News and Reviews Asian Economic Zone

[mynameisandhy]

News and Reviews Economics Asia (Korea)

 

Bank of Korea Hold Interest Rates At 3%

Friday, May 13, 2011

 

Bank of Korea surprised the market on Friday morning to maintain the policy interest rate unchanged at 3%. Most economists expect the Korean central bank to raise interest rates because inflation pressures, with only 3 of 17 analysts surveyed by Yonhap Infomax South Korea which predict pause interest rate hikes.

 

This step marks the second consecutive month in which the Bank of Korea has kept interest rates unchanged. Korean Won lost strength after the release of this decision, with the U.S. dollar rose to 1090 won, up from previous low at 1,083.5 won, according to Dow Jones Newswires.

[mynameisandhy]

News and Reviews Economics Asia (Japan)

 

Japan Machinery Orders Rise On March Unforeseen

Monday, May 16, 2011

 

Japan's core machinery orders, an indicator utamayang many viewed as a major benchmark of capital spending, rose unexpectedly by 2.9% in March, according to Cabinet Office on Monday morning, with results far above expectations.

 

Monthly increase in core machinery orders, which does not include orders from manufacturers of boats and electric companies, in contrast to the median estimate of economists who predict a decrease of 9.9%, according to a survey reported by Dow Jones Newswires.

 

In February, core orders fell 1.9%.

[mynameisandhy]

News and Reviews Economics Asia (China)

 

Moody's: Negative Rating Trend Emerging To Chinese Property Developer

Monday, May 16, 2011

 

A negative trend of "famous" China appears to property developers during the first quarter because of their aggressive efforts to expand markets amid slowdown and tightening liquidity, a report from Moody's Investors Service Monday found

 

The report, which also noted a negative trend for airlines due to rising energy prices and earthquakes in Japan and New Zealand, said the trend of an overall assessment for corporate Asia Pacific ex-Japan is expected to remain stable, despite inflation and a gradual tightening of monetary policy raises challenge.

 

"Trends in Asia rating remained broadly stable, except that the negative pressure developed for China property development sector,"the report said, noting that the number of negative rating actions in this sector - eight - outnumbered positive actions - six - in the first quarter.

 

"Chinese property developer donated more than 60% of negative rating actions in this quarter, reflecting increased concerns about their business and liquidity risk, given their ambitious expansion plans at the time of constrained market growth and the tightening of liquidity," he said.

[mynameisandhy]

News and Reviews Economics Asia (China)

 

China Stock Market Up First Session; Shanghai +0.6%

TUESDAY, 17 MEI 2011

 

China stock market has increased its first session on bargain hunting action in coal and metals company. The Shanghai Composite rose by 0.6% at 2866.44 after touching an intraday level of the lowest in the level of 2821.20.

 

"I think it was purely as bargain hunting in resource shares after the fall following in the footsteps weakening commodity prices, " said Zhang Xiang, an analyst with Guodu Securities.

 

But Zhang said that the increase may only be temporary and too early to say that commodity prices have rebounded.

 

Yanzhou Coal Mining rose by 7.2% at the level of CNY33.20 and Zhongjin Gold rose by 1.9% at the level of CNY33.56.

 

Shenzhen Composite rose by 0.3% at 1202.55 levels

[mynameisandhy]

News and Reviews Economics Asia (Japan)

 

Japanese Tertiary Activity Reach Records Biggest Fall In 22 Years

Wednesday, May 18, 2011

 

Japanese service sector in March saw the sharpest fall in 22 years, as the March 11 disaster destroyed the infrastructure and businesses in the northeast, and virtually stop all economic activities that are not of national importance, to give a blow to the economic struggle

 

Government's tertiary industry index, released Wednesday by the ministry of economy, trade and industry, dropped 6.0% from 99.5 in February to 93.5 in March.

 

The decline was the biggest since April 1989, when the introduction of sales tax resulted in a decrease of 6.2% monthly.

 

All 13 categories of government surveys - including retail and sales, healthcare, banking and insurance - fell significantly.

 

A Ministry of Economy Trade and Industry officials say this is the first time the survey has decreased since the sector-wide statistical calculations when first used in 2005.

 

Wholesale and retail index fell 8.9%, while the hospitality down 11.0%. Transportation industry, most do not believe in tsunami-affected areas, fell 6.5%.

 

Recreation and leisure slumped 15.8%, because people stayed home after the disaster. The cancellation of concerts and theatrical performances whopping 61.1% resulted in a decrease in index of entertainment.

 

The ministry official said the government could not collect data from many affected areas. "We did the best we best reflect the economic situation with the data we have," the official said.

[mynameisandhy]

Asian Economic News and Review (Hong Kong)

 

Strengthen Energy Sector HK

Wednesday, May 18, 2011

 

Hong Kong stock exchange Wednesday moved to strengthen (5.18). The cause of increase in index is bargain-hunting action and properties of the energy sector, after the market fell for 12 in 14 sessions.

 

The Hang Seng Index rose 0.3% to as low as 22,966.87 and the Hang Seng China index increased 0.6% to as low as 12,814.99. HK shares steady despite the fall of the Dow Jones Industrial Average last night (05/17). Cnooc Ltd. shares rose 1.4% and PetroChina Co. reached 1.7%. Meanwhile, Aluminum Corp. of China Ltd. rose 1% as crude oil prices Globex, along with some recovery of commodity prices. The property sector is also slightly stronger in order to redeem the fall yesterday. Cheung Kong Holdings Ltd. drove 0.7% and Sun Hung Kai Properties Ltd. climbed 0.4%. Shanghai index sank 0.3% to as low as 2,844.55.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Japan)

 

Japanese Economic Losses Sharply in January - March 2011

Thursday, May 19, 2011

 

Japan's economy shrank nearly double the margins in which economists have estimated, as this country back into recession with a contraction of two consecutive quarters.

 

Gross domestic product contracted by 0.9% in January-March quarter, marking a 3.7% annual decline, the Cabinet Office reported Thursday morning.

 

These results show a much larger decline than the average estimate for the contraction quarter-on-quarter by 0.5% in a separate survey of economists conducted by Reuters and Dow Jones Newswires.

 

GDP figures this is the first in which incorporate the impact of the earthquake 11 March.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

China Stock Market Up Thin; Shanghai +0.1%

Thursday, May 19, 2011

 

China's stock markets opened higher in early trading, supported by the strengthening of the U.S. stock market last night but the increase may be limited amid still big concerns over slowing economic growth and rising inflation.

 

The Shanghai Composite rose by 0.1% at 2876.87 levels with psychological resistance at 2900 levels.

 

"CPI was slightly lower in April compared to the previous month, but we expect to again increase in May and June", said Tu Chunhui, an analyst with China Development Bank Securities.

 

China's CPI rose by 5.3% in April, down from an increase of 5.4% in March.

 

China Shenhua Energy rose by 0.6% at the level of CNY28.70, China COSCO Holdings fell by 0.5% at the level of CNY9.25.

 

Shenzhen Composite rose by 0.2% at 1205.31 level.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Japan)

 

Japanese Economy: Industry Down 6.3% in March due to Earthquake

Friday, May 20, 2011

 

(Reuters) Japan's economy in March fell to a record 6.3% from the previous month in February, said the Ministry of Economy, Trade and Industry on Friday, reflecting a sharp blow to the factory and service sector output by the earthquake and tsunami 11 March.

 

The decline index of all industries is considered as a close approximation to the growth of gross domestic product as measured from the supply activity, was the largest since 1988, when the service adopted the comparative data format, said an official told Dow Jones Newswires.

 

The index was at 90.7 in March compared with 96.8 in February.

 

One subindeks a measure of construction activity fell 8.6% in March, the biggest drop since added to the main index in 1993, the official said.

 

Japan's economy rapidly deteriorated due to the manufacturing sector after the earthquake and tsunami and also the nuclear issue that crippled the supply chain and industrial activities. Japan is the worst disaster in decades that dampen consumer sentiment and hurt demand for luxury goods.

 

Terbesaritu third world economy contracted at a sharper rate than the annual estimate of 3, by 7% in the first quarter, slipping into a recession that make the domestic economy battered by the earthquake, such as consumer spending, according to government data showed on Thursday.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

China Stocks Flat

Friday, May 20, 2011

 

China shares tend to be stable in the midst of intense trading.

Shanghai Composite Index rose 0.1% to 2861.93, with psychological resistance level in 2900. But the index seems limited due to the strengthening of the uncertainty over the prospects of China's economy. "A major concern is still the market on inflation, which is likely to rise in May or June," according to the Gold State Securities analyst, Wu Yu.

 

Among actively traded shares, Inner Mongolia Baotou Steel Rare-Earth jumped 3.7% to CNY63.45 while Angang Steel fell 0.1% to CNY7.45. Shenzhen Index down 0.2% to 1194.47.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Hong Kong)

 

April HK Composite CPI Up 4.6%; market is expected to rise 4.6%

Monday, May 23, 2011

 

Hong Kong's composite consumer price index in April rose 4.6% from a year earlier on higher food prices and private rental, Census and Statistics Department said Monday.

 

April CPI rose higher than the 4.4% rise in March, and was in line with the increase of 4.6% median forecast of nine economists surveyed by Dow Jones Newswires.

 

On 13 May, the Hong Kong government increased in 2011 CPI forecast to 5.4% from 4.5% in the global food price inflation and higher energy costs.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

Goldman Sachs Downgrade China's GDP 2011/12

Tuesday, May 24, 2011

 

Goldman Sachs lowered outlook for economic growth (GDP) of China to 9.4%, from 10%, for fiscal year 2011 and to 9.2%, from 9.5%, for fiscal year 2012

 

At the same time, Goldman Sachs upgrade the outlook for inflation in China in 2011 to 4.7%, from 4.3%. "Overall, inflation in China is more entrenched than we expected," he said, adding "U.S. economic growth is lower and high oil prices into negative sentiment."

 

Goldman Sachs raised the average forecast for Brent crude oil price to U.S. $ 113.5 per barrel from U.S. $ 103 for 2011, and U.S. $ 130 from $ 110 for 2012.

 

Yet, they slashed HSCEI indexes end of 2011 to be 14 500 from 16500, with consideration of the ongoing policy of intervention and high oil prices are likely to close the potential expansion

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

Depressed Chinese Stock Fundamentals

Tuesday, May 24, 2011

 

Chinese shares continued to weaken on concerns about economic growth melambannya.

After declining 2.9% to 2774.57 on Monday, the Shanghai Composite Index to a strong support level in 2750. "Conditions are still worried about the macro economy and heightened investor concerns due to expectations for slowing economic growth," said Shenyin Wanguo Securities analyst, Li Xiaoxuan. Li added that inflation is still worrying, investors view of China by HSBC PMI data released Monday, the numbers are in 10-month lows in May.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

China Shares Move On Level Support

Wednesday, May 25, 2011

 

Melambannya investor anxiety about the domestic economic growth and rising price pressures continue to pressure shares of China.

 

Shanghai Composite Index down 0.2% at 2760.51. The index will test the 2700 level for the short term. "overall market conditions affecting the domestic economy. Investors are not sure whether Beijing will relax their monetary policies and also about the crisis in Europe," according to analyst Soochow Securities, Zhu Haomin.

 

Among actively traded stocks, China State Construction Engineering fell 0.5% to CNY3.73, China Construction Bank fell 0.8% to CNY4.93 and China Eastern Airlines fell 0.7% to CNY5.39. Shenzhen Composite Index fell 0.3% to 1147.02.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Japan)

 

Japan Exports Down 12.5%

Wednesday, May 25, 2011

 

Japan's exports fell 12.5% ​​from a year earlier in April, according to the government on Wednesday due to the impact of the March 11 earthquake that affects the production and delivery of the goods of the industry.

 

The export value is almost in accordance with the estimate of economists surveyed by Dow Jones Newswires declined by 12.7%. This was the biggest decline since October 2009 decreased by 23.2%, while the global financial crisis which led to declining demand from abroad. Data released by the Ministry of Finance confirmed that Japan's exports declined in the beginning of the period from April to June, after a natural disaster caused melambannya economic recovery and forced Japan into recession in the first quarter. Exports fell 2.3% in March, the first decline in 16 months.

 

Japan's trade balance showed a deficit amounting to Y463.7 billion, compared with a surplus of Y729.2 billion in the previous year and an estimate of Y700 billion. The deficit in January amounted to Y479.41 billion. Total exports in April Y5.156 trillion. Import Y5.619 trillion, up 8.9% from the previous year related to high energy prices that make rising import costs.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

China Buy Bonds Portugal June Bailout

Thursday, May 26, 2011

 

The Chinese government reportedly interested in buying bonds that will be auctioned bailout Portugal Financial Stabilization Facility or EFSF Europe next month.

 

The report quoted the official EFSF Wednesday night. He said China and other Asian investors are expected to represent a strong consortium membei Portugal bonds.

 

Attraction of Asia is to encourage the strengthening of the euro exchange rate. "They saw us and came to the conclusion as a good way to diversify (invest)," said Klaus Regling, Chief Executive EFSF quoted from yahoo.finance.com.

 

With the news, the euro exchange rate strengthened against the dollar in trading Thursday that along with rising commodity prices. The euro rose to U.S. $ 1.42 or the highest rise since 20 May. Purchases of euro large enough to reach U.S. $ 1,412 and U.S. $ 1,415 with the Financial Times newspaper that published it Wednesday night.

 

Commodity prices rise as U.S. crude oil prices rose to U.S. $ 101 per barrel with a collective purchase of trade-based strengthening of the euro in Asia. "We see the euro depressed lately, but I see there are many needs to buy the euro as European investors who want to withdraw funds again for the stress test in Europe," said Hideki Amikura, forex manager at Nomura Trust.

 

The purchase was associated with bailout bond purchases by China and Portugal saw the prospect of interest rate hikes by the European Central Bank to prevent further fall in the euro.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Japan)

 

Fitch Credit Rating Outlook Cut Japan Being Negative

Friday, 27 May 2011

 

Rating agency Fitch on Friday cut the outlook on Japan's debt to negative from stable, warning that the cost of the earthquake and tsunami of March and the bill is still not known for cleaning up after nuclear disasters will increase pressure on countries already shaky public finances.

 

Yen falls against the dollar and the euro immediately after the movement, which follows a similar downgrade by Standard & Poor's last month.

 

Fitch confirms the local currency rating of AA minus, the fourth highest and the same level as the S & P but one level below the Moody's AA2. After a motion on Friday by Fitch, the three now have negative views for Japan.

 

"Japanese government's credit worthiness is under negative pressure from increased government debt," said Andrew Colquhoun, head of Fitch's team of Asia-Pacific governments said in a statement.

 

Responding to the news, the Japanese government offered assurances that they would continue efforts to bring public finances back under control.

 

Analysts play down the potential market impact of recent downgrades, saying it only confirmed a broad view of the challenges facing Japan.

 

While noting that government spending on regional development which was destroyed by the earthquake could increase gross domestic product in 2011 and 2012, Fitch rule out the potential cost of cleaning plants Fukushima reactor disaster becomes a serious risk.

 

"There are significant downside risks for the public finances of the cost of which is still not known for cleaning nuclear reactor Fukushima, while delays in the restoration of power supply could cause Fitch to revise down growth forecast for 2011 from 0.5 percent.

 

Japan's public debt, already twice the size of the economy $ 5 trillion, will swell as the state faces the cost of reconstruction following the earthquake and tsunami March 11 that killed about 24.000 people and sparked the world's worst nuclear accident since Chernobyl.

 

Fitch said Japan's public debt also increased sharply, at a speed that can only be followed by Ireland and Iceland, "which both have experienced a systemic banking crisis."

[mynameisandhy]

News and Reviews Economic Zone of Asia (Japan)

 

Land and property prices in Japan fell after the earthquake

Friday, May 27, 2011

 

TOKYO. Ministry of Land, Infrastructure, Transport and Tourism said the impact of the earthquake in March 2011 and made ​​the price of land and property in Japan fell more than two-thirds of the previous.

 

From 146 locations in the survey, at 98 locations price decline over the next three months that ended on April 1, 2011.

 

This survey does not include locations such as Sendai and Urayusu earthquake affected most. The construction of high buildings and property at the beach too slow. "We need time to rebuild," said Yutaka Iwaki leader of this research.

 

From the survey, only two regions that showed increased land prices by 3% ie Kobe and Ashiya. The two areas are known by the location of luxury residences near the harbor. While 46 other regions unchanged.

 

Prices fell 40% residential area, larger than the decrease of 17% the previous month. For commercial areas, property prices fell 77% from 68% in the previous month.

[mynameisandhy]

News and Reviews Economics Asia (Korea)

 

Kospi ended 0.3% Minus

Monday, May 30, 2011

 

Kospi closed down 0.3% at 276.30. Foreign investors sold technology stocks amid sentiment ahead of the release of U.S. economic data including the ISM manufacturing data this week and the unemployment index.

 

Release of a series of U.S. data this week to limit the strengthening Kospi, according to Daishin Securities analyst, Jai-sik Choi. "Action has begun to decrease sales, but foreign investors seem to have re-entered the local market, at least until mid-June." KTB Securities analyst, Park Seok-hyun said the decline in U.S. economies data would seem to burden the Kospi in the short term, but the impact seems limited.

 

Bellwether Samsung Electronics fell 0.8% to KRW884, 000, while the chip manufacturer Hynix dropped 5.8% to KRW29, 500. LG Display fell 3.1% to KRW36, 000. Samsung SDI fell 11.5% to KRW177, 500 after Samsung Electronics said last week it plans to shift operations to Samsung SDI diesel fuel valued at KRW160.8 billion.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Hong Kong)

 

Hong Kong's April Retail Sales Up 27.7%; Top Expectations

Tuesday, May 31, 2011

 

Hong Kong's retail sales value rose 27.7% in April from a year earlier to HK $ 32 billion, since the arrival of tourists terlambung strong and stable domestic demand, the Census and Statistics Department (CSD) said on Tuesday (31 / 5).

 

The growth rate is higher than the 26.2% rise in March and also higher than expected 23.9% average of eight economists surveyed by Dow Jones Newswires.

 

Hong Kong retail sales by volume rose 21.9% in April from a year earlier, accelerating from March at the 20.2% increase and above the estimated average increase of 20.0% of the survey.

 

The arrival of visitors last month rose 20% from a year earlier to 3:36 million, terdongkrak with a sharp rise in visitors from mainland China.

[mynameisandhy]

News and Reviews Economic Zone of Asia (China)

 

Official Chinese Manufacturing Index Slipping in May

Wednesday, June 1, 2011

 

China's manufacturing activity rose more slowly in May, according to the reported results Wednesday from the Federation of Logistics & Purchasing Manager China. Results index Purchasing Manager Index (PMI) is marked slowdown from the 52.9 recorded in April and below the 52.2 median forecast of economists in a Reuters survey.

 

Sub-index of input prices are watched closely dipped to 60.3 from 66.2, according to the results reported, suggesting an easing in wholesale inflation.

 

Figures for the sub-index showed inflation pressures begin to moderate. "The fall significantly from the input index infalasi suggest that expectations may be decreased, which will slow economic growth," said analyst Zhang Liqun CFLP in a statement.

 

A private version of the Chinese Red Cross planned to be released by HSBC later this day.

[mynameisandhy]

News and Reviews Economics Asia (Korea)

 

Wear Korea Penalty Against HSBC and Credit Agricole

Thursday, June 2, 2011

 

HSBC Holdings Plc and Credit Agricole SA penalized by the South Korean government for the actions of the domestic branch of trade by way of outsourcing for their branch in Hong Kong.

Financial Supervisory Agency of the FSS, to give warning to the HSBC branch in Seoul due to trade interest rate and currency derivatives exchange, said deputy governor of the banking supervisory agency, Yung Kim Dae in a phone call today. Seoul branch of Credit Agricole also received warnings for the same thing, said Kim.

 

South Korean officials also tighten regulatory oversight of securities trading by foreign banks or stock-related concerns that the movement disturbances to the flow of funds will hamper the movement of financial markets. FSS yesterday also said to an increase in surveillance and investigation of currency trading at the local offices of global banks and impose a penalty if they do unhealthy collaboration transactions with their branches abroad.

 

FSS, a watchdog group funded by private menedak rules made ​​by government and institutional financial policies, found that there is one (1) investment bank which allows trading of financial investment products in Singapore, said Kim, who declined to give the bank.

[mynameisandhy]

News and Reviews Economics Asia (China)

 

China Brighten Aussie Performance

Thursday, June 2, 2011

 

The Aussie rose after data showed the continued expansion of Chinese manufacturing sector, Australia's largest trading partner. China Manufacturing Index rose to a level of 52.0 for the month of May, higher than the 51.6 forecast. The continued expansion of Chinese manufacturing to increase demand for Australian exports in order to help economic recovery.

 

Aussie achieve even higher levels 3 weeks against the U.S. dollar even though data showed Australia's economic contraction in the first quarter of 2011. Gross domestic product (GDP) shrank 1.2%, worse than the 0.8% growth in the last quarter of 2010. "The data was bad, but aussie is supported by the upward trend in interest rate expectations the Reserve Bank of Australia," said John Rothfield, an economist at Bank of America-Merrill Lynch. Minutes of last month's RBA meeting indicated the central bank might raise interest rates again if inflation rises according to estimates. Index swaps Credit Suisse also show the possibility of increased interest rate of 24 bps in the next 12 months.

[mynameisandhy]

News and Reviews Economic Zone of Asia (South Korea)

 

South Korea Will Raise Electricity Rates In August

Thursday, June 2, 2011

 

The South Korean government is planning to raise electricity tariffs in August of that country, Dong-A Ilbo newspaper reported Wednesday, citing comments by Minister of Knowledge Economy Choi Joong-Kyung.

 

Daily news quoted Choi as saying that the ministry has decided to retreat from the initial goal to raise electricity prices in July because of recent changes in senior level positions at the ministry. Choi also said the price increase will be implemented in stages in order to minimize the potential for shocks and the impact on domestic inflation.

 

The newspaper also said the government also plans to implement a new electricity pricing scheme in 2013, set up three different categories of users to separate the cost of the average power from industrial customers and the related user education. The average cost for electricity consumers on average are likely to rise under the scheme, the report said.

[mynameisandhy]

News and Reviews Economic Zone of Asia (Hong Kong)

 

HSBC Hong Kong PMI down to 52.2 in May

Friday, June 3, 2011

 

HSBC Hong Kong Purchasing Managers Index fell to a 52.2 in May from 52.9 in April due to higher input costs, HSBC Holdings PLC said Friday.

 

Readings above 50 indicate expansion in manufacturing activity, while readings below 50 indicate contraction.

 

HSBC Hong Kong PMI comes from the index that measures changes in output, new orders, employment, supplier delivery times and stocks of goods purchased.

 

HSBC is usually a problem index, based on surveys of more than 300 companies in the city, in the first three days of work each month for the previous month's data.