News and Reviews Asian Economic Zone

News and Economic Review Zone Asia (China)

Decline in the value of China's exports in May, Import Value Also Down

Monday, June 8, 2015

The value of China's exports fell for the third consecutive month and imports declined for the seventh month, underlining the weakness of external demand and slowing domestic environment.

Total shipments abroad fell by 2.8% from a year ago in the value of the yuan, reported by the customs in Beijing on Monday. These results are compared with the median estimate for a decline of 4% in a Bloomberg survey of analysts. The value of imports fell by 18.1%, leaving a trade surplus of 366.8 billion yuan ($ 59.1 billion).

Slowing trade coincided with a decline in investment given the risks to the growth target of Prime Minister Li Keqiang to a target of about 7%. In response, officials have loosened monetary policy and manipulate the swap debt for local governments so that they can still finance infrastructure projects.

Analysts from one broker in Hong Kong, said before the data was released that support the policy continued to increase during the last month. We expect the authorities will maintain pelonggarannya attitude, with infrastructure and monetary easing at the forefront of their policy efforts.

News and Economic Review Zone Asia (China)

China Wants Veto in AIIB

Tuesday, June 9th, 2015

China's move to form a savings and loan institutions Asian Infrastructure Investment Bank (AIIB) welcomed by other countries. Seeing the positive response, the Chinese government wants to further establish itself as the founder AIIB with veto power.

According to the Wall Street Journal today, China will make the structure of the board of directors in AIIB so very simple. The aim is to give veto option for government in making decisions that are considered large. The mechanism, China will have the largest stake in AIIB and their representatives have the right to veto in key policies.

In accordance with the guidelines agreed by 57 countries last month founders, board of directors AIIB will oversee the operations of the institution without being paid, or different from the World Bank and the Asian Development Bank. Headquarters will be based in Beijing with English as an official language in any communication. AIIB more flexible open filing of a development project to anyone, not like the ADB, which only gives kotrak projects to member states.

News and Economic Review Zone Asia (Japan)

Sato BOJ warns QQE Side Effects

Wednesday, June 10, 2015

Bank policy board member Takehiro Sato of Japan on Wednesday warned about the reduced positive impacts and potential disadvantages of maintaining a massive stimulus program the central bank for too long, such as delaying the government's efforts to improve Japan's financial sector. Steady progress in restoring Japan's fiscal health is crucial to the success of quantitative and qualitative easing (QQE) of the BOJ, including the withdrawal of its asset purchase program in large numbers smoothly, said Sato. He also said that when market participants have been worried about Japan's fiscal discipline, to control long-term interest rates will become increasingly difficult for the BOJ.

Carry the largest public debt in the industrialized world and defer sales tax increase last year, the government will design the fiscal plan this month to reach its ambitious targets to bring the primary budget into surplus through fiscal year 2020. Sato acknowledges that the bond purchase program by the BOJ to have an impact on the fiscal plan da government warned of the potential loss of QQE, among others, the bond market liquidity drain. He said that the BOJ may be facing difficulties to buy government bonds in line with the current rate of financial institutions running out of bonds to be sold to the central bank

News and Economic Review Zone Asia (China)

Home Sales in China Up 5.1% In January to May 2015

Thursday, June 11, 2015

Home sales in China in the period of the last five months of this year rose by 5.1% at an annual rate, a reversal from the 2.2% decline recorded in the first four months due to the low cost of borrowing and loose mortgage requirements that trigger home buyers back into the market.

According to a report from China's statistics bureau on Thursday showed that home sales in the period from January to May totaled 2:07 trillion yuan ($ 333 billion). For in the month of May alone, home sales rose 30% from a year ago, was shown in the calculation of The Wall Street Journal.

Last month, the central bank benchmark interest uku trim for the third time in six months, helped trigger demand for demand in major cities of China. Central and local governments also launched measures more accommodating to boost home sales.

In addition, the value of property investments rose 5.1% to 3:23 trillion yuan in the first five months of this year, down moderately from 6.0% growth in the first four-month period. Investment property includes land purchase and other investments of developers.

News and Economic Review Zone Asia (South Korea)

South Korea Committed Maintaining Monetary Policy "Expansive"

Monday, June 15, 2015

South Korea's Ministry of Finance pledged to keep monetary policy "expansionary" although outbreaks continue to threaten the economy Mers, following the release of trade data showing a sharp drop in exports and imports in May.

In front of the Parliament, the Ministry of Finance said it would maintain expansionary macroeconomic policies ayng to strengthen the country's economic recovery.

Reported exports plunged 10.9% from a year earlier as imports tumbled 15.4%, based on the revised data released by the customs office on Monday. Those numbers do not experience many changes compared to the initial publication.

As is known, the current South Korea was hit by the plague Middle East Respiratory Syndrome. The latest report of the Ministry of Health South Korea showed at least 150 cases have been identified so far, with 16 people listed had died from the plague that began in May found that

News and Economic Review Zone Asia (Japan)

BOJ Kuroda: I'm Not Trying To Affect Foreign Exchange Yen

Tuesday, June 16th, 2015

Bank of Japan Governor Haruhiko Kuroda said that he did not try to influence the exchange rate of the yen in a statement last week that sent the currency rise against the dollar.

Kuroda said last week during a parliamentary session that the yen "is unlikely to weaken further in the effective real time." On this day he says that the real effective rate, which measures the yen in considering the trade, whose value is adjusted for inflation, are not indicators of bilateral exchange rates. He also said on Tuesday that he did not intend to say that he was not looking for a weaker yen.

BOJ Governor's statement last week felt by some analysts to reduce the possibility of further monetary easing, because Japan further stimulus would normally weaken the yen. They also consider it as an unusual thing for policy makers usually limit their assessment of the exchange rate to give a comment on the rate of change, not the value.

Although the presence of clarification on this day, the yen is still more powerful than before comments Kuroda. There have been signs that the Japanese authorities are not happy with the pace of decline in the yen against the dollar in recent weeks, sebelulum governor spoke at the Diet on Wednesday. Economy minister on June 9, has said that the move "suddenly" is not good, and the finance minister has seen the movement of "rough" on the currency.

News and Economic Review Zone Asia (Japan)

Japan Export Value Below Estimates Rise of May

Wednesday, June 17, 2015

The value of Japanese exports rose at the slowest pace in May since the decline in August last year, dampen the recovery in the country with the third largest economy in the world.

Value of shipments abroad rose by 2.4% from a year ago, according to a report from the finance ministry on Wednesday, was below estimates for a gain of 3%. The volume of exports fell for the first time since February, down 3.8%.

Decline in exports could weigh on industrial production for the manufacturing trying to reduce inventory replenishment that helps encourage faster economic expansion in the last quarter. Slowing growth in China, Japan's largest trading partner, has undermined demand, according to one analyst Toru Suehiro of Mizuho Securities Co.

One analyst of the bank in Tokyo said that the increase in exports was weaker than expected, it reflects the slow pace of the global recovery. Bank of Japan will continue to monitor the downside risks seksasa on this.

The value of Japanese exports to China rose 1.1%, it was the smallest increase since a decline in February, while the volume of shipments fell 4.5%. The volume of exports to the US fell 6.7%, this is the biggest drop since March 2013, with auto parts shipments fell 15.6%.

News and Economic Review Zone Asia (China)

China's Foreign Direct Investment Value Up 7.8% In May

Thursday, June 18, 2015

China managed to attract inflow of $ 9.33 billion of foreign direct investment in May, an increase of 7.8% from a year ago, reported by the Ministry of Commerce on Thursday.

The figure was down from April, which reached $ 9.61 billion, which is 10.5% higher than a year ago.

Total foreign investment langung the period from January to May rose by 10.5% to $ 53.8 billion.

Total non-financial foreign direct investment rose 47.4% at an annual rate in the first five months of this year to $ 45.41 billion, according to data from the ministry.

News and Economic Review Zone Asia (Japan)

Keep BOJ Stimulus Monetary Base 80 Trillion Yen Per Year

Friday, June 19th, 2015

Bank of Japan kept monetary stimulus them on his record as Governor Haruhiko Kuroda seeks to spur inflation and announced plans to increase transparency.

The central bank will continue to expand the monetary base at an annual rate in the rate of 80 trillion yen ($ 650 billion), they said in a statement on Friday, the result is in line with all the forecasts of 35 economists surveyed by Bloomberg. BOJ will Raise the frequency of reporting their economic outlook and the release assessment of each of the board members, this policy will begin next year.

The decline of exports is the latest risk to the economic recovery slowed in which analysts see in the current quarter amid the company tried to reduce the amount of inventory is high. At the time of Kuroda said this week that inflation is still on track for the target BOJ and he appeared to backtrack from earlier statements that have put the brakes on a weaker yen, economists today are looking for more clarity in a press conference today.

Analyst from one of the banks in the United States say that this is not for the BOJ to add stimulus. Data on consumer spending is still diverse and exports are also not too strong, but the overall outlook for the BOJ to maintain economic recovery.

News and Economic Review Zone Asia (Japan)

Kuroda: Weakening Yen Not Reduce Flexibility BOJ Policy

Monday, June 22, 2015

A decline in the yen exchange rate does not reduce the flexibility of the Bank of Japan, according to BOJ Governor Haruhiko Kuroda after BOJ maintains its stimulus program. After triggering the sharpest rally in the yen this year on June 10 last, Kuroda on Friday said that he could not say whether the strengthening or weakening of the yen which would have a positive impact for Japan. He reiterated that the inflation rate is still on track towards the central bank's target of 2% in the first half of the next fiscal year, even after the index inflation rate was the focus BOJ fell to zero in April. Analysts said the slow rate of export growth as risks to economic recovery, along with the increase in supply in the warehouse.

Kuroda mengatkaan that so far weakening yen will not be an obstacle to the flexibility of monetary policy. Monetary policy only targets price stability, he added. The central bank will continue to increase the monetary base at an annual pace of 80 trillion yen (650 billion dollars), according to the BOJ statement on Friday, according economists' estimates. According to one economist, it is too early for the BOJ to add stimulus. The data rate of consumer spending mix and level of exports is not so strong, but overall the BOJ to maintain its view of the recovery, the economist added.

News and Economic Review Zone Asia (China)

Initial reading of Chinese Manufacturing Show Increased in June

Tuesday, June 23, 2015

The preliminary reading of China's manufacturing purchasing managers' index from HSBC, which measures manufacturing activity nationwide, rose to 49.6 in June from a final reading of 49.2 in May, reported by HSBC Holdings PLC on Tuesday.

The reading is still below the 50 level, which separates expansion from contraction.

A preliminary reading of the manufacturing PMI was in "the scope of the data which was mixed in June," as the output and the purchasing activity showed signs of improvement, while manufacturing continued to reduce their employees, with the biggest reduction in more than six years in June, reported by Annabel Fiddes, an economist at Markit which presents data in a statement.

He said that this shows that the company relative to expectations of weak growth due to demand conditions both inside and outside the country are still relatively sluggish.

He added that data showed the manufacturing sector has lost momentum of growth in the quarter kedia and Beijing may need to "increase their efforts to stimulate growth and job creation in the second half of this year.

Figures from a preliminary reading of the PMI, which is also called the HSBC Flash China PMI, is based on 85% to 90% of total responses to HSBC's PMI survey each month and released about a week before the final PMI reading.

News and Economic Review Zone Asia (Japan)

Approaching the BoJ Optimistic Inflation 2% in First Half 2016

Wednesday, June 24, 2015

The release of the minutes of the monetary policy meeting the Bank of Japan in May showed a majority of board members are optimistic that inflation will accelerate and approach the target of 2% in the first half of 2015. Only one member, Takahide Kiuchi, who has a different opinion, he said inflation will not berakselesari due to salary growth and the economy is still weak.

Kiuichi also still persisted in his desire to reduce the asset purchase program, known as the monetary base to ¥ 45 trillion, from the current ¥ 80 trillion per year while the other members agreed to maintain the monetary base, which makes the amount of noise 8 to 1.

Although the majority still optimistic inflation target, but some members also said that the need to keep an eye on the weak inflation in Tokyo. BoJ also slightly revised up its outlook for the third largest economy in the world.

News and Economic Review Zone Asia (South Korea)

Balance Effect Mers, the South Korean government Add Capital Expenditure

Thursday, June 25, 2015

South Korea's Ministry of Finance, today announced the launch of a fiscal stimulus worth $ 14 billion, including the injection of extra funds to the budget heading. At the same time the authorities also lowered the economic growth forecast for 2015.

Latest fiscal stimulus package is a continuation of monetary easing after the Bank of Korea (BOK) lowered rates to a record low of 1.5% two weeks ago. Monetary easing may be necessary to offset an adverse effect on the economy of Korea Mers virus. The new stimulus is expected to raise consumer spending and export performance hoist.

In stimulus 15 trillion Won ($ 13.5 billion) extra budget funds are included which amount has not been determined. The Ministry of Finance some time ago already confirmed that capital expenditure should focus on building the business sector negatively affected by outbreaks mers and create new jobs. The country is the last time to add funds budget in 2013 and then, with a total budget eksta 17 trillion Won.

In the book its annual economic report, the government also lowered its 2015 economic growth forecast from 3.8% to only 3.1% and 3.5% for 2016. For information on the past year, the Korean economy grew 3.3%, and believed not to reach level 3% this year if not accompanied by additional capital expenditure.

The inflation rate is predicted to be at an average level of 0.7% in 2015, far below the government's 2% target and nicks version last year at 1.3%. The biggest obstacle faced by government now is the effect of the spread of the virus Mers, which has claimed 29 lives and infected more than 180 people.

News and Economic Review Zone Asia (Japan)

Japan Inflation Up 0.1% in the month of May

Friday, June 26th, 2015

Japan's core inflation rate rose for the first time in two months in May, reported by the government on Friday, the possibility of raising expectations that the Bank of Japan will maintain an attitude of any extra steps for a while.

Core consumer price index rose 0.1% from a year ago last month, after moving flat in April, the data shown by the government. The economists surveyed by The Wall Street Journal and the Nikkei estimate for a flat reading.

Other data released today also support the economy.

Figures household spending rose 4.8% in May, adjusted for price changes, this is the first rise in 14 months, the government said. The unemployment rate unchanged at 3.3% in May, while the ratio of applicants to jobs at its highest level since March 1992 at the level of 1:19. That means that 119 jobs available for every 100 workers.