It was a tough day for the stocks in major Asia-Pacific markets fell on September 17, as investors reacted to central bank developments. It is worth noting that, Hong Kong’s Hang Seng index led losses among the region’s major markets as it dropped 1.56% to close at 24’340.85.
Moreover, mainland Chinese stocks fell on September 17. The Shanghai Composite fell 0.41% to approximately 3’270.44 but the Shenzhen Component was above the flatline at about 13’015.19.
Also, South Korea’s Kospi index dropped 1.22% to close at 2’406.17. Interestingly, shares of LG Chem declined 6.11%. The firm made the decision to split its battery business. LG Chem expects a new corporation to be exclusively in charge of the battery business from December 1. This announcement affected the shares of LG Chem.
In Japan, the Nikkei 225 fell 0.67% to close at 23’319.37. In the meantime, the Topix index dropped 0.36% to end its trading day at 1’638.40.
Australia’s S&P/ASX 200 declined 1.22% to close at 5’883.20. According to the country’s Bureau of Statistics, seasonally adjusted employment in Australia increasing by 110,000 people between July and August. This news affected S&P/ASX 200.
Interestingly, the Straits Times index in Singapore was 0.13% lower in afternoon trade. Based on the information taken from the official data, last month non-oil domestic exports rose 7.7% year-on-year.
Stocks and risk factors
Investors are closely monitoring the situation. Members of the U.S. Federal Reserve’s policymaking committee indicated the overnight rate could stay close to zero for years to reach its 2% inflation target.
According to Fed Chairman Jerome Powell, it will be appropriate to maintain the current zero to 0.25% target range for the federal funds rate.
Interestingly, the Bank of Japan made the decision to keep monetary policy steady on Thursday. Based on the information provided by the central bank, the economy is recovering but the coronavirus pandemic continues to affect the economy in the country as well as abroad.
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