News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Chinese Prime Minister Wants strengthening euro

Tuesday, November 26, 2013

 

Chinese Prime Minister Li Keqiang, During visits to Romania on Monday said that he wants the euro strengthened. "I think the cooperation between China and Central and Eastern Europe is needed for the process of European integration and Europe we face will be prosperous, united, and develop, and also to strengthen the euro currency," Li said after meeting with Romanian Prime Minister Victor Ponta. This visit will be a three hairan Li Keqiang first visit to Central European countries and Eastern Europe after serving as Prime Minister. He also became the first Chinese premier to visit Bucharest in 2 decades.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

South Korea Seeing Growth accelerated in the Middle strengthening Won

Wednesday, November 27, 2013

 

South Korea's economic growth set to accelerate to the fastest pace since 2010 , although the central bank warned that the won's rise to the highest level in more than five years against the yen overcast threat that can provide income for the exporters .

 

Growth momentum in the country with the fourth largest economy in Asia rose , led by growth in Seoul , in the center and southwest of the country , the Bank of Korea said in a quarterly report " Golden Book " which was released on this day in Seoul . The weakening of the yen against the won re- intensifying competition with Japanese companies and probably will hurt the profits of some exporters , the report said .

 

Agency South Korean authorities are monitoring the dramatic movement in the exchange rate of the won , the finance minister said Oh Seok Hyun last week when the won against the yen hit its highest level since 2008 . House prices rebound after the worst slowdown in the property market since 2004 to provide economic support , after the stimulus from the government and the central bank this year to help the recovery .

 

" Right now pent-up demand and the ideal conditions for the cycle rise , boosted by government measures to increase social welfare spending and give a boost to the property market , " said Kwon Young Sunm an economist at Nomura Holdings Inc. in Hong Kong yesterday .

 

The central bank on October 10 projected a growth of 2.8 % this year and 3.8 % next year , the fastest pace since 2010 , when economic expansion at 6.3 % as they pull out of the global downturn .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Retail Sales Up 2.3 % In October

Thursday, November 28, 2013

 

Total retail sales in Japan rose by 2.3 % in October from a year ago , in the report by the government on Thursday , giving a sign that household consumption may lead the recovery of the Japanese economy .

 

The figures released by the ministries of finance, trade and industry , led by a rise in car sales . Sales at retail stores in large scale down as much as 0.4 % this year , after adjusting for changes in the number of stores .

 

Data on Thursday is an encouraging sign for Prime Minister Shinzo Abe with pro - growth policies that successfully raised the level of consumer spending in the first half of this year , mostly with the purchase of luxury goods .

 

Many economists noted that the decline in household purchasing power in recent months due to the easing of the initial enthusiasm over " Abenomics " and because demand is still hidden from the disaster in Japan in March 2011 .

 

They say that the expenditure figures may be strengthened in the coming months , but most of the demand will soar before sales tax in the estimate will be pushed by the government .

 

However , they say that the spending trend is still weak , partly because wages do not rise much .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Consumer Price Index Jumps To Highest Level In 15 Years

Friday, November 29, 2013

 

The consumer price index in Japan rose to its highest level in 15 years , gave the signal to Prime Minister Shinzo Abe that his policies start to work to curb deflation .

 

Prices excluding fresh food and energy rose as much as 0.3 % in October from a year ago , in the report by the statistics bureau said in Tokyo today . The median estimate of 19 economists surveyed by Bloomberg News predicted to rise 0.2 % .

 

The monetary policy of the Bank of Japan has helped weaken the yen and 15 % against the dollar this year , raising the price of imported goods and energy and forcing some retail stores to give higher prices to consumers . Along Rev Abe seeks return of inflation in the country with the third largest economy in the world , he needs to convince the company to Rev wages for sustainable growth and help consumers through a tax increase in April .

 

" A stronger tone to the end of deflation in Japan , it can help set the conditions for wage increases , " said Hideo Kumano , chief economist at Dai - ichi Life Research Institute in Tokyo .

 

Consumer prices excluding fresh food , to the BOJ's target of 2 % inflation , rose by 0.9 % from last year , the fifth increase in a row , according to a report today. The median forecast of the economy is to rise 0.9 % .

 

By looking at the impact of a tax increase next year in April and October 2015 , the median estimate of BOJ board members are consumer prices will rise 1.3 % in the fiscal year starting in April and rose to 1.9 % in the next fiscal year .

 

And in a separate report , the economic minister Akira Amari said that Abenomics start bringing Japan out of deflation .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

About Chat Application , China Still on Top Than U.S

Monday, December 2, 2013

 

Of the many applications chat ( chat ) technology is flooding the market , the products still dominate the Chinese company . The high trend of the use of mobile devices in the areas of developing countries make such application WeChat dredge huge profits .

 

United States should lead the software market and technology , but when it comes to mobile applications ( especially chat ) China is the champion . Chat applications are increasingly being used for formal and informal communication because it is fast and practical . WeChat is one company that offers the ease of a chat with the number of users reaching more than 270 million people . About a quarter of the number of customers residing outside of China .

 

Just like any other chat applications , potential operational advantage derived from the sale of WeChat also additional applications such as stickers or drawings . As for further expanding consumer base , companies often embrace other business partners in a symbiotic project . Last cooperation signed by the pilot program WeChat is selling products via the app with one of China's largest mobile phone manufacturer . Xiaomi mobile phone companies put 150,000 to be offered to users through messages WeChat . Remarkably , all mobile phones sold ( promotional price ) within 10 minutes from the first broadcast message is spread .

 

Product output applications Tencent Holdings Ltd is the most popular chat application in Asia now . User applications Line Japanese output is claimed to reach 300 million people around the world , but its validity is doubtful because there are some users who are not active . While WeChat known to have a loyal fan base who mostly live in the territory of China . Following behind Line and WeChat is KakaoTalk , applications from South Korea with a market share of over 100 million people .

 

Typical innovation undertaken by companies from Asia chat application is the use of additional applications such as stickers , emoticons , customization of designs as well as links to social media . Sales of additional applications proven to boost revenue so that some U.S. companies participate imitate , such as Facebook and Path .

 

However, the characteristics of Asian origin reluctant chat application followed by Evan Spiegel , CEO Snapchat , which incidentally comes from America . Spiegel promises to offer an added value of its products , which is different than other applications on the market , although not giving value added service clue what he could give . It is not impossible Snapchat American and other applications are able to make an original innovation that could lift a mobile developer competition with the region of origin . Perhaps by focusing on the development of applications or even games in video and movie playback .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Moratorium Revoked , 800 Chinese companies IPO Queue

Tuesday, December 3, 2013

 

After one year imposed a moratorium ( freeze ) initial public offering or IPO in the stock market , the Chinese government finally returned to give consent for companies to go public . Open access to the equity markets welcomed by businessmen who want to raise funds for the development of its business .

 

China Securities Regulatory Commission ( CSRC ) said last weekend as many as 50 candidates are in the queue for the issuer's stock after its IPO in January. The amount is only a fraction of the total of about 800 companies on the waiting list after the lifting of the moratorium . The arrival of new issuers on the Shanghai bourse predicted to improve the performance of the major indices , which have been weakened by more than 22 % of the real value in the last three years .

 

The government closed the door IPO last year to ward off an abundance of funds to financial markets . However, after the moratorium lifted , the authorities are likely to look for another strategy to regulate the flow of liquidity without disrupting the company's business expansion . In addition to ending a freeze , the government no longer enforces the IPO scheme based on the central approval letter . During the IPO approval process is considered time consuming and tend to only put the interests of state-owned companies . While small and medium-sized companies are often excluded in an effort to share the publishing process . Instead , the supervisor will monitor the process of listing using the registration system . Under the old system that has been implemented in other countries , companies that have qualified are entitled to register the IPO . Feasibility sell shares of the business and earnings prospects left to the market mechanism .

 

Reshuffle in China's stock trading system is one component blueprint of economic and financial reforms . Revocation strict rules decided at a meeting of the Communist Party last month . Referring to the spirit of the meeting contained herein , the CSRC said that the process is more transparent will make market participants can contribute more in the financial system .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Prepare Stimulus Package As much as $ 53 Billion On This Week

Wednesday, December 4, 2013

 

Japan will develop an economic stimulus package this week, which is worth about $ 53 billion to support the economy ahead of a national sales tax increase in April , said people who know about it on Tuesday .

 

The size of the package , which is in stacking in October by Prime Minister Shinzo Abe , will be in the range of 5.4 trillion yen ( $ 52.43 billion ) to 5.6 trillion , said informants told Reuters .

 

The ministers in the government said that the package is required at least by 5 trillion yen to dampen economic blow to the tax increase , which is Japan's biggest step in this decade to curb its massive debt .

 

The Government will draw up the number of packets that are " effective " for funds " above about 5 trillion yen , " said Yasuhiro Hanashi , financial secretary of the parliamentary panel of Abe 's Liberal Democratic Party .

 

The government will decide the measure on Thursday , but for the exact number will not be announced until the Cabinet approved the supplementary budget on December 12 , said the resource persons .

 

The resource person said last week that the budget , which includes stimulus measures would be worth about 7 trillion yen .

 

Substantial monetary easing from the BOJ and the government expenditure is high Abe successful lift Japan out of deflation that has lasted for 15 years and moderate growth .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Approves Economic Package Valued at 182 Billion Dollars

Thursday, December 5, 2013

 

Cabinet of Japanese Prime Minister Shinzo Abe agreed economic package worth 182 billion dollars on Thursday to pull the economy out of deflation , but still there are doubts about its impact on the economy . Package has a number worth 18.6 trillion yen ( 182 billion dollars ) , largely overrated as the package includes loans from state banks and local government budgets are already scheduled .

 

The core of the package is 5.5 trillion yen in spending policies ordered by Abe in October to shore up the economy ahead of a national sales tax increase in April , and the government does not have to sell new bonds to fund these expenditures . This package has raised concerns that the Japanese government has not been apart of a stop-gap policy and policy -making that little by little , people are saying to suppress long-term growth rate .

 

" Market participants want the government to focus more on the strength of economic policy , " said Hiroshi Miyazaki , chief economist at Mitsubishi UFJ Morgan Stanley Securities . " Some things like the back of earthquake reconstruction , has been scheduled and is not really an economic strategy . "

 

Policy approved on Thursday will add about 1 % to gross domestic product and create about 250,000 jobs , according to the Cabinet Office . Miyazaki was less optimistic , saying the policy may only be contributing around 0.4 % due largely to the government's direct payments by the parents and the family will go directly into savings .

 

Move approved Thursday include policies to improve kompetitifitas , helping women , young children and the elderly , speed up the reconstruction of the earthquake and tsunami in March 2011 , and build the infrastructure for the 2020 Olympics in Tokyo .

[mynameisandhy]

News and Economic Review Zone Asia

 

Asian Stock Focus Next Week

Friday, December 6, 2013

 

Asian investors focus next week will be focused on negotiating the Trans - Pacific Partnership pact in Singapore .

 

Some countries are participating in the free trade pact including Australia , the USA and Japan hopes to complete negotiations before the end of this year . Various analysts are optimistic that this will boost cooperation TPP trade , investment and the rate of new job creation .

 

Besides approaching the end of 2013 , investors will pay attention to a series of tight monetary policy and economic data in Asia , no doubt indeed Abenomics policy has boosted the rate of the Japanese economy but Abe government now faces the challenge to provide better performance in the coming year amid concern that the new stimulus policies may not be sufficient to offset the negative effect of the tax increase plan .

 

On Monday , Japan will report Q3 GDP data revision and the current account which will give a clearer picture of the condition of the Japanese economy . In addition, the market participants will be noticed machinery orders report on Wednesday.

 

Furthermore, attention will be focused on Bank Indonesia's monetary policy meeting on Thursday. BI has so far prioritized the stability of the exchange rate than economic growth , but monetary tightening Indonesia 's most aggressive in the last 8 years has not been well managed to push the current account deficit and reduce pressure weakening rupiah .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Economy Slows in Third Quarter

Monday, December 9, 2013

 

Japan's economic growth slowed in the third quarter from the initial estimate due to stagnant investment in the private sector. Japan third-quarter GDP grew by 1.1% in annual terms compared with the initial estimate of 1.9%.

 

Economic growth during the quarter and the first quarter of next year is likely to grow following the tax hike plan in April next year to encourage more consumers to shop before the enactment of the tax rates shirt. Prime Minister of Japan, Shinzo Abe, the Japanese company has also been asked to increase the salaries of employees.

 

The Japanese government last week approved a stimulus package worth 18.2 trillion yen ($ 182 billion) to dampen the impact of tax increases next year. That number includes 5.5 trillion yen in government spending is projected to grow about 1% of GDP and create about 250,000 jobs.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Trade Balance Surplus Tertiggi Touch Level 5 Year

Monday, December 9, 2013

 

China recorded the largest surplus in nearly five years, due to soaring exports and a moderate increase in imports. Surplus in November amounted to $ 33.8 million, the highest since January 2009.

 

Exports increased by 12.7% from a year earlier while imports rose 5.3%. The data reflect the increase in exports to the U.S., Europe, and South Korea. Exports to the U.S. rose 17.7% in November from a year earlier, is the fastest growth rate since May 2012, while exports to Europe increased by 18.4%, the biggest in the last two years.

 

Chinese exports which is the main motor of the economy has suffered since the global financial crisis, with Europe and the U.S. is no longer a reliable export destinations. However, the gradual recovery of the developed world in recent months China's export outlook repair.

 

"A lot of signals that show global activity and trade turnover was formed momentum, driven by pemulihat country with high income, and Chinese exporters will benefit from it" said Louis Kujis economist of RBS.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Industrial Growth Slows, Retail Sales Increased

Tuesday, December 10, 2013

 

Some Chinese economic data released today give different results, with slower growth in the industrial sector and increasing retail sales.

 

Industrial output in November rose 10% from a year earlier but down from October when grown 10.3%. Figures in November is also lower than the estimate of 10.2%. While retail sales rose 13.7% from a year earlier, accelerating from October when it rose 13.3%, and 13.3% above forecast.

 

Other data showed fixed asset investment rose 19.9% for the period from January to November compared with the same period in the prior year. The number is down from the period of January to October 2013, when up 20.1%. Fixed asset investment is an indicator of construction activity in China.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Core Machinery Orders Up

Wednesday, December 11, 2013

 

The Japanese government said Japan's core machinery orders in October rose 0.6% from the previous month due to demand ahead of a planned sales tax increase next year. The increase was in line with economists' forecasts, while in September core machinery orders fell 2.1%.

 

Economists say many companies place an order before the end of September to make a profit to pay 5% tax that applies at this time, while the new tax rate will be halted effect in April next year by 8%.

 

Japanese government to revise the assessment of core machinery orders become "Gradually increasing" from "picking up" on the previous assessment. Core machinery orders are used as a leading indicator of corporate capital investment.

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

BOK Maintain Interest Rate

Thursday, December 12, 2013

 

Central Bank of Korea ( BOK ) maintained interest rates at 2.5% level . The interest rate is fixed in the last seven months due to the economic recovery remains uncertain .

 

The interest rate cut last conducted in May last . When the South Korean government also increases the budget of $ 16 billion to revive the economy grew by only 2 % in 2012 , the lowest level in the last year tigta .

 

The latest data showed exports grew just 0.2 % in November showed the uncertainty of economic recovery in the country that has a giant automotive , manufacturing mobile phones , and ship builders . Inflation in November remained below 1 % , far below the target BOK between 2.5 % - 3.5 % . But the government predicts inflation will rise to 2 % - 2.5 % in 2014 .

 

Policy makers want domestic demand plays a role more roles in the economy , to eliminate the dependence of exports . BoK last October maintain an estimate of the growth rate of 2.8 % in 2013 , but lowered its forecast for 2014 to 3.8 % from 4.0% .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Government Approves $ 53 Billion Fiscal Stimulus

Friday, December 13, 2013

 

Japanese government under Prime Minister Shinzo Abe approve a supplementary budget to finance the fiscal stimulus amounted to U.S. $ 53 billion, or 5.46 trillion yen for the current fiscal year. Stimulus is run in an attempt to reduce the negative impact caused when a national sales tax be increased next year.

 

The extra budget will add to the total government budget for 2013-2014 fiscal year that ended in March 2014 to about 98.1 trillion yen. When compared with the previous year's budget is slightly reduced but still substantial. Fiscal year 2012-2013 budget of 100.5 billion yen. This indicates the Abe government's desire to strike a balance between encouraging growth by reducing debt.

 

While in the 2014-2015 fiscal year, the government intends menanggarkan Abe spending by 99.3 trillion yen.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Giving Tankan report signals Barriers For Abe

Monday, December 16, 2013

 

Large companies in Japan slashed its forecast for capital expenditure this fiscal year , signaling an obstacle to Abenomics as sales tax increase in April . Large companies plan to increase spending by 4.6 % in the fiscal year ending March 2014 , according to the Bank of Japan's quarterly report today. The report compared with a projected 5.1% in the previous quarter and contrast with the improving sentiment at large manufacturers to the highest level since 2007 .

 

Prime Minister Shinzo Abe tried to convince businesses to raise wages and investment as part of its efforts to bring Japan out of deflation pressure for 15 years . While a weaker yen to a 5 -year low against the dollar last week highlights the impetus for the exporters of Abenomics , companies are not convinced that the recovery in Japan will last . " Business sentiment is strong for the current situation , " said Yoshimasa Maruyama , chief economist at Itochu Corp. . in Tokyo . "Companies are still worried about the outlook . "

[mynameisandhy]

News and Economic Review Zone Asia (Iran)

 

Iranian Foreign Minister : Iran Will Keep Nuclear Discussion Continues

Monday, December 16, 2013

 

Iranian Foreign Minister Mohammad Javad Zarif said Rebulik Islamic committed to reach agreement on nuclear activity even after the U.S. tried to impose penalties on companies that violate the possibility of sanctions . Zarif , in an interview today said that the U.S. did the wrong steps to freeze the assets of the companies doing business with Iran while trying to reach an agreement to bear on Iran to lay Program, within the nuclear weapons .

 

" We are committed to the implementation of the plan which we have adopted in Geneva , " Zarif said . " But we believe it will require cooperation from the U.S. side as well . " Discussions between 6 besara world countries and Iran in Vienna disrupted after the U.S. Treasury on December 12 and said it would membeukan company 's assets and prohibit transactions that seek to avoid sanctions , including doing business with National Iranian Tanker Co. . , the company 's largest Iranian crude shipments .

 

Companies suspected of violating the sanctions include Eyvaz Technic Manufacturing Co. . , The company said in Iran that the U.S. Treasury Department are involved in the procurement of sensitive goods to be used in Iran's centrifuge program , and Nuclear Raw Materials Exploration and Production Co. . , Company men Atomic Energy Organization of Iran , who allegedly oversaw the discovery of uranium , mining , and mineral processing operations in Iran .

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

Price of Goods Products Slightly Lower South Korea

Tuesday, December 17, 2013

 

Prices of goods manufacturer in South Korea fell 0.2 percent in November 2013 compared to the previous month. The Bank of Korea said the decline has continued contraction that occurred in October which amounted to -0.4 percent.

 

Sub-sector is increased agricultural, forestry and marine rose 0.5 percent. While manufacturing industrial products and services declined 0.4 percent.

 

Yearly basis, producer prices of goods fell 0.9 percent after slumping 1.4 percent in the previous month.

 

For information, the average price index of goods producer in South Korea reported by the Bank of Korea from 1965 to 2013 amounted to 61.30. Record high in the index occurred in December 2011 and a record low of 122.90 occurred in January 1965 of 5.80.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Home prices in China Continues to Increase

Wednesday, December 18, 2013

 

New home prices in China continued to rise even though China has made efforts to curb soaring property prices . New home prices posted an annual rise of 9.9 % for the month of November; higher than the 9.6 % rise in October. Major cities in China still dominates where the Shanghai house prices surge to record 18.2% annual price increase of 16.3 % and Beijing . The limited supply is still high demand and likely still sustain house price increases in China .

 

13 cities in China have tightened policy in the property sector in the last month and 3 cities even raise the mortgage payment for second-home purchases . With the continuing rise in house prices , the government of China is predicted to still run a strict policy for the property sector . However , the lack of policy on a national scale then tightening may still be occurring in some specific cities that experienced significant price hikes in the past year .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

According to China's Rising Inflation Expectations Survey of the Central Bank

Thursday, December 19, 2013

 

Expectations of rising inflation in China in the coming quarters increased , according to the central bank's quarterly economic survey released on Thursday , after more and more people are seeing price increases in the fourth quarter of sebelumnmya quarter . People's Bank of China said inflation expectations index was at 72.2 % , up 1.7 % from the previous survey . The survey showed that 61.8 % of respondents felt prices higher in the current quarter than last quarter , up 1.8 % from the previous quarter . Government data earlier this month showed that the annual rate of consumer inflation unexpectedly slowed in November to 3 % of the level of 8 -month high of 3.2% in the previous month , though still below the government's target of 3.5 % for 2013 .

 

The central bank held three surveys on banks , households and entrepreneurs every quarter to determine their views on a variety of topics including economic outlook , inflation , and the price of the home . The survey also showed that the number of respondents who believe will rise in property prices fell as much as 1.1 % to 66.5 % . Government data on Wednesday showed home prices rise in November to a record , signaling a slowdown yet .

 

Approximately 58.7 % of respondents felt their income would increase or same , slightly more than the previous survey . Survey of banks showed 73 % of respondents are confident that China's monetary policy measures are appropriate, while there is an increase of 12.2 % in the number of respondents who believe that the current economic situation " normal " . Among the entrepreneur confidence index rose 3.1 % to 65.9 % , while the export orders index fell 1.4 % to 48.7 % . Recent economic data showed China's economy is heading to achieve the government's growth target of 7.5% this year .

[mynameisandhy]

News and Economic Review Zone Asia (South Korea)

 

The South Korean market propped Fundamental Sturdy

Friday, December 20, 2013

 

South Korea ended higher in trading weekend ( 20/12 ) thanks mainly propped up by the won exchange rate is now perched on the lowest range in the last two weeks in the area of ​​1062 per dollar .

 

It appears Hyundai Motor and Kia Motors each jumped 2 % and 1.5 % , as investors bargain hunting after the stock fell sharply the day before . The main Kospi Index ( KS11 ) ended positive with +0.23 % or +4.57 increase in the range of 1980.22 points . While the Kospi index in closed - fut also gained +1.30 +0.5 % or 260.75 points at the area level

 

Referring to a number of fundamental pillar trim ginseng country , the South Korean stock market appears to be stable sturdy even until past 2014 . Investors appear to still hold on South Korean growth rates are fairly stable when calculated from the beginning of 2013 ago .

 

Data GDP q / q and GDP y / y in the third quarter of each appears in figure 1.1 % and 3.3 % . The figures each as strong as the GDP growth rate in the previous quarter . While cadagan Korean foreign exchange ( foreign reserves ) rose dramatically in November for its 5th month in a row in the figure of $ 345.01 billion in the previous month level of $ 343.23 billion .

 

In mid- December, the Bank of Korea ( BOK ) has decided to keep interest rates remained at 2.5 % , as expected . On that occasion , the central bank officials warned that the increase in volatility - Japanese Yen could still pose a considerable threat to the domestic economy . The following warning raised the value of the yen exchange rate reached its lowest level over the last 7 months over 104 against the U.S. dollar .

 

So with a solid fundamental foundation capitalize and accommodative government policies , it is not impossible to achieve the KOSPI higher gain for his next trade .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Set 2014-2015 Budget , Economy Predicted to Slow

Monday, December 23, 2013

 

The Government of Japan will raise the fiscal year 2014 budget worth 95.88 trillion yen , up 92.61 trillion yen from fiscal year 2013 after a meeting last weekend in a budget deal Taro Aso Finance Minister and Minister of Internal Affairs and Communications Yoshitaka Shindo agreed to cut 40 percent of the budget is intended to boost the regional economy into a 610 billion yen , in the government's draft budget which will be implemented starting in April next year .

 

At the same time the Minister of Finance said that tax revenue is expected to increase to JPY 50 trillion in 2014 , the highest in the last seven years , triggered by the increase in the sales tax rate starting in April 2014 , from 5 percent to 8 percent , corporate tax revenues are also expected to grow the supported by economic recovery .

 

Gross domestic product ( GDP ) is expected to increase real 1.4 percent in fiscal year 2014 or later than the estimate in 2013 of 2.6 percent . In addition , the Japanese government on Saturday announced a budget outlay of the 40 % will be directed to the defense sector , public works , and social security .

 

But the tax hike plan would slow economic growth for the period 2014-2015 the Japanese government expects inflation to rise only 1.2 percent in fiscal year 2014. While the CPI is expected to rise 0.7 percent this year and the primary budget deficit is projected to fall by JPY 5.2 trillion .

 

Seeing the condition of the economy will grow at a slower pace in the fiscal year ending March 2015. This slowdown is caused by the impact of a sales tax increase that will take effect in April next year though the government also estimates that the consumer price index ( inflation ) , will not be affected by the sales tax increase .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Interest Rate Money Market Stable After PBOC Starting Hands Down

Tuesday, December 24, 2013

 

The interest rates on the money market in China experienced the largest decline since February 2011 last month after the central bank injected funds through open market operations for the first time in three weeks later ( 24/12 ) . The policy is effective enough to prevent the liquidity crisis as happened in June last .

 

Repo rate futures 7 days decreased sharply by 339 bps and currently stands at 5.55 percent . The interest rate had soared sharply more than two times lipa be 8.94 percent over the past five days .

 

PBOC conduct reverse repurchase agreements timed seven days worth of 29 billion yuan or 4.8 billion dollars at today's yield of 4.1 percent . Last injection of funds committed by the Chinese central bank is on December 3 , in which the Chinese monetary authorities tersebus inject 18 billion yuan into the financial markets .

 

On December 20, the PBOC said that the agency has added 300 billion yuan over three consecutive days through short-term liquidity operations . This operation is intended to target a specific bank .

 

One-day repo rate declined by 117 bps to 4:08 percent . 14-day repo rate declined by 299 bps to 5.96 percent .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Beijing Set Targets 7.5 % Growth for 2014

Wednesday, December 25, 2013

 

Beijing will target growth rates are lower in 2014 than this year's growth , the potential to establish the level of conformity to the city and other provinces along China's economic slowdown and the leaders are trying to emphasize the sacrifice of any expansion .

 

The target for economic growth of cities in China in the next year by about 7.5 % , said Guo Jinlong , secretary of the Communist Party in Beijing's statement made ​​at a meeting on December 23 and in print today by the People's Daily , published by the party . The target is half a percent lower than the target of 8 percent expansion in 2013 .

 

This change is part of an effort to make the president Xi Jinping local officials to focus on short-term economic growth and more focused on the action , including the level of debt and melindungin environment. Analysts surveyed by Bloomberg News this month will see the Chinese national expansion slowed to its lowest level in 24 years at the rate of 7.4 percent next year from 7.6 percent in 2013 , according to the median estimate of economists .

 

" Do not judge who is the top hero of gross domestic product ( GDP ) , and do not be concerned about the level and gross domestic product rankings , " said Guo , who was one party official for the city of Beijing , People's Daily reported . The lower growth target aims to secure the number of jobs and stabilize market expectations , Guo added .

 

The growth target for the year 2014 " not low " and is in line with the plans that are customized for the long term , Guo said , without giving more specific . The city government proposed in September that the annual growth target for the five years through 2015 in trim to around 7.5 percent from 8 percent , according to the People's Daily reported at the time.

 

Beijing people's congress standing committee which took place on September 27 had approved amendments to the current five-year plan , according to related sites .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan will auction ¥ 155.1 trillion JBG

Wednesday, December 25, 2013

 

The Japanese government says plans to issue 155.1 trillion yen of Japanese government bonds or JBG in the coming fiscal year starting in April 2014, the plan will be a decrease in the number JBG issued annually since 2008.

 

Japan's Ministry of Finance will also extend the maturity of the bonds by increasing sales 30-year bond at 1.2 trillion yen, and reduce the two-year bond at 2.4 trillion yen, for fear of the public debt snowball.

 

The Japanese government also said it would increase the issuance of inflation-linked bonds to 1.6 trillion yen for the fiscal year 2014/2015. Average maturity of the bonds in 2014/15 the five months to eight years, while for the current fiscal year, the average maturity of seven years eleven months.