Global equity markets worldwide were broadly higher over the week ended May 29, 2015, with the MSCI AC World index increasing by 0.14 per cent. While the US and Japan managed to post minute gains of 0.82 and 1.05 per cent respectively for the week, European equities were unable to follow in the same direction as they lost 0.82 per cent.
Other regional markets also ended the week with losses, with emerging markets shedding 1.57 per cent and Asia ex Japan equities posting a loss of 0.62 per cent.
Amongst the various emerging markets, the worst performers for the week were the Brazilian and Russian equity markets, which posted losses of 4.74 and 6.26 per cent respectively.
Malaysia and Korean equities also performed poorly, with respective declines of 2.24 and 1.59 per cent over the week respectively.
While most markets declined over the week, some managed to avoid posting negative returns such as the Taiwan and Indian equity markets which managed to post gains of 1.1 and 0.89 per cent respectively.
Southeast Asia: Thai exports drop less than expected
Over in Southeast Asia, Thailand’s customs exports fell less than expected in April, decreasing by 1.7 per cent year-on-year (y-o-y), outperforming the consensus forecasts of a 3.3 per cent y-o-y decrease and the prior 4.45 per cent y-o-y decrease. The decline in exports was mainly due to the contraction in the exports of agricultural goods, with April’s data showing a 3.9 per cent y-o-y contraction.
Within the exports segment, the export of rubber was down by 25.9 per cent y-o-y after a prior 27.9 per cent contraction, marking its sixteenth consecutive month of contraction since January 2014. Customs imports decreased by 6.84 per cent y-o-y, coming in lower than the consensus forecasts of 6.80 per cent and the previous month’s reading of 5.89 per cent. Consequently, the customs trade balance dipped into negative territory, posting a deficit of US$523 million. In the release of April’s data, Somkiat Triratpan of the Thai Commerce Ministry has added that “export growth in the second quarter should rebound to show positive expansion”.
Being a relatively export-driven economy, exports growth remains critical for the kingdom’s economic growth and a gradual recovery of exports should provide some support for the nation’s economy going forward.
East Asia: Taiwan’s industrial production misses estimates
In Taiwan, industrial production rose 1.06 per cent y-o-y in April, lower than the 4.5 per cent expected. The headline number was mainly dragged down by the manufacturing sector, the biggest component, which only rose by 1.15 per cent on a y-o-y basis.
Computer, electrical parts and components, as well as optical products manufacturing saw a contraction in output, which also contributed to the weak data reading.
Sluggish industrial production implies a lack in external demand, factor that might lead to slower economic growth in Taiwan, with the Ministry of Economic Affairs remaining cautious on the outlook.
To read more about activities in the market, log on to www.fundsupermart.com