News and Reviews Asian Economic Zone

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News and Economic Review Zone Asia (Japan)

 

Hold itself, Bank of Japan Observe Stimulus Effects

Friday, April 26, 2013

 

Bank of Japan kept its monetary policy meeting on Friday, April 26, 2013. Authorities first wanted to observe the impact of stimulus gelontoran imposed earlier this month.

 

Japan's central bank monetary resolve to maintain an annual basis in the number 60 trillion to 70 trillion yen. The amount is considered sufficient to flood the financial system with cheap liquidity in the next two years. Wait and see the BOJ in line with the expectations of 10 analysts polled by Dow Jones, where all respondents predict the central bank refrained temporarily. Stimulus flushing the beginning of April is considered quite radical and noteworthy first effectiveness.

 

Now the focus of attention has focused on the content of the semi-annual reports of the BOJ in the next few hours. Market participants can find out whether the authorities will raise the price forecast, in line with the 2% inflation target to be achieved within the next two years. Many people are still assessing target dibeebrkan by Governor Haruhiko Kuroda too ambitious and difficult to achieve. In this report, investors should assess indicators of reference what is going according caita that goal. If the numbers are weak, then the market skepticism towards the achievement of the inflation target could be increased again.

 

Economists surveyed by Dow Jones expect the BOJ to revise the average increase in the component of the consumer price index (CPI) to 1.5% for the fiscal year starting April 2014. The ratio is higher than CPI increase in January BOJ internal reports that only 0.9%. Yen exchange rate is currently observed at 98 803 per dollar.

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News and Economic Review Zone Asia (Japan)

 

Japan Plans to Supply Capital Into Asian Bond Markets

Monday, April 29, 2013

 

Japan will implement a financial framework. This is a new way of Japan expressed its support for ASEAN.

 

Nikkei newspaper on Friday published a report on the financial framework that uses foreign currency reserves to buy the bonds governments Association of Southeast Asian Nations (Asean). Mentioned, cooperation between Japan and ASEAN will be announced on May 3 in India.

 

Japan plans to support the growth of Asean by supplying capital to the Asian bond market. Liquidity in the market is much smaller than the developed countries. Under the agreement, Japan will acquire holdings in mutual funds registered with an investment in government bond markets in Asia. The move aims to promote stable funding for Asean members.

 

At the same time, Japan will initiate or expand the swap agreements or swap dollars with Thailand, Malaysia, Singapore, Indonesia, and the Philippines. This new agreement will allow a more flexible exchange between Japan and ASEAN members.

 

To support funding via Japanese companies operating in Asia, Sakura and Asean will design a special structure. This structure will help companies raise funds from the local central bank. Specifically, Japanese banks will accept the local currency of the local central bank to offer Japanese government bonds as collateral.

 

Japanese Finance Minister Taro Aso and the Governor of the Bank of Japan Haruhiko Kuroda a Japanese representative at the meeting to be held on the sidelines of the annual meeting of the Asian Development Bank in 2013.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Weak Data Exchange Also Hitting Japan

Tuesday, April 30, 2013

 

The decline in Japan's economic figures were released this morning, to be contributed to the weakening of the main Nikkei stock index today (Tuesday, 30/4).

 

Ministry of Economy, Trade and Industry released data Worth checking morning producton slowing industrial growth, while retail sales also fell, even numbers in release, all of them missed estimates.

 

Industrial production figures rose only 0.2% from the previous month, shrinking of February rose +0.6% and +0.3% in January. While retail sales fell 0.3% in March from a year earlier, although for large-scale retailers surge as much as 2.4%. In February, overall sales declined by 2.2%, while for large retailers fell 3.7%.

 

As a result, the disappointing economic figures also become a burden for investor sentiment so that they are reluctant to take a position in the market and wait for further instructions other on the market. The main index Nikkei (N225) finally closed with mersosot 0:25% at 13860.86, down -23.27 points. But the Nikkei index futures gained +120 points precisely in the range 13870 area.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Manufacturing Activity Weakens

Wednesday, May 1, 2013

 

The emergence of uncertainty over the sustainability of global economic growth momentum seems to successfully undermine China's manufacturing activity. China manufacturing index fell to 50.6 for the month of April; much lower than previous estimates of 51.0 and 50.9 publications. The new manufacturing data released this certainly can make investors worried about China's continuing economic slowdown in the second quarter of 2013.

 

"The fall in PIM manufacturing index showed the economic recovery has not been a solid foundation," the statement China Federation of Logistics and Purchasing released the data. "Industrial orders and export orders are still quite weak and this makes manufacturing activity decreased in April." PMI data released by the official Chinese government agency is also similar to the data released by HSBC manufacturing PMI end of March.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China PMI Data Caused Economic Against Doubt

Wednesday, May 1, 2013

 

Rate of growth in China's manufacturing sector unexpectedly slowed in April as the drop in new export orders, raises doubts about the strength of the economy after a disappointing first quarter. China's manufacturing sector PMI index fell to 50.6 in April from a 11-month high in March is 50.9. Analysts estimate PMI at 51.0 in April.

 

The poor PMI data is similar to the PMI from HSBC last week, signaling that China's export sector is facing resistance from the euro zone and slowing growth in the U.S.. China's new government has signaled will increase infrastructure investment, which analysts say will sustain the economy in the second quarter.

 

"Overall, according to China will bertumbuhan but slower than what many people predicted a month ago," said Alvin Pontoh, economist at TDSecurities in Singapore. "But I think this might be the reason for the warning is being sought by the new Chinese government. Structurally, China can not grow at a rate of 9-10% again, so in the next few years, the growth rate will probably be around 7%" .

[mynameisandhy]

News and Economic Review Zone Asia (India)

 

Central Bank of India Cuts Interest Rate 25 BP

Friday, May 3, 2013

 

Central Bank of India (RBI) to cut interest rates 25 basis points on Friday for the third time since January 2013. The cuts caused by the growth and the inflation rate is slowing India.

 

The current repo rate to 7.25%, the lowest since May 2011. While the cash reserve ratio (CRR) maintained at 4% as expected.

 

India's inflation data for the month of March 2013 recorded 5.96%, its lowest level in 3 years. The central bank predicts inflation will reach 5.5% this year. India's GDP growth for the fiscal year 2012/13 ended in March is expected to slow to 5% compared with the previous fiscal year GDP growth is 6.3%. The central bank projected GDP growth for the fiscal year 2013/14 by 5.7%.

 

Despite being cut for the third time, India's central bank is still open to the possibility of further monetary easing in the future. Monetary easing undertaken India's central bank is following the trend of monetary easing undertaken by central banks in the world such as the U.S. central bank, Europe and Japan.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Strengthens South East Asia Monetary Cooperation

Monday, May 6, 2013

 

Japanese Finance Minister, Taro Aso speaks with a detailed plan of the steps in a press conference, following a meeting of finance ministers and central bank governors of Japan and ASEAN countries on the sidelines of the annual meeting of the Asian Development Bank.

 

Japan will take various measures to strengthen monetary and financial cooperation in East Asia. Promote cooperation among the regional currency and financial markets by buying government bonds.

 

Areas of cooperation include: renewal and strengthening of emergency monetary rules with ASEAN 5 - Indonesia, Malaysia, Philippines, Singapore and Thailand; finance infrastructure development in Southeast Asia, and helping Japanese companies won funding in local currency operations in Asean.

 

In addition to facilitating access to funding local Japanese companies in the countries where they operate, Tokyo said it would discuss other ways to support the use of Asian currencies, including the yen allow direct exchange between the Dilar Singapore or Thai baht.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Corporate Income Drops

Tuesday, May 7, 2013

 

Based on the China Daily report, the average net profit overall corporate listed in Shenzhen stock exchange dropped 11.5% during 2013, the first decline since 2009.

 

Although the rate of revenue companies listed on the Shenzhen stock exchange rose 4.71% year on year, but 768 companies from 770 companies experiencing falling profits in the same period.

 

The pace of corporate earnings should still potentially have improved during the first half of 2013 especially if there is a rebound in global growth, especially in developed countries thus spurring demand for Chinese exports, but the second half of the barriers to re-emerge as the risk of falling property prices and rising inflation forcing the PBoC to responded by raising interest rates.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Successfully Earn Trade Balance Surplus

Wednesday, May 8, 2013

 

China posted a trade surplus of $ 18.16 billion in April after previously recorded a trade deficit of $ 884 million in March, exceeding economists' forecast $ 15.55 billion.

 

The volume of exports rose 14.7% in April compared to the previous year, the percentage increase is rising faster than the increase of 10% in March. While the pace of imports rose 16.8% from a year earlier compared with a rate increase of 14.1% in March.

 

However, analysts warned that the export growth rate of 14.7% on the month, after rising 10% in March, maybe too good to be true. Because the numbers are not in accordance with the volume of cargo in the ports of the country.

 

So far, the picture was slightly disappointing export growth and weak global demand is an important factor. China's GDP growth in the first quarter were lower than expected by 7.7% year on year, down from 7.9% in the fourth quarter of 2012. In addition, the parameters of manufacturing activity in April as the PMI index slipped from 50.9 in the previous month to 50.6.

[mynameisandhy]

News and Review of European Economic Zone

 

There seems ECB Interest Rate Will Cut Up to 2015

Thursday, May 9, 2013

 

According to economists, the ECB will not cut rates until at least 2015. The central bank, based in Frankfurt it would keep interest rates at a record terendar 0.5% until the end of 2014. Draghi said the ECB on May 2 prepared to cut back interest rates by a quarter point if necessary.

 

Meanwhile economists also predict GDP will rise after euro zone industrial orders and German factory products increased more than expected, and inflation is likely to move close to 2% and economic growth will be moderate. Eurozone annual inflation rate fell to 1.2% in April and 1.7% in the previous month, the lowest level since opening in February 2010. Inlfasi ECB predicts will rise 1.6% this year, and up 1.3% in 2014.

 

ECB president, Mario Draghi, has said it is likely to reduce deposit rates below zero. The policy can spur conventional banks to make loans larger than the store. However, this policy can lead to the disruption of conventional bank profitability due to reduced interest rates on deposits. Furthermore the policy potentially restricting the supply of credit to companies and households.

[mynameisandhy]

News and Review of European Economic Zone

 

Bundesbank Back Criticism French

Thursday, May 9, 2013

 

Head of the Bundesbank, Jens Weidmann, again criticized France's failure to meet the target of cutting the deficit. The head of Germany's central bank stressed the importance of the French role in maintaining the credibility of the euro zone's fiscal discipline. Last week, the European Commission has given France an additional period of 2 years to achieve budget deficit target as the worsening economic outlook after the recession-hit euro zone.

 

Weidmann uttered the French budget deficit is still in the range of 4% this year and will increase next year indicate French not mean it run fiscal discipline. "To win the trust of investors, we can not simply remove regulations and promised to fulfill the commitment in the future: but we have to run a sincere commitment," said Weidmann, who also serves as a member of the ECB's monetary council. Relations between Germany and France recently not so harmonious, especially after Paris reiterate desire to spur growth and create jobs at the expense of savings policy.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BOE Keep Stimulus Seen As Economic recovery in Britain

Thursday, May 9, 2013

 

Bank of England did not change the stimulus as officials assess signs lately showing strength after the economy returned to growth in the first quarter.

 

Armed with the latest economic forecasts quarterly, Sembilang Committee members maintain monetary policymakers purchase target at 375 billion pounds ($ 584 billion), according to the results of the estimates of all but one of 44 economists in a Bloomberg survey.

 

The decision was taken after a two-day meeting last BOE Governor Mervyn King before he was replaced by the chairman of the Bank of Canada Mark Carney on July 1. While some of the survey in April indicating no recovery momentum are being awakened. While the pressure in the euro zone have prompted the European Central Bank to cut interest rates last week that will probably support the possibility of further stimulus.

 

"Data Flow England during the last month the results are quite good," said James Knightley, an economist at ING Bank NV in London. "We still feel that the recovery will be slow and the UK is still vulnerable from external shocks, particularly from the euro zone, so the potential for stimulus is still there. "

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Inflation Rises

Thursday, May 9, 2013

 

Rising food prices push inflation in China seems to work for the month of April. Annual inflation (consumer price index) rose 2.4%, higher than the estimate of 2.3% and 2.1% in March publications. However, inflationary pressures still seem low when viewed from the annual producer price index fell 2.6% for the month of April; decline for 14 consecutive months. Inflation is still lower than the inflation target Beijing set at 3.5%.

 

The increase in inflation is likely to remain under control and this may provide space for the Chinese government to raise the price of the product utility. Council of the Chinese government has signaled an intention to reform the pricing of some products that have been regulated by the government. Daily Xinhua Beijing has reported plans to raise taxi fares from 10 yuan to 13 yuan; when it realized it would be the first increase since 2006. Mirae Asset Securities and CLSA estimates that China will increase the price of residential gas for as much as 20% this year.

 

Meanwhile, the Hang Seng looked difficulty maintaining reinforcement early in the trading session. Hang Seng futures are now traded 23100; away from daily highs 23219.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Bank Lending Rises

Friday, May 10, 2013

 

Japanese bank lending recorded the highest increase since July 2009 as banks increase lending to real estate, mergers, and utility. Increased lending can also sinyalkan improvement in Japan's financial sector continues rally as stock markets and a weaker yen. Data released by the Bank of Japan showed an increase in lending of 2.1% to ¥ 405 trillion in April. This is an increase in lending for 19 consecutive months and total outstanding loans has now reached its highest level since April 2009.

 

BoJ sure lending will continue to rise in coming months as widespread expectations of a rise in credit demand for merger and acquisition activity as well as for the real estate sector. Channeling credit continues to grow as the BoJ run loose monetary policy and the widespread public optimism that helped spur companies to invest. Meanwhile, the Nikkei rose in early Asian trading session; Nikkei futures are now traded 14620, 14480 away from daily lows.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Will Maintain Price Stability

Friday, May 10, 2013

 

China can not be optimistic about the outlook for inflation in times of uncertainty are still visible in the property sector and agriculture, according to the Chinese central bank. "China will continue to be monetary policy to maintain price stability," the report monetary policy of the People's Bank of China (PBOC). "The central bank will continue its forward interest-rate liberalization and reform of the yuan exchange rate mechanism."

 

"The government's plan to loosen control over prices of natural resource products and utilities could push up inflation at the end of the year. Increasing the flow of capital into the country also complicate the task of central banks cope with inflation pressures," the report PBOC. The report released by the Chinese central bank PBOC may sinyalkan will not loosen monetary policy in the near future even though inflation is still below the government's target of 3.5%. Meanwhile, the Hang Seng Index fell in early Asian trade. Hang Seng futures now trading 23 075; away from daily highs 23181

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Lew: Japan must Respect International Rules For Yen

Friday, May 10, 2013

 

U.S. treasury secretary, Jacob Lew, said that Japan should remain within the bounds of international agreements to not target the exchange rate, Lew said after the dollar-yen level past 100 and kept extending kenaikannnya on Friday.

 

Lew said that he would not comment on the movement of the yen at a daily rate, but the G-20 meeting recently in Washington and Moscow have confirmed an international agreement on a policy of currency devaluation.

 

"The world is clearly making domestic guidelines are designed to handle domestic growth within the limits of what the international community thought it was appropriate and targeted policy to affect whether the value of the currency is feasible or not," said Steve Liesman Lew told CNBC in an interview in London.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

IMF Shinohara: Current Yen Level In accordance with Policy Abe.

Friday, May 10, 2013

 

Current yen level is appropriate given the policy package of Meneteri Japanese Prime Minister Shinzo Abe, who tries to pursue an inflation target, a senior official of the IMF on Friday.

 

Some confusion in the government bond market can not be avoided because the Bank of Japan monetary policy boldly change, but the government bond market will eventually adjust to the new policy, said deputy general director Naoyuki Shinohara, IMF at a seminar in Tokyo.

 

"In general, if you loosen monetary policy, your currency will weaken," Shinohara said.

 

"If you look at the overall policy of Abe, the current yen level seems reasonable."

 

Dollar extends rally relentlessly against the Japanese currency on Friday to break up 101 peryen, this is the highest level since April 2009.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Chinese Data Shows Improvement, But Still Disappointing

Monday, May 13, 2013

 

Chinese data showed improvement, but the data in industrial production and fixed asset investment is still lower than expected. Industrial production rose 9.3% from a year earlier, an increase of the percentage of 8.9% in March, but still below the expected 9.4%. Fixed asset investment amounted to 20.6%, also lower than expected at 21.1%. While retail sales are estimated to correspond to 12.8%, an improvement from the month of March with a percentage of 12.6%.

 

Overall Chinese data that has been released is not a surprise. Chinese stocks fell following the data. The Hang Seng Index fell 1%, while the Shanghai Composite Index fell 0.4%.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Data Will Determine the Market Asia

Tuesday, May 14, 2013

 

Some Chinese economic data to be released today will begin a busy week for the Asian market. Investors will try to assess the state's second-largest economy in the world. China will release a fixed asset investment, industrial production, and retail sales for April today. According to estimates by fixed asset investment rose to 21.1% compared to the previous year, industrial production rose to 9.4% from 8.9%, and retail sales rose to 12.8% from 12.6% the previous year.

 

Data last week showed China's exports in April were larger than expected, although some analysts questioned the validity of the data today will give greater insight on the state of the Chinese economy. The U.S. will also release data on manufacturing and retail sales this week, the second-largest economy will be able to set the direction of the market this week.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Not Much Room For China Stimulus

Wednesday, May 15, 2013

 

China does not have a lot of space to provide stimulus for spurring economic activity, according to newspaper reports China Securities Journal. The report cites an interview with Prime Minister Li Keqiang and this may reduce the expectation of a stimulus from the Chinese government. "If the market is too dependent on the government policies and stimulus to encourage economic activity then this will create an unsustainable situation.'s Only going to cause problems and new risks," Li said in an interview with China Securities Journal.

 

Li acknowledged the economy is facing challenges and uncertainties but Li also want to work in China market mechanism. China's latest economic data series is quite disappointing and it has been successfully raises hopes for stimulus from Beijing. However, some analysts are skeptical Beijing will provide economic stimulus unless conditions deteriorate significantly. China's economy is slowing in the first quarter of 2013 and only recorded performance of the GDP by 7.7%, but was still higher than the 7.5% growth target that Beijing wants.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Economic Growth Exceeds Forecast

Thursday, May 16, 2013

 

Japan's economy grew in the first quarter exceeded analysts' estimates, buoyed by gains in consumer spending and exports. This growth momentum building for sustainable growth.

 

Annual gross domestic product rose 3.5% while the estimate from analysts of 2.7%. The next target of Prime Minister Shinzo Abe is convincing investors to berivestasi and increase wages to exclude Japan from deflation for a decade.

 

While the yen firmed slightly responding to the GDP report was released. Yen opened at 102 250 yen per dollar and last traded 102 051 yen per dollar. This year the yen has weakened 16% against the dollar and 14% against the euro.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Machinery orders soar, Japanese Economic Outlook Still Uncertain

Friday, May 17, 2013

 

Japan machinery orders report showed an increase, to 14.2% in March from the previous month. This increase was the largest monthly increase since April 2005. Meanwhile akitivitas business capital spending in Japan is still in the stage of alert. The Japanese government estimates, core orders, which is an indicator of investment activity of companies, is expected to fall 1.5% in April-June, which would be a decline for five consecutive quarters.

 

For manufacturing companies, core orders are expected to rise 0.8% in April-June, which would be a positive sign for the economy. But some economists remain cautious, saying rising 0.8% can be referred to as "a strong recovery", after four quarters of decline in a row. The data showed easing program Prime Minister Shinzo Abe has not been able to trigger the investment business, which is the main engine of the economy.

[mynameisandhy]

News and Economic Review Zone Asia

 

Bank Central Will Be Focus Asia Market This Week

Monday, May 20, 2013

 

BOJ meeting, the speech of the chairman of the Fed, and the minutes of the RBA meeting will be the focus of the Asian markets this week. Focus first on Tuesday, where the RBA, after giving a surprise by cutting interest rates, will release the results of their last meeting. The minutes will be a guide to how big the rest of the "space'' that could be used to promote economic growth RBA, after cutting interest rates earlier this month.

 

Then on Wednesday, the BOJ will announce the results of their meeting. Economists expects no significant change in policy after last month the BOJ announced radical measures to help revive the economies and end deflation for two decades.

 

While the chairman of the Fed, Ben Bernanke, will also make a speech on Wednesday at the Congressional Joint Economic Committee, the speech will be the focus of the global market amid talk of the Fed reduces the possibility of more monetary stimulus program early.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Raises Economic Assessment Domestic

Monday, May 20, 2013

 

For the first time in the last two months, the Japanese government upgraded its assessment of the performance of the domestic economy. In a report in May, Tokyo declared decline Yen exchange rate has a positive impact on the competitiveness of exports.

 

The Government gives a better assessment of the export sector, industrial production and corporate profits. The economy gradually improved, and the climate is considered gradual recovery supported by rising business confidence, exports and support from the central bank's monetary policy package. "Monetary policy and fiscal stimulus from the Prime Minister has been able to be implemented gradually," said Japan's economy minister, Akira Amari told a news conference. He also argues that the consumption and export sector is the main economic engine. At the April 4 meeting, the Bank of Japan (BOJ) surprised market participants with the plan to increase the monetary base to double in the next two years. But this attitude is not fully impact on the government's assessment report last April and a new look in a report in May.

 

Government's latest economic report also showed improvements Japanese corporate earnings. Large companies began to find a rhythm back because of decreased arousal business business is considered to have reached the lowest level. "Although still in a deflationary situation, symptom improvement was visible in some parts," said one of the sound in the government report.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Government of Japan Upgrades Economic Assessment

Monday, May 20, 2013

 

Japanese government revised upwards (upgrade) an assessment of the economy for the first time in the last two months. In a report in May, the government saw exports rise triggered by a weaker yen may improve confidence in Japan's economic recovery. Government raised the valuation for exports, industrial production, and financial statements. "Japan's economy is now starting to improve and the economic recovery is expected to slow. Recovery will be supported by improved confidence, export conditions, government policy package and monetary policy," writes the results of the government's economic assessment.

 

The report also showed improved corporate earnings, especially large companies, while the downward trend in business sentiment began to show sign has gone through the worst conditions. "Although the economy is still feeling mild deflation is no signal change in beberpa area," the report said. Nikkei extending gains after the report was released. Nikkei futures are now trading 15 355; away from daily lows 15245.