Financial Communique » Asia

The Chinese economy gives signs of cooling

Viliyana Filipova — Wed, 11 May 2011 12:33:21 +0000

The Chinese inflation slows in April, and this, combined with some other economic indicators signal a cooling economy. This fact in turn would alleviate pressure on the authorities in Beijing to keep a tighter monetary policy and currency. In April, the appreciation of life in China is 5.3 per cent per annum. A month earlier, inflation reached 32-month high of 5.4 percent. Thus, signals appear that in the second half of 2011 can expect a weakening of inflationary pressures, analysts. Food prices, which are a major driver of inflation generally fell by 0.4 percent in April on a monthly basis. Annual increase was reported by 11.4 per cent. The official target of government is the annual average inflation in 2011 should not exceed 4 per cent. For this purpose, since October the central bank increased the base rate four times and the minimum reserve requirements were very high. In industrial production and retail sales data are also published today, is reported greater than expected slowdown. These are additional signs that economic growth will cool. The industrial production growth reported by 13.4 percent yoy in April, after one month earlier was moving with an increase of 14.8 per cent. Expectations index were to rise by 14.7 per cent. The retail sales are also slowing its growth – from 17.4 percent in March to 17.1 percent in April. If the projections were for speeding up the increase to 17.6 per cent yoy.
The money supply in China as measured by M2 monetary aggregate, has its weakest growth in the last 29 months. It increased by 15.3 per cent against forecasts for an increase of 16.5 per cent. All this will likely weaken pressure on the country to change the monetary policy towards an increase in the rate of local currency. In April yuan rose by 0.9 percent against the dollar since early this year appreciation is 1.5 percent. From June 2010 onwards, when the reform was implemented in the formation of the exchange rate in China, the yuan has appreciated by 5 percent against the U.S. dollar.

10% decrease in Shanghai market for the last 4 sessions

Viliyana Filipova — Wed, 17 Nov 2010 11:33:18 +0000

The share prices on stock exchanges in Asia and the Pacific continued to fall for the fourth consecutive session, with the leading stock index in China’s Shanghai Composite increased its loss for the period to over 10%. The securities markets in China experienced the strongest decline from August 2009 until now because of growing concerns about monetary policy the central bank and the government’s intentions to control the pace of economic growth. Chinese Premier Wen Jiabao said yesterday that Beijing is considering measures to reduce the appreciation of food because of rising inflation in the country. Food prices were 10.1 percent above their levels of last October. This increase concerns that measures to curb inflation in China will reduce consumption of raw materials and the economic growth rates, which depress the prices of most traded goods delivered Bloomberg. Auctions of shares today fell regional index MSCI Asia Pacific by 0.9 percent to 129.47 points and earned him the biggest four-day loss since August 2009 amounted to 4%. The decline in metal prices fell and oil shares of mining and energy companies in the region, while the loser among the national index was Hang Seng. He slid 2 percent to 23 214.46 points after three days of record high turnover traded. Shanghai Stock Exchange broader Shanghai Composite Index fell 1.9% to 2 838.86 points and thus increase its loss for the last four sessions to 10.13 percent. Chinese central bank in October increased its key interest rate by an unexpected 2.25% to 2,5%, last week raised the minimum reserve requirements of large banks in the country.
The inflation in China accelerated faster than expected to 4.4% yoy in October. However, Japan’s Nikkei 225 rose 0.2 percent to 9 811.66 points, supported by the depreciation of the yen against most major currencies. In South Korea’s Kospi fell 0.1 percent, yesterday after the central bank increased its key interest rate for the second time this year. In Australia the S & P / ASX 200 slid 1.6 percent to 4624 points. The securities markets in Singapore, Malaysia, Indonesia, India and Pakistan were closed for celebration of national holidays.

Philippines economy with high increase

Viliyana Filipova — Wed, 25 Aug 2010 12:55:00 +0000

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.
The main stock index in the Philippines PSEi jumped 1.2 percent after good GDP data and the Philippine peso rose over 2% against the U.S. dollar. Interest rates on four-year government bonds fell while at its lowest level in historical perspective. The aim of the Philippine Government is to achieve economic growth of 5 to 6% within this year and another 7-8% next year. In 2009, GDP grew by 1.1% minimum, which is the lowest growth for the past 11 years.

Asian indexes with 3 month top

Viliyana Filipova — Tue, 03 Aug 2010 10:34:50 +0000

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%.
Australia’s S & P / ASX 200 ended the session with a growth of 0.7 percent to 4 571.60 points after the central bank left the basic interest rate in the country without changing the level of 4.5 percent for the third consecutive month. Shares of energy companies ran the most profitable, after oil prices jumped above 81 dollars a barrel for the first time since May. For stock investors’ optimism helped the U.S. data yesterday which showed greater than expected activity in the manufacturing sector of the country in July, and unexpected growth in costs of construction companies. On the negative territory but ended the session in Shanghai, where the Shanghai Composite lost 1.7 percent to 2,627 points because of renewed concerns that the government will continue with restrictions on bank lending and investment in real estate. Top loser today was the exchange in Indonesia, where Jakarta Composite slid 2.8% to 2 973.38 points for the expectation that the country ahead of interest rate increases. Them became the occasion for inflation figures yesterday which showed that the CPI has accelerated to an annual growth rate to 6.22 percent in July compared with 5.05 percent in June and 1.6 percent a year ago. The objective of the central bank of Indonesia is to maintain inflation within the range from 4% to 6% annually.

Asian indexes are increasing for third seial session

Viliyana Filipova — Tue, 27 Jul 2010 18:47:33 +0000

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.
In Hong Kong’s Hang Seng added 0.6% to 20 973.39 points, while awaiting the auction of government land, which will be held this week. Wide Chinese Shanghai Composite stock index fell however by 0,5% to 2 575.37 points, led by banks because of concerns that they will be able to recover more than 20% of loans to finance regional infrastructure projects awarded to local authorities in China. Exchange Straits Times in Singapore rose by 0.6% to 2 985.52 points. Shares of the second-largest airline by market capitalization in the world Singapore Air rose 1.8 percent after having announced a net profit of 186 million dollars for the quarter, surpassing analysts’ forecasts. Nikkei 225 also finished in negative territory, but with minimal loss of 0.1% to 9 496.85 points. Shares of Yahoo Japan rose 1.2 percent on the Tokyo Stock Exchange after the news that the company may cooperate with Google in online search business.

Asian Indexes with bad monthly report

Viliyana Filipova — Mon, 31 May 2010 14:29:21 +0000

The Asian stock indexes ended the month with moderate optimism, but generally do not think was particularly beneficial for market participants. Monthly regional index MSCI Asia Pacific reported a loss of nearly 10 per cent, which is the poor performance of October 2008 onwards. Following the retreat, which recall the presentation of the index during the period after the bankruptcy of investment bank Lehman Brothers, the average price / earnings of the companies in the index fell to 14.4. This is well below the level of 23 recorded in early 2010. Today, the index decreased by 0.1 per cent minimum to 113.33 points. The exchange in Tokyo the Nikkei 225 added 0.1 percent to 9 768.70 points, but this does not help for the removal of even part of the accumulated loss for May. In the month indicator erase some 12 percent of its value. China does Shanghai Composite slumped by 9.7 per cent for the month, continuing retreat of 7.7 per cent recorded in April. Just today, the index fell 2.4 percent to 2 592.15 points. During today’s trading session progressed Taiex in Taiwan with 1.08 per cent to 7 373.98 points. With so increase the index and the leading exchange in South Korea – KRX 100, which ended three months at 445.68 points.
By passing the session and optimism in Singapore, where the Straits Times ahead with 0.9 per cent. In Indonesia and Thailand did promotions are more confident, and amounted to 1.6 and 2.6 per cent.

Asian markets turned back

Viliyana Filipova — Thu, 20 May 2010 10:08:31 +0000

The stock market indexes in Asia and the Pacific region remained negative territory for the fifth session today because of concerns about Debt Crisis in Europe and the imposition of additional restrictions in Germany on securities trading in financial markets. The regional MSCI Asia Pacific Index fell 1.8 percent to 112.69 points and is on track to finish the session at its lowest level since the beginning of September 2009, according to Bloomberg. Regional stock measure goes down rapidly in the last month, having completed all sessions of decline since the beginning of May, not two. Regional economic data today showed that Japan’s economy has surged for the fourth consecutive quarter, which, however, was weaker than expected amount of 1.2% quarterly and 4.9% of equated to annual basis. Meanwhile, Singapore has announced record growth of 38.6 percent on an annual basis aligned to the base. Nevertheless, the exchange in Tokyo the Nikkei 225 fell by 1,5% to 10 030.31 points and the Singapore Straits Times index major retreat by 0,4% to 2 763.89 points. Most among national indexes in the region, however, lower South Korean Kospi, which lost 1.8 percent to 1600 points. This gave rise to the news that South Korea has accused its northern communist neighbor that has sunk its warship in March with a torpedo.
Asian investors remained cautious exchanges because of yesterday’s surprise decision to ban Germany uncovered short sales of the largest banks and insurers in the country to Mar. 2011, and speculation with swaps for protection against default of the euro area. Rising raw materials failed to support the mining companies on the stock exchange in Sydney, which are among the best losers in this month because the Australian Government’s intentions to raise taxes on their profits. Australian index of blue chip S & P / ASX fell 200 by 1,6% to 4316 points, while New Zealand’s NZX 50 fell by 0,3% to 3 111.42 points. Wide Chinese Shanghai Composite Index ended the session with a decline of 1.2% to 2 555.94 points and Hong Kong Hang Seng retreated by 0.2% to 19 545.83 points worries that the appreciation of the dollar and the debt crisis in Europe will slow the growth of Chinese economy. China’s currency is pegged to the U.S. dollar, which means that exports of local producers around the world without the United States, more expensive with U.S. money.

Hard drop of Asian markets

Viliyana Filipova — Wed, 05 May 2010 23:25:35 +0000

The exchange session in the Asia Pacific region passed under the dictation of the bears as the regional index MSCI Asia Pacific reported its biggest decline for the past three months. The reason for this were problems in the euro area and new regulations on real estate market in China that threaten to collapse in house prices. Today MSCI Asia Pacific fell 2.4 percent to 119.77 points, all markets in the region colored in red. Strongest decline in the stock was China, where CSI 300 lost 4.6 percent goals to 2 896.86 points. Today was particularly strong pressure on the industry of real estate that were on sale. In Hong Kong Hang Seng retreated by 0.96 per cent to 20 Punta 133.41, while in Taiwan Taiex lost 1.5 percent to 7 579.48 points. Exchange in South Korea did Kospi slid 2 percent to 1 684.71 points. Japan’s main Nikkei 225 index lost 3.3 percent today, which is its biggest daily decline since March last year so far.
Today was the first business day exchange in the country since Monday to yesterday, the market remained closed.

Wave of sales on Asian markets

Viliyana Filipova — Thu, 29 Apr 2010 12:34:26 +0000

The wave of increased sales, which covered yesterday the securities markets in Europe and the U.S. broke today and Asian stock exchanges. Although it was expected, the decision by ratings agency Standard & Poor’s to cut the credit rating of Greece and Portugal brought sharp decreases in the indexes and the risk premium on government securities of the two countries jumped sharply. Regional stock measure MSCI Asia Pacific, which brings together public companies from 10 Asian countries plus Australia and New Zealand slid 1.6 percent to 125.20 points today. This is his fourth decline in five trading session, and meanwhile the cost of insurance to protect against the failure of Asian countries reached its highest level since February. Stock prices of raw materials and the euro rate fell because of concerns that the fiscal crisis in Greece will be released in the eurozone. President of the European Central Bank Jean-Claude Trichet will meet with German politicians and the head of the International Monetary Fund Dominique Strauss-Kahn in Berlin today to discuss a possible rescue plan for Greece. All ten industry groups included in the MSCI Asia Pacific, noted a sharp drop as financial companies ran among the losers. Among national indexes in the region most Japanese Nikkei fell 225, which slid 2.6 percent to 10 924.79 points as investors shrugged off a strong 5-percent increase in retail sales in Japan in March.
Shares of Japanese exporters fell due to the appreciation of the yen, which their goods more expensive abroad and reduces the realized gain on foreign markets. More expensive Japanese currency against all other major currencies today and the most against the euro and Swiss franc, because it is used by investors as a refuge in times of economic uncertainty. The second most loser index in the region today was Hang Seng, which fell 1.5 percent to 20 949.40 points, mainly because decrease for banks and companies in the housing sector. In China, Shanghai Compoiste broad index decreased by 0.3% to 2 900.33 points and Australia S & P / ASX 200 fell 1.2 percent to 4 822.80 points largely because of sales in mining companies.
Earlier today it became clear that inflation in Australia has doubled in the first quarter and accelerate to 2.9 percent annually, which exceeded forecasts the central bank. It strengthened investor expectations that next week Australia’s central bank may again raise its key interest rate and also outweigh quotations on the stock exchange in Sydney.

Stock exchanges in Asia ended with the fourth consecutive quarter growth

Viliyana Filipova — Tue, 30 Mar 2010 15:48:30 +0000

Despite the uncertainty caused by the fiscal crisis in Greece, and fluctuations in the recovery of world economy, last month gave the stock exchanges in Asia at their strongest growth since July 2009. Almost all securities markets in the Asian and Pacific region also failed to finish the quarter and positive territory. Thus, the regional index MSCI Asia Pacific, which combines traded companies from 10 Asian countries, Australia and New Zealand, added 4 percent to its value over the past three months, said fourth quarter growth. Profits from the beginning of March amounted to 6%, which is the strongest monthly growth since July 2009 when the index increased by 8.4%. Stock optimism in Asia in March was fueled by the decision of the Bank of Japan (YATSB) to double the size of the program for the granting of emergency loans to commercial banks in the country. This month the U.S. Federal Reserve renewed its pledge to maintain low interest rates in the country in the coming months to support the fragile economic growth. Liberal monetary policy of major central banks encourage investment in shares, because the source of a large amount of money in circulation and it is also necessary for the recovery of world economy. Fiscal crisis in Greece and concerns about the future of the euro area, however, cast a shadow on financial markets worldwide earlier this year. However the last three months have brought 5 percent growth index of blue chips in Japan’s Nikkei 225, increased 9 percent for the main stock index in Indonesia and Jakarta Composite 8.1 percent increase for the Thailand index Thai. Thanks to strong inflows of external capital Thai rose 64 percent last year, and today it is 84 percent above its level at the end of March 2009.
It is the leader of Thailand index of growth during the past month, rose by just over 10%. Immediately after a 9.5 percent growth rate is among the Japanese Nikkei 225. With between 5% and 8% in March jumped more fundamental exchange measurements in Australia, Indonesia, India, Taiwan, South Korea and Singapore. With just over 3 percent on a monthly basis have increased Hang Seng and New Zealand NZX 50. Securities markets in China are among the few in the region for the quarter that ended on negative territory. Blue chip index CSI 300 e lost 6% of its level in late December after the Chinese central bank began to tighten its monetary policy at the beginning of this year, raising minimum reserve requirements for banks. Wide Chinese Shanghai Composite Index, in turn, decreased by nearly 5 percent after the government took measures to curb bank lending and a booming real estate market in the country. Within the last month the two main Chinese index registered the least growth of 2% among all the major stock indexes in the region mainly because of financial companies.
According to data from Bloomberg Shanghai Composite is one of the five worst performing stock in the world metrics from the beginning of this year. The quarter is the worst of it from the third quarter of 2009, when the index lost 20 percent targets only within August. Last three months have decreased and the exchanges in Hong Kong, Taiwan and South Korea, which is limited to 1-2%. Today this quarter last trading session in Asia has brought reductions of almost all securities markets in the region, MSCI Asia Pacific decreased by 0.5 percent to 125 points. Financial and mining shares, which are among the most traded this year, contributed most to the negative outcome of pending trade data on employment in the private sector of the U.S. in March.