News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

Kospi lost in the First Week

Monday, July 23, 2012

 

Eurozone debt crisis amid rising interest rates suppressing the Kospi Spain today. Index closed down 1.8% to 236.15.

 

Investors are also awaiting the release of HSBC China PMI data tomorrow (24/07), explains the analyst. "The next market movement depends on China PMI numbers," said Bae Sung-young, an analyst at Hyundai Securities. "Blue-chip companies such as Samsung Electronics, Posco and Hyundai Motor is scheduled to be merillis Q2 earnings this week, investors chose to wait-and-see." Samsung Electronics -2.4% to KRW1, 162.000 and Hyundai Motor -1.8% to KRW219, 000. Foreign and institutional investors to sell shares to KRW200 billion.

[mynameisandhy]

News and Economic Review Zone Asia (Hong Kong)

 

Was closed due to storm, Hang Seng reopened

Tuesday, July 24, 2012

 

Hong Kong is between a decrease and an increase after the release of data showing a decline in China's factory products. In addition, the reduction is also helped by trimming the German rating by Moody's Investors Service.

 

China Railway Construction Corp Ltd, a company that builds more than half of the railway network in China since 1949 rose 1.8 percent after it signed a contract worth 20 billion yuan. China Railway Group Ltd. is China's largest construction company by assets.

 

Cnooc Ltd., the biggest oil and gas exporter in China, fell 3.5 percent after agreeing to pay U.S. $ 15.1 billion to Canada's Nexen Inc.. Hong Kong stock market this morning was delayed because of storms that strike the city.

 

Hang Seng Index rose 0.3 percent to 19104.91 in Hong Kong with almost all of the company's stock is down 49. Hang Seng China Enterprises Index rose 0.6 percent to 9322.74.

 

Since February, this week sepanjag Hang Seng down 12 percent this year due to the growing European crisis spread its wings. In addition, the slow development of the Chinese economy is also a trigger sluggish Hong Kong stock exchange.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Hong Kong pull the yuan exchange limit

Wednesday, July 25, 2012

 

De facto central bank of Hong Kong said it would loosen the yuan exchange services in the city. Anyone who is not local residents will be exchanged an unlimited amount of yuan from next month.

However, the limit of 20,000 yuan worth of currency per day remain in force for Hong Kong residents. Just so you know, Hong Kong is a place of trade yuan outside of China is the largest.

Hong Kong Association of Banks and financial regulators have been discussing about the conversion of yuan since the beginning of this year.

China's move is more generous in quota conversion yuan in Hong Kong indicates that Beijing speed up efforts to open foreign exchange controls. China seems to move faster to allow the yuan could be exchanged quite freely.

Whether this is the strategy of China to make yuan as an international currency in the foreseeable future?

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

KOSPI had jumped from a weak point

Thursday, July 26, 2012

 

South Korea Stock Exchange, which had dropped to its lowest level in seven months, managed to rebound on today's closing stock is supported by technology companies.

 

KOSPI rose 0.74 percent to close at 1782.47.

 

Investors buying cheap stocks amid fears that the European crisis is yet to find enlightenment. Meanwhile, the European Central Bank promised to find a better solution.

 

LG Electronics jumped 6.6 percent after it announced its earnings increased in the second quarter ini.Kemarin, LG announced the April-Juninya pendapata, but their company's stock actually closed down 2.1 percent. but today investors reacted to the rise of new and competing to buy the shares of LG.

 

LG to increase the company's stock with the best in the field of technology today. Hynix closed while SK is not corrected after its second-quarter earnings do not correspond to the predictions of analysts. Hynix SK income last quarter fell to three.

[mynameisandhy]

News and Economic Review Zone Asia (Hong Kong)

 

Hong Kong Shares End Up 2.02 Percent

Friday. July 27, 2012

 

Hong Kong shares ended up 2.02 percent on Friday after European Central Bank chief says it will do what it can to save the euro.

 

The benchmark Hang Seng Index added 382.17 points to end at 19274.96 with a transaction value of 43.98 billion Hong Kong dollars (5.67 billion U.S. dollars).

 

Chinese shares closed up 0.13 percent, but the overall gains are limited by economic problems, dealers said.

 

Shanghai composite stock price index (Shanghai Composite Index), which covers A and B shares, edged up 2.77 points to 2128.77 with a transaction value of 46.7 billion yuan (7.3 billion U.S. dollars).

 

Index on Thursday reached its lowest close in more than three years. The index fell 1.84 percent for the week.

[mynameisandhy]

News and Economic Review Zone Asia (Indonesia)

 

Behavior of honey, Translucent Jakarta Stock Exchange 4100

Monday, July 30, 2012 14:15 pm

 

Entering the second session of trading on Monday (7/30/2012), Jakarta Composite Stock Price Index (CSPI) strong rally to record high levels of 4119.84 which is the highest record since mid-May.

 

Index is mainly due to the appreciation of Asian regional markets dragged the shot thanks to the widespread re-emergence of expectations of further stimulus measures from the U.S. Federal Reserve and European Central Bank (ECB). Besides the strong corporate earnings reports from a number of major Asian indexes, also gave support to the market.

 

End the first session, the Jakarta Composite Index rose 14.167 points (0.35%) to the level of 4098.379. But ultimately strengthening JCI hampered by the inevstor profit-taking, and the index was again below the level stabilized around 4100. The rise in the Indonesia Stock Exchange trading volume of transactions backed by 2.953 million lots of shares, valued at Rp2, 1 trillion and the frequency of 56 521 times. A total of 115 stocks down, 104 up and 94 did not change.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

Kospi Maintain Performance

Tuesday, July 31, 2012

 

Kospi went into the strengthening of the fourth session, the index rose 2.1% and closed at its highest closing level since June 21 at 250.15. Shares of banking, construction and strengthening the rule of technology stocks on the trading floor.

 

Foreign investors buy up stocks on a large scale until KRW606.8 billion. Some analysts worry that market expectations are too high can lead to greater disappointment. "A positive factor that could keep the market gain is the solution to the problem of the European crisis," the report Dewoo Securities. "Pending a clearer trend, the market made ​​a sale and purchase when prices fluctuate.

 

Some stocks are performing nicely among other things, Samsung Electronics +2.7% to KRW1.309 million, the highest price since May 15 at the level KRW1.311 million due to strong earnings outlook. Shinhan Financial +2.1% to KRW36, 200 due to bargain-hunting. After the market closed, Shinhan reported Q2 net profit down 34.6% per year.

[mynameisandhy]

News and Economic Review Zone Asia (Indonesia)

 

Inflation Data Support Domestic currency appreciation

Wednesday, August 1, 2012

 

The weakening of the dollar value of the United States (U.S.) and the positive inflation data in July 2012, a positive sentiment for dollars. As a result, the rupiah strengthened success today. Asian markets seem to wait and see today awaiting a decision by the Fed and the ECB. As a result, tracked the dollar seemed depressed over other currencies.

 

Investors await the Fed decision to the possibility announcement of quantitative easing (QE3) tomorrow. Investors are also awaiting the results of the meeting the EU's central bank (ECB) August 2 tomorrow against the possibility of lower ECB interest rates and government bond purchase plans directly from the ECB in the primary market.

 

However, the positive rate of consumer price index (CPI) or inflation in July was in the range of 0.70 percent assessed lower than the initial estimate contributed to encourage the strengthening of rupiah. Calendar year inflation 2.05 percent, and the year on year (yoy) 4.56 percent.

 

As for the core inflation rate in July, was in the range of 0.54 percent, and for the yoy core inflation in the range of 4.28 percent. Rupiah exchange rate, in late trading on Wednesday (1/8) rose to U.S. $ 9468 per USD over the same period the previous year to Rp 9485. According to Bloomberg, the rupiah at Rp 9443.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

The focus was on the ECB, the KOSPI rose

Thursday, August 2, 2012

 

 

South Korean bourse flat this afternoon as investors shift focus to the European Central Bank policy meeting today. Investors seemed disappointed with the decision of the Fed meeting yesterday which did not continue the quantitative easingya.

 

KOSPI up 0.08 percent at 1881.46. Investors have speculated that the European Central Bank will loosen its policy in the near future. The speculation came after Mario Draghi last week said it would do anything to protect the euro zone.

 

Rising oil prices make oil-producing company's stock rose dramatically. GS Holdings jumped 4.5 percent. S-Oil rose 2.8 percent.

 

Korea Gas Corp. (KOGAS) rose 3.4 percent after a local media said the government-owned company has discovered gas reserves of 230 million tons in their mines in Mozambique.

 

Samsung Electronics had dropped 1.5 percent, slipping from its highest range in the last two and a half months kemairn achieved. In four days, Samsung Electronics has rallied 13 percent.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Nikkei fell, Bearish Bias

Friday, August 3, 2012

 

Just before the close of the market, Japan's Nikkei index was observed to weaken the trading day Friday (03/08) because investors respond to Wall Street that closed slumped with disappointment to the European central bank meeting.

 

The weakening of the Japanese stock market is also driven from the statements of financial performance of Sharp Corp and Sony Corp are not good. Nikkei stock index fell more than 1.4% to 8513.20 and the lowest recorded 8505 (futures).

 

As stocks fell, among others, Sony Corp. shares fell 8% after reporting mengewakan performance and cut profit targets. Sharp Corp shares tumbled 24% after cutting outlook. While Toshiba Corp. shares slumped 3.8%, and Nomura Holdings Inc. shares fell 1.8% after Japan's financial regulators will crack down on insider trading case report.

[mynameisandhy]

News and Economic Review Asia Zone

 

Hong Kong Exchanges Rise; Index Above 20 000

Monday, August 6, 2012

 

Hong Kong stock market index surged on Monday to start the new week with optimism related gains last week of U.S. jobs data lifted sentiment in global markets, helping the Hang Seng Index return level 20,000. The benchmark index rose 2.1% to 20,071.01, with 47 of 49 constituencies are increased, while the Hang Seng China Enterprises Index up 1.9% to 9,847.65.

 

Shares of heavyweight HSBC Holdings PLC rose 3.4%, while China Coal Energy Co. rose 3.3%, Esprit Holdings Ltd. surged 4.1% and Sino Land Co. rose 3.6%. China Shanghai Composite Index rose 0.1% to 2,133.088 in a varied trade amid economic uncertainty, as investors continued to wait for monetary easing.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Playground Business Objectives

Tuesday, August 7, 2012

 

After Disney and News Corp., now turn DreamWorks plans to build a large vehicle in China.

 

DreamWorks Animation SKG (DWA) to establish cooperation with partners from China to establish a theme park in Shanghai in 2016. Total investment in the project amounted to 20 billion yuan ($ 3.14 billion).

 

DreamWorks collaboration and consortium consisting of China Media Capital, Shanghai Media Group and Shanghai Alliance Investment Ltd. will also cooperate in the production of the film 'Kung Fu Panda 3' in the same year. "China is the right place to develop the animation industry," said Jeffrey Katzenberg, CEO of DreamWorks. Increase in box office revenue figures in China show how much investor interest in China's industry. No exception to the construction of a playground that has always been the object of domestic visits masyarakay Asia.

 

The starting point of the expansion of American companies in the entertainment world China occurred when Walt Disney (DIS) released a plan to build Shanghai Disneyland last year. Value of the project at that time about 24.5 billion yuan plus the cost of construction of support facilities such as hotels worth 4.5 billion yuan. In May, News Corp. (NWSA) also agreed to buy the stock distributor from China, Bona Film Group. Playground Dream Center will be located in Xuhui district, which was remembered locations could be his Broadway Asia.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

The Japanese Yen intervention Wide Open

Wednesday, August 8, 2012 20:05 PM

 

Intervention to limit the chances of strengthening Japanese Yen on the rise, especially the BoJ and the Japanese government seems ready to take action separately to boost the pace of Japan's economic recovery.

 

Predicates are attached to the safe-haven Japanese yen currency for this is still a major cause of the strengthening of the Japanese Yen, especially since the global financial crisis began five years ago plus the euro zone sovereign debt crisis is deepening and spreading to other areas.

 

Global sentiment and investor confidence in the ability of Europe and ECB officials to address this issue, which triggers the transition portfolio into safe haven currencies like the Yen.

 

Moreover, U.S. monetary policy of keeping interest rates low for a longer period, contributed to the reason the Japanese Yen currency appreciation.

 

The second factor is too dominant, causing Tokyo is difficult to resist the flow of capital in the Japanese Yen.

 

Ahead of Japan's monetary policy meeting, there are expectations for fiscal reform in Japan, which went well, where this would add to the interest of investors on the prospects of the Japanese Yen. Therefore, if the yen is continuing to strengthen again, it is likely that the BoJ was forced to intervene.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

After the BoJ policy, the yen weakened against the dollar

Thursday, August 9, 2012

 

The U.S. dollar strengthened slightly against the yen on Thursday session, after the Bank of Japan suspended the easing of monetary policy, as market sentiment was supported by the ongoing expectations of easing measures by global central banks.

 

At the latest meeting of the determination of policy, the BoJ will maintain funds to purchase assets of 45 trillion yen and loan facilities amounting to 25 trillion yen. Japan's central bank is also still maintains its benchmark interest rate near zero, as has been previously thought.

 

Responding to the decree, BOJ Governor Masaaki Shirakawa said the board can not be forced to increase the stimulus except the yen exchange rate is increased.

 

Smeentara in the U.S., an official of the Federal Reserve continues to maintain hope for intervention by the central bank said in earlier this week that the Fed should start an aggressive program of bond purchases to help the economy to decline in the unemployment rate.

 

The U.S. dollar level on a touch monitored session level reached 78.57 against the yen during early European trading, then consolidated to a level of 78.51, up 0.11%. Yen also noted the decline against the euro, down 0.08%, to hit 97.05.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Sold out! Panic Selling action for Nikkei

Friday, August 10, 2012

 

At the end of this week (Friday, 10/08) seems to move world markets varied but in general the market movement today is more lax when compared with previous sessions.

 

Unlike the exchange market or in major currencies are likely to still strong, the majority of Asian bourses suffered a correction due to market participants seem to take action amid panic selling attitude 'wait and see' while waiting for new instructions next to take a position in the market.

 

In Tokyo - Japan, the Nikkei index had decreased by 0.92% or -82.42 points to 8896.18 level by some losses due to depressed earnings in the performance of the issuer. In the first session of commerce, Olympus Corp. shares slumped 3.1% after the company reported a loss more than tripled on a quarterly basis and said it was seeking partners to help shore up its finances.

 

Similarly, Trend Micro Inc., which fell by 9.8% after the company's technology services reported second-quarter earnings. In the banking sector, a major Japanese bank in terms of assets, Mitsubishi UFJ Financial Group Inc. fell 1.3% after a report that one of its employees is assumed to manipulate LIBOR. Another correction is Yahoo Japan Inc., which fell 1.9%, and Softbank Corp, which eroded 1.3%.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Trade Data Disappointing Aussie

Monday, August 13, 2012

 

The Australian dollar was thrown from the highest level in more than 4-months after the release of Chinese data on Friday showed export growth is much worse than expected, adding to signs the economic slowdown in the second largest in the world. Bamboo curtain country exports only grew 1% in July from a year ago, after posting growth of 11.3% in June.

 

"China Report has been the underlying fragility of the economic prospects for Asia at the moment," said Jonathan Cavenagh, an analyst at Westpac Banking Corp. in Singapore. "This makes I'm very careful with the Australian dollar at current levels, which may still be showing bias reduction."

 

However, the weakening currency often called Aussie is seen limited after the Reserve Bank of Australia raised its national growth following the decision to keep interest rates unchanged on Tuesday.

 

Average GDP growth in the range of 3.75% for the year 2012, much stronger than previously forecast 3%, based on the RBA's quarterly monetary policy report released on Friday. The central bank report also highlights the risk of further currency gains that may provide barriers to the economy.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Lynch-BoA cuts China's GDP

Tuesday, August 14, 2012

 

Bank of America-Merrill Lynch cut its 2012 annual GDP growth for China to 7.7% from a revised 8.0% growth in Q3 and Q4 fell to 7.4% and 7.7% per year from 8.0% and 8.3% respectively. These revisions are the result of the decline is easing in China is limited, while policy makers have been increasingly sensitive to the recovery in house prices in the middle of a transition of leadership, and the deteriorating growth prospects in developed countries.

 

The organization also cut its 2013 GDP growth forecast for China to 7.6% from 8.0% because of slowing growth potential in the country, falling new home start, and slow growth in developed countries. He expects GDP growth will recover slightly in Q4 of 2012, but fell back again in 2013.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

PM China: Economic Pressure Will Still Continues

Wednesday, August 15, 2012

 

Prime Minister of China, Wen Jiabao, said that the country's economy to "temporarily" will continue to face pressure as the continuation of current economic problems, according to a government radio broadcast on Wednesday.

 

However, if the fundamental Jiabao remained confident China's economy will still grow positively.

 

China has the ability to meet the target of "social development" this year, according to state radio news quoted the PM China. Government of China has set an official target of Gross Domestic Product growth of 7.5% for 2012.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Wen: China's Economic Growth Positive Signal Finding

Thursday, August 16, 2012

 

Chinese Premier Wen Jiabao said inflation eased to allow more room to adjust monetary policy to the emergence of positive signs in the economy, confidence is expressed by an increase in July after data showed a decline.

 

 

"We have the conditions and capabilities, and be sure to meet economic targets and social development this year," said Wen during a two-day tour of inspection in order to eastern Zhejiang province, was reported by the official Xinhua News Agency yesterday. He said the pressure on the economy remains "relatively large," according to a report from the government radio and television, he said there is "room to grow for the operation of monetary policy." This comment can be increased speculation that China will cut its "reserve requirements" or bank interest rates after inflation slowed to the lowest point in 30-month in July.

 

"Policymakers are making strategy clear in recent weeks that economic growth is central to their attention," said Qinwei Wang, an economist at Capital Economics Ltd. in London, said in an e-mail. "We continue to think that more policy support will be announced soon, including further cuts to the required reserve ratio, and many infrastructure projects proposed by local governments will be given the green light." Wang is a former employee of the People's Bank of China, according to the profile on the website at Capital Economics'.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Nikkei rally a second day

Friday, August 17, 2012

 

Japanese stocks rose ahead of a permit to build a second day after the U.S. reached its highest level in four years and after German Chancellor Angela Merkel reiterated its commitment to cooperate with the European Central Bank.

Nikkei 225 mid-day record gain of 0.6% to 9149.94 in Tokyo and close its weekly gain of 2.9%. Volume of trade is still the same as the average 30 day, although many investors Obon holiday. The broader Topix index gained 0.5% to 762.61.

Shares of Honda Motor Co.. car manufacturers who are its largest markets in North America rose 1.7%. Nippon Sheet Glass Co.. glass manufacturers that 40% of its sales in Europe rose 1.8%. Yamaha Motor Co. The second largest motorcycle manufacturer Jepagn jumped 4.6% after its debt rating raised by Credit Suisse Group. Tokyo Steel Manufacturing Co.. rose 3.9%.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Automotive Industry sales will drop by 20%

Monday, August 20, 2012

 

Toyota Motor Corp. and Honda Motor Corp. is proper to thank the Japanese government for his help against the Japanese auto industry sales, compared to other markets where else this year, especially when such assistance is to give the signal will be discontinued.

 

 

Japanese auto sales, which had climbed as much as 53% in 7 months, would fall by 20% while the aid will be discontinued in the next quarter, said analysts at BNP Paribas SA and HIS Automotive. Toyota is considering to launch a version of the Prius Hybrid is more expensive to maintain demand, while Nissan Motor Co. has said it would offer assistance to its dealers.

[mynameisandhy]

News and Economic Review Zone Asia

 

Risk Appetite Domination Asian stocks

Tuesday, August 21, 2012

 

Entering the second day this week (Tuesday, 21/08), most Asian stock markets traded higher because investors are still many who are interested in entering the market (enter market) as the 'risk appetite' still clung them.

 

Some appreciation of Asian stocks today came after U.S. stocks closed flat on general early this morning, as many investors who hold their action minutes ahead of the U.S. Federal Reserve will release this week.

 

South Korea's Kospi index rose 0.47% to a record level of 1955.40, while the Hang Seng Index - Hong Kong down 0.13%, at 20078.89 and China's Shanghai Composite Index rose 0.2%. While in Japan, the main index Nikkei fell 0.18% to the level of 9187.73 and the Nikkei futures fell (-0.16%) to a level of 9180.

 

In Japan, the company led the decline heavyweight machine. Hitachi Construction Machinery Co. shares fell 3% and Komatsu Ltd. lost 2.8% after SMBC Nikko Securities cut its rating on both companies to neutral from outperform, in part because of the decline in sales in China.

[mynameisandhy]

News and Economic Review Zone Asia

 

Correction! Asian stocks in Terpa 'profit-taking'

Wednesday, August 22, 2012

 

Almost all the bourses in the Asia experienced a correction in the trading day on Wednesday (22/08) due to contracting profit-taking on Wall Street overnight and weighed down by a weak Japanese trade figures.

 

U.S. stocks closed lower on Tuesday, mainly due to investor profit-taking in the technology sector stocks, following a recent rally that took the S & P 500 to its highest level in four years at the beginning of the session.

 

Investor selloff originated from Apple Inc. reports. and Samsung Electronics Co., which failed to resolve a patent dispute that could potentially costly to the sale of products. Shares of Apple Inc. finally closed slumped 1.4% to U.S. $ 656.06. Besides Dell Inc. technology stocks. to suffer huge losses due to it is cutting the earnings outlook for the full year.

 

In Japan, the main Nikkei index had fallen to 0.5%, South Korea's Kospi index lost 0.4%. While the Hang Seng index fell 0.8% and the Shanghai Composite Index lost 0.2% gain as much. The Nikkei slid after Japan's trade economic data appear disappointing. Japan's exports plummeted by -8.1 percent in July from a year earlier at -2.3 percent rate.

 

Japan's export slump bodes ill for the fragile economy is now heavily dependent on overseas demand. Correction in the market today has previously been unpredictable due to market level was in the range saturated. And the market becomes very temperamental and sensitive to the slightest information.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Rally Asia 'Tripped' China Manufacturing

Thursday, August 23, 2012

 

In the trading session on Thursday afternoon (23/08), the Asian market rally faltered again and could falter as investors were surprised by the data manfaktur China PMI released by HSBC with numbers again disappointing.

 

China's PMI of manufacturing activity fell to 47.8 in August from 49.3 the previous month's figure. The decline of these figures shows a signal that the continuous slowdown in economic growth has been an outbreak of getting in in the third quarter.

 

And slowing growth and demand in China, which is derived from the eurozone economic downturn, also helped drag the export demand from Japan, South Korea and Taiwan, so that this condition can threaten derail their recovery process.

 

Nikkei - Japan recorded rallied 0.19% to a level of 9149.35 or gained as much as 17.61 points. Meanwhile, South Korea's Kospi stock jumped 0.2% or +3.75 points to 1938.87. Meanwhile, Hong Kong's Hang Seng index shot or grabbing a 0.91% gain of +180.94 points at 20068.72 level.

 

In Japan, due to the strengthening of the yen after the Fed meeting, a number of stocks on the Nikkei experience a correction. Hitachi shares tumbled 1.3%, Pioneer Corp. shares fell 5.4%, Mitsubishi Motors Corp. fell 1.3%, and shares of Panasonic Corp fell 1.2%. Meanwhile, shares of Sharp Corp. fell sharply participate as much as 3.9% after NHK said the company's cash and funding shortfalls are expected to immediately get additional loan of U.S. $ 2.56 billion.

[mynameisandhy]

Bad Rattles Japan on Fundamental

Friday, August 24, 2012

 

Japan Tokyo stocks bounced back on the issue after concerns over an economic slowdown at the beginning of the session (Friday, 24/08) appeared a version Reuters monthly poll that showed manufacturing sentiment of Japan (Tankan) got worse in August and is estimated to increase thin in the coming months.

 

Still warm in the ears of investors, Wednesday (22/08) surprised the market by economic data that appears disappointing Japanese trade. Japan's exports plummeted by -8.1 percent in July from a year earlier at -2.3 percent rate. Japan's export slump bodes ill for the fragile economy is now heavily dependent on overseas demand.

 

At the same time, the government also released the July trade deficit figures are more swollen than expected mainly due to the export numbers had fallen sharply amid Europe's debt crisis and the fragility of global economic growth. Japan recorded a trade deficit of ¥ 517.4 billion in ($ 653 billion) in July, after a surplus of Y60.3 billion in June, according to data released by the Ministry of Finance.

 

The bad deficit figures are likely to add to pressure on the Bank of Japan (BOJ) to take further easing measures to support the domestic economy. While Tankan DI index calculated by registered Reruters increasingly falls to the level of the previous month -4 -2. The decline of the sentiment at the expected result of the European debt crisis and a protracted global economic slowdown and a sharp strengthening of the yen that has take a toll on the Japanese economy which relies on exports.

 

Not only from the domestic, external factors helped increase the anxiety of the economic recovery is increasingly eroded after yesterday (Thursday, 23/08) manufacturing survey eurozone and China also gave a bleak picture of the economic outlook.

 

Activity-HSBC China manufacturing PMI in August slumped 47.8 points from the previous 49.3, while the euro area manufacturing was at 45.3. The two results of those releases that are under level 50, indicating that manufacturing activity and plant shrinkage.