Asian News

[Ichiro]

12sep-bbc news-china trade surplus at new high


"The price of the yuan appreciation so far has been just too moderate and the trade surplus is related to structural problems," said Xiao Minjie, an economist with Daiwa Institute of Research.

"The US is likely to step up its pressure on China to let the yuan rise," he added.

The yuan has risen by less than 2% since being revalued in July 2005 after being tied to the dollar.

China's currency and its trade surplus are expected to be key issues at this week's World Bank and International Monetary Fund annual meeting, in Singapore, which will focus on global imbalances in the world economy. "

for info:
http://news.bbc.co.uk/2/hi/business/5334076.stm

 

[Ichiro]

13sep-bloomberg-yen rebounds

by ron harui

"The yen rebounded from a five-month low against the dollar after Bank of Japan board member Atsushi Mizuno said ``fine adjustments'' will continue to be made to interest rates.

Japan's currency snapped a three-day losing streak as Mizuno's comments in an interview published today fueled speculation the BOJ may lift rates a second time by December. Signs of slower growth and lower-than-forecast inflation spurred the yen to its biggest monthly drop this year in August.

``In light of what Mizuno said, the market may have to look at the possibility of a rate hike before the end of the year,'' said Daragh Maher, a senior currency strategist at Calyon, the securities unit of Credit Agricole SA, in London. ``It's clearly a yen-positive signal.''

Maher expects the yen to advance to 112 versus the dollar this year."

for info:"

http://www.bloomberg.com/apps/news?pid=20601083&sid=ajZaY18aK9Gc&refer=currency

 

[Ichiro]

14sep-reuters-euros firm....

by veronica brown

"The euro firmed against the dollar and yen on Thursday, but stayed in narrow ranges ahead of this weekend's G7 meeting and U.S. retail data later in the day that could yield further clues on the interest rate outlook.

Speculation has rippled through the market on the likelihood, or not, of the low yielding yen becoming a focal point at the gathering after a German finance ministry official said last week that its recent weakness would be discussed, spurring a rally in the Japanese currency.

"We have had a lot of comments about the G7, about China, about whether they will discuss the yen... If anything, the big unknown is how much criticism Japan will get, how much talk there will be about the yen," said Niels Christensen, senior currency strategist at Societe Generale in Paris."

for info:
http://yahoo.reuters.com/news/artic...9-14_11-46-07_L14175789&type=comktNews&rpc=44

 

[Ichiro]

14sep-ap-retial sales slow in august


by martin crutsinger

"The Commerce Department reported that the nation's retailers saw a tiny 0.2 percent increase last month following a much bigger 1.4 percent rise in July. It was the weakest performance since sales had actually fallen by 0.5 percent in June."

for info:

http://biz.yahoo.com/ap/060914/economy.html?.v=2

 

[Ichiro]

17sep-bloomberg-china pressued by g-7 to make currency more flexible

by rob delaney\

"China is set to come under renewed pressure today from the Group of Seven industrial nations to make its exchange rate more flexible as a way of easing international trade imbalances.

``We need to see more flexibility in the Asian currencies,'' Canadian Finance Minister Jim Flaherty said in an interview yesterday as he prepared for talks in Singapore with his G-7 counterparts and central bankers.


How far to push China, which has become the world's fourth- largest economy, will be a key topic at today's G-7 meeting. An April decision by the group to step up its three-year campaign by calling for the yuan to appreciate sent the dollar tumbling."

for info:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aW5fATtId4Xg&refer=asia






`

 

[Ichiro]

16sep-singapore reuters-imf sees strong asia growth

"Asia's economic output is likely to remain strong this year and in 2007, but monetary and fiscal policy will prove challenging during this period, the International Monetary Fund said on Saturday.

In a detailed report on Asia's economic outlook released ahead of the IMF and World Bank annual meetings, the IMF projected a slight slowdown in export growth -- in a region where exports are the equivalent of between 40 and 200 percent of GDP -- but it said capital flows into Asia would remain robust. "

for info:

http://sg.news.yahoo.com/060916/3/43gvv.html

 

[Ichiro]

16sep-signaproe reuters-europe concerned about yen depreciation--g7 source
"
Europe is concerned about the recent depreciation of the Japanese yen and hopes that Japan will take at least verbal action to halt the trend, a G7 source told Reuters on Saturday.

"The yen has depreciated a lot and in the G7 statement there will be a reference to the strengthening Japanese economy which should be seen as a signal that the currency should appreciate," the source said. "

for info:
http://sg.biz.yahoo.com/060916/3/43gvy.html

 

[Ichiro]

16sep-singapore reuters-imf says supports gradual rise in japan interest rate


"Given the risk of slipping back into deflation and notwithstanding the fact that growth was quite strong ... the Bank of Japan should raise interest rates very gradually and continue to lag behind the curve," Dan Citrin, a senior adviser in the IMF's Asia and Pacific Department, told a news conference in Singapore. "

for inof:
http://sg.biz.yahoo.com/060916/3/43gwg.html

 

[Ichiro]

16sep-singapore reuters-china comes under g7 fire for holding down yuan

by garvin jones

China came under pressure on Saturday to let its currency rise faster to ease imbalances in trade and capital flows that pose one of the biggest risks to global growth.

Finance ministers and central bank chiefs of the Group of Seven rich nations were set to repeat a call for Beijing, blamed by critics for holding the yuan down to boost its exports, to take the currency off the leash.

ADVERTISEMENT
"The communique singles out China just like in April," a G7 source told Reuters.

When they last met in Washington on April 21, the G7 said: "Greater exchange rate flexibility is desirable in emerging economies with large current account surpluses, especially China, for necessary adjustments to occur."

"for ifno:
http://sg.biz.yahoo.com/060916/3/43gxs.html

 

[Ichiro]

17sep-reuters singapore-economic imbalances shared repsonsiblity-paulson

by glenn somerville

"U.S. Treasury Secretary Henry Paulson said on Saturday that major industrial countries and key emerging economies like China share a responsibility to bring global economic imbalances under control.

Specifically, Europe and Japan need to undertake reforms that will boost their growth, said Paulson, who was attending his first G7 session as U.S. Treasury chief.


China is pivotal because, without a sharp rise in the yuan, its Asian neighbors will be reluctant to let their own currencies appreciate for fear of losing competitiveness."

for info:
http://sg.biz.yahoo.com/060916/3/43h0l.html

 

[Ichiro]

16sep-yahoo singaore-g7 tells china unleash yuan

by yoko nishkawa

"The Group of Seven rich nations urged China on Saturday to let its currency rise faster to help ease perilous imbalances in trade and backed a rise in the yen to reflect Japan's strengthening economic recovery.

"Greater exchange rate flexibility is desirable in emerging economies with large current account surpluses, especially China, for necessary adjustments to occur," the G7 said.

"We noted that the exit from the zero interest rate policy and that its recovery is now broadly based -- we agree that the yen will reflect these developments," Jean-Claude Trichet, president of the European Central Bank, told reporters.

German Finance Minister Peer Steinbrueck used similar language, suggesting a coordinated message: "The (Japanese) exchange rate should reflect these two developments."

Europe is wary of the yen's softness for fear that the euro will have to bear more of the burden of global currency adjustment. But Japanese Finance Minister Sadakazu Tanigaki, too, chimed in by saying the yen should mirror Japan's fundamentals.

China is pivotal because, without a sharp rise in the yuan, its Asian neighbors will be reluctant to let their own currencies appreciate for fear of losing competitiveness."

f"We noted that the exit from the zero interest rate policy and that its recovery is now broadly based -- we agree that the yen will reflect these developments," Jean-Claude Trichet, president of the European Central Bank, told reporters.

German Finance Minister Peer Steinbrueck used similar language, suggesting a coordinated message: "The (Japanese) exchange rate should reflect these two developments."

Europe is wary of the yen's softness for fear that the euro will have to bear more of the burden of global currency adjustment. But Japanese Finance Minister Sadakazu Tanigaki, too, chimed in by saying the yen should mirror Japan's fundamentals.

for info:


http://sg.biz.yahoo.com/060916/3/43h0c.html

 

[Ichiro]

17sep-bloomberg-tanigaki says yen's drop vis euro has been rough (the yen will rally on Monday)

by lily ninomiya


"``The recent decline of the yen against the euro has been a little rough,'' Tanigaki told reporters after finance ministers and central bankers from the Group of Seven nations met in Singapore today.

The yen reached a record low of 150.73 versus the euro on Aug. 31 and has dropped 6 percent this year, sparking criticism from European governments concerned it will sap their economic expansion by reducing the competitiveness of their exports.

The minister's comment will boost the yen, Jim O'Neill, Goldman Sachs Group Inc.'s London-based chief economist, predicted. ``Tanigaki is recognizing there is an issue about the yen,'' said O'Neill. ``The yen will rally on Monday.'' The yen wasn't mentioned in the G-7 joint statement.

Japan's recovery from deflation and the end of its zero interest rate policy ``must be reflected in the exchange rate,'' German Finance Minister Peer Steinbrueck said today. Bank of France Governor Christian Noyer said the ``large pickup is something that is very important, and the yen will naturally reflect this development.''

for info:

http://www.bloomberg.com/apps/news?pid=20601101&sid=aYIiJ4h0T9J0&refer=japan







I

 

[Ichiro]

17sep-nikkei net-Japanese financial markets will be closed on Monday, Sep 18, a national holiday.

 

[Pilgrim]

What does it mean if for the I fund if the Yen is traded on Monday and rallies strong against the dollar, but the Japanese stock markets are closed?

 

[Ichiro]

Folks,

even if the japan market is closed on monday, the yen is still traded in the other international market such as in usa and europe. It will be quite interesting how much the yen and euros will appreciate against the dollar early next week. However, it will not appreciate much compared to the last g7 meeting earlier this year... I invested in the stock market for the past two decades and a half but I have never seen a roller coaster market like this year.

 

[Ichiro]

17sep-fsu-market overbought but sentiment still favor bulls

by carl swelin

"The S&P 500 Index is approaching new 52-week highs, but there is short-term overhead resistance immediately ahead, and our primary medium-term indicators are becoming modestly overbought. Does this spell trouble for the bulls? Probably not. Overbought conditions are not necessarily a problem in a bull market, and there are still way too many bears for an important top."

for info:

http://www.financialsense.com/editorials/swenlin/2006/0915.html

 

[Ichiro]

17sep-fsu-the chinese paradigm

by thomas au

Once again, President Bush’s Administration has been leaning hard on China to re-value its undervalued currency, the yuan. The Chinese nod politely and make some modest adjustments, but basically, the exchange rate between these two currencies will stay put for as long as Chinese, not American, monetary authorities can maintain it.

Raising the Yuan Would Make China’s the World’s Second Largest Economy

It would make sense to allow the yuan to rise to give a truer picture of China’s economy. Even I was surprised to read the other day that China’s GDP using purchasing power parity (rather than foreign exchange because the yuan is way undervalued), is about $9 trillion, versus $12 trillion for the U.S., and just over $2 trillion usin"g the official exchange rates."

for info:

http://www.financialsense.com/editorials/au/2006/0915.html

 

[Ichiro]

17sep-yahoo singaproe-japn gets off lightly at g7 talk

"Japan got off lightly at a weekend meeting here of Group of Seven finance chiefs, where European ministers had hoped for a strong statement evoking the dangers of a weakening Japanese yen.

In the event, a final communique from the session Saturday, drafted by Britain, Canada, France, Germany, Italy, Japan and the United States, made no mention of recent movements in the yen.

"Clearly, neither Japan nor the United States shares the European concern about the yen, which is continuing to depreciate," commented Antoine Brunet, an economist with the bank HSBC.

He said Japan "intends to take advantage of the still under-valued yen to build up the volume of its external surplus and protect its recovery."

The United States, he continued, is again anxious about inflation, with newly appointed Treasury Secretary Henry Paulson preferring "strong dollar rhetoric" to head off a weakening in the dollar and an increase in inflationary pressures."

for info: http://sg.biz.yahoo.com/060917/1/43h8t.html

 

[Ichiro]

17sep-yahoo singapore-yen set for volatile surge on post-7 jawboning

"Currency markets are bracing for the Japanese yen to push higher on Monday, as an apparently co-ordinated euro zone/Japanese effort to talk up the beleaguered currency at the G7 meeting is seen bearing fruit.


"I think you'll see a short-term, knee-jerk sell off in euro/yen on Monday when trading resumes, given the co-ordinated jawboning by Japanese and euro area finance ministers," RBC Capital Markets global head of foreign exchange strategy Monica Fan said.

"What you do notice is a conspicuous absence of euro/yen bearish comments from other G7 finance ministers ... The odds of this jawboning turning into FX intervention are negligible," she added.

Markets had been jittery going into the weekend meeting of powerful nations in Singapore after speculation on whether yen weakness -- which has seen it hit record lows against the euro -- would be discussed.

"Expect some degree of volatility in euro/yen, pretty much to the downside -- Tanigaki acknowledged the recent weakness of the yen, saying that recent moves had been 'rough', so we would expect quite a sharp move in euro/yen lower from Monday," Standard Charted head of FX strategy Callum Henderson said from Singapore.

Goldman Sachs analysts said in a research note on the G7 gathering that remarks on the yen could mark the beginning of a turning point for the currency, which has lost more than 6 percent against the euro so far this year.

"The Japanese MOF (ministry of finance) may now be forced to shift lower its dollar/yen ranges from the current 105-125," Goldman Sachs said, adding: "The G7 outcome probably also means that MOF officials will have to drop the old mantra that a 'weakening Yen reflects Japan's fundamentals'."

for info:

http://sg.biz.yahoo.com/060917/3/43hbk.html

 

[Ichiro]

20sep-ap-stocks off after coup occur in thailand

by ellen simon

"Stocks dropped suddenly Tuesday after Thailand's military launched a coup against the country's prime minister.

Traders watching Thailand closely are certain to remember how trouble in the kingdom had worldwide implications in the past: The Asia currency crisis that erupted in 1997 began with the devaluation of the Thai baht, then snowballed into a currency crisis in emerging markets around the world.



The baht fell sharply Tuesday, as did Brazil's real, which also tumbled in the '97 crisis."


for info:

http://biz.yahoo.com/ap/060919/wall_street.html?.v=25