The stock Exchange of Thailand reached their highest levels since 1996 in the first September session, after the political situation in Asian countries has improved considerably over the past three months. The increase in gross domestic product (GDP) and the financial performance of local companies during the second quarter, meanwhile, improved investor sentiment about the largest economy in Southeast Asia. The Chief of Thailand SET stock index advanced by 0.6 percent to 918.31 points, led by banks and energy companies. It’s time to end the session at the highest level since December 1996 when the Asian financial crisis dealt a severe blow to most securities markets in the region. Of Thailand Baht more expensive in turn by 0.4 percent to 31.17 baht per dollar, which is at its strongest rate since March 2008 onwards. SET was up 27 percent from its lowest point this year, which reached in May during anti-government protests in the country, which killed 89 people. Because of political tensions in Thailand, foreign investors sold shares of local companies for a record 1.9 billion dollars in May. In August, they bought shares for 505 million dollars, one of the most active investors in the country is known investor Mark Mobius.
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Manufacturing in China increase its growth rate in August, which fell to its lowest level since early 2009 in July. Better than expected data on Chinese industries have shown that Asian country is able to maintain its growth momentum despite the economic climate deteriorated globally in recent months. Index of business activity in the factory sector rose to 51.7 points in August compared to 51.2 points in July. Its value lies within the area of growth over 50 points for the 18th straight month, topped market expectations, as reported by China Federation of Logistics and purchases (CFLP). They were in line with those of HSBC Bank Institute and market Markit Economics, which in turn is calculated index of business activity in the manufacturing sector of China. Its value for August rose to 51.9 points in July after having fallen to 49.4 points. The growth of manufacturing sector in China in August soothe concerns that the gross domestic product will significantly reduce its growth rate in the second half of the year. Oil prices rose, while the regional MSCI Asia Pacific Index advanced by 0.5 per cent in the first September session in Asia. China’s GDP grew by 10.3% yoy in the second quarter, reducing its growth rate to 11.9 percent growth recorded in the first quarter.
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The Philippines economy unexpectedly accelerated its growth rate in the second quarter, which reached its levels before the financial crisis in mid-2007. Consumer spending and the state contribute to the growth of gross domestic product (GDP) of the country by 7.9 percent annually. During the first three months of this year Philippine economy also reported high annual growth of 7.8 per cent. The increase was more than expected growth of 6.3 per cent and is the largest of the second quarter of 2007. Philippine economy proved more resilient to slowing world economy in comparison with neighboring Malaysia and Thailand, where growth rates fell in the second quarter. Analysts say the country’s low inflation will allow the Philippine central bank to maintain its liberal monetary policy during this month. The base rate in the Philippines fell to a record low level since 4 percent last year, expectations are that it will not change until the end of this year. This, combined with rapid rates of economic growth is expected to give impetus to the local stock exchange and the Philippine peso. Liberal fiscal and monetary policy is also aimed at raising incomes of the population, as estimated by the World Bank one in four people in the country lives on less than 1.25 dollars a day.
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The stock market indexes in Asia and the Pacific region resumed its upward movement today after the largest automobile company in the world – Japanese Toyota, increased its forecast for profit this year because of increasing sales in the U.S. and Asia. Tokyo stock indexes are best presented during today’s session, led by shares of Toyota, which rose 3.4 percent. The company management said it expects net profit of 340 billion yen (3.98 billion dollars) for the fiscal year to March 31st, 2011. Previous estimates had a positive financial result of 310 billion yen. The main Japanese stock index Nikkei 225 rose 1.7 percent to 9 653.92 points while the insurance protection from bankruptcy, the Japanese state fell to its lowest level in three months. The rate of the yen has remained almost unchanged against the dollar today after yesterday jumped to its highest level in 15 years. Stock optimism in Japan was also supported by remarks of the Prime Minister of the country forms of the Khan, who said the government is prepared to grant a new impetus to the economy by using the current budget provisions. He fears that high unemployment and expensive yen would hurt the economic recovery of the country.
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The stock market indexes in Asia and Pacific region rose, led by energy and financial companies for second consecutive day. They helped the regional MSCI Asia Pacific index to reach its highest level in three months, while the main stock measure in India – BSE Sensex 30 rose to peak for the last two and a half years. MSCI Asia Pacific, which includes almost 1000 stock companies from ten Asian countries plus Australia and New Zealand moves to increase by 0.5 percent to 121.33 points and is on track to finish today’s session at its highest level 5 May onwards. Japan’s Nikkei 225 rose 1.3 percent to 9 694.01 points and was best performing among all regional indexes. The main Indian stock indicator BSE Sensex 30 rose by 0.2% to 18 103.04 points, led by shares in the banking sector, led by ICICI Bank, which yesterday announced a 17% increase in profit for the second quarter and 15 percent expected growth lending. BSE Sensex 30 rose by 3.6 percent this year and is near its highest level since February 2008. In Hong Kong’s Hang Seng rose by 0.2% to 21 457.66 points, also supported primarily by financial shares because of good financial results in two of the largest European banks – HSBC and BNP Raribas announced Monday. Indices in Taiwan, South Korea, Sri Lanka and Thailand also rose, as their lead was reduced in the range of 1%.
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Another evidence of slower growth in the global economy in the second half of this year came from China after it became clear today that the manufacturing sector of the country has shrunk for the first time in 17 months in July. Data for China’s manufacturing sector are important for global financial markets because the country’s third largest economy in the world and one of the biggest consumers of raw materials. Index of HSBC, which monitors business activity in the factory sector, China dropped to 49.4 points in July from 50.4 points the month before. Its value thus fell into the pessimistic zone below 50 points for the first time since April 2009, says CNN. Separate data on China Federation of Logistics and purchases (CFLP) on the weekend showed that the official index of the Chinese government for business activity in the manufacturing sector fell to 51.2 points in July from 52.1 points the month before. That is its lowest level, also from April 2009 onwards. Most clearly for the contraction in the sector said the drop in the volume of new orders. Contraction in production in China may worsen the economic mindset of investors, especially since the U.S. government announced late last week that the U.S. economy has slowed more than expected to 2.4 percent pace its growth in the second quarter.
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The heads of the International Monetary Fund (IMF) are split on whether the Chinese yuan is undervalued. Thus, the organization transferred the differences between U.S. and China on monetary policy in the Asian country. Some board members say the organization that claims that China’s exchange rate is undervalued, based on “vague forecasts for the current account surplus country, it is clear from the statement distributed after the last meeting of the organization. The Chinese yuan rose is less than the rate against the dollar for the last month, although U.S. push for faster appreciation of yuan. On 19 June the authorities in China announced that they no longer practical policy fixed exchange rate of yuan to the dollar and that will be pursued more flexibility. “Directors welcomed the decision to return to the regime of managed floating exchange rate,” it said in the opinion of the meeting. “This decision will increase the flexibility of the central bank to tighten monetary policy,” said the heads of the IMF. Today, the Chinese yuan was at 6.7792 yuan to the dollar after a period of two years – from July 2008 to June 2010 was held at 6.83 yuan to the dollar. “Many directors maintain that over time a strong yuan will help the transition from investment to exports and private consumption as the main driver of growth, it is clear from the opinion.
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The stock markets in Asia and the Pacific region remained positive momentum from the previous two sessions and rose for a third day, leaving the regional MSCI Asia Pacific Index to its highest level last month. Increases in the U.S. indexes and good financial results for the quarter a number of companies in the region supported the optimistic stock investors today. Among the most profitable for banks, they had relaxed rules governing the capital adequacy of banks, which were announced by the Basel Committee. He was instructed by the leaders of the G-20 to establish new rules to regulate the financial sector because of the severe consequences of the financial crisis. MSCI Asia Pacific, which covers the stock markets in ten Asian countries, Australia and New Zealand increased by 0.4 percent to 118.49 points. After winning the last three sessions, it is a 8.2% below its highest point this year, which said on April 15. Exchange in Australia S & P / ASX 200 rose 0.3 percent to 4 497.40 points after the index of leading indicators showed that the Australian economy will continue to grow in the second half of this year. He rose for the third consecutive month in May, increasing by 0.3 percent compared to April.
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The RBI decided to increase the base rate in the country with a quarter point to 5.75 percent. This is the second increase in interest within one month, the goal of tightening monetary policy to combat inflation. Over the past five months the appreciation of life in India is two-digit, and in July is expected to increase producer prices by 11 percent annually, Air Force forward. With a major contribution to this rise in prices of food and fuel. Last year, India became a victim of the biggest floods for the past 37 years. This significantly reduce agricultural harvests and the prices went up, the agency adds. Against the backdrop of high inflation in India and the government expects strong economic growth of 8.5 per cent this year. Today it became clear that India will also begin conducting stress tests of the banking system. Unlike the U.S. and Europe, however, the Government plans to introduce a regularity and banks to be tested every six months.
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The Labour Commissioner Karel De Guh said that China should improve investment opportunities for foreign companies in the country, said “serious questions” that puts European business practices in connection with the Chinese procurement market, says the Wall Street Journal. During his visit to the Shanghai World Exposition (World Expo) Guh stressed that China should ensure transparency and openness of its market procurement and noted that all the rules that distort competition, hampering economic growth. In response to remarks by European Commissioner, Chinese Vice Minister of Commerce Gao Huchan said that the policy of the Chinese government is strongly opposed to protectionism. Guh said that Chinese investment in Europe remain relatively low until the GAO sees possibilities for cooperation between Europe and China in high technology and green energy. Between 2004 and 2008, European imports from China grew by an average of 16.5 percent per year, although because of the global financial crisis experienced a drop of 13% in 2009.
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