ASX and Nikkei have mixed results as Lunar New Year festivities carry on
- Asian Market
- 5 months ago
Not all Asian indices were closed on a day when most countries are celebrating the Lunar New Year, it certainly did not stop the governor of Australia’s central bank, Philip Lowe to quote that it would be “appropriate” to raise rates due to a rising unemployment and rising inflation targets not being met.
The ASX 200 bounced back to 1.1%.
Earlier in the week, the Aussie central bank kept interest rates at a record low figure of 1.5%, however has downgraded its growth forecast for the country to 3% from an original 3.5%.
DBS Group Research strategists Philip Wee and Duncan Tan commented that, “In adopting a more evenly balanced stance, the RBA has opened the door for a rate cut if increased global risks and the weaker housing market forces more downgrades in its sanguine growth or inflation outlook.”
On that note, central banks of Philippines, India and the U.K. will have their own meetings and it is expected that rates will remain unchanged.
Meanwhile the Japan’s Nikkei 225 retreated by 0.7% based on the current U.S.-China relations which will be heading for a new round of talks next week as both U.S. Treasury Secretary Stephen Mnuchin and trade representative Robert Lightizer will be heading to Beijing.
Source: Smart Trend Team