Koyal Group reports that markets were down slightly on Monday across Asia. Japanese stocks are down as the Yen rises and in Shanghai stocks were hurt by weakening industrial profits.
Tokyo, Japan -- (SBWIRE) -- 09/03/2013 -- Japan´s Nikkei stock average fell more than 3% today is finishing at its lowest level since June 27th, while the Shanghai Composite also dipped 1.7%. Both indices have fallen for three consecutive sessions. We attribute the weakness of Japanese stocks to the recent strengthening of the yen hurting exports.
In Tokyo this week, a number of major Japanese corporations will be releasing quarterly earnings reports and updating their forecasts including; Softbank Corp., Honda Motor Co., Toyota Motor Corp., and Sony. We expect net income to boom as much as 75% for international firms, and 30% for nationals as the new economic reforms have caused the yen to deflate 20% over the last year. For this period the US dollar gained 25% against the yen while the Euro has risen more than 33% against the currency. Deflating the Yen makes Japanese companies more competitive in global markets. The US dollar´s recent slip against the yen is in our opinion the major cause of yesterday´s drop of the NIKKEI.
Other markets in the region posted similar results, Both South Korea´s KOSPI and Hong Kong´s Hang Seng fell half a point. While Australia´s S&P/ASX 200 posted a negotiable gain. The Chinese National Bureau of Statistics released a report stating that industrial profits had risen 6% in June as compared with the previous year, but have slowed when compared with the 15% rise in profits reported for May. Beijing has also requested the Chinese National Audit Office to conduct an immediate review of public debt. The slowing down of profits is in line with the boarder picture of the slowing momentum of the Chinese economy. In our opinion, if the numbers worsen it may prompt policy action by the government to reach the 7.5% growth target.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)