On Thursday, the major Asian indices showed a decline. Shanghai Composite dropped 0.5% to 3522.58, Shenzhen Composite lost 0.86% and totaled at 2453.88, Hang Seng Index slipped 1.48% and reached the level of 25313.5. The South Korean index KOSPI slumped 0.51% to 3131.48, Japanese Nikkei 225 gained modestly 0.03% and climbed at 27734. Australian S&P/ASX 200 showed a 0.6% downside and held the level of 7485.7.
Such market behavior can be explained by several reasons. Firstly, investors are anticipating the upcoming symposium held at Jackson Hole, where the Fed's Chair will be speaking. Market players are expecting to receive updates on timings of the QE tapering, which in turn could have an impact on the US dollar rate and the growth of the US stock market.
Investors are awaiting the Chinese government reforms concerning high-tech sector and the impact these reforms will have on companies.
South Korea became the first country in the Asia-Pacific region to begin a gradual withdrawal of its economic stimulus measures. It increased its policy rate by 25 basis points to 0.75%. The previous 0.5% rate has been at the lowest level for fifteen months.
