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Finance ministers from the G7 group of leading industrial countries have called on China to allow its currency to rise in value more quickly. This would make Chinese goods less competitive and could help curb China's international trade surplus. The G7 said it could also help reduce inflationary pressures in China because it would make imports cheaper. The deputy governor of China's central bank said it was committed to gradual revaluation alongside economic reform. But, added Wu Xiaoling, "moving the exchange rates in the absence of economic restructuring policies will hurt China". In a statement issued after its emi-annual meeting in Washington DC, the G7 also said their own economies remained fundamentally strong but there was an acknowledgement that oil prices and the US housing market are potential problems. The yuan has risen by 10% since China unpegged its currency from the US dollar in July 2005. G7 welcomed the rise but said that it would be in everybody's interests for it to happen more quickly. The International Monetary Fund said Asia-Pacific economic regional growth is expected to slow to 8.0 percent this year and to 7.2 percent in 2008 if China keeps a tight rein on monetary policy. The lead business news story is that the IMF said this week that economic developments in Asia have been positive so far in 2007. Growth has been stronger than expected across much of the region, with domestic demand making an increasing contribution in a number of economies. Exports have remained an important driver of activity, notwithstanding a relatively weak performance from electronics. China and India continued to lead the way, with high growth backed by strong investment (although the contribution of net exports to growth in China continues to rise). The pace of activity in the NIEs (newly industrializing economy) and ASEAN-5 remained solid, with strong investment in the former and strong consumption in the latter. In industrial Asia, GDP contracted in Japan in the second quarter on lower capital expenditure, but this is likely in part to reflect data problems, while Australia and New Zealand continued to enjoy strong, broad-based growth. The IMF says that effective exchange rates have appreciated only modestly, the region’s current account surplus has remained large, and reserve growth has continued apace. While some currencies in the region have risen significantly against the U.S. dollar, effective appreciations have generally been lower. Much of the exchange rate pressure continues to stem from current account surpluses, although outside of China these are moderating as a share of GDP. Intervention in the face of sustained foreign currency inflows has pushed reserves past the $4 trillion mark for the region, with China accounting for the bulk of the increase owing to a surging trade surplus. Financial systems in Asia appear well placed to handle the effects of the global financial market turbulence that broke out in July. Asia was not at the epicenter of the recent turmoil, and markets and financial institutions in the region have been less affected to date than those in the United States and Europe. This reflects the relatively small direct exposure to US subprime mortgages and, more broadly, to leveraged and complex structured credit products, including by hedge funds. Markets have begun to normalize somewhat at the time of this writing, although much uncertainty remains.
Looking ahead, the IMF says that the baseline scenario remains favorable. It features a moderation of growth during the remainder of 2007 and 2008 assuming an effective policy tightening in China, and to lesser extent in India, and a slowdown in foreign demand. A pattern of slower export and investment growth is expected across much of the region with only some de-linking from the global cycle. As credit markets gradually normalize, the fallout from the global financial turmoil should be manageable. The FT reported this week that China suspended key rail freight services into North Korea last week after 1,800 wagons carrying food aid and tradable goods crossed into Kim Jong-il’s hermit state but were never returned.Absconding with Chinese wagons would be a strange move for North Korea because Beijing is Pyongyang’s closest political ally and biggest provider of food, goods and oil. Analysts monitoring North Korea said Chinese officials had privately complained to them that the North Koreans were dismantling Chinese wagons and selling them back as scrap metal. The Chinese railway ministry suspended a number of rail freight services into North Korea on October 11, humanitarian agencies operating in North Korea told the Financial Times. The ministry told international aid agencies that it would not send any more wagons into North Korea until Pyongyang returned the 1,800 Chinese wagons. Tony Banbury, Asia director for the UN World Food Programme, said that the curtailed service had held up the delivery of 8,000 tonnes of maize and wheat already stockpiled in Dandong, a Chinese border town. “We now have significant amounts of food but we can’t deliver it,” Mr Banbury said.
Chinese news agency Xinhua, reports that China is likely to become the world's second largest consumer market by 2015, said a report released by the Boston Consulting Group (BCG). The report (not available online) is based on a survey of 4,258 consumers in 13 Chinese cities from February to March 2007. According to the report, Chinese consumers are experiencing unprecedented wealth growth which is 3 to 5 times faster than developed countries in the past 50 years. Most Chinese consumers plan to spend more in near future to fulfill their family dreams. "The past decade of rapid economic growth has brought prosperity but also uncertainty, resulting in a highly complex consumer market with diverse consumer attitudes," said Hubert Hsu, senior partner and managing director of BCG, at a press conference in Beijing. "Capturing the next wave of consumer growth in China will involve developing deep consumer insights and creating marketing differentiation," said Hsu. The report said there are significant generational differences in terms of spending attitude among Chinese consumers. The strong interest in trading up, which means spending more money for more expensive products, was driven up by consumers' increasing desire for better goods and services and rising concern over safety and quality of cheap products. Chinese consumers put more faith in brand names compared with the U.S. consumers and they believe good brand represents quality, safety, effectiveness and durability, said Hsu. Despite strong trading up desires, Chinese consumers continue to "treasure hunt" - make deliberate trade-offs to maximize "value" of their budgets. They use similar strategies for treasure hunting as their counterparts in other countries except several unusual tactics such as group purchase for volume discount, said the report. The report suggested global suppliers in China should establish strong, branded relationships with China's treasure-hunting consumers, provide the kinds of products that appeal to practical concerns and emotional needs, and be willing to customize their offerings to meet the needs of a geographically diverse population. While the retailers must make sure the categories they carry are the ones that treasure-hunting consumers will seek and focus on a product's technical and emotional benefits, said the report. In an article in BusinessWeek, titled What Will China Look Like in 2035?, Dr. Robert Lawrence Kuhn, an international investment banker and senior adviser at Citigroup, writes: Researchers at the Institute of Quantitative & Technical Economics of the Chinese Academy of Social Sciences, which is the official government think tank housing more than 3,000 scholars and researchers, have shared some of their insights with us. The institute's English-speaking director, Professor Wang Tongsan, says the forecasts assume a significant slowing of China's growth, but he warns that similar estimates proved wildly wrong in the past. The FT reported that Toyota said on Wednesday it was recalling more than 470,000 vehicles in Japan in its fifth recall this year, highlighting the carmaker’s struggle to deal with quality problems as it expands globally. The move brings the total number of vehicles the carmaker has had to recall in Japan this year to more than 594,000. It comes after Toyota suffered a blow in the US when Consumer Reports, the influential consumer-advice publication, said it was reversing a practice of automatically recommending all new Toyota cars. Toyota ranked third behind Honda and Subaru in reliability and two Toyota models had “below average” predicted reliability, Consumer Reports said.BusinessWeek says Japan's automakers are on a roll. Their combined market share in the U.S., the world's biggest auto market, was 37.5% in August, up from 36.5% a year earlier. Toyota is set to overtake General Motors GM as the world's largest automaker this year. Just as impressive, all of Japan's automakers are profitable and increasing their top lines. During the last financial year, Japan's nine major automakers racked up combined operating profits of $36.6 billion on sales of $486 billion, increases of 12% and 8%, respectively. However, slumping demand in Japan means there will be few chances for Japanese auto chiefs to swagger at their home auto show in Tokyo at the end of October. In September, domestic auto sales fell 9.5%, the 27th consecutive monthly decline. That means 2007 is on course to be even worse than last year's annual sales of 5.73 million—itself a 20-year low. Bloomberg reports that Tata Consultancy Services Ltd. won a $1.2 billion contract from Nielsen Co. to manage networks and some finance and human resource operations in India's biggest computer-services order. Tata Consultancy, India's largest software exporter, had the biggest rise in more than two weeks on the Bombay Stock Exchange. Shares had previously declined 10 percent this year. The 10-year contract from Nielsen, based in Haarlem, the Netherlands, will help reduce Tata's dependence on the U.S., which accounts for 54 percent of revenue. The rupee's gains against the dollar this year is crimping Tata's U.S. earnings, and banks in the world's biggest economy may seek lower prices or cut orders in 2008 due to the collapse of subprime mortgages. The FT says that overgrown and disused for much of the last 60 years, a ghost road that connects India to China via Burma will soon reappear on maps of the region. Dismissed by Winston Churchill as a “laborious task, unlikely to be finished until the need for it has passed”, the construction of the road claimed the lives of 1,100 US servicemen and many more local labourers during the second world war. But when a convoy led by US General Joseph W. Stilwell in February 1945 completed the journey from Indian Assam to Kunming, capital of China’s Yunnan province, it helped bust a three-year Japanese land and sea blockade of China and hastened the end of the war. Its military purpose served, the road rapidly deteriorated, disappearing altogether in parts of Burma. Six decades later, the road is again the scene of a race against time. As India and China vie for influence in Burma while seeking to boost their own bilateral trade, Asia’s two emerging economic giants are restoring the historic highway. This helps to explain why India and China have been reluctant to condemn Burma’s crackdown on pro-democracy protesters, while the international community has set about trying to punish the military junta. FINFACTS REPORTS THIS WEEK RELATED TO ASIA-PACIFIC World Development Report 2008: World Bank calls for renewed emphasis on Agriculture for Development Asia/Pacific and EMEA Regions drove Third Quarter PC Shipments while US market experienced weaker-than-expected results Up to 150 million migrants working in Industrialized Countries sent more than $300 billion to Developing Nations in 2006 IMF forecasts Slower World Growth in 2008 OECD countries' tax burdens back up to 2000 historic highs; Three countries - - Italy, Ireland and Korea - - saw their tax burdens rise by more than 1% between 2005 and 2006 President Hu Jintao says China will quadruple per capita GDP of the year 2000 by 2020 Airbus to celebrate handover of A380-Megaliner to first customer Singapore Airlines in Toulouse today Trading halted on Bombay Stock Exchange after benchmark plunged 8%; Oil remains close to record high Markets News: Oil price close to $87 a barrel; China's market hits new record; Stock market value equivalent to national output - trebled in value in past year ACCESS TO NEW REPORTS FROM OTHER SOURCES Friday Asia Increases Salaries to Keep Talent - - HR managers will use fatter paychecks to raise headcount, according to a new study from HudsonChina Unicom Targets Rural Users, Data Services for Growth, Chairman Says - - China Unicom Ltd., the smaller of the country's two mobile-phone companies, will target rural areas for customers and develop more data services to boost earnings, Chairman Chang Xiaobing said. Baosteel Says Iron Miners Can't Keep Pace With Demand as Steel Output Rose - - Baosteel Group Corp., China's biggest steelmaker, said iron ore supplies are lagging behind demand from the country's mills, indicating it may struggle to hold down prices in talks with mining companies led by BHP Billiton Ltd. Chinalco Buys More Overseas Copper Producers to Meet Nation's Metal Demand - - Aluminum Corp. of China, parent of the nation's biggest producer of the metal, plans to buy more overseas copper mining companies to meet rising domestic demand and help diversify earnings. Poly's Shares Soar by the Most in a Week After Forecasting Higher Profit - - Poly Real Estate Group Co., China's second-largest developer by market value, rose by the most in more than a week on Shanghai's stock market after saying full- year profit may double because of rising home sales. Air China Passenger Numbers May Rise 15 Percent Next Year on Travel Demand - - Air China Ltd., the country's biggest international carrier, aims to raise passenger numbers at least 15 percent next year as economic growth fuels demand for holidays and business trips. NDRC: China's pork price drops 11% from peak level - - The average price of pork in Chinese shops has dropped 11 percent from its peak in August as the government invests billions of yuan to support the pig breeding industry. China's September CPI edges down, inflation pressure remains - - China's consumer price index, a major barometer for inflation, eased slightly to 6.2 percent in September after surging up to an 11-year monthly high of 6.5 percent in August, Zhu Zhixin, deputy director of the National Development and Reform Commission (NDRC), said on Thursday. China says no timetable for 3G license issuance - - China is yet to decide on the timetable for the issuance of 3G licenses as relevant departments are still mulling over the management and operational mode of 3G services, Lou Qinjian, deputy director of the Ministry of Information Industry said here on Thursday. China's cotton exports rise 32.29% - - China exported 47.4 billion U.S. dollars of cotton products in the first eight months in 2007, up 32.29 percent over the corresponding period last year, said the industry association here Thursday. China: Slowdown On the Car Lot - - Autos are selling, all right, but not at hoped-for rates—slowing assembly lines and shrinking marginsChina Eases Rules on Mobile Phone Production - - The mainland is moving toward canceling a licensing system for cell-phone production that has been in effect since 2004Wipro Predicts Record Computer Services Sales After Orders Lift Profit - - Wipro Ltd., India's third-largest computer-services provider, forecast record sales for the third quarter after higher prices, acquisitions and new contracts helped profit gain 17 percent in the past three months. Pakistan Stocks Decline, Bond Risk Climbs After Bhutto Convoy Explosions - - Pakistan stocks fell from a record and the risk of owning government debt rose after blasts in Karachi killed at least 136 people and disrupted President Pervez Musharraf's bid to form a political alliance. India's Inflation Slows Unexpectedly as Agricultural Product Prices Drop - - India's inflation rate fell to a five-year low as increased farm production reduced prices of fruits, vegetables and other food products. Bombay Stock Exchange Index Drops to Two-Week Low, Led by Reliance, ICICI - - India's Sensitive Index fell to its lowest in two weeks after a government proposal to curb capital flows spurred net selling by overseas funds. Reliance Industries Ltd. and ICICI Bank Ltd. led declines. Bajaj Auto Reports Unexpected Profit Increase on Sales of Costlier Models - - Bajaj Auto Ltd., India's second- biggest motorcycle maker, posted an unexpected gain in second- quarter profit after it raised prices for some models. The stock gained the most in two weeks. TCS's Billion-Dollar Breakthrough - - Tata Consultancy's $1.2 billion contract with Nielsen is the biggest win ever for an Indian global IT services outfitTCS, Nielsen Co in 10-yr, $1.2 bn pact - - The country's largest software firm Tata Consultancy Services (TCS) and the Netherlands-based Nielsen Company on Thursday entered into an agreement for outsourcing a portion of Nielsen's IT and operations functions.Shares Drop in Tokyo on Yen's Gain, `Uncertain' U.S. Outlook; Acom Surges - - Japanese stocks fell, sending the Topix index to its worst weekly decline in two months. Canon Inc. led declines by exporters after the yen surged against the dollar to the strongest level in almost three weeks. Yen Rises as Stock Market Declines Prompt Investors to Reduce Carry Trades - - The yen rose against the world's 16 most-active currencies as a decline in stocks and the increased risk of holding corporate debt prompted investors to sell higher-yielding assets bought with loans in Japan. Kirin in Talks to Buy Kyowa Hakko to Add Drug Sales as Beer Unit Struggles - - Kirin Holdings Co., Japan's biggest brewer, is in talks to buy Kyowa Hakko Kogyo Co. to triple the size of its drug unit as beer sales stall. Ten-Year Bonds Complete Best Week in Two Months on Credit-Market Concerns - - Japan's 10-year bonds completed the biggest weekly gain in two months as concern turmoil in global credit markets will worsen boosted demand for the relative safety of government debt. Bank of Japan Remains Committed to Increasing Interest Rates, Muto Says - - The Bank of Japan remains committed to raising interest rates as the world's second-largest economy extends its expansion, Deputy Governor Toshiro Muto said. Sony plans to sell chip operations to Toshiba - - Sony Corp. is selling its advanced computer chip operations to Toshiba, both companies said Thursday in the latest sign that Sony is raising cash and shedding operations to focus on its core electronics sector. Thursday No Bounds for China's Stock Frenzy - - The government's efforts to dampen demand have done little to slow the momentum of mainland markets, as the CSI 300 index has soared 185% this yearOutsourcing in China Today - - Hong Kong-based consultant Peter Zapf talks about the risks and benefits of moving production to the mainlandA Kinder, Gentler Shareholder Activist - - Corporate gadfly Eric Knight wants HSBC to focus on Asia--and he's enlisting other big investors to help China's Key Stock Index Drops Most in 5 Weeks on Hong Kong Arbitrage Plan - - China's stocks fell, with the key index dropping the most in five weeks, after Beijing regulators said they may allow arbitrage between shares traded on the mainland and Hong Kong. China Merchants Bank Co. led declines of A shares with Hong Kong listings. Hong Kong's Hang Seng Index Tops 30,000 for First Time on China Arbitrage - - Hong Kong stocks climbed, lifting the Hang Seng Index through the 30,000 level for the first time. Asian Stocks Climb, Led by Mizuho Financial, Banks; China Life Advances - - Asian stocks gained for the first time in three days after JPMorgan Chase & Co. posted profit that beat analyst estimates. HSBC Faces No Obstacle to Increase Stake in China's Bank of Communications - - Bank of Communications Ltd., the nation's fourth-largest by market value, said there's no legal, regulatory or technical obstacle for partner HSBC Holdings Plc to increase its ownership in the Chinese lender. Acer Shares Rise Most in Two Months After Raising Shipments, Market Share - - Acer Inc., the world's fourth- largest personal-computer supplier, climbed the most in two months in Taipei after a report said the company's shipment growth outpaced its bigger rivals in the third quarter. Stock market helps drive up number of Chinese millionaires - - The number of Chinese mainland millionaires with more than one million U.S. dollars in assets, excluding their own homes, rose by 7.8 percent year on year to 345,000 last year, says a report jointly released by Merrill Lynch and Capgemini. Morgan Stanley to buy stake in Vietnamese petrol firm - - Leading global financial organization Morgan Stanley will acquire 10-percent stake in PetroVietnam Finance Corporation (PVFC), an affiliate of Vietnam National Oil and Gas Group (PetroVietnam), local newspaper Vietnam News reported Wednesday. Indian IT workers among worst paid - - The impact of the rupee rise and fed rate cut on IT salaries is yet to be seen with appraisals around the corner, but as of now India is ranked fourth on the ten worst IT paymasters globally, a recent survey said.Stock market restricts losses to 336 pts - - The Bombay Stock Exchange benchmark Sensex on Wednesday closed 336.04 points down, after recovering over 1,400 points from the day's low, as reassuring comments from the government and the market regulator lifted investors' sentiments.Tightened Rules Chill Mumbai Bourse - - As regulators clamp down on offshore derivatives to deter manipulators, analysts worry they will trim the flow of foreign capital fueling India's boomStocks May Extend Declines Until Overseas Investment Rules Are Established - - India's Sensitive Index, the world's best-performing benchmark in the past month, may falter until overseas investment rules are set next week aimed at curbing record capital inflows. Indian Farmers May Plant Record Wheat Crop, Boosting Dwindling Supplies - - Farmers in India, the world's third- biggest wheat importer last year, may plant the crop on a record area to take advantage of higher prices after supplies dwindled and demand increased. Jet Airways India Expects to Post Profit on U.S. Flights in First Year - - Jet Airways (India) Ltd., the nation's largest domestic carrier, expects to earn profits on its U.S. flights in the first year of operations, as travel demand between the two countries increases. India's Reddy Sees `Pressure' in Monetary Data, Reserve Bank to Review - - India's central bank Governor Yaga Venugopal Reddy said consumer prices are ``vulnerable'' to shocks from oil and food costs, which have contributed to a ``hardening'' in inflation figures. Asian Stocks Climb, Led by Mizuho Financial, Banks; China Life Advances - - Asian stocks gained for the first time in three days after JPMorgan Chase & Co. posted profit that beat analyst estimates. Housing snag to hit GDP: Credit Suisse, Macquarie - - Analysts are worried the slump in housing starts caused by stricter inspections will slow economic growth. North Korea's Warming Trend - - Its sick economy may be on the mend as Chinese and South Korean businesses step up investment Shares Climb in Tokyo on Earnings Outlook, Led by Banks, Trading Companies - - Japanese stocks climbed, led by Mitsubishi UFJ Financial Group Inc., on renewed confidence global financial companies will weather the U.S. subprime crisis. Mitsubishi UFJ, Sumitomo May Bid for Japan Airlines Card Unit, People Say - - Mitsubishi UFJ Financial Group Inc., Japan's largest publicly traded bank, Sumitomo Mitsui Financial Group Inc. and Credit Saison Co. may submit bids for Japan Airlines Corp.'s credit card unit, five people with knowledge of the transaction said. Dollar Falls on Speculation Factory Data to Bolster Case for Fed Rate Cut - - The dollar fell against 12 of the 16 most-active currencies on speculation a U.S. report will show manufacturing in the Philadelphia region slowed, adding to signs the Federal Reserve will cut interest rates. Bonds Advance for Third Day on Speculation U.S. Slowdown to Reduce Exports - - Japan's 10-year government bonds gained for a third day on speculation a U.S. economic slowdown will weaken demand for exports, making it less likely the Bank of Japan will increase interest rates this year. Honda to Cut Domestic Sales Goal on Slow Demand, Vice President Kondo Says - - Honda Motor Co., Japan's second- largest carmaker, will cut its domestic sales target next week because of declining demand for autos in the country. Wednesday Big Plans for China's Life Insurance Market - - Foreign firms' share of the overall insurance market is expected to hit 10% by 2010, according to a recent PricewaterhouseCoopers studyAirbus A380: In Business at Last - - Designer linens and silverware, private suites if you're willing to pay, legroom complaints from the peanut gallery—is the Singapore debut a success?Tencent beefs up R&D - - Tencent Inc, a Chinese portal and instant messaging service provider, has spent 100 million yuan (13 million U.S. dollars) to set up its own research institute to develop patent technologies for future applications in wireless and data storage. Japan, China, Taiwan Sell Most U.S. Government Debt in at Least Five Years - - Japan, China and Taiwan sold U.S. Treasuries at the fastest pace in at least five years in August as losses linked to U.S. subprime mortgages sparked a slump in the dollar. ICBC Will Open International Branches, Seek Acquisitions as Stock Surges - - Industrial & Commercial Bank of China Ltd., the world's largest bank by market value, will set up branches in cities including New York and Moscow and make acquisitions to speed up its overseas expansion. China Should Separate Rate Policy From U.S., Construction Bank's Guo Says - - China Construction Bank Corp. Chairman Guo Shuqing, one of several candidates for possible appointment as the country's central bank chief, said the Chinese monetary authority shouldn't follow U.S. interest-rate movements. Hong Kong's CLP May Bid for Singapore Power Plants Being Sold by Temasek - - CLP Holdings Ltd., the larger of Hong Kong's two power producers, is considering bidding for Singapore's three biggest utilities being sold by Temasek Holdings Pte, said Group Director Stefan Robertsson. China's September Gasoline Imports Jump to Two-Year High as Demand Rises - - Gasoline imports by China, the world's second-largest energy consumer, last month jumped to the highest in at least two years as the government ordered refiners to ensure supplies. India may need capital controls: Economist - - India's record-breaking stock market and surging rupee are damaging the economy and policy makers might need to consider imposing some controls on capital inflows, a central bank adviser said on Tuesday.Indian Rupee, Stocks Slump as Regulator Proposes Limits on Equities Bets - - India's stocks plunged, prompting a halt in trading, and the rupee fell the most in six months after regulators proposed limits on global funds betting on equity market gains. American Depositary Receipts Decline After Regulator Seeks Tighter Rules - - American depositary receipts of Indian companies such as ICICI Bank Ltd. and Infosys Technologies Ltd. fell after the South Asian nation's regulator proposed to clamp down on overseas investments that have sent local stocks to a record. Stocks Plunge, Triggering Trading Halt on Proposed Investment Restrictions - - India's stocks plunged, triggering a trading halt, and the rupee fell the most in two months after regulators proposed investment controls targeting global funds. Union Investment of Germany Bets on Indian Rupee, Bonds as Rates Increase - - Union Investment, Germany's third- biggest fund manager, is betting on India's rupee and bonds lured by the highest interest rates in five years. Sri Lanka's Government Gets Excess Demand for First Overseas Bond Offering - - Sri Lanka, fighting a worsening civil war, attracted $1.25 billion of orders for a $500 million bond offering, its first sale of debt overseas, according to an e-mail sent to investors. Foreign investment in Japan negative in 2006 - - Foreign direct investment inflows to Japan turned negative in 2006 for the first time since 1989, affected by divestments by large transnational companies, including Vodafone Group PLC, according to a U.N. development agency. Stocks Fall on Mounting U.S. Subprime Concern; Sumitomo Mitsui Leads Drop - - Japanese stocks slipped after Wells Fargo & Co. said it lost almost $900 million on home equity and consumer loans, renewing concern the U.S. subprime mortgage crisis will reduce earnings at financial companies. Sanyo Electric Scraps Plan to Sell Chip Operations, Triggering Share Slump - - Sanyo Electric Co., the recipient of a $2.6 billion bailout by creditors including Goldman Sachs Group Inc., scrapped plans to sell its chip unit, undermining efforts to rebound from three years of losses. Economy May Falter as Housing Starts Slide, Say Credit Suisse, Macquarie - - Japan's economic growth may falter because changes to building rules requiring stricter inspections will cause housing starts to slump, analysts said. Yen Gains as Global Decline in Stocks Prompts Reduction in Carry Trades - - The yen rose for a third day against the dollar, its longest winning streak in two months, as a decline in global stocks prompted investors to sell higher- yielding currencies bought with loans in Japan. Ten-Year Bonds Gain as Concern About U.S. Housing Slump Increases Demand - - Japanese bonds rose for a second day as concern a U.S. housing slump is worsening spurred investors to seek the relative safety of government debt. Tuesday Imagi: Challenging Pixar from China - - Formerly a producer of artificial Christmas trees, the studio aspires to make U.S.-quality animated films in Asia for far lower costsAlarming Talk in Hong Kong - - Its stock market is soaring, but prospects of an all-China exchange raise fears Canon to Focus on Software - - Canon Singapore CEO Kevin Ogawa said the consumer electronics giant plans to expand its software businesses to some 30% of its commercial business in the regionDah Chong Hong Raises $593 Million in Hong Kong IPO; Price at Top of Range - - Dah Chong Hong Holdings Ltd., a Hong Kong-based automobile and food distributor, and parent Citic Pacific Ltd., raised HK$4.6 billion ($593 million) after pricing a Hong Kong initial public offering at the top end of the range. Cheung Kong Infrastructure Agrees to Buy TransAlta Power for $646 Million - - Cheung Kong Infrastructure Holdings Ltd., the roads and energy company controlled by billionaire Li Ka-Shing, agreed to buy TransAlta Power LP for about C$629 million ($646.3 million), gaining a foothold in North America. Danone Sells 20 Percent Stake in China's Bright Dairy for $124 Million - - Groupe Danone SA, the world's largest yogurt maker, plans to sell its 20 percent stake in China's Bright Dairy & Food Co. for 934 million yuan ($124 million), Bright Dairy said. China's September Vehicle Sales Increase by 21.2 Percent; Gain Led by Cars - - China's vehicle sales rose 21.2 percent last month to 772,800 units, as increasing affluence boosted demand for passenger cars including General Motors Corp.'s Buick Excelle and Volkswagen AG's Jetta models. Shenhua's September Coal Output Rises 18 Percent on Higher Domestic Demand - - China Shenhua Energy Co., the nation's largest coal producer, said output of the fuel climbed 18 percent in September as the company expanded capacity to meet surging domestic demand. PetroChina poised to list A shares next month - - PetroChina will go public on Shanghai's A-share market next month, said PetroChina Chairman Jiang Jiemin yesterday. Prices jump for city's second-hand apartments - - Shanghai's second-hand housing index rose in September for the 18th consecutive month as the scant supply of new residences continued to push up sales prices for the city's used apartments. China's bid to balance trade helps slow surplus growth - - China's macro-economic moves to balance foreign trade were paying off as the country's trade surplus growth had slowed by September, Chinese customs officials said on Monday. India's Benchmark Sensitive Index Crosses 19,000: World's Biggest Mover - - India's Sensitive Index rose above the 19,000 for the first time after purchases by overseas funds propelled the benchmark past the milestone in four sessions. Reliance Industries Ltd. and ICICI Bank Ltd. led gains. Tata Consultancy Posts Slowest Profit Growth in Seven Quarters on Rupee - - Tata Consultancy Services Ltd., India's largest computer-services provider, posted the smallest profit growth in seven quarters as the rupee's gains reduced earnings from the U.S., its biggest market. Yuan, Rupee Rising at Record Rate as China, India Battle Import Inflation - - Asian currencies from the Indian rupee to the Chinese yuan are rising at a record pace as central banks turn to the foreign-exchange markets for help in fighting inflation. Axis Bank's Second-Quarter Profit Rises 61 Percent to $58 Million on Loans - - Axis Bank Ltd., India's third-biggest non-state financial services company by assets, said second- quarter profit rose 61 percent as it earned more from selling loans and financial products. The stock gained. Rupee Gains as Rising Stocks Draw Record Amount of Investment From Abroad - - India's rupee rose, extending eight weeks of gains, on optimism the nation's rising stock market will attract greater investment from overseas. India Celebrates Pachauri's Nobel Win - - The Peace Prize, shared with Al Gore, gives the U.N.'s IPCC chairman more leverage in his quest for Indian environmental policy change Shares Drop in Tokyo on Renewed U.S. Subprime Loss Concern, Led by Nomura - - Japanese stocks fell, led by financial companies, after Citigroup Inc. warned that subprime mortgages in the U.S. will continue to plague financial markets. Nomura Shares Fall Most in a Month as Subprime Bets Trigger Pretax Loss - - Nomura Holdings Inc., Japan's largest securities firm, fell the most in almost a month after the brokerage said yesterday it will post its first quarterly loss in more than four years. Yen Rises on Speculation Investors Unwinding Carry Trades as Stocks Fall - - The yen rose against 14 of the 16 most-active currencies after U.S. stocks fell the most in five weeks on concern mortgage losses will worsen a housing slowdown. Decline in Housing Starts on Regulatory Delays May Hinder Growth, Ota Says - - The drop in Japan's housing starts may exert a drag on the country's economic growth, Economic and Fiscal Policy Minister Hiroko Ota said. U.S. slump won't halt growth in Japan: Fukui - - The economy will keep growing, though global financial markets remain volatile following the U.S. housing slump, Bank of Japan Gov. Toshihiko Fukui said Monday. Monday Baidu's Big Drop - - First, the bad news for Baidu investors: the Chinese search engine’s stock price plunged $51 yesterday. Yes, fifty one dollars. In one day. The amazing news, though: Even after that drop, Baidu's shares are still riding high. The Nasdaq-listed shares are still up 174% for the year.Chinese toy makers receive training on export toy quality, safety - - More than 1,000 people from China's toy-making industry attended a government-sponsored training sessions on the quality and safety of export toys from Oct. 11 to 12, the latest effort of the government to ensure sound quality of export toys.China to raise reserve requirement ratio - - China will raise the reserve requirement ratio by half a percentage point to 13 percent for commercial banks from October 25, the People's Bank of China (PBOC) announced on Saturday. Experts: Inflation can be tamed - - The strong economy will not spiral out of control as the authorities may tighten controls even more to keep it on track, economists have forecast. China to allocate 80 bln yuan for high-tech development - - The China Development Bank (CDB) will provide 80 billion yuan (10.7 billion U.S. dollars) to support the development and innovation of high-tech enterprises in upcoming five years. Yuan, Rupee Rising at Record Rate as China, India Battle Import Inflation - - Asian currencies from the Indian rupee to the Chinese yuan are rising at a record pace as central banks turn to the foreign-exchange markets for help in fighting inflation. Alibaba's Hong Kong Initial Stock Offer May Raise $1.3 Billion, People Say - - Alibaba.com Ltd., operator of China's largest trading Web site for companies, and its parent may raise as much as HK$10.3 billion ($1.3 billion) in a Hong Kong initial public offering that attracted investors including Yahoo! Inc. Hong Kong Stocks' `Obscene' Discount to China Shares Lures Mobius, Baring - - Hong Kong's most expensive stock market in three years looks cheap to investors at Templeton Asset Management Ltd. and Baring Asset Management Inc. China's Key Stock Index Soars to Record, Led by Citic Securities, Sinopec - - China's stocks rose, with the key index heading for a record. China Petroleum & Chemical Corp., Asia's biggest oil refiner, surged after a report its parent is considering a $5 billion bid for a gas explorer in Papua New Guinea. Shenzhen Development Bank's Nine-Month Profit Probably Doubled With Loans - - Shenzhen Development Bank Co., a Chinese bank controlled by U.S. buyout firm TPG Inc., said profit probably doubled in the first nine months of the year from a year earlier, on higher loan margins and lower taxes. Fukui Says Economy Will Probably Keep Growing, Market Volatility Is a Risk - - Japan's economy will keep growing, though global financial markets remain volatile following the U.S. housing slump, central bank Governor Toshihiko Fukui said. Dollar Near Nine-Week High Against Yen Before Bernanke's Speech in U.S. - - The dollar traded near a nine-week high against the yen on speculation Federal Reserve Chairman Ben S. Bernanke will say the U.S. economy is strong enough to weather a housing slowdown. Government Bonds Decline on Speculation U.S. Outlook to Sap Debt Demand - - Japan's government bonds dropped on speculation the U.S. economy will weather a housing slump and keep expanding, damping demand for fixed-income securities. Calsonic Kansei, Toyota Boshoku Shares Gain Most in Two Months on Ratings - - Calsonic Kansei Corp., a Japanese auto-parts affiliate of Nissan Motor Co., and Toyota Boshoku Corp., a components maker controlled by Toyota Motor Corp., both gained the most in at least two months after their shares were rated ``buy.'' Toyota's Loss, Ford's Gain? - - Ford CEO Mulally talks about hiring Toyota marketing chief Farley to help forge the U.S. automaker into a "single global brand idea worldwide"Yuan, Rupee Rising at Record Rate as China, India Battle Import Inflation - - Asian currencies from the Indian rupee to the Chinese yuan are rising at a record pace as central banks turn to the foreign-exchange markets for help in fighting inflation. Axis Bank's Second-Quarter Profit Rises 61 Percent to $58 Million on Loans - - Axis Bank Ltd., India's third biggest non-state financial services company, said profit in the three months ended Sept. 30 rose 61 percent as it earned more from selling loans and financial products. Asian Energy Stocks Rise on Oil, Led by BHP, Cnooc; AGL Energy Declines - - Asian stocks fell for a second day, led by AGL Energy Ltd., after Australia's biggest electricity and gas retailer cut its full-year profit estimate. Benchmark Indian Stock Index Rises, Led By Reliance Industries, ICICI Bank - - India's benchmark stock index, the Mumbai Stock Exchange Sensitive Index, rose 0.95 percent at 10:00 a.m. India's Exporters Are Losing Advantage as Rupee Gains, Industry Group Says - - Indian exporters have lost their competitive advantage because the rupee has strengthened at a faster pace than the currencies of China, Pakistan, the Philippines and Bangladesh, India's biggest business group said. India to challenge China in manufacturing - - India, popularly known as the world's back office for IT and BPO services, is all set to threaten China's position as the world's backyard for manufacturing in the next 3-5 years, says a new report.Protesters Tell Wal-Mart to Quit India - - Foreign retail giants such as Wal-Mart and Germany's Metro, along with local chain Reliance Retail, face pressure from small-trade workersThe Patient American - - After toughing out Vietnam's crackdowns on capitalism, investor Peter Ryder is reaping the rewards © Copyright 2007 by Finfacts.com |
