News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Endeavor Japan Inflation Bonds

Monday, June 17, 2013

 

Ministry of Finance Japan secretly returned to the bond market after an absence of five years. They react to investor demand for tools that can offset the investment campaign of the central bank inflation. The measures also provide a channel for the government of Sakura to measure their progress in changing price forecasts among investors.

 

The ministry will issue two series of 10-year government bonds are protected from inflation, the ministry said in a statement on Friday. Bonds worth ¥ 300 billion, it will be published in October and January.

 

Inflation bond plan comes amid a campaign of Prime Minister Shinzo Abe to reverse the decline of the price level that has been going on for 15 years. The Japanese government has set an inflation target of 2%. Tokyo saw strong demand for bonds whose index refers to inflation as a good indicator of inflation expectations.

 

The concept of expectations or forecasts of inflation has not been widely understood. It was also difficult to measure accurately, especially in countries that have not developed bond market inflation. The situation could change if the bonds are referring to inflation is much appreciated. Japan's efforts still have a long way to go. When nominal yields on 10-year bonds soared last month, the newspapers carried stories about the rise in mortgage interest rates on the front page. In fact, real interest rates have come down due to higher inflation expectations.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Floods New Graduates, but Minim Jobs

Monday, June 17, 2013

In the next few weeks, as many as seven million Chinese students will graduate from college. This amount is a record release rsalah largest annual student education in the history of the world bamboo curtain country. But instead of joy, youth graduation from college can actually turn out to be a problem. Because no one can guarantee they can instantly get a job in the middle of the downturn in the economic climate of the country.

 

Some companies and businesses claimed to have flooded job application letter, either from students who have graduated last year as well as those new to graduation this year. But the majority of businesses do not know whether requires new workers, given the current economic conditions are not as good as three years back. While the government claimed was worried that the large number of new graduates actually have a negative impact on social life. Therefore, the Beijing ordered schools, government offices and state-owned companies to open vacancies, at least a temporary contract. "This government is more frightening than the most skilled unemployment lower educated are unemployed," said Shang-Jin Wei, an economist at Columbia Business School.

 

Never mind the new graduates, the graduates last year alone many who do not work or even laid off by his office this year. "Many companies are not growing, so some of my friends received and laid off the same month," said Yan Shuang, Senior Students, who works in human resources and labor at the Beijing Institute of Technology. Yan received even claimed to have worked at a sporting goods manufacturer in the winter, but until now he nevertheless called for delaying acceptance of the company's new employees.

 

Climate China's growth in 2013 is predicted to be not as good as previous periods. The golden age of the bamboo curtain country is over and now the government was forced to play the brain to maintain economic performance that is not too slow.

 

Many agencies and financial analysts turned pessimistic in addressing the country's economic performance. Instead of improving, the economy is predicted to get worse in the second half. Financial institutions Nomura estimates gross domestic product (GDP) of China risky plunge to below 7% in the next six months. The projection refers to the domestic economic indicators that surfaced in recent weeks.

[mynameisandhy]

News and Economic Review Zone Asia (Singapore)

 

Interest Rate Manipulation, Singapore Punish 20 Bank

Monday, June 17, 2013

 

Singapore financial authorities to punish the bank for letting 20-tradernya traders tried to manipulate interest rates and foreign exchange reference values. A total of 133 traders registered to the illegal efforts for four years, triggering risk in various lines of trade, including foreign exchange and commodities markets.

 

The Monetary Authority of Singapore MAS) found no evidence of criminal activity during the investigation Libor scandal in four years. London Interbank Offered Rate, or Libor is a benchmark interest rate averages are determined by the major banks in London as the cost of funds for lending between banks. Authority failed to find evidence of irregularities Libor track a few times but the price manipulation attempts between 2007 and 2011.

 

"Although the number of traders involved (in the case) is relatively small, MAS must ensure our standards of integrity in the financial industry," the release of the Central Bank of Singapore. The Government wants every bank helped preserve the cultural work clean and transparent, including monitoring the traders. Object investigation include Singapore version SIBOR or LIBOR rate peg guarantee worth trillions of dollars as well as the reference rate for commercial loans and foreign exchange rates.

 

Some banks indicated that most fraud action is the Royal Bank of Scotland (RBS) and UBS, each of which has paid compensation worth $ 612 million and $ 1.5 billion to the authorities. Dutch bank, ING, are also reported to have paid its obligations to the supervisor. The three banks were ordered to increase reserves in the central bank's savings as much as 1 to 1.2 billion Singapore dollars (U.S. $ 956 million). While the bank who first recognized the manipulative actions in Singapore, Barclays, has paid a total of 450 dependents Singapore dollar fines.

 

The Bank of America, BNP Paribas and Overseas-Chinese Banking Corporation (OCBC) required to increase reserves at the central bank deposits of 700 to 800 million Singapore dollars. While the remaining 14 banks, including big names such as Credit Suisse, Deutsche Bank, Standard Chartered, Citibank, HSBC and JPMorgan Chase managed to get away with a smaller amount of the penalty.

 

MAS stated that as many as 75% of traders indicated cheating already fired or resigned. While the rest are still working but are liable to a mutation, cutting bonuses or salary reductions.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Central Huijin Raises stake in 4 Big Bank

Tuesday, June 18, 2013

 

China's state-owned investment agency - Central Huijin Investment Ltd., last week again raised its ownership of the four largest banks in the country, according to a statement from the four institutions.

 

Is foreign investment in China's wealth fund last Thursday to raise its stake in Bank of China to 67.7365% from 67.7299% of the issued share capital, and increased its stake in China Construction Bank Corp. to 57.23% from 57.22 %.

 

Party Central Huijin also raised its ownership stake in Agricultural Bank of China to 40.24% from 40.23%, and the Industrial & Commercial Bank of China, to 35.4647%, up from 35.4592%, according to a report already posted in the stock market.

 

Central Huijin also told the banks that it will continue to buy their shares during the next six months. While the two medium-scale banks that China Everbright Bank Co. and New China Life Insurance Co. also said on Saturday that Central Huijin also helped increase its stake in both banks and said it would continue to buy their shares during the next six months.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Central Bank Liquidity Situation Being Cold In Banking

Wednesday, June 19, 2013

 

Interest rates in the money market China remained at a high level indicates that the financial system is still potential tensions to continue.

 

Interbank borrowing costs is known as the repo rate at the last level of 6.82%, approaching the record levels of 6.90% was achieved on Friday. In fact this year the average interest rate the repo rate was in the range of 3:30% before sticking a liquidity crisis at the end of last month.

 

The last signal of the central bank is not planning to add liquidity in the financial system Tuesday, suggesting that there is still a risk of weakening. As a result the Shanghai Composite Index fell 7.1%, while China's bond yields climbed the short tenor of more than 40 basis points.

 

Large banking institutions in China urged central banks to add liquidity in the market by reducing the minimum deposit to avoid potential financial problems. But many analysts see, Beijing is likely trying to take advantage of market turmoil to test the capacity of banks to risk. The increase in borrowing costs will test the ability of the banks to raise capital and may indicate that a particular bank has taken a risk too big so get a liquidity problem.

 

PBoC is still poised showed that the overall liquidity situation at this time is not too worried at this stage.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BOJ: We Took Flexible Policy

Thursday, June 20, 2013

 

Governor of the Bank of Japan (BOJ) today said it is open to making changes in accordance monetary dynamics of the world economy. The central bank affirmed its flexibility, both in terms of disbursement of the portion of the stimulus and the reduction of bond purchases, as long as it benefits the economy.

 

In a press conference today, Kuroda explains that she and board of governors have done all the necessary steps for the benefit of the country. The first stage is the implementation of monetary policy loose sejan last April in order to achieve the inflation target of 2% in the next two years. "But that does not mean that we will remain silent for two years," said Kuroda told reporters.

 

"If the economic and financial conditions change drastically, then we are ready to adjust policy again, either tightening or loosening," he added. Central bank chief's comments came after the monetary authorities maintain this policy in the current month instead of market participants willing that the BOJ took an important step to resolve the turmoil in the bond market.

 

The lack of action of the central bank has made ​​a dollar exchange rate moves to a level of 93.75 per yen last week and the stock market go down. Kuroda trying to convince all parties that the central bank is willing to do anything to stem the surge in volatility in financial markets and interest rates on bonds, including by conducting market operations. When asked about the level of prices, Kuroda predicted change in the annual inflation rate turned positive in June before increasing gradually in the coming months. Exchange rate of USD / JPY is currently observed at the level of 94 968 per yen.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

PBoC Still Leave Inter Bank Rate Surge

Friday, June 21, 2013

 

Bank of China (PBoC) still letting surge that interbank rate known as Shibor (Shanghai interbank offered rate), which has surged to its highest level during mas 12:06%.

 

China's interbank rate hike shows the reluctance of banks to lend to each other, the effect is a crisis of liquidity and credit flow to the business sector will shrink.

 

The increase in short-term repo rates is exacerbating sentiment investors already worried by the withdrawal of the Fed's stimulus plan and the release version of HSBC China's manufacturing activity fell below the estimate.

 

Surge in China's interbank rate is not a new thing, usually occurs before the long holiday, or towards the end of quarter, and usually the PBOC will inject funds into the banking system to restore the rate to a normal level. But this time the PBoC seems to be tolerant of the Chinese interbank rate hikes that sparked tensions investors, remembering the last time there was a surge in the U.S. interbank rate (Libor), but the central bank to keep it even triggered the bankruptcy of Lehman Brothers.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Hang Seng worry China's Liquidity

Friday, June 21, 2013

 

Hang Seng fell in early Asian session as investors worried about the reduced liquidity in the financial system of China. The banking sector was hit hard by concerns about the impact of high interest rates despite the Shanghai interbank Bloomberg reported China's central bank has injected 50 billion yuan of liquidity after interbank interest rate hikes yesterday. Chinese interbank interest rate tenor 7 days and up to 12% overnight repo surged by 13.85% yesterday as the reduced liquidity in the market due to concerns the reduction of monetary stimulus and the Fed's reluctance to inject liquidity PBOC. If the interbank rate hike continues then this could increase the cost of bank funding and the business world.

 

Continuing concerns about a slowing Chinese economy also contributed to the sentiment. China manufacturing index (version HSBC) fell to a 9-month low in June as slowing demand. HSBC also expressed concerns about the continuing economic slowdown in the world's largest No2 as Beijing was reluctant to provide stimulus. Hang Seng futures fell 1% and is now traded 20070

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Goldman Downgrade China Economic Growth Estimates

Monday, June 24, 2013

 

Goldman Sachs became the latest bank downgraded growth in China on Monday, they said that the tight financial conditions and the presence of risk reduction for reform for the country with the second largest economy in the world.

 

Memangksa Bank estimates China's GDP growth for the second quarter to 7.5% this year from 7.8% previously. They also revised its full-year growth estimate to 7.4% for 2013 and 7.7% for 2014, from the previous 7.8% and 8.4%, for each of them. Official growth target for this year is 7.5%.

 

"Recent tightening of interbank markets has sent a strong signal that a policy of strong loan growth at the beginning of this year is not expected to continue," Goldman said in a note. "We expect this to tighten FCI (fixed capital investment) of about 30-40 bps in a few days coming months, in addition to the FCI tightening of 100 bps this year that if a stronger yuan is driven by a rapidly growing trade burdensome. "

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Nikkei Not Immovable Although the LDP wins

Monday, June 24, 2013

 

Trading floor - Tokyo seems not budge even though the party LDP (Liberal Democratic Party) won a landslide victory in the local elections specifically for metropolitan Tokyo last weekend (23/6).

 

The LDP party wins an asset for success in primary elections at the level of the upper chamber of parliament next month will be in the title. On the initial victory, Prime Minister Shinzo Abe at least get an extra vote of confidence on his radical economic policies, dubbed "Abenomics,"

 

Though the victory was actually in the middle of hurricane exposure correction that hit the main Nikkei index as investors were brought pessimism in response to monetary policy ala PM Shinzo Abe called the "Abenomics' it. Recent market players doubted the ability of Abe reversed in running programs established so far.

 

Until the trading session on Monday afternoon (24/6) recorded the main index Nikkei fell -0.41% or -54.06 points at 13176.07 range, while the Nikkei-fut down -175 points at 13165 price area. While the yen traded at a price of 98.39 against the U.S. dollar after falling to 98.70.

 

For the future, the performance of the stock market depends on how market participants respond to the programs launched Abe today. If the government's plan to move the joints are considered capable of the national economy, then stocks likely hired by the investor sells the bullish oriented. On the contrary, if what was promised Abe does not conform to the expectations of investors.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

USDJPY soared Related Comments BoJ Iwata

Monday, June 24, 2013

 

Pairing USDJPY soared 30 points in a while due to BoJ Iwata's comments stating that the central bank still has several options of monetary policy.

 

BoJ Deputy Governor, Kikuo Iwata also signaled that the central bank at a later add its asset purchase program, the instruments purchased assets are government bonds (JGBs) rather than riskier assets like stocks. Iwata however prefer to use the long-term price expectations to determine whether monetary stimulus needs to be increased, rather than using the benchmark short-term price fluctuations.

 

Besides assessing the fallout Iwata Japan stock index and the strengthening yen lately is only temporary and is caused by external factors and not by domestic factors. BoJ Iwata comments that positively impact the BoJ is apparently ready to give an injection of liquidity in bulk if it turns out negative shock occurs in the market all of a sudden.

 

So far the pairing USDJPY rose 98.17% at 0:29, after reaching its highest point at 98.69 and intraday lows at 97.74 daily. While the Nikkei index futures fell -2.59% traded at 12.990, a little bounce from daily lows at 12.920.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Yen Strengthens Amid China's Anxiety Issues

Tuesday, June 25, 2013

 

The yen rose to near the lowest level in two weeks against the dollar as speculation tuani money crisis in China will limit the country's economic growth has also supported the demand for safe assets.

 

Japan's currency rose for a third day against the euro after Chinese officials said that the central bank will closely monitor the financial market interest rates going forward. While the dollar index fell for the first time in five days after the Federal Reserve yesterday two presidents stressed that monetary policy will remain accommodative.

 

"The market did not turn aggressive when the consequences of China's problems started playing," said Neil Jones, an analyst at Mizuho Corporate Bank Ltd.. in London. "global recovery is still running but fragile and people will run for safety when they hear comments like that."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's central bank Endeavor Convince Investors

Friday, June 28, 2013

 

China's central bank by PBoC Governor Zhou Xiaochuan to assure investors that the surge in interbank rate as it did in the last week will not cause dysfunction in the money market.

 

Mr. Zhou said that the central bank would use all means and methods to maintain liquidity and keep the stability of the overall market. As a result, investor confidence recovered after the PBOC indicated a willingness to intervene and play its role as liquidity provider.

 

However the cost for banks to provide lessons that this rogue is China's Shanghai stock market fall by 15% this month. Therefore, market participants are still wary of the apparent volatility.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Economic Recovery In May Back Up Strategy Abe Give Evidence

Friday, June 28, 2013

 

Japan's economy rose in May as factories increased production rate to its highest level since December 2011, rising retail sales and consumer prices halt decline in six months, the data reinforce untuuk urge Prime Minister Shinzo Abe to end deflation.

 

Consumer prices excluding fresh food figure is unchanged from last year before weakening yen that makes rising utility costs at high speeds in almost five years. The price not include fresh food and energy fell by 0.4% in May from a year ago, reported by the National Bureau of Statistics in Tokyo today. Industrial production rose by 2% from April which is driven by demand from the power company. While retail sales rose by 1.5% from the previous month.

 

A series of data today provide evidence that abe stimulus strategy in the election campaign has strengthened its position before the Assembly elections next month. They may also loosen pressure on the Bank of Japan Haruhiko Kuroda to add monetary stimulus after widespread selloff in the stock.

 

"The policy of the government and the BOJ to work in terms of increased economic activity," said Takuji Okubo, chief Japan economist at Macro Advisors in Tokyo. At the same time, "for Japan's recovery from deflation for two decades, it will take years to achieve good performance on perkonomian."

[mynameisandhy]

News and Economic Review Zone Asia (Indonesia)

 

Indonesian Manufacturing Index Follow eroded

Monday, July 1, 2013

 

Indonesia's manufacturing index fell to its lowest level in four months in June at the level of 51.0, indicating weakening demand for regional commodities also affect Indonesia's manufacturing industry.

 

Level index below 50 indicates a contraction in manufacturing activity. A reading above 50 suggests expansion. Depreciation export volume of new demand-the first time in four months-show challenges of overseas factors, in the middle of the fragility of the global economic recovery.

 

However, the overall PMI data showed continued strengthening of domestic demand, a number of domestic resources, such as labor, constantly encouraged maximum. Evidently, the labor sub-index rose to its highest in 20 months.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Central Bank of China Add Liquidity Injections

Tuesday, July 2, 2013

 

Interbank borrowing costs declined further in China as the Chinese central bank liquidity injections (PBoC) for $ 5.9 billion into the banking system through repo agreements and other securities.

 

Injection of liquidity is likely to restore the money market rate to normal until mid-July. So far the Shibor China's interbank rate on 7-day tenors declined 69 basis points to a level of 4.76%, the lowest since June 20 which is the highest peak level Shibor rate is when the anxiety among the banking liquidity crisis that triggered a spike in the rate to 30%.

 

The central bank should move to restore investor confidence, and ensure the flow of funds from various banks in China that leads the real economy. As a result, a number of regional Asian stocks rose on optimism creeping situation in China and the global economic recovery.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Central Bank Liquidity Create Method to Monitor

Wednesday, July 3, 2013

 

Bank of China is really serious in controlling the availability of liquidity in the domestic financial system. For the benefit of periodic evaluations, the People's Bank of China (PBOC) creates a real-time system that is used to monitor the condition of inter-bank liquidity. Authority calls for the provision of funds properly mapped so that higher interest rates due to the lack of inter-bank credit funds does not happen again.

 

The Financial News, a publication of media supported by the central bank, reported that the system is called the index of financial conditions that has been operated recently and distribution data moves on a daily basis. Although it does not mention details of the tool, the paper said that the monitoring indicators of liquidity are the original made in the operational research team and the People's Bank of China. Furthermore, the index will also be used to assess the effects of the measures taken by the central bank.

 

Media reports said that the latest indicators of liquidity could increase the transparency of public authorities. But until now not known whether the PBOC will really open up its data to the public, so that the flow of liquidity in the financial system can be seen by all parties. The central bank has not issued an official statement.

 

The combination of reduced capital inflows, quarterly book close period and an increase in credit proposals in China has made the overnight rate jumped to 30% in the interbank market last month. Had been speculation that some banks began to go bankrupt and lack of funds to be distributed, although the argument was finally broken by each bank.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BoJ Concerned About China's Growth Risks

Thursday, July 4, 2013

 

Despite the optimism over Japan's domestic economy, but the Bank of Japan (BoJ) has concerns over a potential barrier recovery of the soft landing scenario / China economic slowdown.

 

Therefore topic Soft landing the world's second largest economy in China is likely to top the agenda at next week's BoJ meeting, where the BoJ Meeting is unlikely to produce a change in monetary policy.

 

Naturally, when the BoJ concerns over these external factors can disrupt economic growth in the country who are promising, which plans to upgrade its economic assessment Japanese and expressing confidence in the pace of recovery in the U.S. as well as the stability of the euro zone.

 

Beijing is trying to reduce the situation of the expansion of the credit sector, triggering a short-term liquidity crisis sparked uncertainty and regional markets in Asia including Tokyo was surprising, because with a watchful eye as we know from control credit growth in China, but in fact it is similar to the condition of the banking system in the Keiretsu Japan. But some analysts are optimistic that China can solve the problem in the short term, but if this incident could happen again raised concerns that China may not be able to solve the problem because the problem has become greater.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Proven Bribery and Corruption, China Ex-minister sentenced to death

Monday, July 8, 2013

 

China court gives death sentence for reportedly a former cabinet today. Is ex-transport minister, Liu Zhijun, whose life had its day after being convicted of the crime of bribery and irregularities authority over the two-year tenure. So news published by Xinhua News Agency Monday edition (08/07).

 

Liu Zhijun, also known by the nickname "Great Leap" Liu thanks to his great ambition to promote bullet train technology in China. He was fired from kuris minister in February 2011 due to 'violation of a high level of discipline'. Liu later proven to help Ding Yuxin, a business woman, to win the tender consultant transportation projects worth 3 billion yuan ($ 489 million). The minister then got a 'quota' of 10 million yuan of illegal agreement. Liu had dipindahtangan case to the judicial court in January. In total, prosecutors found 11 cases of misconduct such as contract deals and promotions which was signed by the head of the ministry. Although sentenced to death does not mean Liu will soon be executed because the legal system in China opened the surety, where the alternative options open during the exile in prison for life.

 

When pulled back, first great shock experienced by the Chinese transport ministry in 2011, when a bullet train crash in the eastern city of Wenzhou, killing 172 people. Since then, public condemnation of the government continue to arise in particular related to the guarantee of safety for the users of public transportation. Ministry accused of compromising the safety of passengers and only the ambition to complete projects fast train network expansion. Conditions worsened after several corruption scandals revealed to the surface, coupled with the news of the ministry swelling debt. On that basis, in March the Chinese government to separate the functions of the ministry of transport and commercial administrative role.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China market shackled Fundamentals

Tuesday, July 9, 2013

 

Shanghai stock index performance appeared positive with a rally in trading on Tuesday (9/7) after the government released China's inflation rate rose in June due to rising food prices.

 

China's annual inflation rate (CPI y / y) rose 2.7% in June from the previous 2.1% in May, and exceeded the government's expectations of 2.5%. While the problem of excess production capacity (overcapacity) leads China's producer price (PPI) has been going down for 16 consecutive months. Figures PPI y / y in June China recorded -2.7% -2.9% from the previous month as expected.

 

Until the afternoon session on Tuesday (9/7) main index Shanghai Composite rose recorded 12:37% or +7.31 points earned as much gain at 1965.58 area. In general the Shanghai stock rally inspired by Asian markets rebound thanks to the many positive instructions from the United States market (the U.S.) that helped to lift the majority of the regional market.

 

However, the rate of movement of the Shanghai index appears limited because investors became wary after China inflation data released today showed a sharp increase. Although higher than the previous figure, but the release of the results of the first half of an inflation rate was the lowest since 2009. Means it indicates a decrease in the level of demand as well as China's domestic economic activity.

 

While still weighed down investor sentiment appeared after China's economic growth forecast back in Citigroup cut by ratings agency on Monday (8/7). GDP growth rate (gross domestic product) of China lowered to 7.4% from the previous level of 7.6% for 2013, and 7.1% for 2014 from 7.3% previously. Decline in the outlook to be done because there is no policy measures of the government following the economic numbers are disappointing economic slowdown that marked the country's bamboo curtain.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Chinese government Close Space for New Stimulus

Wednesday, July 10, 2013

 

China is unlikely to launch a stimulus policy that could help accelerate the pace of the economy this year. Although the bamboo curtain country trade data classified as negative and declining economic growth rate.

 

Similarly, Citigroup economist projection, Shuang Ding, told Dow Jones some time ago. According to him, China's July trade data will not vary with the record in June, where a decline in the trade balance of the main indicators. In June, exports fell 3.1% compared to a year earlier, while imports fell 0.7% figure. Economic growth is also predicted a downward trend in the second half of 2013.

 

In a statement a few moments ago, the government appears willing to tolerate a decline in economic performance for the time being as long as the long-term reforms can move on. "Tolerance limits economic growth may be in the range of 7%, to the level of GDP is lower than it's not the cabinet (likely) not going to react," said Ding. He estimates that China's GDP growth fell to 7.1% in the last quarter of this year.

 

Today, the Chinese government is determined to continue to restructure when the pace of economic growth, the labor market and price stability control. "As long as the main indicators and the inflation rate does not exceed our target, the restructuring and reform program could continue," explained Li. According to him, a stable economic growth could open up space for reform, and that reform will give momentum to economic progress in the future. The statement seemed to be a sign that the cabinet Li Keqiang will tolerate economic slowdown for a while. Beijing looks to want a long-term reform-oriented consumer society and economy that no longer rely on central government investment.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Military Budget Increase

Wednesday, July 10, 2013

 

Blueprint to be released government Prime Minister Shinzo Abe suggests that the Japanese government is ready to face national security threats that require improving military capabilities, in addition to demanding a stronger relationship with the United States following a territorial dispute with China and the increasing hostility of North Korea.

 

Abe policy is now more nationalistic than previous years. In addition to focusing on increased alertness. Abe government has raised the annual Japanese defense spending for the first time in 11 years to 0.7% to approximately $ 46 billion.

 

Besides Tokyo provides a description of the growing military strength of China and the influence of the position kukuhnya claim parts of the country. According to Tokyo, China's "use tactics that are considered arrogant of which is an attempt to use force to change the status quo. Because the [Chinese] pushing claims not go hand in hand with international rules. "According to the white paper," no malicious actions that have unintended consequences. It made us concerned with the situation. "

 

The statement refers to an incident in January when Japan was China's naval forces Japanese martial locking the radar of weapons near islands in the East China Sea that are in dispute.

 

Beijing responded that Japan should be more polite and seeks to increase political trust and promote peace and regional stability. Associated with territorial disputes, Beijing said China had been urged to resolve disputes through dialogue, but at the same time, China will not allow any country violating its territorial integrity.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

South Korea Strong sentiment After BoK Meeting

Thursday, July 11, 2013

 

Sentiment in the South Korean market looks increasingly intensive rallied after the Bank of Korea (BoK) today re-let interest rates unchanged and raised its economic growth forecast for 2013.

 

At the end of the meeting (Thursday, 11/7), the Bank of Korea said it will focus on monetary policy to boost economic growth potential. But the issue of U.S. stimulus program reduction plan as well as a slowdown in China's major risk factors on inhibition of the policy measures.

 

The central bank left interest rates unchanged at the benchmark level of 2.50% for the second month in a row after his last cut interest on in May. And central banks are now more optimistic about the domestic economic outlook ahead compared to the previous month. So that in the meeting, BoK raised its economic estimates to 2.8% from 2.6%

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Machinery Market Optimism Recover

Thursday, July 11, 2013

 

End the regular trading session on Thursday (11/7), the Nikkei - Japan closed positive zone after a sluggish market trading moves and moved between positive and negative territory. Nikkei (N225) rose 0:39% ends up +55.98 points at 14472.58 area. While the Nikkei index rose fut also participated 0:28% (+40 points) in the range of 14440.

 

Among market participants did not seem surprised by the results of the policy was decided by the Bank of Japan (BOJ) after the central bank refrained from further monetary policy loosening. BOJ returned maintain commitments increased monetary base (the monetary base budget) amounted to ¥ 60 trillion to ¥ 70 trillion per year. Predictions and the corresponding figure was unchanged from the previous meeting on 11 June. So the market is not too respond to the report.

 

However, some people still pay attention to the positive machinery orders data is to be released by the government this morning. So that investors are still quite interested in taking a position in the financial markets despite the sharp strengthening of the yen today that managed to penetrate below the level of 99 against the U.S. even landed at 98.27 yen rate.

 

Data Japan's machinery orders unexpectedly jumped in sharply to 10.5% in May from the previous month at the level of -8.8%. The jump in the numbers gives a positive signal that the company is now expanding its investment plans (expansion) in line with the improving economy.

 

Most markets also seem still motivated by positive Tankan survey from the Bank of Japan, released earlier in the month. The survey reflects that the business sector increasingly bold to add and expand its investment in the coming months. So that the condition has now become a major part of the government's plan to put the world's third-largest economy is on the path to long-term growth.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Revises Down Industry Data

Friday, July 12, 2013

 

The Japanese government today (Friday, 12/7) revise the data for the month of May industrial output showed a slightly worse performance in terms of production compared to the previous report two weeks earlier.

 

Ministry Ekononi, Trade and Industry describes industrial output for the month of May in revised down to 1.9% from the previous first report on the level of 2%. Investors were quite disappointed with the results because since yesterday the Japanese market looks sluggish due to the recent strengthening of the yen under 99 level against the U.S. dollar.

 

Even among market participants do not seem to anticipate and tend to ignore the policy outcome was decided by the Bank of Japan (BOJ) where re BOJ refrained from further monetary policy loosening. BOJ returned maintain commitments increased monetary base (the monetary base budget) amounted to ¥ 60 trillion to ¥ 70 trillion per year. Predictions and the corresponding figure was unchanged from the previous meeting on 11 June. So the market is not too respond to the report.

 

However, some people still pay attention to the positive machinery orders data is to be released by the government on Thursday (11/7). So that investors are still quite interested in taking a position in the financial markets despite the sharp strengthening of the yen. Data Japan's machinery orders unexpectedly jumped in sharply to 10.5% in May from the previous month at the level of -8.8%. The jump in the numbers gives a positive signal that the company is now expanding its investment plans (expansion) in line with the improving economy.