Asian stocks struggle to find direction

The main Asian stock indexes struggled to find direction on the trading day of July 6 after the interest rate decision of the Central Bank of Australia.

Asian stock markets reacted mixed after the interest rate decision of the Central Bank of Australia. Photo: Shutterstock

In Japan, the Nikkei 225 index edged up 0.16% to close at 28,643.21 points, while the Topix index gained 0.28% and ended the trading day at 1,954.50 points. South Korean stocks also recorded modest gains with the Kospi index rising only 0.36% to 3,305.21 points.

In contrast, mainland China’s stock market closed lower. The Shanghai Composite Index slid 0.11% to 3,530.26, while the Shenzhen Component fell 0.347% to 14,667.65. On the Hong Kong market, the Hang Seng index fell 0.2%, as of the end of the day trading hours.

The Australian stock market also fell today after the announcement of the central bank’s interest rate decision. The S&P/ASX 200 index in Australia lost 0.73% to close at 7,261.80 points. Overall, the MSCI Asia-Pacific index (excluding Japan) still inched around 0.1%.

The Central Bank of Australia today announced its decision to keep its cash deposit rate target at 0.1%. After the announcement of this agency, the Australian dollar appreciated and changed hands at 1 AUD “eating” $ 0.7583, higher than 1 AUD / 0.752 USD yesterday.

Oil prices traded in Asian hours this afternoon rose after the news that the Organization of the Petroleum Exporting Countries (OPEC) and its allies canceled a policy meeting on July 5. Specifically, the price of US crude oil futures jumped nearly 2% to $76.65/barrel, while the price of Brent crude oil futures increased 0.31% to $77.40/barrel.

Earlier, oil prices rose to multi-year highs on Thursday, July 5, after OPEC and its allies indefinitely postponed an output policy meeting and the alliance also failed to reach an agreement. production for the period from August to the end of the year and thereafter.

Stocks of oil companies in the Asia-Pacific region benefited today after the move by OPEC and its allies. Shares of Australian energy company Beach Energy rose 1.96% while the increase of Santos shares were lower, at 0.41%.

Shares of Japanese oil company Inpex also increased by 1.78%, while shares of China Offshore Oil Corporation (CNOOC) listed in Hong Kong gained 1.56%, so far. end of day transactions.

In the currency market, the US dollar index against other strong currencies slipped to 92.04, compared with the 92.4 mark recorded at the end of last week. After falling to 110.97 JPY to 1 USD, the Japanese yen appreciated today and converted to 110.89 JPY/USD.