News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

South Korea Exports Data Being Dropped 1.8% $ 45.66 Billion

Monday, October 1, 2012

 

The level of South Korea's exports fell from a year earlier in the third consecutive month in September, government data showed on Monday, but the fall was less than the estimate for the fourth-largest economy.

 

The level of exports in September fell 1.8% per year to $ 45.66 billion, while the impir fell 6.1% per year to $ 42.51 billion, resulting in a trade surplus of $ 3.15 billion, according to data from the Ministry of Economic Affairs.

 

Contraction between the level of exports and imports are not as deep as the market forecast. Medium-term forecast of nine economists surveyed by Dow Jones Newswires had dropped as much as 5.4% to 10.8% for exports and imports with an estimated surplus of $ 2.76 billion in September.

 

In August, the level of exports dropped by 6.2% per year, while imports dropped in the revision rate per year of 9.7% with a surplus of $ 2 billion.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan: Buying Foreign Bonds is the Last Option

Tuesday, October 2, 2012

 

The government does not welcome foreign bond purchases discourse to suppress the exchange rate against the dollar.

 

Government spokesman today told the media crew that the discourse of foreign bond purchases by the Bank of Japan should be thoroughly researched. The government is very aware of the implications that can be caused by the policy.

 

"Under the law of the formation of the central bank, consideration and vigilance must be put forward," said Chief Cabinet Secretary Osamu Fujimura. Answer it came out when reporters asked whether the foreign policy of bond purchases should be included in the central bank's monetary policy component.

 

Some members of the ruling party and the opposition has repeatedly advised the foreign bond purchases to push the strengthening yen. The new economy minister, Seiji Maehara, evaluate purchases such as effective measures to prevent deflation and dashed appreciation of the domestic currency. While Fujimura said the cabinet lineup is considering various options to achieve the same goal. So far, the central bank governor, Masaaki Shirakawa, and the Minister of Finance did not seem enthusiastic response to the discourse. The government considers the purchase of bonds is the last to be selected if a new policy is needed.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Consumer Sentiment Down In September

Wednesday, October 3, 2012

 

Data China consumer sentiment fell in September for the third consecutive month, down from its lowest level since December, according to a survey released by Deutsche Boerse's MNI Wednesday. The sentiment index registered at 89.3 points, compared with 90.4 in August.

 

A sub-KOMPONENT for assessing expectations index has slightly improved, rising to 88.2 compared to 87.9 for the month of August. The report said sentiemn for the consumer to move down the housing market after an improvement in the month of August, while the outlook for stock markets rose slightly, but still at a low level.

[mynameisandhy]

News and Economic Review Zone Asia

 

ADB Crop Estimates for China, India and Other Asia

Thursday, October 4, 2012

 

Asian Development Bank on Wednesday cut its growth forecast for developing countries in Asia, emphasizes the existence of a significant slowdown in the China and India, and warned of the impact of the European debt crisis and the possibility of U.S. fiscal tightening.

 

In an update of his, ADB estimates for GDP in the developing countries of Asia to expand 6.1% in 2012, compared with a projected 6.9% in April and 6.7% in 2013, against 7.3% rate in the previous report.

 

This illustrates the substantial cuts to the two largest Asian countries: China today saw the expected growth of 7.7% this year, compared with an earlier estimate of 8.5% and 8.1% next year, to 8.7%. Estimates for India cut to 5.6% from the previous 7.0% for 2012, and to 6.7% from the previous 7.5% for 2013.

 

"The developing countries of Asia must adapt to grow in moderate growth, and countries must begin to abandon their reliance on exports, re-balancing growth resources, and increase productivity and efficiency," said the chief economist of the ADB Changyong Rhee.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Bank of Japan Hold Interest Rate Policy and Asset Purchase

Friday, October 5, 2012

 

Bank of Japan (BOJ) policy today does not change at all, either in the portion of the asset purchase program and the interest rates. This is contrary to the expectations of economic agents, which requires that the authorities act quickly to overcome falling prices.

 

The central bank is promising space for additional economic stimulus on a regular basis according to need. Last month, the BOJ has injected additional funds as much as 10 trillion yen ($ 127 billion) asset purchase program bringing the total up to 80 trillion yen. As expected, the BOJ did not change the level of interest rates from 0 to 0.1% as price stability has not been achieved.

 

"The Japanese economy is expected to slow to then rebounded moderately in line with the strong domestic demand," the central bank said in a statement. Authorities also expect consumer price inflation remained at zero level until the time is uncertain. The government recently pressured by politicians and economic actors to perform the accelerated pace of inflation.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The World Bank's China Growth Estimates Cut

Monday, October 8, 2012

 

World Bank or the World Bank on Monday cut its China growth forecast for 2012 to 7.7% from the previous of 8.2% in May, citing weak growth in domestic demand and slowing investment while Beijing to implement remedial measures to curb real estate market.

 

The Washington-based company said that monetary easing this year with other stimulus measures likely will change the trend in the coming months. The World Bank also lowered its forecast for developing Asia to 7.2% from the estimate of 7.6% in May.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Shirakawa: A Stable Financial Conditions Help Growth

Tuesday, October 09, 2012

 

Bank of Japan Governor Masaaki Shirakawa outlines three important functions of a central bank is to ensure a stable financial condition, acquiring knowledge about the global macro-economic conditions and the banking system as well as understanding the changing world.

 

"Sustainable economic growth must be achieved to get financially stable, even if this is not always the case," said Mr. Shirakawa on foreign guests at the BOJ headquarters, on the sidelines of the International Monetary Fund and the World Bank. Mr. Shirakawa did not mention the central bank's monetary policy.

 

Last week, the BoJ policymakers decided to maintain the asset purchase program is the main tool for monetary easing. The amount of funds agreed Y80 trillion, as the central bank measures taken two weeks earlier.

Edited October 9, 2012 by mynameisandhy

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Officials Confirm China's absence at IMF meeting

Wednesday, October 10, 2012

 

The officials in China provided confirmation today that China's central bank governor and finance minister will not attend the annual meeting of the International Monetary Fund and the World Bank, held this year in Tokyo, according to a report.

 

China's finance minister Xie Xuren and PBOC governor Zhou Xiaochuan did not attend the meeting, by sending representatives each. The action was carried out related to the tension between China and Japan in which Japan intends to nationalization series called Senkaku islands, which China claims as well, called Diayou.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Banking shares many Hunted In China

Thursday, October 11, 2012

 

Central Huijin Investment Ltd., an investment company in China, said that the company is buying big bank stocks in China in the second day of trading yesterday and will continue to buy the same stocks in the next 12 months.

 

 

The big four banks are Industrial & Commercial Bank of China Ltd., Agricultural Bank of China Ltd., Bank of China Ltd. and China Construction Bank Corp.

 

 

The move comes after the purchase of the same program conducted in October of last year in which Central Huijin to buy shares of ICBC, AgBank, Bank of China and China Construction Bank to stabilize the share price of commercial banks and the government-managed to trigger the stock market at that time.

 

 

The company said at the time to continue to raise stake in AgBank, China Construction Bank and Bank of China in the secondary market (regular) in the next 12 months. Purchase program ended on Wednesday.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

Korean Central Bank Rate Cut 25 bp

Thursday, October 11, 2012

 

South Korea's central bank (Bank of Korea) today (Thursday, 11/10) cut its main interest rate for the second time this year in support of restoring the economy which has been hit by declining exports and shrinking domestic demand.

 

The central bank decided to cut interest rates (base rate) of 0.25 percent points to 2.75% from 3.00% as Europe's central debt, have now slipped into a recession situation.

 

While growth in China and the U.S. - are two of Korea's biggest export destination, is now showing signs of weakening. So that it adds to concerns over the export of South Korea, which is the country with the 4th largest economy in Asia.

[mynameisandhy]

News and Economic Review Zone Asia

 

Crop Outlook Asia Growth Fund

Friday, October 12, 2012

 

IMF lowered growth outlook express Asia Asia but will remain the main engine of world growth and China can avoid a hard landing. IMF predicted Asia will grow 5.4% in 2012 and 5.9% for next year. This is lower than previous estimates of the IMF estimated in April that Asia will grow at 6% for 2012 and 6.6% for 2013.

 

"Asia will still be the main engine of global economic growth and growth in Asia is still above average," the report the IMF's regional economic outlook. "China will not experience a hard landing. Domestic Chinese demand is still strong," said the head of the IMF for Asia Pacific, Anoop Singh.

 

Nevertheless, the IMF remains wary of potential unrest from Europe's debt problems and the U.S. fiscal gap that could trigger a global economic slowdown and will certainly slow down the performance of Asia. "Although the economic performance of Asia is still strong but significant turmoil in Europe could cause major problems for the economy, especially Southeast Asia and East Asia," the IMF report.

[mynameisandhy]

News and Economic Review Zone Asia

 

Asia in the Red Zone After China Data

Monday, October 15, 2012

 

Until the beginning of the afternoon session in the trading week (Monday, 15/10), the performance of Asian markets still seem more likely to be depressed until close to the negative range due to investor concerns in Europe still covered market in the center of China's economy now appears mixed.

 

A number of major Asian indices appear to move in the negative territory as well as Wall Street dragged down performance last weekend which recorded the worst weekly level in 4 months. Moreover depressed Asian markets as well as investors worried about corporate earnings diiperkirakan revenue will decline.

 

Financial and banking sector stocks Asia seem to receive the most severe pressure following the U.S. financial sector slump after Walls Fargo and JPMorgan recorded profit share revenues that are less satisfactory at the end of last week, so that it triggers fears of declining profit margins for banks in Asia.

 

While in early Asian trade, reports surfaced that Chinese economic data showed China's annual inflation (CPI) rate back down to 1.9% in September from 2.0% in August. While the data is also becoming an annual PPI figure dropped to -3.6% from -3.5% previously.

 

A series of inflation data is still showing weak demand and prices rapidly contracting industry. So it was undisputed that the bamboo curtain country's economy is still not stable.

 

As a result, these data, providing enough room anymore for further policy easing to prop up growth. So the expectations are enough to give a positive sentiment for investors who megharapkan running much stimulus, so that helped make up the limited attenuation labih index.

 

Until the afternoon session, recorded Nikkei - Japan rose 0.2% after rebounding to 0.7% helped by a weaker yen due. Hang Seng Index in Hong Kong were still minus 0.02%. While stock Kospi in South Korea (ROK) fell 0.52% and the Shanghai Composite Index -0.55%.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Nikkei Blessed For A weaker Yen

Monday, October 15, 2012

 

Nikkei - Japan ended in positive cap on trade earlier in the week (Monday, 15/10) after the start of the session had slumped down to below the level of 8500 for the first time since July.

 

In the afternoon session the index to maneuver and positive change to reap gains of 0.7% and finally closed up +0.5% at 8577.93 +43.81 points, or as much. Rally Nikkei mainly helped by a weaker yen due to the strengthening euro so now USDJPY fell to 78.60, closing lower when compared to the last weekend in 78.45 and a high level Friday pada78.53.

 

The impact of the weaker yen makes some stocks rose in Tokyo trading. Renesas Electronics Corp. recorded. rebounded 12.5%​​, fueled rumors of acquisition by top Japanese companies. Komatsu Ltd.. rebounded 4.3% despite the Nikkei newspaper reported operating profit will be down 17%.

 

Automotive Issuers also debuted as Honda Motor Co. rebound to 4.2%, Toyota Motor Corp.. rallied 1.8% and Nissan Motor Co. rose 1.7%. But Softbank Corp stock. which has weakened throughout last week, today still dropped 7.2% and Fast Retailing also still recorded minus 0.1 percent.

 

While Nomura Holdings Inc.. fell 0.8% and Citigroup Inc. 2.5%. Even Sony Corp. fell 1.7% after Moody's downgraded its credit rating.

[mynameisandhy]

News and Economic Review Zone Asia

 

Asian stocks rally carried Wall Street

Tuesday, October 16, 2012

 

In general, the Asian markets today (Tuesday, 16/10) has strengthened mainly due to the increased positive sentiment of investors after yesterday's rally on Wall Street until it closed in the positive numbers.

 

Wall Street higher after retail sales data (retail sales) positive U.S., where the number appears above expectations. In addition to market sentiment recovered after Citigroup Inc's reported third quarter earnings well above expectations. So today seems the financial sector rebounded and led the strengthening of a number of major indexes in Asia.

 

In Tokyo - Japan's recorded financial giants such as Mizuho Financial Group, Sumitomo Mitsui, Mitsubishi UFJ won reinforcement between 1.7 s / d 2.5 percent. So the Nikkei rebound rally sparked by 1.33% or +113.72 points to reach 8691.65.

 

Stock Hang Seng rose 0.29% recorded or +60.53 points to 21208.78, while the Kospi index - South Korea rallied to as much as 0.77% or +14.76 points to 1940.35.

 

However, most small investors are still pessimistic about market-related performance of Wall Street over the weekend that the worst recorded weekly level in 4 months as investors worried about corporate earnings diiperkirakan revenue will decline.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan PM's New Economic Stimulus Plan In Late November

Wednesday, October 17, 2012

 

Japanese Prime Minister Yoshihiko Noda new round of economic stimulus plan by the end of next month as the country entered a period of respite, Kyodo News reported, citing sources close to the Prime Minister. These measures are expected to include measures to curb deflation, easing the yen, extending the earthquake reconstruction work, and loosening regulation in business, the news agency reported.

 

Noda will hold a cabinet meeting on Wednesday to instruct his ministers to map out a plan, Kyodo said. "It is clear what he (Prime Minister Noda) talking about," said Daniel Katzive, currency analyst at Credit Suisse in New York. "He can say that further steps to support exports or appreciating yen on exporters."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Wen: China's economy "is relatively good" Ahead of the release of GDP data

Thursday, October 18, 2012

 

Chinese Prime Minister Wen Jiabao said that China's economic situation in the last quarter "relatively good", a signal to the GDP report on Thursday which probably shows that the economic slowdown has begun to recede. "China's economic growth has stabilized," Xinhua news agency said. The government is confident to achieve the annual target and the economy will continue to showed "positive change," Wen said.

 

"Wen's comments may shows signs of stabilization in economic numbers quarterly, is the latest signal that the economy is now beginning to improve" said Mark Williams, Asia economist at Capital Economics Ltd.. in London. "GDP growth in the third quarter almost certainly slowed the annual rate. Policy makers want to be more focused in looking forward indicator, which indicates the economy may now be turning.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Data Two 'Adi Power' Spice Market

Friday, October 19, 2012

 

Today (Thursday, 18/10) of the world market seems bounce back after a series of Chinese economic data releases this week showed the economic stability of the country from the Bamboo Curtain country that holds the world's second largest.

 

In the morning session, the Chinese authorities released GDP data kuatal III to appear slow in figure 7.4% as expected, and this rate is lower than 7.6% in the previous quarter. However, these levels according to Premier Wen Jiabao relatively better and he believes that this year's economic targets will be achieved.

 

As a result, Asian stocks rallied today, in addition to the positive U.S. housing data helped ease concerns about the increasingly sharp slowdown in world economic growth. And strengthening the Asian markets this time can not be separated also from developers and property stocks rally.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BoJ Crop Economic Assessment

Monday, October 22, 2012

 

Bank of Japan cut its economic assessment for eight of the nine local area for the month of October. It is increasingly emphasized that the bank will undertake additional steps sental next week.

 

"Eight areas reported stagnant economic recovery," according to the BoJ's quarterly report released today (22/10). The decline is in contrast to a report in July where nine regions reported raising penilaiannnya. The report, known as Sakura Report was released at a meeting of manjer of 32 domestic branches of the central bank and general managers based in the U.S. and Europe.

 

The central bank is scheduled to return to hold a meeting on October 30 and released its mid-year outlook on the economy and prices. Today BoJ governor Masaaki Shirakawa reiterated that the central bank will keep monetary easing efforts. "The central bank will keep monetary plonggaran step by increasing the amount of its asset purchase program," according to Mr. Shirakawa in a meeting attended by leaders of the central bank branch.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Maehara: Japan Requires Additional Stimulus

Tuesday, October 23, 2012

 

Japanese Economy Minister Seiji Maehara said that the country needed additional monetary easing and to encourage growth as governments prepare for the elections to the opposition gain more support. The government plans to inject about 200 billion yen (2.5 billion dollars) into perkeonomian, Maehara said yesterday on one of the Fuji Television program, without giving details of source of funds. Belanjan level this year, including 910 billion yen for stimulus programs that require parliamentary approval, 400 billion yen for repairs after the earthquake buni, and an additional 347.8 billion yen more, he said.

 

"There is a relaxation of fiscal everywhere, but Japan still lacks the monetary base," said Maehara. While easing is not a way out, without these policies and measures "Japan's credit rating may be affected by the downgrade."

[mynameisandhy]

News and Economic Review Zone Asia

 

Side Effects Of QE3 Toward Asia

Tuesday, October 23, 2012

 

Side effects of the U.S. QE3 proven quite troublesome in Asia, with governments in Asia comrade adds pressure to suppress their currency gains. Hong Kong's monetary side is that last time intervened in the currency market by the central bank dollar sales worth 603 million Hong Kong dollar on Saturday, the first time in 3 years, after hitting a high mat auangnnya trading range. Excess liquidity due to a third quantitative easing in September has quickly penetrated the Asian market, as investors chase higher yields. Last month, the central bank in Asia to spend some 18 billion dollars to curb the strengthening of their currencies, according to data from Macquarie Bank, its highest level since January this year.

 

"Asian currencies will continue to get the pressure up, and unlike QE1 and QE2, the central bank will not tolerate strengthening their currency given the weak global growth," said David Forrester, senior vice president of strategic and foreign currency G10 at Macquarie Bank , adding that this could lead to a further step of the authorities to prevent currency appreciation.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Central Bank of China Could Not So Loosen Monetary

Wednesday, October 24, 2012

 

With the improvement of China's economy, policy makers in China's central bank will probably forget the awarding stimulus such as cutting interest rates and reserve requirement (GWM) previously thought.

 

Government data showed that industrial output and retail sales rose during the month of September. China's manufacturing PMI index surveyed by HSBC also rose compared to the previous month.

 

Premier Wen Jiabao mengatakana that China's economy will continue to show positive improvements despite previous GDP report showed slowing growth in the past 7 quarters. Some analysts said that the third quarter of 2012 China's GDP by 7.4% which is the lowest. China's economy will rebound back with growth of 7.6 to 7.7% in the fourth quarter.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Recovery Industry Trends China Not Stable

Thursday, October 25, 2012

 

China's industrial sector is still not in a groove steady recovery, in particular export markets, said the Ministry of Industry and Information Technology on Thursday.

 

"Stabilization trend of China's industrial sector is still strong and we still face many challenges and difficulties to realize steady growth," the ministry said in a statement released before the press conference.

 

China's industrial output grew 9.2% in September, up from an increase of 8.9% in August, and in line with other economic data from retail sales to exports, indicating that the recovery is on hold for the world's second largest economy.

 

Although there is a signal light improvements in the manufacturing sector, the annual growth of the industrial sector which grew about 10% in the first 9 months of 2012 was still below the target of ministry in the 11%.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Economy Minister Wants BoJ Loosen Policy

Friday, October 26, 2012

 

Japan's economy minister, Seiji Maehara, wants the central bank to loosen monetary policy further as Japan is still trapped in the abyss of deflation. "Central banks in many developed countries have loosened monetary policy. BoJ even has set an inflation target of 1% at the February meeting, but this has not been achieved," Maehara said after attending a cabinet meeting.

 

Informants told Reuters the BoJ will again increase the asset purchase program at the upcoming meeting of October 30 and will affirm commitment to easing inflation target of 1% can be achieved. The poor export performance and is still the threat of inflation will certainly encourage the central bank to act further to help the economy out of recession.

 

Meanwhile, the yen was seen trying to wreck further gains against the dollar in the London session. USD / JPY is now trading 79.95, not so far from daily lows 79.84

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Constrained China Company Debt Uncollectible

Monday, October 29, 2012

 

The strict rules of credit and weak economic conditions forced the company out of China to avoid the bill, which led to much pressure on the receivables.

 

Accounts Receivable refers to the number of funds owned but not yet collected from the client company.

The company seeks to pay its suppliers on time, adding to the pressure felt by the supplier, which made ​​it difficult to pay back to the creditors.

 

In August, total net receivables for industrial countries reached nearly 8 trillion Yuan (equivalent to $ 1.28 trillion), up 15.6% from August 2011, surpassed growth in operating income of the average company as much as 5.4%, according to data from the National Bureau of Statistics.

 

Most companies are blaming their liquidity levels that it is difficult to work again, lending operations, said Song Song, head of the department of international trade under the auspices of the Chinese Academy of Social Sciences.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Matter of policy, the Bank of Japan Requested Aggressive

Monday, October 29, 2012

 

Japanese monetary authorities were forced to release a new policy that is able to shrink the yen exchange rate dramatically.

 

Expectations are sticking out earlier this week ahead of the Bank of Japan's policy announcement Tuesday. Many pundits speculated authorities soon release a new easing in order to boost the economy after listening to the commitment of government officials and the latest economic data. Even the emerging expectations of style quantitative easing policy emergence United States (U.S.) through the printing of new money. Government pressure is the main factor that may force the central bank to act like that.

 

Bank of Japan are known to be aggressive in the recent reluctance of new policies, but it may change with increasing pressure on board members. Minister Seiji Maehara economy Wednesday again calling on the central bank to release a more powerful monetary easing. He even plans to attend the board of governors straight policy meeting to give further pressure. The pressure from the economic data as well as reports surfaced consumer prices (Fri 26/10) fell 0.1% in September compared to the same period of record in 2011. This fact marked reduction in the monthly CPI indicators for five consecutive periods, or is not as expected economic ministries. BOJ expected next week to report his failure to attain the inflation target of 1% for fiscal year 2014 in a book report.