News and Reviews Asian Economic Zone

Japan Quake Has Limited Impact on Asia

Monday, March 21, 2011

The recent earthquake that hit Japan is estimated to have a limited impact on financial markets neighboring Asian countries, the report showed Monday.

According to the report of Standard Chartered, rapid response to stabilize Japan's financial system after the earthquake March 11 and a relatively small investment in Asia will help other neighboring countries to reduce the impact of the likely impact of natural disasters.

Loans from Japan's banks are unlikely to be bothered either, the report said.

Step by Bank of Japan to inject large amounts of liquidity after the earthquake to help shore up the nation crippled financial system and keep the money channel is open for other Asian countries like Thailand, Malaysia and South Korea, he said.

But each country may feel the impact of natural disasters that differ from the third largest in the world economy.

Philippines may face a decline in semiconductor exports to Japan due to weak demand from countries faced with tougher economic conditions after the quake, the report showed.

Indonesia, meanwhile, can enjoy more profits by exporting raw materials needed to rebuild the affected country, he added.

Japan Economy News

Tuesday, March 22, 2011

Yen slips widely by anxiety intervention

Yen falls against the dollar for a second day on Monday, with investors wary central bank sells more to weaken the Japanese currency, although the market may test the resolve of authority 'by pushing the currency back to the level of 80 yen.

Traders said the discovery Friday is coordinated by the big banks the world center - the first such step since 2000 - has been successful to date, as the dollar stabilized around 81 yen and the volatility of the yen retreated from recent highs this.

In the near term, analysts said 80 to 80.85 region could function as a support for the dollar against the yen, and fell below could see renewed intervention by the central bank. On the upside, resistance is seen around 82 yen, a post-intervention high set on Friday.

"The market is certainly very wary about the central bank in the sidelines," said Dean Popplewell, head of currency strategy at Oanda in Toronto.

"The market was also questioned who would intervene if the yen does not begin to appreciate it, whether it will be the Bank of Japan's own or other interventions will be coordinated, but at this time., no one willing to mengujnya," he added.

Korean Economic News

South Korean Real Estate Development High prices slide

Tuesday, March 22, 2011

Secondary Development of South Korea has been overshadowed by the severe financial problems due to a prolonged slump in local housing markets, the trade ***ociation said Tuesday.

More than a quarter of the 100 local builder above, including Lig E & C Co., which is placed under court receivership or workout program on Tuesday, according to the Construction ***ociation of Korea (CAK).

The biggest reason for their cash shortage protracted downturn in the local property market which began in the 2008 financial crisis, the ***ociation.

Only 1333 new homes sold in January, accounting for 8 percent from the comparable figure last year, according to the Korea Housing ***ociation.

Also responsible for the credit crisis is the fact that they were too focused on the apartment building, unlike the top 10 local artisans who have a diversified business portfolio of engineering for industrial plants, industrial sources said.

In addition, the decline in orders from the public sector to make the financial situation of middle-builders' bleak, says CAK.

Total orders from the public sector came to ₩ 38.24 trillion (U.S. $ 34.1miliar) in 2010, down 34.6 percent from a year earlier.

The number of builders who go belly-up last year reached 306, up 26.9 percent of 241 in 2009, according to CAK

Japan Economic News

Japan Recovery Charges may Reaches $ 300 Billion

The Japanese government estimates the total amount of damage caused by the earthquake that hit northeastern Japan this month will reach 15 trillion to 25 trillion yen, equivalent to $ 185-308 billion), the Nikkei newspaper reported Wednesday.

Economy Minister Kaoru Yosano will show these estimates in a meeting menter-minister cabinet which will be held on Wednesday, the Nikkei said, without citing a source involved.

This will exceed 10 trillion yen cost of the damage caused by the earthquake in Kobe in 1995, said the newspaper.

The estimate will include the improvement of roads, housing, factories and other infrastructure but not including the fall in economic activity resulting from damage to the energy sector and the nuclear accident in Fukushima, the newspaper said it again.

The government will use these estimates to design a recovery plan and emergency budget to fund the cost of recovery, the Nikkei said.

Yen Still Surviving on Approximately 81.00

Friday, March 25, 2011

Currently, the price still at 81.03. No signal from the yen to continue to trade between 80.70 and 81.30 with a loss of direction indicators and moving average which tends to flat on its hourly chart. Graph per 4-hour also looks flat though slightly bearish, with prices still in the flat movement in the SMA-20.

"The movement continues to still be happening if the price is below the high at 81.30 as the top of the movement, despite continued consolidation seen with the market looking for direction from the fundamental side, " said Valeria Bednarik, analyst leader of FXstreet.com.

Current support level is 80.70, 80.50 and 80.25. Current resistance level is 81.30, 81.65 and 82.00.

Aussie Strong Survive Near 35 Year High

Friday, March 25, 2011

Prices are currently located at 1.0194 level. Australian Dollar is in a position mild correction after rising to a level of 1.0223 ***ociated risk appetite that occurred yesterday, near the high for 35 years in December 2010.

"overbought condition shown in the graph per hour, the movement of a bearish correction is still slightly limited by the price action to consolidate in the range of 20 pips since the mid U.S. session, " said Valeria Bednarik, analyst leader of FXstreet.com.

Current support level is 1.0160, 1.0110, 1.0070. Current resistance level is 1.0220, 1.0256, 1.0280

Hong Kong banks agree to repay Lehman investors' losses

Monday, 28 March 2011

Hong Kong banks will from WHO repay investors lost money after the collapse of investment bank Lehman Brothers.

Sixteen banks have Agreed to buy back They sold financial instruments to investors for up to 96.5% of Their Value.

More than 40.000 customers Had invested close to $ 2.5bn (? 1.6bn) in Lehman's financial products.

Lehman Brothers filed for Bankruptcy in September 2008 due to an economic slowdown and credit crunch.

The repayment of losses incurred Following the collapse has been an ongoing saga in Hong Kong.

Investors accused the banks of misleading Them with complex products, triggering a tussle Between customers, banks and Regulators.

The banks Had Previously Offered to buy back the products at 60% of Their value in 2009.

The current offer will from need to be approved by at least 75% of the WHO investors hold the products. They are expected to hold meetings to discuss the issue in the coming months.

News and Reviews Asia Economic Zone (Korea)

Manufacturing Sentiment Rising South Korea Into 2nd Quarter

Tuesday, March 29, 2011

South Korean manufacturing companies expect improved market conditions in the second quarter of 2011, despite the poverty in the first three months of this year, a government poll showed Tuesday

Ministry of Industry said the knowledge business survey index (BSI) for the period April-June reaching 115, up from 96 the actual index numbers calculated for the first quarter of this year.

The figure above 100 means pessimists than optimists. The survey was conducted on 499 national manufacturing companies with good overall condition and business-wide review.

"Despite the poorer than expected showing in the first quarter, businesses expect things to improve in the coming months thanks to solid growth in sales, domestic demand, exports and profits,"the ministry said.

According to the findings, the index for expected sales jumped to 120 from 106 estimated in the first quarter. Figures BSI domestic demand rose to 116 from 103 with figures for exports and profits reached 111 and 104, respectively.

A recent survey, in addition, shows most companies believe that there will be a better market conditions, with robust gains in semiconductor, automobile, machinery and steel, although there are more pessimists than optimists in shipbuilding.

Manufacturing companies, meanwhile, said that sluggish sales, market conditions domestically and abroad and declining profits all affected BSI rate in the first quarter.

News and Reviews Economic Zone of Asia (Japan)

Japan's TEPCO Nationalization Not to Consider

A spokesman for the woman from the Japanese government said on Tuesday (03/29) that no government entity anywhere who study the nationalization plan Tokyo Electric Power Co.. The future operator of nuclear facilities in Fukushima Daiichi problem is still unclear.

Yukio Edano said in a press conference that it (nationalization) has not been considered. Comments Edano abort news in Yomiuri newspaper that reported the possibility of nationalization of TEPCO. The report quoted government sources unnamed.

Korea's GDP 6.2%

Wednesday, March 30, 2011

Korea Q4 GDP rose 0.5%, but down 0.6% from Q3. Korea's GDP rose to 4.7% compared to Q3's 4.4%. Q4 GDP growth below the BOK estimated 4.8% in January. Korea's GDP Growth 6.2% a year, the highest rise since 2002, which rose 7.2%.

Analysts said the economic growth rate this quarter between 1% -1.5% due to bond / export and local demand, pushed inflation expectations higher. BOK Q1 growth estimate of 1.3%. Central Bank monetary policy is expected to resume this year after raising rates in January and March each 25 bps, the current interest rate to be 3:00%. The increase in interest rates to limit inflation pressures.

Inflation this year is estimated to be 3.5% compared to last year's 2.9%.

Japan's Industrial Production Up 0.4% In February

Wednesday, March 30, 2011

Japanese industrial production rose for the fourth consecutive month in February, according to government data Wednesday morning, although the index is expected to fall sharply during March due to the earthquake and tsunami last March 11.

Industrial production increased by 0.4% seasonally adjusted, the economy ministry said, beating expectations for 0.2% monthly fall, according to consensus estimates reported by Dow Jones Newswires.

These results are indeed much lower than the increase in January by 2.4%, however. A producer survey data is included with production forecast to 1.4% in March and fell 1.3% in April. Transport equipment, general machinery and chemicals are the biggest driver of the increase, the ministry said.

News and Reviews Economic Zone of Asia (China)

Chinese investment in Brazil exceed U.S. surge

Thursday, March 31, 2011

China rapidly expanded its presence in Brazil, surp***ing the United States as a giant investor and largest trading partner in South America, a report released Wednesday said.

Published ahead of a planned visit by the President of Brazil Dilma Rousseff to China next month, the report said Chinese companies have announced investments of nearly 30 billion U.S. dollars in Brazil, including 8.6 billion U.S. dollars which is currently in negotiations, AFP reported.

Energy and mining sectors account for 90 percent of that investment, the report by the Brazil-China Business Council said.

But Chinese investors have also made direct or indirect purchase of agriculture land in Brazil, especially for soybean production.

China was looking for "a base for the supply of natural resources," said the study.

Brazilian exports to China also increased rapidly, jumping from one billion dollars in 2000 to 30.7 billion U.S. dollars last year.

Export this - mainly soybeans, iron ore, oil and other commodities - to help Brazil's trade surplus estimated annual guarantee of five billion dollars with China.

Most Brazilian imports from China are manufactured products, which soared from 1.2 billion dollars in 2000 to 25.5 billion U.S. dollars in 2010.

This growth has been so explosive that China replaced the United States in 2009 as Brazil's largest trading partner. From 2009 to 2010, bilateral trade increased by 52 percent.

But "until 2009, Brazil has more investment in China more than China in Brazil," said Norton Rapesta, who heads the business promotion in the Ministry of Foreign Affairs of Brazil.

"Latin America is the last frontier that attracted great interest from China, and Brazil is a dynamic machine," said Edileuza Reis, deputy minister for Asian affairs at the Ministry of Foreign Affairs of Brazil.

Brazil hopes of economic expansion will also generate tangible benefits for Latin American nations.

When Rousseff visit to China on April 10 to 15, he will seek a greater presence of Brazilian companies in China, will ensure more Chinese investment in industrial development of Brazil and China to reduce purchases of raw materials, as well as diversification of export to China.

"We want to include products with higher added value in trade with China, but we also need to diversify our investments in China," said Reis.

News and Reviews Economics Asia (Japan)

Japan's Domestic Auto Sales Fall 37.0% in March this year

Friday, April 1, 2011 12:14

Japan's domestic sales of new cars trucks and buses fell 37.0% from a year earlier in March, such as the devastating earthquake and tsunami on March 11, disrupted production in the country for all cars and cut off the supply of vehicles to dealers.

Car sales reached 279,389 in March, the seventh-straight monthly decline, Japan Automobile Dealers ***ociation said Friday.

A large earthquake and tsunami struck the car ***embly and parts manufacturing in northeastern Japan, causing a shortage of spare parts for domestic and some foreign automakers.

Japan's top three cars all reported sharply lower sales in the month. Toyota Motor Corp. (7203.TO) sales fell 45.9% in March from a year earlier, while Nissan Motor Co. 's (7201.TO) sales fell 37.7% and Honda Motor Co.' (7267.TO) sales fell 28.3%.

Auto sales, as measured by vehicle registration with the government, which is monitored by economists, because they are the consumer spending figures released the first of each month.

News and Reviews Economics Asia (Korea)

The view of South Korean Exports to Remain Strong Into 2nd Quarter

Monday, April 4, 2011

The majority of foreign importers of South Korean exports to expect the state to remain solid in the second quarter on increased competitiveness, polls showed on Monday.

The index measures the country's export prospects in the April-June period came to 57.5, compared with 52.7 calculated for the previous quarter, according to a survey conducted by the Korea Trade-Investment Promotion Agency (KOTRA).

The reading of the second quarter marked the highest since the agency began compiling the index in the fourth quarter of 2009, he said.

The survey was conducted in 1980 foreign importers of South Korean products. Figures above 50 means more respondents believe their business conditions, or conditions for South Korean exports, will increase.

Faster than expected recovery in the U.S. and Europe will increase demand for South Korean goods, and exports to Japan hit by earthquake that is expected to rise as well, the survey showed.

The demand for Asian goods from South Korea and China are also forecast to remain high, he said.

However, disruption of production in Japan could lead to smaller than expected increase in exports, the agency said.

Recent survey, jointly conducted by KOTRA and Samsung Economic Research Institute, also showed that the price competitiveness of South Korean exports will increase in the second quarter.

The index measures the price competitiveness of South Korean exporters' comes to 53.6 in the second quarter, up 0.5 percentage points from the previous quarter.

South Korean exports record high in March despite external uncertainties such as political unrest in the Middle East and earthquakes in Japan, the trade ministry said last week.

Exports surged 30.3 percent on year to U.S. $ 48.6miliar in March, with imports rose 27.9 percent to $ 45.5miliar, he said

News and Reviews Economics Asia (Japan)

BOJ Tankan: Big Mfrs Post-Quake Apparently More Pessimistic Outlook

Monday, April 4, 2011 11:54

Japanese companies became more pessimistic about business conditions in the coming three months after the m***ive earthquake and tsunami that struck northeastern Japan on March 11, causes the nuclear crisis, according to responses to the Bank of Japan Tankan survey received after the disaster

Business conditions diffusion index for large manufacturers' for the April-June worsened to -2 compared with the results of Friday +2.

In a highly unusual move, the BOJ decided to release the index for the responses gathered after the quake. But the central bank said Monday the data should be used for "reference purposes only."

Of the 11,101 companies surveyed by the BOJ from February 24 to March 31, 23.6% of responses received after the quake, although they may have reflected the views before the earthquake.

Data released Monday show that the main index measuring sentiment among large manufacturers responses received March 12 to March 31 did not change in 6, together with management in March Tankan was released on Friday. This figure was 5 in December the previous survey.

This figure represents the percentage of companies saying business conditions are good minus bad conditions says.

Sentiment among large manufacturers of non-7, much higher than the results of Friday 3, and 1 in the December Tankan. However, the prospect of non-DI for large producers also worsened to -4 -1 versus Friday.

News and Reviews Economics Asia (Korea)

South Korean Foreign investment surge in Q1

Tuesday, April 5, 2011

Foreign direct investment (FDI) in South Korea rose 30.1 percent this year to U.S. $ 20.1miliar in the first quarter thanks to the influx of funds from developed countries, the government said Tuesday.

The increase mirrors the hope that South Korea would withdraw from a steady growth this year and improvement in the overall business environment of the country sharply, the Ministry of Knowledge Economy said.

The International Monetary Fund predicts South Korea's economy will grow 4.5 percent this year, with the World Bank put the country in 16 years where the latest "Doing Business" ranked last, rising from 19th place in 2009.

In contrast to the contraction last year, FDI from the United States skyrocketed 1068 percent in the first quarter, with investment from Japan and China jumped 40.1 percent to $ 370,000,000 and $ 103.1 per cent, 65 million.

"Investment from Japan, which has been hit by a devastating earthquake on March 11, not seriously affected because 35 percent of the total investment made ​​after a natural disaster," said Byun Jong-rip, bureau chief at the ministry of foreign investment policy.

According to the ministry, FDI in the manufacturing sector surged 20.3 percent on the year while the services sector spiked 45.7 percent.

While economic uncertainty in North Africa and Middle East countries, and destruction in Japan may be a negative impact on FDI, South Korea should be able to attract more investment in roads, the ministry said.

The government said in January that aims to attract $ 15miliar FDI this year, up from about $ 13miliar last year.

ADB: Growth weak, Beware Inflation

Wednesday, April 6, 2011

Asian Development Bank (ADB) said the region's economic growth slowed slightly and warned of challenges due to rising inflation.

ADB projects Asian economic growth will be below 8% in 2011-2012. Although this area still continues to lead the global economic recovery, led by two Asian economic giants, China and India.

Even so, the financial institution headquartered in Manila, Philippines warns of challenges due to rising inflation. "This could lead to exacerbate social differences,"the ADB, on Wednesday (6 / 4).

In the financial statements 45 developing economies who take shelter under the banner of the ADB, the growth of the region are predicted at 7.8% for 2011 and 7.7% next year. The number is certainly lower than 9% surge last year because the world economy rebound.

Japan Economy News and Reviews

Fundamental Factors Limit Nikkei Gain

Thursday, April 7, 2011

Gain foreign markets would help strengthen the Nikkei on Thursday. Japanese stocks had weakened last two sessions due to growing concern the decline of manufacturing production.

Strengthening limited Nikkei related investors who still hold themselves to hunt down the index during the rally due to uncertainty over the crisis in a nuclear power plant of Tokyo Electric Power Co.. and the drop in production. The weakening yen pushed shares of exporters which are limited due to concerns over the disruption of the supply chain. "Shares of exporters predicted to rebound after falling in the last two sessions. Strengthening shares overseas demand is expected to attract bargain-hunting," according to Hiroichi Nishi, general manager of Nikko Securities SMBC.

"But the weakening yen may not be one trigger of purchase due to concerns about manufacturing production. The weakening yen is expected to push the price of imported oil will negatively affects the market," says Nishi. The yen fell to a 11-month lows at 122.45 yen against the euro and at a low level and a half years at 85.54 against the dollar in Asian trade.

Today the Nikkei is predicted to move in the range 9.500 to 9.700 after a drop to as low as one week closing low at 9.585 the previous day. Next resistance in the range of 9.820.

Korean Economy News and Reviews

Look forward to Samsung's Kospi Earnings

Thursday, April 7, 2011

Seoul shares opened higher on Thursday following the strengthening of Wall Street, but the release of Samsung Electronics' revenue estimates limit the gains.

"Strengthening of Wall Street last night to help the market,"said Bae Sung-young, market analyst at Hyundai Securities. "The estimated revenue disappoints, shares have declined in the previous session," according to Bae. He added that the prospect of better earnings for the second quarter pushed investors' optimism. Samsung Electronics, manufacturer of memory chips and flat screen is expected to release the results of leading a declining revenue for the period January to March. This result is the first released since natural disasters struck Japan last month. Hynix, the producer of memory chips No. 2 in the world got a boost from the Philadelphia Semiconductor Index gain of 1.5%. Shares of STX Pan Ocean shipping them probably fell 2.2% in the Baltic Dry Index.

Yesterday KOSPI index closed down 0:17% at 283.40.

News and Reviews Economic Zone of Asia (Japan)

Friday, April 8, 2011 11:53

Positive Asian Stock Markets, Japan Earthquake No Negative Impact

Stock exchanges in Asia move higher at mid-session after trading opened early in the 7.4 magnitude quake-related negative in Japan overnight. Reported no significant damage due to earthquake.

Concerns related to the blackout of summer, the Tokyo Stock Exchange said it will postpone plans to extend trading hours for the purpose of reducing electric power consumption in Tokyo and prefectures north in anticipation of peak summer demand.

The Nikkei index today rose 1.57 percent to 9741.33. Topix rose 0.7 percent to 846.59.

Seoul stock market edged up lifted by rising sahampembuat Daewoo Shipbuilding & Marine vessel engineering, but rises limited to the related existence of aftershocks in Japan and the electricity crisis.

Korea Composite Stock Price Index (KOSPI) rose 0.52 percent to 2133.25. Foreign investors were buyers from ₩ 14.3 billion ($ 13.2 million) worth of stock, and ready to take the stock to go up consecutive sessions of the 18th, which will become the longest rise since October 2010.

Stock markets in the plains of China like Hong Kong and Shanghai after a positive move by the PBOC rate hike two days ago. The Hang Seng index rose 0.57 percent to 24.419. While the Shanghai Composite Index rose 0.31 percent to 3017.29. (PBUH).

Japan Machinery Orders Down 2.3%

Monday, April 11, 2011

Monexnews - Japan's core machinery orders in March fell 2.3% from February before the earthquake and tsunami hit Japan on March 11, according to Cabinet Office on Monday.

Decline of the early indicator of corporate capital investment even though Japan has not been affected by natural disasters is a negative signal for the Japanese economy. Companies should re-establish the affected facilities, but the decline in consumer confidence, the power-down and worries about the nuclear crisis in Fukushima Daiichi nuclear power plant could drag on capital expenditures, approximately 15% of the economy.

Economists surveyed by Dow Jones Newswires and Nikkei predicted a decrease of 1.1%. Orders rose 4.2% from the previous month and 1.7% in December. The data reflect the economic sentiment before the disaster. On Friday, economic observers of the government said domestic economic conditions, especially the service sector dropped to a low level of two years in March. The main index fell to 27.7 in March, its lowest level since February 2009 from 48.4 in February.

The industrial sector decreased due to power outages due to lack of electricity supply after the disaster and the nuclear crisis that hit the Fukushima Daiichi Nuclear Power Plant. The government decided to ask for large industrial electricity consumption in order to avoid limiting the lack of electricity. This leads to lack of production.

Bank of Japan governor, Masaaki Shirakawa said Monday the economy may soon recover, the supply chain will come back better. But small companies likely to be still facing some problems.

Japan Economy News and Reviews

Japan Radiation Level Potentially Lemahkan Wall Street

Tuesday, April 12, 2011

U.S. stock futures plunged again depressed by disappointing quarterly sales report from the giant aluminum company Alcoa Inc.. and Japan's decision to raise the level of the nuclear crisis to a level similar to the Chernobyl Nuclear leakage ago.

Observed DJIA stock index futures traded down -0.45% to a level of 12.263, while the S & P 500 futures fell -0.55% in the level of 1,312.25 and the NASDAQ futures fell -0.49% at 2,296.50 level.

Japanese regulators to raise the level of crisis, the country's nuclear facilities to a level 7, the highest scale of international standards but also mentioned the amount of radiation is only 10% compared to the radiation situation in the Soviet past.

Following the weakening of Asian stocks, where the Nikkei index tumbled 1.7%, European markets also fell around 1:11%. Nuclear Concerns have been dragged by worries of global stocks of nuclear crisis could spread and cause problems in the area of ​​Tokyo.

At the same time Alcoa bad earnings report yesterday, adding to negative sentiment of market participants.

Dollar Up Vs Yen As Japan Fund, Purchase By Importer

Published on 13 April 2011

Dollar rises against yen in Asian session Wednesday as Japanese pension funds and importers bought the U.S. unit amid lull in the flow of negative news about Japan's nuclear power plants.

Japanese investors snapped up by the U.S. currency after falling in the morning session up to Y83, said Tomohira Nishida, a senior dealer at Chuo Mitsui Trust and Banking

Japan Stock weakened; Landing Wall Street Minim

Thursday, April 14, 2011

In trading on the Japanese bourse this morning seemed a decline, although not too large (4.14). Japan Stock weakened although Wall Street managed to rebound after a weak thin four days in a row. Asian stocks trading in motion tends to be still sluggish today because of the lack of improvement is happening on Wall Street.

Nikkei 225 Index futures contracts in June looks to increase slightly by 25 points. Index futures position is opened at 9590 points. Nikkei index futures rose and looked likely to have experienced movement in the range 9555 - 9630 points. Nikkei spot index declined by 29.01 points (0.3%) in the position of 9612.17 points. The broader Topix index declined by 1.63 points (0.19%) in the position of 842.96 points.

Shares in Japan's stock seems to experience the movement which tends to weaken. Mitsui fell 17 yen to 1484 yen positions. Toshiba fell 5 yen to 391 yen positions. Honda rose 6 yen to 2963 yen positions. Toyota posted a weaker by 5 yen to 3285 yen positions.

Analyst Research Vibiz of Vibiz Consulting estimates that the movement of the index futures at today's trading will tend to increase despite limited. Index futures has the potential to experience movement in the range 9500 - 9650 points.

News and Reviews Economic Zone of Asia (China)

China Stock Market Up 0.1%; Be careful ahead of Data

Thursday, April 14, 2011

China stock market has increased the first session with banking stocks and steel producers led the increase, analysts said. The Shanghai Composite rose by 0.1% at 3053.29, and analysts estimate the level of resistance index will be at 3100 levels.

"Investors were cautious ahead of tomorrow's economic data releases, " said Zhou Lin, an analyst at Huatai Securities. He added that if the index is able pass through resistance at the level of 3100, then we will see further increases.

Banking stocks rose amid hopes of strong first-quarter earnings results reported by Agricultural Bank of China rose by 2.1% at the level of CNY2.96, while Shanghai Pudong Development Bank rose by 0.7% at the level of CNY15.09.

Manufacturer of steel has increased expectations that strong demand growth with the commencement of other construction projects; Inner Mongolia Baotou Steel Union rose by 2.9% at the level of CNY9.35 and Xinjiang Baby Iron & Steel rose by 1.8% at the level of CNY15.50.

Shenzhen Composite rose by 0.1% at 1287.54 level.