06.09.202215:08 Forex Analysis & Reviews: Chinese authorities push most Asia-Pacific indicators up

The main indices of the Asia-Pacific region are trading mixed. Most of them show gains, including the Chinese Shanghai Composite and Shenzhen Composite indices, increasing by 1.11% and 0.82% respectively. The Korean KOSPI added 0.07% and the Japanese Nikkei 225 slightly jumped by 0.1%. Other indicators declined. The Hong Kong Hang Seng index fell by 0.16% and the Australian S&P/ASX 200 index lost 0.36%.

Investors show positive sentiment due to the information that the Chinese authorities intend to take measures to support the economy, affected by the previous restrictions related to COVID-19, the crisis in the real estate sector, as well as difficulties with electricity supplies.

In addition, the People's Bank of China considers lowering the reserve requirement ratio to 6% already this month. The decision follows the yuan dropping to its lowest level since 2020.

Among Chinese companies, the top losers were Zhongsheng Group HOLDINGS, Ltd., dropping by 4.9%, Alibaba Health Information Technology, Ltd., losing 4.3% as well as Nongfu Spring, Co., plunging by 2.6%.

Japan recorded a 3.4% increase in consumer spending in July. Although analysts expected a 4.2% rise.

Among the companies included in the Nikkei 225 index, Unitika, Ltd. became the top gainer and added 7.5%. At the same time, Tokyo Electric Power, Co. Holdings, Inc. decreased by 4%.

Other Japanese companies showed mixed performance. Thus, Fast Retailing was up 0.1%, while Nissan Motor dropped by 0.75%.

Among the largest South Korean companies, Samsung Electronics decreased by 0.18%, while Hyundai Motor rose by 0.25%.

The Reserve Bank of Australia decided to raise the interest rate by 0.5%, to 2.35% from 1.85%. The news was not quite encouraging for investors. This is the fourth hike in a row. In total, the rate has added 225 points or 2.25%. This is the highest increase in almost 30 years.

At the same time, Australian consumer confidence rose by 1.3% last week, logging a three-month high.

The country also recorded an increase in the current account surplus balance in April-June 2022 to A$18.3 billion against A$2.8 billion year-on-year.

Shares of the largest Australian companies declined. BHP lost 1% and Rio Tinto decreased by 1.1%.

Rio Tinto announced it reached an agreement in principle to buy the rest of Turquoise Hill Resources' shares to acquire full ownership of the company.