Asian News

[Ichiro]

23mar- AP-Dollar Higher Against Major Currencies

Thursday March 22, 4:07 pm ET

Dollar Rebounds Against Major Currencies in Wake of Fed Rate Decision

NEW YORK (AP) -- The dollar recovered against the other major currencies on Thursday, a day after the Federal Reserve held interest rates steady.

The U.S. currency rebounded in Europe as the euro fell to $1.3334 in late New York trading from $1.3381. The 13-nation euro reached a two-year high against the dollar Wednesday, surpassing the March 2005 high of $1.3485.

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The British pound slid to $1.9652 from $1.9687, while Japan's currency rose to 118.15 yen from 117.47 yen.

The dollar weakened on Wednesday after the Fed voted to keep interest rates at 5.25 percent -- continuing its course of leaving rates on hold after a string of increases last year.

The Fed last changed rates in June 2006 when it capped a two-year credit-tightening stretch with a 17th quarter-point rate increase.

Higher interest rates, used to combat inflation, can help bolster a currency by making certain types of investments more attractive.

Rates in Europe have risen. Earlier this month, the European Central Bank raised its key interest rate a quarter point to 3.75 percent, the seventh increase since December 2005, when it was 2 percent.

Fed officials expressed concern about the risk of inflation over weak economic growth, echoing sentiments from previous meetings. This time, however, they dropped language specific to the potential for a rate increase in the future.

for info:

http://biz.yahoo.com/ap/070322/dollar.html?.v=2

 

[Ichiro]

23mar- AP
Japan Court Convicts 4 Ex-Livedoor Execs
Thursday March 22, 8:26 am ET
By Yuri Kageyama, AP Business Writer
Japanese Court Convicts Four Former Livedoor Executives of Inflating Earnings Reports

TOKYO (AP) -- A Japanese court convicted four former executives of disgraced dot-com company Livedoor of inflating earnings reports Thursday in a scandal that destroyed one of the country's highest-flying Internet startups.


The rulings followed Livedoor founder and former CEO Takafumi Horie's conviction last week on similar charges of securities laws violations and his prison sentence of 2 1/2 years. Horie, who had pleaded not guilty, immediately appealed the decision.

On Thursday, Ryoji Miyauchi, Livedoor's former chief financial officer, was sentenced to 20 months in prison after he pleaded guilty. Three other former executives, who pleaded guilty to some of the charges, were given suspended prison terms, avoiding time in prison.

The Livedoor scandal broke in January 2006, when prosecutors arrested Horie and other top executives on suspicion of securities laws violations. The news sparked a sell-off in the Tokyo stock market at that time amid widespread shock over the apparent downfall of Livedoor and Horie, who had become a celebrity for his gutsy takeover attempts and flashy lifestyle.

The executives were accused of setting up a number of funds to do stock swaps and other stock trading to pad their books. Prosecutors said the complex set of schemes fabricated 5 billion yen (US$42.5 million; euro32 million) in profit.

Presiding judge Toshiyuki Kosaka said Miyauchi was the chief architect of some of the schemes as No. 2 at Livedoor under Horie, but said Horie shared much of the blame because he was the chief executive.

info:
http://biz.yahoo.com/ap/070322/japan_internet_trial.html?.v=5

 

[Ichiro]

23mar- Daily FX-Dollar Free Fall Stalls Though New Lows Already In Place
Thursday March 22, 1:35 pm ET
By John Kicklighter, Currency Analyst strategist@dailyfx.com

Since the Fed announced its neutral lean yesterday afternoon, the greenback has put in new multi-month lows and subsequently rebound in a few short hours. Still a little shaken, dollar bulls will have time to gather their wits on Thursday’s fundamentally quiet session before the existing home sales report shakes up the currency market one last time before the weekend.

For price action, the pullback in EURUSD epitomized the mixture of caution and profit-taking seen across the majors. In the Asian session, the pair made a last-gasp spike to 1.3410 before gradually pulling back to 1.3350. At the same time, USDCHF formed a 1.2080 base before slowly working its way back above 1.21. The pound delayed its move against the dollar until the London session when GBPUSD rallied to 1.9730 before settling back to the range low round 1.9660. Finally, the previous 24 hours of action in USDJPY hasn’t amounted to any serious breaches of technical protocol. A low around 117.25 and return to 117.95 has kept a three-week long range intact.

The battered dollar was looking forward to a day of rest on Thursday. After a number of market-moving events in the past three days, traders had only jobless claims and the Leading Indicators index listed on the docket. The aggregate Leading gauge was undoubtedly the most influential report of the two. Already expected to slow, the Conference Board’s report surprised the market with a greater than predicted 0.5 percent contraction in its February print – the biggest drop in a year. Adding to the disappointment, January’s initial modest rise was revised down to a 0.3 percent decline. From the breakdown of the forward-looking indicator, half of the components reported declines for the month. The employment, factory activity and consumer sentiment components all contributed to the poor showing with individual declines of their own. Overall, this often over-looked indicator was perhaps saying more to traders than usual following the cooled rhetoric from the FOMC on Wednesday concerning inflation. Also hitting the wires, the jobless claims numbers reversed some of the pessimistic sentiment with the Leading index. First time filings for unemployment benefits fell to 316,000 in week through March 17th, the slowest pace since the opening week of February. However, the bullish convictions these numbers can rouse is limited considering the less volatile four-week average is still well above typical levels of previous months.

info:http://biz.yahoo.com/fxcm/070322/1174584965445.html?.v=1

 

[Ichiro]

23mar-P
Japanese Stocks Climb; Dollar Down
Friday March 23, 5:07 am ET
Japanese Stocks Rise for 4th Session to Reach 1-Month High; Dollar Down Against Yen

TOKYO (AP) -- Japanese stocks rose Friday for a fourth straight session, climbing to their highest in nearly a month, led by autos, banking and oil issues.

The benchmark Nikkei 225 index added 61.41 points, or 0.35 percent, to finish at 17,480.61 points on the Tokyo Stock Exchange -- its highest since Feb. 28. The index now has risen 4.4 percent over the past four trading sessions, including a 1.5 percent gain Thursday.



Traders said exporters like autos moved higher amid relative stability in dollar-yen trading, while commodity-related stocks like oils advanced after a rise in oil prices.

Gainers included Toyota Motor Corp., which rose 0.51 percent to 7,840 yen ($66.44) and Nippon Oil Corp., which posted a 1.17 percent to 948 yen ($8.03). Banks also advanced, with Mizuho Financial Group Inc. rising 1.30 percent to 782,000 yen ($6,627.12).

info:http://biz.yahoo.com/ap/070323/japan_markets.html?.v=4

 

[Ichiro]

23mar- AP
Dollar Steady Against the Yen in Asia
Friday March 23, 4:27 am ET
Dollar Steady Against the Yen in Asian Trading Ahead of Release of U.S. Home Sales Data

TOKYO (AP) -- The dollar was steady against the yen in Asia Friday as players awaited U.S. home sales data due later in the day amid a lack of fresh market-moving news.

The U.S. dollar was trading at 118.14 yen at 2:50 p.m. (0550 GMT) Friday, down from 118.15 yen late Thursday in New York. The euro fell to $1.3330 from $1.3334.

Commercial buying by Japanese importers helped lift the dollar earlier in the day, but many market participants were awaiting the release of U.S. existing home sales data for February.

There also was talk that some fund players had resumed yen-carry trades -- a popular strategy in which investors borrow yen at Japan's low interest rates invest the proceeds in higher-yielding units -- but many traders said that most short-term investors refrained from actively trading currencies.

The recent volatility in global stock markets also has currency market players keeping a close eye on stock prices.

"Many players still can't feel comfortable about trading one way or another despite the increasing stability of stock price moves," said Hidenori Kato, a senior dealer at Societe Generale.

info:
http://biz.yahoo.com/ap/070323/asia_dollar.html?.v=1

 

[Ichiro]

23mar-Gaspari Says Inflation `Under Control,' ECB Needs to Wait a Bit

By Gabi Thesing

March 23 (Bloomberg) -- Outgoing European Central Bank council member Mitja Gaspari said inflation in the 13 euro nations is ``under control'' and it's ``premature'' to talk about further interest-rate increases.

``I'm not saying that inflation expectations are completely benign, but inflation is obviously under control,'' Gaspari, who heads Slovenia's central bank, said in an interview in Frankfurt yesterday. ``Talking about any further interest-rate adjustment is premature at the moment, we need to wait a bit.''

A 20 percent drop in the price of oil from a July record has helped keep euro-area inflation below the ECB's 2 percent limit for six straight months. Even so, the bank this month raised its benchmark rate for the seventh time since late 2005, to 3.75 percent, and left the door open for further moves, saying monetary policy continues to be ``on the accommodative side.''

``This explanation is very clear, it's not an immediate sign of any action,'' Gaspari said. The bank's policy should remain on the accommodative side ``for a while just to see if this analysis is correct.''

Asked if his assessment of the inflation outlook is shared by most on the ECB's 19-member governing council, Gaspari said ``the majority of us are of the same opinion.''

info:http://www.bloomberg.com/apps/news?pid=20601085&sid=aygW9WoA9q7c&refer=europe

 

[Ichiro]

22mar-Dollar Heads for Weekly Gain Against Yen on Reassessment of Fed

By Chris Young and Stanley White

March 23 (Bloomberg) -- The dollar headed for a weekly gain against the yen as investors bet the Federal Reserve's inflation concerns will delay a reduction in interest rates.

The dollar has rebounded from a two-year low against the euro, reached after the Fed March 21 removed a bias to increase borrowing costs. The difference in yield between benchmark 10- year U.S. and Japanese government bonds widened to a one-month high, boosting the allure of dollar-denominated assets.

``People got too dovish on the Fed,'' said Adrian Foster, director of currency sales at Dresdner Kleinwort in Beijing. ``The message was in fact inflation is still their primary concern. It's consistent with the Fed being on hold. It's dollar- supportive.''

The dollar traded at 118.08 yen as of 7:45 a.m. in London from 116.75 a week ago. The U.S. currency was at $1.3330 per euro from $1.3331 yesterday, when it reached $1.3411, the weakest since March 2005. It may strengthen to 118.50 yen and $1.3280 per euro today, Foster said.

The currency fell March 21 after the Federal Open Market Committee kept its target for overnight lending between banks at 5.25 percent and dropped a reference in its previous five statements to the need for ``additional firming.'' The statement also said inflation is the ``predominant concern.''

Futures contracts showed declining expectations the Fed will cut rates in the first half of the year, indicating the rate premium over Japan is likely to hold at 4.75 percentage points in coming months.

Yield Spread

Bank of Japan Governor Toshihiko Fukui yesterday said the central bank will keep rates low for some time and adjustments need to be gradual. Japan's 0.5 percent benchmark is the lowest among major economies. The yield advantage for holding U.S. 10- year Treasury notes over similar-maturity Japanese debt widened to 3.04 percentage points, the most since Feb. 22, from 2.97 points at the start of the week.

Japanese Finance Minister Koji Omi told lawmakers today there is no plan to significantly change Japan's foreign-exchange reserves, the world's second-largest after China.

Gains in the dollar may be limited before a U.S. report forecast to show sales of previously owned homes declined last month to an annual rate of 6.30 million, from 6.46 million in January, according to the median forecast of 63 economists surveyed by Bloomberg News. The National Association of Realtors is scheduled to release the data at 10 a.m. in Washington.

info:http://www.bloomberg.com/apps/news?pid=20601101&sid=attmq4Efe1YI&refer=japan

 

[Ichiro]

23mar-China's Oil Demand May Increase 29% by 2010, CNPC Official Says

By Wang Ying

March 23 (Bloomberg) -- China's oil demand may rise 29 percent by 2010 from last year's levels, said an official from China National Petroleum Corp.

Oil demand may reach 455 million metric tons (about 9.14 million barrels a day), Gong Jinshuang, senior research engineer at China's largest oil company, said in Beijing today. Imports may increase to 250 million tons, accounting for more than 50 percent of demand, he said.

Annual oil demand growth in the world's second-largest energy consumer may slow to below 5 percent between 2010 and 2015 because of increased use of alternatives such as biofuels, he said.

info:http://www.bloomberg.com/apps/news?pid=20601089&sid=avTrb952aiew&refer=china

 

[Ichiro]

23mar- AP
Dow, Nasdaq Head Toward Higher Opening
Friday March 23, 8:34 am ET
By Tim Paradis, AP Business Writer
Dow, Nasdaq Head Toward Higher Opening Ahead of Report on Home Sales

NEW YORK (AP) -- U.S. stocks headed for a moderately higher open Friday ahead of a report on home sales that could indicate whether Wall Street's somewhat less-pessimistic view of the sector is warranted.

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The Federal Reserve this week said an "adjustment" in the housing sector was continuing, offering some relief for investors left unnerved by the woes among so-called subprime mortgage lenders. Wall Street had grown concerned that an implosion among subprime lenders, which make loans to people with poor credit, could spill over into other parts of the economy and derail already slowing economic growth.

Within the first hour of trading Friday the National Association of Realtors is expected to report last month's median home price. The last report, which arrived Feb. 27 as global markets swooned and the Dow Jones industrials fell 416 points on the day, indicated the median price of a home declined for the sixth straight month.

The figures will include existing home sales and inventories. Wall Street expects February sales will slip to 6.35 million, after jumping to 6.46 million in January.

Dow Jones Industrials futures expiring in June rose 13 points, or 0.10 percent, to 12,558. Standard & Poor's 500 index futures rose 2.80 points, or 0.19 percent, to 1,447.80, while Nasdaq 100 index futures advanced 3.25, or 0.18 percent, to 1,822.00.

info:http://biz.yahoo.com/ap/070323/wall_street.html?.v=11

 

[Ichiro]

24mar-FOREX-Dollar gains as housing data dims rate cut view
Fri Mar 23, 2007 4:36pm ET21

By Steven C. Johnson

NEW YORK, March 23 (Reuters) - The dollar firmed against the euro on Friday as a surprise jump in U.S. existing-home sales tempered the case for lower benchmark interest rates by the middle of the year.

It also recovered losses against the yen sustained overnight when data showed the first annual rise in Japanese land prices in 16 years.


The U.S. report, which showed sales of previously owned homes beat forecasts and rose by a hefty 3.9 percent last month, eased fears about the health of the housing sector.

The data also helped the dollar wipe out losses suffered earlier this week when the Federal Reserve adopted a more neutral monetary policy stance at its latest meeting, suggesting to some investors that a rate cut was imminent.

"The market had been very bearish, but the home sales data and yesterday's fall in jobless claims negate the doomsday scenario that foresees recession in the next quarter," said Boris Schlossberg, currency strategist at DailyFX.com.

info:http://yahoo.reuters.com/news/artic...3-23_20-36-33_N23416416&type=comktNews&rpc=44

 

[Ichiro]

24mar- AP
Dollar Mostly Higher Against Currencies
Friday March 23, 4:03 pm ET
By Jackie Farwell, AP Business Writer

NEW YORK (AP) -- The dollar continued its recovery against most of the major currencies on Friday as markets digested unexpectedly strong housing data two days after the Federal Reserve voted to hold interest rates steady.

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The euro fell to $1.3290 in late New York trading from $1.3334 Thursday. On Wednesday, the 13-nation currency reached a two-year high against the dollar, surpassing the March 2005 high of $1.3485.

The British pound dropped to $1.9614 from $1.9652, and Japan's currency fell to 118.05 yen from 118.15 yen.

The National Association of Realtors reported Friday that sales of existing homes rose by 3.9 percent in February, pushed higher by mild winter weather in the Northeast. It was the largest one-month gain in nearly three years.

Worries lingered, however, about the ailing housing industry as troubles mount in the mortgage lending market. Increasingly, mortgages offered to consumers with poor credit histories are going into default, forcing lenders to tighten up on their loan standards.

The dollar continued to make gains after weakening on Wednesday with the Fed's decision to hold interest rates steady at 5.25 percent -- continuing its course of leaving rates on hold after a string of increases.

info:http://biz.yahoo.com/ap/070323/dollar.html?.v=1

 

[Ichiro]

24mar-Dow: 5-day rally, back in the black
Stocks inch higher on home sales rise but Iran worries boost oil prices and limit market's gains.
By Alexandra Twin and Rob Kelley, CNNMoney.com staff writers
March 23 2007: 4:17 PM EDT

NEW YORK (CNNMoney.com) -- Stocks inched higher Friday, gaining after unexpected strength in home sales, but worries about rising oil prices limited gains.

The Dow Jones industrial average (Charts) rose 0.2 percent, marking the fifth straight day of gains for the Dow and pushing the index of 30 blue chips back into the plus column for the year after the recent sell-off.


The broader S&P 500 index (Charts) gained 0.1 percent. The Nasdaq composite (Charts)gained 0.2 percent.

Stocks struggled Thursday after Wednesday's big gains when the Fed softened its language on potential rate hikes.

A situation in the Persian Gulf contributed to oil worries: 15 British marines were taken captive by Iranian naval vessels. U.S. light crude oil for May delivery rose 59 cents to $62.28 a barrel on the New York Mercantile Exchange

Here's a look at what was moving near the close:

Stocks remained in transition mode Friday, with investors buying on the housing market news, but remaining cautious about the latest news from Iran.

"I think we're still in the midst of the correction," said Harry Clark, CEO of Clark Capital Management. "The average correction runs for 8 to 12 weeks, and we're still in week four."

"We'll continue to see the economy slowing. We're going to see slower earnings growth, that's for sure. The last six times housing dropped anywhere near this much, it caused a recession within six months."

info:http://money.cnn.com/2007/03/23/markets/markets_0405/index.htm?source=yahoo_quote

 

[Ichiro]

30mar-Asian Stocks Rise on Japanese Economic Reports; Mizuho Gains

By Stuart Kelly and Kotaro Tsunetomi

March 30 (Bloomberg) -- Asian stocks rose, led by Mizuho Financial Group Inc., after industrial production and household spending reports in Japan boosted confidence in the growth outlook for the region's biggest economy.

``There's a sense of recovery there and that's providing support to the market,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``If production recovers, the Japanese economy could take off from its current plateau around mid-year.''

The Morgan Stanley Capital International Asia-Pacific Index climbed 0.2 percent to 144.72 as of 5:46 p.m. in Tokyo. The benchmark has gained 3 percent this year, its third straight quarterly advance.

Japan's Nikkei 225 Stock Average rose 0.1 percent to 17,287.65, while the broader Topix index climbed 0.2 percent. Markets advanced, except in Hong Kong, China, Thailand, Sri Lanka and New Zealand. The Philippine Stock Exchange Index added 1.6 percent, the most in the region.

Inpex Holdings Inc. led energy stocks higher after crude oil prices rose for a ninth day. Australia's Fairfax Media Ltd. gained on speculation of industry mergers after ownership restrictions are removed next week. Posco led South Korean steelmakers higher on expectations that rising prices for the alloy will boost profit.

U.S. stocks climbed yesterday after jobless claims unexpectedly fell and a government report showed the world's biggest economy grew at a faster pace last quarter than some economists estimated.

Industrial Production

Mizuho Financial, Japan's No. 2 bank, climbed 2 percent to 759,000 yen. Nippon Telegraph & Telephone Corp., the country's biggest telephone company, jumped 2.1 percent to 623,000 yen. Mitsui Fudosan Co., the largest property developer, climbed 2.1 percent to 3,460 yen.

Industrial production in Japan, the world's second-largest economy, dropped a seasonally adjusted 0.2 percent in February from the previous month, the trade ministry said today. Economists surveyed by Bloomberg News had forecast a 0.7 percent drop. Inventories dropped 0.4 percent.

for info:http://www.bloomberg.com/apps/news?pid=20601080&sid=az.MJePUIxog&refer=asia

 

[Ichiro]

30mar-Japan's Household Spending Jumps; Production Falls (Update6)

By Jason Clenfield and Lily Nonomiya

March 30 (Bloomberg) -- Japan's household spending rose at double the pace forecast by analysts last month and industrial production fell less than expected, suggesting the world's second-largest economy can weather a U.S. slowdown.

Spending jumped 1.3 percent in February, the statistics bureau said today in Tokyo, more than the 0.6 percent median estimate of 29 economists surveyed by Bloomberg News. Output slipped 0.2 percent from January, less than the projected 0.7 percent decline.

The jobless rate held at an eight-year low of 4 percent for a fourth month, a separate report showed, suggesting companies are confident enough to keep hiring. A recovery in consumer spending from last year's lull may cushion the economy from slowing growth in the U.S., Japan's biggest export market.

``We're seeing more evidence that consumer spending is regaining ground,'' said Naoki Iizuka, a senior economist at Mizuho Securities Co. in Tokyo. ``With exports and production set to slow, consumer spending will support growth and prevent the economy from stalling.''

Japan's consumer prices fell for the first time in 10 months, the statistics bureau said separately. Finance Minister Koji Omi said he doubts the report indicates the economy is still experiencing deflation. Bank of Japan Governor Toshihiko Fukui said this week he expects prices to rise in the long term even if they ``hover around zero'' in coming months.

info:http://www.bloomberg.com/apps/news?pid=20601080&sid=a81xBfmgwZao&refer=asia

 

[Ichiro]

30mar-Europe Confidence Unexpectedly Rises, Jobless Rate Declines

By John Fraher

March 30 (Bloomberg) -- Confidence in the European economy unexpectedly increased and unemployment fell to a record, giving the European Central Bank scope to raise interest rates in the 13-nation euro region again.

An index of sentiment among executives and consumers in the euro area increased to 111.2 in March from 109.7 in February, the European Commission in Brussels said today. Economists expected 109.5, the median of 27 forecasts showed. The jobless rate fell to 7.3 percent in February and inflation accelerated to 1.9 percent in March, separate surveys showed.

The euro region's economy, which expanded at the fastest pace since the start of the decade in 2006, may gather momentum later this year as companies increase investment spending and hiring, bolstering consumer confidence. ECB President Jean- Claude Trichet said yesterday borrowing costs are still ``on the accommodative side'' after seven rate increases since late 2005.

``The data we are getting on the domestic side is extremely positive and clearly points towards a rate hike in June from the ECB,'' said Silvia Pepino, an economist at JPMorgan Chase & Co.

German business confidence unexpectedly rose in March and approached a 16-year high, European retail sales increased for the first time in three months and French unemployment dropped to the lowest in almost 24 years in February.

Investors expect the ECB to raise its main rate by a quarter percentage point to 4 percent by the end of the first half, futures trading shows. The implied rate on the three-month Euribor futures contract for June was at 4.10 percent today.

info:http://www.bloomberg.com/apps/news?pid=20601085&sid=ay2mvZMcXm2I&refer=europe

 

[Ichiro]

30mar-Dollar Little Changed Before U.S. Data; Set for Quarterly Loss

By Anchalee Worrachate and Stanley White

March 30 (Bloomberg) -- The dollar was little changed before U.S. reports on inflation, consumer confidence and spending today that will provide indications on the outlook for the Federal Reserve's interest-rate policy.

The U.S. dollar is set for a second quarterly loss against the euro on concern a slowing housing market and mortgage delinquencies are hurting the economy. Fed Chairman Ben Bernanke on March 28 said monetary policy is still aimed at combating inflation even as risks to economic expansion are increasing.

``It's not a great quarter for the dollar,'' Hans-Guenter Redeker, chief currency strategist at BNP Paribas, said in London. ``There are signs the problem in the housing market is spilling over into investments and consumer confidence but the Fed isn't willing to accept that yet.''

The dollar traded at 118.01 yen at 9:06 a.m. in London from 118.07 in late New York yesterday and 119.05 at the end of last quarter. It was at $1.3320 per euro from $1.3331 yesterday and $1.3197 last quarter.

The U.S. currency may slide to 115 yen by the end of next quarter and 110 yen three months after that, Redeker said.

Personal spending probably rose in February at the slowest rate in four months, the Commerce Department will say, according to a Bloomberg survey of economists. The report will also show the Fed's preferred price gauge stayed elevated, giving policy makers less room to maneuver on rates as growth slows.

``We're seeing quite a downshift in the outlook for the U.S. economy,'' said Greg Gibbs, a currency strategist at ABN Amro Holding NV in Sydney. ``We've seen a number of statistics continue to be a little bit softer. I'm looking for dollar weakness.''

info:http://www.bloomberg.com/apps/news?pid=20601083&sid=a.Jf0LkAF2eE&refer=currency

 

[Ichiro]

30mar-Oil Pares Gains After Iran Hints at British Prisoner Release

By Grant Smith

March 30 (Bloomberg) -- Oil pared gains that had taken it close to a six-month high after the president of Iran implied the country may release a British sailor seized in the Persian Gulf.

Iranian President Mahmoud Ahmadinejad will ``look positively'' at a request by Turkey to release female British sailor Faye Turney, one of 15 U.K. naval personnel seized by Iran a week ago, a spokesman for Turkish Prime Minister Recep Tayyip Erdogan said.

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

 

[Ichiro]

30mar-Asia Central Banks May Shift to Higher Rate Bias, Barclays Says

By Shamim Adam

March 30 (Bloomberg) -- Asian central banks may tilt toward higher interest rates and allow their currencies to appreciate later this year as inflationary pressures rise, according to Barclays Capital Inc.

Export growth in Asia is showing signs of a pick-up after sliding in the second half of 2006, and rising money supply point to stronger local demand, strategist Nicholas Bibby said in a report this week. While two quarters of oil price declines and low food costs in some Asian nations curbed inflation, that ``benign situation'' is unlikely to last, he said.

``Production constraints and geopolitical tensions will drive oil prices higher over the course of the year,'' Singapore-based Bibby wrote. Emerging Asia's ``relatively robust expansion, combined with the more domestically driven nature of growth, is likely to cause inflation to drift higher in the latter part of the year.''

Quickening inflation and higher rates may threaten consumer spending and investment in the region, which is trying to reduce dependence on export-led growth to make expansion more self- sustaining. Barclays's view is at odds with that of the Asian Development Bank, which this week said lower oil and commodity prices, as well as previous rate increases, will stem inflation and encourage central banks to cut borrowing costs this year.

``As the pass-through effects of high oil prices comes to an end, there may be scope for interest rates to come down,'' the ADB said its Asian Development Outlook 2007 report, citing Indonesia and Thailand which have already begun lowering rates.

info:
http://www.bloomberg.com/apps/news?pid=20601068&sid=a7Uf43IIi9Do&refer=economy

 

[Ichiro]

6apr-U.S. Economy: Job Growth Quickens, Unemployment Drops (Update2)--
(Goldman now projects the Fed will trim its overnight lending rate target by a quarter point in September per message below).

By Joe Richter

April 6 (Bloomberg) -- American employers added more workers than forecast in March and the jobless rate matched a five-year low, giving the economy a spark as it struggles to overcome slumps in housing and manufacturing.

The 180,000 increase in employment, the most in three months, followed a 113,000 gain in February that was larger than previously estimated, the Labor Department reported today in Washington. The jobless rate fell to 4.4 percent, a level last seen in October, defying predictions it would climb.

Plentiful jobs and bigger paychecks are giving more people the means to spend, preventing the housing recession from spreading to the rest of the economy. The report takes some of the pressure off Federal Reserve Chairman Ben S. Bernanke to cut interest rates. Bonds tumbled and the dollar jumped.

``The expansion is going to keep rolling,'' said Bill Cheney, chief economist at John Hancock Financial Services Inc. in Boston. ``The Fed isn't going to move rates any time this year.''

Economists at Goldman, Sachs & Co. and UBS Securities LLC were among those who pushed back Fed rate-cut forecasts following the payrolls report.

Forecast Changes

Goldman now projects the Fed will trim its overnight lending rate target by a quarter point in September, rather than in June. They maintained a year-end forecast of 4.5 percent for the target rate, down from the current 5.25 percent. UBS, which had predicted four reductions beginning in May, now forecasts three cuts beginning in June.

info:http://www.bloomberg.com/apps/news?pid=20601068&sid=arFfG0jqYtTk&refer=economy

 

[Ichiro]

6apr-Dollar Advances From Two-Year Low as Jobs Report Beats Forecast
(The dollar rose today 0.51 percent to 119.33 yen)
By Bo Nielsen and Ye Xie

April 6 (Bloomberg) -- The dollar rose from a two-year low against the euro and strengthened versus the yen as a government report showed the U.S. added more jobs than economists forecast.

The dollar advanced against 12 of the 16 most active currencies tracked by Bloomberg as the unemployment data led traders to reduce speculation the Federal Reserve will cut borrowing costs in the third quarter. Currency moves were magnified by a lack of volume, traders said.

``It was a very strong number, and after yesterday's move it surprised a lot of people,'' said Camilla Sutton, a currency strategist in Toronto at Scotia Capital Inc. ``It switches things around, and we can see a stronger dollar for a while.''

The dollar rose 0.4 percent to $1.3375 per euro at 2:19 p.m. in New York. It was the biggest gain since March 22. The U.S. currency fell yesterday to $1.3442 per euro, the lowest since March 2005. The dollar rose today 0.51 percent to 119.33 yen.

U.S. stock markets were closed today for Good Friday, and the Securities Industry and Financial Markets Association recommended bond trading close at 11 a.m. New York time.

The dollar also strengthened against the yen on speculation signs of U.S. economic strength will encourage investors to buy higher-yielding assets financed by borrowing in Japan, a practice known as the carry trade.

``The dollar is going strong, and we'll see people taking on more risk,'' said Brian Taylor, chief currency trader in Buffalo, New York, at Manufacturers & Traders Trust. ``They'll be putting on more carry trades as we speak. It's going to be hard to stop the yen's decline.

info:http://www.bloomberg.com/apps/news?pid=20601083&sid=a481hJhbsTPU&refer=currency