The RBA Decision Hits Australian Banks

It was an eventful day for stock markets throughout Asia. AUS200 was hit by a wave of sellers following the RBA announcement that it was leaving rates unchanged. The index flew through 4250 and closed around 4246.

The decision by the RBA hit the banking sector hard, with the sector loosing around 1.10%. NAB was the hardest hit amongst the four largest Australian banks because the company had previously stated that it would pass on a rate cut, but since it did not eventuate the bank sank by around 3.97%.

In Japan, the equity market closed around 0.13% lower on the back of mixed earnings reports. Japan Tobacco Inc. jumped around 5.7%, after the world’s second largest cigarette maker raised its annual profit forecast, but HTC Corp. fell by around 6.4% following the company revising its growth forecast for the first quarter.

After the market close, Glencore International Plc and Xstrata Plc announced that they have agreed on an all-share merger of equals, which could lead to a mega-company worth around $90 billion.

 

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