Asian News

[Ichiro]

24nov-retuers-Euro shoots above $1.30 to 19-mth high, dlr tumbles

By Natsuko Waki

"The euro shot above $1.30 on Friday for the first time since April last year, extending sharp gains made this week after upbeat German data reinforced expectations the European Central Bank would raise interest rates into next year. The move higher was exacerbated by thin trading conditions, which helped trigger stop-loss buy orders above the psychological $1.30 level. The dollar tumbled across the board, hitting its lowest level against sterling in almost two years.
The dollar was down 0.3 percent at 115.91 yen <JPY=>, after a broad unwinding of carry trades pushed it lower against the low-yielding Japanese currency to 2-1/2 month low. "

http://yahoo.reuters.com/news/artic...1-24_09-11-45_L24456333&type=comktNews&rpc=44

 

[Ichiro]

24nov-reuters--Nikkei falls as yen hits exporters, banks drop

By Aya Takada

"The Nikkei average closed 1.13 percent lower on Friday after hitting its lowest intraday level in two months, as shares of exporters such as Kyocera Corp. (6971.T: Quote, NEWS, Research) slid on concerns a higher yen would crimp earnings from abroad, and as banks and insurers fell after earnings reports.

Tsutomu Yamada, market analyst at kabu.com Securities, said corporate Japan's insistence on keeping full-year forecasts at conservative levels was partially responsible for the recent slide in Japanese stock prices.

"I think full-year profit forecasts are too conservative, and that has kind of misled investors in places," Yamada said. "

http://yahoo.reuters.com/news/artic...d=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage3

 

[Ichiro]

24nov-reuters-GLOBAL MARKETS-Dollar sinks, hitting stocks, boosting bonds

"The dollar plunged against major currencies on Friday, dragging down European stocks as the euro soared and boosting demand for short-tern European bonds.

The euro broke through a psychological barrier of $1.30 <EUR=> and was almost 1 percent higher against the U.S. currency on the day on rising European interest rate expectations."

http://yahoo.reuters.com/news/artic...1-24_09-08-49_L24903116&type=comktNews&rpc=44

 

[Ichiro]

24nov-Bloomberg-Japanese Stocks Decline After Government Cuts View of Economy

By Makiko Suzuki

"Japanese stocks fell, led by Mitsubishi UFJ Financial Group Inc., after the government cut its evaluation of the economy for the first time in almost two years.

``The macro view of Japan is weak, creating bearish sentiment in the market,'' said Fumihiro Nakajima, who oversees about $1 billion at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. ``An expensive yen is always negative for exporters.''

``The economy is recovering, despite some weakness in consumption,'' the Cabinet Office said in its report for November. ``Private consumption is almost flat,'' it added, cutting the assessment for the first time since December 2004.


``There's worries in Japan about global and domestic consumption; that's the major negative in investors' minds,'' said Jon Easton, who manages about $200 million in Japanese equities at EN Asset Management in Tokyo.


Stronger Yen

The lender's profit declined because of ``booking of bond losses and slower growth of market-related transaction,'' Hironari Nozaki, a Tokyo-based bank analyst at Nikko Citigroup Ltd., wrote in a Japanese-language note dated Nov. 22.

The yen strengthened to as high as 116.04 against the dollar yesterday as rising U.S. jobless claims and a drop in consumer confidence in the world's largest economy suggested the Federal Reserve will cut interest rates.

The level was the highest since Sept. 7 on an intra-day basis. The yen recently traded at 116.35.

A stronger Japanese currency means the nation's exporters get less for their dollar-denominated sales while their products become less competitive."

http://www.bloomberg.com/apps/news?pid=20601101&sid=aqUo4c_5mNGs&refer=japan

 

[Ichiro]

25Dec-fsu-----USD-07 a final year?

by christopher laird

"This article is going to discuss the growing world discontent with the USD. Previously, although the US fiscal and trade deficits were in danger territory, the US trade partners were willing to continue to accumulate USD foreign reserves as they sold masses of everything under the Sun to the US.

They benefited from massive economic growth, and let the USD hot money circulate in their economies as washed hot money (hot money comes in as USD and then is changed into local currency or lent out in local currency – this causes lending and asset bubbles locally, creating a seeming endless prosperity bubble until that comes to the inevitable end and they have massive inflation or asset bubble collapses). Ultimately this hot money issue will decide the USD fate anyway, but there are sinister looking issues, particularly with China, that may cause a USD crisis in 07."

for info:

http://www.[[financialsense.com/fsu/editorials/laird/2006/1220.html

 

[Ichiro]

25dec-fsu- boj is the key

by cpt hook

"With both Bernanke and Paulson heading to China soon, one should definitely not be surprised if the dollar ($) bounces higher in coming days considering they will want to make it appear the world likes a close relationship with the States. And let’s face it, we are talking about the China connection here, the one with America that keeps the global debt bubble afloat, which in turn feeds all the assets bubbles, making it the cornerstone of the ‘globalization model’ bankers around the world envision as our destiny. It’s the ‘new world order’ you see, seamless in terms of freely flowing capital and resources independent of both geographical and political constraints. Of course when oil goes to $150 per barrel at some point in the future, and politics brings geography back into a former light, this view of the world will be well tested, and likely fail with fiat currency regimes within process. But this is a discussion for another day.

Today we will focus on the $, because as Cliff Droke points out in his latest, it might bounce soon considering sentiment is pervasively bearish now. And although I cannot agree with Cliff on the $’s fortunes past the observation sentiment might be a bit too bearish right now for a continued slide, what you will be happy to know is it does not matter what it does moving forward in relation to influencing gold pricing. No, in fact it’s not the $’s movements that has a tight and direct correlation with the gold price, but Japanese equities believe it or not. And in spite of what some will have you believe, Japanese equities are depend on pressure the global economy’s pipe remaining strong, where when we circle back around to the primary point made in our opening remarks, in terms of fiat currency pricing, gold needs to see the US and China getting along trade wise, which will allow asset bubbles to continue growing within the current global trade model. "

for info:

http://www.[[financialsense.com/fsu/editorials/petch/2006/1219.html

 

[Ichiro]

25dec-fus--- the euro-yen corssfire

by jim willie

"The real currency story in recent months is the euro-yen cross, and not so much the euro-dollar headline breakout. In Japanese yen terms, the euro is on a tear. Aiding the euro is significant Asian diversification away from the USDollar by their central banks. The Arabs also are diversifying, as much into the pound sterling as the euro. They are experiencing massive anxiety attacks as Iraq disintegrates. Hence, on a combined basis a giant long-term euro breakout has been in progress, having begun in early summer. This euro uptrend has actually lasted 18 months, and began at the key date of July 2005. That date has been cited numerous times in the Hat Trick Letter, when King Abdullah took the Saudi throne, and when the Chinese announced a major shift in the yuan currency program to permit its rise. Both events shook the financial world."

for info:

http://www.[[financialsense.com/fsu/editorials/willie/2006/1219.html

 

[Ichiro]

25dec-bloomberg---asian stocks rise

by ian sayson

"Asian stocks rose for a sixth week, the longest winning stretch in almost a year. Toyota Motor Corp. led gains as the yen fell to its lowest against the dollar in a month, raising the value of overseas sales.

Thailand's SET Index tumbled 7.6 percent, its biggest weekly slide since September 2001, after the country's central bank imposed controls on investments from abroad. "
for info:

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

 

[James48843]

China up big on Christmas day. Up over 3%.

 

[Ichiro]

2Jan-bloomberg-China to Maintain `Stable Currency Policy' Next Year (Update1)

By Wing-Gar Cheng and Ying Lou

"China's central bank, under pressure from the U.S. and other Group of Seven nations to make the yuan more flexible, will in 2007 pursue a ``stable currency policy'' to promote economic growth.

The People's Bank of China ``will continue to strengthen and adjust financial control mechanisms, execute a stable currency policy, improve foreign exchange management and push for financial reforms and innovation,'' Governor Zhou Xiaochuan said today. ``We want to contribute to ensure stable and accelerated economic development.''

For info:

http://www.bloomberg.com/apps/news?pid=20601087&sid=agqlWH1lCM8U&refer=home

 

[Ichiro]

2jan-bloomberg--Asian Stocks Rise for Seventh Week; Toyota, BHP Billiton Gain

By Darren Boey

"Asian stocks rose this week, rounding out a fourth consecutive year of gains. BHP Billiton and Toyota Motor Corp. advanced after better-than-expected U.S. home sales and consumer confidence reports.

``People are pretty optimistic right now, with the U.S. housing market doing better than we'd thought,'' said Choi Chang Hoon, who manages about $500 million at Woori Credit Suisse Asset Management Co. in Seoul. ``Exporters may see their earnings improve.''

The Morgan Stanley Capital International Asia-Pacific Index this week rose 1.2 percent to 140.53. It was its seventh straight weekly advance, the longest winning streak in a year. Japan's Nikkei 225 Stock Average gained 0.7 percent. "

for info:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aNnOGWE3HD5I&refer=asia

 

[Ichiro]

2jan-Central Bank Dollar Reserves Edge Higher; Euros Slip (Update4)

By Matthew Benjamin and Simon Kennedy

"Central banks' holdings of dollars edged up in the third quarter even as the U.S. currency completes its fourth decline in five years against the euro.

Dollars accounted for 65.6 percent of reserves, up from 65.3 percent in the prior thee months, the International Monetary Fund said today in Washington. Euros slipped to 25.2 percent from 25.5 percent. Total reserves increased.

Central banks bought more dollars despite a slowing U.S. economy and the Federal Reserve's decision to halt a two-year run of interest-rate increases. Tighter monetary policy from the European Central Bank failed to raise the proportion of reserves held in the 12-nation currency. Dollar holdings are still down from 66.3 percent a year earlier and 72.6 percent in June 2001. "

for info:

http://www.bloomberg.com/apps/news?pid=20601083&sid=aACx1IPzfvQ0&refer=currency

 

[Ichiro]

2jan-bloomberg-S. Korean Exports Rise 13.8% to $29.2 Bln in December (Update1)

By Kevin Cho and Seyoon Kim

"South Korea's exports rose in December as companies sold more goods including cars, chips and other goods.

Exports increased 13.8 percent to $29.2 billion from a year earlier after rising 18.7 percent in November, the Ministry of Commerce, Industry and Energy said in Gwacheon, South Korea today. That compares with the median forecast of a 15.2 percent gain in a Bloomberg News survey of 10 economists."

for info: http://www.bloomberg.com/apps/news?pid=20601013&sid=aPCqVbVT4wwE&refer=emergingmarkets

 

[Ichiro]

2jan-bloombergWhy 2007 Is a Make-or-Break Year for China, Asia: William Pesek

By William Pesek

"Of all the questions facing Asia in 2007, none looms larger than what to expect from China.

The last 12 months proved more than ever how much Asia is relying on its second-biggest economy. Japan may be back and the U.S. economy is by far the world's largest, yet China's 10 percent growth is increasingly underpinning Asia's hopes.

China isn't likely to slide into crisis in 2007, though the number of issues that may come to a head is daunting. On the one hand, China needs to create millions of jobs to spread the benefits of rapid growth. On the other, it must slow things down to avoid overheating -- something it didn't do in 2006."


for info: -http://www.bloomberg.com/apps/news?pid=20601039&sid=agrKSFDgCHDo&refer=columnist_pesek

 

[Ichiro]

2jan-bloomberg--Asia Must Pass Buffett's `Naked Swimmer' Test

By Andy Mukherjee

Dec. 21 (Bloomberg) -- "Approaching the 10th anniversary of the Asian financial crisis, we must brace for a round of self- congratulatory backslapping.

In the months ahead, expect policy makers in the region to wax eloquent about how much more resilient their economies and capital markets have become since those dark days of 1997.

Is Asia really less vulnerable now? We won't know the answer to that question until the money that's betting on Asia's strength has undergone Warren Buffett's ``naked swimmer'' test.

The outward signs do support an optimistic appraisal.

The $1.6 trillion buildup in foreign-exchange reserves in Asia, excluding Japan, in the past decade makes the fortress appear better protected against speculators than in the past.

Yet, it's reasonable to ask if reserve acquisition beyond a point is good use of local taxpayers' money, and whether it can ever be a substitute for prudent economic policies, a strong banking system and the rule of law. "

for info:

http://www.bloomberg.com/apps/news?pid=20601039&sid=a6LS6yIE1mMM&refer=columnist_mukherjee

 

[Oldcoin]

Inchiro, good to have you back. Haven’t seen you post for a while, hope all is well.

 

[Show-me]

Ditto!

Inchiro, good to have you back. Haven’t seen you post for a while, hope all is well.

 

[Ichiro]

Well, I got a 25% appreciation in my TSP, ETFs and my mutual funds in 2006. I think with the third year of the presidental cycle, I should do even better in 2007.

Ichiro

 

[Ichiro]

3jan-reuters-GLOBAL MARKETS-HK stocks hit record high, Aussie dollar rules

By Kim Coghill

SINGAPORE, Jan 3 (Reuters) - Stocks in Hong Kong, Australia and Singapore hit record highs on Wednesday as investors bet there was room to build on last year's rally while the Australian dollar extended gains as dealers bought high-yielding currencies.

Gold and oil were little changed but activity was subdued with many traders still away on holiday or awaiting minutes due later on Wednesday of the last U.S. Federal Reserve meeting for potential clues on the outlook for interest rates and the dollar.

Markets were also waiting for the Institute for Supply Management's latest reading on U.S. manufacturing, due to be released later in the day, to help determine market direction.


Britain's FTSE 100 index .FTSE was seen opening down 2 to 14 points after gaining 1.45 percent on Tuesday.

"Look at the liquidity in the market," said Dale Tsang, managing director, securities trading division, Polaris Capital (Asia) Limited in Hong Kong.

for info:

http://yahoo.reuters.com/news/artic...-01-03_06-57-31_SP51793&type=comktNews&rpc=44

 

[Ichiro]

3jan-reuters-European stocks -- Factors to watch on Jan 3


LONDON, Jan 3 (Reuters) - "European shares are seen opening mixed on Wednesday, with investors awaiting key manufacturing data from across the Atlantic as the euro holds firm.

U.S. markets were shut on Tuesday to mourn former president Gerald Ford and Japanese markets were shut on Wednesday as part of the New Year holiday, meaning that there are few other cues available from other regions. The U.S. ISM manufacturing index, delayed from Tuesday, is the main economic data due, while investors are also keeping an eye on minutes from the Federal Reserve's last monetary policy meeting due for release later in the day."

for info:

http://yahoo.reuters.com/news/artic...1-03_06-52-38_L02933375&type=comktNews&rpc=44

The data will give indications about how the U.S. economy is doing and how hawkish monetary policy is likely to be.