The leading Asian indices reported decreases despite the positive trade data from China. The country reported export growth of 14.5% yoy in July 2014. The stronger than expected result rose to 47.3 billion USD foreign trade surplus of Celestial Empire. The Japanese Nikkei 225 index dropped to its lowest level since May 30th, erasing 2.98% to 14,778.37 points.
The pressure applied strengthening of the JPY to two weeks maximum. Currency once again was jointly owned by the market as a safe haven amid the global geopolitical conflicts. However, approaching as expected, Japan’s central bank kept its monetary policy, but offered a gloomy forecast for exports and industrial production. The shares of Japan Display fell 7% after reporting a larger than expected loss for the April-June. The SoftBank capitalization fell by 3.4% on the eve of the presentation of financial results after market close.
The South Korean KOSPI fell to 2-week low, falling by 1.14% to 2,031.10 points. The pressure was applied to the shares of automakers. Hyundai Motor and Kia Motors fell by more than 1%, while Hyundai Mobis wiped 2%.
In China, the Shanghai Composite added 0.31% to 2,194.43 points thanks to upbeat data on trade in July. The support came from the companies in the banking sector. The shares of Bank of Communications and China Merchants Bank rose by 1.0% and 0.8%.
In Australia, the S&P ASX 200 ended with a new one-month bottom, extending its losses by 1.34% to 5,435.31 points. Earlier in the day Australian central bank confirmed that it will maintain low interest rates. The news came from a quarterly report submitted by the institution. The companies reported sharp declines in the mining sector. Fortescue Metals wiped 3.4% and BHP Billiton – 1,8% lower. Rio Tinto market cap rose with 0.2% after the financial report on Thursday.