SINGAPORE – Asia-Pacific equities traded mixed on Monday, as investors watched Turkish lira movements following a sudden uprising at the country’s central bank.
In Japan, the Nikkei 225 fell 1.62% in afternoon trading, while the Topix index fell 0.71%. Kospi in South Korea advanced 0.26%.
Elsewhere, mainland Chinese markets rose by the afternoon, the Shanghai composite rose 0.9%, while the Shenzhen component gained 0.71%. Hong Kong’s Hang Seng Index fell 0.18%.
Meanwhile, shares in Australia were higher, with the S & P / ASX 200 up 0.74%.
The broadest MSCI index of Asia-Pacific equities rose 0.31%.
The pound suddenly loses weight
Investors followed the Turkish lira on Monday, with the currency weakening by more than 12% to 8.1162 against the green dollar, compared to levels below 7.5 per dollar observed last week. Earlier, the pound had weakened to the dollar against 8.1745.
The sudden move came after the country’s central bank saw another riot, with President Recep Tayyip Erdogan abruptly replacing his boss just days after a sharp rise in interest rates.
The one-year primary loan rate (LPR) and the five-year LPR remained unchanged on Monday, at 3.85% and 4.65%, respectively. This was in line with the expectations of most traders and analysts in a Reuters poll.
Moving stocks
As part of corporate developments, the Japanese shares of chip maker Renesas Electronics fell by about 4% in Monday afternoon transactions. The company announced over the weekend that it would take at least a month to restart production at a plant that was damaged by fire on Friday. This development has taken place as the world is already facing a global shortage of chips.
Japan’s carmakers, among firms plagued by chip shortages, also fell in trade on Monday. Toyota fell 2.61%, Nissan fell 2.9% and Honda fell 3.31%.
Meanwhile, trading in Capitaland shares in Singapore was suspended on Monday. The firm has announced a restructuring proposal that would include a strengthening of its investment management and accommodation management platforms in CapitaLand Investment Management, which is to be listed on the Singapore Exchange.
Coins and oil
The US dollar index, which tracks the dollar against a basket of its colleagues, was at 92,004 after the recent recovery from levels below 91.5.
The Japanese yen traded at 108.74 per dollar, stronger than levels above 109.2 against the green dollar seen last week. The Australian dollar changed hands at $ 0.7729, lower than the levels above $ 0.78 seen last week.
Oil prices were lower on Monday, during trading hours in Asia, with international references to Brent crude futures falling 0.5% to $ 64.21 per barrel. US crude futures fell 0.34% to $ 61.21 a barrel.