News and Reviews Asian Economic Zone

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Trade Balance Deficit Kian Swell

Monday, April 21, 2014

 

Weak export growth in Japan today has led to ballooning trade deficit in March , so it adds to the challenge for Prime Minister Shinzo Abe in running economy after the sales tax increase April 1.

 

According to the Ministry of Finance in Tokyo today , the deficit balance ( the trade balance ) recorded growing to 1.45 trillion yen ( U.S. $ 14.1 ) . That figure is much different with the median estimate of 28 economists in a Bloomberg News survey predicted a deficit of ¥ 1.08 trillion .

 

While overseas export figures rose by 1.8 % , slipped away from the previous month at 9.8 % and the rate below 6.3 % prediction . While the level of imports surged by 18.1 % , more than doubled from the previous month in the 9 % .

 

The amount of expenditure before the tax increase has pushed the demand for foreign goods , while the surge in energy prices due to the weakening of the yen and the lid nuclear facilities has also raised the largest deficit figures for the month of March.

 

On the other hand , the decline in consumer confidence suggests domestic demand will continue to weaken . While confirming the export slowdown in external demand will fail to provide much support to the economy during this quarter .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Turn Back the Japanese Commercial Data Speculation BOJ Stimulus

Monday, April 21, 2014

 

The rate of annual growth rate of Japan's exports slowed sharply in March due to reduced levels of exports to China , raises doubts that the recovery in external demand could help cushion the impact of the sales tax increase on 1 April. Data from the Ministry of Finance showed the level of exports rose 1.8 % in March from a year earlier , following a 9.8 % increase in the previous month , and well below economists' expectations for a gain of 6.3 % . Weak export sector pushed Japan's trade deficit to a record 13.75 trillion yen tiggi in ( 80.05 billion pounds ) for the fiscal year ending in March .

 

The current data add to a spate of data including capital spending and private consumption , which has reignited expectations that the Bank of Japan will release additional stimulus this summer to support the growth rate . After go faster than other developed countries in the first half of last year , the Japanese economy has slowed in recent quarters as the impact of the aggressive stimulus fading Tokyo . Anxiety deeper correction has pressured investor sentiment and the stock market this year , even though Japan is government said it had prepared to see a short-term decline in the growth rate . The BOJ has repeatedly dismissed speculation pelonggaranlebih further , insisting that the economy is on the path to an inflation target of 2 % , but may be more severe burden to the government to take further steps to sustain the business investment sector .

 

" The level of exports is weak because Japanese products less competitive as it once was , " said Yasuo Yamamoto , senior economist at Mizuho Research Institute . " This indicates the economy will be difficult to recover after the sales tax increase . Government must amend its growth strategy to make Japan more competitive company . "

 

The weakening of the export sector - a major driver of the third largest economy in the world - has become a concern for the government , which relies on exports to help dampen decline in domestic demand after sales tax hike to 8 % from 5 % . Japan's exports to China rose to an annual pace of 4.3 % in March , marking a slowdown from an annual pace of 27.6 % in February . The export sector is still difficult to reach despite the weakening yen , which pushed the cost of imports , which resulted in a record trade deficit of 21 consecutive months .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Destroy Pension Fund Committee

Tuesday, April 22, 2014

 

Japan to revamp government pension fund committee , Government Pension Investment Fund ( GPIF ) . The reshuffle is expected to encourage Japanese pension funds to pursue a more aggressive investment so that it can provide returns for retirees over Japan . The Committee will be in charge of determining how many servings of investment allocation to bonds , stocks , or other investment instruments . GPIF is the world's leading institutional investors with investment capacity reached $ 1.26 trillion .

 

Japanese Ministry of Health , Norihisa Tamura , reduced the number of committees from 10 to 8 in which two members of the old committee still maintain his position . The composition of the committee still has its share of well-balanced academic and economist . The reshuffle is expected to encourage the committee to lower portion GPIF investment in Japanese government bonds and increase the portion of the allocation of investment in shares of Japanese companies . Last GPIF investment allocation determines 12% of the funds placed in the stocks of Japanese companies , 60 % in Japanese bonds , 11 % in foreign bonds , 12 % in shares of foreign companies , and 5 % of assets in short-term duration . GPIF new committee will release the latest investment allocation in the coming months .

[mynameisandhy]

News and Economic Review Zone Asia

 

Japan - China Relations Back Heats up

Tuesday, April 22, 2014

 

Japan's relationship with China back heat after Prime Minister Shinzo Abe give offerings to the shrine . Although Abe did not do a direct visit to the Yasukuni shrine , but such action can provoke anger China which once colonized by Japan . Chinese see the shrine as a place of respect for the Japanese fighters in World War II and Japan's symbolic visit of high-ranking Japanese sinyalkan there can not admit a mistake he has done in the past .

 

Meanwhile , the Chinese court seized vessels owned by a Japanese company , Mitsui OSK Lines , due to the company's failure to meet its contractual obligations during World War II . This is the first time the Japanese company's assets were seized as compensation to the incidence in the era of World War II . Japanese Government regrets the decision of the Chinese courts , while Mitsui still reviewing the decision.

 

Meanwhile , the Nikkei subtract strengthening in Asian session as concerns over the spread of Chinese diplomatic relations with Japan . Nikkei futures are now traded 14540 ; away from daily highs 14660 .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Manufacturing PMI Improves , But Still contracting

Wednesday, April 23, 2014

 

Activity in China's manufacturing sector contracted for the fourth consecutive month in April , according to a survey of private sector on Wednesday , but improved from March . These data indicate that the government's efforts to tackle the economic slowdown has only a limited impact . Manufacturing sector PMI from Markit / HSBC is at 48.3 , better than the 48 in March . While the data was better than that in March stood at 48 , but the PMI remained below the 50 level which distinguishes between expansion and contraction .

 

China's central bank said on Tuesday it would cut the reserve requirement ratio ( RRR ) - the minimum amount of deposits that must be owned by the bank - for banks , current policies to help overcome the slowing economy . RRR will be cut by 2 % for commercial banks and 0.5 % for public lending institutions , according to the statement of the People 's Bank of China on its website . Post pemagnkasan the RRR for some banks will reach as low as 13 % , the central bank said . China's economy by 7.4 % perutmbuhan reported in the first quarter , down from 7.7 % in the previous quarter , but better than market expectations of 7.3 % larger .

 

" The level of domestic demand showed little progress and deflationary pressures have subsided , but the risk of a slowdown in the rate of growth is still seen as the level of new export orders and employment contract , " said Qu Hongbin , an economist at HSBC in Hong Kong . He said that there may be a policy that will be taken in the coming months to prop up growth .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Yen Optimistic Ahead of Tomorrow 's CPI data

Thursday, April 24, 2014

 

Yen maintain gainnya for the first time in nine days against the dollar on speculation the data to be released tomorrow will show inflation accelerated in Tokyo -the most in more than two decades , eroding the chances of additional stimulus from the Bank of Japan . The euro also strengthened against the U.S. dollar ahead of a report today forecast business conditions index in Germany rose to a 2 year high . Diperkurakan U.S. data today will show orders for durable goods grew at a slower pace in March . The New Zealand dollar gained against all major currencies after the central bank raised interest rates for the second time in two months and raised its growth forecast for the year ending in March .

 

" The BOJ and the market is focusing on both the Tokyo CPI data , the first release after the sales tax increase , " said Yujiro Goto , senior currency strategist at Nomura International Plc in London . " The results were much higher will likely reinforce expectations that the BOJ will revise its inflation projections and pushed back the time of addition of the stimulus . CPI data can be a trigger for the strong yen . "

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan CPI Fails to Satisfy Market Participants

Friday, April 25, 2014

 

The Japanese government's efforts to end deflation really heavy obstacles . The fact was revealed in a report the consumer price index or inflation nationwide today.

 

Tokyo's core consumer prices , excluding fresh food , rose 2.7 % in the month of April 2014 compared to the same period last year . But the surge is mostly due to the effect of the increase in the sales tax ( VAT ) applicable from April 1 , in which a direct impact on the dynamics of prices in the market . If no tax effect into account , the core price increase of only 1 % or the same as last month .

 

As for Japan's core nationwide consumer prices in March ( before the enactment of the VAT hike ) up 1.3 % compared to the same period in 2013 or has not changed in the last three months . The data is also lower than the estimated increase in market participants 1.4% .

 

The results of the most recent data further strengthens pessimism about the government's ability to hoist the level of inflation to 2 % by 2015 . Monetary easing undertaken by the Bank of Japan since the beginning of this year was able to improve the performance of the economy and raise prices in the market , but the effect was not as expected by economic agents .

 

Consumer price outlook more uncertain because of relatively strong Yen exchange rate against the dollar . Though weakening currency is a government weapons to boost the competitiveness of Japanese products abroad . If this situation continues, then the trust company's business and financial institutions will fall . The Japanese economy is expected to contract or slowdown in the second quarter 2014 , due to be affected by a tax increase . International Monetary Fund ( IMF ) predicts Japan's economy to grow 1.4 % this year before declining again to 1 % next year .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese bond market seems Ignore Inflation Data

Friday, April 25, 2014

 

Bank of Japan officials increasingly worried that the Japanese bond market ignored rising inflation , raising the risk of a sudden rise in yields , according to one source close . 10-year Japanese government bond has a yield of 0615 % , virtually unchanged from March , 2013, even after the increase in the consumer inflation rate almost 2.5% since then . Yield stuck down by the BOJ bond purchases , in part of monetary stimulus that was released pious BOJ Governor Haruhiko Kurdoda last year .

 

While Kuroda has said easing should provide downward pressure on bond yields , it does not mean the BOJ does not have a target to yield , according to sources . Anxiety among BOJ officials showed dilemma for central banks to withstand bond yield remained between low so that the growth can be strengthened and to avoid interference that can disrupt the market economy . BOJ officials expect bond yields to rise gradually , in accordance with the development of the economy and inflation , the source said .

 

" I am very worried about the risk of a sharp rise in yields , " said Mitsuru Saito , chief economist at Tokai Tokyo Financial Holdings Inc. . " The BOJ pressing yields down by buying bonds . If the BOJ provide clues expiration of the policy , there is the possibility that long- term bond yields will rise sharply . If that happens , I do not know how to yield to pressure the BOJ kept low , it will be difficult times . "

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Workers Wages Increase in Expected Inflation Achievement Help Japan

Wednesday, April 30, 2014

 

The bright spot is received Bank of Japan today , linked to efforts to improve conditions for domestic employment . The latest report from the labor sector is believed to assist in the achievement of national inflation .

 

Total wages earned by the average worker in Japan rose as much as 0.7 % in March compared to the same period the previous year . The percentage increase was the highest in the last two years as well as a good news for the central bank . As is known , the Bank of Japan is struggling to hoist the ideal target inflation of 2% . With the increase in wages , the impetus for the rise in prices of consumer products will be even greater .

 

Even so , the increase in the salaries of employees not purely derived from the salaries they receive . The increase was caused by a surge in special revenue figures such as annual bonuses and overtime pay rise as much as 4.8 % . Even if calculated per component , base salary workers declined 0.4 % for the second month in a row 22 . The basic salary will go up in April in the middle period of the new labor contract negotiations between companies and employees . However , the financial institution Goldman Sachs assess future wage increases also offset by a decrease in overtime hours . Given this since early April , the government has imposed a new sales tax hike that the company should automatically reduce overtime for the sake of efficiency .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Chinese Bank Loans Not to Give Requested Iron Ore Importer

Thursday, May 1, 2014

 

China Banking Regulatory Commission warned banks there to tighten lending to importers of commodities , particularly iron ore . The warning was made ​​as employers of domestic steel is often imported from overseas ore Besai post production capacity restriction rules made ​​by the government .

 

The Chinese government has made rules on the reduction of iron ore production for the raw materials for reasons of environmental pollution and cutting losses . Unfortunately, this policy would encourage local steel producers to import raw materials from abroad so Besai contract iron ore prices dropped 5 % on Monday . Based on that authority then issued a warning to banks that did not sign a letter of credit for importers of iron .

 

Employers steel and traders often take advantage of reasons lately imported raw materials as a way to get credit from banks . According to Beijing , in this way belong to the shadow banking activities , the rules themselves are still very opaque . Since the property market can no longer be used as land speculation , the trader is looking for ways to bet money . One way is to ' play ' in the iron ore market using credit facilities from banks .

 

The government is worried that the bankruptcy of several steel companies led to the failure to pay their debts to the banks and affect the local government 's financial burden . This should be because the majority of steel companies absorb labor from the locals and who do not pay taxes to the local government small .

 

Industry itself admits he can not do much over the stern warning issued by the authority . " Because we were difficult to find a loan , then the many who use a letter of credit with the bank . Way it does not break the rules , but we 'll let the government run their authority , " said Qu Xiuli , deputy secretary general of China Iron and Steel Association .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Abe Want Japanese Labor Sector Improvement

Friday, May 2, 2014

 

Prime Minister of Japan, Shinzo Abe, said the wage rate and the amount of labor must be increased so that Japan could end deflation. "Improvements in the labor sector plays an important role to overcome deflation," Abe said on a visit to London. "Improving sentiment among small companies and start menengan showed improvement felt by the public." Abe has promised to restore the Japanese economy by running a fiscal stimulus, reduced business regulation, run the structural changes, and re-activate the nuclear industry.

 

Abe will express Japan's focus on improving growth while still ensuring fiscal health. "The Japanese government will revise labor laws and improve the tax system," said Abe. "The increase in the sales tax does not reduce the rate of consumption as feared. More and more people are now more optimistic.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Household Spending Jumps in March

Friday, May 2, 2014

 

Of Sales tax hike in Japan on April 1, making many consumers do pembalian thus making Japanese household spending rose in March. Japan Statistics Bureau reported household spending rose 7.2% in March from the same period the previous year. Sales tax hike to 8% from 5%, to trigger the surge.

 

Japan sales tax hike for the first time in 17 years is seen as the key to alleviate huge national debt, but also will result in low concern household spending could hit Japan's economic recovery.

 

Another report showed Japan's unemployment rate remained at its lowest level in six years by 3.6%

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Kuroda : Impact of Tax Increment Japan unstoppable

Monday, May 5, 2014

 

The impact of the consumption tax hike to the Japanese economy is not as bad as feared , says the head of the central bank , which predicts the impact of the tax increases under control and the economic recovery will continue in the third quarter . Japan last month to raise the sales tax to 8 % from 5 % to reduce the amount of debt that has been shut down , Japan has a debt to GDP ratio is the second largest in the world , but the decision was attacked by critics who warned that such a move could menghampat economic recovery .

 

Bank of Japan Haruhiko Kuroda, warned that while the consumption rate has dropped dramatically since the tax increase glance , he is still optimistic that the Japanese economy can be separated from the bad effects . " Shortly before the consumption tax hike , kosnumsi rate on goods that can not be shipped , such as automotive and other skyrocketed , although this time down quite sharply . However , the decline has been estimated post- tax increase or a little more than we expected , " said Kuroda . " So we think the impact of consumer tax increases can be contained and the economy will start to recover in the July-September quarter , " he added .

 

The BOJ also set a target inflation rate of the consumer to be 2 % by the end of fiscal year 2015/2016 , which according to Kuroda is still on track . " When we start the new monetary policy framework in April , the inflation rate is at 0.5% . Currently stands at 1.3 % . So in 12 months , the inflation situation has changed significantly , " said Kuroda . Regarding the growth rate of wages , which is difficult meyamai increase in the rate of inflation , Kuroda said the unemployment rate is still at a low level close to 7 years at 3.6 % in March , is a good signal . " The level of wages began to rise and we expect nominal wages will continue to rise , along with the improvement in the labor situation , which means that the company's revenue will rise about 3 % , " he said .

 

Kuroda declined to comment more about the prospect of additional measures of the BOJ , which promises to increase the money supply at an annual rate of sebeasr 60 trillion yen to 70 trillion yen , but officials said the BOJ is ready to take action if needed . " Consumer inflation target of 2% is still far away . We are only at the half way so far , but there are still plenty of risks including the risk of a decline ... if needed we can add or adjust our monetary policy without a doubt , " he said . " In this stage the economy has managed to cope with the effects of consumption tax increases , so that the domestic situation might be fine , but external factors are difficult to predict and overcome , " he added .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Technology Stocks Shoot for the Shanghai Stock

Tuesday, May 6, 2014

 

China's stocks rose for a fourth day , the longest rally in a month , as the technology and telecommunications stocks index rose .

 

GoerTek Inc. stock . , Which is a supplier to Apple Inc. . , Towards the biggest gain since March 12 . Fiberhome Telecommunications Technologies Co. stock . rose as much as 3 % . Shares of Inner Mongolian Baotou Steel Union Co. . rebounded from the lowest level in three years after getting approval from regulators to buy assets from its parent company .

 

Shanghai Composite Index rose 0.5 % to 2,036.83 at the break hours trading , extending strengthening by 1.2 % during the last three days . The index had slumped to its lowest level in a month last week over concerns on slowing economic growth and the sale of new shares that will divide the funds from existing equities .

 

" The market has stabilized after the negative news about the sale of new shares , " said Wang Weijun , an analyst at Zheshang Securities, Co. . , In Shanghai . " We expect there will be rebounb thin at this level . The increase is more than likely not going to happen unless there is a loosening of monetary policy on a large scale .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China Service Sector Activity Decreases

Wednesday, May 7, 2014

 

Chinese service sector activity decreased in April by the rate of employment growth fell to a seven-month low, according to a survey released by HSBC. China's service sector index (version HSBC) is reduced to a level of 51.4; lower than the March publication was at 51.9. The survey also showed the input price index showed the weakest performance in 10 months. It certainly can provide an additional signal of the threat of an economic slowdown that was overshadowing China.

 

The service sector contributes 46.1% to the GDP of China in 2013. Role of the service sector is quite large even the role of the manufacturing sector has gone through ever hire more workers in 2011 ago. The fall in the rate of employment growth in the services sector will certainly get the attention of Beijing considering the previous Chinese government has put job creation as a top priority for 2014.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Value Exports And Imports China Trade Rise In April

Thursday, May 8, 2014

 

China's exports and imports rose unexpectedly in April , helping leaders in the country put back economic base is slowing .

 

Number of Shipments abroad rose by 0.9 % from a year ago , when the figures previously reported in gelembungkan with fake invoices , data from the customs agency show today . That compared with the median estimate for a decline of 3 % in a Bloomberg survey of analysts . The value of imports rose by 0.8 % , leaving a trade surplus of $ 18.46 billion .

 

The strengthening of trade data might affect the leaders who will use the path for monetary easing or stimulus in a larger scale than the expenditure for rail or tax breaks , after growing at a slower first quarter in the last six periods . China will implement measures to stabilize the foreign trade situation " which currently looks complicated and heavy " , was said by the cabinet last week .

 

The value of exports fell by 6.6 % in March from a year ago and declined by 18.1 % in February , which was the biggest drop since the global financial crisis , according to data in previous releases . Estimates for the month of April from 47 economists ranged from a decline of 7.5 % to an increase of 3.6 % .

 

The value of imports compared with the median estimate for a decline of 2.1 % from analysts surveyed by Bloomberg , while the earlier trade surplus is projected to be $ 16.7 billion .

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's April inflation figures Push to Loosen Monetary Belt

Friday, May 9, 2014

 

China's consumer inflation slowed in April in a faster pace than expected . The slow pace of price increase is believed to force the government to issue a policy that is more supportive .

 

Consumer price index (CPI ) rose 1.8 China's April issue % compared to the same period in 2013 . Results were lower than market expectations ( 2 % ) and also below the ratio of the annual increase in March , 2.4 % . The decline in food price inflation drags core component price declines . Vegetable prices fell 7.9 % compared to 12 months ago and the price of pork fell 7.2 % . This fact is increasingly hamper efforts to achieve the ideal inflation since last March , the price of vegetables and pork had dropped 12.9 % and 6.7 % .

 

According to the financial institution Bank of America - Merrill Lynch , the amount of consumption and investment in China was weakened . Consumption declined in the midst of an anti - corruption campaign launched by various segments of society and government . This means that the upper classes have been the biggest consumer for economic agents begin to be affected by the anti - corruption movement . Unfortunately at the same time , the growth of the minimum wage is so low that Chinese citizens are not too jor - fishing rod in spending money .

 

While Nomura analyst team expressed concern over the slowdown in the property sector phenomenon . Nomura economists claim sluggishness in the sector have an impact on the rate of economic slowdown . " We believe that the weakening property sector has begun and will threaten growth in 2014 , " commentator Nomura in a report .

 

To cope with low inflation , the two banks are judging there will be some changes made by the People's Bank of China ( PBOC ) . Authorities could have just released a new policy that aims to increase the liquidity of money in the financial system . How can the keep the interbank interest to remain low and designed the Yuan exchange rate weakening . In addition , the government also has space to launch a mini stimulus and accelerate fiscal spending to hoist the request . Monetary easing is a prerequisite for the central bank when it wants to rise to the level of the consumer price level is ideal .

 

Merrill - Lynch predict consumer price inflation will rise to around 2.3 % in May , taking into account the stability of food prices . While Nomura estimates that CPI inflation will rise gradually in the next few months along with the rate of economic growth . Nomura sees inflation will reach 2.6 % in the second quarter and 2.8 % at the end of next year , or equal to the inflation record of 2013.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan's Current Account Surplus Decreases

Monday, May 12, 2014

 

The current account surplus ( current account ) Japan continues to decrease as the structural changes in the economy hamper Prime Minister Shinzo Abe's efforts to spur growth through export machine . The annual surplus only reached ¥ 789.9 billion ; lower than last year's ¥ 4.2 trillion . This record even the smallest annual current account surplus as Japan typically recorded a surplus above ¥ 10 trillion per year . While the monthly current account surplus reached ¥ 116.4 billion in March; lower than the prediction of ¥ 305 billion and ¥ 612.7 billion in February publication .

 

Abe administration has introduced an inflation target policy and called for aggressive monetary policy . Although the BoJ easing managed to overcome the threat of deflation and lead to a weaker yen , but is not able to stimulate Japan's export activity . Japanese exporters can not feel a significant impact from the weaker yen because most Japanese companies to relocate their factories overseas . On the other hand , the weakening of the yen has made imports more expensive costs as Japan increasingly dependent on imported energy to drive economic activity . Surplus trend has reversed course in 2011 when the Fukushima nuclear crisis forced Japan to close all nuclear power plants .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Yen Weakens As Stocks Rise in Asia And Europe

Tuesday, May 13, 2014

 

The yen weakened for a third day against the dollar as stock markets in Asia and Europe rose , the conditions have reduced demand for safe-haven assets such as the Japanese currency .

 

The yen fell against all but two of the 16 currencies amid speculation that the Japanese economy is behind his peers and the central bank will need to add more stimulus . The dollar approached its strongest level in a month against the euro before the release of a government report that analysts say will show retail sales rose in April . Meanwhile the Australian dollar fell after data showed industrial production and retail sales slowed in China , which is their biggest trading partner .

 

" The interest in risky assets have increased gains in which it has fueled sales of the yen , " said Junichi Ishikawa , an analyst at IG Markets Securities Ltd. . in London . " Chinese data have mitigating the impact on the Aussie , although the decline is also limited . "

 

The yen weakened in the afternoon at about 0.2 % at 102.30 at 15:27 pm after depreciating to 102.36 , which is the weakest level since May 2. The Japanese currency fell by 0.3 % to 140.85 per euro . The dollar rose 0.1% to $ 1.3767 per euro after rising to $ 1.3745 on May 9 , which was the strongest level since 8 April

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

PBOC Want to Accelerate China Housing Lending

Wednesday, May 14, 2014

 

China's central bank calls for major banks in China to accelerate the housing loan portfolio as part of efforts to prevent excessive economic slowdown. People's Bank of China (PBOC) to give 15-announcing banks to improve service efficiency in housing loans to qualified buyers. The PBOC also encouraged banks to prioritize housing loans to families for the first time home buyers.

 

The housing sector has now become one of the obstacles to the economic growth of China. Developers have to deal with the number of unsold property units have to delay the project so that the next property. Recent statistics show home sales in China fell 18% for the month of April. This is an effect of China's strict policies being run in the last 4 years in order to withstand a surge in property prices.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese economy accelerated in First Quarter

Thursday, May 15, 2014

 

Japanese economy in the first quarter is growing at the fastest pace since the third quarter of 2011. Increased corporate investment and consumer spending before kenaiakan high sales tax ! April to support the growth of the Japanese economy . The increase in consumer spending was recorded to be the highest since 1997 , while capital expenditures are at the fastest pace since 2011 .

 

Cabinet Office said Japan's gross domestic product in the first quarter grew 5.9 % from the previous year , the figures were higher than economists' forecasts of 4.2 % . While from the previous quarter , GDP grew 1.5 % higher than the estimate of 1.0 % .

 

Consumer spending in the first quarter rose 2.1 % from the previous quarter , to be the highest since the first quarter of 1997 when it rose 2.2 % . Capital spending jumped 4.9 % , being the highest since the final three months of 2011 when it rose 8.2 % . While public investment fell 2.4 % from the previous quarter

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Report ' Bad Loans ' Grind Hang Seng China

Friday, May 16, 2014

 

Hong Kong's stock exchange floor trading was corrected in a weekend (Friday , 16/5 ) as a result of investors to sell with profit-taking .

 

The sentiment erupted after reports of Chinese authorities yesterday that it recorded the non-performing loans ( bad loans) experienced the sharpest spike since 2005. Consequently selloff was unavoidable once posted a profit in the weekend .

 

Listed shares Bank of China and Agricultural Bank of China shares each fell 0.9 % . While CNOOC shares fell 1.4 % , China Overseas Land dropped to 2.6 % , and 1.6 % eroded Lenovo shares .

 

While Cathay Pacific airline stocks also eroded 1.6 % , though its subsidiary - Dragonair passengers increased by 10 % in the month of April.

 

The main Hang Seng Index recorded weaker ( -0.67 % ) and eroded ( -152.23 ) points to the area of ​​22578.63 . While the Hang Seng index fut also eroded by ( -0.45 % ) or ( -101 ) points at 22449 area .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Machinery Orders level soared in March

Monday, May 19, 2014

 

The level of core machinery orders in Japan soared as much as 19.1 % in March , signaling that corporate Japan is becoming more positive towards business investment , according to data on Monday . The increase in the level of machinery orders , which is considered as an indicator of capital spending in the coming months , compared with an increase of 6 % estimated by economists .

 

" It can be a sign that the level of demand triggered by the stimulus so far today turned into a growing level of private demand for the Japanese , and this can be a very good sinyla , " according to Takuji Okubo , chief Japan economist at Macro Advisors . " GDP data on Thursday showed that the signal level of exports and capital spending began to grow , so that today's data is further confirmation that Japan may be in a solid spur growth , " he added .

 

Data last week showed Japan 's economy grew at an annual pace of 5.9 % in the first quarter , scoring the fastest growth rate in nearly 3 years following the increase in the level of consumer spending ahead of the sales tax increase in April to boost economic activity . Compared with last sethaun , level core machinery orders rose by 16.1 % , above analysts' estimates for an annual rise of 4.2 % . The Bank of Japan will bertemua this week and is not expected to take new policy measures . Analysts say the central bank will probably maintain optimistic outlook on the economy .

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Yen Optimistic Look forward BOJ decision

Tuesday, May 20, 2014

 

The yen held near 3-1/2 month highs against the dollar and the euro on Tuesday , supported by expectations of a loss of stimulus by the Bank of Japan and also the decline in the U.S. and European bond yields . The dollar traded around 101.48 yen level , a day after being down to 101.10 yen , its lowest level since early February , breaking down MA200 day at 101.25 yen . The penetration MA200 today the subject of discussion among traders considering the dollar managed to hold above that level except in October-November last year . The dollar has been trading in a strong position since the end of 2012 and then as Prime Minister Shinzo Abe launched the fiscal and monetary easing aggressively to revive growth . As a result , the decline down MA200 potentially be a turning point in the trend of a weaker yen .

 

A stronger yen also occur when the reduced expectations of short- term monetary easing by the Bank of Japan BOJ governor as Haruhiko Kuroda has maintained a positive assessment of the Japanese economy in recent weeks . The BOJ is expected to keep its policy on two- day meeting that began on Tuesday , with traders waiting for today's post- meeting press conference Kuroda . " If Kuroda made ​​dovish comments tomorrow , the dollar / yen will probably stay above MA200 days . Yet if she deliberately emphasizing optimistic outlook on the economy , the market would consider it a signal that he accepts the strong yen and a decline in the stock market , " said Osamu Takashima , chief currency strategist at Citigroup Securities in Tokyo .

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

the Bank of Japan Keep up Monetary Policy

Wednesday, May 21, 2014

 

Bank of Japan ( BOJ ) maintained its monetary policy on Wednesday , promised to raise the monetary base at an annual rate of 60-70 trillion yen sebeasr . The central bank also did not change the overall assessment that the country 's third-largest economy in the world continues to slowly recover , but revised up its forecast capital expenditure , feel more confident with the growing evidence that the economy can cope with the effects of the sales tax increase without any additional monetary stimulus .

 

BOJ Governor Haruhiko Kuroda will hold a press conference at 15:30 pm , and is expected to re- affirm his optimism that Japan is on track to achieve the central bank 's inflation target of 2% a year from now, the existence of eroding market expectations of monetary easing in the near future . Such comments may be re- strengthen the yen , which is currently being ekat 3-1/2 month highs against the dollar as expectations for further steps from the BOJ fading , analysts said .

 

The BOJ also added a sentence in the statement stressed that the quantitative easing policy has " resulted in the desired effect " and eliminate a phrase that describes Japan is in deflation , underlining confidence in order to achieve the inflation target without additional stimulus . But Kuroda also seems to remind the market that the central bank is ready to take action if the risk can not achieve the inflation target , given the continued weakness in the export sector

 

" The BOJ has judged that the increase in capital expenditure is quite sturdy as more companies are facing constraints on their capacity , " said Hiroshi Miyazaki , chief economist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo . " The last time the level of labor demand and labor reached as high as it is in about the year 2008 , and inflation went up 2 % . Memperikan This belief that the BOJ could reach its target , so the expectations of further easing will be eroded