Asian Markets Eased, Japan's Trade Deficit Expanded, China Banks Hold Rates

Arjun Pandit
20 Apr, 2023
Mumbai

Markets in Asia traded mixed with a downward bias and investors digested the latest earnings releases from the companies in the region and around the world. 

China's commercial lenders kept lending rates unchanged for one-year and five-year loans, the National Bureau of Statistics reported Thursday. 

Banks left one-year lending prime rate at 3.65% for the eighth month in a row and 5-year reference rate, used for home lending, was held at 4.3%. 

Earlier in the week, the People's Bank of China left its medium-term policy rate at 2.75%.  

The Nikkei index increased 0.2% to 28,672.85, the Shanghai Composite Index fell 0.7% to 3,345.36 and the Hang Seng Index decreased 0.1% to 3,345.36. 

Markets in South Korea decreased 0.2% and the benchmark index in Australia was unchanged. 

Benchmark indexes in India attempted a rebound after three days of weak trading amid better-than-expected earnings from domestic corporations. 

In Mumbai, investors turned cautious on the worries that crude oil prices may rebound faster after a stronger-than-expected first quarter GDP rebound in China. 

India imports about 70% of its energy needs, and higher crude oil prices fuel domestic inflation. 

 

Japan's International Trade Deficit Expanded In March 

Japan reported a rise in its trade deficit for the 20th month in a row, after imports rose faster than exports, the Ministry of Finance reported Thursday. 

Trade deficit advanced to ¥754.7 billion in March from ¥464.9 billion a year ago and stretched the longest stretch of deficit since 2015. 

Imports increased 7.3% to ¥9,578.8 billion and exports increased 4.3% to ¥7,654.7 billion. 

Exports increased for the 25th month in a row and imports advanced 26th month in a row on rising commodities and energy prices. 

Higher energy prices expanded the trade deficit in the first quarter to ¥5,151.2 billion from ¥3,375.9 billion a year ago. 

If commodities and energy prices continue to remain elevated, Japan is likely to record its third annual trade deficit in a row following the shortfall of 19,971.3 billion in 2022.