224.
AAStocks Financial News