Asian News

[Ichiro]

6apr-Asian Stocks Drop; U.S. Index Futures Rise on Employment Report (U.S. stock-index futures rose after employment growth was higher than economists forecast)


By Chris Nagi

April 6 (Bloomberg) -- Japanese retailers paced declines in Asian shares, while U.S. stock-index futures rose after employment growth was higher than economists forecast. Markets in Russia and Pakistan advanced.

Japan's Topix index dropped 0.2 percent after the Nikkei newspaper said earnings at Seven & I Holdings Co., Japan's largest retailer by sales, may miss the company's forecast.

``The report on Seven & I prompted some disappointment among investors,'' said Haruo Otsuka, who oversees $870 million at Toyota Asset Management Co. in Tokyo. ``Retailers are not doing all that badly but not well enough to attract money from other industry groups.''


U.S. Futures

Standard & Poor's 500 Index futures expiring in June gained 5.3 to 1458 as of 9:15 a.m. in New York, when Globex trading ended. Nasdaq-100 Index futures climbed 10.5 to 1838.75. U.S. stock exchanges were closed.

U.S. stocks yesterday completed a weeklong rally to post their best start to a second quarter since 2004, helped by Kirk Kerkorian's $4.5 billion offer for Chrysler Corp. For the week, the Dow Jones Industrial Average added 1.7 percent, the S&P 500 rose 1.6 percent and the Nasdaq Composite Index increased 2.1 percent.

info:http://www.bloomberg.com/apps/news?pid=20601084&sid=a4M1aDbSyucs&refer=stocks

 

[Ichiro]

6apr-U.S. Pockets Aren't Deep Enough to Win Yuan Row: William Pesek

By William Pesek

April 4 (Bloomberg) -- Almost two years after a modest currency revaluation, China is still thumbing its nose at U.S. demands for big gains in the yuan.

Last week, officials in Beijing seemed to yawn as Charles Schumer, a U.S. senator pushing for tariffs on Chinese imports, predicted that a new measure aimed at forcing China to boost the yuan will pass Congress by next year.

The U.S. also imposed tariffs on imports of Chinese coated paper. China's response was summed up by central bank researcher Tang Xu who said a stronger currency alone won't solve U.S. trade disputes. Traders were equally unmoved by the U.S. action.

In Japan, meanwhile, neither the government nor investors seemed concerned about a U.S. senator's proposal to require Asia's biggest economy to stop holding down the yen. ``It's time for our government to hold Japan accountable for what amounts to illegal trade subsidies,'' Michigan Democratic Senator Debbie Stabenow said last week.

What gives? You would expect the U.S. to have more sway in markets. It does, after all, print the reserve currency. And while China is growing 10 percent, India isn't far behind and Japan is recovering, the $13 trillion U.S. economy is still proving hard to replace.

One explanation for the U.S.'s waning clout in foreign- exchange markets is something that gets little attention: the country's lack of currency reserves.

Short on Reserves

Certain benefits come from printing the most-used currency, having great sway over the International Monetary Fund and being the pre-eminent economic power. It means you can get away with more. In the U.S.'s case, it's massive current-account and budget deficits, negligible household savings and a pricy military quagmire in the Middle East.

Even so, the U.S.'s $41 billion of currency reserves seem puny compared with China's $1.07 trillion, Japan's $884 billion and even Malaysia's $82 billion. At the moment, the U.S. has fewer reserves than Nigeria's $42 billion, Indonesia's $46 billion and Poland's $49 billion.

All this makes the U.S. look (a) highly confident about its financial condition, (b) complacent amid a growing number of global imbalances, or (c) arrogant. There's little doubt that, if asked, U.S. President George W. Bush and his Treasury secretary, Henry Paulson, would say (a) is the right answer.

Bretton Woods II

There's some merit to the view, considering the so-called Bretton Woods II world in which we live. The breakdown of the post-World War II system centered on the gold standard led to a kind of dollar standard. Many nations adopted the dollar as a new anchor, either formally or informally pegging currencies to it. When you're the U.S., who needs reserves?

Yet in a world littered with risks -- from slowing U.S. growth to global imbalances to terrorism to bird flu to the yen- carry trade to overheating in the Chinese economy -- one wonders how wise it is for the U.S. to have so few reserves.

That's especially true when you consider that the U.S. has arguably lost control of the dollar. With its economy facing big challenges, the U.S. probably wants a weaker currency for the same reasons everyone else does. How much control does the U.S. have, though, when overseas investors -- Asian governments among them -- own its bond market?

Perhaps that's why the U.S. tries to influence other currencies; it realizes it has lost control of its currency and interest rates to foreigners. Given that arrangement, the U.S. may want to be careful slapping around China and Japan, its two biggest debt customers.

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

 

[Ichiro]

6 apr- JAPAN'S ECONOMY EXPERIENCES DEFLATION AGAIN IN FEBRUARY
by Monty Guild
Guild Investment Management, Inc.
April 2, 2007


Believe it or not, this is positive news, as it will probably keep interest rates from rising in Japan too soon. Many in Japan are criticizing the monetary authorities for raising interest rates twice in recent months.

This probably delays any more interest rate rises in Japan for quite a while. Japan has been trying to reignite a small amount of inflation in their nation for several years. They were finally successful, but now have slipped into deflation again. Monetary authorities rarely tolerate price deflation, believing that a small inflation keeps the national psychology stronger, as people see wages and prices rise slowly.

This is positive for global stock market and bond market demand. With Japanese interest rates remaining low, the yen carry trade will continue to provide global investment liquidity.

U.S. IMPOSES DUTIES ON CHINESE PAPER INDUSTRY

It is generally believed that President Bush needs to work towards compromise with Democrats, and to steal some of the Democratic political thunder in the upcoming election campaign. The Republicans are trying to pre-empt Democratic members’ calls for tough treatment for countries with large trade surpluses with the U.S.

This is a politically expedient thing to do, because U.S. voters are notoriously ignorant of economic wisdom. There is no doubt, that this is also an enormously risky course of action. If Congress and the president begin to sanction U.S. trading partners for real and imagined unfair practices, these trading partners will eventually retaliate. This could set off a “beggar thy neighbor” trade war, which would be devastating to the standard of living of everyone on earth.

Most economists believe that the Great Depression of the 1930’s was an economic recession, which became exacerbated by the the high tariffs of the Smoot-Hawley Tariff Bill passed by the U.S. in 1930. The high U.S. tariffs were equaled, and expanded by foreign trading partners. As a result trade slowed substantially, and the world slipped into a major depression. This depression created widespread suffering and poverty in much of the developed world.

Let us hope that U.S. politicians are wise enough to avoid the same disaster for the world. May I remind you that this happened during the supposedly pro-business Herbert Hoover administration, and by Republican Senator Smoot and Congressman Hawley. They thought they were helping business by decreasing competition; instead they were creating a downward spiral for business among the U.S. and its trading partners. Free trade has been proven time and again to be the greatest spur for economic growth. However, it remains difficult for the average politician, and for many citizens, to comprehend this economic truism.

BAD FOR THE DOLLAR AND PROBABLY GOOD FOR GOLD

U.S. protectionism could also set off a very unpleasant chain of events, sending the U.S. dollar much lower, and gold much higher.

info:http://www.financialsense.com/editorials/guild/2007/0402.html

 

[Ichiro]

6apr-KEY CHARTS & MAJOR CLUES
by Jim Willie CB
April 5, 2007

Home: Golden Jackass website
Subscribe: Hat Trick Letter

Jim Willie CB is the editor of the “HAT TRICK LETTER”

Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise like a cantilever during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by heretical central bankers and charlatan economic advisors, whose interference has irreversibly altered and damaged the world financial system. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy. A tad of relevant geopolitics is covered as well. Articles in this series are promotional, an unabashed gesture to induce readers to subscribe.

Some extremely important charts follow, each with an equally important message. The story can be told from a series of painted pictures. The USEconomy is in deep trouble. The US Federal Reserve is caught in a box. Bankers are one step from being snared in a quagmire, with vivid memories of the insolvent bank system endured by Japan for over a full decade. The US bank problems seem worse by comparison, when factoring in mortgages, huge spread trades sure to go bad, a mountain of credit derivatives growing at 80% annually in size, and a raft of collateralized debt obligations sitting like an ominous cloud. The Bank of Japan simply cannot continue with rate hikes, given the vulnerable shaky state of all matters financial on a global basis. Gold and silver are moving to center stage, undeterred by the recent shock waves. The main shock is to the Powers That Be (King Henry & His Court of Market Manipulators), who are losing grip at the helm. A wider war, surely beneficial for many private interests, would kill the future economic prospects.

This holiday piece is intended to read like a magazine, with brief messages like captions under key charts. The sequence tells a story highly bullish for gold & energy, as well as its investments. The April full reports for the Hat Trick Letter tell the story in much more detail, delivered at the time of the US income tax deadline in mid-month. You know? That voluntary tax donation system which people are intimidated into thinking is part of law and existing statutes. Increasingly, taxpayer money supports private enterprise on a visible basis on Wall Street and a clandestine basis with defense contracts linked to the war on terrorism.

HOUSING SECTOR SPIRALS DOWN

Housing is a disaster and debacle already, soon to become a major meltdown crisis. On the tangible side is the lost opportunity to raid home equity, the lost sense of wealth, the primary piggy bank suffering erosion. On the banking side is the mortgage calamity, which is the inevitable final chapter of Greenspan’s self-directed bailout from the stock bust bearing his signature also. The downward spiral for housing and mortgages must be addressed. So far the sleepy crew await further information from the patient, prone and firmly bedded in the cancer ward. The next move is for rate cuts, whether they want them or not. A major USDollar devaluation lies directly ahead. If not, national bankruptcy is assured.

BANKERS IN CEMENT SHOES

The banker stock index shows a major message of reversing prospects. This is an ugly chart, with a February shock, a flirt with an uptrend breakdown, and an odd bouncing ball decline in the stochastix cyclical measure. The combination of huge bank losses from mortgages, together with absent profit margins from the borrow & lend yield spreads, make for poison. The bankers will next demand a rate cut in order to attempt a housing rescue and avert a mortgage meltdown. The rate cut will accomplish neither. However, lower official USFed rates would assist the adjustable mortgage holders, whose ARM rate is tied to the official rate. Most important, remember that bankers dictate to the USFed, or else the USFed caters to the bank sector.



info:
http://www.[[financialsense.com/fsu/editorials/willie/2007/0405.html

 

[Ichiro]

6apr-SHOW ME THE MONEY
by Dominick
a.k.a."spwaver"
TradingTheCharts.com
April 2, 2007
Surprise, surprise, another volatile week. The bears got their big selloff, but it was in corn, not in the S&P’s! Corn opened down lock limit as the S&P’s created great trading opportunities for the “unbiased” trader.

As we ended 2006, I promised 2007 would be the year of volatility, and hasn’t that been the truth?! It feels like only yesterday we were grinding up each day point by point. Friday’s closing bell wrapped up March, as well as the first quarter, but investors who were pegged to the S&P are in for a surprise when they receive their quarterly statements. The S&P closed 2 points from its 2006 close.

I’m sure many traders did better, but I’m also sure many are in the red this year. After all the juicy swings we’ve seen so far, that can only happen by being with the “in crowd” and following the wrong sentiment all over town. In January and February, bulls stayed too long and bears shorted too early. As we fell from the diagonal, Bulls bought back too early and bears stayed too late. Meanwhile, unbiased traders are making money on both ends.

But not only did the bears stay short too long when the market turned back up recently, they’ve been buying puts everyday as the S&P’s retrace a full 75% off the lows. Traders have been playing this broken record for the last 4 years! Isn’t this setup played out by now? Sure, this could be the real one, but why give back 75% when we have no confirmation yet?

Since March 14th, where we saw our SPX 1360 area validated, it’s been a challenge to educate our rapidly growing number of new members. Old members who’ve successfully made the transition from bear to trader are just fine. Many new members still seem to want to follow the crowd and are having a tough time because the streets are filled with “crash” counts. I can’t really blame them as it’s a hard sentiment to escape from. That said, they are also starting to recognize that going long from 1360’s to 1440 also makes your portfolio grow rapidly. Don’t get me wrong, I’ll be on the bearish side as soon as I see the market grow some fur, but not before that.

A good case in point for the bear camp was the drop in February. Readers all knew that I had an S&P target 1462/1470 and was ready to short it, but not before confirmation. After getting short close to the top, I sensed that a low was being built in March, rather than a trapdoor for continuation of the drop. This week, we might have the same situation, but on a smaller degree. Has the market topped out in a second wave retracement on March 23rd, or are we about to set a huge bear trap to finally get that run to new highs that sets up the classic capitulation?

As we’ve basically nailed these last two swings, we think we have the correct possible patterns and are waiting for a bit more price action to confirm. It might only take another day or two. I believe we will have a decent move within the next 20 points that we are ready to trade.

Let’s talk a bit about last week. I had stated the following on last week’s update:

“Next week we have some work to do in the short term patterns. We should’ve already seen a pullback, but the market still has a bid from trapped shorts. My short term trend charts have already weakened”

The market wasted no time in dropping a big 13 points in the first hour of the week. Expecting that drop, as a 4th wave pattern, we were able to go long the bottom as it screamed to the upside, escaping another bear trap. From that high, the shorts were able to trap bulls into thinking that a triangle 4th wave was forming and used Bernanke’s speech to execute. I also had that same triangle and unfortunately missed the selloff into the speech but as “traders”, we then got back aboard that low which almost made it back up to another high.

And boy did we trade this week! 10-15 point swings are now almost a sure thing. With the aid of my Proprietary Fibonacci methods, we were able to zone into targets that were 1 tick away of highs and lows of a fast-moving market. One example was a low target of 1423 on Thursday (actual low was 1423.25) and resistance at 1440 on Friday (actual high was 1439.75). Friday morning’s pre-market post had warned that 1440 was a key area and that stopping there could be a problem. The S&P futures seemed to know that. After a gap up, they reversed to sell off into a low of 1418. Those 2 swings alone totaled 38 points, and prove how much there is to take from a market that closed flat for the day, and the year!

info:
http://www.[[financialsense.com/fsu/editorials/dominick/2007/0402.html

 

[Ichiro]

9apr-Dollar Trades Near Six-Week High Against Yen Before Price Data

By Stanley White and Ron Harui

April 9 (Bloomberg) -- The dollar traded near a six-week high against the yen on speculation reports this week will show gains in producer and import prices, suggesting U.S. interest rates are less likely to fall in coming months.

The U.S. currency last week rebounded from a two-year low against the euro as a report showed employers added more workers than forecast in March. Federal Reserve Chairman Ben S. Bernanke has said inflation is a greater concern than slowing growth. Yields on Treasuries last week rose to the highest in eight weeks, boosting the appeal of holding the dollar.

``Traders will try to test the dollar's upside,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``The Fed is willing to leave rates unchanged for now but is flexible enough to raise rates should the threat of inflation increase.''

The dollar traded at 119.26 yen at 10:30 a.m. in London from 119.25 late in New York on April 6. Against the euro, it was at $1.3370 from $1.3379. It may rise to 120.10 yen and $1.3310 per euro this week, Soma said.

Trading was subdued as markets in New Zealand, Australia, Hong Kong, France, Germany and the U.K. are closed for a holiday, said Hiroyasu Hirayama, head of foreign-exchange sales in Tokyo at the Royal Bank of Scotland Group Plc.

The U.S. currency may snap a two-week slide versus the euro as analysts expect import prices rose 2.3 percent on year in March and producer prices gained 3 percent, according to Bloomberg News surveys.

Yield Disadvantage

Japan's yen traded near a record low against the euro on speculation Bank of Japan Governor Toshihiko Fukui will signal interest rates will stay low after a two-day board meeting starting today. It was last at 159.56 versus the euro from 159.53 on April 6, when it fell to an all-time low of 159.69.

Volatility on one-month yen options against the euro, a gauge of expected exchange-rate swings, dropped to a three-week low of 7.35 percent today from 8.40 percent a week ago. Lower volatility may encourage investors to borrow yen to buy higher- yielding securities because it exposes bets to less currency risk.

info:http://www.bloomberg.com/apps/news?pid=20601083&sid=adE6JASgFkXE&refer=currency

 

[Ichiro]

9apr-Euro May Rally to Record, Traders and Analysts Clash (Update1)

By Agnes Lovasz and Bo Nielsen

April 9 (Bloomberg) -- The euro's rise has taken analysts by surprise and traders expect more gains as the region's economy grows and interest rates climb.

Investors in futures have $15.9 billion more in bets on the euro strengthening than on a decline, data from the Washington- based Commodity Futures Trading Commission show. Options traders are paying more for the right to buy euros than to sell the currency.

Traders sending the euro toward record highs are clashing with economists, who predicted in December that the currency would trade at $1.328 by the end of the first quarter and fall 1 percent to $1.305 this year, according to a Bloomberg News survey. They stuck to their calls in March, saying the euro would weaken to $1.31 by 2008.

``The euro's the safest bet,'' said Peter Lucas, who's been buying euro forwards as chief investment officer at Ashburton Ltd., which manages $1.7 billion in Jersey, in the Channel Islands. ``We let the market do the talking.''

Europe's single currency traded at $1.3362 at 10:50 a.m. in Tokyo from $1.3379 in New York on April 6. It rose to a two-year high of $1.3442 and a record 159.69 yen last week.

The euro is up 1.8 percent against the dollar and 3.6 percent versus the yen since European Central Bank President Jean-Claude Trichet followed a March 8 interest-rate increase by saying borrowing costs were still low enough to fuel expansion. The 13-nation European currency rose 0.2 percent to the dollar last week, following a 1.9 percent gain the past month. It reached a record $1.3666 on Dec. 30, 2004.

Group of Seven

The currency's strength likely will be addressed at the Group of Seven industrialized nations meeting starting April 13 in Washington, D.C., said Jim O'Neill, head of global economic research in London at Goldman Sachs Group Inc.

info:http://www.bloomberg.com/apps/news?pid=20601083&sid=a2KpyKbejF.w&refer=currency

 

[Ichiro]

9apr-Asian Stocks Rise After U.S. Unemployment Drops; Toyota Gains

By Patrick Rial and George Hsu

April 9 (Bloomberg) -- Asian stocks rose to a six-week high, led by Toyota Motor Corp., after a drop in the U.S. unemployment rate eased concern the region's exports will slow.

``The U.S. is the world's biggest market, so the healthier its economy, the better the business prospects for Asian exporters,'' said Liu Juming, who helps manage $1.7 billion at Ta Chong Investment Trust Corp. in Taipei.

Wuliangye Yibin Co., China's biggest spirits maker, paced Chinese stocks to a sixth straight record after the Xinhua News Agency said retail sales will grow. Doosan Heavy Industries & Construction Co. led gains in South Korean developers on a government report that showed their overseas contracts surged.

The Morgan Stanley Capital International Asia-Pacific Index added 0.6 percent to 147.07 at 7:31 p.m. in Tokyo, the highest since Feb. 27. Japan's Nikkei 225 Stock Average advanced 1.5 percent. All markets gained, except in Thailand. Benchmarks in South Korea, Singapore and China climbed to records.

Taiwan's Bank of Overseas Chinese rose after Citigroup Inc. agreed to buy the lender. Pentax Corp. gained on Hoya Corp.'s plans to increase a takeover offer. Samsung Electronics Co., due to report first-quarter earnings on April 13, fell after Kyobo Securities Co. cut its profit estimate for the chipmaker.

India's Sensitive Index surged 2.5 percent, the biggest gain in the region. Hong Kong, Australia, New Zealand and the Philippines were closed for holidays.

Unexpected Drop

Toyota, the world's largest automaker by value, rose 1.9 percent to 7,540 yen. Sony Corp., the maker of the PlayStation 3 game console, jumped 3.9 percent to 6,440 yen. Toyota generated more than a third of its fiscal 2006 revenue in North America while Sony made 70 percent of its sales overseas last year.
http://www.bloomberg.com/apps/news?pid=20601080&sid=augXpVkhl46Y&refer=asia

 

[Ichiro]

9apr-China's Trade Surplus Probably Doubled in March to $20 Billion

By Nipa Piboontanasawat

April 9 (Bloomberg) -- China's trade surplus probably almost doubled in March, adding to friction that may prompt the U.S. to file a World Trade Organization complaint as early as this week.

The gap swelled to $20 billion from $11.2 billion a year earlier, according to the median estimate of 18 economists surveyed by Bloomberg News. The figures may be released as early as today.

U.S. lawmakers charge that China keeps its currency undervalued, protects piracy and subsidizes products sold overseas. The Commerce Department last month levied duties on coated paper imports from China and the government may file a WTO complaint over what it calls piracy of copyrighted movies and books, according to four people briefed by the Bush administration.

This ``raises the specter of a future escalation of protectionist sentiment and action,'' said Paul Sheard, global chief economist at Lehman Brothers Holdings Inc. in New York.

U.S. officials have prepared two separate trade cases against China, the people said. One case says that the Asian nation sets too high a value on pirated movie or music disks before prosecuting violators, and another objects to China's restrictions on the sale of foreign books and movies, they said. The people, three industry officials and one lawyer, spoke last week on the condition they not be named.

Imports, Exports

China's commerce ministry called the coated-paper tariffs ``unacceptable'' and said it reserved the right to take ``necessary'' action. The U.S. trade deficit with China jumped to a record $232.5 billion last year.

China's exports probably gained 27.4 percent in March from a year earlier and imports likely climbed 20 percent, the Bloomberg News survey showed.

``It isn't easy for the U.S. to back down during an election year especially when the trade deficit with China continues to soar,'' said Chris Leung, senior economist at DBS Bank Ltd. in Hong Kong.

http://www.bloomberg.com/apps/news?pid=20601089&sid=at3K5JQ50aOY&refer=china

 

[Ichiro]

9apr- AP-Wall Street Looks to Open Higher
Monday April 9, 7:10 am ET
By Joe Bel Bruno, AP Business Writer
Wall Street Looks to Open Higher As Investors Positive About Jobs Report

NEW YORK (AP) -- U.S. stock futures rose Monday, pointing to a higher opening on Wall Street, as investors reacted to last week's robust jobs data and a report that Dow Chemical Co. is the target of a $50 billion buyout offer.


The Labor Department reported Friday, a stock market holiday, that nonfarm payrolls rose by 180,000 in March, above forecasts of 135,000. The unemployment rate fell to 4.4 percent, a five-month low.

Should the economy be stronger than some analysts estimated, it could dissuade the Federal Reserve from lowering interest rates in the near term. The report caused the bond market to fall sharply during a shortened trading day on Friday.

Meanwhile, it was reported by British tabloid The Sunday Express that a consortium of Middle Eastern investors and American buyout will launch a bid to acquire Dow Chemical. Kohlberg Kravis Roberts & Co., one of the biggest U.S. private equity firms, is said to be among the bidders.

http://biz.yahoo.com/ap/070409/wall_street.html?.v=3

 

[Ichiro]

11apr-Asia's Major Markets Rise
Wednesday April 11, 6:50 am ET
Asia's Major Markets Rise, With Chinese and Korean Stocks Climbing to New Records

HONG KONG (AP) -- Most major Asian stock markets advanced Wednesday, with retail investors pushing Chinese stocks to their eighth consecutive record close and South Korean shares hitting a new high on expectations for better earnings.

Japan's bourse -- the region's biggest -- rose, bolstered by select electronics and pharmaceutical issues. The benchmark Nikkei 225 index gained 5.38 points, or 0.03 percent, to finish at 17,670.07 points on the Tokyo Stock Exchange.

Canon Inc. advanced 1.07 percent, while Eisai Co. added 0.51 percent. Real estate stocks also did well, with Mitsubishi Estate Co. gaining 0.28 percent.

But the day's best trading was in Seoul and Shanghai. South Korean shares climbed to their fourth record high in the past six sessions as the Korea Composite Stock Price Index rose 14.26 points, or 1 percent, to 1,513.42.

The index was boosted by LG.Philips LCD Co., which surged 8.2 percent on expectations for better earnings in the second quarter. LG.Philips, the world's second-largest manufacturer of liquid crystal displays, posted a smaller-than-expected first quarter net loss Tuesday.

In China, a recent rally inspired retail investors to snap up shares, pushing up the benchmark Shanghai Composite Index 1.5 percent to 3,495.22 -- the eighth straight record high.

Turnover was a record 157.82 billion yuan (US$20.4 billion, euro15.19 billion). Ample liquidity has helped Shanghai's index rise 20 percent since mid-March.

The Shenzhen Composite Index also hit an eighth straight record in as many sessions, climbing 1.1 percent to 928.28.
http://biz.yahoo.com/ap/070411/asian_markets.html?.v=1

 

[Ichiro]

11 apr- AP-Dollar Rises in Asia
Wednesday April 11, 2:34 am ET
Dollar Rises in Asia on Weak Japanese Economic Data

TOKYO (AP) -- The dollar rose in Asia Wednesday as the yen got sold following surprisingly weak data on Japanese machinery orders.

The dollar was trading at 119.22 yen midafternoon, up slightly from 119.12 yen late Tuesday in New York. The euro rose to US$1.3428 from US$1.3424.


Japanese bank players sold the yen broadly after the release of data showing machinery orders dropped 5.2 percent in February from January, much weaker than economists' forecast for a 0.2 percent fall.

Investors were awaiting the release later in the day of minutes of the most recent U.S. Federal Open Market Committee meeting for clues on currency trading. The dollar could weaken if the Fed signals that it may start cutting interest rates.

http://biz.yahoo.com/ap/070411/asia_dollar.html?.v=1

 

[Ichiro]

11apr-AP-Euro Largely Holds on to Gains Vs Dollar
Wednesday April 11, 5:22 am ET
Euro Largely Holds on to Gains Against U.S. Dollar

BERLIN (AP) -- The euro on Wednesday held on to most of the gains it made the previous day against the U.S. dollar as markets awaited minutes from the Federal Reserve's latest meeting on interest rates.


The 13-nation euro bought US$1.3421 in morning European trading, compared with US$1.3424 in New York late Tuesday. The British pound rose to US$1.9785 from US$1.9716, while the dollar edged up to 119.19 Japanese yen from 119.12 yen.

The euro rose above US$1.34 on Tuesday amid worries over trade troubles between the U.S. and China -- which expressed "strong dissatisfaction" over a U.S. move to file two new complaints against it at the World Trade Organization -- and persistent concern over the strength of the U.S. economy.

U.S. economic data are being watched closely for hints on the Fed's future interest rates course. The bank has left rates unchanged over recent months even as the European Central Bank has increased its rates.

http://biz.yahoo.com/ap/070411/euro_dollar.html?.v=1

 

[Ichiro]

11apr- AP-U.S. Stocks Seen Opening Higher
Wednesday April 11, 6:52 am ET
By Joe Bel Bruno, AP Business Writer
U.S. Stock Headed for Slightly Higher Opening As Investors Weigh Earnings, Fed

NEW YORK (AP) -- U.S. stocks headed toward a slightly higher opening Wednesday as investors waited for details about a major restructuring at Citigroup Inc. and minutes of the Federal Reserve's last meeting.

Citigroup, the nation's largest financial institution, is expected to announce thousands of job cuts in a bid to lower the company's expenses. There have been reports that some 15,000 jobs might be on the line, which represents about 5 percent of the company's payroll.

Charles Prince, Citi's CEO, has been under pressure to lift profits and the company's share price. The stock closed Tuesday at $52.40, and has traded within a 52-week range of $46.22 and $57.

In economic news, the Fed will release the minutes from its last meeting where central bankers left interest rates unchanged. The minutes might give Wall Street a better idea about a possible rate cut sometime this year.

Also, Fed Chairman Ben Bernanke is scheduled to speak Wednesday afternoon on discipline and regulation. He is also expected to touch on the mortgage industry, which is battling weakness in the subprime loan market.

http://biz.yahoo.com/ap/070411/wall_street.html?.v=3

 

[Ichiro]

15apr- AP-IMF Calls for Better Currency Monitoring
Saturday April 14, 7:10 pm ET

By Harry Dunphy, Associated Press Writer

IMF Should Strengthen Monitoring of Currency Exchange Rates, Officials Say

WASHINGTON (AP) -- Finance officials expressed satisfaction Saturday with the robust expansion of the global economy but said more must be done to correct trade imbalances.

Meeting at the International Monetary Fund, finance ministers and central bankers said in a policy statement growth is expected to remain strong this year and in 2008, underpinned by solid economic foundations.


In their communique, the ministers said continued vigilance of the world economy was required in case there was a sharper than expected downturn in the U.S. economy, the world's largest, and a revival of inflationary pressures if oil prices rebound.

In a separate statement, four governments -- including the United States and China -- renewed promises to enact policies aimed at rebalancing global trade.

They said an orderly reduction in the U.S. trade deficit and trade surpluses in Asia would benefit the world by defusing protectionist trade action.

For the past year representatives of the United States, China, the euro currency zone, Japan and Saudi Arabia have been meeting regularly to discuss trade imbalances in a formal consultation organized by the IMF.

"It was agreed that a rebalancing of domestic demand growth across economies would be key to reducing imbalances while sustaining the robust global expansion," said the statement, issued on behalf of the group by the IMF.

China pledged to take steps to increase domestic demand, deepen financial reforms and increase the flexibility of its currency, a step long demanded by the United States and other industrialized nations.

Critics of the Bush administration policies contend the White House must take a tougher approach against unfair practices such as China's currency system, which keeps the yuan artificially low against the dollar, giving Chinese companies price advantages over U.S. producers.

The statement said China's exchange rate mechanism "will be improved in a gradual and controllable manner. "Exchange rate flexibility will gradually increase with attention paid to the value of a basket of currencies."

The U.S. trade deficit with China declined by 13.3 percent to $18.4 billion in February, the smallest gap since last May. Still, it is 25 percent above the pace set at the beginning of 2006, when the imbalance for the entire year was $232.5 billion. That was the largest deficit the U.S. has ever recorded with a single country.
http://biz.yahoo.com/ap/070414/finance_meeting.html?.v=23

 

[Ichiro]

15apr- AP-Dollar Trades Near Record Low V. Euro

Friday April 13, 6:50 pm ET

By Jackie Farwell, AP Business Writer

Dollar Holds Near 2-Year Low Against Euro, but Rises Against Yen

NEW YORK (AP) -- The dollar traded near a record low against the euro on Friday, as concern persisted that the European Central Bank will raise interest rates later in the year.

But the dollar rose against the yen, as worries dissipated that the Group of Seven would press Japan to hike its own rates to buoy its currency.

The G-7's position on yen carry-trading, which involves borrowing money at Japan's low interest rates to invest in higher-yielding assets elsewhere, likely won't rise to the level of inclusion in the G-7's communique, said Michael Woolfolk, senior currency strategist at the Bank of New York.

"This may be something of a tempest in a teacup," he said.

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

The dollar strengthened to 119.12 yen from 119.06 yen.

Meanwhile, the euro bought $1.3539 in afternoon trading after climbing as high as $1.3547 earlier in the session -- its highest level since January 2005. That compared with the $1.3480 it bought in New York late Thursday, and was about one cent short of its all-time high from December 2004 of $1.3667.

http://biz.yahoo.com/ap/070413/dollar.html?.v=14

 

[Ichiro]

15apr- Reuters-Major economies promise to reduce imbalances
Saturday April 14, 7:49 pm ET
By Lesley Wroughton and Emily Kaiser

WASHINGTON (Reuters) - China on Saturday pledged to gradually increase the flexibility of its currency as part of broader policy measures agreed by five major economic players to address global economic imbalances.

A list of the measures was released after meetings of the International Monetary Fund's policy-setting committee by the five -- the United States, Japan, Saudi Arabia, China and euro-area nations -- following year-long talks led by the IMF.

But the policies simply represent an inventory of existing plans to reduce a gaping trade shortfall in the United States, introduce growth-enhancing reforms in the euro area and Japan, improve investment in oil-producing countries like Saudi Arabia, and cut China's heavy reliance on exports.

An IMF official noted the plans were more detailed than the Agenda for Growth, an initiative by the Group of Seven rich countries to address issues in their own countries that were generating imbalances.

"The implementation by each participant of these policies would in combination constitute a significant further step toward sustaining solid economic growth and resolving imbalances," the five parties said in a joint statement.

http://biz.yahoo.com/rb/070414/imf_communique.html?.v=1

 

[Ichiro]

16apr-Nikkei up 1.7 pct, exporters rise on yen, Wall St
Sun Apr 15, 2007 10:53pm ET140

By Aiko Hayashi

TOKYO, April 16 (Reuters) - The Nikkei average rose 1.67 percent on Monday with exporters such as Canon Inc. (7751.T: Quote, NEWS , Research) climbing as the yen weakened after the Group of Seven meeting and similar stocks gained in the United States, one of the biggest markets for Japanese goods.

But advances may be limited as investors await a string of corporate earnings results and economic indicators due this week in the U.S., said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.

"For now, investors are buying stocks to recover losses from last week, encouraged by gains in the U.S. market and the currency," he said.

The yen fell to a record low against the euro on Monday as the G7 meeting of finance ministers and central bankers did not single out the Japanese currency's weakness.

The euro edged up 0.1 percent to 161.50 yen but eased from a record high of 162.43 yen <EURJPY=>, the highest since the single currency was first launched in 1999.

A weaker yen is a boon to companies that make the bulk of their sales abroad because it boosts profits when earnings from abroad are brought home. Continued...

http://yahoo.reuters.com/news/artic...-04-16_02-53-39_T286150&type=comktNews&rpc=44

 

[Ichiro]

16apr-FOREX-Yen recovers from new lows vs euro after G7
Sun Apr 15, 2007 9:45pm ET148

By Chikako Mogi

TOKYO, April 16 (Reuters) - The yen hit a record low against the euro on Monday as Group of Seven finance officials did not single out the Japanese currency's weakness at a weekend meeting, before trimming losses on profit taking.

The G7 communique on Saturday repeated a call for exchange rates to reflect economic fundamentals, and cited China again by name in calling for greater currency flexibility, using the exact same wording after a meeting in Germany in February.

Traders said the lack of surprises from the G7 Washington meeting appeared to give a green light to carry trades, where investors borrow funds in low-yielding currencies such as the yen to invest in higher-yielding currencies and assets.

European officials seemed to have softened their complaints about the weak yen after this meeting compared with the last gathering in February, when some warned about markets building up one-sided bets in carry trades, analysts said.

"The market's reaction to sell the yen is natural as players saw the G7 as allowing the euro to strengthen further against the yen and the dollar due to the strong euro zone economy," said Nobuo Ibaraki, a deputy general manager at Nomura Trust and Banking.

Although risks are building for one-sided bets, the yen remains pressured against other currencies for now due to expectations that the carry trade will continue, he said.

http://yahoo.reuters.com/news/artic...-04-16_01-45-03_T339151&type=comktNews&rpc=44

 

[Ichiro]

17apr- Reuters-Futures rise after tame core CPI data
Tuesday April 17, 8:49 am ET

NEW YORK (Reuters) - U.S. stock futures rose on Tuesday after data showed March core consumer prices rose less than expected, easing concerns about the outlook for interest rates.

S&P 500 futures (SPc1) were up 3.50 points, about even with fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures (DJc1) were 23 points higher and Nasdaq 100 (NDc1) futures rose 3.50 points.