Shares of Hyundai and Kia slipped deeply after the “huge” provisioning
Asia’s major stock indexes sank in the morning session of October 20 when investors responded quietly to China’s move to keep the basic lending interest rate unchanged.
|Mainland Chinese stocks were quiet in the morning session on October 20. Photo: AFP|
After the “red floor” trading day at the beginning of the week, mainland China ‘s stocks this morning, October 20, had mixed fluctuations when the country announced to keep the basic lending interest rate unchanged. The Shanghai Composite Index dropped 0.13% while the Shenzhen Component lost 0.433%. On the Hong Kong market, the Hang Seng Index fluctuated insignificantly around 24,520.34.
China this morning announced basic lending rates for 1 year and 5 year terms will not change. This move is as expected of most trade experts and analysts with Reuters earlier. Currently, the basic lending rate for 1-year term in China is 3.85%, while the 5-year basic lending rate is still at 4.65%.
In Japan, the Nikkei 225 index fell 0.34% while the Topix index slid 0.44%. On the Korean market, the Kospi index fell deeper with 0.56%. Shares of the world’s second largest memory chip supplier SK Hynix (South Korea) fell 1.5% this morning after the company announced the acquisition of this business segment of “giant” Intel for 9 billion. USD, according to Reuters.
Shares of two leading Korean auto products, Hyundai and Kia, slipped 4.46% and 3.85%, respectively. Previously, the two automakers warned that the provision for handling engine quality problems could reach $ 2.9 billion, according to Reuters.
Red also surrounded the Australian stock market with the S & P / ASX 200 down 0.33%. The MSCI Asia-Pacific Index (excluding Japan) slipped 0.25%.
On the currency markets, the US dollar index against other major currencies slipped from 93.6 to 93,404. Yen weakened and converted 105.53 JPY / USD, compared to 105.4 JPY / USD set yesterday, while the Australian dollar also slipped to 1 AUD / 0.7043 USD, from 1 AUD / 0 , 71 USD yesterday.
Oil prices on the Asian market fell this morning. Brent crude oil futures for delivery slid 0.68% to $ 42.33 / barrel, while the US crude futures price fell 0.6% to $ 40.57 / barrel.