News and Reviews Asian Economic Zone

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News and Economic Review Zone Asia (Japan)

 

BoJ Governor lay Option Bond Purchase Plan

Tuesday, March 26, 2013

 

Governor of the Bank of Japan, BoJ, Kuroda, said Tuesday that the purchase of government bonds with maturities of five years or more to be one option for the central bank to conduct policy easing, providing new clues about the changes that might be made ​​under the leadership of BoJ the new governor.

 

"We will consider any options," Haruhiko Kuroda said in a meeting with parliament, which asked about the idea of ​​buying government bonds with a deadline of 5 years or more.

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News and Economic Review Zone Asia (China)

 

China Growth to Slow Sharply In 2030

Wednesday, March 27, 2013

 

China's economic growth will face obstacles and can fade dramatically in the coming years due to reduced productivity and an aging population, according to a study from the U.S. Federal Reserve.

 

Trend growth may slow gradually to around 6.5% in 2030, or could drop sharply to the rate below 1% if the "worst case scenario" of economic activity in reducing it by force. "According to a study published online on Monday, during the last decade China's economy grew an average of about 10 percent a year.

 

"The growth rate of GDP is the sum of employment growth and growth in spending per employee. China face the challenge of the second category, "according to Jane Haltmaier, a senior adviser in the division of international finance Fed.

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News and Economic Review Zone Asia (China)

 

China Tightened Credit Sector

Thursday, March 28, 2013

 

Regulation of the new lending restrictions imposed by the Chinese government led to the property sector, banking and other Asian currencies fell sharply.

 

China's banking watchdog ordered financial firms in rural areas to tighten lending to local government financing facilities in new measures to control risks in the sector.

 

China Banking Regulatory Commission (CBRC) said that small to medium financial institutions in rural areas will reduce the flow of loans to local governments based on a circular from the government.

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News and Economic Review Zone Asia (Japan)

 

Furusawa Elected as Deputy Minister of Finance of Japan

Friday, March 29, 2013

 

Japanese Finance Minister elect officials Mitsuhiro Furusawa as high bureaucrats currency, according to Finance Minister Taro Aso, as a weakening currency cause problems with Japan's trading partners. Furusawa Keuagan vice minister for international parts today, replaced the president of the Asian Development Bank Takehiko Nakao, Aso said in Tokyo.

 

Furusawa will oversee currency policy as Japan's trading partners including South Korea expressed concern about the weakening yen that more than 17% against the dollar in the last two quarters. South Korean Finance Minister Hyun Seok Oh this month urged the G20 group of nations to re-discuss the yen weakened after Japan refused to criticize the policy last month.

 

"The big challenge for the deputy finance minister today is to make sense of Japanese trade partner since Japan's monetary stimulus will increase, which means the deepening weaker yen," said Azusa Kato, an economist at BNP Paribas SA in Tokyo. "If Japan intends to adopt policies to weaken the yen, the government should approach the currency diplomacy to avoid conflict."

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News and Economic Review Zone Asia (China)

 

Beijing Will Tighten Property Policy

Monday, April 1, 2013

 

Beijing, Shanghai, and other cities will tighten policy in order to boost troubled property sector rising house prices, according to the Xinhua report. Residents in the city of Beijing will be banned for buying a second home if the status is still single. Local governments will also run sebesasar capital gains tax of 20% and request a higher down payment for second homes. However, tax provisions can be ignored if the household has only one home and have lived in the local area for more than 5 years.

 

In Shanghai, in addition to the application of capital gains tax, the local government will also conduct a more thorough investigation of the loan borrowers who come from other cities, foreigners, or those who have been divorced. In the city of Chongqing, the local government will ensure the availability of adequate supplies in addition to tightening policy.

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News and Economic Review Zone Asia (North Korea)

 

North Korean Nuclear Reactor Mainstay Turn Again

Tuesday, April 2, 2013

 

North Korea on Tuesday (02/04) announced plans to reactivate its nuclear reactors to meet the material needs of weapons and resources. Pyongyang Declaration increasingly worsen the regional political situation, especially with neighboring South Korea.

 

In the Yongbyon reactor, about 90 kilometers (55 miles) north of Pyongyang section, closed in 2007 and according to the international nuclear disarmament treaty. Reactor with a capacity of 5 megawatts is a major source of plutonium for North Korea's weapons program. The government then announced the establishment of a new nuclear enrichment facility in 2010 to supply the raw materials of weapons of mass destruction.

 

In a statement through the national news agency, North Korea declared immediately menaktifkan again nunklir Yongbyon facility and does not intend to procrastinate. But many observers believe that the government takes months to fully operate the reactor. Satellite imagery shows construction underway at the site but it is unclear the extent to which progress has been achieved.

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News and Economic Review Zone Asia (China)

 

Weakening Yen Chinese Criticism

Wednesday, April 3, 2013

 

China criticized for weakening yen could encourage other countries in Asia to participate weaken the currency further aggravate trade relations. "A weaker yen may cause effects beggar-thy-neighbor as each country compete for electronic products, automobiles, and industry," the report China's foreign exchange regulator SAFE. "If any other country in Asia to follow Japan's policy will give rise to volatility trading and kebijakaan that can weaken the integrity of the economy in the region."

 

Critics of China can be intimated that several other countries in Asia is quite disturbed by Japanese policymakers are likely to lead to the weakening of the yen. Last month, Finance Minister of South Korea, Hyun Seok Oh, said the yen's exchange rate can affect the country's exports. China and South Korea may be more uncomfortable if the Bank of Japan loosened monetary policy more aggressively at the meeting which ends tomorrow.

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News and Economic Review Zone Asia (Japan)

 

BOJ monetary easing Apply A More Aggressive

Thursday, April 4, 2013

 

Bank of Japan under the new leadership is really proving its commitment to easing monetary policy aggressively. BOJ under Kuroda committed to pushing inflation to reach the target of 2% in two years.

 

In the monetary policy meeting has just finished, the central bank will increase purchases of Japanese government bonds to about 50 trillion yen in the first year. This is higher than analysts' estimates that only 15-20 billion per year. The central bank will also increase product purchase ETFs and real estate investment trusts.

 

Directly from the BOJ's decision to weaken the yen against other world currencies such as USD, EUR, GBP, CHF and AUD. Currently USD / JPY tread up on level 94, while the EUR / JPY climbed to the top area 120.

 

Nikkei 225 index also rose by 0.4%, while the broader Topix index gained 1.2%.

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News and Economic Review Zone Asia (Japan)

 

BOJ Governor: Surge Stocks Still Reasonable Price

Friday, April 5, 2013

 

Governor of the Bank of Japan, Haruhiko Kuroda, today confirmed that the surge in the value of Japan's current financial market is not a bubble or a bubble. According to him, asset price movements are normal and do not show excessive symptoms. However, the BOJ committed to closely monitor the effects of monetary easing has just been released to the situation in the asset markets.

 

"I do not see the price of stocks and bonds leads to a bubble, and it does not look likely in the near future," Kuroda said in a hearing with the agenda of Parliament. His comments aimed to answer the public's reaction to the strengthening of the Nikkei stock index and the length of the weakening yen after the central bank's aggressive policy. Spot Nikkei rose 3.43% to 13.068 in the morning session and tenor government bond 10-year-old also fell to record lows in the last decade in 0405%.

 

Kuroda rejected the discourse of the debate about the reasons behind the central bank's monetary easing. According to the new governor, too early to debate the effects and risks of a policy that had just taken. However, he intends to make sure it will review the quality of the financial system at the end of the policy period later, given the increased interest on the bonds susceptible damaging financial climate and the performance of companies in the financial sector.

 

BOJ said yesterday ready to launch an aggressive program to end up a national deflationary phase that has lasted for 15 years. The Board of Governors has approved an increase to 2% inflation target as soon as possible, with the orientation time for two years. If the surge in consumer price index will be temporary, Kuroda is committed to continue to maintain a loose policy. However, if the symptoms prices soared to the top 2%, then the authorities are ready to tighten policy again.

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News and Economic Review Zone Asia (Japan)

 

BOJ Monetary Operations Phase 1 Current Progress

Monday, April 8, 2013

 

Operating the Japanese central bank bond purchases went smoothly today (Monday 08/04). According to the Bank of Japan, investment firms willing to remove debt maturing between 5 to 10 years to the government with the total value reaching 2.05 trillion yen or the equivalent of $ 20.8 billion. The amount is twice more than the target of the central bank purchases the 'only' 1 trillion yen.

 

Meanwhile, government bonds maturing in over 10 years, the total bids submitted by private investors reached 633.7 billion yen or three times larger than the portion of the BOJ's purchases of 200 billion yen.

 

Actions bond purchases today is the first time since the Japanese monetary authorities announced an aggressive program to achieve the inflation target of 2% in the last week. For the first time also, the BOJ buy bonds with maturities over 3 years in order to pump money into the financial system. Yield or is government bond yields fell to 10-year 0.440% from 0.490%. Governor Haruhiko Kuroda has ordered it to buy all the bonds with varying maturities totaling $ 6.2 trillion, including short-term debt (floating rate). A total of five operations to buy ready made ​​to fulfill that mandate.

 

In an official statement last week, the central bank said the plan to increase the long-term bond holdings. In two years, the share of government bonds is expected to increase mastery of 89 trillion yen to 190 trillion yen.

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News and Economic Review Zone Asia (China)

 

China Inflation Data Up More Low Of Estimates

Tuesday, April 9, 2013

 

China's inflation data release had appeared lower than expected, while the level of wholesale prices fell in line with forecasts. The consumer price index or the Consumer Price Index rose as much as 2.1% down from the previous year, rose less than forecast of 2.4%, which is estimated by the Dow Jones Newswire. These results indicate a decline in the economic performance of an increase of 3.2%, though still above the inflation rate of 2% in January.

 

The services sector helped the increase, rising by 3.1% from the previous year, while the rate of food prices increased by 2.7%. The producer price index or PPI, down 1.9%, below estimates Dow Jones Newswires in a 2% fall. Hong Kong's stock market index extended gains that occurred during the opening following the release of the inflation data, with the Hang Seng index rose as much as 1.1%, up from the previous reinforcement rate 0.7% ahead of the data release.

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News and Economic Review Zone Asia (Japan)

 

Japan Finance Minister: Yen Correction impact only, not objective

Tuesday, April 9, 2013

 

The Japanese government continues to try to convince the world that its monetary policy will not interfere with other countries. The finance minister Taro Aso saw a reduction current yen exchange rate of the yen in compensation in the past.

 

The Japanese government will not likely seek new measures to counteract the movement of the Yen. According to Finance Minister Taro Aso, the rhythm of the exchange rate is quite normal in spite of the government's monetary easing. The statement came after the exchange rate USD / JPY surged to its highest level in nearly four years at 99.67.

 

Japan's finance minister also rejected allegations that the government deliberately undermine called Yen exchange rate for the sake of domestic exporters. "The central bank is targeting an end to focus only deflation that has lasted 15 years, is the impact of the yen weakened it," he said in hadapa media crew.

 

Statement that the government has actually been ejected when the G20 countries meeting in February in Moscow, Russia. "We have to explain about our goal to get out of deflation," he explained. Japan's hope other countries can understand the difficulties being experienced by the government, particularly in relation to domestic economic activity downturn. Aso said his country recorded a surplus before the global financial crisis came in 2008. But now the state report card balance instead of red cherry. The exchange rate now observed at 99 194 yen to the dollar.

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News and Economic Review Zone Asia (China)

 

Swelling China Trade Deficit in March

Wednesday, April 10, 2013

 

China's growing trade deficit figure swelled to $ 884 million in March, while the value of imports actually rose to 14.1% from a year earlier, according to the General Administration of Customs on Wednesday (10/4).

 

Misses deficit is estimated surplus of $ 14.7 billion, Dow Jones Newswires survey of surveys and away from the projected surplus of $ 15.2 billion in gathered by Bloomberg News. Though the balance in February recorded a surplus of $ 15.2 billion.

 

While the value of China's imports had dropped more than 15% in February, this time able to pass an estimate from a Reuters survey expected +5.2%. And throughout March import figures stood at +14.1%. While the level of exports rose by 10% compared to March last year 2012, slightly below expectations Reuters by 10.5%, and well below the previous period in the figure 21.8%.

 

Today's data release is quite a contrast with the release of Chinese economic data released today (9/4), which is considered quite satisfactory market audience. The consumer price index (CPI) rose 2.1% from a year earlier, less than the 2.4% rate projected in a Dow Jones Newswires survey.

 

However, these figures mark a considerable slowdown compared to 3.2% recorded in February, though still above the inflation rate at 2% in January. Meanwhile, the producer price index (PPI) fell 1.9%, below estimates misses Dow Jones Newswires that estimate fell 2%.

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News and Economic Review Zone Asia (Japan)

 

Kuroda: BOJ Ready Mileage Any Way To Reach 2% Inflation

Thursday, April 11, 2013

 

Bank of Japan Governor Haruhiko Kuroda mengatakn that the central bank will take all means necessary to achieve the inflation target of 2 per cent even as he indicated that the policy adjustment is not possible every month.

 

"Biggest commitment is that we have to take all the steps that need," Kuroda said at a press conference today in Tokyo, six days after he announced a stimulus that unprecedented monetary base to double in the next two years. The market is still adjusting to the policy, he added, after fluktuatifnya bond yields.

 

"We will closely monitor what is happening with the currency rates, and how it can affect the economy," said Kuroda. "I do not think that monetary policy can change from what's happening with the currency," he said, adding that government responsible for the yen.

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News and Economic Review Zone Asia (Japan)

 

BOJ Governor: Can Asset Purchase Lasts Longer

Friday, April 12, 2013

 

Governor of the Bank of Japan some time ago opened up the possibility to extend the validity period until the asset purchase program over two years. Not only that, the authorities are also ready to release other variants stimulus if necessary.

 

"It's not time to say that monetary easing will only last two years," Haruhiko Kuroda said in a speech in Tokyo. He stressed that it is prepared to extend the validity period of the asset purchase program until 'whenever' if you must. Kuroda admitted asset purchases would massively destabilize debt markets, but it seeks to minimize the negative impact further.

 

Earlier this week, the central bank's bond-buying operations running smoothly Japan. Investment firms willing to remove tenured bonds between 5 to 10 years for the government to reach a total value of 2.05 trillion yen, equivalent to $ 20.8 billion. The amount is two times higher than the target of the central bank's purchase of 'only' 1 trillion yen.

 

Meanwhile, government bonds with a tenor of over 10 years, the total bids submitted by private investors reached 633.7 billion yen or three times larger than the portion that BOJ purchases of 200 billion yen.

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News and Economic Review Zone Asia (China)

 

Under China's GDP estimates, Industrial Output Weak

Monday, April 15, 2013

 

The recovery of China's economy unexpectedly fell in the first 3 months of the beginning of 2013 when the economic growth rate fell to 7.7% for the final quarter of last year, an official said Monday virgin.

 

Per quarter, Q1 GDP drove as much as 1.6%, according to data from China's statistics bureau.

 

Tin Condon, head of Asian economic research in Singapore, said that these figures do not explain a lot of support in the first quarter likuiditasi

 

"Industrial Production unexpectedly weakened and it is a source of weak GDP".

 

"Based on consensus estimates it will move down and it will be our concern."

 

The government has set an annual economic growth rate target of 7.5% for 2013, along with a limit of annual inflation of 3.5%.

 

China's central bank monetary policy hold a neutral position after cutting interest rates twice in June and July last year and cut the cash reserve funds in the bank 3 times between November 2011 and May 2012.

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News and Economic Review Zone Asia (Japan)

 

BoJ's Kuroda Stay Optimistic

Monday, April 15, 2013

 

Governor of the Bank of Japan, Haruhiko Kuroda, said Japan's financial system is still stable and financial market conditions have improved. Kuroda also reaffirmed its commitment to achieve the 2% inflation target in two years and point out some economic indicators signaled rising inflation expectations. Kuroda also optimistic that the Japanese economy has passed its worst and the economic recovery is happening with improved domestic and external demand.

 

Kuroda's comments seemed to calm market fears that concerned with the impact of the stimulus aggressive BoJ to financial markets. The BoJ has pledged $ 1.4 trillion stimulus in 2 years to end deflation that has merubungi Japanese economy for 15 years. BoJ also hopes the program of bond purchases and other risky assets can be contributed to Japan's economic recovery.

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News and Economic Review Zone Asia (North Korea)

 

The Korean Nuclear Risk Rises

Tuesday, April 16, 2013

 

Intelligence United States (U.S.) for the first time the suspect North Korea (North Korea) has developed a nuclear weapon small enough to be mounted on ballistic missiles. The allegations contained in a confidential evaluation report issued seven pages the Defense Intelligence Agency (DIA), the agency under the U.S. Department of Defense Pentagon alias.

 

It is quite surprising after the previous, many observers think Pyongyang does not have the ability to develop nuclear upstream small enough to be attached to the missile, apparently the latest evaluation by the defense intelligence expressed moderate confidence that North Korea now has nuclear weapons that could be launched by a ballistic missile.

 

HE is one of dozens of U.S. spy agency. Not yet known whether this assessment is supported by the results of other studies of intelligence. U.S. defense officials did not confirm the findings of intelligence. North Korea however is often a surprise and make the U.S. increasingly wary. Pyongyang had claimed to have launched a nuclear test in February. The nuclear tests involve miniature devices.

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News and Economic Review Zone Asia (North Korea)

 

North Korea Rejects Nuclear Disarm

Wednesday, April 17, 2013

 

North Korea (North Korea) said it would cancel a domestic nuclear weapons program in order to start a dialogue with the United States (U.S.). North Korea rejected by Washington aimed at easing tensions in the Korean peninsula.

 

In a statement from the Foreign Ministry and broadcast by North Korean state news agency on Tuesday, North Korea said the base of the escalation of tension is the imposition of sanctions against the country related to the launch of the satellite in December 2012. The launch was seen as a move to test long-range missile technology.

 

In addition, in response to military exercises in South Korea that showcased U.S. nuclear bombers, the North "feel the need to improve [its ability to] rebut [the attack] nuclear," the statement. According to North Korea, now it depends on the U.S. to end a tough stance in order to start a dialogue. Pyongyang has long called on the U.S. to withdraw its troops from South Korea. According to North Korea, the U.S. military presence on the Korean peninsula is the threat of invasion, especially during joint military exercises.

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News and Economic Review Zone Asia (China)

 

China Home Price Rise 3.6% y / y

Thursday, April 18, 2013

 

China's housing price levels for 70 major cities there rose 3.6% in March from a year earlier, according to Reuters calculations based on official data showed Thursday, indicating an increase in 3 years in a row.

 

In the calculations on a monthly basis, prices rose 1.2% level in March and is now up for 8 months of the 9 months of movement.

 

Rising housing prices have fueled fears of inflation and the property has forced the government to launch a new round of remedial measures last month to curb price hikes.

 

Central Bureau of Statistics said that new home prices in Beijing rose 8.6% in March on a year earlier, compared to the increase per year in February as much as 5.9%. House prices in Shanghai rose 6.4% in March last year, at the rate of 3.4% in February.

 

Reuters calculations start house price index in China in January 2011 when the NBS stopped providing data, prices change only provide data for every city in the country as many as 70 cities.

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News and Economic Review Zone Asia (Japan)

 

Japan's trade deficit narrowed in March

Friday, April 19, 2013

 

Japanese state relisted value trade deficit in nine consecutive months in March, although the deficit narrowed more than expected and smaller than the deficit figures in February.

 

While Japanese exports rose 1.1% from the prior-year period after slumping 2.9% last month, according to the Finance Ministry on Thursday (18/4). The release hanpir accordance with predictions +1% of Dow Jones Newswires survey. While the value of imports rose 5.5%, down from February's 11.9%, but at least still growing strong thanks to a weaker yen and higher import payments related to fuel the expansion of state programs have raised the nuclear region's energy needs from abroad.

 

As a result, the trade balance deficit of 362.4 billion yen ($ 3.70 billion), shrinking from February of ¥ 779.5 billion and below forecasts of ¥ 430 billion deficit recorded in a Dow Jones Newswires poll.

 

On the other hand, exports to China still fell 2.5%, smaller than the previous month fell by more than 15%, which partly due to Chinese New Year holidays. While exports to the European Union also fell 4.7%, but it rose to 7% Americans.

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News and Economic Review Zone Asia (China)

 

Chinese Economic Growth Still Normal

Monday, April 22, 2013

 

China's economic slowdown is normal in the first quarter as China's economic growth rate to sacrifice for the sake of structural reforms, according to the Governor of the Central Bank of China (PBOC) Zhou Xiaochuan. "The global economic slowdown did impact the performance of the Chinese economy, but the 7.7% GDP growth is quite the norm when compared to the government target of 7.5%," said Zhou told Bloomberg.

 

"China is restructuring are sometimes contrary to economic growth. Takes sacrifice economic growth in the short term to undertake reforms and structural adjustment," said Zhou. Prime Minister Li Keqiang said that need a lot of action to improve the quality of economic growth. China is now more focus on restructuring and improving quality of life as the government seeks to encourage the consumption sector as one of the main engines of economic growth than exports.

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News and Economic Review Zone Asia (China)

 

Data HSBC China down, hindering recovery

Tuesday, April 23, 2013

 

Growth in China's manufacturing sector weakened in April, as the level of exports fell, said a survey of the factory managers showed Tuesday. Showed the country's second-largest economy will continue to face pressure with the global economy.

 

China HSBC Manufacturing PMI data released fell to 50.5 in April, which was previously released in figure 51.6, but still higher than in February in figure 50.4.

 

The index measures the performance of exports fell to 48.6 in April from 50.5 points in March, describing the weakening global demand as the U.S. economic recovery is still fragile and the European economy is still in recession.

 

The latest PMI data is likely to overshadow the economic recovery in the second quarter after China's economic growth unexpectedly slowed to a 7.7% rate in the first quarter from the previous 7.9% in the previous quarter.

 

However, with the release of a number above 50, accounting for China's economy still expanded from the previous month Novemner since 2012, although the numbers failed menembusa 53.

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News and Economic Review Zone Asia (Japan)

 

BOJ Will Raise Inflation Forecast To Deal with Deflation

Wednesday, April 24, 2013

 

As the Bank of Japan prepares to raise its inflation forecast this week, analysts from Goldman Sachs Group Inc.. to JPMorgan Chase & Co.. said projection can be used as a tool to end deflation. The BOJ is expected to indicate that the inflation target of 2% will be achieved in the spring of 2015, according to the Nikkei newspaper reported April 18. The central bank will probably increase the projected increase in core prices at least a 1.5% to an annual rate that expires in March 2015, according to sources.

 

Haruhiko Kuroda central bank governor, who this week held a second meeting, said by raising inflation expectations rose to the level of pent-up demand and credit growth triggered by eliminating the anxiety that will actually increase the debt stillborn. BOJ risks losing credibility unless the stop price drops in the coming months, with the data showing a decline of 0.3% in February and analysts expect a drop back in March.

 

"This is a game of confidence," said Masamichi Adachi, senior economist at JPMorgan in Tokyo and a former BOJ official. "The BOJ is trying to use its inflation forecast fatherly convince markets that they can attain the inflation target of 2% within 2 years, although some market players think this is unrealistic."

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News and Economic Review Zone Asia (South Korea)

 

South Korean GDP Up Sharply in First Quarter

Thursday, April 25, 2013

 

Economy of South Korea ginseng country recorded a growth of 0.9% in the January-March quarter and the fastest pace in two years last quarter as well as the acceleration of the steepest-4 in figure 0.3%, according to data on the release of the Bank of Korea on Thursday (25/4) .

 

As for the period sebelunnya (y / y), the GDP figures recorded no change in the level of 1.5%. GDP figures for the quarter to break the expectations of +0.7%, and 1.4% for the year-on-year (y / y). The quarterly growth rate was the fastest since GDP surge 1.3% in the first quarter of 2011.

 

Other data to be released along with the GDP is export rate, which rose 3.2% during the 1st quarter, while imports also rose by 2.5%, and petrochemical products appears to be the key driver for exports and imports. And at the end of their releases, the central bank said private consumption fell by 0.3% in the quarter primarily due to the falling numbers durable products (durables) and semi-durables.